Swiss Unemployment Rate s.a. (JUN) (05:45 GMT, 01:45 EST)
Consensus:  3.3%
Previous: 3.4%
 
Outlook: The Swiss unemployment rate is expected to have continued its steady contraction to a seasonally-adjusted 3.3 percent of the available labor pool in June.  Despite higher interest rates and rising energy costs, the Swiss economy is still experiencing booming growth.  Companies are investing in expansion and that includes more skilled labor.  If the hiring boom can be sustained through firmsââ,¬â"¢ export earnings, the scene looks very good for the Swiss National Bank to continue is quarterly rate hikes.  Central bank policy makers have already made statements hinting to the fact that their monetary policy is too loose and tightening will continue.  Since employment is often a leading indicator for consumer spending, one of the largest contributors to GDP, the steady pace of a falling jobless rate could be influential in ushering in a shift to 50 basis point hikes come September.

Previous:  As expected, unemployment in Switzerland held at its lowest rate in three years during May at a seasonally-adjusted 3.4 percent.  Specifically for the period the number of job openings rose 1,482 to 12,370.  Strong economic expansion and a booming export market is spurring companies to hire more workers.  As more workers are being hired in response to growing profits, both businesses and citizens are can effectively turn their francs back into the economy and further accelerate growth.  It is expected that the Swiss economy will grow faster this year than the original Swiss National Bank forecast of 2 percent.  Both of these factors, falling unemployment and solid economic growth, are leading to a very hawkish stance within the SNB.  The SNB raised interest rates following this report at their meeting on June 15 and further increases are widely anticipated.

German Industrial Production (MAY) (10:00 GMT, 06:00 EST)
                  (MoM)  (YoY)
Consensus:  0.6%  5.4%
Previous:      1.6%  4.6%

Outlook:  German industrial production is expected to have risen 0.6 percent in May from the month prior, while the annualized gauge is expecting a 5.4 percent pace.  Although the monthly growth figure is not quite as high as the surge seen during April, export demand is expected to have contributed the respectable rise in May.  Uniquely, Germany has retained the title as the worldââ,¬â"¢s leading exporter of goods, even ahead of China, and their products (especially automobiles) are becoming more and more popular in markets around the world.  With increased factory activity is expected to come a spur in hiring and domestic investment, which in turn will allow for stronger domestic spending.

Previous:  Industrial production in Germany rose a seasonally-adjusted 1.6 percent, the most in two years, during April.  This brought year-on-year gains to 4.6 percent.  Exports are rising faster than expected and are helping the German economy cope with and overcome pressures from higher oil prices and interest rates.  Based on the heavy foreign demand for German products, the DIW institute says that industrial production should surge the most since 2000 this year.  The accelerating growth in production spurred optimism that companies will step up hiring thus improving the depressing unemployment rate and fueling consumer spending that will domestically encourage economic growth.

Canadian Net Change In Employment (MAY) (11:00 GMT, 7:00 EST)
Consensus:   10,000
Previous:   96,700

Outlook:  The Canadian unemployment rate is expected to have risen to 6.2 percent in June, up 0.1 percent after matching a record low in the month prior.  June is predicted to record the smallest gain in employment this year, by adding only 10,000 jobs.  This contrasts the record pace in May which initially spurred speculation that the Bank of Canada will reconsider its position that economy can sustain growth higher than 3 percent without suffering inflation.  Furthermore, last monthââ,¬â"¢s release is due only 4 days before the policy body meets again.  With investors expecting at least one more rate hike by the end of the year, the real question for the ever shifting FX market is whether it will be July or not.  If these numbers come in soft as expected, the BoC will find it easier to maintain its dovish stance, writing off May's extraordinary numbers as a temporary spike in hiring.

Previous:  Canada's jobless rate dropped to 6.1 percent in May, matching a record low set in 1974.  Employers hired 96,700 workers during the month, with the bulk of it done by oil companies and banks.  Most of the hiring was of full-time employees, with the measure of part-time workers actually reverting to negative territory.  Statistically, job growth was almost 5 times higher than economists had expected.  This large swell in payrolls has combined with rising consumer spending as well as higher commodity prices to make the Canadian economy one of the strongest, through both domestic and export channels.  The continually rising price of oil is prompting oil producers to hire more workers as they expand operations.

US Change In Nonfarm Payrolls (JUN) (12:30 GMT, 08:30 EST)
Consensus:  175,000
Previous:  75,000

Outlook:  United State's unemployment is expected to once again print a low 4.6 percent in June.  Recent releases however that relate to the health of the employment sector have been mostly promising.  Over the past few days, two proprietary job reports have reported solid numbers for June.  First, hitting the news wires Wednesday was the fledgling ADP indicator, which reported an additional 368,000 hires for the month.  This compares to the consensus among economists for a 175,000 print in non-farm payrolls Friday.  The next figure to cast a vote for a surprisingly strong BLS jobless figure last month was the online Monster Index, which ticked 4 points higher to a 171 read.  Perhaps the most convincing data for stronger than expected employment numbers, as it is compiled by the government, was jobless claims. Initial claims averaged 307,000 people over the five weeks in June compared to an average 335,000 the month before when payrolls grew only 75,000.  Then again, not every indicator is supporting a boom in employment.  A component read of the ISM services survey showed a large jump in its respective job read, which has not been seen since July 2004 when payrolls fell far short of the general market prediction.

Previous:  Payrolls grew 75,000 in May, leaving the jobless rate steady at the historically low 4.6 percent.  Jobs were created in the service and mining industries, but that was offset by a loss in retail and manufacturing sectors.  This may be a sign that the Fed's attempts to cool the economy and inflation with its streak of rate hikes may finally be taking their toll on the labor market.  Overall unemployment remained very low, but fewer and fewer jobs are being added to the economy as companies feel the combined pressure of higher borrowing costs and rising energy prices that leaves little capital for increasing human resources.  A decline in employment was specifically seen among temporary workers, which could have been a signal of a softening employment market as temp employees are generally the first to be hired or fired when confidence changes.

Richard Lee is a Currency Strategist at FXCM.