What is it? It provides insights into the bank's view of inflation, growth, and other economic conditions that will affect interest rates in the future.

When? May 12th at 5:00pm Eastern Time.

Trading Tip: If the announcement will hint towards higher interest rates, you can expect the NZD to rise.

 

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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

 

1. Crazy market moves?

There's quite a bit of volatility in markets this morning.

Investors are selling bonds and yields are moving up. Most major stock markets are in the red, especially in Europe. And the U.S. dollar is falling against all other major global currencies while the euro is rising, up 1% versus the greenback.

On the commodity side, gold prices are stable. Oil is rising slightly.

 

2. Stock market movers -- EasyJet, Carlsberg, Allianz, Shell

European sentiment is being dragged down this morning as some big companies are reporting disappointing corporate results.

Shares in easyJet (ESYJY) are falling by roughly 8% in London after the low-cost British airline warned that a recent French air traffic control strike in April would cost the company roughly £25 million ($39 million).

Shares in Carlsberg (CABGY) are off by 5% in Europe after investors reacted to the brewer's latest quarterly results. Its business continues to decline in Russia.

Allianz (AZSEY) stock is dipping by about 2.5% after the company reported its earnings.

Meanwhile, shares in Royal Dutch Shell (RDSA) are edging down slightly in Europe, but is outperforming the market. The company has just received U.S. approval to drill in the Arctic. However, the oil firm will need a few more approvals before drilling can begin.

 

3. Earnings and economics

GoDaddy (GDDY) and Zillow (Z) will report after the close.

The Treasury Department will give a budget update at 2 p.m. ET.

 

4. Monday market recap

It was a negative day on Monday. The Dow Jones industrial average lost 86 points, the S&P 500 dipped 0.5% and the Nasdaq edged down by 0.2%.

 

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During the early trading session, Asian stocks traded higher as traders sought refuge in stocks following China’s rate cut. The People’s Bank of China voted to set the interest rate at 5.10% down from 5.35%, an economic slowdown in the country remains a concern after a number of recent negative data releases from manufacturing and services sectors. The Nikkei share average was up 1.25%, closing at 19,620 points and the Shanghai Composite rallied 3.35%. The AUD and NZD traded lower against a basket of major currencies as currency traders sentiment weighs over China, furthermore, New Zealand released a negative report showing that the number and value of card transactions with merchants had declined 0.7%, analysts had expected an increase of 0.5%.

During the European session, currencies are trading with little movement as economic reports from the Eurozone are today scarce. The British Pound is trading with Bullish sentiment against the Dollar as the Bank of England kept its monetary policy unchanged, traders are now awaiting the release of Wednesday inflation report to determine the state and growth of the economy. Currency traders also remain cautious ahead of talks between Greece and its creditors, the countries finance ministers need to lay out reforms in order to reach an agreement over the current debt bailout. If an agreement is not reached, then the country could go into default.

 

During early U.S. trade, stocks continued to trade higher after Friday’s rally. Wall Street remained supported following Fridays Nonfarm Payrolls. The economic report showed that 223,000 more people were employed during the previous month, only slightly down than the expected figure of 224,000 and up from the previous month, indicating growth in the jobs sector.

 

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What is it? It checks the change in the number of new loans granted for owner-occupied homes.

It's a leading indicator of demand in the housing market - most homes are financed, so it provides an excellent gauge of how many qualified buyers are entering the market.

When? May 11th at 9:30pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the AUD to rise.

 

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What is it? It checks the interest rate at which the BOE lends to financial institutions overnight.

Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.

When? May 11th at 7:00am Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the GBP to rise.

 

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