Very exciting events await us today, FOMC Statement in the US, Halifax HPI in UK and much more. Let’s see what awaits us today.
In the US, Federal Open Market Committee (FOMC) that is scheduled 8 times per year discusses the economic outlook and offers clues on the outcome of future votes and contains the outcome of their vote on interest rates and other policy measures. The FOMC usually changes the statement slightly at each release to keep traders focused.
Later in the US, Federal Funds Rate, the Interest rate at which banks lend balances held at the Federal Reserve to other banks overnight is 0.25%/ Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future.
Further in the US, Automatic Data Processing, Inc. (ADP); Non-Farm Employment Change in the employed people during the previous month is about to rise by 60 K . Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
More in the US, The Institute for Supply Management (ISM), Non-Manufacturing Purchasing Managers’ Index (PMI) Monthly Survey of about 400 purchasing managers is about to rise to 53.5 points indicating industry expansion.
Later in the US, Crude Oil Inventories, the number of barrels of crude oil held in inventory by commercial firms during the past week is about to drop down by 6.3M. it most affects the loonie due to Canada’s sizable energy sector and influences the price of petroleum products which affects inflation, but also impacts growth as many industries rely on oil to produce goods.
Finally in the US, Factory Orders, new purchase orders placed with manufacturers; is about to rise by 1.8% and affects the rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
In Great Britain, MPC Rate Statement, It’s among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.
More in Great Britain , Halifax House Price Index (HPI), price of homes financed by HBOS is about to rise by 0.4%. There are 2 earlier reports on housing inflation, but this data is broad and based on HBOS’s internal mortgage approval figures, which can lead sale-completion indicators by more than a month.
Further in Great Britain, Asset Purchase Facility, Total value of money the Bank of England (BOE) will create and use to purchase assets in the open market is 200B. It increases demand for bonds which tends to lower long-term interest rates
Finally in Britain, Services PMI, Monthly Survey of purchasing managers to rate the relative level of business conditions is 52.4 and indicates industry expansion.
Read more about the Pound in the GBP/USD forecast.
In Switzerland, Retail Sales, total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations is expected to rise by 0.4%. It is a primary gauge of consumer spending, which accounts for the majority of overall economic activity.
More in Switzerland, Swiss National Bank (SNB); Governing Board Vice-Chairman Thomas Jordan is due to speak at the 5th Annual Meeting of the Swiss Financial Institute, in Zurich. Subtle clues regarding future monetary policy may be disclosed.
In Australia, Australian Industry Group (AIG); Services Index survey of about 200 service-based companies to rate the relative level of business conditions. Inventories; below indicates contraction; with 45.6 points.
For more on the Aussie, read the AUD/USD forecast.
In New Zealand, Employment Change, Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity is about to rise by 0.8%.
More in New Zealand, Unemployment Rate, total work force that is unemployed and actively seeking employment during the previous quarter is about to droop down by 0.1%. Unemployed people are an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions;
That’s it for today. Happy forex trading!
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