The report will set the yen tone at the beginning of the fourth quarter.

Measures the current and future activity level of large manufacturers, who are a vital part of Japan's export industry. A rising trend has a positive effect on the nation's currency. The Tankan Survey asks respondents about issues such as business conditions, supply and demand conditions for products and inventories, prices, sales, corporate profits, fixed investments and production capacity, and employment conditions. The Tankan is released four times per year and is one of the nation's most respected gauges of economic welfare. What gives this report extra credibility with traders is the fact that it is produced by the Bank of Japan.

Measures the current and future activity level of service providers, a sector that tends to be a good indicator of Japan's domestic demand. A rising trend has a positive effect on the nation's currency. The Tankan Survey asks respondents about issues such as business conditions, supply and demand conditions for products and inventories, prices, sales, corporate profits, fixed investments and production capacity, and employment conditions. The Tankan is released four times per year and is one of the nation's most respected gauges of economic welfare. What gives this report extra credibility with traders is the fact that it is produced by the Bank of Japan.

Measures the annual change in the number of cars, light trucks, sport utility vehicles, and vans sold. Motor vehicle sales are a good indicator of trends in consumer spending.

SECO is a Swiss organization that works as an interface to economic policy. Each quarter SECO releases growth forecasts for the Swiss economy.

The Schweizerischer Verband für Materialwirtschaft und Einkauf (SVME) Purchasing Manager's Index (PMI) measures the health of the economy. It's derived from a monthly survey of purchasing managers where respondents indicate whether their organization's activity is higher than, the same as, or lower than the previous month for output, purchases, employment, inventories, orders, and prices. An index reading above 50 indicates sector expansion. PMI is believed to be a leading indicator because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance.

The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Measures the monthly change in value of new construction projects.

The Institute of Supply Management (ISM) Manufacturing Index measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Measures the annual change in Japan's outstanding currency in circulation, including banknotes, coins, and current account balances. It uncovers the level of additional currency being supplied by the Bank of Japan. An increasing monetary base generally results in higher inflation.

Measures the total value of sales at the retail level. A rising trend has a positive effect on the nation's currency. Consumer spending makes up a large portion of GDP, and Retail Sales makes up one-third of consumer spending. This indicator is usually the first of the month that relates to consumer behavior, making it susceptible to big surprises.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

A rising trend has a positive effect on the nation's currency. When manufactures pay more for good and services, they are likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. PPI is highly regarded, and at extremes will have a market impact equal to that of its CPI counterpart.

The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the construction sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Measures the percentage of the total work force that is unemployed and actively seeking employment. Rising unemployment is a sign of a slowing economy.

The Producer Price Index (PPI) measures the rate of inflation experienced by manufacturers. A rising trend has a positive effect on the nation's currency. When manufactures pay more for good and services, they are likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. PPI is highly regarded, and at extremes will have a market impact equal to that of its CPI counterpart.

Measures the number of cars, light trucks, sport utility vehicles, and vans sold in the previous month. Motor vehicle sales are a good indicator of trends in consumer spending.

The Nationwide Consumer Confidence Index (NCCI) measures the mood of consumers in regard to economic conditions. The reading is derived from a monthly survey that asks respondents to evaluate the prospects for the economy in the future.

Rates should be left on hold.

Australia's central bank, the Reserve Bank of Australia (RBA), releases an Interest Rate Statement eleven times per year. The statement contains the latest decision regarding changes to the nation's short term interest rate ("cash rate"), a brief report of the economic conditions that effected their decision, and most importantly, clues on what the next rate decision will be. A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

Kansas City Federal Reserve President Thomas Hoenig will speak about the economic outlook, in Albuquerque New Mexico. Audience questions expected.

The Services Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Services Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Another strong report would reinforce expectations of higher interest rates.

The Services Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Measures the total value of sales at the retail level. A rising trend has a positive effect on the nation's currency. Consumer spending makes up a large portion of GDP, and Retail Sales makes up one-third of consumer spending. This indicator is usually the first of the month that relates to consumer behavior, making it susceptible to big surprises.

Estimates the number of new jobs created in the previous month. ADP, a leading provider of employment solutions for businesses, releases this indicator two days before the highly anticipated official Nonfarm Employment Change. ADP claims that this indicator has predictive value in regard to official statistics.

The employment and prices components will be important

The Institute of Supply Management (ISM) Non-Manufacturing Index measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Measures the monthly change in the value of manufacturer's new orders for goods. A rising trend indicates a growing economy. This report gives more in-depth information than the durable goods report released about two weeks earlier.

The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly increase in barrels of commercial crude oil held in inventory by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation and other economic forces.

New York Federal Reserve President Timothy Geithner will speak at the School of Advanced International Studies, in Washington.

Bernanke could well avoid comments on interest rate policy

Federal Reserve Chairman Ben Bernanke will speak to the Economic Club of Washington DC. Audience questions expected.

When Bernanke speaks, traders look for clues on how he plans to adjust interest rates at the next Fed meeting. Because these clues can sometimes be obscure, the market tends to become very volatile during Bernanke's speeches.

Federal Reserve Governor Donald Kohn will speak about to the Money Marketeers of New York University, in New York. Audience questions expected.

The Services Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Bank of Japan Deputy Governor Toshiro Muto will speak with business executives, in Kyoto Japan.

Muto expected to signal a rise in interest rates.

Bank of Japan Deputy Governor Toshiro Muto will speak a press conference, in Kyoto Japan.

The Retail Purchasing Manager's Index (RPI) measures the activity level of purchasing managers in the retail sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Retail Purchasing Manager's Index (RPI) measures the activity level of purchasing managers in the retail sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The central bank's governing body, the Bank of England (BOE) Monetary Policy Committee, releases an Interest Rate Statement each month. The statement contains the latest decision regarding changes to the nation's short term interest rate ("Bank rate"). A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

Rates are likely to be increased

The European Central Bank (ECB) Governing Council releases an Interest Rate Statement each month. The statement contains the latest decision regarding changes to the euro area's short term interest rate ("minimum bid rate"). A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

Markets will be on alert for the term vigilance

European Central Bank President Jean-Claude Trichet will speak at a press conference following the Governing Council meeting of the ECB in Frankfurt.

Measures the number of new construction intentions. This data is a leading indicator for the construction industry since the issuance of a building permit is one of the first steps in the construction process.

Measures the number of individuals who filed for unemployment insurance for the first time over the past week. A rising trend indicates a deteriorating labor market, which can weigh on the economy.

The Ivey Purchasing Manager's Index (PMI) measures the activity level of purchasing managers from all sectors of the economy, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Philadelphia Federal Reserve President Charles Plosser will speak about the economy and monetary policy in his first public speech, to the CFA Society. Audience questions expected.

Measures present relative economic activity. A rising Coincident Index signals an expansion phase while a falling reading is a sign of a contraction phase.

Measures overall economic activity by combining several indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices, and interest rate spreads. Most of the components were previously reported which minimizes the indicator's market impact. The Conference Board publishes this indicator monthly.

Measures the percentage of the total work force that is unemployed and actively seeking employment. Rising unemployment is a sign of a slowing economy.

Measures the total value of output produced by factories, mines, and utilities. A rising trend has a positive effect on the nation's currency because high levels of production are a sign of a strong economy. Industrial Production reacts quickly to the ups and downs of the business cycle and can predict manufacturing employment, average earnings, and personal income.

Manufacturing Production, like Industrial Production, measures the total output of factories, mines, and utilities. The difference is that it only measures the 13 sub-sectors of Industrial Production that relate directly to manufacturing. Manufacturing industries make up about 80% of total Industrial Production.

Measures the monthly increase in new purchase orders placed with domestic manufacturers for hard goods. The reading points to how busy manufacturers will be in the months to come as they work to fill the orders.

Measures the percentage of the total work force that is unemployed and actively seeking employment. Rising unemployment is a sign of a slowing economy.

The monthly data has been erratic over the past few months.

Measures the number of new jobs created in the previous month. A rising trend has a positive effect on the nation's currency. The number of new jobs being created is one of the most important indicators of the economy's health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.

A figure above 150,000 would offer dollar support.

Measures the number of new jobs created in the previous month, excluding the farming industry. A rising trend has a positive effect on the nation's currency. The number of new jobs being created is one of the most important indicators of the economy's health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.

Measures the percentage of the total work force that is unemployed and actively seeking employment. Rising unemployment is a sign of a slowing economy.

Earnings data will be important for the Fed.

Measures the monthly change in the hourly rate paid to the jobholders indicated in nonfarm payrolls.

Consumer Credit measures the monthly growth in outstanding consumer installment credit. It gives insight into the state of consumer finances and can act as a leading indicator of consumer spending.

Japanese financial markets will be closed in observance of Sports Day.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

Measures the difference in value between imported and exported goods, services, income flows, and unilateral transfers. The Current Account is a comprehensive accounting of the nation's trade with other countries. A rising trend has a positive effect on the nation's currency. The Current Account includes the previously reported Trade Balance (which covers trade of goods and services), so the market's focus for this indicator is on the income flows and unilateral transfers.

The Producer Price Index (PPI) Input measures the rate of inflation experienced by manufacturers when buying goods and services. A rising trend has a positive effect on the nation's currency. When manufactures pay more for good and services, they are likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. PPI is highly regarded, and at extremes will have a market impact equal to that of its CPI counterpart.

The Producer Price Index (PPI) Output measures the rate of inflation experienced by manufacturers when selling goods and services. Manufacturers are unlikely to pass Output inflation to the consumer, so it has much less market impact than its PPI Input counterpart.

Measures the total value of output produced by factories, mines, and utilities. A rising trend has a positive effect on the nation's currency because high levels of production are a sign of a strong economy. Industrial Production reacts quickly to the ups and downs of the business cycle and can predict manufacturing employment, average earnings, and personal income.

Some US financial markets will be closed in observance of Columbus Day.

Canadian financial markets will be closed in observance of Thanksgiving.

Measures the monthly change in value of new orders placed with machine manufacturers, excluding volatile orders.

Measures the mood of businesses that directly service consumers, such as barbers, taxi drivers, and waiters. A reading above 50 signals an improvement in sentiment.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

The British Retail Consortium (BRC) Retail Monitor measures changes in the value of retail sales from participating retailers.

Measures the number of new single-family homes or buildings constructed throughout the previous month.

Dallas Federal Reserve Bank President Richard Fisher will speak at an HSBC seminar in London.

Measures the monthly change in total value of inventory at the wholesale level.

Measures overall economic health by combining ten indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices, and interest rate spreads. The Leading Index is published monthly by The Conference Board, a private US research group, but traders tend to pay little attention because the components that make up the index are reported at an earlier date.

European Central Bank President Jean-Claude Trichet will give an introductory statement at the Quarterly Testimony before the Committee on Economic and Monetary Affairs of the European Parliament, in Brussels Belgium.

Measures the annual change in the value of new orders place for machine tools, which includes capital goods that are used in the production of many such products as motor vehicles and their parts, electrical products, aircrafts and their parts, and dyes and molds.

Gross Domestic Product (GDP) measures the total value of all goods and services produced by the economy. A rising trend has a positive effect on the nation's currency. GDP is the broadest measure of economic activity and considered to be the primary gauge of an economy's health. To foreign investors, a strong economy is viewed favorably because it spurs investment opportunities in the domestic stock and bond markets. A strong economy also persuades the central bank to raise interest rates in an attempt to control growth. All of this activity will increase demand for the nation's currency.

The remarks will be important from interest rate expectations.

Reserve Bank of Australia (RBA) Governor Glenn Stevens will speak to Australian business economists, in Sydney.

The New Housing Price Index (NHPI) measures monthly changes in the selling prices of new residential houses. The NHPI is used as the inflation measure of new home construction.

Richmond Federal Reserve President Jeffrey Lacker will speak about the regional economic outlook, in Washington. Audience questions expected.

The Fed discussion on inflation trends will be important.

The Federal Open Market Committee (FOMC) Meeting Minutes are a verbatim record of the committee's meeting held about two weeks earlier. The minutes give traders insight into the latest interest rate decision and policy shifts.

Measures the annual change in currency outstanding. Higher levels of currency are viewed as deflationary and can have a devaluing effect on the currency. M2+CD is calculated as follows:

M1 = currency in circulation + overnight deposits
M2+CD = M1 + Quasi-Money (Time Deposits etc.) + CDs

Measures the difference in value between imported and exported goods, services, income flows, and unilateral transfers. The Current Account is a comprehensive accounting of the nation's trade with other countries. A rising trend has a positive effect on the nation's currency. The Current Account includes the previously reported Trade Balance (which covers trade of goods and services), so the market's focus for this indicator is on the income flows and unilateral transfers.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

Strong employment gains would increase pressure for higher interest rates.

Measures the number of new jobs created in the previous month. A rising trend has a positive effect on the nation's currency. The number of new jobs being created is one of the most important indicators of the economy's health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.

Measures the percentage of the total work force that is unemployed and actively seeking employment. A falling trend has a positive effect on the nation's currency because unemployed persons are a drag on consumer spending. Although consumer spending is important, the unemployment rate usually draws little attention because traders view it as a lagging indicator.

Measures the mood of consumers in regard to economic conditions. The reading is derived from a monthly survey that asks respondents to evaluate the prospects for the economy in the future. Higher readings point to higher consumer optimism. When consumers are optimistic they tend to purchase more goods and services, which stimulates the economy.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

Oil imports should drop slightly, but the main impact will be on the September and October data.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

Measures the number of individuals who filed for unemployment insurance for the first time over the past week. A rising trend indicates a deteriorating labor market, which can weigh on the economy.

European Central Bank President Jean-Claude Trichet will host a press conference along with Axel Weber, President of the Deutsche Bundesbank and Sergey Ignatiev, Chairman of the Bank of Russia, following the third High-Level Eurosystem – Bank of Russia Seminar organised by the European Central Bank and the Deutsche Bundesbank, in Dresden Germany.

The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly increase in barrels of commercial crude oil held in inventory by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation and other economic forces.

Federal Reserve Governor Frederic Mishkin will speak about globalization, in New York. Audience questions expected.

Provides a look at how regional Federal Reserve branches view the economy in their area. It is produced two weeks before the monetary policy meetings of the Federal Open Market Committee (FOMC), who uses the book's anecdotal evidence to help determine the path for interest rates.

A monthly drop in sales would dampen expectations of higher interest rates

Measures the total value of sales at the retail level. A rising trend has a positive effect on the nation's currency. Consumer spending makes up a large portion of GDP, and Retail Sales makes up one-third of consumer spending. This indicator is usually the first of the month that relates to consumer behavior, making it susceptible to big surprises.

Domestic Capital Goods Price Index (CGPI) measures the rate of inflation experienced by manufacturers. The reading represents the monthly change in the average price of a fixed basket of goods and services purchased by manufacturers.

Measures the monthly rate of inflation for imported goods.

Chicago Federal Reserve President Michael Moskow will speak about the economic outlook and real estate to the Roosevelt University real estate institute, in Chicago. Audience questions expected.

Measures the total value of output produced by factories, mines, and utilities. A rising trend has a positive effect on the nation's currency because high levels of production are a sign of a strong economy. Industrial Production reacts quickly to the ups and downs of the business cycle and can predict manufacturing employment, average earnings, and personal income.

The central bank's governing body, the Bank of Japan (BOJ) Monetary Policy Committee, releases an Interest Rate Statement each month. The statement contains the latest decision regarding changes to the nation's short term interest rate ("overnight call rate"). A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

The Bank of Japan (BOJ) monthly Monetary Policy Report covers recent economic and financial developments that may effect the Bank's interest rate posture and open market operations.

Bank of Japan (BOJ) Governor Toshihiko Fukui will speak about the latest Interest Rate Statement at a press conference.

Measures the total value of sales at the retail level. A rising trend has a positive effect on the nation's currency. Consumer spending makes up a large portion of GDP, and Retail Sales makes up one-third of consumer spending. This indicator is usually the first of the month that relates to consumer behavior, making it susceptible to big surprises.

Gasoline sales are liable to produce an erratic overall sales figure

Derivative of Retail Sales that excludes the Automobile Sales component. Automobile Sales make up roughly 25% of Retail Sales, but they can be very volatile from month to month and can distort the picture. Retail Sales with the exclusion of this volatile component is thought to be a better indicator of the underlying trend in consumer spending.

Measures monthly sales of new motor vehicles by unit of sales and value, by type (passenger cars, commercial vehicles) and country of origin. Data is released for Canada and the ten provinces.

Measures the monthly rate of inflation for imported goods.

Confidence should remain firm

Measures consumer attitudes concerning both the present situation and future expectations. It's derived from a monthly 500-person survey conducted by the University of Michigan. Higher sentiment levels are a leading indicator of rising consumer spending, which accounts for a third of the economy.

Measures the monthly change in the average asking price of residential properties. Rightmove, the UK's leading property website, publishes this indicator in the same month the data is collected, making it a leading indicator of inflation in the housing sector.

European Central Bank (ECB) President Jean-Claude Trichet will speak at the Ludwig-Erhard-Lecture, in Berlin, Germany.

Manufacturing Shipments is a measure of the monthly change in value of Canadian manufacturers' shipments.

Measures the activity of manufacturers in New York State. The New York Fed conducts this monthly survey that asks roughly 175 manufacturing executives to rate their business on an assortment of indicators, concerning both the present situation and future expectations.

St. Louis Federal Reserve President William Poole will speak about economic data at the University of Memphis.

Bernanake will want to indicate a balanced, but firm inflation stance at this time.

Federal Reserve Chairman Ben Bernanke will speak about banking regulation at the American Banking Leaders forum annual meeting.

When Bernanke speaks traders look for clues on how he plans to adjust interest rates at the next Federal Reserve meeting. Because these clues can sometimes be obscure, the market tends to experience heavy volatility during his speeches.

San Francisco Federal Reserve President Janet Yellen will speak to the Hong Kong Association of Northern California. Audience questions expected.

Measures the monthly change in production activity in Japan's service industries. Traders watch this indicator closely, as a rising trend generally leads to higher overall economic growth.

Inflation pressures in the services sector will need to be watched closely.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

Like CPI, the Retail Price Index (RPI) reflects the monthly price change in consumer goods and services. RPI differs from CPI in that it only measures goods and services bought for the purpose of consumption by the vast majority of households.

Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment measures institutional investor sentiment. The monthly indicator reflects the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. For example, if 30% of participants expect the economic situation to improve within the next six months, 30% expect no change and 40% expect the economic situation to deteriorate, the ZEW Indicator of Economic Sentiment would take a value of -10. Thus, a positive number means that the share of optimists outweighs the share of pessimists.

Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment measures institutional investor sentiment. The monthly indicator reflects the difference between the share of investors that are optimistic and the share of analysts that are pessimistic. For example, if 30% of participants expect the economic situation to improve within the next six months, 30% expect no change and 40% expect the economic situation to deteriorate, the ZEW Indicator of Economic Sentiment would take a value of -10. Thus, a positive number means that the share of optimists outweighs the share of pessimists.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

Measures the total value of output produced by factories, mines, and utilities. A rising trend has a positive effect on the nation's currency because high levels of production are a sign of a strong economy. Industrial Production reacts quickly to the ups and downs of the business cycle and can predict manufacturing employment, average earnings, and personal income.

Lower energy prices will trigger a monthly drop

The Producer Price Index (PPI) measures the rate of inflation experienced by manufacturers. A rising trend has a positive effect on the nation's currency. When manufactures pay more for good and services, they are likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. PPI is highly regarded, and at extremes will have a market impact equal to that of its CPI counterpart.

The last two core readings have been much weaker than expected.

Derivative of the Producer Price Index (PPI) that excludes the Food and Energy items. Although Food and Energy can be very volatile from month to month, they play an important role in pass-through inflation. Therefore Core PPI usually has less impact than the overall PPI.

The Treasury International Capital (TIC) Report measures foreign demand for US debt and assets. Strong demand tends to strengthen the dollar as foreigners convert their money in order to purchase US securities.

The bank statement with the decision will be watched closely.

Canada's central bank, the Bank of Canada (BOC), releases an Interest Rate Statement eight times per year. The statement contains the latest decision regarding changes to the nation's short term interest rate ("overnight rate"), a brief report of the economic conditions that effected their decision, and most importantly, clues on what the next rate decision will be. A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

Measures the total value of output produced by factories, mines, and utilities. A rising trend has a positive effect on the nation's currency because high levels of production are a sign of a strong economy. Industrial Production reacts quickly to the ups and downs of the business cycle and can predict manufacturing employment, average earnings, and personal income.

Measures the percentage of available resources being utilized among factories, mines and utilities. A rising rate signals that resources are being utilized to their fullest capacity, which is a leading indicator of inflationary pressures.

The National Association of Home Builders (NAHB) Housing Market Index (HMI) combines several factors including present sales of new homes, sales of new homes expected in the next six months, and traffic of prospective buyers in new homes. The NAHB produces the index through a survey in which respondents are asked to rate the general economy and housing market conditions.

We realized we had this speech scheduled at the wrong time, it has been moved from 12pm EDT. Our apologies, we had a few problems with fed speeches today and yesterday.

Federal Reserve Governor Susan Schmidt Bies will speak about risk management at the American Banking Leaders conference, in Scottsdale Arizona.

The Bank of Japan (BOJ) Meeting Minutes are a verbatim record of the bank's meeting held about one month earlier. The minutes give traders insight into the latest interest rate decision and policy shifts.

Votes for an increase would reinforce expectations of a November rate rise.

The Bank of England (BOE) Meeting Minutes are a verbatim record of the bank's meeting held about two weeks earlier. The minutes give traders insight into the latest interest rate decision and policy shifts.

Measures the change in number of people claiming unemployment related benefits over the previous month.

The Average Earnings Index (AEI) measures the average wage, including bonuses, paid to employees. The indicator reading represents the change in the current quarter when compared to the same quarter in the previous year.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

The core data will be important for the Fed

Derivative of the Consumer Price Index (CPI) that excludes the Food and Energy items. Food and Energy account for roughly 25% of CPI, but they can be very volatile from month to month and can distort the picture. CPI with the exclusion of these volatile components is thought to be a better indicator of the underlying inflation trend.

A sharp drop would undermine US sentiment

Measures the number of new single-family homes or buildings constructed throughout the previous month.

Measures the number of new construction intentions. This data is a leading indicator for the construction industry since the issuance of a building permit is one of the first steps in the construction process.

Measures overall economic health by combining ten indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices, and interest rate spreads.

The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly increase in barrels of commercial crude oil held in inventory by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation and other economic forces.

The Reserve Bank of Australia (RBA) Bulletin is a monthly publication that contains economic commentary, feature articles, speeches and a set of statistical tables.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

Measures the total value of sales at the retail level. A rising trend has a positive effect on the nation's currency. Consumer spending makes up a large portion of GDP, and Retail Sales makes up one-third of consumer spending. This indicator is usually the first of the month that relates to consumer behavior, making it susceptible to big surprises.

Measures the amount by which public sector expenditure exceeds income for both current and capital transactions. The "public sector" is the part of the economy that includes central government, local government and public corporations. It gives insight into the state of consumer finances and can act as a leading indicator of consumer spending.

Measures the value of domestic securities, debt and assets purchased by foreigners in the previous month. Strong demand tends to strengthen the Canadian dollar as foreigners convert their money in order to purchase Canadian securities.

Measures the number of individuals who filed for unemployment insurance for the first time over the past week. A rising trend indicates a deteriorating labor market, which can weigh on the economy.

Measures overall economic health by combining ten indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices, and interest rate spreads. The Leading Index is published monthly by The Conference Board, a private US research group, but traders tend to pay little attention because the components that make up the index are reported at an earlier date.

Another negative reading would be a serious setback for the dollar.

Measures the mood of manufacturers in the Philadelphia Federal Reserve District. The Philadelphia Fed conducts a monthly survey that asks respondents to rate their business on an assortment of indicators, concerning both the present situation and future expectations. The survey results are converted into a general index of business and manufacturing conditions within the Philadelphia Federal Reserve district.

Adds data from the primary sector (including fishing, farming, forestry, mining, and manufacturing) to the Tertiary Industry Index.

Measures the number of new vehicles sold in the previous month. New vehicle sales are a good indicator of trends in consumer spending.

Measures the monthly rate of inflation for imported goods.

The manufacturing sector should be less of a drag for the third quarter.

Gross Domestic Product (GDP) measures the total value of all goods and services produced by the economy. A rising trend has a positive effect on the nation's currency. GDP is the broadest measure of economic activity and considered to be the primary gauge of an economy's health. To foreign investors, a strong economy is viewed favorably because it spurs investment opportunities in the domestic stock and bond markets. A strong economy also persuades the central bank to raise interest rates in an attempt to control growth. All of this activity will increase demand for the nation's currency.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

Derivative of the Consumer Price Index (CPI) that excludes the eight most volatile items, including fruit, fruit preparations and nuts, vegetables and vegetable preparations, mortgage interest costs, natural gas, fuel oil and other fuel, gasoline, inter-city transportation, and tobacco products and smokers' supplies. CPI with the exclusion of these volatile components is thought to be a better indicator of the underlying inflation trend and the central bank uses it as their primary inflation gauge, aiming to keep it at an annualized rate of 2%.

The Producer Price Index (PPI) measures the rate of inflation experienced by manufacturers. A rising trend has a positive effect on the nation's currency. When manufactures pay more for good and services, they are likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. PPI is highly regarded, and at extremes will have a market impact equal to that of its CPI counterpart.

European Central Bank (ECB) Executive Board Member Gertrude Tumpel-Gugerell will speak about European financial integration, in Finland.

Measures the total value of sales at the retail level. A rising trend has a positive effect on the nation's currency. Consumer spending makes up a large portion of GDP, and Retail Sales makes up one-third of consumer spending. This indicator is usually the first of the month that relates to consumer behavior, making it susceptible to big surprises.

Derivative of Retail Sales that excludes the Automobile Sales component. Automobile Sales make up roughly 25% of Retail Sales, but they can be very volatile from month to month and can distort the picture. Retail Sales with the exclusion of this volatile component is thought to be a better indicator of the underlying trend in consumer spending.

Measures the difference in value between imported and exported goods, services, income flows, and unilateral transfers. The Current Account is a comprehensive accounting of the nation's trade with other countries. A rising trend has a positive effect on the nation's currency. The Current Account includes the previously reported Trade Balance (which covers trade of goods and services), so the market's focus for this indicator is on the income flows and unilateral transfers.

Measures the monthly change in value of future deliveries to be provided by a producer to a third party. This leading indicator points to how busy producers will be in following months as they work to fill the orders.

The Confederation of British Industry (CBI) Industrial Trends Orders measures the level of new orders placed with manufacturers.

Measures the mood of manufacturers in the Richmond Federal Reserve District. The Richmond Fed conducts a monthly survey that asks respondents to rate their business on an assortment of indicators, concerning both the present situation and future expectations. The survey results are converted into a general index of business and manufacturing conditions within the Richmond Federal Reserve district.

A figure above 1.0% would maintain expectations of a further interest rate hike.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

The Food Price Index (FPI) measures the rate of price change of food and food services purchased by households. Food is the only commodity group of the Consumers Price Index (CPI) for which an index is prepared each month, all others are prepared quarterly.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

The core reading will be very important for the Reserve Bank.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

The IFO index should remain more resilient than the ZEW index.

The Information and Forschung (Ifo) Business Climate Index measures the mood of firms in manufacturing, construction, wholesale and retail. The index is derived from a monthly survey of over 7,000 firms where respondents are asked to give their assessments of the current business situation and their expectations for the next six months. The indicator reading is a transformed mean of the balances of the business situations and the expectations, and can fluctuate between extreme values of -100 (i.e., all responding firms appraise their situation as poor or expect business to become worse) and +100 (i.e., all responding firms assessed their situation as good or expect an improvement in their business).

A weak figure would increase pressure for ECB rate increases to be suspended.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

Measures the monthly change in the number of existing homes sold in the previous month. Existing Home Sales make up a larger portion of the housing market than New Home Sales, and therefore are an important indicator of trends in the housing market. This indicator is published monthly by the National Association of Realtors.

The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly increase in barrels of commercial crude oil held in inventory by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation and other economic forces.

The statement will be the main focus of attention.

The central bank's governing body, the Federal Open Market Committee (FOMC), releases an Interest Rate Statement eight times per year. The statement contains the latest decision regarding changes to the nation's short term interest rate ("fed funds rate"), a brief report of the economic conditions that effected their decision, and most importantly, clues on what the next rate decision will be. A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

The New Zealand dollar will be vulnerable to significant selling if rates are not increased.

New Zealand's central bank, the Reserve Bank of New Zealand (RBNZ), releases an Interest Rate Statement eight times per year. The statement contains the latest decision regarding changes to the nation's short term interest rate ("cash rate"), a brief report of the economic conditions that effected their decision, and most importantly, clues on what the next rate decision will be. A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

The Corporate Services Price Index (CSPI) measures the rate of inflation experienced by corporations. The reading represents the monthly change in the average price of a fixed basket of services purchased by corporations.

Measures overall economic health by combining ten indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices, and interest rate spreads. The Leading Index is published monthly by The Conference Board, a private US research group, but traders tend to pay little attention because the components that make up the index are reported at an earlier date.

Measures the mood of consumers in regard to economic conditions. The reading is derived from a monthly survey that asks respondents to evaluate the prospects for the economy in the future. GfK, a leading German market research company, publishes this indicator monthly. Higher readings point to higher consumer optimism. When consumers are optimistic they tend to purchase more goods and services, which stimulates the economy.

European Central Bank (ECB) President Jean-Claude Trichet will give the 2005 Annual Report at the plenary session of the European Parliament in Strasbourg, France.

Measures private consumption trends by considering new car sales, business conditions in the retail sector, the number of overnight hotel stays, the consumer sentiment index, and certain credit card transactions. UBS publishes this indicator monthly, leading official statistics by up to three months.

Measures the value of new purchase orders placed with domestic manufacturers for hard goods with a life expectancy of more than 3 years, such as automobiles, computers, appliances, and airplanes. A rising trend has a positive effect on the nation's currency. While most indicators tell what happened in the past, Durable Goods Orders paints a picture of the future. It uncovers how busy manufacturers will be in the months to come as they work to fill new orders, and a busy manufacturing industry is a positive sign that the economy is expanding.

Underlying capital spending wiill be an important indicator.

Derivative of Durable Goods Orders that excludes the Transportation components. Orders for aircraft occur in periodic burst and can severely distort the underlying trend, so traders tend to focus more on this indicator than the overall Durable Goods Orders.

Measures the number of individuals who filed for unemployment insurance for the first time over the past week. A rising trend indicates a deteriorating labor market, which can weigh on the economy.

Measures the monthly change in the number of newly constructed homes sold in the previous month.

A big deficit increase would be another blow for the New Zealand dollar

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers living in Tokyo, the nation's most populated city. The reading represents the monthly change in the average price of a fixed basket of goods and services purchased by consumers. Tokyo CPI tends to have a greater market impact than National CPI because it's the most recent reading on inflation. Tokyo is relatively small population to survey and therefore results are reported about a month before national results.

A high figure would strengthen the case for a November rate increase

This indicator is a derivative of the Tokyo Consumer Price Index (CPI) that excludes the volatile fresh food items. It tends to have a greater market impact because it's the most recent reading on inflation. Tokyo is relatively small population to survey and therefore results are reported about a month before national results.

Measures the annual change in sales value and volume of Japan's largest retailers.

Measures the annual change in currency outstanding. Higher levels of currency are viewed as deflationary and can have a devaluing effect on the currency . M3 Money Supply is calculated as follows:

M1 = currency in circulation + overnight deposits
M2 = M1 + deposits with agreed maturity up to 2 years + deposits redeemable up to 3 months' notice
M3 = M2 + repurchase agreements + money market fund shares/units and money market paper + debt securities issued up to 2 years

Measures overall economic activity through a qualitative business survey about developments in the recent past, the current situation and expectations for the next three to six months. Survey questions relate to production, orders and stocks of finished goods. The Swiss Institute for Business Cycle Research (KOF) publishes this indicator monthly.

Housing investment will be an important element

Gross Domestic Product (GDP) measures the total value of all goods and services produced by the economy. A rising trend has a positive effect on the nation's currency. GDP is the broadest measure of economic activity and considered to be the primary gauge of an economy's health. To foreign investors, a strong economy is viewed favorably because it spurs investment opportunities in the domestic stock and bond markets. A strong economy also persuades the central bank to raise interest rates in an attempt to control growth. All of this activity will increase demand for the nation's currency.

The Fed will be watching the core inflation data closely.

The Gross Domestic Product (GDP) Deflator measures the annualized quarterly implied rate of inflation for all economic activity. The deflator is used to calculate the difference between nominal and real GDP. The Federal Reserve takes special note of this indicator because it is the economy's broadest measure of inflation.

Measures consumer attitudes concerning both the present situation and future expectations. It's derived from a monthly 500-person survey conducted by the University of Michigan. Higher sentiment levels are a leading indicator of rising consumer spending, which accounts for a third of the economy.

Minneapolis Federal Reserve President Gary Stern will speak about perspectives on policy issues at the annual meeting of the Missouri Valley Economic Association, in Minneapolis Minnesota.

Measures the number of new construction intentions. This data is a leading indicator for the construction industry since the issuance of a building permit is one of the first steps in the construction process.

Measures the total value of output produced by factories, mines, and utilities. A rising trend has a positive effect on the nation's currency because high levels of production are a sign of a strong economy. Industrial Production reacts quickly to the ups and downs of the business cycle and can predict manufacturing employment, average earnings, and personal income.

Measures the monthly growth in outstanding consumer installment credit, including mortgages. It gives insight into the state of consumer finances and can act as a leading indicator of consumer spending.

Measures the mood of businesses in regard to economic expectations. It's derived from a monthly survey of 1,500 businesses conducted by the National Bank of New Zealand.

The Industrial Product Price Index (IPPI) measures the prices that manufacturers are paid as goods leave the plant gate. Unlike the CPI, the IPPI excludes indirect taxes and all the costs that occur between the time a good leaves the plant and the time the final user takes possession of it, including the transportation, wholesale, and retail costs.

The Raw Materials Price Index (RMPI) measures price changes for raw materials purchased by industries in Canada for further processing.

Richmond Federal Reserve President Jeffrey Lacker will speak about monetary policy, in Baltimore Maryland. Audience questions expected.

Measures the total value of consumer purchases of goods and services over the past month. Consumer spending makes up two thirds of GDP and therefore a rising trend generally strengthens a country's currency.

The Personal Consumption Expenditures (PCE) Price Index measures the rate of inflation experienced by consumers. Like CPI, it reflects the price change in consumer goods and services. PCE differs slightly from CPI in that it only measures goods and services targeted towards and consumed by individuals. Traders watch the PCE Price Index closely because it's the Federal Reserve's preferred consumer inflation indicator.

A core figure above 0.2% would revive underlying inflation fears.

Derivative of the PCE Price Index that excludes the Food and Energy items. Food and Energy account for roughly 25% of PCE, but they can be very volatile from month to month and can distort the overal picture. PCE with the exclusion of these volatile components is thought to be a better indicator of the underlying inflation trend.

The Manufacturing Purchasing Manager's Index (PMI) is a measure of purchasing manager sentiment throughout Japan. The report is released monthly by NTC Research on behalf of Nomura. The PMI has earned a reputation for accurately reflecting the true health of the Japanese manufacturing economy well ahead of official data. A rise in PMI indicates that business conditions in the manufacturing sector have improved.

Measures the percentage of the total work force that is unemployed and actively seeking employment. A falling trend has a positive effect on the nation's currency because unemployed persons are a drag on consumer spending. Although consumer spending is important, the unemployment rate usually draws little attention because traders view it as a lagging indicator.

Measures the annual change in the level of expenditure per household. Higher readings are a positive sign for the economy, as consumer spending accounts for half of Japan's GDP. Consumer spending makes up two thirds of GDP and therefore a rising trend generally strengthens a country's currency.

Measures the monthly change in the cash paid to jobholders.

The central bank's governing body, the Bank of Japan (BOJ) Monetary Policy Committee, releases an Interest Rate Statement each month. The statement contains the latest decision regarding changes to the nation's short term interest rate ("overnight call rate"). A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

Measures the annual change in the number of new single-family homes or buildings constructed.

Measures the monthly change in the average price for a house in the UK. It serves as a leading inflation indicator for the housing market.

Measures the total value of sales at the retail level. A rising trend has a positive effect on the nation's currency. Consumer spending makes up a large portion of GDP, and Retail Sales makes up one-third of consumer spending. This indicator is usually the first of the month that relates to consumer behavior, making it susceptible to big surprises.

The Business Climate Indicator measures the mood of firms in the Eurozone. The indicator is derived through a monthly survey of businesses. A high reading will indicate that the surveys points to a healthy cyclical situation. A rise in the indicator will point to an upswing in activity and an improvement in the business climate.

Measures the mood of consumers in regard to economic conditions. The reading is derived from a monthly survey that asks respondents to evaluate the prospects for the economy in the future. Higher readings point to higher consumer optimism. When consumers are optimistic they tend to purchase more goods and services, which stimulates the economy.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

Measures the mood of consumers in regard to economic conditions. The reading is derived from a monthly survey that asks respondents to evaluate the prospects for the economy in the future. GfK, a leading German market research company, publishes this indicator monthly. Higher readings point to higher consumer optimism. When consumers are optimistic they tend to purchase more goods and services, which stimulates the economy.

Gross Domestic Product (GDP) measures the total value of all goods and services produced by the economy. A rising trend has a positive effect on the nation's currency. GDP is the broadest measure of economic activity and considered to be the primary gauge of an economy's health. To foreign investors, a strong economy is viewed favorably because it spurs investment opportunities in the domestic stock and bond markets. A strong economy also persuades the central bank to raise interest rates in an attempt to control growth. All of this activity will increase demand for the nation's currency.

The Employment Cost Index (ECI) measures the monthly change in total employee compensation costs, including wages, salaries, and benefits. The ECI is the broadest measure of labor costs.

Measures the mood of consumers in regard to economic conditions. The reading is derived from a monthly survey that asks respondents to evaluate the prospects for the economy in the future. Higher readings point to higher consumer optimism. When consumers are optimistic they tend to purchase more goods and services, which stimulates the economy.

The National Association of Purchasing Managers (NAPM) Chicago Purchasing Manager's Index (PMI) measures the health of the Chicago business environment. It's derived from a monthly survey of purchasing managers where respondents indicate whether their organization's activity is higher than, the same as, or lower than the previous month for output, purchases, employment, inventories, orders, and prices. An index reading above 50 indicates sector expansion.

The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Measures the number of new construction intentions. This data is a leading indicator for the construction industry since the issuance of a building permit is one of the first steps in the construction process.

Measures the annual change in the number of cars, light trucks, sport utility vehicles, and vans sold. Motor vehicle sales are a good indicator of trends in consumer spending.

The Schweizerischer Verband für Materialwirtschaft und Einkauf (SVME) Purchasing Manager's Index (PMI) measures the health of the economy. It's derived from a monthly survey of purchasing managers where respondents indicate whether their organization's activity is higher than, the same as, or lower than the previous month for output, purchases, employment, inventories, orders, and prices. An index reading above 50 indicates sector expansion. PMI is believed to be a leading indicator because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance.

The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Measures the number of new jobs created in the previous month, excluding the farming industry. ADP, a leading provider of employment solutions for businesses, releases this indicator two days before the highly anticipated official Nonfarm Employment Change. ADP claims that this indicator has predictive value in regard to official statistics, but it hasn't yet gained acclaim from traders due to it's short history.

Measures the monthly change in value of new construction projects.

The Institute of Supply Management (ISM) Manufacturing Index measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Institute of Supply Management (ISM) Manufacturing Price Index measures the monthly inflation experienced by manufacturing organizations when purchasing materials and services. The ISM surveys 400 firms to produce this index.

The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly increase in barrels of commercial crude oil held in inventory by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation and other economic forces.

Federal Reserve Chairman Ben Bernanke will give a keynote address at the annual Opportunity Finance Network Conference, in Washington.

When Bernanke speaks traders look for clues on how he plans to adjust interest rates at the next Federal Reserve meeting. Because these clues can sometimes be obscure, the market tends to experience heavy volatility during his speeches.

Measures the number of cars, light trucks, sport utility vehicles, and vans sold in the previous month. Motor vehicle sales are a good indicator of trends in consumer spending.

Measures the annual change in Japan's outstanding currency in circulation, including banknotes, coins, and current account balances. It uncovers the level of additional currency being supplied by the Bank of Japan. An increasing monetary base generally results in higher inflation.

Measures the difference in value between imported and exported goods and services. A positive Trade Balance indicates that more goods and services were exported than imported. A rising trend has a positive effect on the nation's currency. As higher levels of exports are sold to the world, demand for the nation's currency is elevated as foreigners convert their native currency to purchase these exports. The Trade Balance also has a sizable impact on GDP because high demand for exports creates increased employment and production as domestic factories work to fill this foreign demand.

Measures the total value of sales at the retail level. A rising trend has a positive effect on the nation's currency. Consumer spending makes up a large portion of GDP, and Retail Sales makes up one-third of consumer spending. This indicator is usually the first of the month that relates to consumer behavior, making it susceptible to big surprises.

The Consumer Price Index (CPI) measures the rate of inflation experienced by consumers. A rising trend has a positive effect on the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation's currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.

Measures the percentage of the total work force that is unemployed and actively seeking employment. A falling trend has a positive effect on the nation's currency because unemployed persons are a drag on consumer spending. Although consumer spending is important, the unemployment rate usually draws little attention because traders view it as a lagging indicator.

The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the construction sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The European Central Bank (ECB) Governing Council releases an Interest Rate Statement each month. The statement contains the latest decision regarding changes to the euro area's short term interest rate ("minimum bid rate"). A rising trend has a positive effect on the nation's currency. Short term interest rates are the paramount factor in currency valuation; traders look at most other indicators merely to predict how interest rates may change in the future. What makes interest rates so important is that high rates attract foreigners looking for the best "risk-free" return on their money, which significantly increases demand for the nation's currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates in an attempt to bring prices down. This is what makes inflation-predicting indicators so important. Traders know that rising prices will lead the central bank to raise interest rates, which ultimately leads to a more valuable currency.

Markets will be looking for clues on 2007 policy

European Central Bank (ECB) President Jean-Claude Trichet will speak at a press conference following the Governing Council's meeting in Frankfurt. The ECB Interest Rate Statement is void of commentary, so traders usually focus on Trichet's post-release press conference for clues about future rate decisions. Because these clues can sometimes be obscure, the market tends to experience heavy volatility during this press conference.

Measures the annualized quarterly growth in labor efficiency for producing goods and services outside the farming sector. A rising trend indicates future inflationary pressures as manufacturers raise prices in response to an at-capacity factory environment.

A strong figure would increase wage inflation fears.

Measures the annualized quarterly growth in the cost of labor. A rising trend indicates inflationary pressures in the labor market.

Measures the number of individuals who filed for unemployment insurance for the first time over the past week. A rising trend indicates a deteriorating labor market, which can weigh on the economy.

Measures the value of new purchase orders placed with domestic manufacturers for durable and non-durable goods. Factory Orders tend to have a low impact because it reports much of the same information contained in the Durable Goods Orders report released over a week earlier.

Dallas Federal Reserve President Richard Fisher will address the New York Association for Business Economics, in New York.

Federal Reserve Governor Susan Schmidt Bies will speak about the economic outlook, in Des Moines Iowa. Audience questions expected.

Japanese financial markets will be closed in observance of Culture Day. Culture Day (bunka no hi) is a day for promotion of culture and the love for freedom and peace. On this day, schools and the government award certain persons for their special, cultural activities.

The Services Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Services Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

Measures the percentage of the total work force that is unemployed and actively seeking employment. A falling trend has a positive effect on the nation's currency because unemployed persons are a drag on consumer spending. Although consumer spending is important, the unemployment rate usually draws little attention because traders view it as a lagging indicator.

Measures the percentage of the total work force that is unemployed and actively seeking employment. A falling trend has a positive effect on the nation's currency because unemployed persons are a drag on consumer spending. Although consumer spending is important, the unemployment rate usually draws little attention because traders view it as a lagging indicator.

The manufacturing performance will be watched closely

Measures the number of new jobs created in the previous month. A rising trend has a positive effect on the nation's currency. The number of new jobs being created is one of the most important indicators of the economy's health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.

Construction employment could have an important impact. Revisions will also need to be watched closely.

Measures the number of new jobs created in the previous month, excluding the farming industry. A rising trend has a positive effect on the nation's currency. The number of new jobs being created is one of the most important indicators of the economy's health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.

Measures the percentage of the total work force that is unemployed and actively seeking employment. A falling trend has a positive effect on the nation's currency because unemployed persons are a drag on consumer spending. Although consumer spending is important, the unemployment rate usually draws little attention because traders view it as a lagging indicator.

The earnings data will be important for the Fed

Measures the monthly change in the hourly rate paid to the jobholders indicated in nonfarm payrolls.

Any figure near 50.0 would hurt the dollar.

The Institute of Supply Management (ISM) Non-Manufacturing Index measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of economic performance.

The Institute of Supply Management (ISM) Non-Manufacturing Price Index measures the monthly inflation experienced by non-manufacturing organizations when purchasing materials and services. The ISM surveys 400 firms to produce this index.

Federal Reserve Governor Donald Kohn will speak to the American Bar Association, in Washington. Audience questions expected.

Federal Reserve Governor Randall Kroszner will speak about sovereign finance risks, in Mexico City. Audience questions expected.

Measures rate of inflation in the wages, salaries and benefits paid to civilian workers. A rising trend has a positive effect on the nation's currency. When businesses pay more for labor, they are likely to pass the higher costs to the consumer, so traders view wage inflation as a leading indicator of consumer inflation.

The Services Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

The Services Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the services sector, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation's currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

Measures the total value of output produced by factories, mines, and utilities. A rising trend has a positive effect on the nation's currency because high levels of production are a sign of a strong economy. Industrial Production reacts quickly to the ups and downs of the business cycle and can predict manufacturing employment, average earnings, and personal income.

Manufacturing Production, like Industrial Production, measures the total output of factories, mines, and utilities. The difference is that it only measures the 13 sub-sectors of Industrial Production that relate directly to manufacturing. Manufacturing industries make up about 80% of total Industrial Production.

The Producer Price Index (PPI) measures the rate of inflation experienced by manufacturers when purchasing goods and services. A rising trend has a positive effect on the nation's currency. When manufactures pay more for goods and services, they are likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. PPI is highly regarded, and at extremes will have a market impact equal to that of its CPI counterpart.

Measures the value of new purchase orders placed with domestic manufacturers for hard goods with a life expectancy of more than 3 years, such as automobiles, computers, appliances, and airplanes.