February 19, 2021 | by sandeep
It’s been a freezing cold week for all of us here in the northern hemisphere. Hope the markets heat up this week and warm us up plenty!
An Arctic Freeze + Growing Demand for Natural Gas = A Great Trading Opportunity
The freezing weather that has slammed the US and Europe has driven natural gas prices way up with demand for the commodity rapidly increasing.
In the US, operational issues faced by natural gas pipelines, storage units and gas plants have worsened the situation as the harsh conditions made it harder for them to steadily supply the market, so much that US output of gas dropped to a four-year low.
Energy analysts suggest that US supply of natural gas could return to the levels seen prior to this polar vortex well into March.
This energy crisis has been particularly tough on Texas. Millions of Texans, who’re generally blessed with relatively warm winters, have lost power and heating amidst the state’s failure to prepare its power system to handle freezing temperatures.
According to the Texas Tribune, analysts suggest that “Texas’ decision not to require equipment upgrades to better withstand extreme winter temperatures, and choice to operate mostly isolated from other grids in the U.S. left [its] power system unprepared for the winter crisis.”
As this crisis plays out well into next week, pay close attention to the US Energy Information Administration’s (EIA) weekly report on natural gas storage, which will be issued on Thursday, February 25th at 3:30 pm GMT.
If you’re a NatGas trader, this is showing to be a prime time to trade this precious commodity!
Will New Zealand Tweak Its Monetary Policy?
New Zealand has been a role model of sorts for all countries during this global pandemic, handling COVID-19 better than anyone while keeping its economy afloat.
Just as an example, the island nation’s economic results back in November turned out to be better than forecasted: GDP is stronger, unemployment is dropping, the housing market is booming with home prices surging, and export commodity prices are performing admirably well.
Most importantly, inflation remains in check according to Jarrod Kerr, head economist with Kiwibank in Auckland. Talking to Bloomberg last month, Kerr said , “The medium-term outlook for inflation looks stronger compared to just a few months ago.”
Will New Zealand tweak its monetary policy when the Reserve Bank of New Zealand’s (RBNZ) issues its interest rate announcement on Wednesday?
Or will the Jacinda Ardern administration ride along with what has been working so well this far?
If you’re a night owl or an early riser, keep an eye out for this announcement on February 24th at 1:00 am GMT as it might present ample opportunities for you to trade one of our favorite currencies!
Will Moderna’s Vaccine Rollout Help Its Stocks?
Following its underwhelming results in Q3 2020, pharmaceutical giant Moderna is eagerly awaiting its earnings report for Q4 2020, which will be released on Thursday, February 25th just before the markets open in the US at 14:30 GMT.
Will Moderna’s successful COVID-19 vaccine rollout play in its favor and help the company surpass its expected Earning per Share (EPS) of $-0.25?
Back in October, after issuing the Q3 2020 results, Moderna’s CEO Stéphane Bancel said, “I believe that if we launch our COVID-19 vaccine, 2021 could be the most important inflection year in Moderna’s history.”
Bancel added that sales of the vaccines could provide the company with “the resources…to maximize the impact we can have on patients in the next 10 years through numerous new medicines.”
Tune in on Thursday to find out and have your Moderna trades ready to go!
Home Improvement Boosts Business for Home Depot
With plenty of people working remotely and spending more time at home, Home Depot has had a 2020 to remember.
From Q1 to Q3 2020, the world’s largest home improvement retailer witnessed growth to the tune of $15 billion or a 24% increase when compared to 2019.
According to Neil Saunders, who heads GlobalData, Home Depot benefited from the pandemic as middle and upper class families who remained employed channeled their income to home improvement.
Saunders said , “Among those still in work, spending on the home continues to be a priority,” as “savings from lower outlays on commuting, eating out and not taking vacations have given consumers a pool of cash which they have diverted into home projects and activities.”
Will the company wrap up 2020 in style when its Q4 earnings results come out on Tuesday, February 23rd before the market opens?
Keep in mind that the expected Earnings per Share (EPS) is $2.6.
Don’t miss out on this opportunity to trade Home Depot stocks!
Will US Durable Goods Orders Continue to Climb?
Did you know the number of orders of durable goods placed by US manufacturing companies is a great indicator of production and economic growth?
On Thursday, February 25th at 1:30 pm GMT, the US Census Bureau will issue its report on US durable goods orders, making it a great time to get those major pair trades ready.
Durable goods orders have been growing steadily in the US for the past eight months. However, December showed some signs of a slowdown with a growth of only 0.2% compared to November, the smallest gain since the lazy summer month of August.
Will orders placed by US factories grow in January for a ninth consecutive month or will output slow down even further as a result of COVID-19, the lockdown measures and Biden’s transition to power?
Pay close attention to the report’s release on Thursday and trade major pairs!
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