A 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.
One of the special tools that a Central Bank usesis Interest/bank rate adjustments. When a Central Bank sees a need to hike or cut its rates, they do as they see fit.
Why do Central Banks hike the Interest Rates?
When the economy is growing at a rate that may lead to hyperinflation (monetary inflation occurring at a very high rate) that is when the Central Bank hikes the county’s interest rate.
Why do Central Banks cut the Interest Rates?
Central banks may cut the Interest Rates to encourage people to borrow more money at a lower rate, be it for new houses or businesses. The aim is to make saving money less attractive as the returns are lower when the rates are cut. The other reason is to make the country’s currency expensive and to encourage the citizens to buy local goods.
About the Reserve Bank of Australia (RBA)
The Reserve Bank of Australia releases its interest rates 8 times a year, excluding January. On February 6th, the RBA had its first meeting of the year. On June 18th, they held their 4th meeting and kept the interest rates at 4.35%.
Why Do We (traders) Care About Interest Rates?
Interest rates are a primary tool that a central bank uses to evaluate its currency. If the plan is to hike, it strengthens the currency, and if the plan is to cut, it weakens the currency.
Below are the RBA ’s 2024 dates to help you plan your year better. Thank you for stopping by. Please help me reach as many traders as possible by sharing this post. Should you wish to learn how to trade the Interest Rates, you can check my fundamental analysis course.
Hello Subscriber, If you are not a subscriber, please subscribe to receive notifications on weekly economic news and other publications. This week we have 21 major economic releases with the Federal Reserve Bank (FED) deciding on its Interest Rates, FOMCissuing the Monetary Policy Statement ,and holding a press conference on the 1st of May. We are closing off our week with the U.S Non-Farm Payrolls on the 3rd of May.
Always understand that the markets do not move randomly, they are affected by such economic news. Incorporating fundamentals into your day trading helps you plan your trading week, spend less time studying charts day and night, and be able to trade while having your 9-5 job, school, or a business. I have published an episode on my podcast titled “Why you shouldn’t ignore fundamentals” You can listen HERE.
If you live in South Africa, you are aware that we are facing a big challenge with our electricity and have daily load-shedding. During load-shedding, the network gets affected and we sometimes experience a very slow internet connection.
When you have incorporated fundamentals, you can also plan around it and ensure that you don’t schedule any trading sessions during that time. This is to avoid a situation where you find yourself stuck in trades. If you have been trading but only relying on technical analysis and wish to start incorporating fundamentals and to learn how the markets work, enroll for my Fundamental Analysis Course, mentorship, and coaching.
Thank you for stopping by. You can check out my latest Podcast Episode and also download My App and read on the go. Kindly share this post with your peers. Below is our weekly economic calendar.
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.
What Does Consumer Price Index measure?
It measures the change in price of goods and services purchased by the consumers excluding investment items such as stocks, bonds, real estates and life insurances. In short, Consumer Price Index measures the cost of living.
Why Do We (traders) Care?
Consumer Price Index accounts for the majority of overall inflation. Inflation is important to currency evaluation. If the stats are good, they are considered as good for the U.S Dollar which is likely to strengthen as a result and weakens when the stats are less than expected, it is not as straight forward as it sounds though. U.S CPI also impacts the U.S stocks.
Check out my fundamental analysis course should you wish to learn how to trade CPI and how it affects stocks. Thank you for stopping by. Below are the U.SConsumer Price Index dates 2024.
Hello Subscriber, If you are not a subscriber, please subscribe to receive notifications on weekly economic news and other publications. This week we have 11 major economic releases with the Reserve Bank of Australia (RBA) deciding on its Interest Rates, issuing the Monetary Policy Statement, and holding a press conference.
Always understand that the markets do not move randomly, they are affected by such economic news. Incorporating fundamentals into your day trading helps you plan your trading week, spend less time studying charts day and night, and be able to trade while having your 9-5 job, school, or a business. I have published an episode on my podcast titled “Why you shouldn’t ignore fundamentals” You can listen HERE.
If you live in South Africa, you are aware that we are facing a big challenge with our electricity and have daily load-shedding. During load-shedding, the network gets affected and we sometimes experience a very slow internet connection.
When you have incorporated fundamentals, you can also plan around it and ensure that you don’t schedule any trading sessions during that time. This is to avoid a situation where you find yourself stuck in trades. If you have been trading but only relying on technical analysis and wish to start incorporating fundamentals and to learn how the markets work, WhatsApp +27 78 144 6851 to enroll for my fundamental analysis course, mentorship, and coaching.
Thank you for stopping by. You can check out my latest Podcast Episode and also download my App and read on the go. Kindly share this post with your peers. Below is our weekly economic calendar.
Federal Open Market Committee (FOMC) is a committee within the Federal Reserve System (the Fed). Its mandate is to oversee the nation’s open market operations (i.e. the Fed’s buying and selling of United States Treasury securities). This Federal Reserve committee makes key decisions about Interest Rates and the growth of the United States money supply. Interest rates are very important in currency evaluation. Read more about Central Banks and Interest Rates HERE.
On the 31st of January, FOMC will hold its first Monetary Policy meeting of 2024 where they are expected to maintain the Interest Rates at the current rate of 5.50%. Planning is key, save these dates to make your trading year more organized. I have published 2 episodes on my podcast about planning for the 2024 trading year, you can LISTEN here and why I do not ignore fundamentals in my trading, LISTEN here.
Below are the FOMC 2024 dates. Kindly share this post with anyone who may need this information. You can also subscribe to this blog for notifications on new blog posts. To read on the go, download the App on Google Playstore. For private lessons on how to trade FOMC, check my fundamental analysis course HERE or WhatsApp at +27 78 144 6851. Thank you for stopping by. Happy trading.
ECB’sChristine Madeleine Odette Lagardeis a French politician and lawyer who has served as President of the European Central Bank since 2019. She succeeded Mario Draghi who started acting as a President in November 2011 and previously served as the Governor of the Bank of Italy from 2005 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. 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 RateStatement. 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 the 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).
Today at 3:15pm (S.A time) ECB is expected to maintain its Interest Rates at the current rate of 4.50% issue the monetary policy statement followed by the press conference at 3:45pm. The main focus is on their future plans. 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. For more on Central Banks and why they hike, maintain or cut Interest Rates, read THIS POST.
Planning is key and trading fundamentals allow us to plan for our trades. or proper planning. Below is the European Central Bank’s annual schedule. Thank you for stopping by. Please kindly share this post and invite more people to download this app for future updates.
Should you wish to incorporate fundamentals into your technical strategy, WhatsApp me at +27 78 144 6851 for private lessons, mentorship, and coaching, or register HERE? Listen to the “Why you should NOT ignore fundamentals” Podcast Episode. Don’t forget to subscribe for future publications. Happy trading.
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