Binary Options, Forex Trading

Economic Events 06/03/2012

03:30 AUD  Interest Rate Decision

Forecast: 4.25%   Previous: 4.25%

The Reserve Bank of Australia ‘s Cash Rate Target decision has a huge influence on its financial markets. Changes in rates affect interest rates in consumer loans, mortgages, and bond rates. Since short term interest rates essentially reflect the return on holding a currency, rate decisions usually affect the exchange rate of the Australian Dollar. Increases in rates or even expectations for increases tend to cause the Australian Dollar to appreciate, while rate decreases cause the currency to depreciate.

10:00 EUR   GDP (QoQ) Q4

Forecast:-0.3%   Previous: -0.3%

Measure of the total value of goods and services produced by Euro-zone nations. GDP is the most comprehensive measure of economic output and provides key insight as to the driving forces in the economy. Due to this report’s lack of timeliness and because data on GDP components are available beforehand, the actual GDP figure is usually well anticipated. But given its overall significance GDP has the tendency to move the market upon release, especially if it upsets expectations. The GDP growth rate serves as a broad indicator for the health of Euro-zone economies. Robust GDP growth signals a heightened level of economic activity, which is generally positive. At the same time, economic expansion raises concerns about inflationary pressure, which can prompt the European Central Bank to increase interest rates. Consequently, positive GDP readings are generally bullish for a given currency, while negative readings are bearish.

10:00 EUR   GDP (YoY) Q4

Forecast: 0.7%   Previous: 0.7%

Measure of the total value of goods and services produced by Euro-zone nations. GDP is the most comprehensive measure of economic output and provides key insight as to the driving forces in the economy. Due to this report’s lack of timeliness and because data on GDP components are available beforehand, the actual GDP figure is usually well anticipated. But given its overall significance GDP has the tendency to move the market upon release, especially if it upsets expectations. The GDP growth rate serves as a broad indicator for the health of Euro-zone economies. Robust GDP growth signals a heightened level of economic activity, which is generally positive. At the same time, economic expansion raises concerns about inflationary pressure, which can prompt the European Central Bank to increase interest rates. Consequently, positive GDP readings are generally bullish for a given currency, while negative readings are bearish.

10:00 EUR   Euro-Zone Household Consumption (QoQ) (4Q P)

Forecast: -0.2%   Previous: 0.2%

Euro-zone Household Consumption reports the mean expenditure on individual consumption goods and services per household per year. The figure is reported in the annualized percent change. Increases in Household Consumption are suggestive of increases in economic growth and of higher levels of consumer optimism, both positive indicators for the economy. However, unrestrained growth can result in inflationary pressures. Thus this report can be used as a leading indicator for inflationary pressures.

15:00 CAD PMI

Forecast: 62.0   Previous: 64.1

It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. Survey of about 175 purchasing managers, selected geographically and by sector of activity to match the economy as a whole, which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.