Forex and Equities Certain to See Volatility as Central Banks Loom

Housing sector data will come from the States today. However, tomorrow’s central bank meetings in Japan and Europe are the focus for many investors. The Euro has become consolidated in early trading.

Building Permits & Housing Starts

Housing sector data will come from the U.S with the Building Permits and Housing Starts data. Wall Street is expected to open with mixed trading via the Future Markets for the major Indexes. The NASDAQ and S&P put in marginal gains on Tuesday, but the Dow Jones Industrials slumped slightly. The Philly Fed Manufacturing Index and weekly Unemployment Claims numbers will come from the States tomorrow. Investors have been cautious early this week and the U.S Dollar has range traded the past day, but continues to languish within its weaker realms in forex.

Chinese Equities Stay Very Strong

The Shanghai Shenzhen composite turned in solid gains today, and is up nearly 5% the past month as bulls continue to take Chinese equities higher. The Nikkei and Topix Indexes put in fractional advances today ahead of tomorrow’s Bank of Japan monetary policy statement. The Yen has continued to show strength against the U.S Dollar, but has consolidated around the 112.00 level.

Pound Weaker After Inflation Report

The Euro has come off its lofty marks which were attained yesterday. However, the Euro’s recent surge remains evident after testing a 14-month high on Tuesday. The European Central Bank’s meeting tomorrow is in focus and investors are awaiting President Mario Draghi’s Press Conference anxiously. The 1.15 to 1.16 range for the Euro against the U.S Dollar remains prominent.  The Pound lost ground yesterday after a weaker than anticipated inflation report via the Consumer Price Index. Tomorrow Retail Sales data will come from Britain.

Important Resistance in Play

Crude Oil Inventories numbers will come from the States today, last week’s outcome came in more than 7 million barrels short of expectations. The short fall in supply helped boost the price of Crude Oil late last week, however the commodity has not been able to punch through important resistance which appears to be near 47.00 U.S Dollars a barrel.

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.