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Something Interesting in Financial Video April 2014
newdigital, 2014.04.07 12:41
Weekly Forex Outlook & Review for the 7th to 11th of April
2014-04-08 02:50 GMT (or 04:50 MQ MT5 time) | [JPY - Interest Rate]
BoJ Maintains Monetary Stimulus, Upbeat Economic View
The Bank of Japan kept its current monetary stimulus unchanged on
Tuesday as it projects upbeat economic outlook even though the first
sales tax hike since 1997 is set to oscillate consumer spending.
Policy Board, governed by Haruhiko Kuroda, unanimously decided to
continue to expand the monetary base at an annual pace of about JPY
60-JPY 70 trillion.
The annual pace of purchase of government
bonds will remain at about JPY 50 trillion. The central bank launched
its large stimulus April last year, when it vowed to end deflation and
shore up consumer price inflation to 2 percent in two years time
The BoJ left its economic assessment unchanged from last month. Japan's economy
has continued to recover moderately as a trend, albeit with some
fluctuations due to the consumption tax hike, the bank said in a
Further, the bank said business sentiment has continued to improve, although some cautiousness about the outlook has been observed.
economy is expected to continue a moderate recovery as a trend, while
it will be affected by the subsequent decline in demand following the
front-loaded increase prior to the consumption tax hike," the bank
central bank expects consumer prices, excluding the direct impact of
the sales tax hike, to increase around 1.25 percent for some time.
majority of policymakers observed that risks to the outlook include
developments in the emerging and commodity-exporting economies, the
prospects for the European debt problem, and the pace of recovery in the
Sayuri Shirai said the pace of improvement in the
employment and income situation in Japan should be added to the list of
2014-04-08 08:30 GMT (or 10:30 MQ MT5 time) | [GBP - Manufacturing Production]
if actual > forecast = good for currency (for GBP in our case)
U.K. Industrial Production Growth Tops Expectations
U.K. industrial production grew more-than-expected in February, driven by strong contribution from oil and gas extraction.
production grew 0.9 percent in February from month ago, when it
remained flat, the Office for National Statistics said Tuesday. The
February rate far exceeded the 0.3 percent expected growth.
output climbed 1 percent, which was faster than the 0.3 percent rise
seen in January. Economists had forecast output to grow by 0.3 percent
again in February.
The annual increase in industrial production
slowed marginally to 2.7 percent in February from 2.8 percent in
January. But the rate exceeded the 2.2 percent growth forecast by
Meanwhile, manufacturing output grew at a faster pace
of 3.8 percent annually after rising 3.2 percent a month ago. The
annual growth in output was expected to slow marginally to 3.1 percent.
AUDUSD Technical Analysis (based on dailyfx article)
EURUSD Technical Analysis (based on investing article)
The euro rose against the dollar on Tuesday as investors avoided the
greenback ahead of the release of the minutes from the Federal Reserve's
March policy meeting on Wednesday, while broad demand for
emerging-market currencies pushed the U.S. currency lower as well.
In U.S. trading, EUR/USD was trading at 1.3800, up 0.43%, up from a session low of 1.3738 and off a high of 1.3808.
The pair was likely to find support at 1.3673, Friday's low, and resistance at 1.3820, Wednesday's high.
dollar weakened as investors avoided the U.S. currency ahead of
Wednesday’s minutes of the Fed’s March meeting, which could provide
insight as to the direction of monetary policy.
Last week’s U.S.
payrolls report came in slightly below expectations, which spooked
investors, as Fed Chair Janet Yellen has said slack labor markets will
call for accommodative policies to stay in place for some time.
for the euro remained firm after European Central Bank officials on
Monday stressed that while fresh easing measures may be needed to steer
the euro zone away from deflationary pressures, implementation of such
tools is not imminent.
Last week the ECB left the door open to
further stimulus measures, saying that unconventional monetary policy
instruments may be necessary to avert the risk of ongoing low inflation
in the euro zone.
Elsewhere, emerging-market currencies rose
across the board on sentiments that even though the Federal Reserve will
continue to unwind its bond-purchasing program this year, policy will
remain loose and make higher-yielding currencies more attractive.
The euro was down against the pound, with EUR/GBP slipping 0.30% to 0.8249, and down against the yen, with EUR/JPY trading down 0.50% at 140.97.
yen rose against most currencies after BoJ Governor Haruhiko Kuroda
indicated that the bank was unlikely to implement further stimulus
measures at present. He added that growth and inflation were likely to
continue to pick up in the coming months despite a sales tax increase in
Earlier Tuesday, the BoJ voted to keep its key policy
target of increasing base money unchanged at an annual pace of ¥60
trillion to ¥70 trillion after ending its two-day policy meeting.
Wednesday, Germany and the U.K. are to produce data on the trade
balance, the difference in value between imports and exports.
Later Wednesday, the Federal Reserve is to publish what will be the closely watched minutes of its latest policy meeting.
2014-04-09 01:30 GMT (or 03:30 MQ MT5 time) | [AUD - Home Loans]
if actual > forecast = good for currency (for AUD in our case)
Australia Home Loans Rise 2.3% In February
The total number of home loans issued in Australia was up a
seasonally adjusted 2.3 percent on month in February, the Australian
Bureau of Statistics said on Wednesday - standing at 52,460.
That beat forecasts for an increase of 1.5 percent following the flat reading in January.
Investment lending climbed 4.4 percent on month to A$10.737 billion after falling 3.7 percent in the previous month.
The total value of housing loans gained 2.9 percent to A$27.644 billion.
2014-04-09 06:00 GMT (or 08:00 MQ MT5 time) | [EUR - German Trade Balance]
if actual > forecast = good for currency (for EUR in our case)
German Exports Fall More Than Forecast In February
Germany's exports declined more than expected in February, but
imports continued to rise for the second consecutive month, official
data revealed Wednesday.
Exports fell 1.3 percent in February from
January, which was the second fall in three months, Destatis said.
Exports were forecast to fall 0.5 percent after expanding 2.2 percent in
At the same time, imports gained 0.4 percent
month-on-month, faster than the expected 0.1 percent growth. However,
the rate slowed from the 4.1 percent increase seen in January.
As a result, the trade surplus fell to EUR 15.7 billion, from EUR 17.3 billion in January.
On a yearly basis, exports advanced 4.6 percent and imports climbed 6.5 percent in February.
to provisional results of the Deutsche Bundesbank, the current account
of the balance of payments showed a surplus of EUR 13.9 billion in
February compared to a EUR 15.7 billion surplus in the prior year.