The week ahead has many a fundamental news 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. Tuesday sees the release of the UK`s Inflation Report Hearing which will give the views of the Bank of England (BOE) regarding the current state of inflation and growth in the UK economy. The GBP and UK equities are prone to volatility during the release of the report which, if significant enough will lead to a longer term move for the assets. If the report shows that the UK economy is growing and inflation is at least stable to growing, we would see a positive impact on the GBP while a report indicating that the UK economy is cooling down, will result in a sell off of the Pound.
2. The FOMC Meeting Minutes are due to be released on Wednesday. The Release occurs 8 times per year and is a detailed record of the FOMC`s most recent meeting, outlining the reasoning behind their last meetings monetary policy decisions, providing insight into the factors which they took into consideration before making their decision, to hold off on any changes in this case. The factors they outlined will be heavily scrutinised going further as markets assume that an improvement in areas the FOMC was concerned about would imply a step closer to a rate increase or vice versa should concerning factors worsen. Overall the meeting minutes will serve as a guide as to which economic release and indicators to keep an eye on going forward.
3. Friday sees the release of the Core Durable Goods Orders m/m figure out of the USA. The figure represents the change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items, and is regarded as a leading indicator of production as an increase in orders will result in an increase in production, signaling a strengthening economy. Thus, a better than expected release will see the USD strengthen as trades price in the potential for an improved economy while a worse than expected release will see the USD weaken as trades prepare for a potential dip in the US economy.
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.biz/fundamental-analysis/