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Forex Daily Outlook September 3 2012

We began the week with retail sales figures in Switzerland, Australia and the UK and manufacturing data in the Euro-Zone and the UK. These are the main highlights on today’s outlook. Let’s see what awaits us today.

In Europe, Mario Draghi president of the ECB is expected to speak at the European Parliament’s Economic and Monetary Affairs Committee, in Brussels. His words may create volatility in the market.

Later in Europe, Spanish Manufacturing PMI slightly improved during July, rising to 42.3 after a 41.1 reading in the previous month but still continues the long contraction trend.

Later on in Europe, Italian Manufacturing PMI. Italian manufacturing sector slowed down in July dropping to 44.3 from 44.6 in June a bit higher than the 44.2 predicted by analysts but still below the 50 point line indicating contraction. An increase to 45.0 is expected now.

More in Europe, Final Manufacturing PMI in the Euro-Zone continues to decline falling to a 37-month low of 44.0, lower than the 45.1 release in June. An increase to 45.3 is forecasted now.

For more on the Euro, read the  Euro to dollar forecast.

In Great Britain, Manufacturing PMI measuring the state of the manufacturing sector in the UK declined more than expected in July reaching 45.4 after posting 48.4 in June. Economists expected an increase to 48.7. This reading indicates that the contraction trend is continuing pulling the score further away from expansion.

Later in Great Britain, BRC Retail Sales Monitor,  an early indicator of retail sales increased slightly in July by 0.1% after expanding 1.4% in June, indicating a slowdown in the retail level.

Read more about the Pound in the  GBP/USD forecast.

In Switzerland, Retail Sales a strong indicator of consumer spending jumped 3.7% in June compared to the same month a year ago, following another leap of 6.4% in June. The reading was higher than the 2.8% growth predicted by economists. A further increase of 4.5% is anticipated this time.

Later in Switzerland, SVME PMI a manufacturing sector gauge increased unexpectedly in July reaching 48.6 following 48.1 in June. A further increase to 49.2 is expected now.

Read more about the Swiss franc in the USD/CHF forecast.

In Australia, Retail Sales in June edged up 1.0% after rising 0.8% in May, beating predictions of a 0.6% rise. An increase of 0.3% is expected this time.

Later in Australia, ANZ Job Advertisements. The quantity of ads posted during July declined by 0.8% following a 1.1% drop in the previous month suggesting a slowdown in the Job market.

Later on in Australia, Company Operating Profits. Australian companies continued to decrease their profit in the first quarter dropping 4.0% following a worse decline of 6.4% in the fourth quarter of 2011. The reading was worse than the 2.1% decline predicted by economists. A 1.2% increase is expected now.

For more on the Aussie, read the  AUD/USD forecast.

In Japan, Monetary Base continued to rise during July with 8.0% climb after a 5.9% increase in June, well above predictions of a 6.2% increase. Domestic currency in circulation is expected to expand further by 9.4%.

Read more about the yen in the USD/JPY forecast.

Trade well

Anat Dror

Anat Dror

Anat Dror Senior Writer I conceptualize, design and create multi-lingual websites. Apart from the technical work, my projects usually consist of writing content for these sites in English, French and Hebrew. In the past, I have built, managed and marketed an e-learning center for language studies, including moderating a live community of students. I've also worked as a community organizer