Your Weekly Fundamental View (25-29 September)

Novembre 07, 2017 16:17
AM-WeeklyFR-Banner-5.jpg

Need to Know

The upcoming trading week offers quite a few interesting news events. The most noticeable one is the New Zealand interest rate decision. Other noteworthy events include the Japanese inflation rate, the German and Japanese unemployment rates as well as GBP figures for the UK and the U.S.

Coming Up

New US Home Sales on Tuesday, 26 September

The figure shows how many homes were sold in the previous month, provided as an annual number. A growth in sales generally indicates a healthier economy.

Why should you care? Consumer spending is an important indicator of the economic performance. The previous monthly home sales are 571k, with the current forecast standing at 585k (*).

New Zealand Interest Rate Decision on Wednesday-Thursday, 27-28 September

The Reserve Bank of New Zealand (RBNZ) will release its interest rate decision for New Zealand. The RBNZ is expected to communicate its vision on the current economic conditions and economic outlook via a rate statement.

Why should you care? The previous interest rate is 1.75% and the expect rate is 1.75% too (*). The market is currently leaning towards the fact that the rates will remain unchanged, but changes may occur against those expectations. Market volatility is always expected during these events.


Source: New Zealand Interest Rates

German Inflation Rate on Thursday, 28 September

The inflation rate is expected to be announced in Germany, which indicates whether the price of goods and services has changed. The inflation rate is used by the European Central Bank to assess the objective fulfilment of the official target of 2%.

Why should you care? The inflation rate is a key component in making decisions on the interest rate. The previous inflation rate is 1.8%, and the current forecast is expected at 1.8% (*).

US GDP Growth Rate on Thursday, 28 September

The Gross Domestic Product (GDP) number will indicate the total economic value of all goods and services produced in the U.S. This is the final release of the GDP that occurs approximately 85 days after the previous quarter.

Why should you care? The GDP offers an insight into the general economic health of the country. The previous quarterly GDP rate is 1.2% on a yearly basis, whereas the forecasted figure stands at 3.0%.

Gfk Consumer Confidence in Germany on Friday, 29 September

This is an index based on surveyed consumers. It asks about 2,000 consumers to evaluate the economic conditions in Germany in regard to personal finance, consumption, and overall economy.

Why should you care? Confidence is an important factor in the overall economy, which is a leading indicator in consumer spending. With the previous figure at 10.9, the current forecast promises 11.0 (*).

Japanese Inflation Rate on Friday, 29 September

The inflation rate indicates price changes that consumers pay for all goods and services in the economy.

Why should you care? Inflation levels are monitored by Central Banks, being a critical component of any interest rate change. The previous figure for the inflation rate is 0.4% (*).

Japanese and German Unemployment Rates on Friday, 29 September

The unemployment rate shows how many people failed to find employment in the past three months in Japan and Germany, as compared to the overall labour force.

Why should you care? Lower unemployment is beneficial for the economic health of the two countries. The previous unemployment rate in Japan is 2.8%, with the current forecast being 2.8% as well (*). The previous unemployment rate in Germany is 3.7%, with the current forecast predicted for 3.7% (*).

GDP Growth Rate in the UK on Friday, 29 September

Traders can expect quarterly and yearly Gross Domestic Product (GDP) figures to be announced for the United Kingdom. The GDP figures are an overall indication of economic expansion or contraction.

Why should you care? The previous quarterly GDP is 0.2%, and the previous yearly GDP, 2.0% (*). The current forecasted quarterly GDP is 0.3%, with the current forecasted yearly GDP standing at 1.7% (*).

(*) Admiral Markets – Forex Calendar

Forex101 Forex Trading Course