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Important Forex News On 20 December 2016 | Forexing24

Important Forex News On 20 December 2016 | Forexing24

Important Forex News On 20 December 2016 | Forexing24

Important Forex News: Fed Chair Yellen Speaks

Currency NameNews Name     Actual   Forecast  Previous
USDFed Chair Yellen Speaks
SourceLatest Release
MeasureDue to speak about the state of the job market at the University of Baltimore’s Midyear Commencement;
Usual EffectFederal Reserve Chair Janet Yellen;
FrequencyMore hawkish than expected = Good for currency;
Why Trade CareAs head of the central bank, which controls short term interest rates, she has more influence over the nation’s currency value than any other person. Traders scrutinize her public engagements as they are often used to drop subtle clues regarding future monetary policy;
FF NotesFed Chair Feb 2014 – Feb 2018. Fed Governor Oct 2010 – Jan 2024. Volatility is often experienced during her speeches as traders attempt to decipher interest rate clues;

BOJ Policy Rate

Currency NameNews Name     Actual   Forecast  Previous
JPYBOJ Policy Rate-0.10%-0.10%-0.10%
SourceLatest Release
MeasureInterest rate levied on excess current account balances held at the BOJ;
Usual EffectActual > Forecast = Good for currency;
FrequencyScheduled 8 times per year;
Why Trade CareShort term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future;
Derived ViaBOJ Policy Board members come to a consensus on where to set the rate;

Important Forex News: GDT Price Index

Currency NameNews Name     Actual   Forecast  Previous
GDT Price Index
SourceLatest Release
MeasureChange in the average price of dairy products sold at auction;
Usual EffectActual > Forecast = Good for currency;
FrequencyIt’s a leading indicator of the nation’s trade balance with other countries because rising commodity prices boost export income;
Why Trade CareThe weighted-average price of the 9 dairy products sold at auction are sampled and then compared to the previous sampling;
Derived ViaSource does not give an exact release time – this event will be listed as ‘Tentative’ until the data is released. Source changed release frequency from monthly to twice per month as of Sep 2010;

Monetary Policy Statement

Currency NameNews Name     Actual   Forecast  Previous
JPYMonetary Policy Statement
SourceLatest Release
MeasureMore hawkish than expected = Good for currency;
Usual EffectScheduled 8 times per year;
FF NotesSource does not give an exact release time – the event will be listed as ‘Tentative’ until the statement is issued. Source first released in Jul 2008. Source changed release frequency from about 14 times per year to eight times per year as of Jan 2016;
Why Trade CareIt’s among the primary tools the BOJ uses to communicate with investors about monetary policy. It contains the outcome of their decision on asset purchases and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future votes;
Derived ViaInterest Rate Statement;

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Saimon Akash

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