What is it? Lockhard is due to speak about monetary policy and the economic outlook at the Georgia Law Review Symposium, in Athens. Audience questions expected.
Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.
When? March 20th at 10:20am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.
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What is it? It checks the change in the total value of sales at the retail level, excluding automobiles.
Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends.
When? March 20th 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? It checks the change in the price of goods and services purchased by consumers, excluding the 8 most volatile items.
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.
When? March 20th 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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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Stocks step back
U.S. stock futures are edging down after markets posted big gains Wednesday. The run-up was inspired by comments from the U.S. Federal Reserve indicating it will take a slow and steady approach to rate hikes.
European markets are taking their cue from the strong performance on Wall Street. Nearly all the major indexes are moving up in early trading. The majority of Asian markets also closed with gains.
2. Potential market movers -- Apple, Big Oil, eBay
Shares in Apple (AAPL, Tech30) could see higher than normal trading volume Thursday as the company joins the Dow Jones Industrial Average.
Apple is the largest company in the world based on market capitalization, but it took a long time for it to be included in the benchmark index.
Shares in oil services groups are declining pre-market in reaction to a further 3% slump in crude oil futures, which are now trading around $43 per barrel. Transocean (RIG), Halliburton (HAL) and Schlumberger (SLB) are all off by more than 1%.
Shares in eBay (EBAY, Tech30) are declining by about 2.5% premarket, slipping back from an all-time high set earlier this month.
3. Target tries to make amends
Target (TGT) is trying to make amends with customers who suffered from a 2013 data breach. It's offering to pay up to $10,000 per person in damages. The proposal is part of a $10 million offer by Target to settle a class action lawsuit.
Shares in the company were flat ahead of the open.
4. Russia and Greece on the agenda
Leaders from across the 28 nations in the European Union are meeting Thursday to kick off a summit where they're expected to discuss a range of issues, including Russian sanctions and Greece's fate.
The leaders of Germany, France, Greece and the European Central Bank will huddle in a smaller group on the sidelines of the summit to discuss the rapid deterioration in Greek finances, which threatens its position in the Eurozone.
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Foreign buying of Japanese stocks netted 306.2 Billion Yen during the week of March 9th – 13th, its highest amount in 3 months. Following the release of positive data from New Zealand, the NZD remained supported after recent gains against a basket of major currencies, the fourth quarterly GDP increased by 0.8%, slightly higher than the expected figure of 0.7%.
During the European session, the EUR/USD traded lower as traders took profit after yesterday’s gains. The Dollar retreated from record highs following Wednesday’s FOMC statement as Fed officials downgraded the country’s growth and inflation outlook.
During early U.S. trade, the Federal Reserve Bank released data showing that the Manufacturing Index indicated improving conditions with a figure of 5.0, lower than the expected figure of 7.0. Despite the data being negative the Dollar was little changed as expectations over an interest rate hike midyear continues to support the Dollar.
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What is it? Governor Stevens is due to speak at the American Chamber of Commerce in Australia luncheon, in Melbourne.
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? March 19th at 10:10pm 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? It's a detailed record of the BOJ Policy Board's meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.
When? March 19th at 7:50pm Eastern Time.
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 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? March 19th 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? March 19th 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 total value of money the ECB will create and use to loan to Eurozone banks.
It provides liquidity to banks which usually leads to lower long-term interest rates and stimulates growth.
When? March 19th at 6:15am Eastern Time.
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During today’s early trading session, Asian stocks traded higher as the Bank of Japan maintained its massive stimulus program, furthermore, positive Japanese data showing that yearly exports increased. Following the BoJ monthly report, the Yen rallied against the Dollar as officials stated that Japan’s economy is expected to “continue its moderate recovery trend”.
During the European session, the GBP/USD dropped to its lowest level since 2009 following mixed UK data. The Claimant Count Change showed that the number of unemployed people declined by 31,000, slightly better than the expected figure of -30,000.
During early U.S. trade, the Dollar is traded cautiously against the Euro as investors are currently listening closely to the FOMC statement, volatility is expected to pick up as officials discuss interest rate decisions and factors affecting the economic outlook. It is expected that a rate hike will take place mid-year as the U.S. economy continues to show improvement, this move could weekend the price of Gold as the commodity is considered bearish with raising interest rates.
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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. Fed in focus
All eyes are on the U.S. Federal Reserve as it ends its two-day policy meeting. The Fed is expected to leave monetary policy unchanged, but rates are widely forecast to go up this summer.
Investors are particularly interested in what chairwoman Janet Yellen will have to say at 2 p.m. ET about the timing of an interest rate rise.
"[This Fed] meeting announcement and press conference have the potential to reshape market expectations around the start and pace of Fed tightening," explained Maury Harris, an economist at UBS.
2. Politics setting the pace
The main Israeli stock market is edging up by about 0.5% after Prime Minister Benjamin Netanyahu declared victory for his Likud party following a tumultuous election. He'll now have to work on forming a coalition government with other parties.
Meanwhile, British investors are awaiting the latest U.K. budget, an annual event where the government outlines its plans for taxes and spending. Chancellor George Osborne's speech could set the tone for campaigning before the U.K. general election on May 7.
3. Mellow morning for stocks
Investors seem to be in a mellow mood Wednesday. U.S. stock futures are relatively stable. European markets are mixed in early trading. Asian markets also ended with mixed results.
4. Stock market movers -- Sony, BMW, Standard Chartered
Shares in Sony (SNE) jumped by 5.5% in Japan after the company announced final third quarter results showing sales and profits were better than preliminary figures reported in February.
Shares in British bank Standard Chartered (SCBFF) are rising by about 7% in London. Analysts have been raising their ratings on the stock, according to reports. Investors have become more optimistic about the struggling bank after it said it would install a new CEO, Bill Winters, who previously worked as the co-head of JP Morgan's (JPM) investment bank.
Shares in BMW (BAMXY) are declining by about 3% in Germany after the automaker posted higher annual sales and profits, but the growth wasn't enough to impress shareholders.
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What is it? It checks the change in the inflation-adjusted value of all goods and services produced by the economy.
It's the broadest measure of economic activity and the primary gauge of the economy's health.
When? March 18th at 5:45pm 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's among the primary methods the Fed 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, along with commentary about economic conditions such as the future growth outlook and inflation. Most importantly, it provides clues regarding future monetary policy.
When? March 18th at 2:30pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.
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What is it? It checks the interest rate at which depository institutions lend balances held at the Federal Reserve to other depository 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? March 18th at 2:00pm 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's the primary tool the FOMC 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? March 18th at 2:00pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.
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What is it? This report includes the FOMC's projection for inflation and economic growth over the next 2 years and, more importantly, a breakdown of individual FOMC member's interest rate forecasts.
It's the primary tool the Fed uses to communicate their economic and monetary projections to investors.
When? March 18th at 2:00pm Eastern Time.
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What is it? Domestic government spending and borrowing levels can have a significant impact on the economy - increased spending generates work for contractors and creates jobs, while borrowing levels impact the nations credit rating and provide insight into the nation's underlying fiscal position.
When? March 18th at 8:30am Eastern Time.
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