Daily Market Review 22/05/2013

German debt yields and the US dollar have eased off as of this morning over increased expectations that the head of the central bank of the United States will signal no tapering back of its ultra-loose monetary policy later today.

The dollar has shed 0.1 percent against a host of major currencies, to 83.77 in European trading, while the euro is currently up 0.2 percent to $1.2930. Ten-year German bond yields meanwhile are down 1.39 percent, in line with firm U.S. Treasury prices that are being supported by the signs the Fed will stick with asset purchases for now. More broadly speaking, world stock markets are quite mixed this morning, having rallied to multi-year highs on policy stimulus from the Fed and other major central banks.

The pan-European FTSEurofirst 300 share index, which has risen to a 5-year peak this month, is easing off, down 0.3 percent to 1,249 points while the euro zone’s blue-chip Euro index remains unchanged.

U.S. stock futures on the other hand are pointing to a firmer open on Wall Street, where the Dow and the S&P 500 indexes closed at all-time highs yesterday evening.

Earlier in the day, Japan’s Nikkei climbed 1.6 percent to an impressive 5-1/2 year high after the Bank of Japan, as widely expected, maintained an aggressively loose policy that will inject up to $1.4 trillion into the financial system. It added 246.24 points to 15,627.26, with the highest closing level last night since December 2007. It rose as high as 15,706.63 earlir in the day, also the best mark since the same time.

This in now keeping the yen on the back foot against the dollar, which has gained 0.4 percent and is now riding at 102.85 yen.

The debate over the Fed’s next moves, and particularly the potential impact on the dollar and on growth is also dominating the commodity markets.

Traders of Gold, traditionally seen as an inflation hedge and alternative to the dollar, may be interested to learn that the precious metal is currently up 1 percent at a session high $1,389.70 an ounce, and the hopes the Fed will continue to support the general global recovery have elevated copper to its highest level in over a month.

Oil however has dropped even further below $104 per barrel, as data showing a surprise jump in U.S. gasoline stockpiles, suggesting that summer U.S. demand might not meet supply, has dragged down prices for today.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

Economic Events 22/05/2013

00:30 AUD Westpac Consumer Sentiment

Forecast: / Previous: -5.10%

The Westpac Consumer Sentiment Index measures the change in the level of consumer confidence in economic activity. On the index, a level above 100.0 indicates optimism; below indicates pessimism. The data is compiled from a survey of about 1,200 consumers which asks respondents to rate the relative level of past and future economic conditions. A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.

08:30 GBP Retail Sales (YoY)

Forecast: 2.0% Previous: -0.50%

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

08:30 GBP Retail Sales (MoM)

Forecast: / Previous: -0.7%

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

10:00 GBP CBI Industrial Trends Orders

Forecast: -19 Previous: -25

The Confederation of British Industry (CBI) Industrial Trends Orders measures the economic expectations of the manufacturing executives in the U.K. It is a leading indicator of business conditions. A level above zero indicates order volume is expected to increase; a level below zero indicates expectations are for lower volumes. The reading is compiled from a survey of about 550 manufacturers. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

12:30 CAD Core Retail Sales (MoM)

Forecast: / Previous: 0.7%

Core Retail Sales measures the change in the total value of sales at the retail level in Canada, excluding automobiles. It is an important indicator of consumer spending and is also considered a pace indicator for the Canadian economy. A higher than expected reading should be taken as positive/bullish for the CAD, while a lower than expected reading should be taken as negative/bearish for the CAD.

12:30 CAD Retail Sales (MoM)

Forecast: 0.2% Previous: 0.1%

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. A higher than expected reading should be taken as positive/bullish for the CAD, while a lower than expected reading should be taken as negative/bearish for the CAD.

13:30 MXN Mexican Retail Sales (YoY)

Forecast: / Previous: -2.6%

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. A higher than expected reading should be taken as positive/bullish for the MXN, while a lower than expected reading should be taken as negative/bearish for the MXN.

14:00 USD Existing Home Sales

Forecast: 4.99M Previous: 4.92M

Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. This report helps to gauge the strength of the

U.S. housing market and is a key indicator of overall economic strength. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

Economic Events 21/05/2013

08:30 HKD Hong Kong CPI (YoY)

Forecast: / Previous: 3.60%

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

08:30 GBP CPI (YoY)

Forecast: 2.6% Previous: 2.8%

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

08:30 GBP CPI (MoM)

Forecast: 0.4% Previous: 0.3%

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

08:30 GBP PPI Input (MoM)

Forecast: -1.1% Previous: -0.1%

Producer Price Index (PPI) Input measures the change in the price of goods and raw materials purchased by manufacturers. The index is a leading indicator of consumer price inflation. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

08:30 GBP PPI Input (YoY)

Forecast: 0.8% Previous: 0.4%

Producer Price Index (PPI) Input measures the change in the price of goods and raw materials purchased by manufacturers. The index is a leading indicator of consumer price inflation. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

15:00 JPY Rate Decision

Forecast: / Previous: /

The BOJ’s rate decision, a surprise may have a huge effect on the currency, a surprise cut will be extremely dovish for the JPY, while a surprise hike will be extremely bullish.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

Daily Market Review 21/05/2013

The US dollar is rising, gold is holding steady and European shares are at five-year highs today as investors look out for U.S. Federal Reserve signals on the future of its stimulus program. The dollar is up 0.25 percent against a host of major world currencies, although this figure is still comfortably below its recent three-year high.

European shares however, which hit a five-year high on Monday, were 0.3 percent lower as of 0815 GMT this morning, as investors took the pre-Fed uncertainty as a cue to cash in on some of the recent sharp gains.

“With the economic numbers being pretty good in the States, there may be an easing back of QE (quantitative easing bond-buying stimulus) sooner rather than later,” said Berkeley Futures associate director Richard Griffiths.

“The DAX and Euro STOXX have moved ahead a lot more than the UK, so in the event of any profit-taking in the U.S., the European markets may drop just that little bit more.”

The situation is looking very similar in the bond market, with German Bund futures currently losing ground.

Currency and stock markets across Asia are largely subdued as of today, although Japan’s Nikkei index is managing to creep up to a fresh 5-1/2 year high and the yen is returning some of Monday’s minor gains. The yen’s move has come as a result of Japan’s economy minister making his comments yesterday that the government is now satisfied with the level of the currency that has been misinterpreted. Any correction in the dollar yen has been shallower than people who wanted big dips to make money out of could look for. And those who think it is a turn are being repeatedly thwarted.

After a recent rollercoaster ride in precious metals, gold is looking steady at around $1,390 an ounce, although the stronger dollar has left it facing its eighth fall in nine sessions.

But silver is down as much as 2.2 percent to trade near the 2-1/2-year lows hit during a 6 percent slide on Monday, when an unidentified investor sold off a large holding.

The metal has become unpopular with investors in recent weeks as declining demand from the photovoltaic solar energy sector and a growth in mine supply tarnish the outlook.

Spot silver is down around 1.2 percent at $22.65 an ounce. It hit a session low earlier of $22.41, not far off the 2-1/2 year low of $20.84 on Monday.

Yahoo shares have risen 0.2 percent to $26.58, and earlier, the Nasdaq touched a fresh 52-week intraday high at 3,509.41. The Dow Jones industrial average has slipped 19.12 points, or 0.12 percent, to 15,335.28, and the Standard & Poor’s 500 Index has dropped 1.18 points, or 0.07 percent, to 1,666.29.

 Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

Economic Events 20/05/2013

Norway-Holiday, Whit Monday

Switzerland-Holiday, Whit Monday

Canada – Holiday, Victoria Day

13:30 USD Chicago Fed National Activity

Forecast: / Previous: -0.23

A monthly report by the Chicago Federal Reserve Bank that tracks economic activity in the 7th district, which is comprised of Indiana, Iowa, Illinois, Michigan and Wisconsin. The index is useful in tracking economic growth and identifying potential inflation. A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

18:00 USD Chicago Fed President Evans Speaks

Federal Reserve Bank of Chicago President and Federal Open Market Committee (FOMC) voting member (September 2007 -December 2007, 2009 and 2011) Charles Evans is to speak. FOMC members are responsible for setting the benchmark interest rate and their speeches are closely watched for indications on the future possible direction of monetary policy. His comments may determine a short-term positive or negative trend.

22:45 NZD Trade Balance

Forecast: / Previous: 718M

The Trade Balance measures the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported. A higher than expected reading should be taken as positive/bullish for the NZD, while a lower than expected reading should be taken as negative/bearish for the NZD.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

Daily Market Review 20/05/2013

The Nikkei share average has hit a fresh 5 year high this morning, pushed by further weakness in the yen and general optimism regarding the growth outlook after the Japanese government raised its assessment of the economy last week. Signs of an improving U.S. economy and Wall Street’s record closing high on Friday cemented the positive mood in markets, which has carried on through to today.

The Nikkei is now up 1.5 percent to 15,360.81, its highest rate since December 2007, and so far today, the index has risen as high as 15,381.74.

The government’s monthly report said that economy is gradually recovering, which was an upgrade from last month, when it said the economy was showing signs of recovery but still had some weak spots.

Toyota Motor Corp rose 1.9 percent at the opening this morning, Sony Corp jumped 5.7 percent and Komatsu Ltd advanced 1.7 percent after the dollar broke above the 103-yen level on Friday buoyed by strong U.S. consumer sentiment data. The dollar has pulled back to trade at 102.65 yen.

In the auto sector, Mitsubishi Motors Corp surged 12 percent and Nissan Motor Co rose 5.6 percent after Mitsubishi Motors’ President Osamu Masuko told reporters that the two companies hope to account for 20 percent of the minicar market.

The broader Topix gained 1.3 percent to 1,269.51 in relatively heavy trade, with 4.87 billion shares changing hands. It compares with last month’s average daily volume of 4.31 billion shares.

Friday’s upbeat consumer confidence data from the United States, Japan’s major export market, has helped underpin the Nikkei in recent sessions.

“In the next few days, the Nikkei’s levels at 15,600 and higher are in sight,” said Hiroyuki Fukunaga, the chief executive of Investrust.

Analysts said the weakening yen has seen investors becoming increasingly confident about the prospects for higher Japanese corporate earnings for the fiscal year through March.

They expect an average operating profit rise of 30 percent from the previous year, compared with the companies’ conservative forecasts of a 20 percent increase in their operating profits.

Bucking the market, interest rate sensitive stocks lost ground after the yield on the 10-year cash bonds rose four basis points to 0.840 percent after rising as high as 0.875 percent. Mitsubishi Estate Co fell 2.3 percent and Mitsui Fudosan Co dropped 2.1 percent.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

Daily Market Review 15/05/2013

Stocks worldwide have been hitting fresh new highs this morning as investors are buying large-cap companies’ shares on the expectation that central bank stimulus will help propel the rally further. Growth sectors are currently outperforming their peers with the Bank of America up 2.8 percent at $13.34 and Citigroup Inc up 2.4 percent to $50.09.

Wall Street has rallied without a significant correction since the start of the year, pushing major indexes to all-time records and sending the S&P 500 up almost 16 percent for 2013 so far. And so for the time being, investors are betting that the central bank will be careful not to remove its support too soon in order to not disrupt the economic recovery it is trying to foster.

The S&P 500 financial sector index has risen 1.7 percent, while the S&P transports group index gained 1.4 pct this morning. The Dow Jones industrial average gained 123.57 points, or 0.82 percent, to close at a record 15,215.25 last night. The Standard & Poor’s 500 Index rose 16.57 points, or 1.01 percent, to end at a record 1,650.34, and the Nasdaq Composite Index climbed 23.82 points, or 0.69 percent, to 3,462.61, its highest close since November 2000.

During this morning’s session, the Dow hit an all-time intraday high of 15,219.55, while the S&P 500 climbed to an all-time intraday high of 1,651.10. The Nasdaq touched a fresh 52-week high of 3,468.67.

The market has traded sideways for the past three sessions, showing a gain of just 0.07 percent as the winding down of the quarterly earnings season and a light economic calendar have left investors without a strong catalyst for further gains.

The Dow’s gains were limited by weakness in Intel Corp, down 1 percent at $23.84, and UnitedHealth Group, off 1.1 percent at $61.73.

U.S.-listed shares of Sony Corp jumped 9.9 percent to $20.76 after billionaire hedge fund investor Daniel Loeb called on the company to spin off its lucrative entertainment arm.

Nokia Corp unveiled a new version of its Lumia smartphone line, but U.S.-listed shares fell 5.2 percent to $3.64. Research company Gartner said Nokia lost 5 percentage points of market share in the first quarter, falling to 14.8 percent.

Solar power companies’ shares fell after Trina Solar Ltd estimated lower panel shipments than a previous outlook and said its results would be hurt by a foreign currency exchange loss. The stock fell 8.8 percent to $5.41, while Yingli Green Energy slid 6.3 percent to $2.36.

Most corporate earnings have been better than expected this quarter. With 90 percent of the S&P 500 companies having reported results so far, 67.2 percent have topped earnings expectations, according to Thomson Reuters data, which is even with the average over the past four quarters. However, only 46.9 percent have beaten revenue expectations, below the 52 percent average over the past four quarters.

Volume was roughly 6.2 billion shares on the New York Stock Exchange, the Nasdaq and the NYSE MKT, just below the average daily closing volume of about 6.4 billion this year.

Advancers outnumbered decliners on the NYSE by a ratio of about 2 to 1, while on the Nasdaq, more than two stocks rose for every one that fell.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Look At Gold 15/05/2013

The value of binary options on the futures of the precious metal declined for a fifth consecutive day providing binary options investors with great profit opportunities on the negative side. The decline in the value of gold is further enhanced by the recent strengthening of the dollar. Silver and other metals, on the other side, retreated. Gold declined close to the psychological 1400 per ounce, intermediaries` physical holdings declined by 16% so far this year, losing 412 tons on a global scale. In case the value of the US dollar continues trending upward, binary options investors could expect the value of the precious metal to continue its decline, even though a brief correction might be possible. Institutional investors are yet to announce their holdings, by the end of the month, so the value of the commodity could potentially be significantly influenced by the numbers.

The graph clearly indicates the downward trend which originates from the beginning of the month. The numerous breaches of the Lower Bollinger Band suggest that there is a greater activity towards negative expectations, compared to positive ones. The 50 and the 200 Day Moving Averages provide solid grounds for the validity of an eventually detailed technical analysis, as the intersections of both coincides with pattern changes. The short term resistance level is set at this week` high at 1445 and an eventual breach of that level would signal that the already started correction could persist in the short to medium term. Short term support level is set at the psychological 1400 and in case the value of the metal drops below this level, binary options investors could expect the negative trend to gain even a more substantial momentum. The Relative Strength Index reads in the oversold territory so eventual short term bullish expectations could get paid off.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief look At Sony 15/05/2013

The value of binary options on the shares of Sony gained close to 12% after investor Daniel Loeb proposed the separation of Sony` s entertainment division from the holding company. The investor` s proposition is aimed at following the general TV business rally which has already reached a three and half years increase. The idea is basically for a sale of 20% of Sony` s movie, music and TV business in order for the independent company to benefit from a more disciplined management, investors` attention and a larger profit for the holding company. It is expected that Sony could potentially raise $6.1bln from the sale of its division. Comparing the market value of Sony with key competitors such as Disney, Lions Gate and CBS which are all at their all- time highs, Sony appears to have fallen behind them. More detailed fundamental analysis suggests that current market price is 8 times EBITDA and shares could potentially surge 60% more in case the unit is gets partially sold.

The graph provides a clear representation of the steep upward trend, which started at the beginning of the month. The change from 1560 to 2153 more than clearly expresses binary options investors` future expectations. The Bollinger Bands provide the relative range within which binary options should be trading. The short term support level is set at the bottom at 1560 as the level indicates bearish investors` aim. The intersection of the 50 and 200 Day Moving Averages coincides with the origin of the steepest increase, suggesting the presence of a great technical analysis` credibility. The short term resistance level is set at the top at 2153, but this level is expected to be surpassed as early as the next trading session. Although the Relative Strength Index suggests a forthcoming brief correction, binary options investors could potentially benefit from the longer term positive trend.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

Economic Events 15/05/2013

Israel Holiday – Pentecost (Shavuot)

00:00 KRW South Korean Unemployment Rate

Forecast: Previous: 3.2%

The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment. A higher than expected reading should be taken as negative/bearish for the KRW, while a lower than expected reading should be taken as positive/bullish for the KRW.

01:30 AUD Westpac Consumer Sentiment

Forecast: Previous: -5.10%

The Westpac Consumer Sentiment Index measures the change in the level of consumer confidence in economic activity. On the index, a level above 100.0 indicates optimism; below indicates pessimism. The data is compiled from a survey of about 1,200 consumers which asks respondents to rate the relative level of past and future economic conditions. A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.

02:30 AUD Wage Price Index (QoQ)

Forecast: 0.8% Previous: 0.8%

The Wage Price Index measures the change in the price businesses and the government pay for labor, excluding bonuses. It is a leading indicator of consumer price inflation. A higher than expected reading should be taken as positive/bullish for the AUD, while a lower than expected reading should be taken as negative/bearish for the AUD.

06:30 EUR French GDP (QoQ)

Forecast: -0.1% Previous: -0.3%

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

07:00 EUR German GDP (QoQ)

Forecast: 0.3% Previous: -0.6%

Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator of economic health. The quarterly percent changes in GDP show the growth rate of the economy as a whole. A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

07:00 EUR German GDP (YoY)

Forecast: 0.2% Previous: 0.1%

Gross Domestic Product (GDP) is the broadest measure of economic activity and is a key indicator of economic health. The quarterly percent changes in GDP show the growth rate of the economy as a whole. A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

07:45 EUR French CPI (MoM)

Forecast: Previous: 0.8%

The French Consumer Price Index (CPI) measures the changes in the price of goods and services purchased by consumers. A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

08:15 CHF PPI (MoM)

Forecast: -0.1% Previous:

The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation. A higher than expected reading should be taken as positive/bullish for the CHF, while a lower than expected reading should be taken as negative/bearish for the CHF.

09:30 GBP Average Earnings Index +Bonus

Forecast: 0.7% Previous: 0.8%

The Average Earnings Index measures change in the price businesses and the government pay for labor, including bonuses. The Average Earnings figure gives us a good indication of personal income growth during the given month. A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

09:30 GBP Claimant Count Change

Forecast: -3.0K Previous: -7.0K

Claimant Count Change measures the change in the number of unemployed people in the U.K. during the reported month. A rising trend indicates weakness in the labor market, which has a trickle-down effect on consumer spending and economic growth. A higher than expected reading should be taken as negative/bearish for the GBP, while lower than expected reading should be taken as positive/bullish for the GBP.

10:00 EUR GDP (QoQ)

Forecast: -0.1% Previous: -0.6%

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

13:00 BRL Brazilian Retail Sales (YoY)

Forecast: 4.2% Previous: -0.2%

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. A higher than expected reading should be taken as positive/bullish for the BRL, while a lower than expected reading should be taken as negative/bearish for the BRL.

13:30 CAD Manufacturing Sales (MoM)

Forecast: 1.00% Previous: 2.60%

Manufacturing Sales measures the change in the overall value of sales made at the manufacturing level. A higher than expected reading should be taken as positive/bullish for the CAD, while a lower than expected reading should be taken as negative/bearish for the CAD.

13:30 US Core PPI (YoY)

Forecast: 1.7% Previous: 1.7%

The Core Producer Price Index (PPI) measures the change in the selling price of goods and services sold by producers, excluding food and energy. The PPI measures price change from the perspective of the seller. When producers pay more for goods and services, they are more likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

13:30 US Core PPI (MoM)

Forecast: 0.1% Previous: 0.2%

The Core Producer Price Index (PPI) measures the change in the selling price of goods and services sold by producers, excluding food and energy. The PPI measures price change from the perspective of the seller. When producers pay more for goods and services, they are more likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

13:30 US NY Empire State Manufacturing Index

Forecast: 4.0 Previous: 3.1

The Empire State Manufacturing Index rates the relative level of general business conditions New York state. A level above 0.0 indicates improving conditions, below indicates worsening conditions. The reading is compiled from a survey of about 200 manufacturers in New York State. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

13:30 US PPI (YoY)

Forecast: 0.8% Previous: 1.1%

The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

13:30 US PPI (MoM)

Forecast: -0.5% Previous: -0.6%

The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

14:00 US TIC Net Long-Term Transactions

Forecast: Previous: -17.8B

Treasury International Capital (TIC) Net Long-Term Transactions measures the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreign investors. Demand for domestic securities and currency demand are directly linked because foreigners must buy the domestic currency to purchase the nation’s securities. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

14:15 US Industrial Production (MoM)

Forecast: -0.2% Previous: 0.4%

Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.