Hello traders, and welcome to the weekly economic analysis
This week was very interesant for those who were waiting for notices from the european central bank and it's new monetary policy, as well as the Janet Yellen speech that made clear that the federal reserve is still aiming to increase the interest rates before 2016 hits our wallets.
However, ECB also said that they will keep the monetary policy and will wait for the Fed to increase interest rate that, as they expect, would help the development for the european economy.
Other data that impacted forex were in the USA the existing home sales that reached the highest level since early 2008 in August, for some a good sign of the USA strong economy, for others just another indicator that the 2008 crisis is going to be repeated; also the USA GDP was increased almost 4%, that is 0.2% above expectations, this even when the USA economy has been fighting against the deflation of the first quarter, and this meaning a clear strong economy for almost everyone.
It was also a though week for the Canadian dollar, it fell to the level of 1.33 and even more, the canadian central bank actually made nothing but to say that their economy is attached to USA economy (not sure if that's good but at least will attract investing capital), but expectations on their economy were not met on the core retail sales that finished on a plain 0; when an increase of 0.4% was expected.
Europe did not have any important news besides the Draghi's confession of dependance on the Fed, besides the german business climate index that didn't change, which is good after the social crisis about the immigrants.
Also it is important to remember that for the GBP's been extremely bearish after the market acknowledged the fact that the public debt increased to 12.5 billion GBP, what market ignores is that the net borrowing yearly is still below the average of last year, however BOE came to siege the recovery of the sterling, by saying that might wait even several months after the interest rate increase from the Fed, which causes the currency to be in a highway to hell.
Then the fundamental analysis for the next week is as follows:
EUR - Bearish
USD - Bullish
JPY - Neutral / Bullish
GBP - Extremely bullish with certain resistance
CAD - Neutral / bullish
MXN - Neutral / bearish
CHF - Neutral
NZD - Neutral / bearish
