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26/01/2017 Fundamental Analysis
26/01/2017
Fundamental Analysis
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events this week (July 11– 15)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
03:00 pm USD FOMC Member George Speaks July
TUESDAY
07:00 am EUR German Final CPI June 0.1% 0.1% 0.1%
Tentative GBP Inflation Report Hearings July
WEDNESDAY
03:00 am CNY Trade Balance June 311B 320B 325B
14:00 pm CAD BOC Interest Rate Decision 0.5% 0.5% 0.5%
THURSDAY
02:30 am AUD Unemployment Rate July 5.8% 5.7% 5.8%
12:00 pm GBP Official Bank Rate 0.5% 0.25% 0.50%
12:30 pm USD Unemployment Claims July 263K 254K
FRIDAY
03:00 am CNY GDP 6.6% 6.7%
01:00 pm GBP BoE Gov Carney Speech
01:30 pm CAD Manufacturing Sales July 1.0%
01:30 am USD Consumer Price Index July 0.2% 0.2%
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events this week (July 11– 15)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
03:00 pm USD FOMC Member George Speaks July
TUESDAY
07:00 am EUR German Final CPI June 0.1% 0.1% 0.1%
Tentative GBP Inflation Report Hearings July
WEDNESDAY
03:00 am CNY Trade Balance June 311B 320B 325B
14:00 pm CAD BOC Interest Rate Decision 0.5% 0.5% 0.5%
THURSDAY
02:30 am AUD Unemployment Rate July 5.8% 5.7% 5.8%
12:00 pm GBP Official Bank Rate 0.5% 0.25% 0.50%
12:30 pm USD Unemployment Claims July 263K 254K
FRIDAY
03:00 am CNY GDP 6.6% 6.7%
01:00 pm GBP BoE Gov Carney Speech
01:30 pm CAD Manufacturing Sales July 1.0%
01:30 am USD Consumer Price Index July 0.2% 0.2%
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events this week (July 25-29)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
8:00 pm EUR German Ifo Business Climate July 108.3 107.7 108.7
10:45 pm NZD Trade Balance July 127M 128M 358M
TUESDAY
2:00 pm USD CB Consumer Confidence July 97.3 95.6 98.0
2:00 pm USD New Home Sales June 592K 560K 551K
WEDNESDAY
1:30 am AUD CPI July 0.4% 0.4% -0.2%
8:00 am EUR M3 Money Supply July 5.0% 5.0% 4.9%
8:30 pm GBP Prelim GDP July 0.6% 0.5% 0.4%
12:30 pm USD Core Durable Good Orders June -0.5% 0.3% -0.3%
2:30 pm USD Crude Oil Inventories July 22 1.7M -2.1M 2.3M
6:00 pm USD Federal Funds rate <0.50% <0.50% <0.50%
THURSDAY
All Day EUR German Prelim CPI July 0.3% 0.2% 0.1%
12:30 pm USD Unemployment Claims July 266K 261K 253K
11:50 pm JPY Retail Sales July -1.2% -2.1%
FRIDAY
08:00 am JPY Monetary Policy Meeting July
01:30 pm CAD GDP July -0.6% -0.5% 0.1%
Thursday, January 26, 2017
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events this week (January 22 - 26)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
01:30 pm CAD Wholesale Sales m/m November 0.2% 0.3% 1.3%
TUESDAY
9:00 am EUR Flash Services PMI January 53.6 53.9 53.7
9:30 am GBP EU Membership Court Ruling
03:00 pm USD Existing Home Sales December 5.49M 5.54M 5.61M
WEDNESDAY
09:00 am EUR German Ifo Business Climate January 109.8 111.3 111.0
03:30 pm USD Crude Oil Inventories Last week 2.5M 1.5M 2.3M
THURSDAY
09:30 am GBP Prelim GDP q/q Q4 2016 0.5% 0.6%
03:00 pm USD New Home Sales December 585K 592K
FRIDAY
09:30 am EUR M3 Money Supply y/y December 4.9% 4.8%
01:30 pm USD Advance GDP q/q Q4 2016 3.5%
Thursday, January 26, 2017 08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Euro zone An important indicator of the euro area's economic health stayed unchanged in June. The 19-country Markit Composite PMI, a forward-looking indicator tracking development in the euro area's manufacturing and services sectors, was unchanged at 53.1 points during the sixth month of the year, same as in May, when it rebounded from a 15-month trough. Meanwhile, conditions in the euro-zone services sector eased as the gauge tracking development in the area booked 52.8 points, down from 53.3 snatched in May. A level below 50.0 signals a deterioration from the previous month, while above 50.0 signals an increase. Among major euro area countries, France was once again the weakest performer, with PMIs pointing to a contraction in economic output. Indicators for Germany, Italy and Spain pointed to solid expansion. Data overall signaled a continued pick-up in employment, with job growth accelerating to a five-year high. US The number of Americans filing unemployment benefits unexpectedly plunged last week, to the lowest level since April, giving a hint that labour market started to recover amid a shaky global economy. According to the Labor Department, initial claims for state unemployment benefits lost 16,000 to a seasonally adjusted 254,000 for the week ended July 2. Moreover, following drop left claims close to a 43-year low of 248,000 touched in mid-April. Economists, in turn, had expected jobless claims to reach 270,000 from the 268,000 originally reported for the June. Meanwhile, today, on Friday, the highly anticipated June employment report will show whether job creation remains sluggish or is starting to recover. UK June was the worst month in seven years period for the Britain's builders since construction PMI entered a contraction territory, being affected by uncertainty over the results of the EU membership referendum. According to the data, the UK construction PMI index for the previous month was much weaker than expected slipping to 46.0 points, from 51.2 mark previously, and compared with an forecasted figure of 50.5. Moreover, following number was the first reading below 50.0 mark since April 2013 and the weakest level since the middle of 2009 as uncertainty covered the sector. Although, there are strong expectations of a further decline in next month's data. The main reasons for the following decline are the harsh drop in residential building as well as reduction in commercial work for the first time since May 2013. Although, residential construction activity went down at the fastest pace since December 2012. Civil engineering activity, in turn, remained broadly stable. Canada An important indicator of the euro area's economic health stayed unchanged in June. The 19-country Markit Composite PMI, a forward-looking indicator tracking development in the euro area's manufacturing and services sectors, was unchanged at 53.1 points during the sixth month of the year, same as in May, when it rebounded from a 15-month trough. Meanwhile, conditions in the Euro-zone services sector eased as the gauge tracking development in the area booked 52.8 points, down from 53.3 snatched in May.
Key highlights of the week ended July 8 Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Euro zone
An important indicator of the euro area's economic health stayed unchanged in June. The 19-country Markit Composite PMI, a forward-
looking indicator tracking development in the euro area's manufacturing and services sectors, was unchanged at 53.1 points during the
sixth month of the year, same as in May, when it rebounded from a 15-month trough. Meanwhile, conditions in the euro-zone services
sector eased as the gauge tracking development in the area booked 52.8 points, down from 53.3 snatched in May. A level below 50.0
signals a deterioration from the previous month, while above 50.0 signals an increase. Among major euro area countries, France was
once again the weakest performer, with PMIs pointing to a contraction in economic output. Indicators for Germany, Italy and Spain
pointed to solid expansion. Data overall signaled a continued pick-up in employment, with job growth accelerating to a five-year high.
US
The number of Americans filing unemployment benefits unexpectedly plunged last week, to the lowest level since April, giving a hint that
labour market started to recover amid a shaky global economy. According to the Labor Department, initial claims for state
unemployment benefits lost 16,000 to a seasonally adjusted 254,000 for the week ended July 2. Moreover, following drop left claims
close to a 43-year low of 248,000 touched in mid-April. Economists, in turn, had expected jobless claims to reach 270,000 from the
268,000 originally reported for the June. Meanwhile, today, on Friday, the highly anticipated June employment report will show whether
job creation remains sluggish or is starting to recover.
UK
June was the worst month in seven years period for the Britain's builders since construction PMI entered a contraction territory, being
affected by uncertainty over the results of the EU membership referendum. According to the data, the UK construction PMI index for
the previous month was much weaker than expected slipping to 46.0 points, from 51.2 mark previously, and compared with an
forecasted figure of 50.5. Moreover, following number was the first reading below 50.0 mark since April 2013 and the weakest level
since the middle of 2009 as uncertainty covered the sector. Although, there are strong expectations of a further decline in next month's
data. The main reasons for the following decline are the harsh drop in residential building as well as reduction in commercial work for
the first time since May 2013. Although, residential construction activity went down at the fastest pace since December 2012. Civil
engineering activity, in turn, remained broadly stable.
Key highlights of the week ended July 8 Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Euro zone
On Thursday, the European Central Bank left its key interest rates unchanged, signaling that it is ready to provide additional monetary stimulus at its policy meeting on September 8, when they will have new post-Brexit economic forecasts. Other data released last week showed that investor sentiment in the Euro zone markedly dropped in July, driven by Britain’s vote to leave the European Union, as the ZEW Economic Sentiment Index in the 19-nation currency bloc came in at -14.7 in the reported month, following last month’s figure of 20.2 points, while analysts penciled in a decrease to 12.3 in July. Furthermore, business confidence in the region’s largest economy, Germany, was also severely affected by the Brexit vote, as the ZEW Indicator of Economic Sentiment for the country came in at -6.8 in July, after rising to 19.2 points in the previous month, its 10-month high, while economists anticipated a deceleration to 9.0. Meanwhile, the German PPI rose 0.4% month-over-month in June, the same rate as in May, whereas markets predicted a decline to 0.2%.
Australia
On July 5, the Reserve Bank of Australia voted to keep its key interest rate on hold at 1.75%, whereas the minutes of the July policy meeting released on Tuesday revealed that policymakers were concerned over the strength of the Australian Dollar and the state of the domestic economy. Moreover, the RBA stated that it would be necessary to receive additional economic data on inflation, home prices and employment in order to determine the future path of cutting interest rates.
US
In the United Sates, crude oil inventories dropped by 2.3 million barrels in the week ended July 15, fresh figures from the Energy Information Administration revealed on Wednesday last week, while market analysts pencilled in a slight drop of 1.3 million barrels in the reported period, following a decline of 2.5 million barrels seen in the previous seven days. Other data released on Thursday showed that the number of initial jobless claims in the week ended July 16 dropped to 253,000 from the preceding week’s reading of 254,000, whereas markets predicted an increase to 271,000 filings. This week was the 72nd consecutive week that initial claims were below the 300,000 level, extending the longest streak since 1973.
UK
Consumer prices in the UK rose 0.5% on an annual non-seasonally adjusted basis in June, following May’s 0.3% and surpassing economists’ expectations of a 0.4% increase in the reported month, the Office for National Statistics (ONS) said on Tuesday. Separate data from the ONS showed that the number of people claiming unemployment-related benefits rose by 400 in June, compared to last month’s upwardly revised figure of 12,200 claims as well as analysts’ estimates of a 4,100 gain. Meanwhile, Britain’s retail sales, excluding automobiles, fell 0.9% on a monthly basis in June, after rising 0.9% in the preceding month. Markets anticipated a drop of 0.4% in the reported month. The June deceleration was mainly driven by lower sales of clothing and footwear which fell 1.8% on a monthly basis and 6.1% on an annual basis. The adverse weather was seen as the main contributor to the following fall, as most of the data was collected before the June 23 EU referendum.
Key highlights of the week ended July 22 Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Euro zone
An important indicator of the euro area's economic health stayed unchanged in June. The 19-country Markit Composite PMI, a forward-
looking indicator tracking development in the euro area's manufacturing and services sectors, was unchanged at 53.1 points during the
sixth month of the year, same as in May, when it rebounded from a 15-month trough. Meanwhile, conditions in the euro-zone services
sector eased as the gauge tracking development in the area booked 52.8 points, down from 53.3 snatched in May. A level below 50.0
signals a deterioration from the previous month, while above 50.0 signals an increase. Among major euro area countries, France was
once again the weakest performer, with PMIs pointing to a contraction in economic output. Indicators for Germany, Italy and Spain
pointed to solid expansion. Data overall signaled a continued pick-up in employment, with job growth accelerating to a five-year high.
US
The number of Americans filing unemployment benefits unexpectedly plunged last week, to the lowest level since April, giving a hint that
labour market started to recover amid a shaky global economy. According to the Labor Department, initial claims for state
unemployment benefits lost 16,000 to a seasonally adjusted 254,000 for the week ended July 2. Moreover, following drop left claims
close to a 43-year low of 248,000 touched in mid-April. Economists, in turn, had expected jobless claims to reach 270,000 from the
268,000 originally reported for the June. Meanwhile, today, on Friday, the highly anticipated June employment report will show whether
job creation remains sluggish or is starting to recover.
UK
June was the worst month in seven years period for the Britain's builders since construction PMI entered a contraction territory, being
affected by uncertainty over the results of the EU membership referendum. According to the data, the UK construction PMI index for
the previous month was much weaker than expected slipping to 46.0 points, from 51.2 mark previously, and compared with an
forecasted figure of 50.5. Moreover, following number was the first reading below 50.0 mark since April 2013 and the weakest level
since the middle of 2009 as uncertainty covered the sector. Although, there are strong expectations of a further decline in next month's
data. The main reasons for the following decline are the harsh drop in residential building as well as reduction in commercial work for
the first time since May 2013. Although, residential construction activity went down at the fastest pace since December 2012. Civil
engineering activity, in turn, remained broadly stable.
Key highlights of the week ended July 8 Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Euro zone
An important indicator of the euro area's economic health stayed unchanged in June. The 19-country Markit Composite PMI, a forward-
looking indicator tracking development in the euro area's manufacturing and services sectors, was unchanged at 53.1 points during the
sixth month of the year, same as in May, when it rebounded from a 15-month trough. Meanwhile, conditions in the euro-zone services
sector eased as the gauge tracking development in the area booked 52.8 points, down from 53.3 snatched in May. A level below 50.0
signals a deterioration from the previous month, while above 50.0 signals an increase. Among major euro area countries, France was
once again the weakest performer, with PMIs pointing to a contraction in economic output. Indicators for Germany, Italy and Spain
pointed to solid expansion. Data overall signaled a continued pick-up in employment, with job growth accelerating to a five-year high.
US
The number of Americans filing unemployment benefits unexpectedly plunged last week, to the lowest level since April, giving a hint that
labour market started to recover amid a shaky global economy. According to the Labor Department, initial claims for state
unemployment benefits lost 16,000 to a seasonally adjusted 254,000 for the week ended July 2. Moreover, following drop left claims
close to a 43-year low of 248,000 touched in mid-April. Economists, in turn, had expected jobless claims to reach 270,000 from the
268,000 originally reported for the June. Meanwhile, today, on Friday, the highly anticipated June employment report will show whether
job creation remains sluggish or is starting to recover.
UK
June was the worst month in seven years period for the Britain's builders since construction PMI entered a contraction territory, being
affected by uncertainty over the results of the EU membership referendum. According to the data, the UK construction PMI index for
the previous month was much weaker than expected slipping to 46.0 points, from 51.2 mark previously, and compared with an
forecasted figure of 50.5. Moreover, following number was the first reading below 50.0 mark since April 2013 and the weakest level
since the middle of 2009 as uncertainty covered the sector. Although, there are strong expectations of a further decline in next month's
data. The main reasons for the following decline are the harsh drop in residential building as well as reduction in commercial work for
the first time since May 2013. Although, residential construction activity went down at the fastest pace since December 2012. Civil
engineering activity, in turn, remained broadly stable.
Key highlights of the week ended July 8 Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Euro zone
On Thursday, the European Central Bank left its key interest rates unchanged, signaling that it is ready to provide additional monetary
stimulus at its policy meeting on September 8, when they will have new post-Brexit economic forecasts. Other data released last week
showed that investor sentiment in the Euro zone markedly dropped in July, driven by Britain’s vote to leave the European Union, as the
ZEW Economic Sentiment Index in the 19-nation currency bloc came in at -14.7 in the reported month, following last month’s figure of
20.2 points, while analysts penciled in a decrease to 12.3 in July. Furthermore, business confidence in the region’s largest economy,
Germany, was also severely affected by the Brexit vote, as the ZEW Indicator of Economic Sentiment for the country came in at -6.8 in
July, after rising to 19.2 points in the previous month, its 10-month high, while economists anticipated a deceleration to 9.0. Meanwhile,
the German PPI rose 0.4% month-over-month in June, the same rate as in May, whereas markets predicted a decline to 0.2%.
Australia
On July 5, the Reserve Bank of Australia voted to keep its key interest rate on hold at 1.75%, whereas the minutes of the July policy
meeting released on Tuesday revealed that policymakers were concerned over the strength of the Australian Dollar and the state of the
domestic economy. Moreover, the RBA stated that it would be necessary to receive additional economic data on inflation, home prices
and employment in order to determine the future path of cutting interest rates.
US
In the United Sates, crude oil inventories dropped by 2.3 million barrels in the week ended July 15, fresh figures from the Energy
Information Administration revealed on Wednesday last week, while market analysts pencilled in a slight drop of 1.3 million barrels in
the reported period, following a decline of 2.5 million barrels seen in the previous seven days. Other data released on Thursday showed
that the number of initial jobless claims in the week ended July 16 dropped to 253,000 from the preceding week’s reading of 254,000,
whereas markets predicted an increase to 271,000 filings. This week was the 72nd consecutive week that initial claims were below the
300,000 level, extending the longest streak since 1973.
UK
Consumer prices in the UK rose 0.5% on an annual non-seasonally adjusted basis in June, following May’s 0.3% and surpassing
economists’ expectations of a 0.4% increase in the reported month, the Office for National Statistics (ONS) said on Tuesday. Separate
data from the ONS showed that the number of people claiming unemployment-related benefits rose by 400 in June, compared to last
month’s upwardly revised figure of 12,200 claims as well as analysts’ estimates of a 4,100 gain. Meanwhile, Britain’s retail sales,
Key highlights of the week ended July 22 Thursday, January 26, 2017
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Euro zone
The Euro zone’s trade surplus expanded more than expected in November, hitting €22.7 billion, Eurostat reported. Other data released last
week showed German business sentiment rose to its highest level in seven months in January, though less than expected, as the Munich-based
ZEW institute said its Economic Sentiment Indicator for Germany rose 2.8 points to 16.6 in the reported month, falling behind analysts'
expectations of a monthly improvement to 18.4. However, the latest score was the strongest since June. Consumer prices in the Euro zone
climbed to a 38-month high in December in line with analysts’ expectations According to Eurostat, the headline CPI and core CPI came in 1.1%
and 0.9% year-over-year in November, respectively. Last week, the ECB left its monetary policy unchanged at its January meeting on Thursday,
as underlying inflation trends and the region’s economic recovery remained subdued.
US
Manufacturing activity in the State of New York dropped more than expected in January, results of the latest The Empire State Manufacturing
Survey showed last week. The New York Federal Reserve reported factory activity across the region fell to 6.5 points from December’s 9.0
points, while market analysts anticipated a slight decrease to 8.1 in January. Also, the Labor Department reported last week that more
expensive gasoline and rental accommodation boosted US consumer inflation last month. However, the Fed’s preferred inflation measure, the
core PCE, remained below the Central bank’s 2% target at 1.6% in December.
UK
British consumer prices showed solid growth in December, due to the weak Sterling. The Office for National Statistics reported its Consumer
Price Index rose 0.5% to 1.6% year-over-year in December, compared to the preceding month's 1.2%, above market expectations for a 1.4%
hike. It was the strongest expansion since 2014. According to the latest forecasts, the further rise in UK inflation is likely to force the Bank of
England to tighten its monetary policy. However, any reading above the 0 point-level points to expansion in the manufacturing sector. The
unemployment rate in Britain held steady last month, while the number of unemployment benefit claims declined.
Canada
As markets expected, the Bank of Canada left its benchmark overnight rate on hold at its January policy meeting on Thursday, where it has been
since the middle of 2015. The decision to keep the key interest rate at 0.50% was driven by high uncertainty surrounding Trump’s presidency.
Moreover, on Thursday of last week, Statistic Canada manufacturing sales rebounded sharply in November, helped by the primary metals,
petroleum and coal industries.
Key highlights of the week ended January 13
EUR
“Weakness in manufacturing is especially eye-catching and this probably has something to do with Trump and related fears of German exporters.” -Andreas Rees, UniCredit Bank AG
Thursday, January 26, 2017 08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
S&P/ASX 200 Index 0.29% 5,408.24
S&P/ASX 300 Index 0.28% 5,360.32
Trends* Q1 17 Q2 17 Q3 17
MAX 1.19 1.18 1.22
75% percentile 1.07 1.08 1.10
Median 1.05 1.04 1.05
25% percentile 1.03 1.02 1.01
MIN 0.98 0.95 0.90
* the data is based on international banks’ forecasts
Impact
German Ifo Business Climate Index posts surprise fall in
January High
25.01 open price 25.01 close price % change
EUR/USD 1.07459 1.07328 -0.12%
EUR/GBP 0.85043 0.84965 -0.09%
EUR/CHF 1.07385 1.07297 -0.08%
EUR/JPY 121.75 122.09 +0.28%
German business sentiment fell unexpectedly this month as companies downgraded their outlooks, a private survey revealed on Thursday. The Munich-based Ifo Institute reported its Business Climate Index, which is based on approximately 7,000 monthly survey responses in the construction, manufacturing, retail and wholesale sectors, decreased to 109.8 from 111.0 points seen December, while market analysts anticipated a slight acceleration to 111.3 in the reported period. Furthermore, there was a slight confidence fall in wholesale, while retailing sentiment dropped to a five month-low. In the meantime, the Current Assessment Index advanced to 116.9 in January from 116.7 points registered in the prior month, matching analysts' expectations. However, the Business Expectations Index, which tracks sentiment in the next six months, declined to 103.2 during the reported period from 105.5 in December, hitting the lowest level in five months. The latest Ifo report suggests that companies are positively confident in near-term growth. In addition, manufacturers intend to increase prices. According to forecasts, German industries are likely to gain support from the firming global economy and ECB‘s accommodative monetary policy. Exports are set to appreciate 2.8% this year on the stronger Euro.
GBP
“I welcome today's judgment. But this court case was never about legal arguments, it was about giving the people a voice, a say, in what happens next ”. -Tim Farron, the British Democratic Party
Thursday, January 26, 2017 08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
S&P/ASX 200 Index 0.29% 5,408.24
S&P/ASX 300 Index 0.28% 5,360.32
Trends* Q1 17 Q2 17 Q3 17
MAX 1.84 1.32 1.62
75% percentile 1.25 1.26 1.28
Median 1.22 1.22 1.24
25% percentile 1.20 1.20 1.18
MIN 1.07 1.03 1.02
* the data is based on international banks’ forecasts
Impact
British Supreme Court rules against May’s Brexit plan High
25.01 open price 25.01 close price % change
GBP/USD 1.25182 1.24958 -0.18%
EUR/GBP 0.85705 0.85731 +0.03%
GBP/CAD 1.64681 1.64246 -0.26%
GBP/JPY 142.402 141.89 -0.36%
Britain’s Supreme Court ruled on Tuesday that the UK Prime Minister Theresa May must get parliamentary approval to trigger Article 50 of the Lisbon Treaty and begin the country’s two-year withdrawal from the European Union. David Neuberger, Britain's most senior judge and the leader of the Supreme Court, reported judges voted 8-3 to reject the Government’s appeal. Theresa May repeatedly said she would trigger the EU divorce clause by the end of March but she will now have to seek permission from MPs to kick-start the process of leaving. However, the majority of lawmakers stated they would not stop the block the breakup process, which was supported by 52% of Britons. The Brexit Secretary David Davis said the Government is planning to introduce a fast-track Bill in Parliament to begin the process of leaving the EU within next few days, adding that MPs are expected to vote on the legislation as early as next week. Separately, the Office for National Statistics reported British public sector borrowing dropped to a seasonally adjusted 6.4 billion pounds in December, slightly below analysts’ expectations for 6.7 billion pounds. In the meantime, the November figure was revised down from 12.2 billion pounds to 10.8 billion pounds.
USD
“Rising interest rates are certainly a risk for the oil market this year”. -Tom Pugh, Capital Economics
Thursday, January 26, 2017
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
S&P/ASX 200 Index 0.29% 5,408.24
S&P/ASX 300 Index 0.28% 5,360.32
Trends* Q1 17 Q2 17 Q3 17
MAX 122 122 125
75% percentile 116 118 118
Median 114 114 115
25% percentile 110 109 110
MIN 98 100 100
* the data is based on international banks’ forecasts
Impact
US crude oil inventories climb more than expected last week High
14.08 open price 14.08 close price % change
AUD/USD 0.757 0.75551 -0.20%
USD/CHF 0.99901 0.84349 +0.08%
USD/JPY 113.277 113.792 +0.45%
NZD/USD 0.72971 0.72733 -0.33%
US crude oil inventories rose more than expected last week, official figures revealed on Wednesday. According to the Energy Information Administration’s weekly report, US crude stockpiles climbed 2.8 million barrels in the week ended January 20, following a 2.3-million-barrel increase in the preceding week and surpassing market analysts’ expectations for a 1.5-million-barrel build up. As a result, the price of Brent crude oil dropped $0.53 to $54.91 per barrel, while the price of West Texas Intermediate oil futures fell $0.42 to $52.76 per barrel. Earlier this week, the American Petroleum Institute reported a rise of 2.9 million barrels in crude oil inventories for the past week. According to Bernstein Energy, global oil inventories decreased 24 million barrels to 5.7 billion barrels on a quarterly basis in the three month period to December of 2016 amid OPEC’s decision to reduce its production levels. In the meantime, oil production in the United States climbed more than 6% since the middle of 2016, remaining just 7% below its 2015 record high. In addition, future interest rate hikes by the Federal Reserve are likely to push oil prices lower in 2017. However, analysts continue to suggest strong growth for the sector, pointing to the US President Donald Trump’s promises to cut regulations on oil and gas production.
Thursday, January 26, 2017 08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events of the previous week (July 4– 8)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
02:30 am AUD Building Approvals (MoM) June -5.2% -3.6% 3.3%
09:30 am GBP Construction PMI July 46.0 50.6 51.2
TUESDAY
02:30 am AUD Trade Balance July -2.22B -1.72B -1.58B
09:30 am GBP Services PMI July 52.3 53.1 53.5
WEDNESDAY
01:30 pm CAD Trade Balance July -3.3B -2.7B -2.9B
03:00 pm USD ISM Non-Manufacturing PMI July 56.5 53.5 52.9
THURSDAY
09:30 am GBP Manufacturing Production (MoM) July -0.5% -1.4% 2.3%
01:30 am USD Unemployment Claims July 254K 272K 268K
FRIDAY
09:30 am GBP Goods Trade Balance July -9.9B -10.2B -10.5B
01:30 pm CAD Unemployment Rate July 6.8% 7.0% 6.9%
01:30 am USD Unemployment Rate July 4.9% 4.8% 4.7%
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events of the previous week (July 4– 8)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
02:30 am AUD Building Approvals (MoM) June -5.2% -3.6% 3.3%
09:30 am GBP Construction PMI July 46.0 50.6 51.2
TUESDAY
02:30 am AUD Trade Balance July -2.22B -1.72B -1.58B
09:30 am GBP Services PMI July 52.3 53.1 53.5
WEDNESDAY
01:30 pm CAD Trade Balance July -3.3B -2.7B -2.9B
03:00 pm USD ISM Non-Manufacturing PMI July 56.5 53.5 52.9
THURSDAY
09:30 am GBP Manufacturing Production (MoM) July -0.5% -1.4% 2.3%
01:30 am USD Unemployment Claims July 254K 272K 268K
FRIDAY
09:30 am GBP Goods Trade Balance July -9.9B -10.2B -10.5B
01:30 pm CAD Unemployment Rate July 6.8% 7.0% 6.9%
01:30 am USD Unemployment Rate July 4.9% 4.8% 4.7%
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events of the previous week (July 18– 22)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
01:30 pm CAD Foreign Securities Purchases July 14.73B 15.39B 15.52B
TUESDAY
02:30 am AUD Monetary Policy Meeting Minutes July
08:30 am GBP Consumer Price Index (YoY) July 0.5% 0.4% 0.3%
10:00 am EUR ZEW Survey-Economic Sentiment July -14.7% 12.3 20.2
WEDNESDAY
07:00 am EUR German Producer Price Index (YoY) July 0.4% 0.2% 0.4%
09:30 pm GBP Claimant Count Change July 0.4K 4.1K 12.2K
03:30 pm USD Crude Oil Inventories July -2.3M -1.3M -2.5M
THURSDAY
09:30 am GBP Retail Sales (MoM) July -0.9% -0.4% 0.9%
01:30 pm EUR ECB Interest Rate Decision July 0%
01:30 pm USD Unemployment Claims July 253K 271K 254K
FRIDAY271K
08:00 am EUR Markit Manufacturing PMI July 51.9 52.1 52.8
01:30 pm CAD Core Retail Sales (MoM) July 0.9% 0.3% 1.3%
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events of the previous week (July 4– 8)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
02:30 am AUD Building Approvals (MoM) June -5.2% -3.6% 3.3%
09:30 am GBP Construction PMI July 46.0 50.6 51.2
TUESDAY
02:30 am AUD Trade Balance July -2.22B -1.72B -1.58B
09:30 am GBP Services PMI July 52.3 53.1 53.5
WEDNESDAY
01:30 pm CAD Trade Balance July -3.3B -2.7B -2.9B
03:00 pm USD ISM Non-Manufacturing PMI July 56.5 53.5 52.9
THURSDAY
09:30 am GBP Manufacturing Production (MoM) July -0.5% -1.4% 2.3%
01:30 am USD Unemployment Claims July 254K 272K 268K
FRIDAY
09:30 am GBP Goods Trade Balance July -9.9B -10.2B -10.5B
01:30 pm CAD Unemployment Rate July 6.8% 7.0% 6.9%
01:30 am USD Unemployment Rate July 4.9% 4.8% 4.7%
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events of the previous week (July 4– 8)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
02:30 am AUD Building Approvals (MoM) June -5.2% -3.6% 3.3%
09:30 am GBP Construction PMI July 46.0 50.6 51.2
TUESDAY
02:30 am AUD Trade Balance July -2.22B -1.72B -1.58B
09:30 am GBP Services PMI July 52.3 53.1 53.5
WEDNESDAY
01:30 pm CAD Trade Balance July -3.3B -2.7B -2.9B
03:00 pm USD ISM Non-Manufacturing PMI July 56.5 53.5 52.9
THURSDAY
09:30 am GBP Manufacturing Production (MoM) July -0.5% -1.4% 2.3%
01:30 am USD Unemployment Claims July 254K 272K 268K
FRIDAY
09:30 am GBP Goods Trade Balance July -9.9B -10.2B -10.5B
01:30 pm CAD Unemployment Rate July 6.8% 7.0% 6.9%
01:30 am USD Unemployment Rate July 4.9% 4.8% 4.7%
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events of the previous week (July 18– 22)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
01:30 pm CAD Foreign Securities Purchases July 14.73B 15.39B 15.52B
TUESDAY
02:30 am AUD Monetary Policy Meeting Minutes July
08:30 am GBP Consumer Price Index (YoY) July 0.5% 0.4% 0.3%
10:00 am EUR ZEW Survey-Economic Sentiment July -14.7% 12.3 20.2
WEDNESDAY
07:00 am EUR German Producer Price Index (YoY) July 0.4% 0.2% 0.4%
09:30 pm GBP Claimant Count Change July 0.4K 4.1K 12.2K
03:30 pm USD Crude Oil Inventories July -2.3M -1.3M -2.5M
THURSDAY
09:30 am GBP Retail Sales (MoM) July -0.9% -0.4% 0.9%
01:30 pm EUR ECB Interest Rate Decision July 0%
01:30 pm USD Unemployment Claims July 253K 271K 254K
FRIDAY271K
08:00 am EUR Markit Manufacturing PMI July 51.9 52.1 52.8
01:30 pm CAD Core Retail Sales (MoM) July 0.9% 0.3% 1.3%
Thursday, January 26, 2017
08:30 GMT
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events of the previous week (August 15-19)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
04:30 am JPY Industrial Production (MoM) June 2.3% 1.9%
TUESDAY
8:30 am GBP Consumer Price Index (YoY) July 0.6% 0.5% 0.5%
9:00 am EUR Trade Balance June 29.2B 24.5B
12:30 pm USD Consumer Price Index (YoY) July 0.8% 0.9% 1.0%
22:45 pm NZD Unemployment Rate Quarter 5.1% 5.3% 5.2%
WEDNESDAY
USD FOMC Minutes
23:50 pm JPY Merchandise Trade Balance July 317.6B 142B 335B
THURSDAY
1:30 am AUD Unemployment Rate July 5.7% 5.8% 5.8%
08:30 am GBP Retail Sales (MoM) July 1.5% 0.4% -0.9%
09:00 am EUR Consumer Price Index (MoM) July -0.6% -0.5% 0.2%
12:30 am USD Initial Jobless Claims August 12 262K 265K 266K
FRIDAY
6:00 am EUR German Producer Price Index (MoM) July 0.2% 0.4%
12:30 pm CAD Consumer Price Index (MoM) July -0.2% 0.2%
Thursday, January 26, 2017
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Major events previous week (January 16 - 20)
Day/Time (GMT) Flag Currency Event Period Actual Forecast Previous
MONDAY
10:00 am EUR Trade Balance November 22.7B 23.2B 19.9B
TUESDAY
09:30 am GBP CPI y/y December 1.6% 1.4% 1.2%
10:00 am EUR German ZEW Economic Sentiment January 16.6 18.9 13.8
01:30 pm USD Empire State Manufacturing Index December 6.5 8.1 9.0
WEDNESDAY
09:30 am GBP Claimant Count Change December -10.1K 4.6K 1.3K
10:00 am EUR Final CPI y/y December 1.1% 1.1% 1.1%
01:30 pm USD CPI m/m December 0.3% 0.3% 0.2%
03:00 pm CAD BOC Overnight Rate 0.50% 0.50% 0.50%
THURSDAY
01:30 pm EUR ECB Press Conference
01:30 pm USD Building Permits December 1.21K 1.22M 1.21M
01:30 pm CAD Manufacturing Sales m/m November 1.5% 0.2% -0.6%
FRIDAY
09:30 am GBP Retail Sales m/m December -1.9% -0.1% -0.1%
01:30 pm CAD CPI m/m December -0.2% 0.0% -0.4%
Tentative USD President-Elect Trump Speaks
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Chart SMA (55) – Simple Moving Average of 55 periods SMA (200) – Simple Moving Average of 200 periods Forecasts
EXPLANATIONS
Third Quartile – separates 25% of the highest forecasts
Second Quartile – the median price based on the projections of the industry
First Quartile – separates 25% of the lowest forecasts
Dukascopy Bank SA, Route de Pre-Bois 20, International Center Cointrin, Entrance H, 1215 Geneva 15, Switzerland tel: +41 (0) 22 799 4888, fax: +41 (0) 22 799 4880 [email protected]
Disclaimer Everything in this article, including opinions and figures, is provided for informational purposes only and may not be interpreted as financial advice or solicitation of products. Dukascopy group assume no responsibility for the completeness or the accuracy of any data contained in this article. Financial figures indicated in this article have not been verified by the Dukascopy group. Views, opinions and analyses are those of the author of the article, and are not endorsed by the Dukascopy group. Dukascopy group waive any and all warranties, express or implied, regarding, but without limitation to, warranties of the merchantability or the fitness for a particular purpose, with respect to all information in this article. Dukascopy group shall under no circumstances be responsible for any direct, indirect, consequential, contingent or any other damages sustained in connection with the use of this article.
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