What is it? A positive number indicates that more goods were exported than imported. About 65% of Canadian exports are purchased by the US. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.

When? At 8:30am Eastern Time.

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

 

 

 

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1. U.S. stocks fell in early trading on Monday after Greeks overwhelmingly rejected conditions of a rescue package from creditors, throwing the future of the country's euro zone membership into further doubt.

Stock markets globally fell, but analysts said the declines were less than expected due to expectations that the European Central Bank would act to limit any damage.

The ECB's governing council is due to hold a conference call on Monday afternoon to discuss the provision of emergency funding to Greece's banks. The call was originally to be held at noon. A new bailout deal is needed for Greece to meet a July 20 deadline to repay $3.9 billion of bonds to the ECB.

2. The U.S. dollar rose to fresh two-and-a-half month highs against its Canadian counterpart on Monday, as demand for the safe-haven greenback strengthened broadly after Greek voters rejected conditions of a rescue package from creditors on Sunday.

USD/CAD hit 1.2652 during early U.S. trade, the pair's highest since April 13; the pair subsequently consolidated at 1.2650, gaining 0.62%.

The pair was likely to find support at 1.2540, Friday's low and resistance at 1.2668, the high of April 10.

3. Service sector activity in the U.S. grew at a slower pace than expected in June, one month after expanding at the weakest rate in more than a year, industry data showed on Monday.

In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index inched up to 56.0 last month, up from 55.7 in May but below forecasts for a reading of 56.2.

 

 

 

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What is it? Eurogroup meetings are usually held in Brussels and attended by the Eurogroup President, Finance Ministers from euro area member states, the Commissioner for economic and monetary affairs, and the President of the European Central Bank. They discuss a range of financial issues, such as euro support mechanisms and government finances. The meetings are closed to the press but officials usually talk with reporters throughout the day, and a formal statement covering meeting objectives may be released after the meetings have concluded. The Eurogroup coordinates economic policies of the 19 euro area member states, and their initiatives and decisions can have a widespread effect on the Eurozone's economic health.

When? All Day

Trading Tip: This announcement can greatly affect the EUR so make sure to follow it!

  

 

 

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What is it? Manufacturing makes up around 80% of total Industrial Production and tends to dominate the market impact. It's a leading indicator of economic health - production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.

When? At 16:30am Eastern Time.

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

 

 

 

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What is it? The rate decision is often priced in the market so it tends to be overshadowed by the RBA Rate Statement which is focused on the future. 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? At 12:30am Eastern Time.

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

Stock markets are making some nausea-inducing moves Monday as investors react to major developments out of Greece and China.

 

1. Investors seeing red:

U.S. stock futures are deep in negative territory, with investors taking their cue from Europe and Asia, where nearly all major stock markets are falling.

European stock markets are down by roughly 1% to 2% as traders react to the results of Sunday's Greek referendum. The country voted by a wide margin to reject Europe's latest bailout offer. This raises the risk that the country could now suffer a worse economic disaster and lose its place in the euro.

Yields on Greek 10-year government bonds soared to nearly 17% as investors saw an increased risk that the country will have to dump the euro. Yields on government bonds in Spain, Portugal and Italy are also rising, though the moves were modest. Bond yields in perceived safe havens like Germany and the U.S. are edging lower.

Meanwhile, Chinese stocks remained volatile, despite a series of dramatic steps by officials over the weekend that were designed to support markets.

After opening with a gain of roughly 7%, the benchmark Shanghai Composite lost steam. It closed with a gain of 2.4% Monday. The smaller Shenzhen Composite, which also started the day in positive territory, reversed course and ended 2.7% lower.

 

2. Keeping up with currencies:

The U.S. dollar and British pound are broadly stronger Monday morning while the euro is weaker.

Traders are reacting to continued uncertainty about Greece's future.

 

3. Stock market mover:

Rolls-Royce Holdings: Investors are selling shares in Rolls-Royce Holdings (RYCEY), which is one of the world's biggest manufacturers of aerospace engines. The stock is dropping by about 9% in London after the company warned about weaker-than-expected business trends in the first half of this year. The company is also halting its share buyback program.

 

4. Waiting for an Iran deal:

Investors are waiting for further developments out of Iran. Negotiators from Iran, the United States, China, Germany, France, Britain and Russia are trying to reach a deal to lift sanctions against Iran in exchange for assurances that the country will maintain a peaceful nuclear program.

A June 30 deadline for an agreement has come and gone, so now U.S. negotiators are hoping for a deal later this week.

 

 

 

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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

Survey of about 175 purchasing managers, selected geographically and by sector of activity to match the economy as a whole, which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

When? At 10:00am Eastern Time. 

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

 

 

 

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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. Survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

When? At 10:00am Eastern Time.

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

  

  

 

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What is it? Above 0 indicates optimism, below indicates pessimism. Source changed series from seasonally adjusted to non seasonally adjusted as of Jul 2003. Report is only available to NZIER members.

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.

When? At 6:00pm Eastern Time.

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

 

 

 

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