USD - Major events in the week ahead

Saturday, Dec 10 2016

Events that marked the week:

On Monday ISM Non-Manufacturing PMI figures were released. America’s service industries expanded in November at the fastest clip since October of last year, putting the economy’s biggest sector on a robust growth path. The Institute for Supply Management’s non-manufacturing index jumped to 57.2, exceeding all forecasts in a Bloomberg survey, from 54.8 in October, the Tempe, Arizona-based group’s data showed Monday. Readings above 50 signal growth. The median forecast called for 55.5.

Tuesday brought Trade Balance figures. The U.S. trade deficit recorded its biggest increase in more than 1-1/2 years in October as exports of soybeans and other products fell, suggesting trade would be a drag on growth in the fourth quarter. The Commerce Department said on Tuesday the trade gap rose 17.8 percent, the largest increase since March 2015, to $42.6 billion. Higher imports due to rising domestic demand also contributed to the widening of the deficit. When adjusted for inflation, the deficit rose to $60.3 billion from $54.2 billion in September.

Thursday was marked by Unemployment Claims data. In the week ending December 3, the advance figure for seasonally adjusted initial claims was 258,000, a decrease of 10,000 from the previous week's unrevised level of 268,000. The 4-week moving average was 252,500, an increase of 1,000 from the previous week's unrevised average of 251,500. There were no special factors impacting this week's initial claims. This marks 92 consecutive weeks of initial claims below 300,000, the longest streak since 1970.

Focus of the Friday's session was on Consumer Sentiment data. Consumer confidence jumped more than forecast this month as Americans expressed the sunniest picture of their financial situation in 11 years, extending a boost following Donald Trump’s election victory. The University of Michigan said Friday that its preliminary index of sentiment rose to 98, the highest since January 2015, from 93.8 in November. The median projection in a Bloomberg survey called for 94.5. The current conditions index, which measures Americans’ perceptions of their personal finances, increased by 4.8 points to 112.1, the highest since 2005.

This week markets will be looking at:

PPI (Wednesday 14:30)

Retail Sales (Wednesday 14:30)

Industrial Production (Wednesday 15:15)

Federal Funds Rate/FOMC Statement (Wednesday 20:00)

CPI (Thursday 14:30)

Unemployment Claims (Thursday 14:30)

Philly Fed Manufacturing Index (Thursday 14:30)

Empire State Manufacturing Index (Thursday 14:30)

Building Permits/Housing Starts (Friday 14:30)

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