Euro vs. USD

Market News Update 1/25/15 thru 1/30/15

The euro is well on its way to taking a beating at the hands of the USD.  Are you hedging your trades on the winning side?

Is the sky falling, as we continue to see big time volatility plaguing the currency markets? Like a magnet glued to the bottom of the euro we are seeing the currency plummet to levels we haven’t experienced before.

Euro zone Q.E. has finally arrived at a rate of 60 billion euro’s per month of government bond purchases. We’ll see what kind of real sex appeal it can muster to boost the economy out of looking like the ECB just put lipstick on a pig.

jessica rabbit euro1

Parity appears to be the new buzz between the euro and the USD. With support levels being shattered, it looks like we are headed straight for a 1:1 ratio between the two currencies.

Let’s take a look at the key releases this week that may impact your currency trading pairs:

For the Euro – With the Greek election looming and early predicted results on the weekend horizon, we will continue to see the volatility that will strike your euro pairings. Will we be seeing a Greek exit from the euro? Chances are, if the front running Syriza party comes away with a win they will need to come to terms with creditors that bailed out the sinking economy. If this does not come to fruition, we look to see rumbles of a defection and added weakness to the euro.

German Ifo Business Climate, month over month Preliminary CPI, year over year CPI and Core CPI Flash Estimate.

German sentiment can be none too happy with the European Central Bank’s announcement of quantitative easing, but will have to accept the consequences in hopes of leading the euro zone through an injection of stimulus that will have it shooting with adrenaline through out 2015.

For Germany, being the strongest player in the euro “league” may come at a price to its own economy. Although, for the euro, parity may not be half bad. Exports may be the key to stimulate growth along euro zone industries. To look on the bright side of an other wise gloomy cloud, in the longer run, this may create an opportunity for a win-win scenario for Germany and the weaker euro players.

For the Asian markets on this week’s event calendar:

The Yen – Trade Balance numbers released this week look to have limited impact on market movement as the currency is relatively quiet for the week and could find itself void of any significant opportunity for profit reaping volatility.

Later on in the week we will have the release of China’s Manufacturing PMI which, if the data comes in weak, may at least,  send a ripple through your Asian currency pairings (Yen, Kiwi, Aussie).

The Kiwi – Official Cash Rate, Reserve Bank of New Zealand Rate Statement and Trade Balance.

In light of developments in the forex market, will the Kiwi start to sprout the wings of a hawk? Don’t be surprised to see the Reserve Bank hovering on hints of a rate increase that will be emboldening strength to the countries commodity staples.

The Aussie – NAB Business Confidence, quarter over quarter CPI  and quarter over quarter PPI.

The Aussie took a few surprising hits this last week, but the fundamental numbers for this week hope to steady the currency going forward into next month.

To the London session and the Sterling – quarter over quarter Preliminary GDP appears to be the only major release this week that may spark market movement. Steady as she goes climbing with numbers that may indicate strength against the euro.

The USD – Packed with a slate full of releases that may have significant impact on your USD currency pairings.

Month over month Core Durable Goods Orders, CB Consumer Confidence, New Home Sales, Federal Reserve Statement, Federal Funds Rate, Unemployment Claims and quarter over quarter Advance GDP.

Everybody needs to be keyed in on the verbiage that will be utilized by the Fed’s to indicate when a rate increase is on the horizon. Yellen and the Fed’s, I’m sure, will be talking patience as they will be playing their cards close. Don’t anticipate “over exuberance” based on the economies strengthening numbers and the strength of the dollar as the bigger picture will be in focus. The Fed’s will be holding their hand tight. They may leave us hungry on when interest rate “belt tightening” will begin, but so far it appears to be an early summer hors d’oeuvre.

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The trading world has gone mad! Time to Profit…

Market News for 1-19-15 through 1-23-15

Wow! Shocks and after-shocks ripple through the currency markets, as the Swiss Central Bank makes the decision to abandon its policy of capping the Swiss Franc against the Euro.

Talk about a bang of volatility to start out the 2015 trading year…but guess what? Being a savvy trader with an awesome trading system, like the ones from Small Money Made Big, will have you hopping on board a ship-load of profits from this volatile market.

With developments of last week’s decision from the Swiss Central Bank and the downward spiral on oil prices, all traders need to perk up to the news releases that will affect your currency pairings. As always, check out our news event calendar that will keep you in the loop for your trading day.

swiss cheese ripples in water

 

 

 

 

 

 

We have a lot of “tongue in cheek” fun, bringing you these news updates each week, but we do it for a reason. When you’re aware of the fundamental news that impacts your trading day, the better you will be able to execute technical trades that keep you “in the money” time and time again. Get a gauge on how the timing of these high impact releases affect market movement in real time.

Now let’s look at what lies ahead for this weeks major news releases, that may impact your currency pairings:

The Yen– This week’s Monetary Policy Statement and Bank of Japan Press Conference will provide some clue on the direction that the BOJ will be heading as they look to improve their economic concerns of deflation and if more easing is needed to stir the economy out of its doldrums.

The Kiwi (NZD)– New Zealand’s Institute of Economic Research Business Confidence Index,  Global Dairy Trade Price Index and quarter over quarter CPI.

The kiwis may look to position a heavy hand towards their commodity markets. They may see themselves flushed red with impacts from China’s output and export concerns, to ties with the Euro zone economy looking flimsy. This may have left the kiwi flailing for the safety and strength of their commodities market.

The Euro – German Economic Sentiment, French and German Flash Manufacturing PMI,  The minimum Bid Rate and ECB Press Conference.

President Draghi and the (ECB) European Central Bank have a huge uphill climb. Now having to take into consideration the uncapping of the Swiss Franc, the approach to stimulate growth and how much quantitative easing will be appropriate, that will have everybody on board. A bounce back of the euro zone economy looks like a raggedy arse clown on the horizon, laughing at the ECB.

The Sterling  (GBP) – Average Earnings Index, Claimant Count Change, MPC Official Bank Rate Votes and month over month Retail Sales.

Reaction by the Monetary Policy Committee to last week’s Swiss Central Bank’s decision ridding itself of the self imposed cap, will way heavily on the  vote. Ripples of uncertainty will continue to make it’s way through as we move forward for the quarter. Retail Sales look to exceed low expectations, but the overall look does not bode well, as consumer strength appears to be waning.

The Loonie (CAD) – Month over month Manufacturing Sales, Wholesale Sales, BOC Monetary Policy Statement, Rate Statement, Overnight Rate and BOC Press Conference.

The Loonie is in for quite a few releases this week; all of which can be anticipated to tie in with developments in the oil markets. Will the Bank of Canada show a shift in its policy and approach, in response to tumbling oil prices? Even with continued weakness in the euro sector, you may expect to see some weakness as commodity pricing may way heavy on the Loonie currency pairings.

The USD -Building Permits, Housing Starts, Unemployment Claims and Existing Home Sales.

It’s all about US Dollar for those seeking strength. Although releases have been less than stellar for the last couple of weeks, it appears that the only game in town for any semblance of strength is the good ‘ole USD.

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Is the USD the only game in town?

Market news update 1/12 thru 1/16/2015

As 2014 is in the rear view mirror, it ended with a spark of hope for the U.S. economy and the arrival of 2015 rolled in with a bang. Optimistic Americans are looking forward to having this be the year where economic prosperity reigns supreme.

This may be a rosy outlook for what lies ahead as 2015 appears to be the year of uncertainty. This year looks to produce plenty of volatility that will bring prosperity to savvy traders that look to be “in the money” throughout the year.

The week is heavy laden on what’s going on with the USD.

Let’s look at what’s on tap for this week’s major market news releases that will have an impact on your currency pairings:

trader with money bags

The Aussie – Employment change and unemployment rate. The employment change looks to continue its third straight month of beating expectations with better numbers than anticipated.

The Euro – European Court of Justice Ruling – Wednesday’s ruling on the legality of the Euro Stability Mechanism and Fiscal Compact will trigger market movement on Euro pairings, based on the ramifications that flow from the court’s decision.

The Sterling – Year over Year CPI. Expectation looks to be low, as confidence in keeping inflation numbers respectable, appears to be waning.

The USD – Retail Sales, Core Retail Sales, month over month PPI, unemployment claims, Philly Fed Manufacturing Index, month over month CPI, Core CPI and Preliminary University of Michigan Consumer Sentiment.

For now, it is safe to say that the USD will continue flexing its strength for the first half of 2015. We will need to keep a close eye on the ripple effect for the USD, as oil prices may continue to tumble. For all the positives associated with lower oil prices, we can’t overlook the potential negatives that might be looming.

Lower oil prices may provide the consumer with a few extra spending dollars in their pocket, but the ripple effect may lead to layoffs. Even though the U.S. employment numbers were strong, ending 2014 with momentum; the continued free fall in oil prices may pose a threat in reversing the gains that have been helping the U.S. economy climb out of the doldrums.

Stay tuned to Small Money Made Big for all of your market news updates that have an impact on your currency pairings.