Flurry Of Economic Reports Including GDP, FOMC, And Employment Situation On Tap For Next Week

Flurry Of Economic Reports Including GDP, FOMC, And Employment Situation On Tap For Next Week - Economic Preview

Friday, April 25, 2008 4:29:46 PM - It was a session of modest gains on Wall Street, with the Dow closing up around 42 points. Next week, a plethora of economic reports will be released, a stark contrast to this week's quiet economic front.

There are no major economic reports scheduled for Monday. On Tuesday a report on Consumer Confidence in April will get the ball rolling. Analysts expect the index to shrink to 62.0 from last month's 64.5 as consumers faced record gas prices and rising food prices in April. In addition, the FOMC's April meeting will begin.

Wednesday, advanced GDP for the first quarter 2008 will be released, giving a more concrete indication of whether or not the U.S. economy is in a recession. Analysts are looking for a meager growth rate of 0.4 percent. Also grabbing attention Wednesday is the FOMC decision on whether or not to change the federal funds rate. The Federal Reserve has cut the federal funds rate at 7 consecutive meetings, chopping 300 basis points off the rate bringing it from 5.25 percent to 2.25 percent. Investors are looking for the Fed to cut an additional 25 basis points, bringing the rate to a flat 2 percent.

Chicago PMI for April and Crude Inventories for the week of April 26 will also be made public Wednesday.

Thursday, data on personal income and spending for March will be released, along with construction spending for the same month. Information on the state of manufacturing will be made public through the ISM index.

On Friday, the Employment Situation Report for the month of April will take center stage. This report will offer a comprehensive examination of the labor market, which has experience three consecutive months of job loss. Analysts are expecting the streak to extend to 4 months, predicting a loss of 80,000 jobs in the month of April.

Later in the morning, a report on Factory orders in March will round out the week.


Canadian Dollar Mixed Against Major Counterparts [USD/CAD]

Friday, April 25, 2008 4:05:54 PM - The Canadian dollar was mixed in trading against other major currencies on Friday in New York. The loonie was lower against the greenback, higher against the euro and range-bound with the yen.

There was no major economic news out of Canada on Friday. South of the border, US consumer sentiment dropped more than expected to a 26-year low amid concerns about soaring prices and lingering problems in the housing market.

The loonie was modestly lower against the U.S. dollar on Friday. The currencies remained in a range that began on Wednesday and moved at 1.0157 in the mid-afternoon.

The Canadian currency moved to a weekly high against the euro on Friday. The pair traded at 1.5843, slightly off its high of 1.5827. Germany's index of import prices increased 5.7% year-on-year in March, slower than the 5.9% expected, the Federal Statistical Office reported Friday.

The loonie and yen were range-bound. The currencies exchanged at 102.69 in the mid-afternoon. Traders considered data that showed the UK economy registered an annual growth of 2.5% in the first quarter.