“Inflation data misses estimates for the UK and Europe.”

The Pound fell sharply on Wednesday after weaker than expected March inflation data was released. The Market expected March CPI in the UK to be 0.3%, however, the data showed just a rise of 0.1% so traders sold off the Pound in the short term. Euro Zone inflation data also slipped below the market’s expectations for March with a year on year reading of 1.3% vs the 1.4% the market was expecting. Neither of these data numbers is going to change the view of economists, investment banks and hedge funds that the Bank of England will likely raise its official cash rate in coming months. Yes, there was a short-term dip on the Pound, however, the rally’s when they happen off key support areas should still be considered buying opportunities under the current market expectations.

The Bank of Canada left its official cash rate unchanged on Wednesday and did not give any forward guidance as to when it will again raise rates. The market was expecting a more bullish statement from the BOC and when the statement was digested traders exited long CAD positions forcing the currency back lower. I issued a Trade Time alert on Wednesday evening advising that leaving a trade in the market with such profit on the table right in front of a Bank of Canada statement was not a good idea and taking profit was the responsible thing to do.

On the economic data from today, New Zealand’s latest quarterly inflation numbers met the market’s estimates when released this morning. Australia’s March unemployment figures are set for release at 11.30am AEST and the data has the potential to move the AUD half a cent or more in the short term. The official unemployment rate in Australia is currently 5.5% and a surprise rise or dip in the unemployment rate will see traders buy up or sell off the local currency. Please do not attempt to trade high impacting news announcements and leave this sort of trading to investment banks and hedge funds who have Bloomberg Terminals and get the data around a second before everyone else and can position their trades quickly. Novice traders lose huge amounts of money attempting to trade news-driven events and it’s a very low probability game for novice traders and should be left to seasoned experienced professionals.

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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The post Today’s Key Market Drivers: 19th April 2018 appeared first on LTG GoldRock.