Your Monday Wake Up Call

What to look forward to this week

After a week of key central bank interest rate decisions from the world’s biggest financial centres, this week is fairly light in terms of high impact data releases. The impact of these rate decisions was more evident in fluctuations of some of the major currency pairs as well as the exotic currency pairs. The good news is that with GT247.com, you now have access to over 65 currency pairs that you can trade in Rand, therefore there is no excuse to be left out of potential profit making trades. On that note, we have highlighted a few things that you might want to take note of whilst trading this week.

• Locally, the only set of high impact data that we are expecting is the CPI data from StatsSA on Wednesday. The estimate for that number is that it will be recorded at 5.3% year-on-year, which is the same as the prior recorded level. This forecast is below the SARB’s upper target of 6%, and if the data comes out as expected it will reduce the central bank’s probability to raise interest rates. We will also keep a pulse on political events locally for potential news & developments that could move our markets.

• In terms of earnings releases, Naspers is expected to release its full year results on Friday. The impact is normally expected to be significant on our local exchange given the big weighting of the stock to the blue-chip Top-40 index.

• On the international front, it is a fairly light week in terms high impact data releases. A couple of US Fed governors are expected to give speeches during the course of the week. Investors will try to gauge the US Fed’s next interest rate decision from these speeches, and as such it is prudent to expect a bit of volatility in the US Dollar and safe-haven assets such as Gold.

• The US is expected to release its current account numbers on Tuesday, and the forecast is that the deficit has widened to $124 billion. Existing Home Sales and New Home Sales data expected on Wednesday & Thursday respectively, should provide some insight into the strength of the US economy ahead of this month’s jobs numbers.

• You can also expect the weekly Crude Oil Inventories and Initial Jobless Claims from the USA. Brent crude has been under a lot of pressure lately and this week’s stockpile number could provide for another big move in global oil prices. We expect OPEC to react to the current oil prices and we could possibly see an announcement coming soon from one of the OPEC Energy ministers.

• The Eurozone will also be fairly light in terms of data releases this week, with most of the significant set of data coming out on Friday. We are expecting Services and Manufacturing PMI numbers from most members of the Eurozone on that day. Prior to that, we are expecting the Bank of England governor and one of the MPC members to give a speech, which could entail some volatility in cable (GBP/USD) depending on the content.

We will be keeping tabs on 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

Follow @Makoni_Henry

Wishing you a profitable day of trading.

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