Your Monday Wake Up Call 2/10/2017

What to look forward to this week

Some interesting developments took place in Spain over the weekend as violence erupted in the region of Catalonia during a referendum vote to declare independence from Spain. The Euro has subsequently weakened on the back of those developments and uncertainty is rife as the leaders of the Catalonia plan to declare independence by the end of the week. This situation means we can expect some volatility in the markets particularly for major indices such as the Dax and the FTSE, as well as the major currency pairs. Below are a few key events that you can also take note of during the course of this week.

Chinese markets will be closed on Monday as well as the rest of the week but it is still a busy day in terms of economic data as we are expecting Manufacturing PMI data from all the major global financial centres including South Africa. Locally we are also expecting the Naamsa Vehicle Sales year-on-year numbers. Later on that evening FOMC member Robert Kaplan will be speaking which should provide some interesting price action for Gold.
On Tuesday the Australian Reserve Bank is expected to announce its interest rate decision which is largely expected to remain unchanged. The Bank of Japan is expected to release its Core CPI data whilst the United Kingdom is expected to release its Construction PMI numbers. German markets will be closed on Tuesday.
Wednesday is Services PMI day as we are expecting that data from all the major global financial centres. The Eurozone is expected to release its Retail Sales numbers before forecasts shifts to the USA where we expect the ADP Non-Farm Employment change numbers. This ADP number is regarded as a good indicator of the monthly Non-Farm Payrolls numbers which are normally released 2 days after the ADP numbers. From the USA we can also expect the ISM Non-Manufacturing PMI numbers and the weekly Crude Oil Inventories. ECB President, Mario Draghi and US Fed Chair, Janet Yellen are expected to make speeches later on that evening. Locally Standard Bank is expected to release is PMI data and on the earnings front, we are expecting Zeder Investments to release its half year results.
Australia starts off our Thursday with the release of Retail Sales and Trade Balance data. In the afternoon we will be expecting minutes from the ECB monetary policy meeting which should result in some interesting price action within the major currency pairs and European indices. Canada will release its Trade Balance numbers at the same time that we expect that we expect the weekly Initial Jobless Claims numbers from the USA. The USA will also release its Factory Orders numbers which are expected to show a major improvement from the last recording. Two US Fed FOMC members will be speaking on the day and we also expect two Bank of England MPC members to speak later on that evening. Locally, we are expecting the SACCI Business Confidence Index numbers and PSG Group is expected to release its half-year earnings report.
It’s a new month therefore Friday is jobs day as we are expecting the Non-Farm Payrolls numbers from the USA. The US economy is estimated to have added 88 000 jobs in September therefore that will be a key number to watch. Along with that number, we are expecting the Unemployment Rate and Wholesale Inventories numbers. We are also expecting the same set of data from Canada. Later on that evening two US Fed FOMC members will also be speaking and any commentary that they might have on the jobs numbers could result in some volatile price action.

This is a data filled week with lots of opportunities to profit off due to the volatility that we expect within the global markets. Always maintain the appropriate risk management tools when entering positions and take profits wherever possible.

We will be keeping tabs on the events in the markets. Check out our blog for market updates, insights from our GT247.com team, and our independent analysts. Not sure about a trade? Call the GT247.com Trading Desk on 087 940 6102, and bounce your idea off one of our dedicated traders.

Until next week, we wish you profitable trading!