Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - Weekly outlook: November 8-12

Published 11/07/2010, 04:32 AM
CL
-
NG
-
KING
-
Investing.com – Last week saw the U.S. dollar rally after Friday’s significantly better-than-expected non-farm payrolls data, reversing some of the losses which followed the Federal Reserves announcement of a second round of quantitative easing.

On Friday, the U.S. Department of Labor said that non-farm payrolls rose more-than-expected in October, climbing by 151K after falling by a revised 41K in September. Analysts had expected non-farm payrolls to rise by 60K in October.

The report came two days after the Federal Reserve announced that it would buy USD 600 billion of U.S. government bonds over the next eight months in an effort to kick-start a "disappointingly slow" economic recovery. The bank also kept open the possibility of doing more if growth and inflation failed to rise in the coming months.

Following the Fed's announcement, the Australian dollar closed above parity with its U.S. counterpart for three successive days while New Zealand’s dollar closed the week’s trading at a 30-month high.

Meanwhile, in the euro zone concerns over sovereign debt continued as Ireland’s borrowing costs rose to record highs on Friday after the government announced a package of EUR 15 billion in spending cuts aimed at reducing the country’s budget deficit, currently standing at 32% of GDP.

In the coming week, the U.S. is to release its weekly report on initial jobless claims one day early due to a U.S. public holiday on Thursday. The country is also to release key data on its trade balance and consumer sentiment.

The euro zone is to release preliminary data on Germany’s gross domestic product while in the U.K. the Bank of England is to publish its quarterly inflation report. The country is also to release data on manufacturing, trade balance and consumer confidence.

Australia is to publish official data on employment and home loans as well as industry data on business confidence and consumer sentiment. Meanwhile, New Zealand’s central bank is to publish it quarterly report on financial stability. Canada is to release official data on housing starts and trade balance. In addition, the governor of the country’s central bank is to speak.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, November 8

Australia will begin the week with a report on the change in the number of jobs advertised in the preceding month, an important indicator of employment conditions.

The Bank of Japan is to publish its monthly report, which provides details on the banks view of the current and future economic outlook. Later in the day, Japan is to publish an index of leading economic indicators, intended to predict the future direction of the economy. The country is also to produce data on bank lending, its current account and money stock.

Switzerland is to publish official data on the unemployment rate while the euro zone is to release official data on German industrial production and trade balance, as well as data on investor confidence in the wider euro zone.

Canada is to publish official data on housing starts, a leading indicator of economic health. Meanwhile, in the U.S., two members of the Federal Reserve Open Market Committee are to deliver speeches, their comments will be closely watched for clues to the future direction of monetary policy.

Tuesday, November 9

The U.K. is to publish industry data on retail sales and house prices, both leading indicators of economic health. Later in the day, the country is to publish official reports on manufacturing and industrial production, leading indicators of economic health, as well as data on the country’s trade balance, the difference in value between imported and exported goods.

The euro zone is to release final data on German consumer price inflation as well as a report on France’s trade balance while Switzerland is to publish official data on consumer climate, a leading indicator of consumer spending.

Later in the day, the U.S. is to publish data on economic optimism and wholesale inventories while the governor of the Bank of Canada, Mark Carney is to speak at a public engagement. His comments will be closely watched for clues to the future direction of monetary policy.

Australia is to publish two reports, one on business confidence and one on consumer sentiment while the Reserve Bank of New Zealand is to publish its bi-annual financial stability report which details the factors which affect the future direction of interest rates.

Wednesday, November 10

The U.S. is to release key weekly data on initial jobless claims, a leading indicator of economic health. The data is being released a day earlier than usual as Thursday will be a national holiday. The country is also to publish data on its federal budget balance, trade balance and import prices as well as reports on crude oil and natural gas inventories.

In the U.K., the Bank of England is to publish its quarterly inflation report which includes the banks projection for inflation and economic growth over the next 2 years. Following the report the Governor of the BoE Mervyn King is to address a press conference and his comments will be carefully examined foe possible clues to the future direction of monetary policy.

In the euro zone, France and Italy are to publish data on industrial production while Japan is to release official data on core machinery orders, a leading indicator of manufacturing production.
Australia is to publish official data on home loans, a leading indicator of economic health while New Zealand is to publish data on manufacturing and food price inflation. Also Wednesday, Canada is to publish data on its trade balance.

Thursday, November 11

Markets in both the U.S. and Canada will remain closed for a bank holiday. 

Meanwhile, Australia is to release official government data on employment change, as well as the country's unemployment rate. The country is also to produce key data on inflation expectations.

Elsewhere, the European Central Bank is to release its monthly bulletin, which gives detailed analysis of current and future economic conditions from the bank's point of view.

Friday, November 12

In the euro zone, France, Germany and Italy are each to produce preliminary data on gross domestic product, the leading indicator of economic growth. Later in the day, the euro zone is due to release preliminary data on the GDP of the wider 16-nation region as well as data on industrial production, a leading indicator of economic health.

Elsewhere, the U.K. is to produce industry data on consumer confidence, as well as an index of leading economic indicators, designed to predict the future direction of the economy.

Meanwhile, the U.S. will round up the week with preliminary data from the University of Michigan on consumer sentiment and inflation expectations.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.