A very hectic day is expected. In the US Fed Chairman Bernanke Testifies & speaks in Washington DC; in Canada GDP; Building Approvals in Australia; NBNZ Business Confidence in New Zealand and more interesting news. Let’s see what awaits us today.
In the US, Federal Reserve Chairman Ben Bernanke testifies on implementation of the Dodd-Frank Act before the Senate Committee on Banking, Housing, and Urban Affairs, in Washington DC. And later speaks at the Federal Reserve System Town Hall Meeting with Educators, in Washington DC. Volatility is often experienced during his speeches as traders attempt to decipher interest rate clues
Later in the US, Unemployment Claims shows a decrease of 8 K in the number of individuals who filed for unemployment insurance for the first time during the past week. The nation’s earliest economic data viewed as a lagging indicator, consumer spending is highly correlated with labor-market conditions.
More in the US, Final Gross Domestic Product (GDP) as stabilized on 1.6%, it’s the broadest measure of economic activity and the primary gauge of the economy’s health. And the Final GDP Price Index that measures the Annualized change in the price of all goods and services included in GDP; as stabilized on 1.9%.
Finally in the US, Chicago Purchasing Managers’ Index (PMI), Survey of purchasing managers in Chicago which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories; decreased by 1 point to 56 and still indicates expansion.
In Canada, GDP Gross Domestic Product (GDP); the It’s the broadest measure of economic activity and the primary gauge of the economy’s health has decreased by 3% and Canada is unique in that they release fresh GDP data on a monthly basis.
More in Canada, Bank of Canada (BOC) Governor Mark Carney delivers a speech at the Regional Chamber of Commerce, in Windsor. The speech text is due to be released 15 minutes earlier than the speaking time listed and Carney is due to hold a press conference 60 minutes after the speaking time listed. Volatility is sometimes experienced during his speeches as traders attempt to decipher interest rate clues.
For more on USD/CAD, read the Canadian dollar forecast.
In Europe, German Unemployment Change, the number of unemployed people during the previous month decreased by 3K; Although it’s generally viewed as a lagging indicator, consumer spending is highly correlated with labor-market conditions.
Later in Europe, Consumer Price Index (CPI) Flash Estimate, in the price of goods and services purchased by consumers; increased by 2% and Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;
In Great Britain, Nationwide House Price Index (HPI); a rise of 0.7% is forecasted in the change of homes selling price of with mortgages backed by Nationwide. This is the UK’s second earliest report on housing inflation. The impact tends to be significant but varies from month to month.
More in Great Britain, Bank of England (BOE) Monetary Policy Committee (MPC) Deputy Governor Paul Tucker delivers a speech at the Eurofi Financial Forum, in Brussels BOE MPC members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.
Later in Great Britain, Bank of England (BOE) Credit Conditions Survey of bank and non-bank lenders which asks respondents to rate the relative level of credit conditions in the past 3 months and next 3 months. It’s correlated with spending and confidence – rising debt levels are a sign that lenders feel comfortable issuing loans, and that consumers and businesses are confident in their financial position and eager to spend money;
Finally in Britain, Bank of England (BOE) Executive Director Paul Fisher speaks at the Loan Market Association Syndicated Loans Conference, in London; and engagements are often used to drop subtle clues regarding future monetary policy.
Read more about the Pound in the GBP/USD forecast.
In Australia, Building Approvals, the new building approvals issued number drooped by 3%, It’s an excellent gauge of future construction activity because obtaining government approval is among the first steps in constructing a new building. And it is important because it produces a wide-reaching ripple effect.
Later in Australia, Private Sector Credit, a rise of 2% is forecasted in the total value of new credit issued to consumers and businesses, Borrowing and spending are positively correlated – consumers and businesses tend to seek credit when they are confident in their future financial position and feel comfortable spending money
Finally in Australia, RBA Financial Stability Review, It’s an assessment of conditions in the financial system and potential risks to financial stability – the evidence on strains and imbalances can provide insight into the future of monetary policy.
For more on the Aussie, read the AUD/USD forecast.
In New Zealand, NBNZ Business Confidence, Survey of about 1,500 businesses which asks respondents to rate the relative 12-month economic outlook; businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment; indicates optimism with 6.4 points.
In Japan, Household Spending a rise of 0.3% in the total value of inflation-adjusted expenditures by consumers; Consumer spending accounts for a majority of overall economic activity. It’s one of the most important gauges of economic health due to the vast ripple effect consumer buying creates in the economy.
More in Japan, Tokyo CPI Ex Fresh Food, rise of 0.1% in the price of goods and services purchased by consumers in Tokyo, excluding fresh food. Tokyo is Japan’s most populated city and releases CPI data a month ahead of National CPI, Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
That’s it for today. Happy forex trading!
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