The week ahead has many a fundamental news release to look forward to, events which are sure to have traders licking their lips at the implied volatility and the numerous trading opportunities they create. Let us take a look at our top 3 picks:

  • Monday sees the release of the Core Durable Goods Orders m/m figure out of the USA. The figure represents the change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items, and is regarded as a leading indicator of production as an increase in orders will result in an increase in production, signaling a strengthening economy. Thus a better than expected release will see the USD strengthen as trades price in the potential for an improved economy while a worse than expected release will see the USD weaken as trades prepare for a potential dip in the US economy as a whole.
Wednesday sees the release of the Manufacturing PMI data out of the UK. The figure is derived by surveying purchasing managers in the manufacturing sector and given that purchasing managers have, by the nature of their job, an eye on the future when determining demand for their products, these figures are regarded as a leading indicator of economic health. A reading above 50 indicates industry expansion while below 50 indicates the sector is contracting. A better than expected release will see the GBP strengthen while a worse than expected release will see the GBP lose ground against its counterparts.
  • Friday sees the week ended with a cherry on top as we see the Chair of the Federal Reserve Bank of America (FED), Janet Yellen, take the podium with a speech titled “Economic Outlook”. Markets will be paying particular attention to this given the recent volatility caused in US markets and commodities as traders prepare for the next US rate hike. The Fed has been avoiding placing a data on the next rate hike and markets will be analyzing Yellen`s speech for clues as to when the hike will occur. If she trikes a particularly hawkish tone, we will see the USD strengthen while US equities and commodities drop and vice versa should she strike a predominantly dovish tone.

The above are just the tip of the iceberg of the daily events which occur in markets, for daily technical and fundamental analysis please visit: https://www.opteck.biz/fundamental-analysis/