Forex - Weekly Outlook: Sept. 6 - Sept. 10

Forex Pros – The week beginning September 6 follows a week which saw most of the other major currencies rally against the U.S. dollar on Friday, as fears over the U.S. economic recovery eased after better-than-expected U.S. employment data.

The dollar's losses came after official government data showed that U.S. non-farm payrolls fell less-than-expected in August, reducing fears over the rate of the U.S. economic recovery.

Friday’s report showed that while U.S. nonfarm payroll employment declined by a seasonally adjusted 54,000 in August, private-sector payroll employment continued to trend up modestly adding 67,000 jobs in August.

U.S. President Barack Obama called the unemployment figures "positive news", but added, “It’s not nearly good enough.”

Following the data, the euro advanced to a 2-week high, while Australia’s dollar rose to close the week at a 3-week high against its U.S. counterpart.

Elsewhere, New Zealand’s dollar soared to a 3-week high, while the Canadian dollar climbed to a 2-week high against the greenback by close of trade on Friday.

In the week ahead, markets will be looking towards Thursday's weekly report on U.S. initial jobless claims. Attention will also focus on data on the country’s trade balance.

Elsewhere, both the Bank of Japan and the Reserve Bank of Australia are to announce their benchmark interest rate on Tuesday. The BoJ is expected to hold a press conference following the announcement.

Meanwhile, the Bank of Canada is also due to announce its benchmark interest rate on Wednesday, while the Bank of England is expected to do so on Thursday.

Ahead of the coming week, Forex Pros has compiled a list of these and other significant events likely to affect the markets. 

Monday, September 6

The euro zone will begin the week by producing data on investor confidence, while Britain is to release industry data on retail sales.

Australia is to produce data on job advertisement numbers, an important local indicator of economic health, while the Melbourne Institute is to publish information on its inflation index. The country is also set to release data on activity in its construction sector.

Meanwhile, markets in the U.S. and Canada will be closed for a bank holiday.

Tuesday, September 7

The Bank of Japan is to announce its benchmark interest rate at a press conference, which will be closely watched for clues to the future direction of monetary policy.

The country is also set to produce a string of data on core machinery orders and bank lending, as well as official data on the country’s current account and a report on an index of leading economic indicators.

In the euro zone, Germany is set to produce data on factory orders, a leading indicator of production. Meanwhile Switzerland is to release official data on its unemployment rate.

Elsewhere, the Reserve Bank of Australia will announce its benchmark interest rate. The announcement will be followed by a closely watched press conference, which will be scrutinized for any clues to the future direction of monetary policy.

New Zealand is expected to produce data on activity in its manufacturing sector.

Wednesday, September 8

In the U.S., the Federal Reserve is to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate. The U.S. is also set to produce key data on consumer credit.

In the euro zone, both Germany and France are expected to produce key data on their trade balance. Germany is also due to release important information on industrial product, while the French government is slated to publish its budget balance.

Britain is to release key data on production in its manufacturing and industrial sectors, while the National Institute of Economic and Social Research is expected to publish its gross domestic product estimate for the second quarter.

Elsewhere, the Bank of Canada is due to announce its benchmark interest rate, while the country is also expected to produce data on an important index of purchasing managers as well as data on building permits, a leading indicator of health in the housing sector.

Meanwhile, the Bank of Japan is to publish its monthly report, which is a summary of the data the bank examines before setting the benchmark interest rate.

Thursday, September 9

The U.S. is to release key weekly data on initial jobless claims, as well as official data on the country’s trade balance.

The European Central Bank will publish its monthly bulletin, which gives detailed analysis of current and future economic conditions from the bank's point of view.

Meanwhile, the Bank of England is to announce its benchmark interest rate, as well as official data on the country’s trade balance. 

Elsewhere, Australia is to publish a report on employment change and the country's unemployment rate.

Canada is expected to produce key data on housing starts as well as information on the country’s trade balance.

Later in the day, Japan is expected to release its final gross domestic product for the second quarter, while the Bank of Japan is to publish the minutes of its monetary policy committee meeting.

Friday, September 10

The U.S. is slated to end the week by producing key data on wholesale inventories, a signal of future business spending.

In the euro zone, France and Italy are both due to publish data on industrial production, a leading indicator of economic health.

Elsewhere, Britain is to release key data on its producer price index, a leading indicator of consumer inflation.

Meanwhile, Canada is to publish a report on employment change and the country's unemployment rate.