The U.S. dollar is rebounding on Monday after dropping last week led by lower than expected fourth quarter 2014 GDP results on Friday in the first estimate that led to some investors questioning the overall health of the U.S. economy.
The U.S. Commerce Department reported on Friday that the U.S. economy grew at a pace of 2.6 percent in the fourth quarter of 2014, below the forecast of 3.0 percent.
The “second” estimate for the fourth quarter, based on more complete data, will be released on February 27, 2015.
For the entire year of 2014, U.S. GDP came in at 2.4 percent, higher than 2.2 percent in 2013.
Today Asian stocks are trading lower and growth concerns are resurfacing for China after latest manufacturing figures released from Beijing on Sunday revealed that Chinese PMI in January declined to 49.8 on a seasonally adjusted period, the lowest level in nearly 2.5 years, while the final HSBC/Markit Purchasing Index (PMI) was 49.7 in January on a seasonally adjusted basis, below 50.0, the level that marks growth from contraction.
Greece’s new finance minister Yanis Varoufakis is meeting today with a variety of European officials to seek support for a renegotiated bailout plan.
Final euro area manufacturing PMI released today was at 51.0 in January, a 6 month high.
Manufacturing output rose the most in Germany, Italy, Spain, the Netherlands, and Ireland.
The week ahead looks to be a busy week for economic data in the U.S. with a variety of reports surfacing with the U.S. employment report on Friday carrying the most weight.
The market expects the U.S. job growth momentum to continue in 2015.
Briefing.com forecasts an increase of 235,000 in January compared to 252,000 in December while the unemployment rate is expected to hold steady at 5.6 percent.
Personal Income and Personal Spending (DEC), PCE prices (DEC), Construction Spending (DEC), ISM Index (JAN).
Auto and Truck Sales, Factory Orders (DEC)
ADP employment change (Briefing.com forecasts 250,000 for January), ISM Services, crude inventories
Initial Jobless claims, continuing claims, trade balance, productivity, natural gas inventories
U.S. non-farm payroll report, consumer credit