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The Trading Week

The Trading Week: Aug. 3 − Aug. 8

Fri, Aug 1 2008, 00:07 GMT
by Ilian Yotov

AllThingsForex

Aug. 1, 2008 (Allthingsforex.com) – Interest rates will be the main theme of the week ahead bringing the Fed’s interest rate decision, along with three more interest rate announcements from the Reserve Bank of Australia, Bank of England and the European Central Bank.

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, Aug. 3 will start the trading session with New Zealand’s Labor Cost Index of inflation in worker’s compensation and wages, at 6:45 pm, ET, followed by the Australian Services PMI- Purchasing Managers Index of the level of activity by purchasing managers in the services sector of the economy, at 7:30 pm, ET.

More news from “down under” will bring another significant economic release- the Australian House Price Index, a leading indicator of the Australian housing market’s conditions, measuring price changes in residential properties, at 9:30 pm, ET.

Monday, Aug. 4 will begin with the Swiss PMI- Purchasing Managers Index of the level of activity by purchasing managers in all sectors of the economy, at 3:30 am, ET, and the Euro-zone’s Investor Confidence in the economy, at 4:30 am, ET.

More news from the Euro-zone will bring the first spotlight event of the week- the Euro-zone PPI- Producer Price Index, the main measure of inflation experienced by manufacturers, at 5:00 am, ET.  

The U.S. economic data will begin with the U.S. Personal Income and Outlays, an important gauge of consumers’ income and spending, at 8:30 am, ET, followed by the U.S. Factory Orders, a measure of new orders for durable and nondurable goods, at 10:00 am, ET.

The day will end with the New Zealand’s Commodity Price Index of inflation in commodities, at 11:00 pm, ET.

Tuesday, Aug. 5 will start with one of the major spotlight events of the week- the Reserve Bank of Australia's Interest Rate Announcement, at 12:30 am, ET, followed by the Euro-zone Services PMI- Purchasing Managers' Index of the level of activity by purchasing managers in the services sector, at 4:00 am, ET.

News from the U.K. will bring a spotlight event- the U.K. Industrial Production and Manufacturing Output, measures the physical output of the nation's factories, mines and utilities, at 4:30 am, ET, along with the U.K. Services PMI- Purchasing Managers' Index, also at 4:30 am, ET.

Another spotlight event will follow with the release of the Euro-zone Retail Sales, the main measure of consumer spending, scheduled at 5:00 am, ET.

The U.S. economic data will also deliver a 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. If the Institute for Supply Management Index shows a reading below 50, that would indicate economic contraction.

Later that afternoon, the main spotlight event of the week- the FOMC- Federal Open Market Committee Interest Rate Decision, will be announced at 2:15 pm, ET.

The day will conclude with a spotlight event- the preliminary estimate of the U.K. GDP- Gross Domestic Product, the main measure of economic activity and growth, at 7:00 pm, ET, along with the closely watched U.K. Nationwide Consumer Confidence in economic conditions, also at 7:00 pm, ET.

The Australian Construction PMI- Purchasing Managers' Index of the level of activity by purchasing managers in the construction sector, at 7:30 pm, ET, and the Australian Home Loan Approvals, at 9:30 pm, ET, will wrap up the busy day.

Wednesday, Aug. 6 will begin early with the Japanese Leading Indicators of economic activity, at 1:00 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, and the German Factory Orders, at 6:00 am, ET.

News from Canada will bring the Canadian Ivey PMI- Purchasing Managers' Index of the level of activity by purchasing managers from all sectors of the economy, at 10:00 am, ET.

The only notable U.S. economic data that morning will be the EIA- Energy Information Administration Weekly Oil Inventories, at 10:30 am, ET.

Later that afternoon, a significant economic report will hit the newswires with the release of New Zealand’s Unemployment Rate and Employment Change, at 6:45 pm, ET, followed by the Japanese Machinery Orders, at 7:50 pm, ET.
The day will end with a spotlight event- the Australian Employment Situation Report and Unemployment Rate, measuring the unemployment rate and the number of paid employees working part and full-time, scheduled at 9:30 pm, ET.

Thursday, Aug. 7 will start with the German Trade Balance of the difference between imported and exported goods and services, at 2:00 am, ET, and the German Industrial Production, measuring the physical output of the factories, mines and utilities in the Euro-zone’s largest economy, 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 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 closely watched for any hints of future changes in ECB’s monetary policy.

More U.S. data will bring the U.S. Pending Home Sales Index, at 10:00 am, ET, as well as the EIA- Energy Information Administration Weekly Natural Gas Inventories, at 10:30 am, ET.

Friday, Aug. 9 will begin with the Japanese Economy Watchers Index of economic conditions in the services sector, at 1:00 am, ET, and the Swiss Unemployment Rate, at 1:45 am, ET.

News from Canada will bring an important release- the Canadian Employment Report, measuring the unemployment rate and the number of paid employees working part and full-time, at 7:00 am, ET. 

The U.S. economic data will begin with the U.S. Productivity and Labor Costs Index, measuring the growth of labor efficiency and the level of inflation in worker’s compensation and wages, at 8:30 am, ET.

The busy trading week will end with the U.S. Wholesale Trade and Inventories, measuring the dollar value of sales made and inventories held by merchant wholesalers, at 10:00 am, ET.

Published on  Fri, Aug 1 2008, 00:08 GMT