European session: The franc rose
01.09.2011, 12:11

European session: The franc rose

Data:

06:00 Germany GDP (Q2) revised 0.1%
06:00 Germany GDP (Q2) revised Y/Y 2.7%
06:00 UK Nationwide house price index (August) -0.6%
06:00 UK Nationwide house price index (August) Y/Y -0.4%
07:55 Germany PMI (August) seasonally adjusted 50.9
08:00 EU(17) PMI (August) 49.0
08:30 UK CIPS manufacturing index (August) 49.0

The franc rose against all of its major counterparts while the euro dropped against the dollar on signs European economies are slowing as policy makers struggle to stem the sovereign-debt crisis.
The Swiss currency rallied as European manufacturing contracted in August more than initially estimated and the Swiss economy grew the least in two years, spurring refuge demand. 
The dollar rose versus the yen before a Labor Department report forecast to show America’s initial claims for unemployment insurance payments dropped in the week ended Aug. 27. The median forecast of economists in a survey was for a decrease to 410,000 from 417,000.
A report from the Institute for Supply Management is forecast to show its U.S. manufacturing index fell to 48.5 last month from 50.9 in July. The dividing line between expansion and contraction is 50, a level that the gauge last fell below in July 2009.
A European manufacturing gauge based on a survey of purchasing managers in the 17-nation euro region fell to 49 in August from 50.4 in the prior month, London-based Markit Economics said today. It was the weakest reading in two years and below an initial estimate of 49.7 published Aug. 23. A reading below 50 indicates contraction.
Economic growth in Germany, the euro region’s largest economy, slowed in the second quarter as household spending decreased. Germany’s gross domestic product expanded 0.1 percent in the second quarter, down from 1.3 percent in the first three months of the year, the nation’s Federal Statistics Office said today, confirming its initial Aug. 16 estimate.

EUR/USD: the pair showed low in area of $1,4260 before to be stabilized.
GBP/USD: the pair fell in area of $1,6200.
USD/JPY: the rate rose above Y77,00.

US data starts at 1230GMT with Jobless Claims, Non-farm Productivity and Unit Labor Costs data. Initial jobless claims are expected to fall 7,000 to 410,000 in the August 27 week, as the impact of the Verizon strike should be diminished. Non-farm productivity is expected to be revised down to a 0.6% decline for the second quarter based on the downward revision to growth. Unit labor costs are expected to be revised up to +2.6% as a result.
ISM Index and Construction are due at 
1400GMT. Construction spending is expected to rise 0.2% in July. Housing starts fell in the month, suggesting that residential building continued its downward trend. The ISM manufacturing index is expected to fall to a reading of 48.5 in August after the sharp drop in July. The regional data already released suggest strong contraction. US data continues with the weekly EIA Natural Gas Stocks data at 1430GMT, while late data includes the 2030GMT release of M2 money supply.

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