July 5, 2021 | by sandeep
5 Market Movers to Look Out for This Week – 5/7/21
By Mateo Jarrin Cuvi
Another slow week before the Q2 earnings report season craze. Still, there are plenty of “new” indicators for you to trade!
Will Aussie Interest Rates Budge?
Tune in on Tuesday, July 6 at 4:30 am GMT for the Reserve Bank of Australia’s (RBA) latest statement on interest rates.
During its last statement in May, the RBA confirmed it wouldn’t raise interest rates before 2024 following a somewhat dovish position regarding the country’s economy.
RBA’s Philip Lowe said: “The economic recovery in Australia is stronger than earlier expected and is forecast to continue. The bank’s central scenario is for GDP to grow by 4.75% over this year and 3.5% over 2022. This outlook is supported by fiscal measures and very accommodative financial conditions.”
However, last week, a group of Australian economists suggested the country’s economy will struggle to recover from the havoc caused by COVID-19.
As reported by The Conversation, “the panel expects year-average economic growth (the measure reported in the budget) to slide from 4 percent this financial year to just 2.2 per cent by 2024-25, well below the [expected] average of 2.6 per cent.”
Overall, the group of experts surveyed predicts business investment and household spending to be significantly weaker than that reported by the government in its latest budget report.
In light of these forecasts, will the Australian government commit to any changes to its current monetary policy? Or will things remain as they are?
Pay close attention to what is said as words matter and could have an impact on AUD!
The Fed’s Leftovers: Yum!
Is there anything the world missed from the Fed’s last interest rate and monetary policy statement on June 15-16?
If so, on Wednesday, July 7, it’s all revealed!
Check out the FOMC Meeting Minutes, which will be issued at 6:00 pm GMT this Wednesday.
Remember that during its last statement, the US central bank pushed up its plans to hike interest rates as a result of the higher than preferred inflation rate.
The schedule now includes at least two interest rate increases in 2023.
Additionally, “talking about talking about” tapering has already taken place, and the Fed will let people know ahead of time when a decision is made, all based on how the economy progresses moving forward.
In any case, the devil is in the details, so there should be plenty of juicy morsels there to move the currency markets!
Looking for Work in the US?
Last week we had the NFP.
This week we have the US Unemployment Claims.
This weekly indicator marks the number of people in the US who have filed for unemployment insurance for the first time, a figure that has an important impact on consumer spending and overall economic health.
For the past year, unemployment claims have been moving south.
Last week alone, unemployment claims dropped to 364,000, its lowest figure since the pre-COVID days and a clear sign that the labor market in the US is slowly recovering.
Dow Jones had estimated this number to be 390,000 for the week of June 26, so this was a surprise in the right direction for the US economy’s overall health.
Will this momentum keep up?
Find out on Thursday, July 8 at 12:30 pm GMT and roll out your USD trades.
Looking for Work in Canada?
Employment in Canada took a small hit in May as a result of restrictions imposed to curtail a third wave of COVID-19, dropping by 0.4%.
As reported by Statistics Canada, Ontario’s stay-at-home order and remote schooling remained in place until further notice, Nova Scotia went into a full lockdown, and Alberta and Manitoba “introduced measures that included the closure of personal care services, recreational facilities and in-person dining, as well as limits on retail store capacity and a transition to remote schooling for all or large parts of each province.”
Most of the drop in employment came from part-time laborers who accounted for 56,000 of the total job loss of 68,000 recorded in May.
Will this downward trend continue or will employment improve as we’ve seen for Canada’s southern neighbor?
Find out on Friday, July 9 at 12:30 pm GMT when Statistics Canada issues its latest data on the country’s labor market.
As usual, line up those CAD trades as the currency is bound to edge up or down.
Big Tech FTW!
Did you know equity prices start showing momentum three weeks before the start of each earnings report season?
With the 2021 big tech and NASDAQ have been experiencing, now is the time for you to trade US tech giants and the tech-heavy index.
Remember that NASDAQ has risen 13% in value since the beginning of the year, and the end to this growth might not yet be in sight.
Furthermore, US tech giant Apple has gained almost 51% in value during the past year, while Tesla’s stocks have jumped by a staggering 180.44% during that same period.
We’re only two to three weeks away from Q2’s earnings report season, so make the most of the pre-earnings optimism expected among tech companies to trade!
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