As we start off the first week of 2011, the greenback seems poised to make some significant gains, as analysts are forecasting a number of positive indicators out of the US. Traders will want to pay particular attention to any US employment forecasts ahead of this Friday’s Non-Farm Employment Change report.
In the meantime, here is a roundup of the today’s main news:
15:00 GMT: USD ISM Manufacturing PMI
The Manufacturing PMI is a survey of about 400 purchasing managers who are asked to rate a number of business conditions in the US. It is widely considered a leading indicator of economic health, with a figure about 50 signaling industry expansion.
Last month’s PMI came in at 56.6, a slight drop from October, but still a solid figure. Today’s figure is forecasted to come in around 57.1. If so, it would signal significant growth in the US economy, and will likely lead to gains for the dollar against its main currency rivals.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
