Forex Trading Weekly round-up – June WK2 2016

 
 
 
Today (10th June) the employment change for Canada ways release and for those of you who have been trading the CAD would have been in for a treat! For those of you that don’t know, this is vital economic data which is released shortly after the month ends. With the data being released so early in the day, it means that it impacts the market hugely for the rest of the day.
Why should you care? Well, job creation is an important indicator of consumer spending, which accounts for a majority of overall economic activity.

 

The sterling has begun to show signs of unpredictability as the EU referendum draws nearer. Yesterday (9th June), the BBC reported that bonds have fallen to a record low and the sterling had been at the lowest value in years.
Saying this, according the Office of National Statistics (ONS), UK manufacturing is at the highest it’s been since 2012 with a rise of 2%.
On Wednesday (8th June), the change in the total inflation-adjusted value of output produced by manufacturers was released which no doubt effected traders.
Manufacturing makes up around 80% of total Industrial Production and dominates the market impact; it’s a leading indicator of economic health – production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.

Brexit has been on everyone’s minds for months now and with the referendum coming up on the 23rd June and both sides giving a strong argument, who knows what will happen.
On Monday (6th June), the Federal Reserve chair, Janet Yellen, voiced how the UK leaving the EU would have ‘significant economic repercussions’ for the US economy. But according to a research team at BBH, Brexit angst has been a helping factor to drive down interest rates in Germany and Japan. So it’s not bad for everyone!
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