US PPI and Unemployment claims are the major market-movers. Let see what awaits us today.
In the US, Producer Price Index. Value of Manufactured output increased by 0.2% in January, below market consensus of a 0.3% gain and following a 0.2% decline in the prior month. Meanwhile Core PPI increased 0.2% in line with expectations, after a gain of 0.1% in December. PPI is expected to rise by 0.3%, while Core PPI is forecasted another rise of 0.2%.
Later in the US, Unemployment claims. The number of Americans filing initial claims for unemployment benefits edged down unexpectedly last week to 340,000 from 347,000 in the previous week. The reading was contrary to predictions of a 354,000 claims. A small rise to 348,000 is expected this time.
Later on in the US, Current account. Current account deficit narrowed in the third quarter to $108 billion vs. $118 billion in the second quarter, indicating the US imports exceeds its exports. Analysts expected an even better reading of $105 billion. This time Current account deficit is expected to reach$ 111 billion.
Finally in the US, Sarah Bloom Raskin, Federal Reserve Governor is expected to speak in Washington
In Canada, New Housing Price Index. Prices of new homes increased by 0.2% in December, in line with market expectations, after a 0.1% gain the previous month. A rise of 0.1% is forecasted this time.
For more on USD/CAD, read the Canadian dollar forecast.
In Europe, EU Economic Summit. European Union leaders will present budget-cutting plan at the March 14-15 summit in Brussels. According to the draft, “Substantial progress is being made toward structurally balanced budgets and must continue”. The leaders will also discuss the means to achieve oversight of euro-area lenders by the ECB. The EU leaders will also renew their endorsement of new budget rules that are due to take effect later this year, according to the draft.
Later in Europe, ECB Monthly bulletin. The ECB’s monthly bulletin released on February indicated inflation will drop below 2% over the next few months despite the Euro strength. The bulletin also forecasted that economic weakness will continue in the first part of 2013, but recovery should gradually begin later in the year.
For more on the Euro, read the Euro to dollar forecast.
In Switzerland, Libor rate. At the last Swiss National Bank meeting held in December no changes were made in the monetary policy and the rate was maintained at 0.25%. No change is expected this time. Following the rate decision the SNB will give its monthly policy assessment .
Read more about the Swiss franc in the USD/CHF forecast.
In Australia, Employment change. Australian economy added 10,400 new jobs in January following a 3,800 contraction in December, far better than the 5,800 addition forecasted by analysts. Meanwhile, Unemployment rate was maintained at 5.4%, better than the rise to 5.5% anticipated. The Job market is expected to gain 9,500 jobs this time; however unemployment rate is still expected to rise to 5.5%.
Later in Australia, Christopher Kent RBA Assistant Governor is expected to speak in Sydney.
Finally in Australia, MI Inflation Expectations. Melbourne Institute inflation forecast for the next 12 months, revealed a rise of 2.2% in January after a 2.0% increase in December. A similar increase is expected this time.
For more on the Aussie, read the AUD/USD forecast.
In New Zealand, Head of the Reserve Bank of New Zealand, Graeme Wheeler will speak in Wellington. His words can cause volatility in the market.
Later in New Zealand, Business NZ Manufacturing Index measuring manufacturers sentiment on business conditions, surged to 55.2 in January, following 50.4 in December, indicating expansion. Another rise is expected now.
For more about the kiwi, see the NZD/USD forecast.
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