What is it? It checks the change in interest rate on the main refinancing operations that provide the bulk of liquidity to the banking system.
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? November 6th at 7:45am Eastern Time.
Trading Tip: If the number is higher than the forecast, you can expect the EUR to rise.
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What is it? It checks the change in 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? November 6th 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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What is it? It checks the change in the total value of money the BOE will create and use to purchase assets in the open market.
It increases demand for bonds which usually leads to lower long-term interest rates.
When? November 6th at 7:00am Eastern Time.
Trading Tip: If the number is lower than the forecast, you can expect the GBP 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? November 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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US markets finished mixed as falling oil prices continued to affect energy shares. Sentiment was also lower after the European Commission cut their forecast for global growth to 0.8%, down from 1.2%.
Asian markets finished mixed. The Nikkei continued to climb, adding another 0.44% as the Yen weakened further against the Dollar.
European markets are higher today, rebounding from yesterday’s losses. Gains follow positive earnings releases from companies such a Marks and Spencers.
Oil fell to its lowest price since October 2011. The drop came after Saudi Arabia cut its prices for exports to the U.S by $0.45/barrel. The decision came after exports from the country dropped to a 4 year low. The market seems to be over supplied and demand is on the downside and the stronger Dollar is also impacting prices.
Gold has tumbled to a 4 year low. The Dollar is climbing even higher ahead of midterm elections. Speculation is also high that the Federal Reserve could raise interest rates sooner than expected.
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Here are 5 tips for today's trading. This will help you decide where you should invest and what to look for:
1) Midterm Election Results
CNN projections show Republicans won the balance of power in both the Senate and the House.
This gives the GOP control of Congress and the power to pin down President Obama during his last two years in office. Many investors expect that the Republican takeover of the Senate will lead to more pro-business policies, and benefit the energy and financial sectors.
US stock futures were pushing higher before the open.
2) Economics
On the economics side, the ADP national employment report for October will be published at 8:15am ET. This comes just ahead of Friday's highly anticipated monthly jobs report from the US government.
3) European Market Movers
European markets were all rising in early trading.
A stand-out performer was British grocery chain Marks and Spencer (MAKSY). The company reported better than expected earnings and shares shot up by 8%.
4) Asian Market Movers
Shares in Japan's Softbank (SFTBF) declined by 2.3% after the telecom company slashed its earnings expectations for the year.
Shares in Japanese automaker Nissan (NSANY) got a 2% boost after it reported better than expected quarterly results. The weaker yen has helped, making it cheaper for foreigners to buy its cars.
Meanwhile, Asian markets ended with mixed results, though the moves were not particularly dramatic.
5) Tuesday Market Recap
US stocks closed mixed Tuesday. The Dow Jones industrial average posted a gain of nearly 18 points, while both the S&P 500 and Nasdaq slid about 0.3%.
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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? November 5th at 7:30pm Eastern Time.
Trading Tip: If the 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? November 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? 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? November 5th 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 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? November 5th 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 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? November 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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US stocks finished lower after a choppy session while Asian markets were mixed today. European markets are mixed today after the European Commission cut their 2014 growth forecast for the Eurozone.
Oil continues to drop and is currently trading at a 3 year low. The drop came after Saudi Arabia cut its prices for exports to the US by $0.45/barrel. The decision came after exports from the country dropped to a 4 year low. The market seems to be over supplied and demand is on the downside and the stronger Dollar is also impacting prices.
Gold is ranging around a 4 year low. The metals safe haven appeal has subsided as data from the US has shown an improving outlook and boosted speculation that the Fed could raise interest rates sooner. As the Dollar reaches new highs and data continues to be positive the outlook for Gold looks bleak. However, in the short term physical demand could increase as the price is so low.
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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) It's All About Alibaba
Alibaba (BABA, Tech30) is set to release its first earnings report since its mega IPO. Investors are eagerly anticipating the results. Alibaba is now worth more than Wal-Mart.
2) More Earnings
Plenty of other companies will also be releasing quarterly results. Other big names reporting before the opening bell include Burger King (BKW), Office Depot (ODP), Estee Lauder (EL) and CVS Health (CVS).
21st Century Fox (FOX) will report after the close.
3) Elections and Economics
Midterm elections have arrived in the US. The results will determine what President Obama can get done in his final two years in office. It will also tee up the 2016 presidential contest.
Investors are awaiting the latest autumn economic forecast from the European Commission. The Eurozone continues to struggle with terribly low inflation and high unemployment.
4) Market Moves
US stock futures were edging higher ahead of the open and European markets were pushing up in early trading.
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What is it? Governor Kuroda isdue to speak at the Kisaragi-kai Meeting, in Tokyo.
As head of the central bank, which controls short term interest rates, he has important influence over the nation's currency value. Traders scrutinize his speeches as they are often used to drop subtle clues regarding future monetary policy and interest rate shifts.
When? November 4th at 9:30pm 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 percentage of total work force that is unemployed and actively seeking employment during the previous quarter.
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? November 4th at 4:45pm Eastern Time.
Trading Tip: If the number is lower than the forecast, you can expect the NZD to rise.
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What is it? In checks the change in the number of employed people.
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? November 4th at 4:45pm 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 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? November 4th 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 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? November 4th 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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