Here are the key factors to keep in mind today for US Dollar trades:
- US ISM Milwaukee: Forex traders will get a dose of regional economic reports today, starting with the ISM Milwaukee Index for August. Economists predict a stronger ISM Milwaukee Index of 50.00 and forex traders can compare this with the 47.12 which was reported in July. Despite the expected increase, the Milwaukee ISM Index would point towards a stagnant economy in the region which is a bearish signal for the US Dollar.
- US Chicago PMI: The next regional report is the important Chicago PMI for August. While the Chicago PMI is not expected to show a stagnant regional economy, it is expected to move in the wrong direction. Economists predict a slowdown to 54.5 in August. Forex traders can compare this to the level of 54.7 which was reported in July. The slowdown is minor, but moving closer to stagnation; this report should be monitored closely moving forward.
- US Dallas Fed Manufacturing Activity: The last regional report comes out of Dallas with the release of the Dallas Fed Manufacturing Activity Index for August. This is expected to be most evident regional report of a continued slowdown in the US economy. Economists predict the Dallas Fed Manufacturing Activity to be reported at -3.8 in August. Forex traders can compare this to the -4.6 which was reported in July. While the pace of the contraction may have slowed down, it is a contraction nevertheless which does raise red flags for the overall US economy and therefore the exchange rate of the US Dollar which could see a downward adjustment.
Here is the key factor to keep in mind today for Japanese Yen trades:
- Japanese Loans & Discounts Corporation: The annualized Loans & Discounts Corporation for July is predicted by economists to rise by 3.28%. Forex traders can compare this to June’s increase of 2.74%.
- Japanese Industrial Production: The Japanese Yen received unexpected bearish news out of the industrial production data for July. Industrial production surprised to the downside and posted a contraction of 0.6% monthly while the annualized increase was reported at only 0.2%. Economists predicted an increase of 0.1% monthly and 0.8% annualized. Forex traders can compare this to the increase of 1.1% monthly and 2.3% annualized which was reported in June.
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