What is it? It checks the change in the number of employed people during the previous month, excluding the farming industry.
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? January 9th at 8:30am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the USD to rise.
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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? January 9th at 8:30am Eastern Time.
Trading Tip: If the number is lower than the forecast, you can expect the CAD 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? January 9th at 8:30am Eastern Time.
Trading Tip: If the 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 total value of new building permits issued.
It's an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.
When? January 9th at 8:30am Eastern Time.
Trading Tip: If the 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 total inflation-adjusted value of output produced by manufacturers.
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? January 9th at 4:30am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the GBP to rise.
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US markets climbed, marking their first increase of 2015. Data continued to show improvement in the labour market with the ADP Nonfarm Employment Change showing that 241,000 jobs were created last month. The FOMC meeting minutes were also released and showed that it is unlikely that interest rates will be increased before April. The minutes also showed that the Fed believes that lower oil prices will be a net positive for the economy and the labour market. Overall, no new information was released and the market welcomed the ‘patient’ stance.
Asian markets were mostly higher across the region. The Nikkei added 1.67% as the Dollar climbed against the Yen reaching 119.8 by the end of the Asian session.
European markets are higher today due to strong speculation that the European Central Bank will add stimulus to the economy. This is taken as a positive for equities as more liquidity enters the market. Positive Retail Sales data was also released from the Euro zone.
Oil dropped to its lowest price since April 2009 at $46.75/barrel. However, later in the day, the EIA released data showing that inventories declined by 3 million barrels over the past week. This came a day after the API reported that inventories declined by 4 million barrels and pushed the price up slightly to a high of $49.5/barrel. It is likely we could see the pair drop down but for now volatility is low.
Gold dropped as the stock market rallied and oil prices rebounded from their 5 year low. Positive data from the US also boosted the Dollar, pushing the metal back down. Today, the price rebounded upwards following worse than expected Initial Jobless Claims data.
Traders should focus on the NFP report and Unemployment rate being released from the US tomorrow.
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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 Are Rising
US stock futures are rallying as investors cheer the latest economic assessment from the Federal Reserve.
According to minutes released Wednesday from the Fed's December meeting, the central bank is predicting solid economic momentum in the coming year, despite concerns about global risks.
Major European markets are rising by more than 1% as traders expect the European Central Bank will be forced to pump money into the system soon to prevent a vicious circle of deflation and recession. Steadying oil prices are also supporting the markets. Oil is trading around $49 per barrel.
Over in Asia, most markets closed the day with gains.
2) The Latest Economic Data
The Bank of England is set to release its latest interest rate decision Thursday. It is expected to keep interest rates unchanged at record low levels.
Meanwhile, official data on eurozone business sentiment will be released in the morning, alongside the latest data on Greek unemployment.
In the US, the Department of Labor will post weekly jobless claims at 8:30am ET.
3) Stock Market Mover -- Tesco
Shares in British grocery giant Tesco (TSCDY) are surging by 7% after the firm reported its latest quarterly results.
Tesco said its business was improving. It also announced it would be closing 43 unprofitable stores and moving its headquarters to help save the company about £250 million ($376 million) per year.
4) Wednesday Market Recap
The Dow Jones industrial average gained 213 points, while the S&P 500 rose 1.2% and the Nasdaq closed 1.3% higher. This follows a string of heavy losses over the previous trading sessions
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What is it? It checks the change in the price of goods and services purchased by consumers.
Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to respond by raising interest rates.
When? January 8th at 8:30pm Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the CNY to rise.
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What is it? It checks the change in the total value of sales at the retail level.
It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
When? January 8th at 7:30pm Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the AUD 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? January 8th at 8:30am Eastern Time.
Trading Tip: If the number is lower than the forecast, you can expect the USD 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? January 8th at 7:00am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the GBP to rise.
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What is it? It checks the interest rate at which the BOE lends to financial 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? January 8th at 7:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the GBP to rise.
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US stocks dropped for a fifth day. Falling oil prices continued to knock sentiment pushing investors to less risky assets. Negative data was also released.
Asian markets climbed across the region. The Nikkei added 0.01% as the Dollar climbed against the Yen. The Hang Seng added 0.83% due to a possible technical rebound after falling a day earlier.
European markets are higher today due to hopes of increased stimulus. The yearly CPI declined by 0.2% and such a weak figure hasn’t been seen since September 2009. This places more pressure on Mario Draghi, the President of the European Central Bank, to make changes at the next meeting taking place on January 22.
Oil dropped to a fresh 6 year low of 46.8/barrel. The pressure of increasing supplies and lower demand is having a big impact on the market. A slight rebound was seen after the EIA released that inventories declined by 3million barrels over the past week but the price is still trading below $50/barrel.
Gold climbed as a safe haven asset. The stock market also declined as investors ditched riskier assets. The price declined slightly on the back of positive U.S data but it seems as though the market is awaiting the FOMC meeting minutes. Traders are looking for clues regarding an interest rate hike which seems more and more likely. If hawkish comments are made, the metal becomes more undesirable and we could see it drop back down.
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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) Oil Falls, Stocks Hold Steady
US stock futures are pushing higher and global markets are mostly moving up after a few punishing days.
But keep an eye on oil prices: Crude futures in the US keep shifting lower and are now trading near $47 per barrel. The price of crude has more than halved since June as rising supply outstripped faltering demand.
2) Deflation in Europe
Official data shows consumer prices across the eurozone fell by 0.2% in December, marking the first time prices have fallen in the region since the Great Recession in 2009.
The figure was worse than most analysts were expecting. Eurozone inflation stood at 0.3% in November.
Falling prices could herald worse times to come for Europe's stagnant economy because they can encourage people and companies to hold off making purchases in the hopes of cheaper deals in the future.
The negative inflation numbers will also increase pressure on the European Central Bank to launch quantitative easing. The euro is stuck at a nine-year low against the dollar.
3) Expecting Earnings and Economic Data
Monsanto (MON) is among the key companies reporting quarterly results before the opening bell.
On the economic front, ADP will release monthly US employment numbers at 8:15am ET.
The minutes from the Fed's December meeting will be published at 2:00pm ET.
4) Tuesday Market Recap
Over the past trading day, the Dow Jones industrial average lost 130 points, while the S&P 500 slid 0.9% and the Nasdaq fell 1.3%.
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What is it? It checks the change in the number of new building approvals issued.
It's an excellent gauge of future construction activity because obtaining government approval is among the first steps in constructing a new building. Construction is important because it produces a wide-reaching ripple effect - for example, jobs are created for the construction workers, subcontractors and inspectors are hired, and various services are purchased by the builder.
When? January 7th at 7:30pm Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the AUD to rise.
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What is it? It's a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
When? January 7th 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? It checks the level of a diffusion index based on surveyed purchasing managers.
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? January 7th at 10:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the CAD to rise.
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What is it? It checks the difference in value between imported and exported goods during the reported month.
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? January 7th at 8:30am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the USD to rise.
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