On the week of Christmas, the dollar managed to edge up against quite a few currencies. We end 2014 with US CB Consumer Confidence and Unemployment Claims and open 2015 with US ISM Manufacturing PMI. Join our weekly outlook with the main market movers to impact Forex trading. Happy 2015!
Last week, the final revision to US GDP in Q3 came out better than expected, crossing the 4% growth rate for the second consecutive quarter. US economy expanded 5% between July and September, beating the preliminary estimate of 3.9% and the median forecast of 4.3%. The strong expansion indicates the US economy will close 2014 on a strong note. More positive data was released from the US labor market with a continued decline in the number of initial unemployment claims, noting the US job market continues to improve with increased hiring and fewer dismissals. Will the US economy continue to expand in 2015?Updates:
- US CB Consumer Confidence: Tuesday, 15:00. U.S. consumer confidence declined in November to a five month low of 88.7 after posting 94.5 in October. Consumer’s confidence regarding current-business conditions and short-term outlook dropped considerably. Analysts expected confidence to rise to 95.9. Economists expect consumer sentiment will reach 94.6 in December.
- US Unemployment Claims: Wednesday, 13:30. The number of new applications for unemployment benefits declined last week to its lowest level since early November, indicating the job market continues to demonstrate strength. Initial jobless claims dropped by 9,000 to a seasonally adjusted 280,000. Economists expected claims to reach 290,000. The less volatile four-week moving average fell 8,500 to 290,250 indicating companies seek to hold on to their workers and hire new ones. The number of weekly claims is expected to reach 287,000 this week.
- US ISM Manufacturing PMI: Friday, 15:00. The U.S. manufacturing sector lost momentum in November, reaching 58.7 after a 59 points reading in the prior month. Economists expected a lower figure of 57.9. New Orders Index increased to 66, from October’s reading of 65.8; the Production Index reached 64.4%, down from the previous reading of 64.8; and the Employment Index declined to 54.9, compared to the precious reading of 55.5. Lower energy prices gave a boost to the manufacturing sector, increasing consumer’s demand and the continued strength of the Us labor market also contributes to growth. Manufacturing PMI is forested to reach 57.6 this time.
That’s it for the major events this week. Stay tuned for coverage on specific currencies
*All times are GMT.
In our latest podcast, we run down all aspects of the Fed decision, discuss the running down of oil, the run down Russian ruble and the weak currency down under:
- For EUR/USD, check out the Euro to Dollar forecast.
- For the Japanese yen, read the USD/JPY forecast.
- For GBP/USD (cable), look into the British Pound forecast.
- For the Australian dollar (Aussie), check out the AUD to USD forecast.
- For USD/CAD (loonie), check out the Canadian dollar
- For the kiwi, see the NZDUSD forecast.