The pound continued its rise against the dollar to reach the highest level in seven weeks as the improvement in the sentiment damped demand on the dollar as a favorite refuge. The pair was affected by the optimism that prevailed in markets after the debt deal reached by European leaders during their meeting in Brussels and after upbeat U.S. data.
European leaders agreed to make private sector bondholders bare 50% of losses of Greek debt to cut it by 100 billion euros, while leveraging the firepower of the EFSF to 1 trillion euros from the current 440 billion euros.
On the other hand, data from the U.S. releases last week showed progress; especially growth data which showed the U.S. economy grew 2.5%, the fastest pace in a year, from the second quarter’s expansion of 1.3%.
This week, the main highlight will be on the infamous jobs report from the US as it will give an update regarding the status of the labor sector, after September’s report had shown better-than-expected reading. Yet, before the release of the jobs report eyes will be growth figures from the United Kingdom.
For this week, the release of the data will be as follows:
Monday October 31:
As of 08:30 GMT,UK mortgage approvals will retreat to 50.5 thousands in Sep. from 52.4 thousands in Aug., according to median estimates, where the U.S. will release Chicago Purchasing Manager at 13:45 GMT which is predicted to retreat to 59.0 in October form 60.4 a month earlier.
Tuesday November 1:
The British economy will release important data starting with nationwide house prices for October, yet more focus will be at U.K. PMI manufacturing for Oct., due at 09:30 GMT, which is expected to show an ease in expansion to 50.0 from the 51.1 recorded in September. However, the main highlight of the day will be GDP advanced figures for the third quarter due at 09:30 GMT. The data may show that the U.K. expanded 0.3% in the third quarter compared with the 0.1% expansion in the second quarter, while on the annual basis the reading will record an expansion of 0.3 from the prior 0.6%.
In theU.S., the main focus will be on ISM manufacturing for Oct., as of 14:00 GMT, which is predicted to show a widening expansion to 52.3 from 51.6 in September.
Wednesday November 2:
As of 09:30 GMT, the U.K. will release PMI construction for the month of October, where the U.S will release important data. As of 11:00 GMT, MBA mortgage approvals for Oct. 28 will be available. At 12:15 GMT, the U.S economy is to release ADP employment change where it is expected to show an increase to 101,000 in Oct. from the previous 91,000. Thereafter, specifically at 16:30 GMT, eyes will be on FOMC rate decision which is expected to show no change as the Fed will probably leave borrowing cost at its low level of 0.25%.
Thursday November 3:
Services gauge for the U.K. will show a drop to 52.0 in October from the prior 52.9, as of 09:30 GMT.
On the other hand, the U.S. economy will release initial jobless claims for the week ended Oct. 28 and continuing claims for the week ended Oct. 21 will be available at 12:30 GMT, followed by ISM non-manufacturing for Oct., as of 14:00 GMT, which is predicted to show widening expansion to 54.0 from the prior 53.0.
Friday November 4:
Amid the absence of data from the U.K., the main focus of the week which is the awaited non-farm payrolls report from theUnited Stateswill be due at 12:30 GMT. Expectations refer that change in non farm payrolls will retreat to 100,000 in October, lower than the previous 103,000 while unemployment will stagnate at 9.1%.
See what are the upcoming financial event on the FX Empire Economic Calendar now!
