Summary of Weekly Events

Summary of Weekly Events: 17 Feb 24

Monday: President’s Day

No substantial economic data or price action occurred. 

Tuesday:

The “Zentrum fur Europaische Wirtschaftsforschung” (ZEW) Sentiment Index reveals the assessments and forecasts for important international financial market date from around 300 experts in fields of banking, insurance, and finance. The latest reading revealed an optimistic outlook on the EURO - increasing from 18 in Jan to 24.2 in Feb. Any value above 0 indicates a positive outlook on the EUR. The last time the Index revealed a negative integer was Dec. of 2023. 

The Empire State Manufacturing Index rates the relative level of general business conditions in New York state. The latest reading for Feb. showed a drastic change from -12.6 in Jan to 5.7. This data comes from the Federal Reserve Bank of NY. 

With similarly optimistic news for both the EUR and USD - price action’s range for EUR/USD stayed near constant. 

Wednesday:

Biggest news came from the FOMC minutes that were released around 1400 EST. Released minutes from its January 28–29, 2025, meeting, it highlights a cautious stance on monetary policy amid economic uncertainties. Officials unanimously agreed to maintain the federal funds rate at 4.25%–4.5%, emphasizing the need for "further progress" on inflation before considering rate cuts. Concerns were raised about potential inflationary pressures from President Trump's proposed tariffs and immigration policies, with business leaders indicating possible cost pass-through to consumers. Despite a robust labor market, the Committee noted that strong consumer demand and higher input costs could elevate inflation risks. The Fed projects a gradual decline in inflation toward the 2% target, though progress may be uneven. The next policy meeting is scheduled for March 18–19, 2025.

Price action: Price action took a more bearish turn towards a previous Lower Low (LL) from Thursday, 13 Feb. Price bounced off a zone near 1.04010 and edged upwards - although still falling at a deficit for the day. 

Thursday: 

The Dept. of Labor released its weekly Initial Jobless Claims that measure the number of individuals who filed for unemployment insurance for the first time during the past week - the reading showed a small increase from 213k to 219k. 

Price action: Price continued to edge upwards near the week’s open. No significant zones were marked at this level. 

Friday: 

HCOB released it’s latest reading for the EUR’s PMI at an unchanged value of 50.2 S&P released it’s latest for USD’s PMI at a slight decrease from Jan’s 52.7 to 50.4. 

Price action: Price lowered towards a liquidity gap created by a 4h candlestick from yesterday.

No significant trade setups were found for this week.