Forex Daily Outlook – May 11 2010

U.S. IBD/TIPP Economic Optimism is expected to rise and the Wholesale Inventories indicate a rising demand in the market while Britain’s Manufacturing Production and Industrial Production predicted to drop reflecting market deceleration. Here is today’s review. 

In the US, IBD/TIPP Economic Optimism is expected to rise in 0.5 points bringing more optimism to the market after Non -Farm Employment Change showed a rise of 35000 in the number of employed people in the market.

Later in the US, Wholesale Inventories released monthly is foreseen a drop of 0.1%   from 0.6% in the previous month which is another good sign for the market’s activity since a decline in Wholesale Inventories indicates that retailers are buying more goods to meet strong or rising demand.

For more on USD/CAD, read the Canadian dollar forecast.

In Europe German Final CPI released monthly, measuring the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of Inflationary pressures is expected to remain of  -0.1%  indicating deflation and the German Wholesale Price Index is also heading for a drop from 1.3% to 0.3% following the same tendency.

More in Europe, Switzerland’s SECO Consumer Climate is expected to edge up by 9 points from -7 in the previous month indicating a good business climate and a favorable insight on future consumer spending.

Finally in Europe, Deutsche Bundesbank President Axel Weber, delivers a speech about exit strategies in financial politics at the CER-ETH/KOF lecture, in Zurich. And will have impact on Eurozone’s key interest rates and future monetary policy;

For more on the Euro, read the EUR/USD forecast and Casey Stubbs’ latest analysis.

In Great Britain, Manufacturing Production is predicted to drop by 1% from the rise experienced in the previous month, indicating poor industrial production. 

More in Great Britain, Industrial Production is also expected to fall to 0.3% from 1.0% in the previous month indicating market deceleration.

Read more about the Pound in the GBP/USD forecast.

That’s it for today. Happy forex trading!

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