Against the backdrop of announcements of lower than expected results of various economic indicators in the US, Germany and elsewhere, the week ahead will see the announcement of many more figures that are expected to increase the volatility in the markets and will affect the prices of currency pairs as well as commodities, stocks and indices all over the globe, to some extent at least. This particularly true for the performance of the USD, since this week will see the announcement of data which had recently been postponed or pushed back due to the recent partial shutdown of the US government.
We expect that the coming week will be characterized by numerous moments of volatility in the global markets, giving rise to various opportunities for binary options traders. Let us have a closer look at the events that will shape the trading week ahead. Please note are all times cited are GMT.
Monday, 28th October 2013
Monday is expected to be relatively quiet in terms of major announcements. Binary options traders should look out for the reading at 12:00 of the Confederation of British Industry (CBI) Distributive Trades Survey (DTS), which measures the health of the retail sector and the effect this reading could have on the GBP.
In the USA, we will have at 14:15 the announcement of the figure for Industrial Production, which in essence measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities. Moreover, at 15:00 the National Association of Realtors (NAR) will publicize its Pending Home Sales Report, which measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction. Watch out for the impact of these two announcements on the USD.
The last interesting development for Monday will be a speech by the Reserve Bank of Australia (RBA) Governor Glenn Stevens at 23:30. Watch out for any hints regarding a possible interest rate shift and other future monetary police plans and assess the effect that these will have on the AUD.
Tuesday, 29th October 2013
Tuesday sets off with the announcement in Japan of the Retail Sales figure at 00:50 by the Ministry of Economy, Trade and Industry. Look for this important indicator as it will affect the faring of the JPY.
At 08:00 eyes and ears should move to Germany for the announcement of the Gfk German Consumer Climate Index, measuring the level of consumer confidence in economic activity. This announcement could have an effect on the EUR.
Today’s highlight however, comes in the form of much anticipated figures regarding the U.S. economy with a series of announcements at 13:30 which include Core PPI data (YoY and MoM), the very important Core Retail Sales (MoM) figure as well as Producer Price Index data (both YoY and MoM). All these are expected to impact the trading of the USD and so is the reading of the Conference Board (CB) Consumer Confidence report, which will be announced at 15:00.
Wednesday, 30th October 2013
Today is extremely busy in terms of economic developments and economic indicators being announced. The day sets off at 00:00 with the South Korean Industrial Production data, followed by Japanese Industrial Production figures being publicized at 00:50.
The day is very busy over in Europe as well, as it sets off at 09:00 with the data concerning the Spanish GDP, followed at 09:55 by the announcement of data concerning unemployment in Germany. At 10:00 the Norwegian Core Retail Sales figure and Unemployment Rate will be announced, while at 11:10 we will learn the average yield for the Italian government bonds auction, the Buoni del Tesoro Poliannuali. Finally for Europe today, the Deutsche Bundesbank will announce at 11:30 the average yield for the German 10 Year Bund Auction. As expected, all of these announcements will cause high market volatility for the EUR.
Moving on to the US, developments and economic indicator announcements are plentiful here as well today and therefore the USD is expected to also go through market volatility. This is because at 13:15 the ADP National Employment Report, which is a measure of the monthly change in non-farm, private employment, will be announced, followed shortly after at 13:30 by the publication of data concerning the Consumer Price Index. Later on, at 19:00, the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) will vote on where to set the interest rate and will then issue a statement containing the result of this vote as well as a discussion of the economic outlook through the eyes of FOMC members. The clues from this announcement will be very interesting to and useful for investors.
Wednesday closes with yet another important announcement this time from New Zealand at 21:00, when the Reserve Bank of New Zealand’s rate statement will be publicized and will have an impact on the NZD.
Thursday, 31st October 2013
High market volatility is expected today as well, since Thursday is packed with announcements of key economic indicators. This truly busy day will start in Australia with the announced by the Housing Industry Association (HIA) of New Home Sales figures. At 01:30, again in Australia, we will have the announcement of Building Approvals (permits) data, as well as export prices figures. All of these are expected to impact the faring of the AUD. Over in Japan, the JPY is expected to be affected by an interest rate decision which will come today and be followed by a press conference by the Bank of Japan (BOJ), which will be explaining the rate decision as well as offering insights into future monetary policy decisions.
Over in Europe, at 08:00 we will see the announcement in Britain of the Nationwide Housing Price Index (HPI), which measures the change in the selling price of homes with mortgages backed by Nationwide. This report is very useful in terms of housing inflation in the UK. French Consumer Spending data will be announced at 08:45, while important economic indicators for the eurozone and Europe as a whole will be released by Eurostat at 11:00, in the form of Core CPI and CPI data as well as unemployment figures, all of which will mean high volatility for the EUR.
On the other side of the Atlantic, at 13:30 we will have the release of fresh GDP data on a monthly basis for Canada, with the associated influence on the CAD. Finally in the US Continuing and Initial Jobless Claims data will be released at 13:30, while at 14:00 U.S. Treasury Secretary Jack Lew is expected to deliver a speech, which we should follow closely to look for any signals indicating a policy shift. These developments might have a short term effect on the USD.
Friday 1st November 2013
The week concludes in a quieter manner, although important announcements are expected today as well, mostly in Asia. The day sets off at 00:00 with the announcement of the South Korean CPI data, while at 01:30 the Producer Price Index figures for Australia will be unveiled. An important day for the CNY as at 02:00 the Chinese Manufacturing PMI will be released followed by the Chinese HSBC Manufacturing PMI, a leading indicator for the whole Chinese economy, being publicized at 02:45.
PMI data will also be released elsewhere today and we will draw attention to the announcements in Switzerland, where the SVME PMI will be announced at 09:30, followed, an hour later by the Manufacturing PMI in the UK. At 14:30 the RBC Manufacturing PMI will be announced in Canada, while the day concludes in the US with the publication of the ISM Manufacturing Index at 15:00.
