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Currencies wandered in the collars

Currencies wandered in the collars, only occasionally being agitated by extraneous sounds

We have not had a whole week without signals for a long time but we used this period of the weak calendar with benefit and carried out a number of updates of the autoclick as well as our Flashnewstrader platform. In addition, a number of noteworthy publications of economic indicators will appear on Tuesday, and the main focus would be on Wednesday and Thursday ...

Some notes from last week

The Reserve Bank of Australia expectedly left the interest rate unchanged (1.5%) and did not do much to surprise the markets in its minutes. Nevertheless, the Bank lowered forecasts of economic growth and inflation. According to the regulator, the target inflation rate (2%) will not be achieved until 2019.

Following the RBA, the Reserve Bank of New Zealand made the same, it also left the interest rate untouched (1.75%). However, the RBNZ was more fortunate and managed to move the quotes a bit, as it told that in the nearest future it still expects the return of the inflation to the target collar of 1-3%.

On Tuesday, three different heads of different central banks made their speeches at different times: Poloz, Yellen, and Draghi (Canada, USA and EU, respectively). Poloz will continue to monitor wage growth and the state of inflation in Canada, Yellen will be replaced by Jerome Powell (most likely), and Draghi is always boring, and the echo of his past speech after the ECB meeting on October 26 is still heard louder than himself (when the asset redemption program was reduced doubled but extended until September 2018).

On Friday, the pound was supported not by the extremely positive, but simply "good" production growth data, which enabled the sterling to recoup by the end of the week after the severity of the indistinct Brexit talks, as well as political turmoil against which the defense minister and the minister for international development of Great Britain lost their place.

The US dollar came out as a loser according to the results of the week and finally rolled back based on the information about the possible problems in the way of tax reform, which could be postponed until 2019.

The next week promises to be much more cheerful

At least because the calendar of publications of important economic indicators is more intense than the previous week period.

SE CPI, Tuesday, may be interesting but exotic trade is "with side effects" of spread.

UK CPI, Tuesday, may be interesting in case of rise in inflation

UK Average Earnings, Wednesday, complex but requires attention.

US CPI - Core + US Retail Sales [m/m], Wednesday, very interesting but unfortunately come out simultaneously.

UK Retail Sales, Thursday, extremely interesting indicator

CA CPI + CA Retail Sales - Core, Friday, very interesting, but unfortunately come out simultaneously.


These are not all indicators, the full list can be found on the calendar page of trading signals.