Happy Tuesday!

Please don’t tell me I’m the only one who does this. 🙈

@financedmemes

#memes #forexmemes #funny #forex #trading #tradingmemes

Only have a minute? ⏱

Trade Of The Day 📈

XAUUSD

Wednesday News

A full day of volatility is on the books. 📖

Here’s what you’re in for:
(All times in EST)

• 09:30 — How many governors does it take to control inflation? 😅 

  • Event: Speeches from ECB's President Lagarde, Fed's Chair Powell, BoE's Governor Bailey and BoJ’s Governor Ueda

  • Major pairs to watch: EURUSD, GBPUSD & USDJPY

• 16:30 — Putting US banks to the test 👀

  • Event: USA: Bank Stress Test Info

  • Major pairs to watch: EURUSD
    

• 21:30 — Australian shoppers impact the economy (and your wallet!) 👛

  • Event: Australia: Retail Sales s.a. (MoM)(May)

  • Major pairs to watch: AUDUSD

How many governors does it take to control inflation? 😅 

Why are we hearing from four huge names in finance on the same day? 👀

They’re pretty much all at a big economics summer camp while the rest of us are checking the couch cushions for spare change.

The ECB holds a big conference every year in Portugal and brings together a bunch of central bank governors to talk about the economic issues they are all facing. 💰

We’ll hear from the EU, USA, UK, and Japan.

What are they going to talk about? 🤷‍♀️

Well the theme of this years event is “Macroeconomic stabilization in a volatile inflation environment”.

Which is a bunch of big words to say:

How tf are we supposed to keep prices stable in a world where inflation seems to be out of control? 😩

Putting US banks to the test 👀

You ever heard of those stress tests they do in the hospital? 🤨

The one where they pop you on a treadmill, get your heart pumping, and then monitor how your heart handled the situation?

Basically, the Fed board of governors does the same thing to the big U.S. banks. They call it a stress test too.

They create a fake scenario, like a severe global recession, and see how the banks would react. 😰

If they test well, we can assume the banks know what they’re doing in the USA. This will help increase the value of the USD.

If they fail miserably, we assume a bunch of monkeys are running the banks and the value of the USD goes down. 🐒

Australian shoppers impact the economy (and your wallet!) 👛

We all know by now that Australian retail sales are the biggest indicator of how much Aussies are spending in the shops. 🛍

Why should you care?

Retail sales account for over 80% of retail turnover (the total amount of goods sold within a given time frame) so it’s pretty important. 🤷🏻

How does it impact…

• Inflation?
  
  If consumers are shopping like there’s no tomorrow, that means demand is high and stores will raise their prices. We’d be looking at an increase in inflation. 👆🏼

  
  If they’re not shopping as much, stores will need to drop prices to get people in the door; a decrease in inflation.👇🏼

• GDP?
  

  GDP measures the value of all the goods produced in Australia within a specific time frame. If Aussies are spending more money then output goes up and this increase in production boosts GDP. 📈

• Interest rates?
  
  More shopping leads to higher prices which means higher inflation. When the RBA sees high inflation, they raise interest rates to try and control prices. 🛒

  
  If Australian consumers stop spending money, prices will ease and inflation goes down. This could mean the RBA pauses interest rate hikes or even cuts the rate. 🙏🏼

In April, we saw no change in retail sales. The consensus for May is a slight increase of 0.1%.

Expect AUDUSD ↑

Grow with Tradezie

Do you have a cool trading software to promote? Or maybe you represent a growing business in the Forex industry?

Expose your brand to over 1200+ traders who are always looking for an edge.

Get in touch.

Technical Tip

Do you trade XAUUSD? 👀

I thought so.