US Exports Expected To Rise In 2013

• French Manufacturing PMI (Fra, 08:00 GMT)

• German Manufacturing PMI (Ger, 08:30 GMT)

• Manufacturing PMI (EU, 09:00 GMT)

• BBA Mortgage Approvals (GB, 09:30 GMT)

• CBI Distributive Trades Survey (GB, 11:00 GMT)

• Initial Jobless Claims (U.S, 13:30 GMT)

Exports from the U.S. are set to pick up in 2013 after slumping last quarter as global growth strengthens from Asia to Latin America, giving American manufacturers a boost. Industries in which U.S. companies have a competitive advantage, including agriculture, medical supplies and aviation, will probably benefit the most from improving global demand, said Gary Hufbauer, a senior fellow at the Washington-based Peterson Institute for International Economics.

China’s manufacturing is expanding at the fastest rate in two years, according to a private survey of companies, bolstering prospects that economic growth will accelerate for a second straight quarter. he preliminary reading of a Purchasing Managers’ Index (SHCOMP) was 51.9 in January, according to a statement from HSBC Holdings Plc and Markit Economics today.

The International Monetary Fund cut its global growth forecasts and now projects a second year of contraction in the euro region as progress in battling Europe’s debt crisis fails to produce an economic recovery. The world economy will expand 3.5 percent this year, less than the 3.6 percent forecast in October, the Washington-based IMF said today in an update of its World Economic Outlook report. While the fund projects growth this year increasing from last year’s 3.2 percent pace, it expects the 17-country euro area to shrink 0.2 percent in 2013, instead of growing 0.2 percent as forecast in October.

EUR/USD: The EUR/USD was trading at 1.33194 at the time of writing as investors jumped on the sidelines ahead of eurozone data, which is likely to bring some fluctuations intra trade. Investors will have to monitor the French Manufacturing PMI (Forecast: 45.1 – Previous: 44.6), the German Manufacturing PMI (Forecast: 46.8 – Previous: 46.0) and the Manufacturing PMI (Forecast: 46.6 – Previous: 46.1) to get some visibility.

Better than expected data in the euro area will push the pair up but investors should be prudent after the International Monetary Fund cut global growth forecasts and projected a second year of contraction in the currency bloc. On the other hand, the U.S will release its key economic data the Initial jobless claims, which is expected to increase to 355K compare to 335K registered last week.

Other data which will be released in the U.S are the Manufacturing PMI, the Bloomberg Consumer Confidence, the CB Leading Index (MoM), the Crude Oil Inventories, the Gasoline Inventories and the KC Fed Manufacturing. A wait and see approach will be a good strategy on the pair. The resistance level is at 1.33980 and the support level is at 1.32410.

USD/JPY: The yen weakened as signs of strengthening manufacturing in China damped demand for the relative safety of Japan’s currency, while North Korea’s threat to test nuclear weapons sapped appetite for the region’s assets. The USD/JPY was trading higher at 89.294 at the time of writing after Japan today posted a bigger-than-estimated trade deficit and data tomorrow may show consumer prices fell the most since August.

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Events likely to affect the pair today are the French Manufacturing PMI (Forecast: 45.1 – Previous: 44.6), the German Manufacturing PMI (Forecast: 46.8 – Previous: 46.0) and the Manufacturing PMI (Forecast: 46.6 – Previous: 46.1) in the eurozone. Later in the day, the U.S will release its key economic data the Initial jobless claims, which is expected to increase to 355K compare to 335K registered last week.

Other data which will be released in the U.S are the Manufacturing PMI, the Bloomberg Consumer Confidence, the CB Leading Index (MoM), the Crude Oil Inventories, the Gasoline Inventories and the KC Fed Manufacturing. All these data will affect sentiments on the market. In addition, the International Monetary Fund cut global growth forecasts and projected a second year of contraction in the currency bloc; this news may weigh on market intra trade. The resistance level is at 90.091 and the support level is at 88.300.

Gold: Gold was trading lower at 1678.25 at the time of writing after the International Monetary Fund decision to trim global growth estimates for this year sparked dollar demand as well, which sent gold falling as the two assets tend to trade inversely from one another. In addition, the U.S. dollar rose when the Bank of Canada left rates unchanged and gave a rather chilly assessment of its economy, which sparked demand for the dollar.

Events likely to bring some volatility on the market are the French Manufacturing PMI (Forecast: 45.1 – Previous: 44.6), the German Manufacturing PMI (Forecast: 46.8 – Previous: 46.0) and the Manufacturing PMI (Forecast: 46.6 – Previous: 46.1) in the eurozone.

Later in the day, the U.S will release its key economic data the Initial jobless claims, which is expected to increase to 355K compare to 335K registered last week. Other data which will be released in the U.S are the Manufacturing PMI, the Bloomberg Consumer Confidence, the CB Leading Index (MoM), the Crude Oil Inventories, the Gasoline Inventories and the KC Fed Manufacturing.

Investors should remain cautious on the commodity as according to Morgan Stanley, Gold will rally this year and into 2014 as U.S. Federal Reserve policy makers will probably maintain asset purchases for two more years to buttress the recovery of the largest economy. Market participant should keep an eye on the latest developments regarding the U.S Debt ceiling. The resistance level is at 1694.87 and the support level is at 1666.68.