U.S. ADP Non-Farm Employment Change, U.S. Treasury Secretary Timothy Geithner’s speech in Washington DC and Canada’s Ivey PMI are the most influential events in the next 24 hours. Here is an outlook on the major activities awaiting us today.
In the U.S., ADP Non-Farm Employment Change dropped 10K last month which did not correlate with the Non-Farm Payrolls’s positive number. Nevertheless a 22K rise is expected now.
More in the U.S., U.S. Treasury Secretary Timothy Geithner speaks at the Brookings Institution, in Washington DC and will discuss progress made in strengthening the economy; remaining challenges, including rebalancing and governance issues; and opportunities ahead. His speech will have direct market impact.
Later in the U.S., Crude Oil Inventories, an important commodity in the global market, fell by 0.5 million barrels in the previous week. A similar figure is expected as the market looks toward a tightening of supply/demand balances on the back of strong emerging market demand.
Finally in the U.S., Job cuts released monthly fell in August from a year earlier, a sign of improvement in the labor market. Planned firings dropped 55 percent to 34,768 last month from 76,456 in August 2009. While companies are cutting fewer workers from payrolls, larger job gains are needed to keep up with consumer demand and sustain the recovery. A similar drop is expected now.
In Canada, Ivey PMI a leading indicator of economic health skyrocketed last month with an outstanding and unexpected result of 65.9 points when forecasts expected a rise to 56.0. This has given a major boost to the Canadian’s economy. A small drop to 63.2 is expected now.
For more on USD/CAD, read the Canadian dollar forecast.
In Europe, German factory orders unexpectedly declined 2.2 percent in July as demand in the euro region weakened. The forecasts predict a 0.9 percent gain in August.
More in Europe, Gross Domestic Product (GDP) increased by one per cent in both the 16-member euro zone and across the 27 member states of the European Union during the second quarter of 2010 the same increase is expected now.
In Great Britain, Halifax HPI a leading indicator of the housing industry’s health reported a slight rise of 0.2% despite a negative forecast. A continued rise of 0.6% is expected now although Activity is very slow since the beginning of the year.
Read more about the Pound in the GBP/USD forecast.
In Australia, The Australian Performance of Construction Index was down 0.1 points to reach 43.2 in August 2010 from 43.3 points the previous month. The Index has decreased for the third consecutive month in August and remains below the 50 points level. Another drop is expected now.
For more on the Aussie, read the AUD/USD forecast.
In Japan, BOJ Monthly Report will describe their intervention in the market causing the yen to surge over 1% and provide a detailed analysis of current and future economic conditions from the bank’s viewpoint.
Finally in Japan, That’s it for today. Happy forex trading!
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