FX + ECONOMY | EVENT - WEEKLY PREVIEW | KW03 |
In today's article, we will go into all the important events,
which are scheduled in the economic calendar, for the next week.
> Calendar week | 03 - - - 16. January 2023 – 20. January 2023
Let's briefly discuss what the listed events mean for your personal trading.
> When you want to trade a currency pair, you should always be careful that you do not accidentally get into an "event".
> These events can end in random volatility, which technical analysis does not respect, and therefore a possible loss.
> A strategy of "Market-Makers" is to liquidate both sides (short | long) to the event and then continue the participated direction.
MONDAY
> CAD | 10:30 p.m. | BOC = Business Outlook Survey
TUESDAY
> GBP | 02:00 a.m. | Employment change + unemployment rate
> EUR | 05:00 a.m. | GER Harmonized Index of Consumer Prices
> CAD | 08:30 a.m. | CPI = Consumer Price Index
> USD | 08:30 a.m. | Change in manufacturing index
WEDNESDAY
> GBP | 02:00 a.m. | CPI = Consumer Price Index
> USD | 08:30 a.m. | Retail Sales
> AUD | 07:30 p.m. | Employment change + unemployment rate
THURSDAY
> Nothing to relevant
FRIDAY
> CAD | 08:30 a.m. | Retail sales
Wednesday will be among certainly the most volatile, with the release of the American "retail sales", at 08:30.
MARKET INFLUENCE
Each of these dates, leads in the respective currency pair, to high / moderate volatility.
> Events that make the overall market volatile are mostly related to the USD.
= This is due to the fact that the USD has a position as an indirect world currency through global acceptance and thus has significant influence on the other currency pairs / economy.
To use an example to explain the influence of the USD on other currency pairs, let's look at the DXY (USD index).
The DXY is composed of the pairs:
EUR (57.6%), JPY (13.6%), GBP (11.9%), CAD (9.1%), SEC (4.2%) + CHF (3.6%)
When a positive metric is published for the USD = its value rises.
= The pressure on the currencies in the DXY basket increases.
= Thus they are "negatively" valued by traders.
= Sell-off
In summary, the higher the country's opinion on the global economy, the greater impact it takes on the overall market.
> Feel free to share in the comments, about the impact of this week's appointments.
> Sharing your perspective allows each of us to improve.
If this explanation has added value to you, I would be very happy to receive a rating.
Thank you and happy trading!
ZIEL IST DIE AUTARKIE | THE GOAL IS SELF-SUFFICIENCY
which are scheduled in the economic calendar, for the next week.
> Calendar week | 03 - - - 16. January 2023 – 20. January 2023
Let's briefly discuss what the listed events mean for your personal trading.
> When you want to trade a currency pair, you should always be careful that you do not accidentally get into an "event".
> These events can end in random volatility, which technical analysis does not respect, and therefore a possible loss.
> A strategy of "Market-Makers" is to liquidate both sides (short | long) to the event and then continue the participated direction.
MONDAY
> CAD | 10:30 p.m. | BOC = Business Outlook Survey
TUESDAY
> GBP | 02:00 a.m. | Employment change + unemployment rate
> EUR | 05:00 a.m. | GER Harmonized Index of Consumer Prices
> CAD | 08:30 a.m. | CPI = Consumer Price Index
> USD | 08:30 a.m. | Change in manufacturing index
WEDNESDAY
> GBP | 02:00 a.m. | CPI = Consumer Price Index
> USD | 08:30 a.m. | Retail Sales
> AUD | 07:30 p.m. | Employment change + unemployment rate
THURSDAY
> Nothing to relevant
FRIDAY
> CAD | 08:30 a.m. | Retail sales
Wednesday will be among certainly the most volatile, with the release of the American "retail sales", at 08:30.
MARKET INFLUENCE
Each of these dates, leads in the respective currency pair, to high / moderate volatility.
> Events that make the overall market volatile are mostly related to the USD.
= This is due to the fact that the USD has a position as an indirect world currency through global acceptance and thus has significant influence on the other currency pairs / economy.
To use an example to explain the influence of the USD on other currency pairs, let's look at the DXY (USD index).
The DXY is composed of the pairs:
EUR (57.6%), JPY (13.6%), GBP (11.9%), CAD (9.1%), SEC (4.2%) + CHF (3.6%)
When a positive metric is published for the USD = its value rises.
= The pressure on the currencies in the DXY basket increases.
= Thus they are "negatively" valued by traders.
= Sell-off
In summary, the higher the country's opinion on the global economy, the greater impact it takes on the overall market.
> Feel free to share in the comments, about the impact of this week's appointments.
> Sharing your perspective allows each of us to improve.
If this explanation has added value to you, I would be very happy to receive a rating.
Thank you and happy trading!
ZIEL IST DIE AUTARKIE | THE GOAL IS SELF-SUFFICIENCY
