Daily Forex Tips – October 5th 2009

U.S Non-Manufacturing Index On Tap

As the echoes of the unexpected drop in the U.S Non-Farm Employment Change are still with us, a new trading week enters.

Daily Forex Tips

The disappointing data has led to drop in value of the Dollar against the major currencies, and the main question now is whether the Dollar will correct its losses from Friday or whether the downtrend will continue throughout this week as well. The results of the following publications are likely to determine this trend.

08:30 GMT: GBP – British Services Purchasing Managers’ Index (PMI) – This is a survey of purchasing managers who are asked to rate the level of business conditions in the U.K. The previous publication was 54.1, and a higher figure has the potential to boost the GBP.

09:00 GMT: EUR – European Retails Sales – Analysts are forecasting a drop of 0.4% in the total value of inflation adjusted sales at the retail level for August. However, if the end result will be positive, it will be the first positive result in 5 months, and is likely to have a bullish impact on the EUR.

14:00 GMT: USD – U.S Non-Manufacturing Purchasing Managers’ Index – Analysts expect a 50.0 result, which could be the best result in 12 months. If the end result will indeed reach expectations it might correct some of the USD’s losses from Friday.