weekly-market-report-analysis

What happened in financial markets recently?

Here are 5 main market events that significantly affected international Forex and Commodity markets.

Know the event and start your week with good insight!

1. Eurozone’s GDP growing faster

Eurozone’s quarterly GDP estimates were released last week.

Data showed that growth nearly doubled in the first three months of the year, comparing to the last quarter of 2018.

Data from Eurostat showed that Eurozone’s GDP grew at a pace of 0.4%, beating estimates of a 0.3% increase.

In the previous quarter, growth rose 0.2%.

The pace of growth was the strongest since the second quarter of 2018.

In a separate report, Eurostat reported that the Eurozone’s jobless rate fell to 7.7% from 7.8% in March. This was the lowest level since September 2008.

2. New Zealand unemployment rate fell

New Zealand’s quarterly employment data was released last week.

Data from Statistics New Zealand showed that the official unemployment rate fell to 4.2% in the first three months of the year.

This was in line with the median estimates.

In the last quarter of 2018, New Zealand’s unemployment rate rose to 4.3%.

Despite the unemployment rate improving, the quarterly employment change report disappointed.

Data showed that on the quarter, overall employment was down 0.2% missing expectations of a 0.5% increase.

On a year over year basis, employment rose 1.5% but missed estimates of a 2.2% increase.

3. Canada GDP down despite the expectation

Canada’s economy was seen contracting in the month of February.

Data from Statistics Canada showed that the GDP was down 0.1% in February.

This missed the median expectations of a 0.1% increase.

The declines came due to weak activity from the mining, quarrying, oil and gas exploration.

The sectors continued to decline for the sixth consecutive month.

The declines in the GDP for February comes after Canada’s GDP rose 0.3% in January.

4. Fed interest rates unchanged at 2.50%

The U.S. Federal Reserve held its monetary policy meeting last week on Wednesday.

As widely expected, the central bank left the key interest rates unchanged at 2.50%.

The Fed’s forward guidance was however seen to be not as dovish as the markets expected. The Fed noted that the inflation which remains weak at the moment was only transitory and expects to see inflation pick up later in the year.

The central bank also acknowledged that the labor market continued to remain solid.

5. U.S. unemployment rate fell

The official payrolls report for April was released on Friday.

Official data showed that the U.S. unemployment rate fell to new historic lows of 3.6%.

This was in contrast to the median estimates which showed that the unemployment rate could remain steady at 3.8%.

The U.S. economy was seen adding 236,000 jobs in April.

This was again higher than the estimates of 181,000.

The payrolls for March were revised down from 196k to 189k.

The average hourly earnings rose at a pace of 0.2%, making it a 3.2% increase on a year over year basis.

The hourly earnings for March were revised higher to show a 0.2% increase compared to the initial reports of a 0.1% increase.

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4 Upcoming Important Market Events of the week

What investors should be focusing on this week?

Here are 4 important economic events and news to follow market trends.

1. Australia monetary policy meeting

The Reserve Bank of Australia will be holding its monetary policy meeting this week on Tuesday.

After keeping interest rates unchanged at 1.50% for over two years, the RBA is widely expected to cut rates at this week’s meeting.

Interest rates are expected to be lowered by 25 basis points, bringing the official rate to 1.25%.

This would mark a continuation to the long term continued rate cuts from the RBA.

2. New Zealand monetary policy meeting

The Reserve Bank of New Zealand will be the next central bank to hold its monetary policy meeting.

The RBNZ’s monetary policy meeting is due early Wednesday.

No changes are expected the RBNZ as the official cash rate is expected to remain steady at 1.75%.

But the recent declines in the economy such as lower GDP growth and inflation below the RBNZ’s 2% – 3% target band could lead the central bank to potentially deliver a surprise.

The markets are currently assigning a near 50% chance of a rate cut this week.

Given the fact that the RBNZ, at its meeting in March signaled that there was a higher probably for a rate cut than a rate hike, investors will be closely watching the news from the central bank.

3. UK Monthly GDP Figures

Data from the UK this week will focus on the GDP figures alongside industrial and manufacturing production figures.

The monthly GDP report will cover the three months ending March.

Growth is expected to remain flat for the reported period.

Besides the GDP numbers, the industrial production figures are expected to show a 0.2% increase compared to a 0.6% increase the month before.

Manufacturing production is expected to rise 0.1% which marks a slower pace of increase compared to a 0.9% gain previously.

4. Speech by Jerome Powell, Fed Chair

A slower week from the United States is expected this week.

The Fed Chair, Jerome Powell will be speaking at an event mid-week.

Investors will be closely watching Powell’s speech to gain more clarity on interest rates and monetary policy.

On the economic front, inflation report will be due this week on Friday.

Headline inflation is forecast to rise 0.4%, marking the same pace of increase as the month before.

Core inflation is forecast to rise 0.2%, up from 0.1% previously.

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