Dec. 3, 2010 (Allthingsforex.com) – Although the week ahead will be light on U.S. economic data, four interest rate announcements from the Reserve Bank of Australia, the Bank of Canada, Reserve Bank of New Zealand and the Bank of England would provide plenty of reasons to keep FX traders occupied.
In preparation for the new trading week, here is a list of the Top 10 spotlight economic events that will move the markets around the globe.
1. CAD- Canada Ivey PMI- Purchasing Managers’ Index, a leading indicator of economic conditions measuring the activity of purchasing managers in all sectors of the economy, Mon., Dec. 6, 10:00 am, ET.
The Canadian economic activity is forecast to pick up with an Ivey index reading of 59.3 from 56.7 in the previous month.
2. AUD- Reserve Bank of Australia Interest Rate Announcement, Mon., Dec. 6, 10:30 pm, ET.
With China cooling off and the Australian economy showing signs of a slowdown, the Reserve Bank of Australia could decide to keep interest rates unchanged following the surprising rate hike the month before.
3. GBP- U.K. Industrial Production and Manufacturing Output, the main gauge of industrial activity measuring the output of factories, mines and utilities, Tues., Dec. 7, 4:30 am, ET.
The U.K. manufacturing output is forecast to increase by 0.4% m/m from 0.1% m/m, but the industrial production could slow to 0.2% m/m from 0.4% in the previous month.
4. CAD- Bank of Canada Interest Rate Announcement, Tues., Dec. 7, 9:00 am, ET.
Although economic activity has improved and inflationary pressures have increased recently, the Bank of Canada is expected to refrain from raising interest rates as policy makers prudently allow some time to assess domestic and global economic conditions, and decide whether to extend their campaign of rate hikes into 2011.
5. NZD- Reserve Bank of New Zealand Interest Rate Announcement, Wed., Dec. 8, 3:00 pm, ET.
In its final meeting for the year, the Reserve Bank of New Zealand would be likely to keep interest rates unchanged as the economy slows and investors remain fearful that the debt crisis in Europe is far from over.
6. JPY- Japan GDP- Gross Domestic Product, the main measure of economic activity and growth, Wed., Dec. 8, 6:50 pm, ET.
The final estimate of the Japanese Q3 GDP is expected to show faster economic growth in the third quarter by 1.0% q/q from 0.9% q/q in Q2 2010.
7. AUD- Australia Employment Situation and Unemployment Rate, the main gauge of employment trends and labor market conditions, Wed., Dec. 8, 7:30 pm, ET.
The Australian unemployment rate is forecast to decrease to 5.2% from 5.4%, while the economy adds 21.3 K jobs compared with the 29.7 K jobs created in the previous month.
8. GBP- Bank of England Interest Rate Announcement, Thurs., Dec. 9, 7:00 am, ET.
In the midst of the Euro-zone debt crisis and as policy makers remain cautious about the effects of the government’s record spending cuts on the U.K. economy, the Bank of England would not be in a position to make any changes to their current record low interest rate of 0.5%. Moreover, the members of the Monetary Policy Committee could continue to keep the lid on the 200 billion pounds Asset Purchase Program, avoiding the quantitative easing route for another month.
9. USD- U.S. Jobless Claims, an important gauge of employment trends and labor market conditions, Thurs., Dec. 9, 8:30 am, ET.
Following the largest drop in a year of applications for unemployment benefits, a reading close to 400,000 would mark another week of consistent improvement in the U.S. labor market.
10. USD- U.S. Consumer Sentiment, the University of Michigan's monthly survey of 500 households on their financial conditions and outlook of the economy, Fri., Dec. 10, 9:55 am, ET.
The outlook of U.S. consumers could continue to improve ahead of the holiday shopping season with consensus forecasts pointing to a preliminary reading of 72.2 in December, up from 71.6 in the previous month.
In preparation for the new trading week, here is a list of the Top 10 spotlight economic events that will move the markets around the globe.
1. CAD- Canada Ivey PMI- Purchasing Managers’ Index, a leading indicator of economic conditions measuring the activity of purchasing managers in all sectors of the economy, Mon., Dec. 6, 10:00 am, ET.
The Canadian economic activity is forecast to pick up with an Ivey index reading of 59.3 from 56.7 in the previous month.
2. AUD- Reserve Bank of Australia Interest Rate Announcement, Mon., Dec. 6, 10:30 pm, ET.
With China cooling off and the Australian economy showing signs of a slowdown, the Reserve Bank of Australia could decide to keep interest rates unchanged following the surprising rate hike the month before.
3. GBP- U.K. Industrial Production and Manufacturing Output, the main gauge of industrial activity measuring the output of factories, mines and utilities, Tues., Dec. 7, 4:30 am, ET.
The U.K. manufacturing output is forecast to increase by 0.4% m/m from 0.1% m/m, but the industrial production could slow to 0.2% m/m from 0.4% in the previous month.
4. CAD- Bank of Canada Interest Rate Announcement, Tues., Dec. 7, 9:00 am, ET.
Although economic activity has improved and inflationary pressures have increased recently, the Bank of Canada is expected to refrain from raising interest rates as policy makers prudently allow some time to assess domestic and global economic conditions, and decide whether to extend their campaign of rate hikes into 2011.
5. NZD- Reserve Bank of New Zealand Interest Rate Announcement, Wed., Dec. 8, 3:00 pm, ET.
In its final meeting for the year, the Reserve Bank of New Zealand would be likely to keep interest rates unchanged as the economy slows and investors remain fearful that the debt crisis in Europe is far from over.
6. JPY- Japan GDP- Gross Domestic Product, the main measure of economic activity and growth, Wed., Dec. 8, 6:50 pm, ET.
The final estimate of the Japanese Q3 GDP is expected to show faster economic growth in the third quarter by 1.0% q/q from 0.9% q/q in Q2 2010.
7. AUD- Australia Employment Situation and Unemployment Rate, the main gauge of employment trends and labor market conditions, Wed., Dec. 8, 7:30 pm, ET.
The Australian unemployment rate is forecast to decrease to 5.2% from 5.4%, while the economy adds 21.3 K jobs compared with the 29.7 K jobs created in the previous month.
8. GBP- Bank of England Interest Rate Announcement, Thurs., Dec. 9, 7:00 am, ET.
In the midst of the Euro-zone debt crisis and as policy makers remain cautious about the effects of the government’s record spending cuts on the U.K. economy, the Bank of England would not be in a position to make any changes to their current record low interest rate of 0.5%. Moreover, the members of the Monetary Policy Committee could continue to keep the lid on the 200 billion pounds Asset Purchase Program, avoiding the quantitative easing route for another month.
9. USD- U.S. Jobless Claims, an important gauge of employment trends and labor market conditions, Thurs., Dec. 9, 8:30 am, ET.
Following the largest drop in a year of applications for unemployment benefits, a reading close to 400,000 would mark another week of consistent improvement in the U.S. labor market.
10. USD- U.S. Consumer Sentiment, the University of Michigan's monthly survey of 500 households on their financial conditions and outlook of the economy, Fri., Dec. 10, 9:55 am, ET.
The outlook of U.S. consumers could continue to improve ahead of the holiday shopping season with consensus forecasts pointing to a preliminary reading of 72.2 in December, up from 71.6 in the previous month.