What to Expect This Week

This week, in the United States, labor data should be in focus. We expect a 50K gain in payrolls in December due to mild weather. Yet, the unemployment rate may stay unchanged as more people start looking for jobs. Elsewhere, purchasing managers index (PMI) is likely to rise in January supported by growth in new orders. Also, consumer spending may pick up modestly.
TradingEconomics.com 1/30/2010 1:33:13 PM

In the Euro Area, Greece's struggle to tame its rising debt will be in spotlight. Moreover, even though the European Central Bank decision on Thursday will focus on implementation of policy with regard to fiscal conditions of some European economies, the ECB is likely to leave interest rate unchanged and signal an end of unlimited funding facility in April. In the United Kingdom, the Bank of England Monetary Policy Committee is expected to end quantitative easing due to rising inflation and improving GDP growth. Elsewhere, trade deficit is likely to shrink further prompted by rising exports. In Canada, the jobless rate may stay unchanged in January. In Australia, the Reserve Bank will probably increase its interest rate by another 25pp to 4%. Finally, in New Zealand, the unemployment rate may rise to 6.7%.