Key Trading News for today - 14.06

Key Trading News for today - 14.06

Wednesday will be likely the most important day this week as the calendar consists of many macroeconomic releases. The main event is the FED’s meeting, however, there are many readings besides that could potentially affect various assets.

  • 9:30 am BST - UK’s jobs report: Despite simmering political uncertainty surrounding the UK, the pound has performed quite well thus far this week. May’s CPI shored up the pound yesterday, and today’s jobs report could do the same. The consensuses point to the jobless rate to remain unchanged at 4.6% and an increase of jobless claims by 10k. However, the utmost reading will be wage date. There are concerns that real disposable income could be chipped away at higher inflation, for that reason changes of wages are so relevant. Expectations indicate 2% yoy and 2.4% yoy for weekly earnings ex bonuses and average weekly earnings respectively.
  • 1:30 pm BST - US CPI and retail sales: Even as the FED’s meeting is likely to draw most of investors’ attention there are two macro prints worth looking at today as well. Needless to say, today’s data won’t impact on the FED’s rate decision, they could adjust traders’ perception with regard to what to expect from Chair Janet Yellen this evening. Let us remind, the FED-preferred inflation gauge PCE still hovers below its objective. Although, CPI isn’t the same what the PCE both metrics are strongly correlated to each other. Expectations see increases in CPI by 2% yoy and 1.9% yoy in core CPI. In turn, retails sales’ anticipations are 0.1% mom and 0.2% mom for the headline and the ex-auto reading.
  • 3:30 pm BST - DoE crude oil stocks: The unexpected increase in oil stocks spelled out by the API yesterday was really bearish for oil prices. The US Department of Energy will unveil its weekly oil stocks change this afternoon, and if it points to another pick-up that could call into question a seasonal increase for fuel in the US. That scenario could be oil-bearish and OPEC might be forced to rethink its strategy. The consensus indicate a decline by 2.3 million barrels, markets’ expectations might be distorted a bit though due to the API’s release.
  • 7:00 pm BST - FED’s rate decision: There is no doubt the most important event to watch for today is the FED’s meeting. At the same time, there will be released rate decision, a statement and the so-called dot-chart (a chart depicting where each FED’s member see FED funds rate in a specific year), all the abovementioned should be scrutinized be investors. The street’s call suggests the FED should hike by 25 bps.
  • 7:30 pm BST - Janet Yellen’s press conference: After the release of many figures at 7:00 pm, there will be time for Janet Yellen to take her floor. As usual, each her word could exert pressure on the greenback and other correlated assets. The utmost will be what she’ll say about a recent streak of really disappointing data from the US.

The GBPUSD could be the main mover in the FX space as both UK’s data and a slew of financial events from the US could affect the pair. From a technical standpoint, one could expect the pair could continue its uptrend after the breakout of a key resistance zone. Source: xStation5

About Author

Our research team will provide all technical and fundamental news as well as all inside information coming from London's City desks to help investors trade fx and stock markets. Be sure that you already follow our twitter account @XMarketsuk in order to be up to date with all latest analysis, news and inside information.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. X Markets and XSpot. do not take into account your personal investment objectives or financial situation. X Markets and XSpot. make no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any member of X Markets Websites’ team, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of X Markets and XSpot. This communication must not be reproduced or further distributed without prior permission.

Risk Warning: Forex (FX) and Contracts for Difference (’CFDs’) are complex financial products that are traded on margin. Trading FX and CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, FX and CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Past performance of FX and CFDs is not a reliable indicator of future results. Most FX and CFDs have no set maturity date. Hence, a CFD position matures on the date you choose to close an existing open position. Seek independent advice.