Currency Market Trend Analysis: May 14, 2018
By The Numbers: Your FX Week In Review
|Date||Releases / Holiday|
|May 15, 2018||Eurogroup Meeting||EUR|
|May 15, 2018||GDP QoQ/YoY||EUR|
|May 15, 2018||ILO Unemployment Rate||GBP|
|May 15, 2018||Inflation Report Hearings||GBP|
|May 15, 2018||Retail Sales MoM||USD|
|May 16, 2018||EcoFin Meeting||EUR|
|May 16, 2018||Consumer Price Index MoM/YoY||EUR|
|May 16, 2018||Housing Starts||USD|
|May 17, 2018||ADP Employment Change||CAD|
|May 17, 2018||Canadian/Foreign portfolio investment||CAD|
|May 17, 2018||BoC Review||CAD|
|May 18, 2018||Producer Price Index MoM/YoY||EUR|
|May 18, 2018||Retail Sales MoM||CAD|
|May 18, 2018||Consumer Price Index MoM/YoY||CAD|
Upcoming bank holidays and impactful report releases for select countries.
CAD/USD opened last week at 0.7785 and closed at 0.7815 – appreciating by 0.39% with the help of the rally of crude oil prices.
President Trump’s decision to abandon the Iran Deal has helped bring oil prices back up and helped the CAD recover previous losses.
Along with the liquid gold increase, Canada also experienced an increase in full-time employment and wages. A Bank of Canada review, Retail Sales and the CPI is up later this week.
1. ADP Employment Change: Thursday, May 17th
2. BoC Review: Thursday, May 17th
3. Retail Sales MoM: Friday, May 18th
4. Consumer Price Index MoM/YoY: Friday, May 18th
GBP/USD opened last week at 1.3530 and closed at 1.3542 – appreciating by 0.09% with rates remaining unchanged and US data coming out weak has let the GBP have a small jump last week.
With the BOE on-hold with raising rates, the economic state is not in ideal conditions for a rise. Investors say a rise might be more likely in August or November. All eyes are on the unemployment rate and inflation reports coming out on Tuesday along with the royal wedding on Saturday.
1. ILO Unemployment Rate: Tuesday, May 15th
2. Inflation Report Hearings: Tuesday, May 15th
European Central Bank Euro
EUR/USD opened last week at 1.1965 and closed at 1.1945 – depreciating by 0.17% due to deceleration of economic growth in the EU.
The US and EU both came out with lower than expected economic data last week, bringing down the pair. There could be some light on the horizon with the upcoming data releases in the EU. Most investors will be waiting for the inflation reports from the EcoFin meeting on Wednesday to know the full state of the EU.
1. Eurogroup Meeting: Tuesday, May 15th
2. GDP QoQ/YoY: Tuesday, May 15th
3. EcoFin Meeting: Wednesday, May 16th
4. Consumer Price Index MoM/YoY: Wednesday, May 16th
5. Producer Price Index MoM//YoY: Friday, May 18th
About the Author
Remon Shehata - Data Analyst
Remon educates corporate clients on foreign currency markets lending industry best practices that enhance client knowledge and create specialized solutions that fit each business. Interested in having a custom international payments strategy or foreign exchange risk plan? Request A Call
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