Tag Archives: PMI

Economic Activity

Forex and binary option market news – 4th week of September 2014

Long live the queen! The ballots have been tallied and it is a big “no” for the hopeful’s of Scottish independence. The currency markets and in particular the British pound pairings were very active and reactive to the outcome of Scotland’s independence vote. The U.K. stays united, but the sterling gave way to considerable volatility in the market. Savvy short term trader’s were able to cash in on handsome profits for their trading day.

The votes are in…were you one of the winner’s? I hope you took advantage of riding that wave of small money made big profit.

Now onto the market news that may impact your trading week:

  • For the Euro – The European Central Bank, known as the ECB, president will be speaking. President Draghi has been encouraging the euro zone on reform of investment policy. He will be continuing this trend of creating a “business friendly” approach to regulation that may help stimulate anemic economic growth. We hope that he provides a more defined direction on investment policy for the euro zone economies to grasp and pursue.
  • Flash manufacturing PMI, known as the Purchasing Manager’s Index, will be released this week for the Chinese, French and Germans. These announcements may cause a stir in volatility for their respective currency pairings based on what the number’s reveal. Will we see an uptick in expansion or will we see a trend towards contraction continuing to reveal a bump on the road for Asian and euro zone economies? There doesn’t yet appear to be significant economic traction as we head into the last quarter of the year.
  • Canada’s month over month retail sales numbers. We will look to see if the “loonie” reveals looney retail activity as we approach the last quarter of the year and the season’s holiday spending. It wouldn’t be surprising  to see if the overall sector has slowed from previous month’s as the “dog days” of summer 2014 are in the rear view mirror.
  • New Zealand- The kiwi’s trade balance which is forecast to ride at a deficit may be continuing a trend from last month’s numbers.
  • The release of German business climate . This leading indicator of economic growth may have a significant impact on your Euro pairings as the data reveals what we may anticipate going forward, in terms of economic business activity, going into the last quarter of the year.
  • USD announcements this week include:

– New home sales – With slow activity on the real estate market forefront     beginning to rear it’s head it wouldn’t be surprising to see less than stellar numbers. The typical “slow down” of the real estate season may be approaching with a louder wimper than what would be preferable.

– Durable and core durable goods orders – A number that may continue to see contraction

– Unemployment claims – We’ll see if this lagging indicator shows improvement as we approach the holiday hiring season where a boost in job openings may be in order.

Always check out the economic events calendar on our menu above to receive all the economic events that affect your trading week.

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