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Forex - Weekly outlook: March 1-5

Published 02/28/2010, 04:20 AM

Investing.com - The week beginning March 1 follows one during which the euro approached a 9-month low against the dollar, in the wake of a spate of disappointing U.S. economic data and persisting concerns over Greece. 

France and Germany have reportedly agreed to bail out Greece, but only if the debt-laden country commits to slash public spending. Further news of the plans for a bailout is likely to emerge next week. 

The jittery markets will also scrutinize a flurry of data next week. 

The United States is due to publish data on unemployment, the housing market and its manufacturing sector. The European Central Bank, meanwhile, is set to announce its minimum bid rate decision, which will be followed by a closely watched press conference. 

Also next week, Britain is scheduled to release its services and manufacturing PMIs, and the Bank of England is set to announce decisions on interest rates and its asset purchase facility. 

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

Monday, March 1 

The week will begin with the release of China's manufacturing Purchasing Managers' Index, a leading indicator of economic health. Later, the financial services group Markit will publish Britain's manufacturing PMI. 

The European Union will announce the euro zone's unemployment rate.

Canada will then release monthly GDP data, the broadest measure of economic activity. 

Later Monday, the Institute for Supply Management will publish its manufacturing PMI for the U.S. 

Tuesday, March 2 

Australia will release monthly data on retail sales and the number of new building approvals issued. The Reserve Bank of Australia will then announce the cash rate and deliver the accompanying rate statement. 

Canada's central bank, meanwhile, will announce its overnight rate and release a statement, which lists the market conditions that influenced the rate decision. Switzerland will also release quarterly data on its GDP. 

Also Tuesday, the European Union will release its Consumer Price Index flash estimate, a key indicator of inflation in the region. 

Wednesday, March 3 

Australia will announce its GDP, after which Japan will release data on average cash earnings. 

Later in the day, Markit will publish its services PMI for Britain. 

Two key reports will then be released in the U.S.: The ISM non-manufacturing PMI and ADP's non-farm employment change. The latter data on the U.S. job market provides a key indicator of consumer spending, which accounts for the majority of overall economic activity. 

Thursday, March 4 

Australia will announce its trade balance, the difference in value between imported and exported goods and services during the reported month. 

The Bank of England will then state its decision on its quantitative easing program and announce its interest rates decision. 

The European Central Bank, meanwhile, will announce its minimum bid rate, the interest rate on the main refinancing operations that provide the bulk of liquidity to the banking system. The bank will then hold a press conference. 

The EU will release its revised quarterly GDP figures. 

Later, Canada will release monthly data on building permits, an excellent gauge of future construction activity, and the Ivey School of Business will release its PMI for the country. 

Also Thursday, the U.S. will publish key reports on unemployment claims and pending home sales. 

Friday, March 5 

Britain will release its Producer Price Index Input, a leading indicator of inflation that has added importance since it comes ahead of the country's CPI. 

Germany's central bank will then publish data on German factory orders, which indicates production activity in the euro zone's largest economy. 

The U.S. will close the week with important reports on non-farm employment change and the unemployment rate, both of which point to the state of the country's overall economic health.

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