Need to know
This week is pretty weak on fundamental events. Still, the main focus is on the release of US Advance GDP. GDP growth rate is the earliest GDP report and can have the most impact on the market. Other important events that traders should be paying attention to are listed below.
Coming up
EUR German Ifo Business climate is released on Tuesday, 25 October. Large sample size and historic correlation with German and Eurozone economic conditions make this report very important for EUR zone and currency. EUR currency basket usually moves with the release of the report. Why should traders care? Any change to market conditions might be an early signal of any future economic activity such as spending or investment.
BOE Governor Carney testimonial on Tuesday, 25 October. BOE Governor Mark Carney is due to testify about the economic consequences of the Brexit vote. Why should traders care? The head of the central bank tends to have the most influence over nation’s currency movement. Traders should be paying attention to this testimonial. If the governor is hawkish, it should be supportive for GBP and vice versa if Mr Carney testimonial turns to be dovish.
AUD CPI comes on Wednesday, 26 October. This report measures the overall change in the price of goods and services purchased by consumers. Why should traders care? If the actual result comes out greater than the forecast, it should be good for currency and vice versa. Traders might trade this news in the form of spike trading.
Crude oil inventories will be released on Wednesday, 26 October. A build-up in crude oil inventories usually signals decreasing demand from refiners. On the other hand, a drop would signal that refiners are still producing at elevated levels and the inventory overhang in oil products could continue. This is primarily a US indicator, but it also affects CAD due to Canada’s huge energy sector. Previous data showed a 5.2m barrels decrease. Why should traders care? The price of petroleum products influences inflation, which impacts oil-dependent industries.