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:Tuesday sees the Bank of Japan (BOJ) draw the attention of investors as we anticipate the release of the BOJ Policy Rate, expected unchanged at 0.1%, and the BOJ Monetary Policy Statement and Press Conference. The BOJ has been actively trying to stimulate the Japanese economy through relentless monetary stimulus in which it has been buying up government bonds in hopes of getting money into the hands of the people so that they may begin spending and stimulating the economy. At the same time devaluing the Japanese yen as a way to increase the competitiveness of Japanese companies in the global spectrum. The releases will either see the JPY weaken further if the BOJ strikes a dovish tone in which it promises more liquidity to markets by way of the printing press. However, should they site the recent strength in the USD and thus natural devaluation of the JPY as enough for now, we would see the JPY firm up.
Thursday sees the release of the Canadian Core CPI m/m and Core Retail Sales m/m, both very important figures which give investors a glimpse into the health of the Canadian economy. The Core CPI figure is a key inflation figure which is the most important figure in terms of interest rates as central banks generally try to keep the CPI at a specific level, increasing or decreasing interest rates as their main tool for controlling inflation. The Retail Sales figure will indicate the willingness of consumers to spend money, the more confident consumers are about the prospects of the economy, the more they spend now, forgoing savings. Better than expected releases will see the Canadian dollar appreciate while worse than expected prints will see a depreciation of the CAD.
Friday sees the release of the UK Current Account figure which shows the difference in the value of imported and exported goods, service, income flows and unilateral transfers for the previous quarter. The figure is directly linked to the demand of the British Pound, as a rising surplus implies more demand of the GBP by foreigners while a rising deficit implies that the UK is supplying more GBP in favour of foreign currency. A better than expected number will result in an appreciation of the GBP while a worse than expected number would result in a weaker GBP
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/