What to look forward to this week
A brand new week is upon us and we are set for a very interesting week ahead. Despite the disappointment from the Springboks this weekend, we can find solace in the fact that this week will definitely bring some interesting profiting opportunities. I have highlighted a few key events that traders need to look out for during the course of this week.
- Monday is relatively subdued but EUR/USD traders will be paying close attention to the Eurozone CPI data which is expected at 11am on the day. The number is expected to remain unchanged but we still expect some volatility immediately after the data release. Locally, Discovery Ltd is expected to release its full-year results and given the recent rally in the share price, those results should provide an interesting view into the business.
- US Housing data comes into focus on Tuesday as we are expecting Building Permits and Housing Starts numbers, which should provide some insight into the health of the US housing market. We are also expecting Current Account numbers for the same country as well as the Eurozone. On the JSE, we are expecting full year earnings results for EOH Holdings and Sasfin.
- Wednesday kicks off with Current Account numbers from New Zealand which are expected to reflect a deficit. The UK is expected to release Retail Sales numbers whilst in the USA, we are expecting Existing Home Sales and the weekly Crude Oil Inventories numbers. The big focus will be on the US Federal Reserve which is expected to announce its interest rate decision at 8pm CAT, with the press conference following at 8.30pm. Traders can expect volatility in the US Dollar which should also provide some interesting price action in Gold. Locally we are expecting CPI data from StatsSA with the year-on-year number expected to decrease to 4.60% from a prior recording of 4.70%.
- New Zealand gets us started once again with the release of its GDP data which is expected to increase to 0.8% from 0.5%. Following up on that the Bank of Japan is expected to announce its interest decision which is expected to remain unchanged. From the USA we can expect the weekly Initial Jobless Claims whilst in Europe, the ECB President is expected to speak towards the close of the markets. The South African Reserve Bank is expected to announce its interest rate decision and early estimates indicate that they expected to cut the repo rate by 25 basis points to 6.50%. The outcome of that decision should provide for some interesting price action for JSE listed banking shares.
- On Friday, global Manufacturing and Services PMI numbers come into focus as we are expecting that data out of the major global financial centres. Canada is expected to release its CPI and Retail Sales data which should provide for some interesting price action in CAD currency pair crosses.
Political tensions between North Korea and the USA are increasing, and as a trader one cannot afford to ignore the impact of these developments on the financial markets. There will be opportunities as a result of this situation but it is important that the proper risk management procedures are adhered to at all times.
We will be keeping tabs on the events in the markets. Check out our blog for market updates, insights from our GT247.com team, and our independent analysts. Not sure about a trade? Call the GT247.com Trading Desk on 087 940 6102, and bounce your idea off one of our dedicated traders.
Until next week, we wish you profitable trading!
Musa Makoni | Trading Specialist at GT247.com
