Forex News Trading Strategy for the 8th – 12th of August
This week is a lighter week in terms of data events, however there are still a few key releases we can look to for opportunities.
China reports key economic data for July including merchandise trade balance, consumer and producer price indexes, industrial production and retail sales.
UK Manufacturing Production and Merchandise Trade data will be released on Tuesday. This data is pre-Brexit and will likely have a limited effect on the pound.
The main event for the week will be on Wednesday when the Reserve Bank of New Zealand announces their rate decision. The central bank is expected to cut the official cash rate by 25 bps to 2.00%. We do believe this is largely priced into the market after the very dovish intra-meeting economic assessment, as well as the introduction of macro- prudential measures seen as paving the way for this monetary policy action. The tone of the statement and press conference will likely be the key driver of the NZD.
Thursday we will also hear from RBNZ Gov. Wheeler when he testifies on the Monetary Policy Statement before the Finance and Expenditure Select Committee.
Also on Thursday, capping a busy week for the kiwi, we will see the latest New Zealand Retail Sales figures for the quarter which could feed into the sentiment following the RBNZ results and Gov. Wheeler’s testimony.
We finish off the week on Friday with the EZ and German Flash GDP’s for the quarter during London, followed by US Retail Sales, PPI, and Consumer Sentiment figures.
Other Forex news trading events taking place this week can be found here: Forex Factory Calendar.