Home » Euro to Dollar News » Euro Forex News – 2nd March 2009

Euro Forex News – 2nd March 2009

Economic data this week is centred on the US Non Farm Payroll on Friday when the employment figures are expected to show a further increase. However, what we need to see is whether the rate at which the numbers are increasing is beginning to slow. The ADP Non Farm Employment Change figures which are released on Wednesday are often a more useful trend and precursor of what to expect on Friday. Needless to say both fx and equity markets will react with their usual random volatility on Friday. My own personal approach has always been to wait for the price action to settle before deciding to trade and any trades are almost always in the opposite direction to the initial price move. Last week also saw in the US better than expected Chicago PMI data which came in at 34.2 as opposed to the 33 forecast. Whilst one swallow does not a summer make, this small rise could be significant as the closer it gets to 50 and beyond the more the economy is said to be expanding. This week also sees interest rate decisions in both the UK and Eurozone, with most analysts expecting a 50 basis point cut taking rates to 0.5% and 1.5% respectively.

The main news for today for the euro to dollar pair is in the US with the release of  the PMI data this afternoon from the Institute of Supply Management ( ISM), which is generally considered to be a leading indicator and is a survey of around 400 purchasing managers who provide their views on the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. If the figures are better then expected then this is generally good for the home currency which in this case is the US dollar. The forecast for this time is 34.0 against a previous of 35.6. A figure above 50 indicates an economy in expansion and below 50 one in contraction.

We have recently added an economic calendar to the site which provides a comprehensive analysis of all the latest economic news for the week which is also updated twice daily on the TV news channel. The morning session covers the main fundamental news, and the lunchtime session provides an update on the latest currency news, in addition to the live news feed which provides rolling news and updates throughout the day, with the latest prices now available on the live currency charts.