Forex News: USD Fate Rests with ISM
Forex NewsAt 7:00 AM Canada November Net Change in Employment (exp 12.0k, prev 50.5k) Canada November Unemployment Rate (exp 6.2%, prev 6.2%) At 10:00 AM US November ISM Manufacturing Index (exp 52.0, prev 51.2) US October Construction Spending (exp -0.3%, prev -0.3%)
Economic data remains the key point of focus for currency traders with the headline report due out later today at 10:00 AM. The November ISM manufacturing index is forecasted to edge up slightly to 52.0, compared with 51.2 from a month earlier. However, if yesterday’s reaction to the Chicago PMI report can be used as a barometer to sharply disappointing US data then any reading beneath the key 50-level -- which distinguishes between expansion and contraction, will trigger a renewed bout of aggressive dollar selling to fresh lows. On the flipside of that coin though, an upbeat ISM manufacturing report would offset the contraction in yesterday’s Chicago PMI and potentially prompt a flurry of profit-taking ahead of the weekend, in effect initiating a corrective bounce in the dollar.
Loonie traders will also focus on Canada’s jobs report due out at 7:00 AM. The Canadian dollar has been subjected to weakness recently given market perception that Canada’s economy will not be immune to further deterioration in US economic fundamentals. November net change in employment is seen at 12.0k, but lower compared with October’s growth of 50.5k. The unemployment rate for November is seen unchanged at 6.2%.
posted by Kalin Tasev @ 11:25 AM
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