Overview of the main economical events of the current day - 10/06/2013
The main events of this week
Last week the dollar showed the largest decline over the year and fell by 2% in the dollar index which shows its relation towards the basket of six major currencies. During the week the dollar leveled the entire May increase. The largest decrease was on Wednesday and Thursday after the ADP report when bad labor market data which must have been released on Friday were worked out.
The data of the USA Department of Labor turned out rather contradictory. On the one hand Non-Farm Employment Change rose by 175 thousand which is the largest increase since February. The data turned out a little higher than the forecast of 163-168 thousand and almost coincided with the growth of employment change for the last 12 months which is 172 thousand per month.
Non-Farm Employment Change
On the other hand unemployment rate increased by 0.1% up to 7.6% from 7.5% in April. Although, unemployment rate growth can be explained by the fact that the population has started to return to the labor market. It is indirectly proved by the growth of participation rate from 63.3% to 63.4% and by the decrease of population not in labor force by 231 thousand. Underemployment rate (U6), which includes discouraged workers and part time workers, has fallen from 13.9% to 13.8% for the past month.
Unemployment Change in the USA
In general the USA labor market data turned out a little better than expected. The dollar was decreasing in anticipation of bad data and now its corrective bounce can go on this week facing 2-day meeting of the Fed which will be held next week June 18,19.
On weekend there was a release of a large Chinese data block. Inflation continued to fall and new loans also dropped. Industrial production and trade balance were as forecasted. However, imports and exports decreased significantly. The released data are negative for the Australian dollar as the currency of the main trade partner of China.
This week there will not be a lot of important macrostatistics data. Market participants will think over the key data of the US labor market released on Friday. There will be two meetings of Japanese and New Zealand central banks.
As usually, on the second week of the month industrial production and inflation data will be released. There will be a release of the UK and Australian labor market data. On Wednesday the German Federal Constitutional Court is due to announce a ruling regarding the constitutionality of the ECB's Outright Monetary Transactions policy (OMT). The hearings will be held two days – on Tuesday and Wednesday.
The USA realized sales will be released on Thursday; and producer prices and Prelim U. of Michigan Consumer Sentiment - on Friday. Traditionally, on the second week of the month long-term US bonds will be sold from Tuesday to Thursday. In theory, it may lead to the dollar increase and reduce of risky assets. 10-Jun (UTC+4)
13:00 Germany to Sell EUR4 bln 182-day Bills
17:00 France to Sell Bills 11-Jun
12:00 the Netherlands to Sell Up to EUR3.5 bln 2016 Bonds
13:00 Greece to Sell EUR1.25 bln 182-day Bills
21:00 the USA to Sell $32 bln 3-year Notes 12-Jun
13:00 Italy to Sell 3- and 12-month Bills
13:30 Germany to Sell EUR5 bln 2015 Bonds
21:00 the USA to Sell $21 bln 10-year Notes 13-Jun
13:00 Italy to Sell 3-year Bonds (BTP)
21:00 the USA to Sell $13 bln 30-year Bonds 14-Jun
07:45 Japan to Sell 5-year Bonds
14:00 Belgium to Sell BondsBy MasterForex Company