We are pleased to announce that there was a potential of 1024 pips/ticks profit out of the following 26 events in the second quarter of 2024 based on our ex-post analysis. The potential performance for 2023 was 13,607 pips/ticks.

Q2 2024

Cumulative potential, indicative performance Q2 2024, please see all releases below.

Total trading time would have been around 21 minutes in 3 months! (preparation time not included)

Analyzing Key Economic Events and Their Impact on Financial Markets (April-June 2024)

As we progress through 2024, several key economic events have continued to influence financial markets globally. The period from April to June 2024 has been particularly eventful, with significant data releases that impacted currency and commodity markets. In this post, we will explore some of these critical events, their market impact, and what they might signify for the broader economic landscape.

April 2024: Volatility in the Markets

April began with the release of the DOE Natural Gas Storage Report on April 4, which saw a movement of 10 ticks. This report, which measures the change in the number of cubic feet of natural gas held in underground storage during the past week, often influences natural gas prices. The relatively small tick movement suggests a modest reaction from traders, likely due to market expectations aligning closely with the actual figures.

On April 5, the Canada Labour Force Survey caused a 46-pip movement in the CAD/USD pair. This report is a significant indicator of economic health, as it provides insight into employment levels. The notable movement suggests that the data either exceeded or fell short of market expectations, leading to a substantial adjustment in the value of the Canadian dollar.

April 10 was particularly volatile, with two significant releases: the US BLS Consumer Price Index (CPI), which moved the market by 57 pips, and the DOE Petroleum Status Report, which shifted the market by 38 ticks. The CPI is a critical measure of inflation, and a higher-than-expected figure likely led to speculation about future Federal Reserve actions, causing the US dollar to react accordingly. Similarly, the Petroleum Status Report's impact on oil prices demonstrates the sensitivity of energy markets to inventory changes.

Mid-April to May 2024: Inflation and Economic Growth in Focus

The US BLS Producer Price Index (PPI) on April 11 moved the market by 35 pips, reflecting concerns about inflation at the wholesale level. The subsequent DOE Natural Gas Storage Report on the same day moved the market by 21 ticks, further impacting energy prices.

The US Retail Sales report on April 15 saw a 39-pip movement, indicating how consumer spending, a major driver of the US economy, is trending. This data often influences investor sentiment about the health of the economy.

In the latter half of April, the Sweden Labour Force Survey on April 24 caused a significant 67-pip movement in the SEK, reflecting how closely traders watch employment data for clues about economic strength in the region. On the same day, Canada's Retail Sales report moved the market by 13 pips, underscoring its relative importance to the Canadian economy.

As we moved into May, several key reports again captured market attention. The US BLS Employment Situation (Non-farm payrolls/NFP) on May 3 saw a 77-pip movement, as traders reacted to the latest jobs data, a critical indicator of economic health. On May 9, the DOE Natural Gas Storage Report caused a 23-tick movement, continuing the trend of energy market sensitivity.

Mid-May brought significant volatility with the US Retail Sales and CPI data on May 15, causing a substantial 104-pip movement. The simultaneous release of these reports provided a comprehensive view of consumer behavior and inflation, leading to significant market adjustments. The DOE Petroleum Status Report on the same day moved the market by 33 ticks, further highlighting the impact of energy data on trading.

June 2024: Inflation and Employment Data Continue to Drive Markets

June started with the DOE Natural Gas Storage Report on June 6, moving the market by 40 ticks, followed by the US Employment Situation (Non-farm payrolls/NFP) on June 7, which caused a 58-pip movement. These reports set the tone for the month, focusing on energy prices and employment.

The US BLS Consumer Price Index (CPI) on June 12 moved the market by 62 pips, showing the continued market sensitivity to inflation data. On June 13, the US Jobless Claims and PPI data caused a 44-pip movement, reflecting ongoing concerns about inflation and employment.

Finally, the Sweden CPI on June 14 caused a significant 81-pip movement in the SEK, underscoring the importance of inflation data in influencing currency values.

Conclusion

The period from April to June 2024 has been marked by significant economic data releases, each driving notable movements in the financial markets. These events highlight the interconnectedness of global economies and the importance of key indicators such as inflation, employment, and retail sales in shaping market expectations and reactions. As we move forward, keeping a close eye on these releases will be crucial for investors and traders looking to navigate the complexities of the financial markets.

Stay tuned for more updates as we continue to monitor these and other key economic events throughout the year.

Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice. Always conduct thorough research and consider seeking advice from a financial professional before making any investment decisions.

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