U.S. Trade Balance - Weekly Report 05–09/05/2014

Starting with Monday the 5th of May. The first key trading event of the week comes at 2pm with the release of Non-Manufacturing data from the U.S for March. The ISM Non-Manufacturing PMI index rose to 53.1 from a four-year low of 51.6 in February reflecting growth in the U.S. economy. Despite the effects of weather, business activity and service industries picked up in March, indicating continued growth into the second quarter which should support a positive April reading. Banc De Binary analysts will therefore be looking at PUT options on the Eurodollar.

On Tuesday comes the release of U.S. Trade Balance figures. In February, the U.S. trade deficit widened to the highest level in five months. The recent bounce-back in consumer spending and job growth means analysts now anticipate a strengthening economy as we head through 2014, along with a gradual narrowing of the U.S. trade deficit. If an upward trend is reflected in Tuesday’s data, we may, once again be looking at possible PUT opportunities on the Eurodollar following the release.

On Wednesday, we move to Canada at 12.30 for the latest Building Permits data. Previous figures showed that Canadian building permits fell to the lowest in a year and recent data suggests a further cooling in the housing market in the months ahead. Although market watchers are unlikely to have a clearer picture of the housing sector’s state until after the key spring season, a negative March reading is likely to impact on the Canadian Dollar which may present CALL trading opportunities on USD/CAD.

On Thursday, we cross to the U.S. with Unemployment Claims. With the U.S. economy continuing to experience accelerating growth, this is likely to lead to a rise in employment numbers and a corresponding fall in unemployment claims. This week, we expect a decrease in claims to an estimated 317,000. If figures come in lower than forecast, this will apply upward pressure on the U.S. dollar. In this case, Banc De Binary analysts will be looking at PUT opportunities on the Euro/dollar.

We end the week on Friday in the U.K. with the release of Manufacturing Production data. Strong evidence suggests that the manufacturing sector’s recovery is back in full swing, with economic growth accelerating in the first quarter. Employment and consumer confidence are continuing to show significant strength, therefore, Banc De Binary analysts remain upbeat on the U.K.’s growth prospects and expect a positive reading in Friday’s numbers. This could lead to opportunities on Sterling and the FTSE100 Index.