Important economic indicators to be announced – This week will be marked by the release of key economic indicators that are important to traders in the forex market. On Aug. 10, the U.S. Federal Reserve will make a decision on interest rates while, in Germany, the government will release the July inflation figure. Aug. 11 will see the U.S. release figures for international trade in June and the Bank of Japan will make a rate decision for August. On Aug. 12, the U.S. Labor Department will announce figures for initial unemployment claims and, across the Pond, June industrial production figures will be available for the euro zone. The last business day of the week will see a flurry of announcements – Q2 GDP figures for Germany, France and the euro zone, and inflation and retail sales data for the U.S.
Observers of the U.S. economy are scratching their heads – The economic picture in the U.S. remains somewhat of a jigsaw puzzle to the forex market. Democratic leaders in Congress will push to keep in place expiring tax cuts for the middle class (which had their origins early in the President George W. Bush administration) while socking the rich with a new tax increase by allowing expiring provisions affecting upper-income taxpayers to meet their demise. The Republicans want to keep all of the expiring provisions in place, at least for two years. Everyone seems to agree that uncertainty in this area is detrimental to improving the economy. Meanwhile, the estimated federal deficit is $1.74 trillion for the first 10 months of FY 2010, according to a monthly report from the Congressional Budget Office. On the bright side, net corporate income tax receipts have been up for each of the past six months when compared to FY 2009. The increases are primarily attributable to stronger corporate profits in 2010, CBO said on Aug. 5. Receipts from the Federal Reserve showed a healthy increase, “which primarily reflect the central bank’s much larger portfolio and its shift to riskier and thus higher-yielding investments in support of the housing market and the broader economy,” CBO said. And, of course, employment figures are a mixed bag, with President Obama trumpeting new job creation in the private sector while his detractors focus on the unemployment rate remained at 9.5%. The number of so-called 99ers, workers whose unemployment benefits are finally exhausted after 99 weeks, continues to grow.
Observers of the U.S. economy are scratching their heads – The economic picture in the U.S. remains somewhat of a jigsaw puzzle to the forex market. Democratic leaders in Congress will push to keep in place expiring tax cuts for the middle class (which had their origins early in the President George W. Bush administration) while socking the rich with a new tax increase by allowing expiring provisions affecting upper-income taxpayers to meet their demise. The Republicans want to keep all of the expiring provisions in place, at least for two years. Everyone seems to agree that uncertainty in this area is detrimental to improving the economy. Meanwhile, the estimated federal deficit is $1.74 trillion for the first 10 months of FY 2010, according to a monthly report from the Congressional Budget Office. On the bright side, net corporate income tax receipts have been up for each of the past six months when compared to FY 2009. The increases are primarily attributable to stronger corporate profits in 2010, CBO said on Aug. 5. Receipts from the Federal Reserve showed a healthy increase, “which primarily reflect the central bank’s much larger portfolio and its shift to riskier and thus higher-yielding investments in support of the housing market and the broader economy,” CBO said. And, of course, employment figures are a mixed bag, with President Obama trumpeting new job creation in the private sector while his detractors focus on the unemployment rate remained at 9.5%. The number of so-called 99ers, workers whose unemployment benefits are finally exhausted after 99 weeks, continues to grow.
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