Trading News to Watch Next Week (06-10 May 2019)

Source: DF Markets

Our video features some, but not all, of the leading market events for next week. Explore the full list of 06-10 May events in our detailed report.

Monday, May 06

 

CAD – BOC Gov Poloz Speaks – 1:45 pm (High Impact)

Due to speak about the future of Canada’s mortgage market at an event co-hosted by the Canadian Credit Union Association and Winnipeg Chamber of Commerce in Winnipeg. Volatility is sometimes experienced during Stephen Poloz’s speeches as traders attempt to decipher interest rate clues.

AUD – Retail Sales m/m – 9:30 pm (High Impact)

Shows the change in the total value of sales at the retail level. The report is a primary gauge of consumer spending, which accounts for the majority of overall economic activity.

A value change of 0.8% for the previous month outperformed a general consensus of 0.3%.

NZD – Inflation Expectations q/q – 11:00 pm (High Impact)

Denotes the percentage that business managers expect the price of goods and services to change annually during the next 2 years. The data is based on a survey of about 100 consumers. Expectations of future inflation can potentially manifest into real inflation, primarily because workers tend to push for higher wages when they believe prices will rise.

During the previous quarter, a total of 2% of business managers expected prices to change.

Tuesday, May 07

 

AUD – Cash Rate – 12:30 am (High Impact)

Specifies the interest rate charged on overnight loans between financial intermediaries. Short-term interest rates are the paramount factor in currency valuation—traders look at most other indicators merely to predict how rates will change in the future.

A rate of 1.50% for the previous month confirmed a forecast of the same value.

AUD – RBA Rate Statement – 12:30 am (High Impact)

Flag of New Zealand on skyscraper background

Source: DF Markets

This event is among the primary tools the RBA Reserve Bank Board uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision.

NZD – Official Cash Rate – 10:00 pm (High Impact)

Specifies the interest rate at which banks lend balances held at the RBNZ to other banks overnight. The RBNZ Governor decides where to set the rate after consulting senior bank staff and external advisers.

A rate of 1.75% for the previous month confirmed a forecast of the same value.

NZD – RBNZ Monetary Policy Statement – 10:00 pm (High Impact)

In this report the RBNZ is mandated to include details on how they will achieve their inflation targets, how they propose to formulate and implement monetary policy during the next five years, and how monetary policy has been implemented since the last statement’s release.

NZD – RBNZ Rate Statement –10:00 pm (High Impact)

This event is among the primary tools the RBNZ uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision.

NZD – RBNZ Press Conference – 11:00 pm (High Impact)

The press conference is about 30 minutes long and has 2 parts. The first one contains a prepared statement, after which the conference is open to press questions. The questions sometimes lead to unscripted answers that create heavy market volatility.

Wednesday, May 08

 

GBP – MPC Member Ramsden Speaks – 4:15 am (Medium Impact)

Due to speak at the European Post Trade Conference in London. Bank of England MPC members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.

EUR – ECB Monetary Policy Meeting Accounts – 7:30 am (Medium Impact)

The event contains a detailed record of the ECB Governing Board’s most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.

USD – FOMC Member Brainard Speaks – 8:30 am (Medium Impact)

Due to deliver opening remarks at a Community Listening Session hosted by the Federal Reserve Bank of Richmond. Federal Reserve FOMC members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.

Thursday, May 09

 

CAD – Trade Balance – 8:30 am (High Impact)

Shows the difference in value between imported and exported goods during the reported month. A positive number indicates that more goods were exported than imported. About 75% of Canadian exports are purchased by the US.

An actual value difference of -2.9B for the previous month crushed a -3.5B forecast.

USD – Fed Chair Powell Speaks – 8:30 am (High Impact)

American flag and dollar collage

Source: DF Markets

Due to deliver opening remarks at the Federal Reserve System Community Development Research Conference in Washington DC. As head of the central bank, which controls short-term interest rates, he has more influence over the nation’s currency value than any other person.

USD – PPI m/m – 8:30 am (High Impact)

Shows the change in the price of finished goods and services sold by producers.

An actual value of 0.6% for the previous month outperformed expectations of 0.3%.

AUD – RBA Monetary Policy Statement – 9:30 am (High Impact)

This event provides valuable insight into the bank’s view of economic conditions and inflation—the key factors that will shape the future of monetary policy and influence their interest rate decisions.

Friday, May 10

 

GBP – GDP m/m – 4:30 am (High Impact)

Shows the change in the total value of all goods and services produced by the economy. It’s the broadest measure of economic activity and the primary gauge of the economy’s health.

An actual value change of 0.2% for the previous month confirmed the general consensus.

GBP – Manufacturing Production m/m – 4:30 am (High Impact)

Shows the change in the total inflation-adjusted value of output produced by manufacturers. Manufacturing makes up around 80% of total industrial production and tends to dominate the market impact.

An actual value of 0.9% for the previous month raced past expectations of 0.2%.

CAD – Unemployment Rate – 8:30 am (High Impact)

Shows the percentage of the total workforce that is unemployed and actively seeking employment during the previous month.

An unemployment rate of 5.8% for the previous month confirmed analysts’ forecast.

USD – CPI m/m – 8:30 am (High Impact)

Shows the change in the price of goods and services purchased by consumers. To derive the data, the average price of various goods and services is sampled and then compared to the previous sampling.

A value change of 0.4% for the previous month slightly beat expectations of 0.3%.

Missed our previous report? Go back and catch up on last week’s top news. You can also visit our economic calendar to study past and upcoming events in more detail.

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