What is it? BOE Governor Jul 2013 - Jun 2018. Volatility is often experienced during his speeches as traders attempt to decipher interest rate clues. As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

When? At 07:45am Eastern Time.

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

  

 

 

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1. Wall Street opened sharply higher on Monday after euro zone leaders reached an agreement with Greece to move forward with a third bailout loan for the country to avert bankruptcy.

Greece won conditional agreement to receive a possible $95 billion over three years, along with an assurance that euro zone finance ministers would start discussing ways to bridge a funding gap until a bailout – subject to parliamentary approvals – is finally ready.

2. The Canadian dollar was lower against the greenback in early trade on Monday as investors turned their attention back to prospects for higher U.S. interest rates after euro zone leaders reached an agreement on a bailout for Greece.

USD/CAD was last up 0.77% to 1.2756, recovering from Friday’s lows of 1.2653.

3. U.S. natural gas prices rose to a one-week high on Monday, as forecasts for the next two weeks turned warmer, boosting near-term demand expectations for the heating fuel.

Natural gas for delivery in August hit a session peak of $2.855 per million British thermal units on the New York Mercantile Exchange, the most since July 3, before trading at $2.846 during U.S. morning hours, up 7.6 cents, or 2.76%.

4. The euro fell to session lows against the broadly stronger dollar on Monday as markets reacted to news that euro zone leaders hammered out an agreement on a bailout for Greece as long as Athens can implement stringent austerity measures in the coming days.

The euro briefly touched session highs following initial reports of a deal before giving up gains and turning lower

 

 

 

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What is it? During these hearings the BOE Governor and several MPC members testify on inflation and the economic outlook before Parliament's Treasury Committee. The hearings are a few hours in length and can create market volatility for the duration. Especially noted are the direct comments made about the currency markets.

When? At 5:15am Eastern Time.

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

 

 

 

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What is it? It's a leading indicator of economic health - investors and analysts are highly informed by virtue of their job, and changes in their sentiment can be an early signal of future economic activity. Survey of about 275 German institutional investors and analysts which asks respondents to rate the relative 6-month economic outlook for Germany.

When? At 5:00am Eastern Time.

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

  

 

 

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What is it? This is considered the UK's most important inflation data because it's used as the central bank's inflation target. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. The average price of various goods and services are sampled and then compared to the sampling done a year earlier.

When? At 4:30am Eastern Time.

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


Markets are cheering Monday after Europe finally reached a deal to bailout Greece.

European stocks bounced on the news and U.S. stock futures were also moving higher.

 

1) Greek deal

It took all night but Europe has struck a deal to rescue Greece. Eurozone leaders will negotiate a new $96 billion bailout after the country agreed to enact deep economic reforms under close supervision by its creditors.

The deal -- if ratified -- should prevent a chaotic Greek exit from the euro, an unprecedented event that would have shaken Europe to its core.

"The scale of the capitulation now being forced on Athens is breathtaking, with Greece effectively being asked to give up fiscal sovereignty as the price of staying in the euro area," Oxford Economics economist James Nixon said.

European markets welcomed the news, while bonds in Greece and other peripheral euro nations also bounced.

 


2) Oil tumbles

Crude prices sank to below $52 barrel in electronic trading as world powers appeared to be nearing a deal with Iran that could see supplies from the oil-rich nation back on the market. A deal would loosen sanctions in exchange for curbs on Tehran's nuclear program.

Sanctions have long reined in Iran's oil production and exports, and the country is eager to shed those restrictions to boost its energy sector.

 


3) China rises

Stocks in China rebounded Monday, building on solid gains at the end of last week. But Chinese markets are likely to remain volatile this week and investors continue to weigh the impact of weeks of turmoil.

 


4) International markets

Greece-inspired gains washed over European markets.

Germany's DAX index climbed 1.6%, France's CAC rallied 2.1%, and the U.K.'s FTSE index added 0.6%. Bank shares across the region were sharply higher, with Deutsche Bank (DB) up 2.7% and BNP Paribas (BNPQF) climbing 3%.

Asian markets, some of which closed before the Greek deal was reached, also ended with solid gains.

Japan's benchmark Nikkei index jumped 1.6%, while Seoul's KOSPI Composite climbed 1.5%. The Shanghai Composite added 2.4%.

 

 

 

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What is it? Above 0 indicates improving conditions, below indicates worsening conditions. There's a quarterly and monthly version of this survey - although the monthly survey is more timely, the quarterly version tends to have more impact due to a larger sample size and additional questions regarding expectations. It's a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. Survey of about 350 businesses which asks respondents to rate the relative level of current business conditions.

When? 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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