Australia and Eurozone to Issue Gross Domestic Product Reports
The Gross Domestic Product reports for Australia and the Eurozone are due to come out tomorrow 5 March 2014. The reports will cover the fourth quarter (Q4) of 2013. Currently, there are expectations amongst experts that there could be some growth in the Aussie numbers while the figures for the Eurozone will likely remain the same as the previous quarter.
Readers are reminded that the GDP is the combination of a country’s consumption, investments, government spending and the difference resulting from comparing exports and imports. As such, it provides economists a snapshot of how a country is progressing over a given period of time.
While the Australian economy has faced its difficulties regarding improving employment opportunities, there have been signs of growth that offer a promising outlook for investors. For its part though, there have been worries of a slowdown in some of the major economies in the Eurozone, especially in places like Germany and France which are significant drivers of the growth there.
Analysts advise traders to watch for some volatility that could occur in the trading of these two currencies in the coming days following the release of the report. Additionally, due to the conflict in Ukraine, concerns over fuel supply could be affecting various aspects of the economy.
Canadian Rate Decision to be Released Tomorrow
The Rate Decision for the coming month is expected to be issued tomorrow 5 March 2014 by the Canadian central bank. At this time, most experts do not expect that there will be any changes to the current rate.
Readers are reminded that these rates relate to the interest on borrowing costs that can affect all levels of the market, including loans and mortgages. As such, any shifts to these rates can have a significant influence on the nation’s economy. In addition, this rate is often used as a key tool by the central monetary authorities to control inflation, as well as to expand and contract growth.
The Canadian economy appears to be in a better state than it has been for some time. A report from three days ago stated that the economy grew more than had been expected during the fourth quarter (Q4) of 2013. That said, it is likely to face some difficulties as their neighbor to the south in the United States sorts its way through a tricky period. Analysts do not expect there to be any significant shifts to the value of the loonie in trading following the issuing of this report.
WTI Drops After Supply Fears of Ukraine War Moderate
It was reported today that oil prices had finally fallen today 4 March 2014 as concerns that global supply could be stunted due to the ongoing crisis in the Ukraine. The drop comes after prices had been riding high for four days as the escalation in the region had scared investors.
Analysts note that the gains made during the crisis marked some of the most significant spikes in the past three months. As in other crisis situations, as tensions escalate, investors are often concerned about the flow of supply, especially when it comes to commodities such as fuel. The fear of shortages helps to drive up demand, thereby sending prices up through the roof. However, as a situation begins to cool, investors will then find a balance on the price of the asset that is more in line with the reality.
Russia and Ukraine have been at odds as the government of President Viktor Yanukovych was ousted by popular protests. Yanukovych has close ties with Russia, which responded by sending troops into Crimea. Russian President Vladimir Putin called on his forces to end a massive drill today, which may help to ease the situation.
Prices of oil are likely to remain volatile in the coming days as the situation continues to unfold.