What is it? Fed Chair Yellen is due to testify on the Semiannual Monetary Policy Report before the Senate Banking Committee, in Washington DC.
As head of the central bank, which controls short term interest rates, she has more influence over the nation's currency value than any other person. Traders scrutinize her public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? February 24th at 10:00am 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 level of a composite index based on surveyed households.
Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? February 24th 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? ECB President Draghi is due to speak at the official unveiling of the 20 euro banknote organized by the European Central Bank, in Frankfurt.
As head of the ECB, which controls short term interest rates, he has more influence over the euro's value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? February 24th at 9:00am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the EUR to rise.
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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? February 24th all day long.
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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.
BOE MPC 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? February 24th at 5:00am Eastern Time
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the GBP to rise.
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During today’s early trading session, Asian markets traded higher after the release of Japanese data showing a positive trade balance and increased exports. During the BoJ monthly report, officials indicated mild concerns over the future outlook of the economy and the weakening Yen, and in turn drove investors towards the stock market. The Nikkei share average reached a fresh 15 year high, and was up by 0.37% closing at 18,322. Asian markets are today closed due to the Chinese and Lunar New Year.
During the European session, the Euro continued to trade lower, and has reached its lowest level in ten days against the Dollar. This decline came as Germany released a number of negative economic reports.
During early US trade the Dollar Index is trading cautiously after policy makers on Wednesday stated on that rate hikes will be delayed till later in the year, furthermore, mixed US data released yesterday showed that the Philadelphia Federal Reserve Manufacturing Index was significantly lower than the expected figure of 9.3, on the other hand the number of individuals who filed for unemployment insurance for the first time during the past week dropped to 283,000. Following the release of data from Canada, the CAD dropped against a basket of major currencies.
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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? February 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? 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? February 20th all day long.
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What is it? It checks the change in the total value of inflation-adjusted sales at the retail level.
It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
When? February 20th 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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What is it? It checks the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
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.
When? February 20th at 3:30am 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? It checks the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
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.
When? February 20th at 3:00am Eastern Time
Trading Tip: If the actual number is higher than the forecast, you can expect the EUR to rise.
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During today’s early trading session, Asian markets traded higher following gains in financial stocks, furthermore, Sony profited off the back of a concrete business plan. Following the FOMC Meeting Minutes and a number of positive reports from Japan, the Yen strengthened against the Dollar. Fed officials stated that there will be a short delay in raising interest rates this year, furthermore, Japanese data showed that Trade balance and exports came out better than expected. The yen is currently trading lower against the Dollar as the price rebounded after the BoJ monthly report which indicated mild concerns over the future outlook of the economy.
During the European session, the Euro is trading lower against the Dollar after yesterday’s gains following the FOMC meeting minutes. The Euro weakened today after negative reports from France added to current concerns regarding the European economy. The French CPI, monthly and yearly HICP all showed lower than expected figures. Currency traders now await a number of economic events to be released tomorrow, including, the German Manufacturing PMI and PPI, the European Market Composite PMI and Service PMI and the British Retail sales for the month of January.
During today’s early U.S. session, American stocks traded lower as concerns over Greece continued to dominate the markets. The current €240 billion debt bailout is due to expire on February 28th, if an extension is not reached by that date, it could cause the nations exit from the European Union.
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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 Slip, Oil Slides
US stock futures are taking a small step back and European markets are mixed in early trading.
Oil futures are down by about 4%, with crude trading around $50 per barrel.
StockViews chief executive Tom Beevers said a report from the American Petroleum Institute showing a jump in crude supplies was "spooking the market."
This comes ahead of the closely-watched US Energy Information Administration report due out 11am ET, which is also expected to show oil inventories have risen.
Over the past few months, moves in oil prices have influenced stock markets, though the recent correlation between equities and oil is considered abnormal.
2) Latest Greek Moves
Greece has asked its group of European creditors to give it a six-month loan extension, according to a tweet by the head of the Eurogroup, Jeroen Dijsselbloem.
Greece's current bailout program expires on February 28 and markets have been concerned that the country is going to run out of money and could exit the eurozone.
No word yet on how creditors will respond.
3) Central Bank Insights
The European Central Bank is set to publish minutes from its January meeting, giving investors insight into the historic decision to launch a large scale, money-printing program. Markets will be curious to see how united the central bankers were during their discussions.
This comes after the US Federal Reserve released its latest set of meeting minutes Wednesday. Investors generally focused on a line indicating the Fed would keep interest rates at record-low levels for "a longer time".
The Fed had been indicating it may raise rates this year as the economy picked up.
4) Earnings and Economics
Shares in Air France-KLM (AFLYY) were declining by about 5% in Europe after the company reported full-year results. The company struggled last year as pilots went on strike for an extended period.
"Strike action by Air France pilots did not help, but we believe there was underlying weakness too," said Liberum analyst Gerald Khoo. "We remain concerned about the outlook."
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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? February 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? 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? February 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's a detailed record of the ECB Governing Board's most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.
When? February 19th at 7:30am Eastern Time
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the EUR to rise.
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During today’s early trading session, Asian markets traded higher following the Bank of Japan’s press conference. BoJ officials upgraded its assessment of exports and factory output due to the weaker Yen. The Yen was little changed against a basket of major currencies after the BoJ voted to keep interest rates unchanged as the Japanese economy is expected to continue to make a moderate economic recovery. Japan is to release a number of economic reports later this evening, including the adjusted Trade balance and yearly Exports.
During the European session, the British Pound rallied against the Dollar after a number of strong economic reports.
During today’s early US session, the Dollar traded cautiously against a basket of major currencies due to the ongoing debt situation in Greece. Greece is expected to reach a deal before the current bailout expires on February 28th. Furthermore, a number of negative economic reports were released at the open of the US session, including new Building Permits and the Producer Price Index showed a decline of -0.8%, the expected figure was a decline of -0.4%. American stocks are trading lower ahead of the FOMC meeting minutes later today.
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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) Up, Up, Up
Take a look across global equity markets and you'll see a lot of green.
European markets are rising in early trading as reports indicate Greece will ask for a six-month loan extension from its European creditors, which would help it avoid running out of money and stumbling out of the Eurozone.
Some indexes, including the FTSE 100 in London and the Dax in Germany, are trading at or near record highs.
"There is a feeling that a lifeline will be cast out to save the Mediterranean nation," said David Madden, a market analyst at IG.
Asian markets closed with gains. The Nikkei 225 in Japan jumped by 1.2%, putting it at a level not seen since 2007. This came after the country's central bank announced it would continue its massive stimulus program.
Over in the US, stock futures are holding steady.
2) Stock Market Decliners -- Exxon Mobil, Carlsberg
Investors are reacting to new filings that show famed investor Warren Buffett dumped his stakes in oil companies Exxon Mobil (XOM) and ConocoPhillips (COP). Shares in Exxon Mobil are off by about 2% premarket.
Many investors like to follow Buffett's trading strategies, which often create ripple effects across markets.
Meanwhile, shares in Carlsberg (CABGY) are dipping by 2% in Copenhagen after the company announced a fall in annual profits and also said its CEO was retiring. The beer brewer has been facing difficult business conditions in Russia and Eastern Europe.
3) Earnings
Hilton Hotels (HLT) and Hyatt Hotels (H) will report earnings before the opening bell.
4) Economics
The US government is releasing January housing starts and building permit numbers at 8:30am ET.
At 2:00pm the Federal Reserve will release the minutes from its latest monetary policy meeting.
Over in the UK, new figures show the jobs market keeps improving, with unemployment down to 5.7% at the end of 2014.
Russian unemployment figures are also expected sometime after 8:00am ET. Russia has been struggling over the last year with lower oil prices and international sanctions, which have hurt the nation's economy and pummeled the ruble.
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