November 13 – Trading Session
A quick recap of today’s trading session along with events to look forward to if you are trading Forex in the week ahead.
ECB’s Constâncio Speaks
There wasn’t much activity at the London session today, with ECB Vice President Vítor Constâncio’s Speech the highlight of the session. He mentioned the amazing economic recovery surrounding the euro and the countries in the region.
He also mentioned that deflation risks have been diminished even though the inflationary pressures are very much still active. He, however, stated that the inflationary note hasn’t shown convincing signs yet that it might go up.
CHF & JPY
The duo of Swiss franc and Japanese Yen were the top performance during the session. The Swiss Franc edged out the Yen during the session and became the overall second-best performer of the day.
The main catalyst for the great performance of CHF was not known, with the country’s bond yield falling during the session.
The pair of USD/CHF decreased by 28 points at -0.28%, trading at 0.9941, while CAD/CHF was also down by 29 pips at -0.37%, ending the session at 0.7824
USD/JPY went down by 15 points at -0.13%, to end the session at 113.30, with the pair of CAD/JPY also going down by 19 pips at -0.21%, trading at 89.18
We have started our week with two Forex signals:
EUR/JPY Buy Order = 132.48 Stop = 131.88 Take Profit #1 = 132.73 Take Profit #2 = 132.83 Take Profit #3 = 133.18
AUD/USD SELL Order = 0.7642 Stop = 0.7702 Take Profit #1 = 0.7617 Take Profit #2 = 0.7607 Take Profit #3 = 0.7582
So far we have reached Target 1 success on our AUDUSD trade; trades are still open and we look forward to seeing what unfolds.
Forex Events (Week of November 13-17)
- German GDP: Tuesday, 7:00. The GDP of Europe’s largest economy will be released on Tuesday. In the Q2 of the year, the country had a very healthy growth increase rate of 0.6%. Analysts are now estimating that the same figures should be expected for the third quarter of the year.
- UK inflation: Tuesday, 9:30. The Headline Inflation in the UK is now around 3%, a move that saw the Bank of England increase interest rate for the first time in over 10 years. It is now expected that the inflation rate will go up, with 3.1% as the most likely figure.
- Yellen, Draghi, Carney, and Kuroda speak Tuesday, 10:00. The leaders of the top banks in the world, US FED, the ECB, the BOE and the BOJ will all be available to speak during ECB’s conference slated to hold in Frankfurt. The topic to be discussed by the heads is communication, with the topic an integral part of bank’s policies. Comment on any bank’s policies will likely affect the prices of USD, EUR, GBP and the Yen.
- US PPI: Tuesday, 13:30. The last production prices were released in September and it was up by 0.4%, the same as the core PPI. Analysts are now expecting a smaller increase in the prices. Headline PPI is expected to go up by just 0.1% while the core PPI will go further at 0.2%
- Japanese GDP: Tuesday, 23:50. The German GDP isn’t the only one to be released this week. The GDP of Japan will be released on the same day. The country was able to record a healthy increase of 0.6% during the second quarter of the year. It is now expected that the growth will slow down by 0.4%.
- US CPI: Wednesday, 13:30. This data doesn’t result in inflation. The core PPI has been stuck at 1.7% for months now, with the figure only changing by 0.1% month after month. In September, the core CPI was up by 0.1% while the Headline CPI went up by 0.5%. CPI is expected to go up by 0.01% m/m while the core CPI will likely go up by 0.2% m/m.
- US retail sales: Wednesday, 13:30. Headline retail sales were up by 1.6% in September while core sales went up by 1%. Analysts expect that Headline sales will remain unchanged while core sales will likely increase by 0.2%
- US housing data: Friday, 13:30. This is the last data for the week. In September, building permits went down by 1.23 million annualized while housing starts were down by 1.13 million. It is expected that these figures will go up, with building permits to reach 1.25 million while housing starts will likely be 1.19 million.