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  • Foreign exchange market. European session: the British pound traded higher against the U.S. dollar after the better-than-expected construction PMI data from the U.K.
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02.10.2015, 12:06

Foreign exchange market. European session: the British pound traded higher against the U.S. dollar after the better-than-expected construction PMI data from the U.K.

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:00 China Bank holiday

01:30 Australia Retail Sales, M/M August -0.1% 0.4% 0.4%

01:30 Australia Trade Balance August -2.46

01:30 Eurozone ECB President Mario Draghi Speaks

08:30 United Kingdom PMI Construction September 57.3 57.5 59.9

09:00 Eurozone Producer Price Index, MoM August -0.2% Revised From -0.1% -0.6% -0.8%

09:00 Eurozone Producer Price Index (YoY) August -2.1% -2.4% -2.6%

The U.S. dollar traded mixed against the most major currencies ahead the release of the U.S. labour market data. Analysts expect that U.S. unemployment rate is expected to remain unchanged at 5.1% in September. The U.S. economy is expected to add 202,000 jobs in September, after adding 173,000 jobs in August.

The U.S. factory orders are expected to drop 1.2% in August, after a 0.4 gain in July.

The euro traded lower against the U.S. dollar after the release of the negative economic data from the Eurozone. Eurostat released its producer price index for the Eurozone on Friday. Eurozone's producer price index declined 0.8% in August, missing expectations for a 0.6% drop, after a 0.2% decrease in July. July's figure was revised down from a 0.1% decline.

Intermediate goods prices fell 0.5% in August, capital goods prices were flat and both durable and non-durable consumer goods prices climbed 0.1%, while energy prices decreased 2.6%.

On a yearly basis, Eurozone's producer price index dropped 2.6% in August, missing expectations for a 2.4% decrease, after a 2.1% fall in July.

Eurozone's producer prices excluding energy fell 0.5% year-on-year in August. Energy prices dropped at an annual rate of 8.2%.

The European Central Bank President Marion Draghi said in New York on Thursday that the growth in the Eurozone is picking up.

"The progress achieved over the past three years to stabilize and strengthen the euro area is real. Growth is returning. The way forward is well identified. And we will not rest until our monetary union is complete," he noted.

The British pound traded higher against the U.S. dollar after the better-than-expected construction PMI data from the U.K. Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. increased to 59.9 in September from 57.3 in August, exceeding expectations for a rise to 57.5.

A reading above 50 indicates expansion in the construction sector.

The increase was partly driven by a strong rise in in residential building.

"Construction firms enjoyed a strong finish to the third quarter of 2015, as a sustained rebound in new development projects continued to have an impact on the ground. Moreover, September data suggests that the UK construction sector is still experiencing its most intense cycle of job hiring for at least 15 years, and consequently skill shortages remain a dominant concern across the industry," Senior Economist at Markit, Tim Moore, said.

EUR/USD: the currency pair declined to $1.1149

GBP/USD: the currency pair rose to $1.5171

USD/JPY: the currency pair increased to Y120.28

The most important news that are expected (GMT0):

12:30 U.S. Average hourly earnings September 0.3% 0.2%

12:30 U.S. Nonfarm Payrolls 173 203

12:30 U.S. Unemployment Rate September 5.1% 5.1%

14:00 U.S. Factory Orders August 0.4% -1.2%

17:30 U.S. FED Vice Chairman Stanley Fischer Speaks

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