Dec. 31, 2010 (Allthingsforex.com) – The first trading week of 2011 will kick-start the New Year with important economic data from the world’s largest economies, culminating with the U.S. Non-Farm Payrolls and Employment Situation report which will keep traders on the lookout for signs of consistent improvement in the U.S. labor market.
In preparation for the new trading week, here is the outlook for the Top 10 spotlight economic events that will move the markets around the globe.
1. USD- U.S. ISM Manufacturing Index, a leading indicator of industrial activity, where a reading above or below 50 is the dividing line between economic expansion and contraction, Mon., Jan. 3, 10:00 am, ET.
The U.S. manufacturing sector is expected to register another month of expansion with an ISM index reading of 57.1 in December, up from 56.6 in November.
2. EUR- Euro-zone HICP- Harmonized Index of Consumer Prices, the main measure of inflation, Tues., Jan. 4, 5:00 am, ET.
Inflationary pressures in the Euro-zone are forecast to increase by 2.0% y/y in January, compared with 1.9% y/y in the previous month.
3. USD- U.S. FOMC- Federal Open Market Committee Meeting Minutes, a comprehensive report of the Fed’s meeting that could provide an outlook on the economy, interest rates and future monetary policy, Tues., Jan. 4, 2:00 pm, ET.
The minutes are expected to offer more details on the factors behind the Fed’s QE2 decision, confirming the Fed’s ultra-accommodative monetary policy stance and the committee’s cautious outlook on the economy.