We start the week with exciting news; in New Zealand the NBNZ Business Confidence, Survey, The Group of Twenty (G20); is entering the second day, in Japan the Retail Sales are rising and lots more, let’s see what awaits us today.
In the US, Federal Open Market Committee (FOMC); Reserve Governor Kevin Warsh speaks at the Rotary Club, in Atlanta. Audience questions expected; and affects on where to set the nation’s key interest rates
Later in the US, Personal Spending and Personal Income are forecasted to rise by 1%. Consumer spending accounts for a majority of overall economic activity. Income is correlated with spending – the more disposable income consumers have, the more likely they are to increase spending;
Finally in the US, Core PCE Price Index Released monthly and measures the change in the price of goods and services purchased by consumers, excluding food and energy; is fairly stable and about to rise up by 1%.
Moving on to Europe, German Prelim Consumer Price Index (CPI); released monthly that measures the change in the price of goods and services purchased by consumers; is about to rise in 1% and affects the Bank interest rates.
Also in Europe, M3 Money Supply, released monthly that measures the change in the total quantity of domestic currency in circulation and deposited in banks; is about to rise up by 3% , it/’s correlated with interest rates first leads to spending and investment, and later leads to inflation.
Later in Europe, Private Loans, released monthly and measures the change in the total value of new loans issued to consumers and businesses in the private sector is about to rise by 1% and shows financial confidence
Borrowing and spending are positively correlated – consumers and businesses tend to seek credit when they are in their future and feel comfortable spending money;
For more on the Euro, read the EUR/USD forecast and Casey Stubbs’ latest analysis.
The Group of Twenty (G20); is entering the second day, to meet about a range of global economic issues including the fiscal deficits, in Toronto. The G20 is an influential global policy-making body operating at the highest level, and can impact the currency markets;
In New Zealand, NBNZ Business Confidence, Survey of about 1,500 businesses which asks respondents to rate the relative 12-month economic outlook, 48.2 indicates optimism and measures the level of a diffusion index based on surveyed manufacturers, and service providers; a leading indicator.
Later in New Zealand, Building Permits, released monthly and measures the change in the number of new building approvals issued. Construction is important because it produces a wide-reaching ripple effect.
In Japan, a significant rise on Household Spending from – 0.7% to 0.4%. Consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health and measures the change in the total value of inflation-adjusted expenditures by consumers.
More in Japan, a slightly rise from last month by 0.2% on Retail Sales, It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity and measures the change in the total value of sales at the retail level.
A small rise from last month of 0.1% on Prelim Industrial Production that measurers the Change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities; and also in the Unemployment Rate that measures the Percentage of the total work force that is unemployed and actively seeking employment during the previous month;
That’s it for today. Happy forex trading!
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