• Asian session: The Dollar Index rose

Market news

5 September 2013

Asian session: The Dollar Index rose

00:00 G20 G20 Meetings

00:00 U.S. FOMC Member Narayana Kocherlakota

01:30 Australia Trade Balance July 0.60 0.11 -0.77

03:00 Japan BoJ Interest Rate Decision 0.10% 0.10% 0.10%

03:00 Japan Bank of Japan Monetary Base Target 270 270 270

03:00 Japan BoJ Monetary Policy Statement


The Dollar Index rose before private U.S. reports projected to show employment increased and the service industry expanded, adding to the case for the Fed to reduce debt purchases at a policy meeting on Sept. 17-18. The ADP Research Institute will probably say today U.S. companies added 182,000 jobs last month, according to the median economist estimate compiled by Bloomberg. That would follow a 200,000 increase in July, the most since December.

The Labor Department may say tomorrow U.S. payrolls rose by 180,000 in August while the jobless rate held at 7.4 percent, the lowest since December 2008, a separate poll showed.

The Institute for Supply Management’s gauge of non-manufacturing industries was probably at 55 in August from 56 the previous month, another survey showed before the figures today. Readings above 50 signify expansion.

The yen strengthened against 13 of its 16 major counterparts after the Bank of Japan raised its assessment of the nation’s economy as it left its easing program unchanged.

The Bank of England and the European Central Bank will also announce interest-rate decisions today. U.K. central bank Governor Mark Carney introduced forward guidance on the path of interest rates last month, saying the Monetary Policy Committee won’t consider raising its key rate until unemployment falls to 7 percent, while MPC member Martin Weale voted against it.


EUR / USD: during the Asian session the pair fell below $ 1.3170

GBP / USD: during the Asian session, the pair fell to $ 1.5600

USD / JPY: during the Asian session the pair rose to Y99.95


The data calendar is set to kick off at 0530GMT, with the release of the French second quarter ILO unemployment data. Analysts are looking for a number of 10.6%, up from 10.4% in Q1. At 0700GMT, Eurogroup President Jeroen Dijsselbloem will speak at the European Parliament's Committee on Economic and Monetary Affairs, in Belgium. At 1000GMT, the German July manufacturing orders data will be released. The latest ECB policy decision is expected at 1145GMT, to be followed by President Mario Draghi's press conference at 1230GMT. As well as the policy decision, we will get the release of key "Staff Forecasts" - the figures on growth and inflation from the Banks' economic experts. Given the recent slowdown in headline consumer prices, not to mention the recent exit from the Eurozone's longest recession, investors will be keen to hear what both President Mario Draghi has to say about the Bank's new forward guidance policy as well as the Bank's strategy for dealing with the market implications of the US Federal Reserve's anticipated tapering.

There is another full calendar on both sides of the Atlantic Thursday, with the policy decisions from both the ECB and the BOE set to dominate. There is only limited UK data, with the release of the August SMMT Car Registrations data at 0800GMT. The first central bank decision comes at 1100GMT, when the Bank of England releases the outcome of the September MPC meeting. The meet is the third under the stewardship of Mark Carney. However, analysts expect no change in either Bank Rate of the stg375 billion quantitative easing program, despite the solid upturn in recent economic data.


Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.