EUROPEAN SESSION
A) CALENDAR
-GMT 08:55 GER Services PMI (Oct) EST 54.9 PREVIOUS 53.1
Definition
The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks.
-GMT 09:00 EU Services PMI (Oct) EST 55.6 PREVIOUS 55.6
Definition
The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks.
-GMT 10:00 EU PPI (m/m), (Sep) EST 0.4% PREVIOUS 0.1%
-GMT 10:00 EU PPI (y/y), (Sep) EST 2.6% PREVIOUS 1.7%
Definition
The PPI gauges the average changes in prices received by domestic producers for their output at all stages of processing. The PPI data is compiled from most sectors of the economy, such as manufacturing, mining and agriculture.
-GMT 10:00 EU Retail sales (m/m), (Sep) EST 0.5% PREVIOUS 0.1%
-GMT 10:00 EU Retail sales (y/y), (Sep) EST 2.2% PREVIOUS 1.0%
Definition
The retail sales report is a measure of the total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. It is the most timely indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences. Retail sales include durable and nondurable merchandise sold, and services and excise taxes incidental to the sale of merchandise. Excluded are sales taxes collected directly from the customer. It also excludes spending for services, a large component of consumer expenditures. Retail sales is a the first picture of consumer spending for a given month. Retail sales are often viewed ex-autos, as auto sales can move sharply from month-to-month. Also, gas and food component changes are often a result of price
changes rather than shifting consumer demand. Retail sales can be quite volatile and the advance reports are subject to large revisions.
-GMT 11:00 GER Factory orders (m/m), (Sep) EST 0.0% PREVIOUS 1.2%
-GMT 11:00 GER Factory orders (y/y), (Sep) EST 6.5% PREVIOUS 4.0%
Definition
Factory orders refer to the total of durable and nondurable good orders.
B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4560 115.25 2.0940
R2 1.4530 115.10 2.0895
R1 1.4515 114.85 2.0870
S1 1.4480 114.45 2.0780
S2 1.4445 114.10 2.0760
S3 1.4430 113.85 2.0715
C) WATCH
-Interest Rates
-GMT 09:00 EU Services PMI
-GMT 10:00 EU PPI
-GMT 10:00 EU Retail sales
D) TRADING TIPS
One of the most fascinating types of chart is the candlestick chart.
In terms of structure, the charts are similar to the bar charts and consist of opening, high, low and closing prices.
The body (jittai) consists of the range between the opening and closing price. A black body indicates that the currency closed lower than it opened. A white body indicates that the currency closed higher than opened. The candlestick’s body provides the most significance regarding the direction of the market. The high and low prices create the upper and lower shadows, respectively, when different from the open or close. The upper shadow (unakage) occurs if the daily high is higher than either the closing price of a white body or the opening price of a black body. The lower shadow (****akage) occurs if the daily low is lower than either the closing price of a black body or the opening price of a white body.