Economic Growth - Weekly Report 23 – 27/06/2014

Starting with Monday the 23rd June. We start the trading week in the U.S. with the release of May’s Existing Home Sales figures. Sales of previously owned U.S. homes rose in April for the first time this year as price increases slowed and more properties were put on the market. Parallel gains in home construction reveal that builders are reacting to limited inventory which may suggest stronger sales activity in the months ahead. This month analysts are forecasting an increase from 4.65 to 4.7 million, so traders may wish to lookout for PUT opportunities on the EUR/USD.

On Tuesday, we move to the U.K. for the latest Inflation Report Hearings where Mark Carney and MPC members will testify on inflation and the economic outlook. The UK economy has performed strongly over the past year, while inflation has fallen back close to the central bank’s 2% target. With spare capacity in the economy, MPC members are likely to discuss ways to make further inroads before a much-anticipated increase in interest rates comes into effect. The hearings always create market volatility, so traders should watch closely for clues about future monetary policy and possible opportunities on the GBP currency pairs.

On to Wednesday now, and we’re back in the U.S for the latest Core Durable Goods Orders figures. Official data showed that U.S. core durable goods orders rose 0.1% last month, slightly below expectations but a positive figure nonetheless. This month, we look to the strong possibility of another positive reading, fuelled by May’s higher-than-expected increase in industrial production numbers. In this case, Banc De Binary analysts will be looking at more PUT opportunities on the Eurodollar.

We stay in the U.S. on Thursday for the release of the latest Unemployment Claims figures. Last week, jobless claims fell by 6,000 to 312,000 and with manufacturing and consumer spending data also on the rise the Federal Reserve’s forecasts that the economic expansion will gather steam after a first-quarter slump, seem to be correct. Banc De Binary analysts will be watching for a further drop in unemployment claims this week, along with trading opportunities on the USD currency pairs.

And so to Friday, we end the week in Europe with the latest German CPI data. German consumer prices rose by just 0.6% in May, its lowest growth rate since February 2010 and well below the 1.1% gain registered in April. Weak inflation in the Eurozone’s largest economy, mirrored by deflationary pressures in the currency bloc as a whole will prompt market watchers to keep a close eye on Germany’s latest CPI figures. Another negative reading could apply downward pressure on the common currency, prompting Banc De Binary analysts to look for opportunities on the Euro currency pairs.