What is it? It's among the primary tools the BOJ uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future rate decisions.
When? Tentative
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the JPY to rise.
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What is it? It provides valuable insight into the bank's view of economic conditions and inflation - the key factors that will shape the future of monetary policy and influence their interest rate decisions.
When? At 9:30pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the AUD to rise.
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What is it? Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
When? At 8:30am 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? 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 7:45am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the GBP to rise.
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What is it? It's among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.
When? Tentative
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the GBP to rise.
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What is it? When there is a change in rates the MPC will also issue a statement. The rate decision is often priced in the market so it tends to be overshadowed by the MPC 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. MPC members vote on where to set the rate. The individual votes are published 2 weeks later in the MPC Meeting Minutes.
When? 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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What is it? It provides valuable insight into the bank's view of economic conditions and inflation - the key factors that will shape the future of monetary policy and influence their interest rate decisions.
When? At 7:00am Eastern Time.
Trading Tip: This announcement can greatly affect the GBP so make sure to follow it!
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What is it? 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 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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1) The dollar rose to two-month highs against the yen on Wednesday after data showing that activity in the U.S. service sector expanded at the fastest rate in ten years last month, bolstering the outlook for higher interest rates.
USD/JPY was up 0.41% to 124.88, the most since June 8 from around 124.25 ahead of the data.
2) Wall Street opened higher on Wednesday after data showed private sector hiring slowed sharply in July, indicating a loss of momentum in the economy at the start of the third quarter and tempering expectations of a September interest rate hike.
The ADP National Employment Report showed private employers added 185,000 workers in July, below the 215,000 increase forecast by economists surveyed by Reuters.
3) Service sector activity in the U.S. grew at the fastest pace since August 2005 in July, boosting optimism over the health of the economy and supporting the case for a rate hike in September, industry data showed on Wednesday.
4) U.S. non-farm private employment rose less than expected in July, dampening optimism over the strength of the economy and fanning hopes that the Federal Reserve could delay raising interest rates until the very end of 2015, industry data showed on Wednesday.
5) West Texas Intermediate oil extended gains on Wednesday, after data showed that oil supplies in the U.S. fell more than expected last week.
Crude oil for delivery in September on the New York Mercantile Exchange tacked on 82 cents, or 1.79%, to trade at $46.56 a barrel during U.S. morning hours. Prices were at around $46.33 prior to the release of the inventory data.
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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 eerily calm right now as traders await a tsunami of corporate earnings.
Don't get complacent!
1) Earnings
The owner of T.G.I. Friday's and Jamba Juice, Inventure Foods (SNAK), is reporting ahead of the open, alongside Discovery (DISCK), Martha Stewart Living (MSO), Priceline (PCLN, Tech30), Kate Spade (KATE), Ralph Lauren (RL), Sodastream (SODA), Wendy's (WEN) and CNN's parent company Time Warner (TWC).
Then after the close we'll hear from Tesla (TSLA), Transocean (RIG), 21st Century Fox (FOXA), CBS (CBS), Fitbit (FIT), Herbalife (HLF) and GoDaddy (GDDY).
2) Stock market movers
U.S. stock futures are relatively steady, but some companies are swinging around.
Disney (DIS) shares are tumbling by about 6% premarket as traders react to the company's latest earnings. The results were mixed, with earnings exceeding market expectations but revenue fell short.
On the flip side, expect shares in First Solar (FSLR) to rally by about 6% at the open after releasing well-received earnings Tuesday evening.
3) Economics
The Institute for Supply Management is releasing data at 10 a.m. ET showing the health of the U.S. services sector in July. The previous report showed business has been growing.
Crude oil inventory data from the U.S. is released at 10:30 a.m, which could result in some brisk trading. Currently, crude futures are trading just below $46 per barrel after falling by about 20% last month.
4) Greek bank crash continues
European markets are mostly advancing in early trading, with miners leading the way higher.
But again, Greek markets are declining. The key Athens index is down by about 3%, with nearly all Greek banks crashing by about 30% for a third day. Investors are racing for the exit because they fear the banks will have to be restructured as part of Greece's new bailout.
Asian markets ended with mixed results. Key stock markets in China and Australia lost some ground while all the others pushed higher.
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What is it? Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market 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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What is it? This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts.
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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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? The goods portion has limited impact because it's a duplicate of the Goods Trade Balance data released about 5 days earlier. A positive number indicates that more goods and services were exported than imported. 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 USD to rise.
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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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What is it? This data provides an early look at employment growth, usually 2 days ahead of the government-released employment data that it's designed to mimic. Source changed series calculation formula in Feb 2007, Dec 2008, and Nov 2012, to better align with government data. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. ADP provides payroll services to US corporations, and they analyze data from around 400,000 customers to derive employment growth estimations.
When? At 8:15am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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