What is it? Governor Stevens is due to speak at the American Australian Association luncheon hosted by Goldman Sachs, in New York.
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? April 20th at 12:30pm 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? Governor Poloz is due to participate in a panel discussion at the Bloomberg Americas Monetary Summit, in New York.
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? April 20th at 10:05am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the CAD to rise.
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During the early trading session, Asian stocks were slightly up as energy related company shares soared as investors took profits. Rising oil prices pushed up the price of mining and petroleum stocks. The Nikkei share average was up 0.08%, closing at 19,885 point. Following the release of positive Australian data, the AUD/USD reached 0.778, its highest level in 2 weeks. The Employment Change in Australia showed that the number of people employed rose by 37.7K, significantly higher than the expected 15K.
During the European session, the Euro is currently rebounding from yesterday’s decline as traders speculated the European Central Bank Conference. The pair reached a low of 1.062, but is now testing resistance at a weekly high of 0.074 following Draghis remarks. ECB President, Mario Draghi, took an optimistic stance, stating that the stimulus program is already showing signs of helping the economy, with the release of recent positive economic reports.
The price of oil continued to trade close to 4 month highs following the release of yesterday’s report showing that Crude oil Inventories rose by just 1.294M during the previous week. This data indicated less supply in comparison to the ratio of demand. Furthermore, Gasoline Inventories decline by 2.072M. The commodity is currently trading above $55/barrel.
Traders are now awaiting the release of U.S. data, including, the Building Permits, Housing Starts, Initial Jobless Claims and the Philadelphia Fed Manufacturing Index. Worse than expected figures could weaken the Dollar against a basket of major currencies in the short term.
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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. Earnings and market movers
It's a big day for the financial sector, with Citigroup (C) and Goldman Sachs (GS) reporting ahead of the open. American Express (AXP) will report after the close.
Etsy (ETSY) will start trading Thursday on the Nasdaq. It priced its initial public offering at $16 a share Wednesday, the high end of its expected range.
Watch out for Netflix (NFLX, Tech30) shares today: the stock is rallying nearly 12% premarket following a surge in after-hours trading as the firm reported it added 4.9 million members during the first quarter.
2. Economic updates
The U.S. government will post weekly jobless claims at 8:30 a.m. ET. The Census Bureau will report monthly housing starts and building permits, also at 8:30 a.m. ET.
3. Oil moves
Crude is slipping back in electronic trading to just below $56 a barrel after hitting a 2015 high on Wednesday.
OPEC releases its monthly report March Thursday, on the heels of an update from the International Energy Agency which showed the cartel is fighting hard to keep its share of the world oil market despite last year's price slump.
4. Leaders gather
The G20 finance ministers and central bank governors gather in Washington ahead of meetings of the World Bank and the IMF.
Greece is also in town. Finance Minister Yanis Varoufakis will attend the White House Greek Independence Day reception today ahead of crucial talks between creditors next week.
The cash-strapped country, which had its credit rating downgraded by S&P again on Wednesday, must present reform proposals to its international backers by the end of the month or risk default and exit from the euro. Germany is again talking tough: Finance Minister Wolfgang Schäuble said it was unlikely Europe would reach a deal with Athens next week, according to reports. And investor nerves are showing, with Greek bond yields rising strongly Thursday.
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What is it? It checks the level of a diffusion index based on surveyed manufacturers in Philadelphia.
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? April 16th 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? It checks the number of individuals who filed for unemployment insurance for the first time during the past week.
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? April 16th at 8:30am Eastern Time.
Trading Tip: If the actual number is lower than the forecast, you can expect the USD to rise.
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What is it? It checks the annualized number of new residential building permits issued during the previous month.
It's an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.
When? April 16th 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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The dollar traded at a lower level today following the release of negative data from the U.S., as the Retail Sales data was lower than expected yesterday, weakening the currency against major currencies; the EUR/USD traded as high as 1.070, while the USD/JPY tested its support at 119.10. U.S. indices, on the other hand, had a positive trading session with the energy sector supported by the latest increase in oil prices. The S&P 500 added 0.2% and the Dow Jones added 0.3%.
Despite positive statements from Mario Draghi, the ECB press conference went relatively unnoticed in the currency markets today. Moving in a small range against most currencies, the euro was not boosted by the positive outlook for the economy in the Eurozone. Stocks did manage to benefit slightly; the FTSE 100 gained 0.37% in today’s trading session, while the German DAX went up by 0.03%, marking an overall positive trading session.
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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. China Slows
The world's second largest economy grew at its slowest pace in six years, intensifying pressure on the government to boost stimulus measures. China's GDP expanded by 7% in the first three months of 2015. That was in line with expectations but down from 7.3% in the fourth quarter of 2014.
2. ECB Meeting
The European Central Bank is expected leave interest rates at ultra-low levels when it delivers a policy update later Wednesday. Investors will be looking for comments from President Mario Draghi on the outlook for its massive bond buying program launched last month in a bid to boost the economy.
They'll also pay close attention to Draghi's remarks on the state of talks with Greece over its bailout program. Greece needs to reach a deal on economic reforms with its European creditors and the IMF by the end of April or face default on its massive debt.
3. Earnings and Economics
Bank of America (BAC), PNC (PNC) and Delta Airlines (DAL) will report ahead of the open. Netflix (NFLX, Tech30) delivers its results after the close.
On the economic front, the NAHB/Wells Fargo Housing Market Index will be updated at 10 a.m. ET. The Federal Reserve will publish its Beige Book report on the economy at 2 p.m. ET.
4. International Markets Overview
European markets were rising in early trading. Burberry (BBRYF) was a notable mover, with shares up 2% in London trading, after the luxury goods maker reported a rise in second half sales.
Most Asian markets finished with modest losses, though China's Shanghai Composite dropped 1.2% on the fall in GDP.
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What is it? It checks the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
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? April 15th at 9:30pm Eastern Time.
Trading Tip: If the actual number is lower than the forecast, you can expect the AUD to rise.
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What is it? It checks the change in the number of employed people during the previous month.
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? April 15th 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 change in the average price of dairy products sold at auction.
It's a leading indicator of the nation's trade balance with other countries because rising commodity prices boost export income.
When? April 15th at 10:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the NZD to rise.
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What is it? It checks the interest rate at which major financial institutions borrow and lend overnight funds between themselves.
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? April 15th 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 the primary tool the BOC 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 discusses the economic outlook and offers clues on the outcome of future decisions.
When? April 15th at 10:00am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the CAD to rise.
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What is it? It's the primary method the ECB uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, such as the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy.
When? April 15th at 8:30am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the EUR to rise.
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