Economic Events: (GMT)

09:30     GBP       Construction PMI                                                           52.9                        53.2

The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the construction industry. A reading above 50 indicates expansion in the construction industry; a reading below indicates contraction. It gives an indication about the health of the construction section in the UK. Traders watch these surveys closely as purchasing managers usually have early access to data about their company's performance, which can be a leading indicator of overall economic performance. 

A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP                            

10:00    EUR       PPI (MoM)                                                                         -0.1%                     0.2%

The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.

A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

13:30     USD       Nonfarm Productivity (QoQ)                                      1.0%                      2.3%     

Nonfarm Productivity measures the annualized change in labor efficiency when producing goods and services, excluding the farming industry. Productivity and labor-related inflation are directly linked-a drop in a worker's productivity is equivalent to a rise in their wage.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.           

13:30    USD       Initial Jobless Claims                                                    373K                      377K

13:30    USD      Unit Labor Costs (QoQ)                                                  0.9%                      -2.5%                    

13:30    USD      Continuing Jobless Claims                                          3565K                    3554K     

Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance.       

USD/CHF

USD/CHF Fundamental Analysis Feb. 2, 2012, Forecast

Analysis and Recommendations:

The USD/CHF trading at 0.9123 and has been falling all day. The pair opened at 0.9202 and have dropped steadily.

The ADP report came in under forecast, but did have some positive information, there seems to be hiring in both the private and public sectors. The ADP report is compiled by payroll processor ADP who does most payroll for the large companies in the US but not all companies and not the medicum and small so their figures can be off sometimes. If small and medium companies in the private sector are hiring it does not reflect in this report.

Employment in the U.S. nonfarm private business sector increased by 170,000 from December to January on a seasonally adjusted basis. The estimated advance in employment from November to December was revised down to 292,000 from the initially reported 325,000. Employment in the private, service-providing sector rose 152,000 in January

In Switzerland the data released today for retail sales and PMI were all unexpected drops below forecasts casting a shadow on the Franc.

Today's Economic Reports Results

GBP       Nationwide HPI (MoM)                     -0.2%                  -0.1%                     -0.2%      Unexpected Drop           

CHF        Retail Sales (YoY)                          0.6%                     1.6%                      1.8%       Unexpected Drop           

CHF        SVME PMI                                         47.3                       51.8                        49.1        Unexpected Drop

EUR        French Manufacturing PMI             48.5                        48.5                        48.5                                       

EUR        German Manufacturing PMI         51.0                       50.9                        50.9         Above Forecast              

 EUR       Manufacturing PMI                         48.8                       48.7                        48.7         Above Forecast              

 GBP      Manufacturing PMI                          52.1                       50.1                        49.7        Above Forecast               

 EUR       CPI (YoY)                                           2.7%                     2.7%                      2.7%

Scheduled Sovereign Bond Sales

Feb 01  15:30  Sweden  Details nominal bond auction on Feb 08

Feb 01  16:00  US

Announces details of 3Y Notes on Feb 07, 10Y Notes on Feb

08 & 30Y Bonds on Feb 09

Feb 02  09:50  France  OAT Auction

Feb 02  10.30  UK  Auctions 0.125% 2029

USD/CHF Pivot Points (Time Frame: 1 Day)
 

Name S3 S2 S1 Pivot R1 R2 R3

Classic
0.8961
0.9038
0.9097
0.9174
0.9233
0.9310
0.9369

Fibonacci
0.9038
0.9090
0.9122
0.9174
0.9226
0.9258
0.9310

Camarilla
0.9119
0.9132
0.9144
0.9174
0.9169
0.9181
0.9194

Woodie's
-
0.9034
0.9088
0.9170
0.9224
0.9306
-

DeMark's
-
-
0.9204
0.9159
0.9068
-
-