newdigital, 2013.07.23 11:58
2013-07-23 08:30 GMT (or 10:30 MQ MT5 time) | [GBP - BBA Mortgage Approvals]
If actual > forecast = good for currency (for GBP in our case)
The number of mortgage or home loans collectively approved
by members of the British Bankers Association (BBA). This figure is
published monthly by the BBA, and is considered to be an important
leading indicator about the state of the housing market in the United
A rising number of mortgage approvals would usually indicate a growing
or healthy housing market, while a decline in the number of mortgage
approvals would imply that the housing market is sluggish. The BBA is
the main trade association for the U.K. banking and financial services
U.K. BBA Mortgage Approvals Increase In June
The numbers of approvals for house purchase and remortgaging
continued the upward trend seen since the turn of the year as assistance
schemes for mortgage lending helped first-time buyers, the British
Bankers' Association said Tuesday.
Mortgage approvals totaled
37,278 in June compared to 36,290 in the previous month. But the figure
was below the 38,300 level forecast by economists. Re-mortgage,
meanwhile, decreased slightly to 20,478 from 20,670 a month ago.
total number of mortgages including house purchases, re-mortgage and
other secured borrowing rose to 66,917 from 65,993 last month.
statistics director, David Dooks said, "Second quarter GDP is expected
to have strengthened and as economic conditions improve the banks are
providing the finance to help growth."
"However, household savings, though still growing at 5 percent, seem to be slowing," said Dooks.
Trading CAD Retail Sales :
MetaTrader Trading Platform Screenshots
USDCAD, M1, 2013.07.23
MetaQuotes Software Corp., MetaTrader 5, Demo
newdigital, 2013.07.23 14:43
2013-07-23 12:30 GMT (or 14:30 MQ MT5 time) | [CAD - Retail Sales Excluding Motor Vehicles]
If actual > forecast = good for currency (for CAD in our case)
Canadian retail sales leap – USD/CAD falls towards 1.03 :
The volume of retail sales in Canada in June jumped by 1.9%, and core
sales jumped by 1.2$. These are excellent numbers. Sales were expected
to rise by 0.4% after a rise of 0.1% in May. Core sales was predicted to
advance by 0.1% after a drop of 0.3%.
USD/CAD traded lower, at 1.0332, after reaching the lowest levels in
over a month. The pair fell with a gap and is approaching the round
number of 1.03. The low has been 1.0301 so far.
The Canadian dollar certainly has reasons to rise.
1.0360 works as resistance and 1.03 as initial support. Oil prices
have also supported the loonie. Below 1.03, 1.0250 is weak support,
followed by 1.02.
newdigital, 2013.07.24 07:40
2013-07-24 01:45 GMT (or 03:45 MQ MT5 time) | [CNY - HSBC Manufacturing PMI]
If actual > forecast = good for currency (for CNY in our case)
China Manufacturing Contraction Deepens As New Orders Slide :
China's factory activity fell to the weakest level in eleven months
in July amid a continued slide in new orders and faster destocking,
preliminary results of a survey by Markit Economics and HSBC revealed
The purchasing managers' index, an indicator of the
country's factory sector performance, fell to 47.7 in July from 48.2 in
June. An index reading below 50 suggests deterioration in activity.
orders received by manufacturers fell at a faster pace in July, while
the pace of decline in export orders eased, the survey found. The
manufacturing output index fell to a nine-month low of 48.2 in July from
48.6 in June.
Employment at manufacturers decreased at faster rate in July, the survey revealed.
PMI reading suggested "a continuous slowdown in manufacturing sectors
thanks to weaker new orders and faster destocking," said Hongbin Qu,
Chief China Economist at HSBC. "This adds more pressure on the labour
market," he said.
"As Beijing has recently stressed to secure the
minimum level of growth required to ensure stable employment, the flash
PMI reinforces the need to introduce additional fine-tuning measures to
stabilise growth," Hongbin noted.
State media on Tuesday quoted Chinese Premier Li Keqiang as saying that the economy
needs at least 7.5 percent growth to maintain labor market stability.
In the remarks made at a recent State Council meeting, he said that 7
percent economic growth is the government's bottom line of tolerance.
GBPUSD, M5, 2013.07.24
gbpusd during the CNY - HSBC Manufacturing PMI
USDCHF, M5, 2013.07.24
usdchf during the CNY - HSBC Manufacturing PMI
USDJPY, M5, 2013.07.24
usdjpy during the CNY - HSBC Manufacturing PMI
EURUSD, M5, 2013.07.24
eurusd during the CNY - HSBC Manufacturing PMI
newdigital, 2013.07.24 11:03
Just about this news events :
2013-07-24 07:28 GMT (or 09:28 MQ MT5 time) | [EUR - German Markit Manufacturing PMI]
If actual > forecast = good for currency (for EUR in our case)
2013-07-24 07:28 GMT (or 09:28 MQ MT5 time) | [EUR - German Markit Service PMI]
German Private Sector Activity At 5-Month High :
German private sector business
activity rose at the fastest pace in five months in July, preliminary
results of a survey by Markit Economics showed Wednesday.
composite output index, that measures performance of both manufacturing
and services, rose to a five-month high of 52.8 in July from 50.4 in
June. Readings above 50 indicates expansion in activity.
expansion was underpinned by a return to new business expansion in July,
ending a four-month period of contraction, Markit said in the report.
This improvement was driven by rising levels of domestic demand as new
export volumes dropped for the fifth consecutive month.
purchasing managers' index, a gauge of factory activity, rose to 50.3 in
July from 48.6 in June. This was also the highest reading in five
months and higher than economists' forecast of 49.2.
The manufacturing output index rose to a 17-month high of 53.4 in July from 50.5 in June.
The services activity index advanced to 52.5 in July from 50.4 in June. This was above expectations of 50.7.
the manufacturing and service sectors posted only moderate increases in
new business volumes during the latest survey period.
levels in private sector firms increased in July following two months of
moderate declines. The employment growth was driven by the service
sector, as manufacturing workforce levels remained broadly unchanged
since the previous month.
By the way, what I am uploading here as the pips - this is not a profit :) Those is the movement of the price based on some news events. Abotu trading the news event ... Just look at this image:
EURUSD, M1, 2013.07.24
So, about 1 minute before news event release - place sell stop and buy stop orders based on support and resistance levels. How to know support/resistance levels? use this indicator : MaksiGen_Range_Move MTF - just attach it to M1 or M5 timeframe 5 or 10 minutes before the news. Look at the chart about - this is the profit. +20 pips (4 digit pips).
So, there are some differences between the following:
This is the other interesting situation - let's compare 2 news events on one pair: NZDUSD. The first one is the following:
2013-07-23 22:45 GMT (or 00:45 MQ MT5 time) | [NZD - Trade Balance]
If actual > forecast = good for currency (for NZD in our case)
The second news event is the following:
Trade Balance is high impacted news event by definition, and Manufacturing PMI is not high impacted (by definition).
So, for now - we can compare those 2 news events (Trade Balance for New Zealand with manufacturing PMI in China) - related to the movement of NZDUSD price. We can see it from the image :
NZDUSD, M5, 2013.07.24
2 news events in comparison
newdigital, 2013.07.24 16:48
If actual > forecast = good for currency (for USD in our case)
U.S. New Home Sales Jump To Five-Year High In June :
New home sales in the U.S. rose by much more than anticipated in the
month of June, according to a report released by the Commerce
Department on Wednesday, although the report also showed downward
revisions to the data for the past few months.
The report said new
home sales surged up by 8.3 percent to an annual rate of 497,000 in
June from the revised May rate of 459,000.
expected new home sales to climb to an annual rate of 481,000 from the
476,000 originally reported for the previous month.
In addition to
the downward revision to new home sales in May, the annual rate of new
home sales in April was downwardly revised to 453,000 from 466,000.
home sales are volatile and monthly changes are hardly ever
statistically significant," said Teunis Brosens, Senior Economist at ING
Bank. "Still, today's release confirms that new home sales remain on an
With the continued upward trend, new home sales in
June were at their highest annual since May of 2008. Sales were also up
by 38.1 percent compared to the same month a year ago.
the report said the median sales price of new houses was $249,700 in
June, down 5 percent from $262,800 in May. The median price was still up
7.4 percent year-over-year.
The Commerce Department also said there were 161,000 houses for sale at the end of June compared to 159,000 at the end of May.
number of houses for sale represents 3.9 months of supply at the
current sales rate, down from 4.2 months due to the faster rate of
The report showed a notable increase in new home sales in the Northeast, where sales surged up by 18.5 percent in June.
home sales in the West and the South also jumped by 13.8 percent and
10.9 percent, respectively, while sales in the Midwest slumped by 11.8
On Monday, the National Association of Realtors released a
separate report showing an unexpected decrease in existing home sales
NAR said existing home sales dipped 1.2 percent to an
annual rate of 5.08 million in June from a downwardly revised 5.14
million in May.
The drop surprised economists, who had expected
existing home sales to climb to 5.27 million from the 5.18 million
originally reported for the previous month.
usdchf 20 pips
NZDUSD, M5, 2013.07.25
newdigital, 2013.07.25 09:11
Some more about NZD news event :
2013-07-24 21:00 GMT (or 23:00 MQ MT5 time) | [NZD - RBNZ Interest Rate Decision]
RBNZ's Wheeler Signals Policy Tightening In 2014 :
Reserve Bank of New Zealand Governor Graeme Wheeler on Thursday
indicated that the bank may consider tightening policy in 2014 if the
overheated housing market stokes price pressures.
At the same time, he noted that the bank will keep the Official Cash Rate unchanged through the end of this year.
extent of the monetary policy response will depend largely on the
degree to which the growing momentum in the housing market and
construction sector spills over into inflation pressures," Wheeler said
while announcing the bank's decision to hold the OCR unchanged at 2.5
"Although removal of monetary stimulus will likely be
needed in the future, we expect to keep the OCR unchanged through the
end of the year," Wheeler said.
He noted that the CPI inflation
has been very low over the past year, reflecting the high New Zealand
dollar and strong international and domestic competition. However, the
bank expects inflation to trend upwards towards the mid-point of the 1-3
percent target band as growth accelerates over the coming year.
said the Reserve Bank does not want to see financial or price stability
compromised by housing demand getting too far ahead of the supply
In May, Wheeler signed a memorandum of understanding
with Finance Minister Bill English, which awarded the central bank will
more powers to curb excessive growth in credit and asset prices in the
country through the use of four macro-prudential tools.
tools included adjustments to the core funding ratio, a countercyclical
capital buffer, adjustments to sectoral capital requirements and
quantitative restrictions on the share of high loan-to-value ratio (LVR)
loans to the residential property sector.
In addition to this,
the central bank is expected to announce measures to limit low-deposit
mortgage lending to cool the housing market.
Grant Spencer said on June 27 that limited house supply was at the heart
of the problem and strong demand supported by easy credit was
underpinning the rapid escalation of house prices.
However, he said housing cannot yet be described as a threat to overall inflation, given some slack still in the economy.
Nonetheless, Spencer opined that higher interest rates are not the
right policy response at this time and that the bank is seriously
considering the use of macro-prudential policy tools.
And this is about how to trade this news event - see the image :
NZDUSD, M15, 2013.07.25