A Brief Overview of USDNOK 30/11/2012

The Norwegian krone had a pretty volatile week. It has been appreciating against its U.S. counterpart throughout the second half of November with no apparent signs of bottoming. On Tuesday, when the USDNOK reached 5.64, we finally saw some bulls returning to the market as the price of oil started moving on the downside. The traders of binary call options were the big gainers as the USDNOK shot up sharply higher, pushing above its 25-period, its 50-period and its 100-period moving average. After reaching 5.70 the currency pair lost some of its momentum as resistance started forming around this key level. The Norwegian currency struggled with this resistance for a while with the traders of binary range in options benefitting the most in the process. The choppy movement extended well into the Wednesday session with neither the bulls nor the bears able to prevail. Support started forming around 5.69, but it didn’t last for a long time as in the afternoon a strong demand for the Norwegian krone send it higher against the U.S. dollar. Traders of binary put options were the big winners this time as the USDNOK moved from 5.70 to finish the session at 5.6657. On Thursday the demand for the krone remained strong and that led to another decline in the USDNOK, which traded as low as 5.64 at one point during the session. The bulls, however, were once again able to recover, sending the U.S. dollar sharply higher versus the Norwegian krone. We again retested the 5.70 level, but it proved to be too serious of a challenge. The currency pair still finished around the highs for the day, at 5.6874. Today the Norwegian krone is putting pressure on the U.S. dollar once again, but the USDNOK is showing signs of bottoming. The price discrepancy between the highs and lows is becoming smaller and smaller, which can be seen as a sign of a trend continuation. If the support around 5.64 proves to be too much of a challenge for the bears, however, we might finally see a substantial correction of some sort. Oscillators are in mid-range with the relative strength index at 42 and the stochastic at 24. The MACD is issuing sell signals and is currently standing very close to the key 0 level.

 

Disclaimer:
The information in this 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 Overview of Binary USDCAD 30/11/2012

This week there were several closely monitored economic reports for the Canadian economy, which investors were eagerly anticipating. Since the reports were scheduled to be released later in the week, however, market participants formed their trading decisions mainly in a response to the price movement of commodities. On Monday the USDCAD gained as oil was losing ground almost all session long. The currency pair pushed both above its 25-period moving average and its 50-period moving average to touch highs of 0.996 in the afternoon. As crude recouped some of its earlier losses towards the end of the session, however, the Loonie started gaining strength and the USDCAD moved lower once again, providing users with binary put options with decent opportunities for making money. The currency pair finished the day at 0.9929, paring almost all the advances it had posted earlier on. On Tuesday the Canadian dollar continued its appreciation against its U.S. counterpart and the USDCAD posted its lowest level for the week – 0.9901. The move on the downside came once again in a response to the increase in the price of oil. In the early afternoon bulls finally regained some of their lost positions and send the USDCAD sharply higher, testing the resistance at the 100-period moving average on several occasions. They were unable to send the currency pair decisively higher, but the USDCAD finished around the highs of the session – at 0.9942. Wednesday was a relatively quiet day for the Canadian dollar as investors were preparing for the trade and inflation figures that were scheduled to be released on Thursday. The Loonie moved in and out of positive territory in the morning, shooting as high as 0.9961 at one point. The afternoon, however, offered a lot of opportunities for profit for the traders of binary put options as the USDCAD slipped to close around 0.9919. The Thursday session started even slower as most market participants were reluctant to enter into new positions ahead of the reports. The traders of range in options were the big winners of the subdued volatility. When the current account and inflation numbers were announced the volatility resumed to the markets with the USDCAD spiking both on the upside and on the downside. The data showed that the September current account deficit for the Canadian economy increased to 18.9 billion. Analysts were expecting a much more modest reading of 18.0 billion. To make the matters worse the figure for August was revised on the downside – from 16.0 billion to 18.4 billion. On a brighter note, the prices of raw materials showed no significant appreciation in October after rising by 1.3% in the previous month. Analysts were actually projecting the prices to have decreased by 0.4% in the month of October. After several sharp moves both on the upside and on the downside the USDCAD finished slightly below its 100-period moving average, at 0.9929. Today the Loonie is trading in a tight range again as market participants are anticipating the GDP numbers, which are to be released in the early hours of the afternoon. Economists are projecting the Canadian economy to have grown by 0.1% for the month of October after shrinking by 0.1% in September. Technically speaking oscillators are moving in mid-range with the relative strength index at 50 and the stochastic at 59. The MACD pushed above the key 0 level after bouncing off of the lows it touched yesterday.

Disclaimer:
The information in this 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 29/11/2012

After a disappointing opening yesterday both in the US and in Europe, market shrugged off early loss follow President Obama speech in regards to the US “fiscal cliff”.

President Obama didn’t say much but we did use the words “I will do whatever it takes” and he did express optimism that it can be done by Christmas. These words made a turn in the market from 90 point down to close at the high of the session with 106 points gain.

The markets are expected to react nervously for every piece of information concerning the “Fiscal Cliff” as there are substantial fears that the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.

On the other side of the Atlantic, in Europe, although international lenders agreed on a plan to cut Greek debt, which will allow the country to secure more financial aid and avoid a default, market skepticism grew over a lack of detail on how Athens will implement the reforms needed to meet its new targets.

 

The positive sentiment surrounding President Obama speech continued during the Asian session today with all exchanges despite Shanghai exchange close higher.

The Asian market closed higher despite disappointing numbers that came both from Hong Kong and Japan.

Japan retail sales for October fell from the year-earlier month, breaking a string of modest increases since December.

In another report, Census and statistics department said that Hong Kong Retail Sales fell to a seasonally adjusted annual rate of 4.00%, from 9.40% in the preceding month.

Later in the day, Italy is expected to go back to the market with another auction of its 10-year government bonds, while the U.S. was to release preliminary data on third quarter growth as well as the weekly government report on jobless claims.

 

Asset in Focus

Gold

futures fell sharply yesterday with a heavy volume despite little news in the sector. This sell-off was attributed to a large future seller that dumps the Gold future contracts and to an estimate raise made to the US GDP numbers that will came out later in the day today. Further improvements in the US economy might cut back the QE3 program announced in September.

The futures rebounded from the previous day’s sell-off on Today, as market players continued to monitor negotiations among U.S. lawmakers to avoid the looming “fiscal cliff” crisis.

Follow yesterday sell off and ahead of the US GDP numbers today, our recommendation is to stay side lines and wait to see how it plays out.

Daily Market Review 28/11/2012

This Asian session morning we are getting favoring moves for the Forex for USD and the JPY across the board. The details of the bailoyut plan for Greece continued to worry investors, leading to a move to safe heaven assets and a sell down in pairs like the binary EURJPY. Forex traders noted various news reports and economic research which questioned the Greek loan plan agreed upon at the end of Monday’s meeting of Eurozone finance ministers. Eurozone leaders agreed regarding new financing for Greece, but the time taken and the lack of clarity how targets will be met underline how tough has it been to agree on this.

Speculative accounts rode on the move to take aim at binary EURJPY stop loss sell orders believed to be below 106.00 the cross deflated to 105.52 before rebounding to 105.70. That pulled binary USDJPY down from an early 82.20 high to 81.72, Forex traders are aiming at 81.60 from the current rate around 81.80. Binary EURUSD meanwhile was at 1.2933, after a more subdued range in Asian trading between 1.2945 and 1.2912 on the downside. Moves in the pair were largely a consequence of euro-yen action according to dealers, while binary EURUSD puts have been spotted just under 1.30.

Forex for Asian stocks fell on Wednesday after stocks on Wall Street dropped overnight on mounting concerns about the progress of U.S. budget reform talks in averting the looming “fiscal cliff” at years end. The Nikkei dropped 1.22% to 9308.35, while the broader Topix index fell 1.31%.

Reports surfaced that there is a substantial sentiment among Federal Reserve policymakers to continue buying at least 85bln worth of bonds per month into 2013 to keep downward pressure on long-term interest rates, chasing a “substantial” improvement in labor market conditions. The current monthly purchase mix of $40bln in mortgage backed securities and $45bln in Treasury bonds  could well be prolonged into the new year, with the difference that instead of being financed with short term paper sales as under Operation Twist, the purchases would be financed with creation of new bank reserves. This should prove supportive for risk assets such as stocks, indices, the EUR and the AUD and provide great opportunities for Forex traders.

A Brief Analysis of Binary GBPJPY 27/11/2012

This US morning we will take a short term view on Forex for GBPJPY. At least for today the GBP is winning the heaven race. Forex for EURGBP selling accelerated in the wake of a false break of 1.3000 and the Greek fudge. The selection for Mark Carney as future Bank Of England governor is seen as a short term boost for now, it remains unknown for how long will this last, as the structural differences between Canada and the UK are substantial, yet the UK has been tackling its debt issues. Binary GBPJPY is not up much, primarily because binary JPY is oversold and we are seeing some profit taking. General drop in risk appetites today also propped up the generally hated yen these days. The cross binary GBPJPY flirted with 132.00 today but so far has not been successful in breaching the level.

Near term we advise to play the Range between 131.00 and 132.00 in binary GBPJPY, so buy binary call options from 131 and sell binary put from 132. Be advised that any developments around a potential fiscal cliff deal (or protracted gridlock) will most certainly trigger a break, so keep a close eye on fundamentals.

Check our provided 30 minutes chart for clues on potential support and resistance levels. 1st support is currently around 131.35-131.45, followed by 131.10 and finally the figure at 131.00. 1st resistance is at 132.00 followed by 132.07 the top from this morning and the major resistance at 132.50

Daily Market Review 28/11/2012

The key question in Europe at the moment is saving countries and recapitalization of banks. In the US attention of all is focused at the negotiations about the fiscal policy. The interest for risky assets has declined. Analysts assume that next year the Dollar will appreciate against the Euro and the Yen. Also they forecast that by 2014 the pace of the GDP growth will constitute 2% against the previous average figure of 1.26%. Amid the reasons for such scenario were the successful solution of a fiscal issue, the restoration of American real estate market and also the growth of private expenditure and customers’ trust. Analysts worldwide also expect the US Dollar to become the absolute favorite among the main currencies. The American economy is forecasted to grow faster than the economies of other G-10 countries. Overall, prediction for the foreseeable future in a certain way shape the sentiments of the market about the present situation, as the forecasts are deeply rooted in the current state of economy. To round it off the market looses trust to the European economy and turns with hope to the USA, which struggle to overcome the crisis has been much more productive and successful so far.

CURRENCIES

EURUSD

The Euro depreciated against the US Dollar from 1.3008 to 1.2915. The Greece factor is very important especially against the background of absence of good news from Europe. Thus there are no solid reasons to believe that the Euro will be able to grow in the forseeable future. The resistance above is 1.3050.

USDJPY

The US Dollar depreciated against the Yen from 82.30 to 81.78, with further bounce to 81.88. Analysts mark that the recent growth of the US Dollar against the Yen was the result of tough statements of Shinzo Abe made during an election campaign. Further consolidation of the pair is expected, taking to consideration the fact that the market would like to see now some clarification of the situation around elections. The growth of the Dollar in the pair is forecasted to the level of 85.00 in around 3 months, so there is no reason to rush with purchases as new more beneficial levels are expected.

GBPUSD

The Pound depreciated against the US Dollar from 1.6055 to 1.6008. The market hopes for the preservation of high demand for the British currency while there are Euro sales. The boundary above is the level of 1.6130. But reaching of this level is possible only by breaking of the resistance at 1.6060. Anyway technical picture looks quite bad for the Pound. The further development of the downtrend scenario suggests the loss of the key support at 1.5860 and subsequent slip to 1.5820.

Economic Events 28/11/2012

00:30 AUD Construction Work Done (QoQ)

Forecast: 2.7%                      Previous: -0.2%

Construction Work Done measures the change in the total value of completed construction projects. It provides an early indication of trends in building and engineering construction activity. The data is an estimate, based on a survey of approximately 80% of the value of both building and engineering work done during the quarter. 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.

Tentative GBP Nationwide HPI (MoM)

Forecast: 0.2%              Previous: 0.6%

The Nationwide Housing Price Index (HPI) measures the change in the selling price of homes with mortgages backed by Nationwide. It is the U.K.’s second earliest report on housing 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.

08:00 EUR Spanish Retail Sales (YoY)

Forecast: -11.5%              Previous: -10.9%

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 EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

13:00 EUR German CPI (YoY)

Forecast: 1.9%              Previous: 2.0%

The German 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.

13:00 EUR German CPI (MoM)

Forecast: -0.1%              Previous: 0.0%

The German 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.

14:30 BRL Brazilian Foreign Exchange Flows

Forecast:                   Previous: 3.51B

The indicator shows the amount of capital flows that is directed to the country by foreign investors. Capital flows are essential for developing and emerging markets. They contribute to enhancing investments and financing current account deficits. 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.

15:00 US New Home Sales

Forecast: 390K                   Previous: 389K

New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it’s released ahead of Existing Home Sales because the reports are tightly correlated. 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.

17:15 CHF SNB Chairman Thomas Jordan speaks

Swiss National Bank (SNB) Chairman April 2012 (Acting Chairman January 2011 – April 2012; Vice Chairman May 2007 – January 2011; In January 2010 his title changed from Board Member to Vice Chairman) Thomas Jordan is to speak. As acting head of the SNB Governing Board, which sets short term interest rates, he has a major influence over the value of the Swiss franc. Traders watch his speeches closely as they are often used to drop subtle hints regarding future monetary policy and interest rate shifts. His comments may determine a short-term positive or negative trend.

19:00 US Beige Book

The Federal Reserve’s Beige Book is a report on current economic conditions in each of the 12 Federal districts in the U.S. It gives a picture of economic trends and challenges in the U.S. It is released 8 times a year, 2 weeks before each Federal Open Market Committee meeting. The report is used by the FOMC in their decision on short-term interest rates. An optimistic outlook should be taken as positive/bullish for the USD, while a pessimistic outlook should be taken as negative/bearish for the USD.

Tentative BRL Brazilian Interest Rate Decision

Forecast: 7.25%          Previous: 7.25%

The Central Bank of Brazil’s (BCB) Monetary Policy Committee votes on where to set the overnight interest rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation. A higher than expected rate is positive/bullish for the BRL, while a lower than expected rate is negative/bearish for the BRL.

23:50 JPY Retail Sales (YoY)

Forecast: -0.7%           Previous: 0.4%

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 JPY, while a lower than expected reading should be taken as negative/bearish for the JPY.

 

Daily Analysis 28/11/2012

U.S. equities moved higher in the afternoon part of the trading session after trading lower in the morning, providing traders of both binary call options and of binary put options with plenty of opportunities to make money. All major indices finished close to the highs for the session after President Barack Obama and Speaker John Boehner announced some positive news on the “fiscal cliff” problem. The Dow Jones Industrial Average advanced 106.98 points, or 0.83%, to finish at 12,985.11, propelled higher by Hewlett-Packard and Chevron, after trading with a triple-digit loss earlier in the day. At the same time the S&P 500 added 10.99 points, or 0.79%, to close at 1,409.93. The tech-heavy NASDAQ rose 23.99 points, or 0.81%, to end at 2,991.78. The CBOE Volatility Index, considered by many as the best indicator of fear in the market, finished below 16. All major S&P sectors closed into green territory, with consumer discretionary and energy among the best performers. U.S. stocks moved both up and down in the previous couple of trading sessions as market participants reacted to different statements, coming from Washington. All major indices declined during the last trading hour on Tuesday after Senate majority leader Harry Reid told reporters almost no progress was made in handling the “fiscal cliff” issue. On the economic front, the Beige Book report was released, according to which the U.S. economy grew at a moderate pace in the previous couple of weeks. Five of the twelve districts under the Federal Reserve’s supervision issued warnings about their growth prospects for the next year, citing the fiscal cliff problem as the main reason. In individual stock news Costco gained after the company said it will issue a special dividend of $7 after announcing better-than-expected sales. Knight Capital shot up after the market maker received an offer from Getco of $3.50 per share. Among earnings, Green Mountain Coffee Roasters rose after the company beat the market’s projections and also announced better-than-expected guidance for the quarter and for the year.

Asian stocks moved to a fresh new three-week high on improved sentiment among market participants as a senior U.S. lawmaker told reporters that he is optimistic about reaching a solution to the “fiscal cliff” issue. The FTSE CNBC Asia 100 Index, which tracks the performance of Asian markets, added 0.5%. The Japanese benchmark Nikkei index bounced from the one-week closing low, which it touched in the previous session as demand for risky assets among investors increased. Retail sales in Japan dropped 1.2% for the month of October on a year over year basis, which renewed talks among investors that the economy is falling into recession. The Japanese blue-chip index gained 1.0% on Thursday to trade at 9,400.88 points, moving ahead its five-day moving average of 9,377.65. The broader Topix index rose 1.0% to finish at 779.44. Hong Kong stocks advanced on Thursday, posting their first positive session in four days, with the blue-chip Hang Seng Index gaining 1% to 21,816.6 and the China Enterprises Index of the best Chinese companies in Hong Kong advancing 1.1%. In the mainland, the Shanghai Composite lost 0.1% to trade at 1,971.16 after moving close to a four-year low yesterday. Seoul stocks gained, posting their highest reading in three weeks as market participants moved their money to higher-yielding assets. The Korea Composite Stock Price Index (KOSPI) added 1.15% to finish at 1,934.85 points, which is the benchmark’s highest closing since November 7th. In Australia equities advanced 0.7% to close at their highest level in three weeks, propelled higher by banks and by gains of the mining company Rio Tinto, which gave a better-than-expected outlook for the year on China. The benchmark S&P/ASX 200 index added 30 points to trade at 4,477.7, which is its best reading since November 8th. In New Zealand the benchmark NZX 50 index added 0.1% to close 4,016.8 points. In India, the BSE Index moved 0.8% higher, pushing above 19,000 points for the first time since October 5th, while the NSE Index rose 0.7%. In Singapore the benchmark Straits Times Index climbed 0.9%, while Malaysia’s KL Composite added 0.3%.

European equities are projected to open higher on Thursday with the traders of binary call options expected to be the big gainers as market participants grew increasingly optimistic about the resolution of the “fiscal cliff” issue. The FTSE futures are trading 17 points higher, at 5,820, while the DAX is expected to open with a gain of 31 points, at 7,374. The French CAC is called 11 points higher at 3,526. The French government announced that it is in talks with a potential investor, who is willing to pay 400 million euros for the assets sold by ArcelorMittal. In the U.K. investors are eyeing the Leveson Report, which is focused on how the regulation of the British media should be conducted. On the earnings front, API, Dixons, Paypoint, RPC Group and Pennon Group are expected to announce their results for the quarter in the U.K. In Germany Envitec Biogas, Indus Holding, First Sensor and Sunways are among the companies to release earnings for the previous quarter.

Daily Review of Forex markets 28/11/2012 – US opening

Forex traders were able to benefit significantly from today’s commodity markets. The price of Crude Oil shred $1.20 off its value, breaking below $86.00 per barrel. Monday and Tuesday the black gold closed negative both days, but today’s decline tends to bring the market much lower. In the same time Gold fell to 1710, losing 1.6%. The economic calendar offers only one major piece of news from the U.S. that’s due at 3 p.m. GMT. Government report is goind to show the New Home Sales which are expected to be the same as previous month at slightly below 390 thousand. If it comes higher than estimate the falling indices market could slow down. S&P 500 futures are currently trading at 1389 as yesterday the bears pushed the price below 1400 and today the bulls were not able to turn the tide.

Warren Buffet announced that he expects Washington lawmakers to come up with a compromise decision on the “fiscal cliff”, but according to him it’s more likely to happen after Jan. 1 2013. Dow Jones is currently down to 12809 as investors are seriously worried about the impact of the fiscal cliff. NASDAQ Composite lost 0.7% to 2946. Across Europe the market mood is definitely bearish as FTSE, DAX and CAC lost between 0.4 and 0.7%. Germany’s main benchmark dropped below 7300 points, currently bid at 7283. CAC40, representing France’s 40 biggest public companies shred 14 points to 3488.

Shares of Apple Inc. should be preferred today for trading put options by Forex traders. The stock closed just below $545 per share. Today the falling stock futures lead to gap opening for the world’s most valuable company that lost more than 1 percent on the very open and is currently trading at $572 per share. Facebook is continuing its recent days’ rally during which it returned above $25. Today the price opened lower than yesterday close but quickly rebounded and advanced 0.2% as for 10:07 am New York time. Morgan Stanley lost 1.5% compared to the close of yesterday session and even broke below the open. Tuesday was a good day for investors in the bank as shares gained more than 1%, reaching as high as 16.82. Citigroup is tumbling today, losing almost one dollar, percentagewise nearing 3%. McDonald’s as usually is stable during times of fear and uncertainty as its business has very loyal client base. Shares of the company are losing only 0.2% at the current bid of 85.75 dollars. Despite it is on a new weekly low, the breakout below 85.90 that happened today is expected to fail.

The currency market provided good opportunities to Forex traders as the dollar strengthened, gaining 0.37% over the Euro as the pair dropped below 1.2900 and is currently 10 pips lower. The Britihs Pound was also sold versus the greenback. The pair failed to break above 1.5050 during the first two days of the week. Currently one Pound buys you 1.5972 U.S. dollars. USD/JPY lost 0.18% as the Yen today is the only major currency that records advance over the greenback. USD/CAD started around 0.9940 and in the early European session broke below it, reaching 0.9930 but as the markets started moving it took the positive-dollar direction. Currently the exchange rate is 0.9950. AUD/USD formed a double bottom at 1.0430 and jumped 20 pips, nearing the daily open at 1.0455. NZD/USD is currently trading at 0.8221, 0.05% on green territory. Forex traders should trade mainly options based on commodities and currencies Forex.

Economic Events 27/11/2012

02:00 NZD Inflation Expectations (QoQ)

Forecast:                       Previous: 2.3%

Inflation Expectations measures the percentage that business managers expect the price of goods and services to change annually during the next two years. The data is released quarterly. 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.

07:00 EUR German Import Price Index (MoM)

Forecast: -0.3%                      Previous: -0.7%

The German Import Price Index measures the change in the price of imported goods purchased domestically. 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.

08:30 HKD Hong Kong Trade Balance

Forecast: -35.2B                      Previous: -45.2B

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 HKD, while a lower than expected reading should be taken as negative/bearish for the HKD.

09:00 GBP GDP (YoY)

Forecast: 0.0%                      Previous: 0.0%

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 GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

09:30 GBP Business Investment (QoQ)

Forecast: 1.3%                      Previous: 0.9%

Business Investment measures the change in the total inflation-adjusted value of capital expenditure made by companies in the private sector. 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 GDP (QoQ)

Forecast: 1.0%                      Previous: 1.0%

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 GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.

13:30 US Fed Chairman Bernanke Speaks

Federal Reserve Chairman Ben Bernanke (February 2006 – January 2014) is to speak. As head of the Fed, which controls short term interest rates, he has more influence over the U.S. dollar’s value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy. His comments may determine a short-term positive or negative trend.

13:30 US Core Durable Goods Orders (MoM)

Forecast: -0.5%              Previous: 2.0%

Core Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, excluding transportation items. Because aircraft orders are very volatile, the core number gives a better gauge of ordering trends. A higher reading indicates increased manufacturing activity. 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 Durable Goods Orders (MoM)

Forecast: -0.5%              Previous: 9.8%

Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, including transportation items. 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.

15:00 US House Price Index (MoM)

Forecast: 0.4%              Previous: 0.7%

The House Price Index (HPI) is a broad measure of the movement of single-family house prices, with mortgages backed by Fannie Mae or Freddie Mac. This report helps to analyze the strength of the US housing market, which helps to analysis the economy as a whole. 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.

15:00 US CB Consumer Confidence

Forecast: 73.0                 Previous: 72.2

Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism. 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.

17:00 UD 2-Year Note Auction

Forecast:               Previous:0.295%

The figures displayed in the calendar represent the yield on the Treasury Note auctioned. U.S. Treasury Notes have maturities of two to ten years. Governments issue treasuries to borrow money to cover the gap between the amount they receive in taxes and the amount they spend to refinance existing debt and/or to raise capital. The rate on a Treasury Note represents the return an investor will receive by holding the note for its entire duration. All bidders receive the same rate at the highest accepted bid.Yield fluctuations should be monitored closely as an indicator of the government debt situation. Investors compare the average rate at auction to the rate at previous auctions of the same security.