The busy week comes to its climax with the monthly circus around the Non-Farm Payrolls. A gain in jobs is expected in this major release. And there’s more on the menu. Let’s see what’s awaiting us:
Australia left the interest rate unchanged at 3.75%, disappointing the markets. The RBA Monetary Policy Statement will give a further explanation to this decision at the start of the day.
Japanese Leading Indicators will give a general glimpse of the economy. The Yen is enjoying some risk aversive trading.
Britain’s PPI Input is predicted to rise by 0.7%, after a small rise of 0.1% last month. A bigger rise will force policymakers to rethink their policy. The accompanying figure, PPI Output, is predicted to rise by 0.3%. For more on GBP/USD, which is heading down, read the British Pound forecast.
In the Eurozone, also suffering from trouble, German Industrial Production drops 2.6% in December, following yesterday’s disappointing factory orders. Check out the technical levels at the EUR/USD forecast.
Moving across the Atlantic, Canadian employment figures improve slightly on part-time hires taking the unemployment rate down a notch to 8.3%. Currently the Canadian dollar is doing well against its American counterpart. For more on USD/CAD, read the Canadian dollar forecast.
Non-Farm Payrolls drop 20,000 in January and unemployment falls to 9.7%. November saw a rise in jobs, but this positive number was only seen in the revised version. Last month saw a disappointing drop in jobs. Yesterday’s weekly Employment Claims disappointed with a rise in claims, but the ADP NFP was better than expected.
In addition to these regular numbers, we have a revision of figures from April 2008 to March 2009 this time. According to this report, a big downwards revision is predicted. Although this will be negative, the market focuses on fresh data, and I believe that we won’t see a big impact.
The US unemployment rate isn’t expected to move from 10%. If the figure return to a single digit, this will sure help the dollar.
For more, read my Non-Farm Payrolls preview.
That’s it for the day and the week. Happy forex trading!
Yohay Elam is the owner of Forex Crunch, a blog about the foreign exchange market. It includes tutorials, basics of the forex market, daily and weekly forex analysis, technical analysis, forex software posts, and whatever is related to Forex.
Article copyrighted by Yohay Elam. Content published with author's permission.
