Forex Technical and Fundamental Analysis for the Week of August 29, 2011

EUR/USD Technical Analysis for the Week of August 29, 2011

EUR/USDhad a bullish week this previous week, and it looks like the 1.45 level will be the site of another tug-o-war between the bulls and bears this coming week. The previous three candles have seen two supportive hammers form, and then a resistive shooting star last week. The breaking of the shooting star’s top would be a very bullish sign as it not only breaks the previous week’s resistance, but also gets us over the 1.45 resistance area. If this happens, we would have to be buyers. In order to sell this pair, we need to see a print below the 1.40 level.

EUR/USD Weekly Fundamental Analysis for the Week of August 29, 2011

The EUR/USD ended another volatile week and choppy trading prevailed with the pair barely changed with the end of the week as the mixed trading was seen with the prevailing uncertainty. This week the focus will again be on U.S. growth and the euro area debt crisis. The week will start with focus on Trichet, Juncker, and Rehn that are expected to be at a meeting at the EU Parliament to discuss the debt crisis and that might have the key to set the tone. The data this week is mainly from the United States with the follow of heavy data after the downside revision to the second quarter GDP on Friday where eyes will be on the infamous jobs report that will determine the market sentiment this week. Also, investors will keep an eye on Germany’s data and the flash CPI estimate for the euro area, where an unexpected declined in inflation will revive bets that Trichet will be forced to cut rates again as growth falters. It will be another hectic week for the EUR/USD and the only support for the pair to continue higher is support from central bankers to buoy the sentiment and pledge more support, as other than that, the fear will remain evident and risk aversion will again pressure the EUR/USD south. Other news from the euro area and the U.S. economy to affect the pair this week: Monday August 29: The week will start with a light load from the euro area with the flash CPI estimate from Germany for August, where inflation probably remained flat in EU-harmonized terms following 0.5% rise and on the year to have eased to 2.5% from 2.6%. The United States will start the week with the personal income report for July at 12:30 where income is expected with a rise to 0.3% following 0.1% and spending to rebound with 0.4% following 0.2% drop. The Core PCE is expected to rise by 0.2% following 0.1% and on the year to 1.4% following 1.3%. At 14:00 GMT the US will release the pending home sales for July which are expected with 0.3% drop following the 2.4% rally the previous month. Tuesday August 30: The confidence figures for August are due from the euro area at 09:00 GMT. The business climate indicator is expected to ease to 0.18 from 0.45; economic confidence is o drop to 101.0 from 103.2, industrial confidence to drop to -1.4 from 1.1 and services confidence to fall to 6.3 from 7.9. The United States will start at 14:00 GMT with the Consumer Confidence index for August which is expected to drop to 52.0 from 59.5. Eyes will be on the FOMC minutes for the last meeting at 18:00 GMT when the fed pledged to keep rates at record low for the coming two years at least where investors are looking for signals for the next move with the worsening outlook. Wednesday August 31:                                                         Germany will start with the July retail sales index which is expected with a strong 1.5% slump following 6.3% rally and expected down 1.9% on the year following -1.0%. Meanwhile, the German jobs report for August is due at 07:55 GMT and the economy is expected to have added 10 thousand jobs following 11 thousand in July and unemployment to hold steady at 7.0%. The euro area will start with the CPI flash estimate for August at 09:00 GMT which is expected to hold at 2.5%. At the same time, we await the unemployment rate for July which is also expected to hold steady at 9.9%. At 12:15 GMT the United States will start with the signals for Friday’s jobs report with the ADP Employment Change for August which is expected to show 103 thousand private added jobs following 114,000. Data will continue at 13:45 GMT with the Chicago PMI for August which is also expected to slow to 53.8 from 58.8 followed with Factory Orders at 14:00 GMT which is expected with 1.4% rise in July following 0.8% drop. Thursday August 01: The star will be from Germany at 06:00 GMT with the final revision for the second quarter GDP which is expected unrevised at 0.1% on the quarter with the expected drop in exports, consumption, government spending, and capital investment. Also, at 07:55 GMT Germany will report the final PMI Manufacturing for August which is also expected unrevised at 52.0. The final revision for the August PMI Manufacturing is due at 08:00 GMT which is expected unrevised with 49.7 contraction. From the United States the data will start at 12:30 GMT with the weekly jobless claims after they rose 417 thousand last week. The ISM Manufacturing is due at 14:00 GMT for August and expected to contract with a drop below 50 at 48.5 from 50.9. Friday August 02: The euro area will end the week on Friday with the Producer Price Index for July at 09:00 GMT which is expected with 0.5% rise on the month to 6.2% on the year following 5.9%. The focus on Friday will surely be on the infamous jobs report from the U.S. at 12:30 GMT where the change in nonfarm payrolls is expected at 95 thousand following 117 thousand added jobs in July. Private payrolls are expected to slow to 128 thousand from 154 thousand and manufacturing payrolls to remain flat following 24 thousand added jobs. Unemployment is expected to hold steady at 9.1%.

AUD/USD Technical Analysis for the Week of August 29, 2011

The AUD/USD pairrose this past week, and closed above the all-important 1.05 level. However, the 1.06 seems to be the top of this resistance “zone.” Because of this, we are waiting for a daily close above that level in order to go long this pair. If we get that signal – we expect to see a move to 1.10 or above. A break below 1.0000 would be necessary for us to sell this pair as the fundamentals in the gold markets suggest that there might be more Aussie buying as well.

AUD/USD Weekly Fundamental Analysis for the Week of August 29, 2011

The Australian dollar rose slightly against the dollar during last week after the heavy decline seen as global economic growth falters due to the crisis that threatens the recovery cycle, dampening demand for high yielding investments. The Australian currency held a three-day advance against the American counterpart on prospects Asian stocks will extend a global rally in shares, boosting demand for higher-yielding currencies. Still, the Australian economy faces many obstacles at the period that will hurt the economic recovery, where the weak Australia job market forces the Reserve Bank of Australia to cut the interest rates during the next months, dampening demand for Aussie. The European debt crisis increased the concern about the global economic recovery, which supported Asian stock market to decline. On the other hand, the Governor of the Reserve Bank of Australia, Mr. Stevens won’t cut interest rates as inflation is still hurting the economic recovery, fueling demand for Aussie. Currently, the Australian economy moves into a narrow channel as the nation is still suffering from first-half natural disasters, along with the European debt crisis and the sluggish US economy that had a negative impact on the global economy. Major highlights for this week that will affect the AUD/USD pair’s trading: Monday August 29: Australia will release the new home sales index for July at 01:00 GMT, which has a medium impact on the market movements, while the previous reading dropped by 8.7% in June. TheU.S.economy will release the personal income for July at 12:30 GMT, where the previous reading was 0.1% and it is expected to come at 0.3%. On the other hand, the personal spending is expected to show a rise of 0.5% from the previous fall of 0.2%. The Core PCE is expected to rise by 0.2% following 0.1%, while the annual reading is expected to come at 1.4% from the previous of 1.3%. At 14:00 GMT, the U.S. economy will release the pending home sales for July, where the previous reading was 2.4% and expected to come at 0.0%, while the annual pending home sales had a previous reading of 17.3%. Tuesday August 30: The U.S. economy will release the consumer confidence for August at 14:00 GMT, where it had a previous reading of 59.5 and expected to drop to 52.5. At 18:00 GMT the Federal Reserve Bank will release the Minutes from August 9 FOMC Meeting, where the details of the meeting will have the investors’ attention, trying to figure out the next step for the Fed. Wednesday August 31: At 01:30 GMT, Australian private sector credit is expected to incline during July after the decline by 0.1% in June. The U.S. economy will release the ADP employment change for August at 12:15 GMT, where it’s expected to come at 103 thousands from the previous 114 thousands. The Chicago Purchasing Manager Index for August will be released at 13:45 GMT, where it had a previous reading of 58.8 and expected at 53.5. The factory orders index for July is expected to show a rise of 1.0% from the previous fall of 0.8%. Thursday September 01: At 23:30 GMT (Wednesday) Australian economy will report its AiG performance of manufacturing index for August after reaching 43.4 in July. Moreover, ANZ commodity price (AUG) is due at 01:00 GMT after it declined to -0.1% in July. At 12:30 GMT the U.S. economy will issue the final reading of Non-Farm Productivity for the second quarter, where the previous reading showed a drop of 0.3% and it is expected to come at –0.5%. The Unit labour Coast for the second quarter is expected to come at 2.3% from the previous 2.2%. At 12:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 417 thousand last week. The Construction Spending for July will be up at 14:00 GMT, where it had a previous reading of 0.2% and expected to come at 0.1%. On the other hand, the ISM Manufacturing for August will be up at 14:00 GMT, where it had a previous reading of 50.9 and expected at 48.5. Friday September 02: The Australian trade balance for July is due at 01:30 GMT to see how trade progressed after the recorded surplus of A$2052 million in June. The United States of America will release a number of economic data on Friday, starting with the non-farm payrolls at 12:30 GMT, which is expected to show that the U.S. economy added 90 thousand jobs during the month of August compared with the previous 117 thousand jobs. Unemployment is expected to hold steady at 9.1%, while the yearly average hourly earnings index is expected to advance by 2.3% the same as the previous reading.

EUR/CHF Technical Analysis for the Week of August 29, 2011

EUR/CHFhad a bullish week, and even managed to break above the 1.15 line – a massively resistive level for this pair. Because of this, we feel that the momentum has certainly shifted to the upside in the pair, and that pullbacks may be bought at this point. We need to see 1.15 hold as support, but as long as it does – it looks like this pair goes much higher. Perhaps the Swiss National Bank has finally gotten its wish? Of course, headline risks in the EU could send this pair back down. Note that a long is counter trend, and those types of trades are always the most difficult.

EUR/CHF Weekly Fundamental Analysis for the Week of August 29, 2011

The EUR/CHF ended the week after attempting to consolidate the gains since the start of the week amid tight ranged and choppy trading. Investors are still worried over the outlook for the global recovery and the debt crisis in the euro area which are haven demand forces on Swissy and only countered by the fear of further intervention from the SNB. This week, the volume will start to return and normalize in European markets with the end of the summer August trading and gradually picks up the pace into September, while the focus with the beginning of the week on the EU will likely define the tone. Eyes will be on the Swiss second quarter GDP and how much the economy was affected by the franc’s rally. Strong slowdown in activity might signal to markets the intensity of the situation and increase bets for further SNB action. From the euro area the focus will be on the flash CPI estimate where a drop of which will increase bets that the ECB will move to cut rates again to support waning growth. Heavy data from the United States will also play a major part in defining the general market sentiment especially with the jobs report due by the end of the week. We can expect the EUR/CHF to continue to gradually move higher as far as the unwinding of jitters continue and the odds for SNB action keeps weakening the franc, as otherwise a strong reversal in the sentiment to pessimism will drive the pair strongly lower. Other news from the euro area and the Swiss economy to affect the pair this week: Monday August 29: No major data is queued for release on Monday as the week starts with the focus on the sentiment and on the debt crisis. Eyes will surely be on the meeting scheduled on Monday at the EU Parliament to discuss the debt crisis with Rehn, Juncker and Trichet expected to attend the meeting. Tuesday August 30: Switzerland will start the day at 05:45 GMT with the second quarter GDP as all eyes will be on the figures to see how much the Swiss economy was impacted by the strengthening franc after the economy expanded 0.3% in the first quarter and 2.4% on the year. At 07:15 GMT the Swiss annual retail sales index for July is due after the reported rise of 7.4% in June. Also at 07:30 GMT the PMI Manufacturing for August is due where the index was reported at 53.5 in July. The confidence figures for August are due from the euro area at 09:00 GMT. The business climate indicator is expected to ease to 0.18 from 0.45; economic confidence is o drop to 101.0 from 103.2, industrial confidence to drop to -1.4 from 1.1 and services confidence to fall to 6.3 from 7.9. Wednesday August 31:                                                         The euro area will start with the CPI flash estimate for August at 09:00 GMT which is expected to hold at 2.5%. At the same time, we await the unemployment rate for July which is also expected to hold steady at 9.9%. Thursday August 01: The final revision for the August PMI Manufacturing is due at 08:00 GMT which is expected unrevised with 49.7 contraction. Friday August 02: The euro area will end the week on Friday with the Producer Price Index for July at 09:00 GMT which is expected with 0.5% rise on the month to 6.2% on the year following 5.9%.

NZD/USD Technical Analysis for the Week of August 29, 2011

The NZD/USD pairhad a bullish week as traders took on more risk, especially on Friday. Because of this, the pair continues to trade within the boundaries of 0.8000 and 0.8500. These areas need to be broken to consider any longer-term trade, and as such – that is exactly what we are doing. A daily close below 0.8000 sends us lower, but a daily close above the 0.8500 level is very bullish indeed.

NZD/USD Weekly Fundamental Analysis for the Week of August 29, 2011

The New Zealand dollar, nicknamed Kiwi, soared during last week against its major counterparts, especially versus the dollar after the retail sales in New Zealand rose in the second quarter of this year as domestic spending recovers. New Zealand is witnessing improvement in the labour market during this period which helped consumer income increase, supporting the spending cycle. Moreover, the commodities prices increased, which supported the New Zealand’s currency to gain versus the American dollar, also it increased after data showed consumer confidence rose. New Zealand monetary policy makers will keep borrowing costs at 2.50% at the current stage till more clear signs of recovery appear in the business sector, exports and the labour market. Major highlights for this week that will affect the NZD/USD pair’s trading: Monday August 29: At 22:45 GMT (Sunday), New Zealand will start the week with building permits for July after it dropped by 1.4% in June. TheU.S.economy will release the personal income for July at 12:30 GMT, where the previous reading was 0.1% and it is expected to come at 0.3%. On the other hand, the personal spending is expected to show a rise of 0.5% from the previous fall of 0.2%. The Core PCE is expected to rise by 0.2% following 0.1%, while the annual reading is expected to come at 1.4% from the previous of 1.3%. At 14:00 GMT, the U.S. economy will release the pending home sales for July, where the previous reading was 2.4% and expected to come at 0.0%, while the annual pending home sales had a previous reading of 17.3%. Tuesday August 30: The U.S. economy will release the consumer confidence for August at 14:00 GMT, where it had a previous reading of 59.5 and expected to drop to 52.5. At 18:00 GMT the Federal Reserve Bank will release the Minutes from August 9 FOMC Meeting, where the details of the meeting will have the investors’ attention, trying to figure out the next step for the Fed. Wednesday August 31: New Zealand will release the activity index for August at 01:00 GMT, while the prior reading reached to 43.7 in July, also the business confidence that inclined to 47.6 during July. The U.S. economy will release the ADP employment change for August at 12:15 GMT, where it’s expected to come at 103 thousands from the previous 114 thousands. The Chicago Purchasing Manager Index for August will be released at 13:45 GMT, where it had a previous reading of 58.8 and expected at 53.5. The factory orders index for July is expected to show a rise of 1.0% from the previous fall of 0.8%. Thursday September 01: At 22:45 GMT (Wednesday) New Zealand is to issue its terms of trade index (QoQ)(2Q) that has a medium impact on the market, where the previous reading inclined by 0.9%. Moreover, ANZ commodity price (AUG) is due at 01:00 GMT after it declined to -0.1% in July. At 12:30 GMT the U.S. economy will issue the final reading of Non-Farm Productivity for the second quarter, where the previous reading showed a drop of 0.3% and it is expected to come at –0.5%. The Unit labour Coast for the second quarter is expected to come at 2.3% from the previous 2.2%. At 12:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 417 thousand last week. The Construction Spending for July will be up at 14:00 GMT, where it had a previous reading of 0.2% and expected to come at 0.1%. On the other hand, the ISM Manufacturing for August will be up at 14:00 GMT, where it had a previous reading of 50.9 and expected at 48.5. Friday September 02: The United States of America will release a number of economic data on Friday, starting with the non-farm payrolls at 12:30 GMT, which is expected to show that the U.S. economy added 90 thousand jobs during the month of August compared with the previous 117 thousand jobs. Unemployment is expected to hold steady at 9.1%, while the yearly average hourly earnings index is expected to advance by 2.3% the same as the previous reading.

USD/JPY Technical Analysis for the Week of August 29, 2011

The USD/JPY pair rose, and then fell this previous week as traders continue to test the resolve of the Bank of Japan. The BoJ has intervened, and continues to threaten doing it again. The pair looks technically weak, but until the BoJ steps aside, something it won’t ever completely do, shorting this pair is a dangerous proposition. A nice hammer would help the bullish case, but it is becoming obvious that the market pressure is simply too great for this pair to jump without central bank intervention. Because of this, we are flat of this market, and anticipate being so for a while.

USD/JPY Weekly Fundamental Analysis for the Week of August 29, 2011

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GBP/USD Technical Analysis for the Week of August 29, 2011

GBP/USDhad a very back-and-forth week as traders have both sold and bought this pair. The 1.65 held again, as the pair cannot close above it. Because of this, we feel that this pair might not be a great candidate for a longer-term trade. The 1.60 would have to be broken to feel good about placing a short, and the 1.66 level has to be broken to the upside in order to buy. In the mean time, there are better pairs to trade.

GBP/USD Weekly Fundamental Analysis for the Week of August 29, 2011

The GBP/USD dropped in the week ended August 26 after showing volatility as the dollar remained under pressure on expected announcement of QE3 while the outlook for theU.K.remained weak with the release of lackluster reports. While the announcement of a third round of stimulus may stimulate the economy, it is estimated to push the dollar down due to expected oversupply in financial markets resulting from the money printing process. For theU.K., consumer confidence slipped by two points to 49 in July from 51 in June, adding to concerns that recovery is losing momentum, whileU.K.annualized GDP for the second quarter remained unrevised, adding to clues the BoE would keep interest rate low to boost the sluggish growth. This week, the main highlight will be on the infamous jobs report from theUSas it will give an update regarding the status of the labour sector, especially after the wave of pessimistic data released recently from the world’s largest economy. Yet, before the release of the jobs report eyes will be on manufacturing data from both economies. The release of the data this week will be as follows: Monday August 29: The week starts with the release of no data from the British economy where the main focus will be on US data. As of 12:30 GMT, personal income and personal spending for July are due with expectations that personal income will retreat to 0.3% while personal spending is predicted to have inclined to 0.4% in July from the prior 0.2% drop. At 14:00 GMT, pending home sales is estimated to show 0.3% drop in July compared with the 2.4% advance recorded in June. Tuesday August 30: As of 08:30 GMT,UK mortgage approvals will rise to 49.0 thousands in July from 48.4 thousands in June, according to median estimates. For theUS, S&P Caseshiller home price will be awaited at 13:00 GMT. On hour later, consumer confidence will be out with predictions to slide to 52.0 from 59.5. Wednesday August 31: At 12:15 GMT, the U.S economy is to release ADP employment change where it is expected to decrease to 103,000 in August from the previous 114,000. At 14:00 GMT, factory orders will show 1.4% rise in July from the prior 0.8% drop, while the British economy lacks fundamentals.      Thursday September 1: The main focus will be on manufacturing data from both economies. At 08:30 GMT, UK PMI manufacturing for August is expected to show further contraction to 48.5 from the 49.1 contraction recorded a month earlier.  On the other hand, the U.S. economy will release initial jobless claims for the week ended August 27 and continuing claims for the week ended August 20 will be available at 12:30 GMT, followed by ISM manufacturing for August, as of 14:00 GMT, which is predicted to show contraction to 48.5 from the prior 59.0 expansion. Friday September 2: In theU.K., investors will approach the release of PMI construction which is forecasted to show an ease in expansion to 52.5 in August from 53.5 in July. However, the main focus of the week will be of with the release of the awaited non-farm payrolls report from the United States, due at 12:30 GMT. Expectations refer that change in non farm payrolls will reach 95,000 in August, lower than the previous 117,000 while unemployment will stagnate at 9.1%.

USD/CAD Technical Analysis for the Week of August 29, 2011

USD/CADhad a bearish week, but still hasn’t broken below the 0.98 resistance area. Because of this, we are tempted to sell this pair, but can’t until we see a daily close below that mark. In the mean time, we have two levels to watch: parity and 0.98. If one of those gets broken, we are going to trade in that direction. Watch the oil markets, and if $90 a barrel in the CL contract gets taken out as resistance, we could see this pair fall, continuing the overall trend.

USD/CAD Weekly Fundamental Analysis for the Week of August 29, 2011

The USD/CAD pair was little changed last week, as investors were concerned over the outlook for global growth amid signs economic growth is slowing down in the United States, where the GDP report showed the U.S. economy expanded below expectations, while Bernanke signaled the Fed has the tools to act to any deterioration in economic activities if needed, however, Bernanke stopped short from announcing any monetary easing measures last week, which sent another wave of pessimism again, which erased all the CAD’s previous gains throughout the week. Rising pessimism in global financial markets should put the CAD under more pressure over the coming period, where investors fear the U.S. economy is heading into a double dip recession, and since the United States is Canada’s largest trading partner, we should expect the Canadian economy to suffer deeply, and that should provide the USD/CAD pair with bullish momentum. Moreover, traders will be eyeing key data from the U.S. labour market this coming week, in addition to GDP figures from Canada, accordingly, we expect more fluctuations to be witnessed during this coming week for the USD/CAD pair. Highlights for this week that will probably affect the USD/CAD pair’s direction are: Monday August 29: The United States will start the week with the personal income report for July at 12:30 where income is expected with a rise to 0.3% following 0.1% and spending to rebound with 0.4% following 0.2% drop. The Core PCE is expected to rise by 0.2% following 0.1% and on the year to 1.4% following 1.3%. At 14:00 GMT the US will release the pending home sales for July which are expected with 0.3% drop following the 2.4% rally the previous month. Tuesday August 30: Canada will release the current account for the second quarter at 12:30 GMT, which is expected to show a widened deficit to CA$13.9 billion from a deficit of CA$8.9 billion. Canada will also release the industrial product prices for July and is expected to drop by 0.2% compared with 0.3% in June, while raw materials prices are expected to drop by 0.1%, compared with -2.2% in June. The United States will start at 14:00 GMT with the Consumer Confidence index for August which is expected to drop to 52.0 from 59.5. Eyes will be on the FOMC minutes for the last meeting at 18:00 GMT when the fed pledged to keep rates at record low for the coming two years at least where investors are looking for signals for the next move with the worsening outlook. Wednesday August 31:                                                         At 12:15 GMT the United States will start with the signals for Friday’s jobs report with the ADP Employment Change for August which is expected to show 103 thousand private added jobs following 114,000. Canada will release the GDP estimate for the second quarter, where Canada’s growth is expected to be flat in Q2 after an expansion of 3.9% in Q1, while the economy is expected to grow by 0.2% in June, compared with the prior contraction of 0.3% back in May. Data will continue at 13:45 GMT with the Chicago PMI for August which is also expected to slow to 53.8 from 58.8 followed with Factory Orders at 14:00 GMT which is expected with 1.4% rise in July following 0.8% drop. Thursday August 01: From the United States the data will start at 12:30 GMT with the weekly jobless claims after they rose 417 thousand last week. The ISM Manufacturing is due at 14:00 GMT for August and expected to contract with a drop below 50 at 48.5 from 50.9. Friday August 02: The focus on Friday will surely be on the infamous jobs report from the U.S. at 12:30 GMT where the change in nonfarm payrolls is expected at 95 thousand following 117 thousand added jobs in July. Private payrolls are expected to slow to 128 thousand from 154 thousand and manufacturing payrolls to remain flat following 24 thousand added jobs. Unemployment is expected to hold steady at 9.1%.

USD/CHF Technical Analysis for the Week of August 29, 2011

The USD/CHF pairfinally broke through the 0.8000 mark this past week, and now looks like it is poised to approach the 0.83 mark. The area is significant because it coincides with the most substantial downtrend line that the chart has printed over the last year or so. If the 0.83 level gives way, this would be a very bullish sign. Because of this, we feel the real battle is at that level. If we get a daily close above that mark, this would signify a possible trend change. Until then, we will observe, but it must be said that the momentum certainly has shifted over the last month or so.

USD/CHF Weekly Fundamental Analysis for the Week of August 29, 2011

The USD/CHF showed a slight rise for the third week as hopes the Fed would announce a third round of stimulus lowered demand on refuges, led by the franc which has been the most attractive due to the stability witnessed in the Swiss economy compared with other major economies. Also, investors are waiting for further monetary interventions from the SNB to curb the franc’s advance which is causing some downside pressure on the franc. In the week ended August 26, the main highlight was the possibility of announcing a third round of stimulus in theU.S.to boost growth which slowed down as seen by the most recent data. Regarding fundamentals, the most important Swiss data showed improvement as trade surplus widened to 2.83 billion francs in July from 1.74 billion francs a month earlier, while U.S. annualized GDP for the second quarter was downwardly revised to 1.0% from 1.3%. This week, the main highlight will be on the infamous jobs report from theUSas it will give an update regarding the status of the labour sector, especially after the wave of pessimistic data released recently from the world’s largest economy. Yet, before the release of the jobs report eyes will be on manufacturing data from both economies. For this week, the release of the data will be as follows: Monday August 29: The week starts with the release of no data from the Swiss economy where the main focus will be on US data. As of 12:30 GMT, personal income and personal spending for July are due with expectations that personal income will retreat to 0.3% while personal spending is predicted to have inclined to 0.4% in July from the prior 0.2% drop. At 14:00 GMT, pending home sales is estimated to show 0.3% drop in July compared with the 2.4% advance recorded in June. Tuesday August 30: The Swiss economy will release UBS consumption indicator for May at 06:00 GMT, yet it is not expected to have effect on the pair’s movement. For theUS, S&P Caseshiller home price will be awaited at 13:00 GMT. On hour later, consumer confidence will be out with predictions to slide to 52.0 from 59.5. Wednesday August 31: At 12:15 GMT, the U.S economy is to release ADP employment change where it is expected to decrease to 103,000 in August from the previous 114,000, while the Swiss economy lacks fundamentals. At 14:00 GMT, factory orders will show 1.4% rise in July from the prior 0.8% drop.     Thursday September 1: The Swiss economy release a wave of important data, led by GDP for the second quarter which will be out at 05:15 GMT, followed by retail sales for the year ended July at 07:15 GMT then PMI manufacturing for August at 07:30 GMT. On the other hand, the U.S. economy will release initial jobless claims for the week ended August 27 and continuing claims for the week ended August 20 will be available at 12:30 GMT, followed by ISM manufacturing for August, as of 14:00 GMT, which is predicted to show contraction to 48.5 from the prior 59.0 expansion. Friday September 2: The main focus of the week will be of with the release of the awaited non-farm payrolls report from the United States, due at 12:30 GMT. Expectations refer that change in non farm payrolls will reach 95,000 in August, lower than the previous 117,000 while unemployment will stagnate at 9.1%.

 

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