Have you ever had one of those trading setups that fail in dramatic fashion? One reason for that dramatic flop could have been due to a scheduled news event.
Economic news releases have the ability to drastically affect the financial markets. Depending if market expectations are in line with the economic news or not, this can originate price action to oscillate rapidly, increasing volatility and widen trading spreads.
It is important to remember that spreads are variable, meaning they will not always remain the same and will adjust as liquidity providers change their pricing.
Traders might also want to note that increased volatility, often caused by news, brings periods of less liquidity in the market, potentially making it difficult to open or close positions at desired prices due to the widening of spreads causing slippage.
Therefore, if we want to avoid unnecessary losses either by market volatility, spreads and slippage, we must be aware at all times of the dates and time of Economic news releases
So get up to date with ActivTrades Economic Calendar.
This will be an exciting ActivTrades free webinar with a new guest speaker Paul Matheson that will discuss how to trade using the economic news that are released every day and explains their importance as well as how it will affect the forex market.
The Fundamentals are qualitative and quantitative information that contributes to the economic well-being and the subsequent financial valuation of a country, company or currency.
In other words the Fundamentals (economic news) are what drive the prices as investors analyse them to develop an estimate as to whether the underlying asset is considered a worthwhile investment.
I strongly recommended and for those interested in watching just click here.
If you need an up to date economic calendar just click here
US new home sales fell 11.4% in March to an annualized sales pace of 481K , the lowest sales pace since November. The US Purchasing Managers’ Index that measures factory output also fell in April. Financial market sentiment is broadly stronger, despite a course of disappointing US economic data.
Today on the economic calendar we have from the US Durable Goods Orders in March that is expected to rise from -1.4% to 0.6% showing improvement on US production activity.
Yesterday the Russell 2000 initially fell but found enough buying pressure to turn around and close near the high of the day. The Index is in a bullish phase and trading above the 10-day moving average but making a rising wedge. The stochastic is showing a slight bullish momentum and is above the mid line.
Expecting upward move to key level at 1,281.4 on a break above the previous day high at 1,270.8 (scenario 1) or a break below a daily key level at 1,243.4 could push Index downward to a daily support at 1,212.2 (scenario 2)
UsaRus is a CFD written over Russell 2000 futures.
The USD strengthen after better-than-expected US initial jobless claims and an increase in Services PMI, discarding at the same time disappointing continuing jobless claims.
Yesterday, Japan released its National Consumer Price Index in February that fell from 2.4% to 2.2% and unemployment rate also fell from 3.6% to 3.5% showing improvement in the labour market.
Today on the economic calendar we have from the US we will have the Gross Domestic Product Annualized (GDP) in 4th quarter that is expected to rise from 2.2% to 2.4%.
On yesterday session the USDJPY initially fell during the start of the day but bounce from 118.32 support zone closing near the open of the day. The pair shows a possible phase change from bullish to a warning phase and closed below the 50 day moving average. The Stochastic is showing an oversold market and is signaling a slight bullish momentum.
Expecting upward move to a daily resistance at 120.55 on a break above previous day high at 119.57 (scenario 1).
European markets closed higher on yesterday session, with stocks in Germany assailed new heights, with the former rallying on fresh stimulus hopes, and the latter capitalizing on an injured euro.
Today on the economic calendar we have from Germany the in March that is expected to rise from 53.0 to 58.2 showing an optimistic view to the economic activity and health. The Economic Sentiment for the Euro zone is also estimated to rise from 52.7 to 58.2.
Ger30 rose making a new multi-year high and closed near the high of the day, well above the 10-day moving average. The Index rose 6.76% since the start of the month and 24.02% year to date so we may expect a pullback before the next leg up. The impulsive candle from yesterday was accompanied by low volume.
Expecting an upward move to a Fibonacci level at 12,891 on a bounce off a Fibonacci level at 12,014 (scenario 1).
Ger30 is a CFD written over DAX30 futures.
European markets closed higher on yesterday session, with investors applauding the peace deal between Ukraine and Russia following an escalation of violence in the region this week.
Greece was unable to reach a deal with the European Union to stay in an EU bailout program on Wednesday now talks will resume Monday, but time is running out as Greece’s current bailout program ends on February 28.
Today on the economic calendar we have from Germany the preliminary gross domestic product in 4th quarter that is expected to rise from 0.1% to 03% showing positive implications to the economic activity and health. The preliminary gross domestic product in 4th quarter for the Euro zone is estimated to stay unchanged at 0.2%.
Ger30 rose to the high of the year and closed near the high of the day, well above the 10-day moving average. The Index rose 11.70% since the start of year so we may expect a pullback before the next leg up. The impulsive candle from yesterday was accompanied by low volume.
Expecting a downward move to a daily support at 10,721.5 on a bounce off daily resistance at 10,963 (scenario 1).
Ger30 is a CFD written over DAX30 futures.
Economists revised their estimates of U.S economic growth downward on Thursday after the government reported a jump in the trade deficit during December to its highest level in more than two years. The U.S stocks closed higher on yesterday session, encouraged by oil gains and shaking off concerns about Greece.
Today on the economic calendar we have from the U.S we have the nonfarm payrolls that expected to drop from 252K to 234K and the unemployment rate that is expected to stay unchanged at 5.6%.
Yesterday, the Usa500 initially fell but found enough buying pressure, near previous day low, to reverse and close near the high of the day. The Usa500 is at the starting point of the year 2,053.5 and is in an unconfirmed bullish phase. Stochastic is showing a strong bullish momentum.
Expecting upward move to 2,088.50 on a break above a key level at 2,062 (scenario 1) or a bounce off a key level at 2,062 could pull the index to a daily support at 2014.
Usa500 is a CFD written over S&P500 futures.
On Friday the Reserve Bank of New Zealand left the Official Interest Rate unchanged at 3.5%. The high exchange rate, low global inflation and falling oil prices are causing traded goods inflation to be very weak. Adjustments either up or down, on future interest rate will depend on the emerging flow of economic data.
On today’s economic calendar we have from New Zealand the Employment change that is expected to stay unchanged at 0.8% and the Unemployment Rate for the 4th quarter is anticipated to fall from 5.4% to 5.3%. In the US we have the Factory Orders in December that is estimated to drop from -0.7% to -2.2%.
NZDUSD rallied 56 pips during yesterday and closed near the high of the day. The pair remains in a bearish phase and is dropped 6.28% since the start of the Year 2015. The stochastic in showing an oversold market but even with the pair well into oversold territory, we should not fight the strong downward trend.
Expecting upward move to a Fibonacci level at 0.74726 on a break above the 10-day moving average at 0.73741 (scenario 1) or a bounce from the Fibonacci level at 0.73741 could pull the pair down to a daily support at 0.7276 (scenario 2).
The Federal Open Market Committee released its statement Wednesday afternoon. In a unanimous vote, the FOMC said that “the Committee judges that it can be patient in beginning to normalize the stance of monetary policy.” So no rate hikes any time soon.
On today economic calendar we have the preliminary Consumer Price Index (CPI) in January from the euro zone that is expected to fall from -0.2% to -0.5% showing that deflation is setting in the region. From the US that market is estimating a drop in the preliminary Gross Domestic Product in the 4th quarter from 5.0% to 3.3%.
EURUSD rose during yesterday session but found enough selling pressure around the 10-day moving average and close in the middle of the daily range. The stochastic is coming off the overbought zone and showing some bullish momentum. We might see the pair in a choppy sideways action between now and nonfarm payroll numbers next week.
Expecting downward move to a daily support at 1.1097 on a break below previous day low at 1.1261 (scenario 1) or a break above previous day high at 1367 could trigger a short squeeze and push the pair to a daily resistance at 1.1628.
European markets closed well in the red on yesterday session, after the U.K showed worse-than-expected figure for gross domestic product (GDP) and a number of Wall Street’s biggest firms missed earnings expectations as a result of the consistently strong dollar.
This week on the economic calendar we have from Germany the unemployment change in January that is expected to fall from -27K to -10K showing positive implications in consumer spending and the unemployment rate in December is estimated to stay unchanged at 6.5%
Ger30 fell but found enough support at 10,596 previous Mondays low but still close in the red on a typically digestion day. The Index rose 9.0% since the start of year so we may expect a pullback before the next leg up.
Expecting a downward move to a key level at 10,300 on a break below previous day low at 10,596 (scenario 1).
Ger30 is a CFD written over DAX30 futures.