Nov. 26, 2010 (Allthingsforex.com) – In the week ahead all eyes will be focused on the U.S. Non-Farm Payrolls and Employment Situation report as traders look for signs of consistent improvement in the U.S. labor market.
In preparation for the new trading week, here is a list of the Top 10 spotlight economic events that will move the markets around the globe.
1. EUR- Euro-zone HICP- Harmonized Index of Consumer Prices, the main measure of inflation, and Euro-zone Unemployment Rate, Tues., Nov. 30, 5:00 am, ET.
Inflationary pressures in the Euro-zone are forecast to remain at 1.9% y/y in November- same as the 1.9% y/y reading in the previous month. The unemployment rate in the Euro-zone is also expected to stay unchanged at 10.1%.
2. CAD- Canada GDP- Gross Domestic Product, the main measure of economic activity and growth, Tues., Nov. 30, 8:30 am, ET.
The Canadian economy is expected to grow faster in the third quarter compared with the 0.5% growth in Q2 and 1.4% in the first quarter of 2010.
3. AUD- Australia GDP- Gross Domestic Product, the main measure of economic activity and growth, Tues., Nov. 30, 7:30 pm, ET.
On a quarter-over-quarter basis, the Australian economy is forecast to experience slower growth by 0.5% in the third quarter from 1.2% q/q in Q2 2010.
4. USD- U.S. ADP-Automatic Data Processing Employment Report, a measure of jobs lost or added to the private sector of the economy, also serving as a preliminary estimate for the outcome of the monthly non-farm payrolls, Wed., Dec. 1, 8:15 am, ET.
Payrolls in the private sector of the U.S. economy are forecast to increase by up to 70,000 in November, compared with 43,000 in the previous month. Strong private sector jobs creation would be a welcomed sign of consistent improvement in labor market conditions.
5. 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, Wed., Dec. 1, 10:00 am, ET.
The U.S. manufacturing sector could see another month of expansion with an ISM index reading of 56.3- a slight pullback from 56.9 in October.
6. EUR- Euro-zone GDP- Gross Domestic Product, the main measure of economic activity and growth, Thurs., Dec. 2, 5:00 am, ET.
The revised estimate of the Euro-zone GDP is forecast to confirm the expectations for slower economic growth by 0.4% in the third quarter, compared with 1.0% q/q in Q2 2010.
7. EUR- European Central Bank Interest Rate Announcement, Thurs., Dec. 2, 7:45 am, ET.
In the midst of yet another EU debt crisis, the European Central Bank would be likely to keep the benchmark interest rate unchanged. It would be interesting to see if the fears of contagion following the Irish bailout could make it more difficult for policy makers to allow some of the accommodative monetary policy programs to expire and whether the ECB would be forced to keep the liquidity flowing into 2011.
8. CAD- Canada Employment Situation and Unemployment Rate, the main gauge of employment trends and labor market conditions, Fri., Dec. 3, 7:00 am, ET.
The Canadian economy could add up to 17,900 jobs in November, compared with only 3,000 jobs in the previous month, as the unemployment rate is expected to stay at 7.9%.
9. USD- U.S. Non-Farm Payrolls and Employment Situation Report, one of the most important indicators of economic health, measuring the number of new jobs created or lost in the world’s largest economy, Fri., Dec. 3, 8:30 am, ET.
There is a potential for an optimistic U.S. Non-Farm Payrolls report with consensus forecasts pointing to a second consecutive month of jobs creation as the U.S. economy adds up to 135 K jobs in November from 151 K in the previous month, while the unemployment rate remains unchanged at 9.6%.
10. USD- U.S. ISM Non-Manufacturing Index, a leading indicator of economic conditions in the services industries: agriculture, mining, construction, transportation, communications, wholesale trade and retail trade, Fri., Dec. 3, 10:00 am, ET.
The ISM Non-Manufacturing Index is expected to show activity in the services industries registering a small increase to 54.4 in November compared with a previous reading of 54.3.