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? November 4th 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? November 4th 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's among the primary tools the RBA Reserve Bank Board uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.
When? November 3rd at 10:30pm 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 checks the interest rate charged on overnight loans between financial intermediaries.
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 3rd at 10:30pm 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 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? November 3rd 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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US stocks climbed further on Friday, closing at record levels. Markets benefitted from a decision by the Bank of Japan to extend monetary stimulus by another ¥10 billion to ¥80 Billion per year.
Asian markets were mixed today with the Nikkei remaining closed for a holiday, while European markets were lower today after weak data.
Oil is under pressure due to the stronger Dollar and weak Chinese data. China is the second biggest consumer of oil and lower data could lead to lower demand. The price is inching higher today as traders take advantage of the low price.
Gold is trading around its lowest price since 2010. Commodity prices are under pressure after Oil reached such a surprising low and investors are hesitant to trade in such a risky market.
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Here are 3 tips for today's trading. This will help you decide where you should invest and what to look for:
1) Nervous Trading
It looks like stocks could start the month on the back foot after October's fireworks. US futures are edging lower and there's a lack of direction in the markets.
2) Europe and Asia
European markets were edging lower in early trading. Asian markets ended with mixed results.
3) Economics
The ISM Manufacturing Index is set to come out at 10am ET. At the same time, the US government will report monthly construction spending.
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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? November 3rd 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? Governor Poloz is due to speak about the legacy of the financial crisis at the Canadian Council for Public-Private Partnerships, in Toronto.
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? November 3rd at 12:50pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the CAD 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? November 3rd 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 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? November 3rd 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 climbed as GDP data came out above expectations. Strong gains were seen the day before after the Fed decided to end quantitative easing and made hawkish remarks regarding the labor market.
Asian markets rallied as the Bank of Japan made a surprising decision to extend monetary stimulus.
European markets are higher today in reaction to the Bank of Japan’s decision. Gains are also being seen after the European CPI increased.
Oil has decreased sharply despite positive US GDP data. The drop is being caused by the US dollar which is appreciating from decisions by the Bank of Japan and Federal Reserve.
Gold also declined strongly and is currently trading around $1,164/ounce, its lowest price since 2010. Hawkish comments from the Federal Reserve boosted sentiment and increased the outlook for the economy making Gold a less attractive asset.
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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 Japan
The Bank of Japan has shocked global markets by boosting its aggressive stimulus program in an effort to keep the country's economic revival on track.
Japan's Nikkei index surged by nearly 5% to hit a seven-year high and stock markets around the world are rallying.
Asian markets closed with significant gains and European markets have jumped by at least 1% in early trading.
US stock futures were also surging by more than 1%.
2) Stock Market Movers -- Starbucks, GoPro, Citigroup
Shares in Starbucks (SBUX) are taking a tumble -- down by about 3% premarket -- after the company said it expects profits will fall short of expectations during the next three months.
Shares in GoPro (GPRO) are surging by about 15% after the company reported a better-than-expected third quarter and issued an upbeat forecast for its business.
Meanwhile, Citigroup (C) shares are off by about 1.5% premarket after the company said it had to revise its third quarter earnings. The bank said profit was $600 million lower than previously stated due to higher-than-expected legal costs.
3) Economics
The Bureau of Economic Analysis will post monthly personal income and spending numbers at 8:30am ET.
The University of Michigan will report the final version of its monthly consumer sentiment index at 9:55am ET.
4) Thursday Market Recap
US stocks closed higher Thursday. The Dow gained 221 points. The S&P 500 closed 0.6% higher and the Nasdaq moved up by 0.4%.
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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? October 31st at 9:00pm Eastern Time.
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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? October 31st 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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Diversification is a technique that help you by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event.
Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals.
How to Diversify
Instead of investing with only one broker, you should invest with as many as possible. It will help you invest in different stocks and currencies as each broker can have different ones. In addition, it’s good to try many broker so you can decide which one you like best and can make you the most money.
Conclusion
It’s best to invest in at least 3 brokers, with 5 brokers being the optimal amount. Any less than 3 and you don’t have enough diversity, while more than 5 might be too much to follow.
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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? October 31st at 6:00am 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's among the primary methods the BOJ uses to communicate with investors regarding monetary policy. It covers the factors that affected the most recent interest rate decision, the overall economic outlook, inflation, and clues regarding future monetary policy.
When? October 31st at 2:31am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the JPY to rise.
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