U.S. Shares Plunge on Weak Employment Data!

The leading shares and bourses in the U.S. fell last week, as worsening labor markets show just how dismal the economic situation in the U.S. and Europe currently is. The Dow Jones tumbled 190.04 points, or 1.4%, to 13,038.27. The S&P shed 2.4% to 1,369.10. General Motors Co. slid 5% to $22.36. Apple Inc. and other leading stocks also fell last week.

The Japanese Yen climbed against all of its major peers on Friday in response to U.S. payrolls rising less than forecast. This was also before elections in Europe, which could radically change the political makeup of the Eurozone.

Commodities lost ground during Friday’s session on rising risk appetite. The leading losers were Crude Oil and Natural Gas.

Going short on the Dow Jones, Crude Oil and EUR/USD binary options are the most popular trades for the coming week.

This week’s main events – Monday May 7 – Friday May 11:

Monday May 7:

• 07:15 GMT CHF  m/m – The publication measures the change in the price of goods and services at the retail level. This is important, as consumer prices account for a majority of overall inflation. The figure is expected to be 0.2%, which could certainly drive the Swiss Franc lower during Monday’s trading session.

• 12:30 GMT CAD  Building Permits m/m – This is the change in the value of new building permits issued. The figure is expected to drop to 3.3% as opposed to the previous figure of 7.5%. This could lead to a bearish Canadian Dollar this Monday.

Wednesday May 9:

• 23:50 GMT JPY  Current Account – This is a highly important data release from the Japanese economy that you will need to follow closely. It measures the difference in value between imported and exported goods, services, income flows and unilateral transfers during March.

Thursday May 10:

• GMT AUD  Unemployment Rate – The release is highly important in connection to Australian economic health. The publication is a measurement of the percentage of the total workforce that is unemployed and actively seeking employment during April. The figure is set to increase to 5.3%, reiterating that the Australian economy is weakening.

• 11:00 GMT GBP  Official Bank Rate – The British interest rate is expected to be kept unchanged at 0.5%. Make sure to follow this release closely on Thursday.

• 12:30 GMT CAD  Trade Balance – If you are someone who trades the CAD, then pay close attention to this economic release. It is the difference in value between imported and exported goods during March. The result is forecasted to be 0.8B. This is set to lend a helping hand to the Canadian Dollar this coming Thursday.

• 12:30 GMT USD  Unemployment Claims – The figure is forecast to rise to 372K, which is a strong signal that the U.S. is far from being in an economic recovery. Therefore, the USD could slide later on this coming week.

• 13:30 GMT USD  Fed Chairman Bernanke Speaks – Ben Bernanke’s speeches always lead to high market volatility. He has more power than anyone else with regards to the strength of the greenback. He is expected to speak about the current state of the U.S. economy and future monetary policy.

Friday May 11:

• 08:30 GMT GBP  PPI Input m/m – This is the change in price of goods and raw materials purchased by manufacturers. The figure is set to decline by -0.8%. This is highly likely to lead to a bearish GBP.

• 13:55 GMT USD  Prelim UoM Consumer Sentiment  – Financial confidence is a leading indicator of consumer spending, accounting for a majority of overall economic activity. A rise to the 76.5 level is expected during Friday’s trading session.