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The Trading Week

The Trading Week: June 1 − June 6

Fri, May 30 2008, 02:36 GMT
by Ilian Yotov

AllThingsForex

May 30, 2008 (Allthingsforex.com) – The U.S. Non-Farm Payrolls and four Interest Rate announcements from major central banks will kick-start the trading month ahead.

In preparation for the new trading week, here is a quick look at the most important economic events that every currency trader should pay attention to.

Sunday, June 1 will start the trading session with a strong sequence of significant economic releases from “down under”, beginning with the Australian Manufacturing PMI- Purchasing Managers Index of the level of activity by purchasing managers in the manufacturing sector, at 7:30 pm, ET.

The first spotlight event of the week- the Australian TD Securities Melbourne Institute Inflation Gauge, used a timely monthly indicator of the official quarterly Consumer Price Index, will come out at 8:30 pm, ET, followed by the Australian Retail Sales, the main gauge of consumer spending, at 9:30 pm, ET.

The day will conclude with the Australian Company Gross Operating Profits and the Japanese Average Cash Earnings, measuring the monthly change in the wages paid to jobholders, both scheduled at 9:30 pm, ET.

Monday, June 2 will begin early with an important economic release- the Swiss GDP- Gross Domestic Product, the main measure of economic activity and growth, at 1:45 am, ET, and the Australian Index of Commodity Prices, at 2:30 am, ET.

News from the U.K. will bring the Halifax House Price Index of the monthly change in the average asking price of residential properties, expected around 3:30 am, ET, along with the Swiss PMI-Purchasing Managers' Index, measuring the activity level of purchasing managers in the manufacturing and service sectors, also at 3:30 am, ET. 

The U.K. data sequence will continue with the Manufacturing PMI- Purchasing Managers' Index, the U.K. Mortgage Approvals and Lending to Individuals, all due at 4:30 am, ET.

The U.S. releases will deliver a spotlight event- the ISM Manufacturing Index, a composite diffusion index of national conditions in the manufacturing sector, at 10:00 am, ET, along with the U.S. Construction Spending, also at 10:00 am, ET. If the Institute for Supply Management Index shows a reading below 50, that would indicate economic contraction.

The day will end with the Japanese Monetary Base, at 7:50 pm, ET, the Australian Building Approvals and Current Account of goods, services and transfer of payments into and out of the country, both scheduled at 9:30 pm, ET.

Tuesday, June 3 will be a day filled with important economic releases, starting with one of the major spotlight events of the week- the Reserve Bank of Australia's Interest Rate Announcement, at 12:30 am, ET.

Another significant economic event- the Swiss CPI- Consumer Price Index, the main measure of inflation, will be released at 1:45 am, ET, followed by the U.K. Construction PMI- Purchasing Managers' Index, at 4:30 am, ET.

News from the Euro-zone will bring two spotlight events- the Euro-zone GDP- Gross Domestic Product, the main measure of economic activity and growth, and the Euro-zone PPI- Producer Price Index, the measure of the level of inflation experienced by manufacturers, both due at 5:00 am, ET.  

There will be only one notable U.S. release for that day- the U.S. Factory Orders, representing the dollar level of new factory orders for both durable and nondurable goods, at 10:00 am, ET.

The day will conclude with the U.K. Consumer Confidence Index, a survey of consumers’ financial conditions and attitudes about the economy, at 7:00 pm, ET, followed by the Australian Services PMI- Purchasing Managers' Index, at 7:30 pm, ET, and the Japanese Capital Spending, at 7:50 pm, ET.

Two important economic releases- the Australian GDP- Gross Domestic Product, the main measure of economic activity and growth, at 9:30 pm, ET, and New Zealand’s Commodity Price Index, at 11:00 pm, ET, will wrap up the busy day.

Wednesday, June 4 will begin with the German Services PMI- Purchasing Manager's Index at 3:55 am, ET, the Euro-zone Services PMI at 4:00 am, ET, and the U.K. Services PMI, at 4:30 am, ET.

More European news will bring a spotlight event- the Euro-zone Retail Sales, the main measure of consumer spending, at 5:00 am, ET, followed by the U.K. BRC- British Retail Consortium Shop Price Index, measuring the rate of inflation experienced by retailers, at 5:30 am, ET.

The U.S. data will deliver a spotlight event- the ADP-Automatic Data Processing Employment Report, a preliminary estimate that could help to predict the monthly non-farm payrolls, at 8:15 am, ET, followed by the U.S. Non-farm Productivity and Labor Costs Index, measuring the growth of labor efficiency in producing the economy's goods and services, at 8:30 am, ET.

The U.S. news will continue with another spotlight event- the ISM Non-Manufacturing Index of economic conditions in industries like agriculture, mining, construction, transportation, communications, wholesale trade and retail trade, at 10:00 am, ET, and the EIA- Energy Information Administration Weekly Oil Inventories, at 10:30 am, ET.

The day will end with a spotlight event- the Reserve Bank of New Zealand’s Interest Rate Decision, at 5:00 pm, ET, followed by the Australian Trade Balance of the difference between the country’s imports and exports, at 9:30 pm, ET.

Thursday, June 5 will begin early with the French Unemployment Rate at 2:45 am, ET, and the German Factory Orders, at 6:00 am, ET.

Two of the main spotlight events of the week will follow- Bank of England's Interest Rate Decision at 7:00 am, ET and the European Central Bank's Interest Rate Decision at 7:45 am, ET. No rate changes are expected from both of these central banks.

After the interest rate announcements, the U.S. Weekly Jobless Claims and the Canadian Housing Starts and Building Permits will be released at 8:30 am, ET.

Another important event that morning will be the European Central Bank President Jean-Claude Trichet's speech at 8:30 am, ET at the press conference following the ECB Governing Council's interest rate decision. The language of the statement will be very closely watched for any hints of future changes in the ECB’s monetary policy.

More U.S. data will bring the EIA- Energy Information Administration Weekly Natural Gas Inventories, at 10:30 am, ET, the U.S. Treasury Strips, a report of the amount of net stripping of Treasury securities that has taken place during the month, at 3:00 pm, ET, and the U.S. Money Supply by degree of liquidity, at 4:30 pm, ET.

The day will end with the Australian Construction PMI- Purchasing Managers' Index, at 7:30 pm, ET.

Friday, June 6 will start with the French Trade Balance of the difference between the imports and exports of the Euro-zone’s second-largest economy, at 2:45 am, ET, and the German Industrial Production, at 6:00 am, ET.

Later on, the Canadian Unemployment Rate and Employment Change will hit the newswires at 7:00 am, ET.

The trading week will conclude with its main spotlight economic event- the U.S. Non-Farm Payrolls and Employment Situation Report, one of the most important indicators of economic health, measuring the number of new jobs created, scheduled at 8:30 am, ET, along with the U.S. Unemployment Rate and Average Hourly Earnings, also due at 8:30 am, ET.

The U.S. Wholesale Trade, a measure of the dollar value of sales made and inventories held by merchant wholesalers, at 10:00 am, ET, and the U.S. Consumer Credit, measuring the dollar value of outstanding consumer installment credit, at 3:00 pm, ET, will wrap up the crucial for the future fate of the U.S. Dollar first trading week of the month.

Published on  Fri, May 30 2008, 02:37 GMT