Any declines will suggest that the Canadian economy is the next to head for recession, though it has held up well relative to countries like the US as domestic demand holds currency trading singapore strong. There will be some event risk on hand for the Canadian dollar on morning as the Ivey Purchasing Managers' Index (PMI) - a gauge of business activity - is forecasted to fall to the lowest level since record keeping began in 1999 during December from 40.2 in November. Meanwhile, the Euro-zone producer price index plunged by 1.9 percent during the month of November, currency trading singapore the sharpest decline since 1981, as lower commodity prices weigh on input costs. Given the decline forex trading in estimates for Euro-zone CPI below the European Central Bank � 2.0 percent target to a more than 2-year low of 1.6 percent, it seems increasingly likely that the ECB will move to cut rates by 50 basis points to 2.00 percent on January 15.Related Article. The German unemployment change foreign exchange brokers ruthy for the first time in almost three years micro forex trading forex during December by 18,000, suggesting that consumption growth is likely to weaken substantially. Top Forex Trades for 2009British Pound Remains Strong Despite Signs of Impending BOE Rate Cut on ThursdayThe British pound continued to stage its rebound, and despite the fact UK interest rates are relatively low at 2.00 percent, the currency forex online broker has been the strongest major currency in recent days as part of a correction of its massive declines through the second half of 2008. This currency trading india is indeed within the realm of possibilities since the UK has tipped into recession and the BOE, and UK government, anticipate that things will only get worse. Indeed, there is speculation that the plan will add up to $775 billion over two years, with $300 billion devoted to tax cuts for individuals and businesses, and politicians are far more concerned with being remembered as the ones micro forex trading who saved the US economy from a second Great Depression, rather than being budget hawks. With the CBO also forecasting that the recession will extend "well into" 2009, echoing the sentiment of some Federal Open Market Committee members, and real GDP of only 1.5 percent in 2010, it's no wonder forex officials are striving to take drastic action soon.Meanwhile, Challenger, Thaxter & Christmas reported that job cuts in the US rocketed 274.5 percent higher during December from a year earlier, the most since led by the financial, chemical, retail, telecommunication and electronics sectors. Nevertheless, the data suggests that NFPs are bound to have fallen by another half million in the final forex broker list month of the year, which could have dour consequences for the unemployment rate, which is forecasted to rise to a more than 15-year high of 7.0 percent from 6.7 percent.Related Articles. Indeed, this component can sometimes serve as a good leading indicator for the release forex by Statistics Canada of the net employment change on Friday. The British pound may only fall sharply if the BOE cuts rates more than expected, say by 100 basis points, but if the MPC only cuts rates by 25 � 50 basis points and suggests that they will leave rates unchanged next month, the currency could actually surge.Australian, New Zealand, Canadian Dollars Reverse Course as Commodities Tumble The Australian dollar, New Zealand dollar, and Canadian dollar reversed course on as traditionally � risky � assets, including equities, currency broker canada commodities, and forex rycca trades, fell across the board. There was no fundamental drive behind the move, as economic data was broadly bearish. Likewise, the ADP National Employment report sho the sharpest decline in private nonfarm employment since record keeping began in with the index down by 693K in December. Fairlie Belkas, Currency Strategist for E-mail. Furthermore, the survey said that spreads on secured lending to households and on corporate lending had widened, and that defaults on household and non-financial business loans had increased. Euro Bounces from Key Support Versus US Dollar, British Pound - May Prove Short-Lived - British Pound Remains Strong Despite Signs of Impending BOE Rate Cut on - Australian, New Zealand, Canadian Dollars Reverse Course as Commodities TumbleUS Dollar Tumbles as Data Suggests NFPs Will Plunge at Least 500K, Budget Deficit to Hit Record $1.2 Trillion The US dollar ended lower versus the euro, Japanese yen, Swiss franc, and British pound amidst news that the US budget deficit is set to spiral higher this year and as data signaled that � US non-farm payroll (NFP) report could be deeply disappointing. In fact, crude oil plummeted approximately 12 percent as the US Energy Department reported that declining consumption led inventories of crude oil, gasoline and distillate fuel to rise last week. In fact, the BOE � latest Credit Conditions Survey for the fourth quarter indicated that they had worsened, with availability of loans down despite unexpectedly stable demand for mortgages. For a full list of upcoming event risk and past releases, go to the Calendar Written by. Furthermore, Ivey PMI can be market-moving for the Canadian dollar, with disappointing figures likely to weigh on the currency. Index readings below 50 signal a deterioration in activity, and traders should keep an eye on the individual components of the index, particularly employment. Overall, this leaves the odds in favor of year another rate cut by the BOE on but the reaction of the British pound may depend on what sort of bias is reflected in the Monetary Policy Committee � subsequent statement. It is taber noting that the ADP report just underwent methodological changes in order to bring that numbers more in line with the ones issued by the government, so it will be interesting to see if this is indeed the adams this week. However, UK economic data was quite bearish as the British Retail Consortium � Shop Price Index fell 2.0 percent during December, bringing the annual rate of growth down to 0.5 percent. According to the nonpartisan Congressional Budget Office (CBO), President-elect Barack Obama will face a $1.2 trillion deficit in 2009, which may ultimately end up being much higher considering that this forecast doesn't even take into account the probable implementation of a massive fiscal stimulus plan. US Dollar Could Dive on NFPs - Euro, British Pound May Also Face Bearish Data, US Dollar Weekly ForecastEuro Bounces from Key Support Versus US Dollar, British Pound - May Prove Short-LivedThe euro bounced from support versus the US dollar and British pound on with EUR/USD continuing higher from � test of 1.3311 while EUR/GBP drifted back above the psychologically important 0.90 mark following a late-morning drop to 0.8961. Looking ahead to the British pound should remain volatile as News is forecasting that the Bank of England will cut rates by 50 basis points at 7:00 ET on Thursday.

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