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Cliff Wachtel
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Cliff Wachtel, CPA, is currently the Director of Market Research, New Media and Training for Caesartrade.com, a fast growing forex and CFD broker. He covers a variety of topics including global market drivers, forex, currency hedged and diversified income investing, and is currently working on a... More
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The Sensible Guide To Forex: Safer, Smarter Ways To Survive & Prosper From The Start
  • BRIEF WEEKLY PREVIEW APRIL 22-7: FIVE THINGS TO WATCH NEXT WEEK 0 comments
    Apr 21, 2012 5:29 PM | about stocks: IMF

    Part 2: Coming Week Market Movers

    The following is Part 2 of our weekly review and preview strategy guide for traders and investors of all major asset classes via both traditional instruments and binary options, covering coming week's market movers and trade ramifications

    1. Market reaction to IMF expanded war chest for EU crisis

    With the IMF getting its desired bailout fund increase, this could be enough of a reason to give markets a boost early in the week as it could be enough of an excuse for a bout of EU optimism now that there's enough cash on hand to deal with Spain. As noted in Part 1, conservative estimates suggest a Spain bailout could total

    2. FOMC Meeting & Press Conference Wednesday

    The meeting is not expected to yield any change in Fed policy, but markets will nonetheless be sensitive to even minor hints of possible changes. Bernanke is expected to sound less optimistic than he did last month.

    Still, the consensus is that there will be no new easing unless things get much worse for the US, especially because it's far from clear that QE has done more harm than good. Indeed, it's hard to see how lowering borrowing costs improves things when most of the US is still trying to reduce debt.

    The expected dovishness could further pressure the USDCAD, because the BoC is expected to raise rates.

    3. Earnings Season Week 3

    Earnings reports have one more week of influence. They tend to be influential for the first three weeks of reporting season, after which time the theme is set.

    4. Election Results In France, Greece

    Both are more likely to yield anti-market results, if anything, and pressure the EUR.

    5. Other Top Calendar Events

    Top events of the week include:

    Monday

    A big day for manufacturing PMIs. By themselves not dominant news, but if they all show the same theme they could indeed set market mood.

    Australia: PPI - the RBA is already considering further easing, and that will become more likely if inflation remains a non-threat.

    China: HSBC flash Mfg PMI

    EU: French, German, EU Mfg PMIs

    Tuesday

    UK: Public sector net borrowing

    All: G-7 Meeting - look for more spin control to calm markets about Spain and the rest of the GIIPS

    US: New home sales, CB consumer confidence

    Wednesday

    UK: Preliminary GDP- expected to show a modest increase. The GBP has been on a tear recently, and this may signal profit taking time for the shorter term positions.

    US: Durable Goods, FOMC press conference (see above)

    Thursday

    US: Pending home sales, weekly first time jobless claims

    Friday

    Japan: BoJ rate statement and press conference: further easing steps expected, good for stocks and other risk assets, bad for the JPY bulls.

    US: Advanced GDP

    Consult any good economic calendar, like that of forexfactory.com, for details

    One of the biggest lessons of recent years is the need to protect yourself against the risk of crashing markets and currencies dragging you down with them. The best help I can offer you is, THE SENSIBLE GUIDE TO FOREX, SAFER, SMARTER WAYS to SURVIVE and PROSPER from the Start. It's the first forex book ever published to show how both prudent active traders and long term investors with limited time and risk tolerance can tap forex markets to hedge currency risk and improve returns.

    DISCLOSURE /DISCLAIMER: THE ABOVE IS FOR INFORMATIONAL PURPOSES ONLY, RESPONSIBILITY FOR ALL TRADING DECISIONS LIES SOLELY WITH THE READER. IF WE REALLY KNEW WHAT WOULD HAPPEN, WE WOULDN'T BE TELLING YOU FOR FREE, NOW WOULD WE?

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: IMF
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