This week, markets brace for key events, including interest rate releases from the Bank of England and Swiss National Bank. Traders are expected to monitor these crucial announcements to shape their strategies and gain insights into the financial landscape. Stay tuned for a round-up of significant market developments.
UK Consumer Price Index (21 June 2023)
UK’s CPI fell to 8.7% year-on-year in April 2023, the lowest since March 2022, due to a sharp slowdown in electricity and gas prices.
The next CPI data is set to be released on 21 June, with analysts expecting the index to drop further to 8.4%.
Swiss National Bank Rate Statement (22 June 2023)
The SNB raised its policy rate by 50 bps to 1.5% in its March meeting, following a similar move in December 2022.
Some analysts expect the next rate hike will be by another 50bps to 2.0%.
Bank of England Rate Statement (22 June 2023)
The BoE raised the bank rate by 25bps to 4.5% in May 2023, marking the twelfth consecutive rate increase.
Some analysts anticipate that the next rate hike will amount to an additional 25 bps, bringing the interest rate to 4.75%.
German, UK and US Flash Manufacturing PMI (23 June 2023)
In May 2023, Germany’s Manufacturing PMI rose slightly to 43.2 but remained at a three-year low, while the UK’s and US’s PMIs dropped to 47.1 and 48.4, respectively.
Analysts predict Manufacturing PMIs for June 2023 as follows: Germany at 43, the UK at 46.5, and the US at 49.7.
German, UK and US Flash Services PMI (23 June 2023)
In May 2023, US Services PMI dipped to 54.9 but remained robust since April 2022, while Germany’s hit a year-high of 57.2. The UK’s reached 55.2, marking four months of growth.
Analysts predict Services PMIs for June 2023 as follows: Germany at 57.5, the UK at 54.4, and the US at 53.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
In the week ahead, market participants will be closely monitoring several vital economic events, including interest rate decisions by major central banks and the release of US Producer Price Index (PPI) and Consumer Price Index (CPI) data.
Market watchers and financial experts are expected to pay close attention to these releases, eager to understand their potential impact on financial markets and the global economy as a whole.
US Consumer Price Index (13 June 2023)
US CPI rose 0.4% month-over-month in April 2023, higher than the 0.1% increase seen in March.
Analysts anticipate a 0.3% rise for May data, scheduled for release on 13 June 2023.
US Producer Price Index (14 June 2023)
Producer prices for final demand in the US increased 0.2% month-over-month in April 2023, following a downwardly revised 0.4% drop in March.
For May 2023 data, set to be released on 14 June 2023, analysts expect a 0.1% increase.
US FOMC Meeting Minutes (14 June 2023)
During its May meeting, the Fed increased the Fed funds rate by 25bps, reaching a range of 5%-5.25%. This marks the 10th hike, setting borrowing costs at their highest since September 2007.
For the upcoming meeting on 14 June 2023, analysts forecast that the Fed will hold the rate steady at 5.25%.
Australia Employment Change (15 June 2023)
In April 2023, Australia’s employment saw an unanticipated drop of 4,300, bringing the total to 13.88 million. The unemployment rate increased unexpectedly to 3.7%.
Data for May 2023 is scheduled for release on 15 June 2023, and analysts predict a 20,000 rise in employment with the unemployment rate staying at 3.7%.
European Central Bank Main Refinancing Rate (15 June 2023)
During its May meeting, the ECB raised its key interest rates by 25 bps to 3.75%, signalling a slower pace of policy tightening. In a press conference, President Lagarde mentioned that the ECB still had progress to make and did not intend to halt the cycle of rate increases soon.
Analysts anticipate that for June, the central will increase its interest rates by 25 bps to 4.0%.
US Retail Sales (15 June 2023)
Retail sales in the US increased 0.4% month-on-month in April 2023, rebounding from two consecutive months of declines.
For May 2023 data, which will be released on 15 June, analysts expect a 0.5% increase.
BOJ Rate Statement (16 June 2023)
In April, the Bank of Japan unanimously voted to maintain its key short-term interest rate at -0.1% and 10-year bond yields at around 0%. They also altered guidance on their policy rate by removing references to guarding against risks from the COVID pandemic and maintaining interest rates at “current or lower levels.”
Analysts predict that for June, the rate will remain unchanged.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
In the week ahead, market participants will turn their attention to key economic events including the US ISM Services PMI, as well as rate statements from the Reserve Bank of Australia (RBA) and the Bank of Canada (BOC). As analysts make their predictions, all eyes will be on these releases to understand their potential impact on financial markets
Switzerland’s Consumer Price Index (5 June 2023)
Consumer prices in Switzerland stalled in April 2023, showing less growth than the 0.2% rise observed in March 2023.
For May 2023 data, which is set to be released on 5 June 2023, analysts expect a 0.1% increase.
US ISM Services PMI (5 June 2023)
The US ISM Services PMI increased to 51.9 in April 2023 from 51.2 in March 2023.
Data for May 2023 is scheduled for release on 5 June 2023, with analysts anticipating a higher figure of 52.1.
Reserve Bank of Australia Rate Statement (6 June 2023)
In a surprising move, the Reserve Bank of Australia raised its cash rate by 25bps to 3.85% in May 2023, after keeping it at 3.6% in April 2023. This marks the 11th time the bank has increased rates in the past year.
The next cash rate will be released on 6 June 2023, with analysts expecting the RBA to hold its interest rate at 3.85%.
Bank of Canada Rate Statement (7 June 2023)
In its April 2023 meeting, the Bank of Canada (BOC) kept the target for its overnight rate unchanged at 4.5% and stated that it would continue to monitor the latest economic data for future decisions on the policy rate.
The next rate statement will be released on 7 June 2023. Analysts anticipate that the BOC will keep its interest rate steady at 4.5%.
Canada Employment Change (9 June 2023)
Canada’s economy added 41,400 jobs in April 2023 due to increased part-time work, the first growth since October 2022. The unemployment rate stayed at 5% for the fifth month, near the record-low of 4.9%.
For May 2023 data, set to be released on 9 June 2023, analysts predict that job creation will dip to 40,000 and the unemployment rate will rise to 5.1%.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Sydney, Australia, 29 May 2023 – VT Markets, a leading online broker, today announced a record number of new trading accounts secured within the LATAM region. Following its formal entry into Latin America last year, the company has seen a rapid growth in regional clients, reflecting both the LATAM market’s burgeoning potential and the success of ongoing outreach efforts.
Of these efforts, a notable highlight has been VT Market’s recent participation at Money Expo Mexico 2023. Held from 24–25 May 2023, the much-anticipated event saw VT Markets gain thousands of new account sign-ups, consolidating its growing influence both in and around the country.
Responding to the promising trajectory evident thus far, a VT Markets representative stated: “We are delighted to be making such clear inroads into one of our key strategic markets. With the numerous developments taking place in the region, Latin America is uniquely poised for explosive growth, and we want to be at the forefront of the new financial landscape when it emerges.”
Moving forward, VT Markets looks set to continue its expansion throughout LATAM and beyond. With offices already established across Europe, Asia, and the Middle East, the company’s initiatives in the upcoming quarter are expected to amplify its international presence, further reinforcing its status as a truly global broker.
About the Company:
VT Markets is a regulated multi-asset broker with a presence in over 160 countries. Since its inception in 2015, the company has set out to make trading a simple and more accessible experience for everyone. As of today, VT Markets has emerged as one of the world’s top brokers, recently adding a haul of seven awards to its growing list of accolades.
For more information, please visit the official VT Markets website. Alternatively, follow VT Markets on Meta, Instagram, or LinkedIn.
This week’s key economic indicators, including the US Jobs Report and Canada’s Gross Domestic Product, are in the spotlight for the financial sector. These fundamental reports are crucial for traders to navigate the markets and make informed decisions. Stay tuned for the latest updates.
Australia Consumer Price Index (31 May 2023)
The monthly Consumer Price Index in Australia increased 6.3% in the year to March 2023, slowing from a 6.8% rise in the year to February 2023.
The data for April 2023 will be released on 31 May, with analysts expecting a further slowdown, dropping to 6%.
Canada Gross Domestic Product (31 May 2023)
The Canadian economic activity in February edged up by 0.1%, following a 0.6% expansion in January.
For March 2023 data, set to be released on 31 May, analysts expect a 0.1% decline.
US JOLTS Job Openings (31 May 2023)
The number of job openings in the US dropped by 384,000 to 9.6 million in March 2023, the lowest level since April 2021.
Data for April 2023 will be released on 31 May, with analysts expecting another drop to 9.2 million.
US ADP Non-Farm Employment Change (1 June 2023)
Private businesses in the US created 296,000 jobs in April 2023, a significant increase compared to the downwardly revised figure of 142,000 in March 2023.
May 2023 data will be released on 1 June, with analysts anticipating a job creation figure of around 200,000.
US ISM Manufacturing PMI (1 June 2023)
The ISM Manufacturing PMI in the US rose to 47.1 in April 2023, up from a three-year low of 46.3 in the previous month.
Analysts predict that the index for May 2023, scheduled for release on 1 June, will be at 48.
US Jobs Report (2 June 2023)
The US Non-Farm Employment Change unexpectedly increased by 253,000 jobs in April 2023, outperforming the expected 180,000 and coming after a downwardly revised 165,000 in March. Concurrently, the unemployment rate in April 2023 dropped to 3.4%, matching a 50-year low previously seen in January.
For May 2023 data, scheduled for release on 2 June, analysts anticipate that Non-Farm Employment will see an addition of 180,000 jobs, with the unemployment rate projected at 3.5%.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com
The oil and gas industry encompasses different types of oil, such as crude oil, no-lead gasoline, natural gas, and heating oils. Among these, crude oil remains the largest and most widely traded sector, sourced from various points of origin worldwide.
Due to its extensive trading volume and diverse sources, crude oil is susceptible to geographic, political, and economic factors that make its market highly volatile. This volatility presents both risks and opportunities for traders interested in capitalising on the oil market.
The world’s biggest oil producers (2021) in million barrels per day. source: statista.com, BP
Understanding Oil CFDs
CFDs are derivative financial products that allow traders to gain exposure to a market, such as oil, without owning the underlying asset.
Unlike physical trading, oil CFDs derive their profitability from speculating on price fluctuations rather than the buying and selling of the actual commodity.
Successful trading of oil CFDs requires a deep understanding of market trends, factors driving price movements, and the ability to predict market dynamics.
What Are Oil CFDs?
Oil CFDs enable traders to access the expansive oil market through leverage, offering increased exposure without the need to possess the physical asset.
This increased exposure can diversify investment portfolios and reduce overall risk. Oil CFDs serve as conduits for trading in oil spot prices, oil futures, and oil options.
The most commonly traded benchmarks for crude oil CFDs are West Texas Intermediate (WTI) and Brent Crude Oil.
Differentiating WTI and Brent Crude Oil
When trading oil CFDs, it is important to familiarise yourself with the two primary types of crude oil in the global market: WTI Crude Oil and Brent Crude Oil.
These crude oils are rated based on their density and sulphur content, which impacts their quality and refining costs.
Brent Crude Oil
Sourced from oil drilling in the North Sea
Responsible for setting the price of two-thirds of the world’s traded crude oil supplies
Defined as a light crude oil, but not as light as WTI Crude Oil
Typically refined in Northwest Europe
Brent Crude Oil CFDs are traded over a five-day work week
Brent can be particularly vulnerable to crises and instability because it is relatively more widespread
WTI Crude Oil
Sourced from land based oil fields in Texas, Louisiana and North Dakota
One of the two main benchmarks for pricing of global oil markets, along with Brent Crude
Graded as ‘Texas light sweet’ oil, both lighter and sweeter than Brent Crude
Typically refined in Texas and Oklahoma
Land-based drilling can make shipping and transport of WTI Crude Oil more expensive
International events and instability have less of an effect on price
Traded on the New York Mercantile Exchange (NYMEX)
source: calculatedriskblog
Trading oil CFDs: Key steps
To start trading oil CFDs, it is essential to follow a structured approach:
Step 1. Familiarise Yourself with Live Trading
Choose whether you want to trade WTI Crude Oil, Brent Crude Oil, or both. Practice using a demo account to become familiar with trading tools, indicators, and executing trades in a risk-free environment.
Step 2. Create Your Oil CFD Trading Account
Once comfortable with the trading environment, open a live trading account, download the trading platform, and deposit funds to start trading.
Step 3. Manage Your Risk
Establish risk management strategies, including the use of stop-loss orders and limit-close orders, to control potential losses.
Step 4. Study the Market
Deepen your understanding of the oil market through comprehensive research, including fundamental and technical analysis. Stay updated with breaking news and monitor long-term performance to identify patterns.
Step 5. Formulate a Strategy
Determine whether you prefer short-term or long-term trading strategies and select an approach that aligns with your portfolio and goals.
Step 6. Consider Diversification
Explore other CFD markets and assets to diversify your trading portfolio and mitigate risk.
Step 7. Monitor and Adjust
Continuously monitor your trades, adapt your strategy as needed, and make informed decisions based on the market conditions.
Trading oil CFD futures
In addition to trading spot prices, oil CFDs also provide access to oil futures. Oil CFD futures are over-the-counter derivatives based on future contracts. These contracts allow traders to speculate on the future price of oil at a predetermined date. Trading oil CFD futures involves understanding the intricacies of futures markets, contract expiration, and factors that influence their prices.
source: U.S. Energy Information Administration, Refintiv (Mar 2022)
Pros and Cons of Oil CFDs
As with any trading method, oil CFDs have their own advantages and disadvantages, which you’ll need to weigh up before you get started.
Pros:
Trading oil CFDs requires you to trade with leverage, which means traders only have to place a percentage margin of the full trade value as a deposit. This can give you increased exposure in oil markets and has the potential to maximise your profits.
Oil CFDs give you the chance to gain full exposure to the oil market without needing to take possession of any physical assets.
Trading oil CFDs can be thrilling for investors who want to challenge themselves in volatile markets.
This volatility also opens up more potential opportunities for traders to make a profit.
Cons:
It’s worth noting that oil CFD trading is not permitted in the US and is taxed, unlike other methods such as crude oil spread betting.
Leveraged trading can maximise your profits, but it can also amplify your losses. You should bear this in mind and have a strategy in place for mitigating the risks involved with trading oil CFDs.
The oil market is volatile and requires close monitoring as well as detailed knowledge of your chosen market if you want to trade oil CFDs.
Learn with VT Markets
VT Markets is a provider of comprehensive trading services, offering demo trading accounts using the popular MetaTrader platforms. These demo accounts enable traders to experience realistic trading environments, access powerful trading tools, analyse market trends, and receive professional support. By leveraging these resources, traders can develop their trading style and gain confidence in trading oil CFDs effectively.
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