Economic data will be crucial this week

As we move into the first week of the new month, the economic data releases that will be announced will be seen as even more important than normal. In the wake of last week’s meeting of the Federal Reserve’s interest rate setting committee, the FOMC, the inference is that economic data is still an incredibly important factor in the Fed’s decision making process. This week is jam packed with forward looking PMI data, and the crucial US Non-farm Payrolls report. There are two payrolls reports before the next Fed meeting and considering the last two releases have been disappointing, the Fed is likely to want to see the data for November and December on an improving trajectory to be more assured that the labor market is improving again. Furthermore, in the wake of the slight miss on the first reading of Q3 GDP and the continued failure of inflation to pick up, it would be looking for signs on improvement in the average hourly earnings too. The report looks into the key economic data you need to be looking out for this week.

The forex markets have been focusing on the moves of key central banks in the past week or so and this is likely to continue this week with two more major central banks set to announce monetary policy. Could we be in for a rate cut from the Reserve Bank of Australia? Also what will Super Thursday hold for the Bank of England? There is technical analysis of two key major pairs, Euro/Dollar and Sterling/Dollar.  What have the equity markets got install for us this week? Could there be a bout of profit-taking just round the corner? There is also a technical analysis of the DAX and FTSE 100. In the commodity markets, there was been a big reaction on gold recently, we look at how this has changed the outlook.