The week ahead has many a fundamental new release to look forward to, events which are sure to have traders licking their lips at the implied volatility and the numerous trading opportunities they create. Let us take a look at our top 3 picks:
- 1. Monday sees the release of the German Ifo Business Climate Index, expected at 106.00. The figure is a leading indicator of economic health as it is based on a survey of manufacturers, builders, wholesalers and retailers who all have their finger of the pulse of the economy which means they react quickly to market conditions, changing their views accordingly. A better than expected release will imply an improvement in the economic climate of the EU`s biggest player which would see the EUR gain across the board. However, a worse than expected print will see the EUR tumble as a souring of German expectations will be related to a souring of EU economic conditions at large.
- 2. Thursdays Asian session holds the spoils from an onslaught of Japanese data which will impact the Japanese economy at large and more specially the Japanese Yen. The day sees the Bank of Japan (BOJ) take centre stage as it addresses markets regarding the BOJ Policy Rate, expected unchanged at -0.1%, and the BOJ Outlook report, Monetary Policy Statement and to cap it all off, the BOJ Press conference. These series of events will be scrutinised by investors as they try and decipher how the BOJ views the current and future outlook for the Japanese economy. More hawkish rhetoric will see the JPY strengthen, extending its 2017 highs against the USD while a dovish stance will see the JPY lose ground.
- 3. Friday sees the release of the US Advanced GDP q/q figure. The GDP figure is the broadest measure of economic activity and the primary gauge of the health of the US`s economy as it measures the growth of output in the economy. The Advanced release of GDP is the US`s first of a series of GDP releases which makes it the first look and most likely the one to have the biggest impact on the dollar, commodities and equities in the US. A release which beats expectations will see the USD appreciate while commodities and equities depreciate as market anticipate a more hawkish FED while a worse than expected release will see the USD lose ground as commodities and equities appreciate in anticipation of a more dovish FED.
The above are just the tip of the iceberg of the daily events which occur in markets, for daily technical and fundamental analysis please visit: https://www.opteck.com/fundamental-analysis/