Daily Forex Forecast Mar 06 2014

0
161

Hello traders , here’s news which could move the currency markets on Thursday the 6th of March:

1-BOE Interest Rate Decision at 12:00 GMT .Bank of England (BOE) monetary policy committee members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation. The (BOE) is expected to leave the rate unchanged at 0.5%.

Market Impact:

  • A higher than expected rate is positive/bullish for the GBP.
  • A lower than expected rate is negative/bearish for the GBP.
  • Leaving the rate unchanged is neutral with bullish bias for the GBP.

2-  ECB Interest Rate Decision at 12:45 GMT .The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation. The (ُECB) is expected to leave the rate unchanged at 0.25%.

Market Impact:

  • A higher than expected rate is positive/bullish for the EUR.
  • A lower than expected rate is negative/bearish for the EUR.
  • Leaving the rate unchanged is neutral with bullish bias for the EUR.

3-ECB Press Conference at 13:30 .The European Central Bank (ECB) press conference is held monthly, about 45 minutes after the Minimum Bid Rate is announced,It has two parts. Firstly, a prepared statement is read, then the conference is open to press questions,the press conference examines the factors which affected the ECB’s interest rate decision and deals with the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy, high levels of volatility can frequently be observed during the press conference as press questions lead to unscripted answers.

4- US Initial Jobless Claims at 13:30 GMT . Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.Last week was 348 K , this week expected to make a small decline to 338K .

Market Impact:

  • Within expectations between 300K – 350K will bring sideways move for the USD.
  • A higher than expected reading( above 350K) should be taken as negative/bearish for the USD.
  • A lower than expected reading (below 300K) should be taken as positive/bullish for the USD.

5- Canadian Ivey PMI at 15:00 GMT.The Ivey Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in Canada. A reading above 50 indicates expansion; a reading below 50 indicates contraction. The index is a joint project of the Purchasing Management Association of Canada and the Richard Ivey School of Business. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.Last read was 56.8 , today is expected to be 53.8

Market Impact :

  • Within expectations between 53.0 – 57.0 will bring sideways move for the CAD.
  • Between 50.0-53.0 will bring small decline for the CAD.
  • Below 50.0 will bring strong bearish move for the CAD
  • Between 57.0 – 60.0 will bring small rise for the CAD.
  • Above 60.0 will bring strong bullish move for the CAD.

We’ll be back with our next overview of key events for Friday,Goodbye..

MARKET DATA

UPCOMING ECONOMIC EVENTS