NEWS AND CALENDAR 22-11-2017

22.11.2017 GMT+1 

TIME CURRENCY IMPORTANCE EVENT ACTUAL FORECAST PREVIOUS
13:30 GBP HIGH Autumn Budget
14:30 USD HIGH Core Durable Orders (MoM)(Oct) 0.5% 0.7%
14:30 USD Medium Durable Orders (MoM)(Oct) 0.3% 2.0%
14:30 USD Medium Initial Jobless Claims 240K 249K
16:00 USD Medium Michigan Consumer Expectations (Nov) 87.6 87.6
16:00 USD Medium Michigan Consumer Sentiment (Nov) 98.0 97.8
16:30 USD HIGH Crude Oil Inventories -1.545M 1.854M
16:30 USD Medium Cushing Crude oil inventories -1.504M
19:00 USD Medium U.S. Baker Hughes Oil Rig Count 738
20:00 USD HIGH FOMC Meeting Minutes

 

EXPLANATION OF THE ECONOMIC NEWS

 

  1. Core Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, excluding transportation items. Because aircraft orders are very volatile, the core number gives a better gauge of ordering trends. A higher reading indicates increased manufacturing activity. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

 

  1. Durable Goods Orders measures the change in the total value of new orders for long lasting manufactured goods, including transportation items. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

 

  1. Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

 

  1. The Michigan sentiment index includes two major components, a “current conditions” component and an “expectations” component. The current conditions component index is based on the answers to two standard questions and the expectations component index is based on three standard questions. This number is the expectations part of the overall index. A higher than expected number should be taken as positive to the USD, while a lower than expected number as negative. This is the final number.

 

  1. The University of Michigan Consumer Sentiment Index rates the relative level of current and future economic conditions. There are two versions of this data released two weeks apart, preliminary and revised. The preliminary data tends to have a greater impact. The reading is compiled from a survey of around 500 consumers. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

 

  1. The Energy Information Administration’s (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation.If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected.  If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected.

 

  1. Change in the number of barrels of crude oil held in storage at the Cushing, Oklahoma during the past week. Storage levels at Cushing are important because it serves as the delivery point for the U.S. crude oil benchmark, West Texas Intermediate.

 

  1. The Baker Hughes rig count is an important business barometer for the oil drilling industry. When drilling rigs are active they consume products and services produced by the oil service industry. The active rig count acts as a leading indicator of demand for oil products.

 

  1. The Federal Open Market Committee (FOMC) Meeting Minutes are a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.