The German Unemployment Rate and Change in Unemployment numbers for the month of January 2014 are due to be issued tomorrow 30 January 2014. At this time, many experts believe that there has been a slowdown in the number of jobs lost in comparison with the previous month. However, despite this good news, they do not foresee any significant changes in the overall unemployment rate.
Readers are reminded that Germany is one of the driving forces behind the European economy and as such, any changes there can have a significant effect on the rest of the Eurozone. Germany represents a major source of financial and manufacturing resources that help to boost up the value of the euro in its trading. Reports from the past month have indicated that Germany has been able to push back against the economic slowdown that they were experiencing towards the end of 2014. Germany is also expected to release their Consumer Price Index report tomorrow. Currently, experts have expressed that they expect to see a slight rise in the cost of living.
Traders are advised to watch for some fluctuations in the value of the euro following the release of these reports.
US GDP Numbers to be Issued Tomorrow
The American Gross Domestic Product report is set to be released tomorrow 30 January 2014. Experts are currently expecting to witness a drop in this metric, possibly by a significant margin. This report will relate to the annualized fourth quarter (4Q) for 2013.
Readers are reminded that the GDP is the combination of a country's consumption, investments, government spending and the difference resulting from comparing exports and imports. As such, it provides economists a snapshot of how a country is progressing over a given period of time.
Analysts are unsure regarding the expert opinion on the drop in the GDP numbers. They note that the levels of consumer spending rose towards the end of the year, as did manufacturing and employment rates.
Investors are advised to watch for changes to the dollar after the release of this report.
Japanese CPI Report to Come Out Thursday
The December 2013 numbers for Consumer Price Index for Japan is expected to be released tomorrow 30 January 2014. At this time, no changes are expected from the currently low levels of the CPI that were reported in the previous month of November 2013.
Analysts remind readers that the Bank of Japan in line with the policies of Prime Minister Shinzo Abe have set forth a goal of raising inflation as a means of jumpstarting the economy. With prices falling constantly over a 15 year period, the government has gone on a mission of reversing the trend with an extensive stimulus package 60 -70 trillion Yen over the course of the year. The central bank reaffirmed this policy last week in their decision to continue their quantitative easing measures.
As has been noted in previous reports, the Consumer Price Index report is an important indicator of inflation in the economy. As the CPI measures the cost of a set basket of basic goods, it is sensitive to shifts in prices for consumers. As prices of these items rise or fall, it can affect the spending abilities of the public and therefore influence economic activity in that country or region.
Analysts believe that the release of this report may have some effect on the value of the yen as investors are observing closely how effective these harsh stimulus measures are for the economy. As such, traders are advised to watch for some fluctuations for the yen in trading.