Deflation Worries Dominate Markets

Reporting from Banc De Binary’s analysis centre - The Trading Room - welcome to Ahead of the Week and the new trading month of March. Coming up in our report is the US Non-Farm Payroll update and all the other big market-moving events from the 2nd to the 6th of March, 2015. All event times are GMT.

With the Greek debt crisis now on the back page for the short term, Monday the 2nd is likely to see a focus on deflation worries, with the release of Eurozone inflation data for February at 10:00am. Previously reported at minus 0.6 percent, any more negative signals could mean a potential sell-off for the Euro versus its currency rivals. At 15:00, the US announces the ISM Manufacturing PMI for February, previously at the level of 53.5. After Federal Reserve Chairwoman Janet Yellen’s non-committal report to Congress, the US data will still be closely watched, but analysts are also saying that any interest rate surprises from the Fed are looking increasingly unlikely.

On Tuesday the 3rd, the Reserve Bank of Australia releases its Interest Rate Decision at 04:30am, currently at the level of 2.25 percent, amid speculation that there is more monetary easing in sight for the world’s twelfth-largest economy. The RBA is uneasily eyeing the country’s less-than-stellar economic performance, and its concerns are expected to be reflected in the central bank’s monetary policy statement at 04:30. Then, at 13:30, Canada announces its GDP growth for the fourth quarter of 2015, previously reported at the level of 2.8 percent on an annual basis.

Australia remains on the trading agenda on Wednesday the 4th, with the release of GDP figures for the fourth quarter of 2014 at half-past midnight, previously at the level of 2.7 percent on an annual basis. Bank of Canada pops back up on the radar at 15:00 with the announcement of its Interest Rate Decision – currently at the level of 0.75 percent. Will it stay at the same level? Most traders are asking themselves this question, amid deflationary worries on the back of lower oil prices which are bound to affect the oil exporting country. Also at 15:00, the US announces ISM Non-Manufacturing PMI levels for February, previously at the level of 56.7.

Thursday the 5th brings possible trading opportunities on Cable when the Bank of England announces its Interest Rate Decision and Asset Purchase levels at 12:00 hours, previously at the level of 0.5 percent and 375 billion pounds respectively. This is followed shortly afterwards by the European Central Bank’s Interest Rate Decision and Monetary Policy Statement at 13:30, with everyone’s attention on what ECB President Mario Draghi has to say about deflation and QE.

Friday the 6th starts off with UK Consumer Inflation Expectations at 09:30, previously at the level of 2.5 percent. The Eurozone’s GDP for the fourth quarter of 2014 is updated at 10:00am and was previously reported at the level of 0.8 percent. The trading highlight of the week is at 13:30 when the US announces Non-Farm Payroll data, previously at the level of 257,000. US Unemployment is announced at the same time and was formerly at 5.7 percent.

That’s a wrap for this trading week, thanks for watching Ahead of the Week Report from Banc De Binary’s Trading Room research team. Wishing you successful trading, until next week, goodbye…