Aug 31 2007
Packed US Calender Today - Chicago PMI on Tap.
The past week has been relatively light on news events from the US, and the USD pegged currencies mostly moved in a range with no ground breaking sharp movements. Yesterday the GDP revision was released inline with expectations at 4.0% for the annualized and 2.7% for the deflator. The House Price Index came in a bit lower than expected at 0.2% but caused no significant move.
Today will be a day packed with major news events, and traders should expect high volatility especially from the USD side of the board.
The first release at 12:30 GMT will be the Core Personal Consumption Expenditures -PCE Price Index which measures the rate of inflation experienced by consumers when purchasing goods and services, excluding Food and Energy. The forecast stands at 0.2% which is a bit higher than last month’s 0.1%. Next up will be Personal Income and Personal Spending where income is expected to remain unchanged at 0.4%, and spending is expected to rise a bit from 0.1% to 0.4%.
A bit later at 13:45 GMT the Chicago PMI is expected to be released. The index measures the health of the Chicago business environment. It’s derived from a monthly survey of purchasing managers where respondents indicate whether their organization’s activity is higher than, the same as, or lower than the previous month for output, purchases, employment, inventories, orders, and prices. An index reading above 50 indicates sector expansion. This month the expectations are for a slight decrease from 53.4 to 53.0. To finish the already busy schedule, the Fed’s Chairman Bernanke will start his speech on 15:00 GMT, where many people believe he will gently hint a possibility for a rate cut next month.
It is expected to be a very choppy trading day, especially around the releases time, and traders should pay close attention to violent price movements.
My Forex Blog
