BOE AND SNB POLICY DECISIONS TAKE CENTER STAGE
CENTRAL BANKS IN FOCUS
During the upcoming trading week, key interest rate decisions from the Bank of England and Swiss National Bank headline the economic calendar. The BOE and SNB are both expected to keep interest rates on hold this week, as the United Kingdom and Swiss economies experience weak economic growth. The Bank of England may acknowledge improving economic data during May, although Brexit uncertainty continues to create headwinds for the UK economy.
Traders also look to the release of the Meeting Minutes from the Reserve Bank of Australia and the Bank of Japan, following their respective policy decisions this month. Central Bank speakers are also out in force this week, with Fed Chair Jerome and ECB President Mario Draghi delivering scheduled speeches to investors.
Monday 18th June, EU ECB President Mario Draghi Speech
The European Central Bank President Mario Draghi will deliver the opening remarks at ECB Forum on Central Banking in Sintra, Portugal. Market participants will pay close attention to ECB President Draghi’s words after he delivered a dovish Monetary Policy speech at last week’s ECB press conference.
- The EURUSD pair is bearish while trading below the 1.1615 level, further losses towards 1.1510 and 1.1425 remains possible.
- If the EURUSD pair moves above the 1.1615 level, we may see a correction back towards the 1.1680 and 1.1730 levels.
Tuesday 19th June, AUD RBA Meeting Minutes
The minutes of the Reserve Bank of Australia meetings are published two weeks after the RBA interest rate decision. The minutes give a full account of the policy discussion, including differences of view and the record the votes of the individual members of the Committee. Investors will watch the RBA Meeting Minutes release closely after RBA Governor Lowe stated that Australian interest rates would be moving up rather down in the future.
- The AUDUSD pair is bearish while trading below the 0.7510 level, sellers may now test towards the 0.7380 and 0.7230 levels.
- If the AUDUSD pair moves above the 0.7510 level, buyers may test towards the 0.7550 and 0.7588 levels.
Wednesday 20th June, NZD Q1 GDP
First Quarter Gross Domestic Product represents the official measure of economic growth inside the New Zealand economy for the first three months of the new calendar year. GDP measures the value of all goods and services produced in New Zealand over a specified time. GDP can be deducted using three different approaches, the production approach, the expenditure approach, and the income approach.
- The NZDUSD pair is bearish while trading below the 0.6975 level, further downside towards 0.6850 and 0.6737 seems likely.
- If the NZDUSD pair moves above the 0.6975 level, buyers are likely to test towards the 0.7000 and 0.7055 resistance levels.
Thursday 21st June, CHF SNB Interest Rate Decision
The Swiss National Bank conducts the country’s monetary policy as an independent central bank. It is obliged by the Swiss Constitution and by statute to act in accordance with the interests of the country as a whole. Its primary goal is to ensure price stability while taking due account of economic developments. In so doing, it creates an appropriate environment for economic growth.
- The USDCHF pair is bullish while trading above the 0.9893 level, further upside towards 1.0039 and 1.0100 levels seems possible.
- If the USDCHF pair moves below the 0.9893 level, sellers may start to test towards the 0.9840 and 0.9785 levels.
Friday 22nd, June, CAD Canadian Consumer Price Inflation
The Canadian Consumer Price Index is released by the Statistics Canada, and measure the change in the price of goods and services from the perspective of the consumer. It is the most important indicator of inflation in Canada, as a strong increase of CPI can stimulate the central bank to raise interest rates to manage inflation and slow economic growth. Large rises in CPI in a short period indicates periods of inflation and large decreases in CPI during a short usually mark periods of deflation.
- The USDCAD pair is bullish while trading above the 1.3123 level, further upside towards 1.3265 and 1.3320 remains possible.
- If the USDCAD pair declines below the 1.3123 level, sellers may test back towards the 1.3065 and 1.3000 support regions.