PROVEN RESULTS

March 7, 2014 - Daily Market Analysis

Today Hot Property: USD, CAD

Today nonfarm Payrolls figures will be released from the U.S. which measures the change in the number of newly employed people , excluding the farming industry . Important indicator of economic activity is employment and so this event is highly anticipated by investors. The latest figures from the U.S. market has more ambition and the last two have been reported NFP also well below expectations . Winter storms have been battling with the U.S. and the market is not sure if bad data is a result of economic slowdown or due to bad weather . Janet Yellen , the new head of the Federal Reserve, has assured the markets that the weakness in employment is weather- related and so today's NFP release will be watching closely . If the data is again lower than expected Fed may decide to pause in their meeting next tapering . Yesterday , the U.S. released surprisingly positive initial Jobless Claims figures to bring some hope to the market. This came after Beige Book showed that in most regions , the economy grew last month. For this reason U.S. stocks gained , S & P 500 closed 0.17% higher and the Dow Jones closed 0.38% higher. Asian stocks were mixed . Nikkei get 0.92 % as yen continues to fall against the dollar following positive Jobless Claims data and Hang Seng declined 0.19% . European stocks have started the session in negative numbers . ECB maintained interest rates at 0.25% yesterday as stronger inflation and economic output to reduce the demand for leaders to take action.

WTI crude is rising following better than expected U.S. data . It also gained after President Obama said that the pressure will rise on Russia to support sanctions under the Ukraine and more can be delivered . Gold climbed yesterday after European officials urged the international community to take a tougher stance against Russia - to increase tension in the region. Yellow metal also moved up in anticipation of today's nonfarm Payrolls data . Traders will be to use the results to try and determine how the Fed to continue with monetary policy .

Today Main Events :

13:30 GMT: CAD - Jobs Language -point change in the number of people employed . Employment is a key indicator of consumer spending

13:30 GMT: USD - nonfarm Payrolls - a step change in the number of employed people during the previous month , excluding the farming industry . Employment is the foremost indicator of consumer spending , which accounts for the majority of economic activity .

13:30 GMT: USD - unemployment rate - measures the percentage of the labor force that is unemployed and actively seeking employment during the previous month .

17:00 GMT: USD - FOMC Member Dudley Speaks - Due to talk about economics in Brooklyn College, in New York

Market Review By TraderXP: 

Gold rally this year and to rise further in 2014, the U.S. Federal Reserve policy producers are likely to support the purchase of assets for two years to support the recovery, according to Morgan Stanley.
Gold was the biggest quarterly drop since 2008 in the final three months of last year, data showed recovery largest economy is gaining momentum, increasing concern the Fed may reject stimulus. Minutes from the December meeting of the Federal Open Market Committee, released on January 3, said asset purchases is likely to end this year. Each month, the Fed pledged to buy $ 85 billion of Treasury bonds and mortgage debt.

December 4 , 2013 - Daily Market News

Today's Hot Assets : EUR , USD , Gold

U.S. stocks declined yesterday as positive data is boosting speculation that the Federal Reserve will reduce stimulus in early 2014 . At the session close the S & P 500 was down by 0.32% and the Dow Jones was down by 0.59 % . Asian stocks also fell with the Nikkei closing 2.17 % lower as the yen strengthened against the dollar. After hitting its highest level since 2011, the Hang Seng declined due to tapering fears and closed 0.76 % lower. Following their drop yesterday, European stocks opened in positive numbers . Investors should focus on key data out today from both Europe and the United States .

WTI is rising after data showed that U.S. inventories fell . TransCanada has released news that it plans to increase deliveries of crude to Texas next month by easing supply bottleneck which resulted in the lack of pipeline capacity. Gold reached a 5 month low due to the speculation that quantitative easing will be reduced. Physical demand is also weak . Retailers should focus on U.S. data today including the ADP Nonfarm Employment Change at 1.15 pm (GMT ) . If the data are positive and show a further improvement in the economy we see the price drop down further.

Today's Main Events :

9.00 at : EUR - Services PMI - measuring the activity of purchasing managers in the services sector .

09.30 GMT : GBP - Services PMI - measuring the activity of purchasing managers in the services sector .

10.00 GMT : EUR - GDP - measures the annualized change in the inflation - adjusted value of all goods and services produced by the economy

10.00 GMT : EUR - Retail Sales - measure the change in the total value of inflation - adjusted sales at the retail level. It is the main indicator of consumer spending , which make up the majority of overall economic activity .

13.15 GMT : USD - ADP Nonfarm Employment Change - a measure of the monthly change in non- farm , private employment, based on the payroll data of approximately 400,000 U.S. business clients . The release, two days before the government data , there is a good predictor of the government non- farm payroll report.

15.00 GMT : CAD - interest rate decision - Bank of Canada ( BOC ) governing council members come to a consensus about where to set the rate.Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

15.00 GMT : ISM Non - manufacturing PMI - calculated as an indicator of the overall economic condition for the non - industrial sector . The NMI is a composite index based on the diffusion indexes for four of the indicators with equal weights : Business Activity ( seasonally adjusted ) , New Orders ( seasonally adjusted ) , Employment ( seasonally adjusted ) and Supplier deliveries.

15.00 GMT : USD - New Homes Sales - measures the annualized number of new single-family homes that were sold during the previous month . This report tends to have more impact when it's released in advance of the existing Home Sales because the reports are tightly correlated

Market Review By TraderXP: 

Oil traded near the highest level in four months in New York on signs of economic growth in the U.S. and after OPEC Secretary General Abdalla El-Badri said prices are not likely to fall this year.