by Ntombi Malatsi | Jan 20, 2019 | ECONOMIC NEWS
About European Central Bank (ECB)
Bank Rate: 0.00%
President : Mario Draghi
Headquarters: Frankfurt , Germany
ECB’s President Mario Draghi started to serve as a President since November 2011 and previously served as the Governor of Bank of Italy from 2005 to 2011. He was also a Chairman of the Financial Stability Board from 2009 to 2011.
What is European Central Bank ECB?
ECB is the Central Bank for the EURO and it administers Monetary Policy of the Euro Zone, which consists of 19 E.U member states. European Central Bank (ECB) press conference is held 8 times a year about 45 minutes after the Interest Rates decision is announced. It is also called the Interest Rate Statement. The conference is about an hour long and has two parts. First part is when the actual statement is read and the second part is opened for questions which then lead to the market volatility.
What are the tasks and objections of European Central Bank?
The tasks are to maintain Monetary Policy for the Euro, including the banking supervision. Their main objective is to maintain the price stability and to safeguard the value of Euro.
Why is the European Central Bank statement important?
It is the leading indicator that provides the clues about the future Monetary Policy. High Volatility is often expected during the press conference and it has a direct impact on Euro pairs (I know for sure that my mentees and I are always looking forward to this one).
It’s been a while since ECB made some changes on their Interest Rates. The last time they changed was on March 2016 when they cut their Interest Rates from 0.05% down to 0.00%. Again on the 24th of January, they are expect to hold steady at 0.00%. The main focus is on what they are going to do next. Trading the Interest Rates is not only about the actual figures, but a lot more about the Central Bank’s next move on their Rates. We look out for either a hawkish or a dovish statement.
As promised, I will be publishing all significant economic news and provide their annual schedule for proper planning. Thank you for stopping by. Below is the European Central Bank’s annual schedule. Please kindly share this post.
by Ntombi Malatsi | Jan 13, 2019 | ECONOMIC NEWS
Economic News To Watch This Week
It’s going to be a hectic week for GBP. Parliament will vote for Theresa May’s Brexit deal on Tuesday. The expected outcome is “Reject”. If the deal is rejected, we might see a crazy fall on GBP. I am so looking forward to the votes. I will be watching the polls closely as the markets are likely to react to the polls. Below is the economic calendar.
by Ntombi Malatsi | Jan 13, 2019 | ECONOMIC NEWS
What is Consumer Price Index?
Consumer Price Index (CPI) is the most watched economic indicator. It is calculated then released by the Bureau of Labor Statistics, which is part of the Department of Labor. Consumer Price Index accounts for the majority of overall inflation. Inflation is important to currency evaluation.
Planning is very important to me. We are still on planning ahead for 2019. As promised, here is the Consumer Price Index 2019 dates for the United Kingdom. If you missed my previous posts, you can check Non Farm Payrolls 2019 dates HERE and Bank Of Canada Interest Rates 2019 dates HERE. Below is the Consumer Price Index 2019 dates for the United Kingdom.
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by Ntombi Malatsi | Jan 6, 2019 | ECONOMIC NEWS
Economic news to watch this week
by Ntombi Malatsi | Jan 5, 2019 | ECONOMIC NEWS
What is Bank of Canada?
Bank Of Canada (BOC) is the Central Bank in Canada.
Central bank is a national bank that provides financial and banking services for its country’s government and commercial banking system.
What is the role and function of a Central Bank?
- To set official bank rates used to manage inflation and exchange rates
- To issue a country’s currency
- To set targets and monitor economic data while they implement special tools.
Bank Of Canada is expected to hike their Interest Rates by 25 Basis Points from the current 1.75%. The last time they hiked their Interest Rates was on the 24th of October 2018. Bank Of Canada’s Interest Rates meetings are scheduled 8 times a year. The first one of 2019 is on the 9th of January.
I do better in my trading when I am more organized. Knowing when the important economic data is released, helps me a lot with planning ahead (I hate randomness). I will be publishing all significant economic data releases like Non Farm Payrolls, GDP,Retail Sales, Interest Rates etc, and their dates. I have started with Non Farm Payrolls, you can check the annual schedule HERE. Below is the annual schedule for Bank Of Canada’s Interest Rates meetings.
by Ntombi Malatsi | Jan 2, 2019 | ECONOMIC NEWS
Non Farm Payrolls 2019 Dates
Hello readers, welcome back. It’s a new year, new vision & improved discipline (hopefully so) for some traders who closed their trading books on a negative in 2018 because of a lack of self control. The good thing is, 2019 is giving you another chance to do better, you can always do better as long as you are willing.
What is Non Farm Payrolls?
Non-Farm Payrolls also known as U.S Employment change/NFP is one of the leading indicators in the Forex market. NFP focuses on the number of jobs that are created or lost in the current month, and that excludes farm/agricultural workers hence the name Non-Farm Payrolls. We (traders) look for that small change or shift in the figure released as compared to the previous month. Because NFP is released every first Friday of each month, there are previous and also forecast/expected figures. When the figure comes out above forecast, it means more jobs were created (excluding farm workers) and the market perceives that as good for currency involved (USD), and when it comes out below forecast, the opposite is perceived. There are other factors to be considered during NFP, it is not just about the figures. NFP is the most watched economic event of the month. During this period, the market becomes too volatile. NFP is also a leading indicator in determining the U.S economic growth and inflation
We are kick starting our year with U.S Non Farm Payrolls stats which will be released on the 4th of January. I am still trying to gear up for a new year. I hope I will feel less festive after this first publication, I am still a bit hung up on the holidays. I am re-opening on the 15th of January for private lessons & mentorship, see detailed information and enrollment information HERE. Below is the annual schedule for Non Farm Payrolls.
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