A Forex View From Afar

A Trader's Look At A Trader's Life

Forex Analysis

Earnings Season; Yummy.

Written by A Forex View From Afar on Sunday, January 13, 2008

Back to www.thelfb.com

Markets find themselves already in the middle of January, and that means that they are heading straight into the Equity Earnings Season.
Usually, Forex Traders don't put too much importance on Earnings Season, but this year it is something that will define the Sentiment for weeks, and possibly months to come. The reason? The Credit Crisis.

Traders will be looking for the Earnings reports of Financial Institutions to confirm whether Market expectations are anywhere near to reality. This coming week Citigroup will publish it's earning for Q4, the period that it announced that it was hit by sub-prime. The Markets are expecting a $1 loss per share

The following week Merrill Lynch & Co Inc will publish its earnings. Merrill has an EPS of -4.57 down from 2.02 in June 2007. Things don't look rosy. However, this year Analysts have reduced income expectations, so it’s very likely that some Companies will handily beat those expectations.

For Forex Traders, a strong Stock Market will be a one way ticket to 1.5000 on the Euro, (and maybe 1.6000), and lower on the Swissy, Cad and Aussie; all as Trade Desks move out of the safety of Bonds, and take on risk again. Strong Earnings may sky-rocket the Commodity Markets, maybe then showing that consumers are still spending, and Commodities still have strong demand. The 'last but not least' line goes to the Yen; Equities Higher = Yen Cross Pairs Higher, (and they need a boost to clear the Daily Chart Log-Jam).

You can see some important earnings releases here:
http://online.wsj.com/mdc/public/page/markets_calendar.html

Watch out; during Earnings Season you never know what the following morning brings!

Please add your Comments

Related Posts by Categories



  1. 0 comments: Responses to “ Earnings Season; Yummy. ”

TheLFB Team & The View From Afar Blog

© 2008 A Forex View From a far Trading Blog

Trade Desk View

Fundies and Trading
There is a constant question from some traders as to why anybody would ever need to consider the ‘F’ word when trading. Fundamentals: what is so damaging at looking at both Technical charts and having a Fundamental filter to gauge how many Lots to put on? Why is it that accepting that Technicals give us price points to trade, but Fundamentals determine the direction that we travel is so difficult for some traders to accept? Without a Fundamental Filter very few pure Technical traders would have seen this Dollar move coming today.

Want to subscribe?


Subscribe in a reader.