The U.S Economy Probably Lost Jobs Data Will Show

Daily Forex Fundamentals | Written by Finotec Group | Aug 01 08 10:16 GMT |

The U.S. probably lost jobs in July for a seventh consecutive month and the unemployment rate rose, increasing the risk the economic slowdown will worsen, economists said before a government report today. Fewer jobs, combined with decreasing property values, stricter lending rules and near-record energy prices, would further undermine the ability of Americans to spend. Cutbacks at UAL Corp and Starbucks signal firings are spreading beyond builders and manufacturers as the cost of raw materials soars. 'We'll see accelerated declines in payrolls,' said Lindsey Piegza, an economic analyst at FTN Financial in New York. 'That will really compound the pressure on the consumer.' EUR/USD is currently trading at $1.5562 as of 9:24 am, GMT. The pound fell near to a three-week low against the dollar and weakened versus the euro after U.K. manufacturing shrank in July by the most in a decade, adding to evidence of a looming recession. An index based on a survey of more than 600 manufacturers by the Chartered Institute of Purchasing and Supply dropped to 44.3, the lowest since December 1998, from 45.9 in June, Reuters said today. The U.K. currency extended its drop after British Energy Group Plc, Britain's biggest nuclear-power producer, rejected a takeover approach from Electricite de France SA, according to people with knowledge of the talks. 'The news you're getting about the British economy goes only in one direction,' said Lutz Karpowitz, a Frankfurt-based currency strategist at Commerzbank AG, Germany's second-biggest lender. 'The economy is very weak and we don't see signs of a recovery. The pound is going to get weaker against the euro and the dollar.' The GBP/USD is currently trading at 1.9783 as 9:27 am, GMT. Economic Calendar Time Country Event Period Previous Forecast Significance 14:00 ISM Manufacturing Index USD Jul 50.2 49.8 **** 14:00 ISM Manufacturing Prices USD Jul 91.5 12:30 Nonfarm Employment Change USD Jul -62K -65K **** 12:30 Unemployment Rate USD Jul 5.5% 5.6% **** 08:30 Manufacturing PMI GBP Jul 45.8 **** 08:00 Manufacturing PMI EUR Jul 47.5 47.5 00:00 Manufacturing PMI AUD Weekly 47.0 Finotec Group Inc. http://www.finotec.com/ Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.