USD - Major events in the week ahead

Friday, Jan 09 2015

Events that marked the week:

Tuesday's US session Non-Manufacturing PMI figures were released. US Non-Manufacturing PMI registered 56.2 percent in December, 3.1 percentage points lower than the November reading of 59.3 percent. Analysts were predicting smaller decrease to 58.2. This represents continued growth in the non-manufacturing sector. According to the NMI, 12 non-manufacturing industries reported growth in December. Comments from respondents are mostly positive about business conditions and the overall economy for year-end.

On Wednesday ADP job figures and Trade Balance data was released. Private sector employment increased by 241,000 jobs from November to December.Analysts were predicting smaller incline by 230,00. Payrolls for businesses with 49 or fewer employees increased by 106,000 jobs in December, up from 99,000 in November. Employment among companies with 50-499 employees rose by 70,000, down slightly from November’s increase of 73,000.

US goods and services deficit was $39.0 billion in November, beating forecasts on a decline to $42.3 billion and down $3.2 billion from $42.2 billion in October, revised. November exports were $196.4 billion, $2.0 billion less than October exports. November imports were $235.4 billion, $5.2 billion less than October imports.

Thursday brought Unemployment Claims. In the week ending January 3, the advance figure for seasonally adjusted initial claims was 294,000, a decrease of 4,000 from the previous week's unrevised level of 298,000. Analysts were anticipating decrease to 291,000. The 4-week moving average was 290,500, a decrease of 250 from the previous week's unrevised average of 290,750.

Friday's US session was marked by NFP report. Total nonfarm payroll employment increased by 252,000 in December, above expected increase by 241,000. In 2014, job growth averaged 246,000 per month, compared with an average monthly gain of 194,000 in 2013. In December, employment increased in professional and business services, construction, food services and drinking places, health care, and manufacturing.

The unemployment rate declined by 0.2 percentage point to 5.6% in December, beating predictions on decline to 5.7%, and the number of unemployed persons declined by 383,000 to 8.7 million. Over the year, the unemployment rate and the number of unemployed persons were down by 1.1% and 1.7 million, respectively.

This week markets will be looking at:

JOLTS Job Openings (Tuesday 16:00)

Retail Sales (Wednesday 14:30)

PPI (Thurday 14:30)

Unemployment Claims (Thursday 14:30)

Empire State Manufacturing Index (Thursday 14:30)

Philly Fed Manufacturing Index (Thursday 16:00)

CPI (Friday 14:30)

Industrial Production (Friday 15:15)

Prelim UoM Consumer Sentiment (Friday 15:55)

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