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| The Trading Week: Aug. 30 - Sep. 3 |
Posted on : August 27, 2010 |
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Aug.
27, 2010
(Allthingsforex.com)
– The
U.S. Non-Farm
Payrolls and
Employment
Situation
report will
take the center
stage in the
week ahead as
investors
anxiously wait
to find out if
the private
sector of the
U.S. economy
would lose jobs
in August for
the first time
this
year.
In
preparation for
the new trading
week, here is a
list of the Top
10 spotlight
economic events
that every
currency trader
should pay
attention
to.
1.
USD-
U.S. Personal
Income and
Outlays,
a measure of
the income
received and
purchases made
by consumers,
released along
with the
Personal
Consumption and
Expenditures
Price Index- a
leading
indicator of
inflation
preferred by
the Fed because
it measures a
variable basket
of goods and
services, as
opposed to the
CPI-Consumer
Price Index
which measures
a fixed basket
of goods and
services, Mon.,
Aug. 30, 8:30
am, ET.
The
core PCE Index
is expected to
show a slight
increase in
inflationary
pressures by
0.1% in August
from 0.0% in
July, while
personal
spending rises
by 0.4% from
0.0% in the
previous month.
2.
CAD-
Canada GDP-
Gross Domestic
Product,
the main
measure of
economic
activity and
growth, Tues.,
Aug. 31, 8:30
am, ET.
Canada’s
economy could
see faster
growth in
August by 0.2%
m/m from the
0.1% m/m
reading in
July.
3.
USD-
U.S. Consumer
Confidence
Index
of
consumers’
outlook on
present and
future economic
conditions,
Tues., Aug. 31,
10:00 am, ET.
Despite of
the high
unemployment,
the consensus
forecasts point
to an increase
in consumer
confidence to
51.3 from 50.4
but, given the
current
deteriorating
economic
conditions,
unexpected
decline in the
index would not
be a major
shocker.
4.
AUD-
Australia GDP-
Gross Domestic
Product,
the main
measure of
economic
activity and
growth, Tues.,
Aug. 31, 9:30
pm, ET.
The
revised
estimate of the
Australian GDP
should confirm
the
expectations
for faster
economic growth
in Q2 2010 by
up to 0.9% q/q
from 0.5% in
the first
quarter.
5.
USD-
U.S.
ADP-Automatic
Data Processing
Employment
Report,
a measure of
jobs lost or
added to the
private sector
of the economy,
also serving as
a preliminary
estimate for
the outcome of
the monthly
non-farm
payrolls, Wed.,
Sep. 1, 8:15
am, ET.
There
is a division
among the
forecasters for
the outcome of
this important
report, with
the less
optimistic ones
expecting the
private sector
of the U.S.
economy to lose
up to 14,000
jobs- the first
loss for U.S.
companies in
2010. On the
other hand,
even the most
optimistic
forecasts point
to slower jobs
creation of up
to 20 K jobs in
August from 42
K in
July.
6.
USD-
U.S. ISM
Manufacturing
Index,
a leading
indicator of
industrial
activity, where
a reading above
or below 50 is
the dividing
line between
economic
expansion and
contraction,
Wed., Sep. 1,
10:00 am, ET.
The
manufacturing
sector, which
has been the
leader of the
U.S. economic
recovery, could
register
another month
of slower
growth with the
index pulling
back to 53.6
from 55.5 in
May.
7.
EUR-
Euro-zone GDP-
Gross Domestic
Product,
the main
measure of
economic
activity and
growth, Thurs.,
Sep. 2, 5:00
am, ET.
The
Euro-zone GDP
revision should
confirm that
the economy
grew by 1.0%
q/q in Q2 2010,
as shown by the
preliminary
estimate.
8.
EUR-
European
Central Bank
Interest Rate
Announcement,
Thurs., Sep. 2,
7:45 am, ET.
In the
midst of a
global slowdown
and with the
sovereign debt
problems in the
Euro-zone not
completely
resolved yet,
the European
Central Bank
would not be in
a position to
raise rates
until next
year. It is
likely that the
ECB monetary
policy will
remain
accommodative.
Especially
interesting at
this ECB
meeting will be
to see if
policy makers
would follow
the footsteps
of the Fed and
the Bank of
Japan and
consider
additional
monetary
stimulus. The
EUR could come
under pressure
if the ECB
opens the door
to further
quantitative
easing.
9.
USD-
U.S. Non-Farm
Payrolls and
Employment
Situation
Report,
one of the most
important
indicators of
economic
health,
measuring the
number of new
jobs created or
lost in the
world’s
largest
economy, Fri.,
Sep. 3, 8:30
am, ET.
This
main spotlight
event of the
week will have
the potential
to disappoint
investors,
especially if
the private
sector of the
U.S. economy
loses jobs in
August for the
first time in
2010. The
consensus
forecasts point
to slower jobs
creation by
U.S. companies,
with private
payrolls
expected to add
44 K- a lesser
amount than the
71 K jobs
created in
July. The
non-farm
payrolls are
forecasted to
show the U.S.
economy losing
106 K to 120 K
jobs, and the
unemployment
rate is
expected to
increase to
9.6% from 9.5%
in
July.
10.
USD-
U.S. ISM
Non-Manufacturing
Index,
a leading
indicator of
economic
conditions in
the services
industries:
agriculture,
mining,
construction,
transportation,
communications,
wholesale trade
and retail
trade, Fri.,
Sep. 3, 10:00
am,
ET.
The
ISM
Non-Manufacturing
Index could
expose more
signs of U.S.
economic
slowdown with
activity in the
services
industries
retreating to
53.6 from a
previous
reading of
54.3.
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