Economic Events: (GMT)
13:30 USD Nonfarm Productivity (QoQ) 1.0% 2.3%
Nonfarm Productivity measures the annualized change in labor efficiency when producing goods and services, excluding the farming industry. Productivity and labor-related inflation are directly linked-a drop in a worker’s productivity is equivalent to a rise in their wage.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
13:30 USD Initial Jobless Claims 373K 377K
13:30 USD Unit Labor Costs (QoQ) 0.9% -2.5%
13:30 USD Continuing Jobless Claims 3565K 3554K
Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance
USD/CAD Fundamental Analysis Feb. 2, 2012, Forecast
Analysis and Recommendations:
The USD/CAD is currently trading at 0.9977 down from the high for the day of 1.0050 The greenback is headed close to a three-month low against the Canadian dollar, as renewed optimism over Europe’s progress on handling its debt crisis boosted risk appetite and overshadowed soft U.S. employment data.
The RBC Canadian Manufacturing Purchasing Managers’ Index came in at 54.02 in December, above the level of 50 that separates expansion from contraction, thought it still remained weaker than the series average. The index, launched in 2011 by Royal Bank of Canada and produced by research firm Markit, rose from 53.31 in November.
Employment in the U.S. nonfarm private business sector increased by 170,000 from December to January on a seasonally adjusted basis. The estimated advance in employment from November to December was revised down to 292,000 from the initially reported 325,000. Employment in the private, service-providing sector rose 152,000 in January.
The US ISM manufacturing index was slightly lower than expected, rising to 54.1 from 53.1. The details were stronger with the new orders index rising again to the highest level since April last year and the export orders index rising for the third month in a row
Scheduled Sovereign Bond Sales
Feb 01 15:30 Sweden Details nominal bond auction on Feb 08
Feb 01 16:00 US
Announces details of 3Y Notes on Feb 07, 10Y Notes on Feb
08 & 30Y Bonds on Feb 09
Feb 02 09:50 France OAT Auction
Feb 02 10.30 UK Auctions 0.125% 2029
Originally posted here
