Forex Tips & Daily Analysis

Measures the unit sales for new vehicles. A rising trend has a positive effect on the nation's currency because demand for vehicles, as with other expensive durable goods, has historically been a leading indicator of trends in overall consumer spending. Vehicle sales accounting for roughly 25% of total retail sales.

Due to speak at the Australia and Japan Economic Outlook Conference 2008, in Sydney;

Due to speak at the CEDA annual dinner, in Melbourne;

The Bank of England (BOE) Monetary Policy Committee (MPC) Meeting Minutes are a detailed record of the committee's interest rate meeting held about two weeks earlier. The minutes expose the votes cast at the meeting and can give traders further insight into the central bank's stance on monetary policy. Traders carefully comb the minutes for clues regarding future interest rate shifts.

Level of a diffusion index based on surveyed manufacturers. Survey of about 550 manufacturers which asks respondents to rate the relative level of order volume expected during the next 3 months.

Measures the monthly value of domestic securities, debt, and assets purchased by foreigners. A rising trend has a positive effect on the nation's currency because foreigners must first convert their domestic currency before they can purchase the nation's assets. This can dramatically elevate currency demand. Traders watch this indicator closely as it provides several insights into international currency flows.

Measures overall economic health by combining ten leading indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices, and interest rate spreads. The index is published monthly by The Conference Board, a leading private US research group, but traders tend to pay little attention because the components that make up the index are reported at an earlier date.

Measures annualized number of new residential building permits issued during the previous month; It's an excellent gauge of future construction activity because obtaining a permit is one of the first steps in constructing a new building

Measures Change in the price of goods and services purchased by consumers, excluding food, energy, alcohol, and tobacco; The Core data has a mild impact relative to other countries because overall CPI is the central bank's mandated inflation target;

Measures Change in the price of goods and services purchased by consumers; Usual Effect Actual > Forecast = Good for currency; Frequency Released monthly, about 15 days after the month ends; FF Notes The 'Previous' listed is the 'Actual' from the CPI Flash Estimate and therefore the 'History' data will appear unconnected. This is considered the Eurozone's most important inflation data because it's used as the central bank's inflation target, but it tends to have a relatively mild impact as the CPI Flash Estimate and German Prelim CPI are released about 15 days earlier; Why Traders Care Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate; Acronyms Consumer Price Index (CPI);

Measures the annualized number of new residential buildings that began construction during the previous month. A rising trend has a positive effect on the nation's currency because the housing market is a leading gauge for the overall economy. A high level of housing activity signals that the construction industry is healthy and that consumers have the capital to make large investments. More importantly, new housing activity creates an economic ripple effect as home owners buy goods such as appliances and furniture for their homes, and builders buy raw materials and hire more workers to meet demand.

Bank of Canada (BOC) Governor Mark Carney, along with Senior Deputy Governor Paul Jenkins, will testify before the Standing Senate Committee on Banking, Trade and Commerce, in Ottawa. As head of the central bank's governing body, which is responsible for setting the nation's short term interest rate, his speeches can sometimes cause market volatility as traders react to clues regarding future monetary policy.

FOMC members vote on where to set the nation's key interest rates, and their speeches are often used to drop subtle clues regarding future monetary policy and interest rate shifts

Measures Change in the number of barrels of crude oil held in inventory by commercial firms during the past week; Usual Effect No clear effect, there are both inflationary and growth implications; Frequency Released weekly, 4 days after the week ends; FF Notes While this is a US indicator, it most affects the loonie due to Canada's massive oil sands; Why Traders Care It influences the price of petroleum products which affects inflation, but also impacts growth as many industries rely on oil to produce goods; Also Called Crude Stocks, Crude Levels; Acronyms Energy Information Administration (EIA);

Speaker BOE Deputy Governor Sir John Gieve; Description Due to speak at the North East Chamber of Commerce Dinner, in Durham; Usual Effect More hawkish than expected = Good for currency; FF Notes MPC voting member Jan 2006 - Jan 2009; Why Traders Care BOE MPC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy; Acronyms Bank of England (BOE), Monetary Policy Committee (MPC);

The Federal Open Market Committee (FOMC) Meeting Minutes are a detailed record of the committee's interest rate meeting held about two weeks earlier. The minutes provide detailed insights regarding the FOMC's stance on monetary policy, so traders carefully comb them for clues regarding future interest rate shifts.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported over a given period. A rising trend has a positive effect on the nation's currency. When higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase the exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production, as domestic factories work to fill this demand.