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 CAD to rise.
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What is it? It checks the estimated change in the number of employed people during the previous month, excluding the farming industry and government.
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? January 7th at 8:15am 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 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 raise interest rates out of respect for their inflation containment mandate.
When? January 7th at 5:00am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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US markets dropped, suffering their largest losses seen in 3 months. The selloff was triggered by crude oil prices as they fell through $50/barrel. Concerns also mounted as the Euro declined on political developments in Greece and monetary stimulus expectations.
Asian markets were mostly lower across the region. Losses were seen as the Yen strengthened as a safe haven asset due to fears over Europe and falling oil prices.
European markets are mixed today.
Oil lost 5% and fell through its psychological level at $50/barrel. The commodity is now trading at its lowest price since April 2009 around $48.75.barrel. The price is under pressure due to rising supplies and falling demand, concerns regarding Greek debt and the climbing Dollar. The API will be releasing inventory data at 9:30pm GMT.
Gold benefited as a safe haven asset and climbed past $1,200/ ounce. Traders are focusing on Greece with worries another debt crisis could occur. Traders should keep in mind that the FOMC Meeting Minutes will be released tomorrow and the NFP report will come on Friday.
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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) Seeing Red
US stock futures are pushing lower Tuesday, a day after markets took a sharp fall.
Investors have grown increasingly concerned about falling oil prices and a souring global economy. Oil prices dipped below $50 a barrel Monday -- the first time they've hit that level since the Great Recession in April 2009.
Crude oil futures continue falling Tuesday, trading just below $49 per barrel.
The price of gold and US Treasuries are rising -- both signs of investors feeling nervous. The yield on 10-year Treasuries dipped below 2%.
2) International Overview
All major European markets were in the red in early trading, with many indexes down by about 1%.
The latest gauge of European economic activity from Markit showed the region's services and manufacturing industries grew at a sluggish pace in December.
The euro is relatively steady against the US dollar, trading near a nine-year low of $1.19.
Most Asian markets closed the session with big losses, taking their cue from the US drop. The Nikkei in Japan led the decliners with a 3% loss.
3) Toyota Shares Technology
Toyota (TM) said it would share more than 5,000 fuel cell patents with competitors, in the hope of kick starting commercial production of hydrogen-powered cars.
The world's biggest carmaker made the announcement at the Consumer Electronics Show in Las Vegas.
4) Another Bitcoin Hack
Europe's biggest Bitcoin exchange -- Bitstamp -- has been hacked.
The hackers made off with about 19,000 bitcoins ($5.2 million) from exchange accounts. The company has temporarily suspended its service.
The price of Bitcoin has fallen sharply over the past year as the hype around the alternative currency waned. The digital currency is now worth about $275 per coin.
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What is it? It checks the change in the total value of new purchase orders placed with manufacturers.
It's a leading indicator of production - rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
When? January 6th at 10:00am 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 level of a diffusion index based on surveyed purchasing managers, excluding 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? January 6th at 10:00am 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 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? January 6th at 8:30am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the NZD to rise.
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What is it? It checks the level of a diffusion index based on surveyed purchasing managers in the services 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? January 6th 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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What is it? It checks the level of a diffusion index based on surveyed purchasing managers in the services industry.
It's positively correlated with interest rates - early in the economic cycle an increasing supply of money leads to additional spending and investment, and later in the cycle expanding money supply leads to inflation.
When? January 6th at 3:15am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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US markets finished mixed on Friday following weaker than expected data. Volatility remained low as many traders took a long weekend after the New Year’s celebrations.
Asian markets were mixed today. The Nikkei lost 0.24% after a 5 day holiday. Losses were seen as the Yen strengthened slightly as a safe haven asset on the back of events in Europe which sent the Euro to its lowest level in 8 years.
European markets are lower today after the Euro dropped to an 8 year low. Speculation is ripe that the European Central Bank will introduce further stimulus to avoid deflation following comments from Draghi last week. However, fears have surfaced over political developments in Greece. Elections will occur on January 25 and if the far left part, Syriza, gain power they could get rid of the austerity program.
Oil dropped to a new 6 year low $50.7/barrel. The market continues to react to fears regarding increasing supplies and falling demand. The price is very close to a key psychological of $50/barrel and if it breaks through this many producers may be forced to cut production as costs will exceed prices.
Gold is climbing as a safe haven asset and as physical demand increased from China. The price is currently testing its resistance as $1,200.
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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) Euro Slump Deepens
The euro continues to plunge against the US dollar as concerns intensify that Greece may be forced to leave the eurozone if the country elects a radical, anti-austerity government at the end of the month.
"The euro breached $1.20 overnight, and continues to trade below that important technical level," said Tom Beevers, CEO at StockViews in London.
The euro has been declining as the US dollar strengthens and Europe teeters on the brink of recession and deflation.
2) Oil Slides Again
Crude futures are slipping by about 1% and are now trading around $52 per barrel. Oil prices were halved last year as the world faced a supply glut.
"Increasing oil production -- particularly from Russia and Iraq -- coupled with fears for weaker global demand, has continued to push oil lower," said Beevers.
3) Consumer Electronics Show
It's a big week for many technology firms as the International Consumer Electronics Show gets underway.
CES, which runs through Thursday, has been the launchpad for some stunning hits, but also some epic flops.
The Las Vegas show features more than 3,600 exhibitors and is attended by roughly 160,000 people.
4) Stocks Send Mixed Messages
US stock futures are inching lower ahead of the open, but the move is small.
European markets are bouncing around in early trading, with no clear upward or downward trend.
Asian markets ended with mixed results. The standout performer was the Shanghai Composite index, which surged by 3.6% over the course of the day.
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What is it? It checks the level of a diffusion index based on surveyed purchasing managers in the services 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? January 5th at 8:45pm 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 difference in value between imported and exported goods and services 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 5th 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? Williams is due to participate in a panel discussion titled "Housing, Unemployment, and Monetary Policy" at the American Economic Association Conference, in Boston.
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? January 5th at 8:00am 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 diffusion index based on surveyed purchasing managers in the construction 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? January 5th 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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What is it? It checks the change in the number of unemployed people 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 5th at 3:00am Eastern Time.
Trading Tip: If the number is lower than the forecast, you can expect the EUR to rise.
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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 raise interest rates out of respect for their inflation containment mandate.
When? January 5th All Day.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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