What is it? It checks the level of a diffusion index based on surveyed businesses, excluding the farming industry.
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.
Usual Effect: If the number is higher than expected, you can expect the AUD to rise.
When? October 13th at 8:30pm Eastern Time.
Trading Tip: This announcement can greatly affect the AUD, make sure to make your trades before.
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What is it? ECB president Draghi is due to hold a press conference about the conclusions of the International Monetary Fund's Annual Meeting and associated events, in Washington DC.
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.
Usual Effect: If the speech will hint towards higher interest rates, you can expect the EUR to rise.
When? October 11th at 12:00pm Eastern Time.
Trading Tip: This announcement can greatly affect the EUR, make sure to make your trades before.
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US stocks dropped as a result of the IMF announcement that the economy might not recover to the high it was before 2007.
Asian markets also declined across the region. The Nikkei lost 1.15% as the Dollar remained lower against the Yen. European markets are also lower today due to concerns regarding the strength of the European economy.
Oil dropped to its lowest price since 2010 after the EIA reported that inventories increased by 5 million barrels during the past week. Gold climbed to a 2 week high following the IMF Meeting results.
Trading Tip: As the IMF semi- annual meeting is taking place today and tomorrow we may see Gold move higher in the near term.
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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) More Pain to Come?
European markets were trading weaker as investors remain rattled by a string of poor economic numbers from Germany, and slower global growth. There was more disappointing data Friday, this time from Italy -- the Eurozone’s third largest economy -- where industrial production in August was 0.7% weaker than a year ago.
US stock futures were slipping lower. Asian markets ended firmly in the red.
2) Rollercoaster Ride
The Dow plunged 335 points Thursday, its worst day of the entire year on a point basis. The wild swing lower followed a sharp jump Wednesday, the best day of the year so far for stocks. Both the S&P 500 and Nasdaq fell more than 2% on Thursday. Investors are about as terrified as they can be right now.
3) Oil Price Plunges
The prospect of weaker global growth is hitting commodity markets hard. Crude oil futures in Europe were trading 1.4% weaker at $89 a barrel, their lowest level in nearly four years. US light crude has lost nearly 18% over the past 12 months.
4) A New Tesla
Tesla (TSLA) has unveiled its model D, a dual motor, all-wheel-drive sedan with mind-bending performance numbers.
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What is it? It check the Percentage of the total work force that is unemployed and actively seeking employment during the previous month.
The number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.
Usual Effect: If the number is higher than expected, you can expect the CAD to rise.
When? October 10th at 8:30am Eastern Time.
Trading Tip: This announcement can greatly affect the CAD, make sure to make your trades before.
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What is it? It check 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.
Usual Effect: If the number is higher than expected, you can expect the CAD to rise.
When? October 10th at 8:30am Eastern Time.
Trading Tip: This announcement can greatly affect the CAD, make sure to make your trades before.
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US stocks experienced their worse drop in 2 months before earnings season. Asian markets also declined as the Dollar traded as low as ¥107.8.
European markets are lower today as focus now turns to the FOMC Meeting Minutes which will be released at 6pm GMT today.
Oil sharply declined to a 2 year low after the IMF decision to cut the global growth forecast. The assumption is that if growth slows, demand for oil will also slow.
Gold gained and climbed above $1,215/ounce as the Chinese market re opened after holidays. Further gains were seen as the stock market and Dollar declined. Traders turned to safe haven assets following the IMF decision but this could be short term.
Trading Tip: If the FOMC Meeting minutes provide new information we should see Gold falling 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) Calming Down
US stocks aren’t changing much today.
US stocks fell Tuesday, suffering one of their worst days in 2014. The Dow Jones industrial average lost 272 points and both the S&P 500 and Nasdaq tumbled more than 1.5%. October is notorious for some of the worst market crashes in history.
Whether or not we get another one will likely depend on corporate earnings.
2) Markets are Falling
European markets were pushing further into the red in early trading. Most markets in Asia also declined overnight.
3) Market Movers - Air France and Yum! Brands
Shares in Air France KLM (AFLYY) fell by more than 2% in Europe after the carrier said that a recent strike by pilots cost the company up to €350 million ($440 million) in the third quarter.
Keep an eye on shares in Yum! Brands (YUM). The parent company of KFC and Pizza Hut slashed its profit expectations. It has been struggling to recover from a tainted meat scandal in China, and the stock is down by just over 15% in three months.
4) Waiting for the Fed
The Federal Reserve is expected to release the summary from its September meeting at 2:00pm Eastern Time.
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What is it? It check the total value of money the BOE will create and use to purchase assets in the open market.
The announcement increases demand for bonds which usually leads to lower long-term interest rates.
Usual Effect: If the number is smaller than expected, you can expect the GBP to rise.
When? October 9th at 7:00am Eastern Time.
Trading Tip: This announcement can greatly affect the GBP, make sure to make your trades before.
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What is it? It check 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.
Usual Effect: If the number is smaller than expected, you can expect the AUD to rise.
When? October 8th at 8:30pm Eastern Time.
Trading Tip: This announcement can greatly affect the AUD, make sure to make your trades before.
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What is it? It check 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.
Usual Effect: If the number is higher than expected, you can expect the AUD to rise.
When? October 8th at 8:30pm Eastern Time.
Trading Tip: This announcement can greatly affect the AUD, make sure to make your trades before.
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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.
Usual Effect: If the meeting is more aggressive than expected, you can expect the USD to rise.
When? October 8th at 2:00pm Eastern Time.
Trading Tip: This announcement can greatly affect the USD, make sure to make your trades before.
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After a strong rally last week investors started the week locking in profits by selling off the US Dollar and equities.
Asian markets were mixed during today’s session, while European markets were lower today after data from Germany disappointed the market.
Slight losses were seen after Germany released disappointing industrial production data leading to assumptions that demand for oil could fall.
Gold is climbing as the Dollar weakens with profit taking. The low price seen on Friday also boosted physical demand.
Trading Tip: Pay notice to the situation in Germany to expect what will happen with the rest of the European economy.
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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) Stocks are Dropping
US stock futures are shifting lower and markets across Europe are declining.
Investors are feeling unhappy after new data from Germany -- Europe's largest economy -- showed industrial production took a big hit in August, declining by 4% compared to the previous month. This is the latest in a string of reports showing the German economy is sputtering.
2) Market Movers – Amazon and Apple
Watch Amazon (AMZN, Tech30) trading Tuesday. The company is reportedly set to be investigated by European regulators for striking a sweetheart tax deal in Luxembourg.
Apple (AAPL, Tech30) is already being investigated for a similar tax arrangement in Ireland.
3) Monday Market Summary
US stocks closed in negative territory Monday. The Dow lost 18 points, the S&P 500 slid 0.2%, and the Nasdaq fell 0.5%.
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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.
Usual Effect: If the number higher than expected, you can expect the CAD to rise.
When? October 7th at 8:30am Eastern Time.
Trading Tip: If this goes on, the European markets might continue to drop. Pay notice to the situation in Germany to expect what will happen.
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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.
Usual Effect: If the number higher than expected, you can expect the GBP to rise.
When? October 7th at 4:30am Eastern Time.
Trading Tip: The announcement can greatly affect the GBP, make sure to make your trade before.
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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.
Usual Effect: If the statement is more aggressive than expected, you can expect the JPY to rise.
When? October 7th at 2:32am Eastern Time.
Trading Tip: The announcement can greatly affect the JPY, make sure to make your trade before.
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What is it? It's among the primary tools the BOJ 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 projects the economic outlook and offers clues on the outcome of future rate decisions.
Usual Effect: If the statement is more aggressive than expected, you can expect the JPY to rise.
When? October 7th at 12:54am Eastern Time.
Trading Tip: The announcement can greatly affect the JPY, make sure to make your trade before.
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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.
Usual Effect: If the statement is more aggressive than expected, you can expect the AUD to rise.
When? October 6th at 11:30pm Eastern Time.
Trading Tip: The announcement can greatly affect the AUD, make sure to make your trade before.
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US stocks were rising as a result of the NFP data on Friday. The data was better than expected and showed that 236,000 jobs were created during the past month. In addition to positive payroll data the Unemployment rate also declined to its lowest level since 2008.
This also affected the Asian market, which rose as well during the day.
Disappointing data from Germany supported the slowdown in the European economy. This further drove speculation that the European Central Bank will need to act to boost the economy and avoid the risk of deflation.
Gold sharply declined after the labor data from the US was released. The metal trades inversely to the Dollar and the Dollar’s rise on Friday pushed Gold down to a 15 month low. Further declines were seen as stocks were also boosted and equities act as an alternative investment to the commodity.
Trading Tip: As the price of Gold is so low, we could see an increase in physical demand. But with no key daya being released today, it is most likely that we will see the asset trading badly.
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