G20 Meetings - Weekly Report 07–11/04/2014

Starting with Monday the 7th of April. The first key trading event of the week comes at 6.00 am with the release of industrial production figures from Germany. Last month’s posting of 0.8% beat forecasts, and encouraging retail sales data from Europe’s strongest economy last week supports another positive number this time around, which could result in call opportunities on the euro-dollar.

On Tuesday, the Bank of Japan will deliver its monthly monetary policy statement followed by a press conference. The Japanese Central Bank is expected to address details on how its mission to achieve a 2% inflation target will face its biggest challenge in April, following last month’s sales tax increase from 5 to 8%, which is likely to reduce consumption and put downward pressure on growth and prices. Banc De Binary analysts are looking at possible call opportunities on the USD/JPY immediately after the Bank of Japan’s monetary policy statement is released.

On Wednesday, the key event of the day is the release of the minutes of last month’s FOMC Meeting at which Janet Yellen and other members of the Federal Reserve Open Market Committee decided to reduce their Quantitative Easing programme by a further $10 billion a month. The minutes of this meeting will provide binary options traders with crucial information regarding future monetary policy by the U.S. Central Bank which is of course one of the main drivers of the Euro/dollar.

Following on from Wednesday’s FOMC meeting, are Thursday’s U.S. Unemployment Claims. The number of new claims for unemployment benefits rose more than expected last week, and the underlying trend continues to point to some strength in the labour market. This week’s unemployment claims are expected to continue to fall supporting expectations of an acceleration in job creation as the month progresses. Once again, this may result in call opportunities on the euro/dollar, as a sustained improvement in the U.S. labor market is one of Janet Yellen’s key metrics for further tapering of quantitative easing.

And ending the week are Friday’s G20 meetings at which finance ministers and central bankers meet to discuss important global economic issues, including the continuing standoff in the Ukraine. Also likely to be on the agenda are consumer prices which rose at a slower pace across the world’s largest economies in February, fuelling concerns that too little inflation may threaten the recovery of the global economy. With the annual rate of inflation in the G20 falling for a third straight month from 2.6% to 2.3%, initiatives and policies arising from the meetings are likely to impact a basket of currency pairs.