Forex Daily Outlook – March 2nd 2010
The week began with a strong start, especially for the British Pound, which was knocked down. Today, more important events are awaiting us with rate decisions in Australia and Canada being in the limelight. Let’s see what’s up for today.
Australian action starts the day: Retail Sales made a nice leap last month, rising by 2.2%, but now they’re expected to rise by only 0.7%. In the housing sector, a disappointment came from last month’s dropping Building Approvals. They’re predicted to rise by 0.8% this time. Now for the main dish:
The Australian central bank is expected to raise the interest rate to 4%. This will be the fourth rate hike since the financial crisis broke out. Australia is the first and only Western country to raise the rates. After a surprising pause last month, Glenn Stevens is expected to resume the moves. Also note the tone of the RBA Rate Statement regarding future moves.
For more on the strong Australian dollar, read the AUD/USD forecast.
In Switzerland, the GDP is expected to rise by 0.4%, more than 0.3% in Q3. This might stop the Swissy’s retreat.
In Britain, Construction PMI is expected to edge up from 48.6 to 48.9 points, still under the critical 50 point mark. Yesterday’s British figures were OK, but the news hurt the Pound.
For more on the Pound’s (low) technical levels, read the GBP/USD forecast.
The Euro is weaker, but hanging on to the critical 1.3423 level, helped by a drop of the unemployment rate below 10%. Today will see the CPI Flash Estimate which is expected to show an annual rise of 1% in prices.
Also note the European producer prices. PPI is expected to jump by 0.7%, significantly more than last month’s 0.1% rise.
For more technical levels, read Casey Stubbs’ latest analysis and for events, check out my EUR/USD forecast.
The Canadian dollar enjoyed an excellent GDP result yesterday: the economy grew by 0.6% in December 2009, and at an annual rate of 5% in Q4. This helped the loonie. And today there’s another test.
The Bank of Canada will probably leave the Overnight Rate unchanged at 0.25%. The focus will be (as usual) on the BOC Rate Statement. Mark Carney has clearly stated that the timing for raising the rates is June 2010, which is now only three months away. Will he talk about an earlier schedule? It didn’t happen before…
Check out the USD/CAD forecast for technical levels.
That’s it for today. Happy forex trading!
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Forex Daily Outlook – February 22nd 2010
There’s a busy week ahead, but Monday’s calendar is quite light. Here’s an outlook for the few events and the factors that will impact trading.
Ben Bernanke shocked the financial markets near the end of last week with a hike of the interbank discount rate. While Federal Reserve officials downplayed this move and announced it after [...]
Forex Daily Outlook – February 4th 2010
Very busy day ahead: rate decisions in Britain and Europe are the highlights in a crowded calendar, one day before the Non-Farm Payrolls.
Things are shaky in the forex market. The dollar weakened during the week but then erased the losses after the ADP Non-Farm Payrolls was good. The major pair, EUR/USD is currently holding steady. [...]
Forex Daily Outlook – January 19th 2010
After a holiday in the US, the market return to full gear with a busy day. We have American TIC Long-Term Purchases, a rate decision in Canada, and major events in Britain and Europe. Let’s see what’s up for this long day.
Prices in Britain have been picking up, and this could strengthen the Pound bulls. [...]
Forex Weekly Outlook – January 18-22
After a slow start to the week due to Martin Luther King’s day, we have quite a busy schedule: an important British release every day, with employment numbers being the peak, a rate decision in Canada, Chinese GDP, American housing figures and lots more. Let’s see what’s awaiting us in the third week of January.
Apart [...]
Forex Daily Outlook – January 11th 2010
In the wake of the Non-Farm Payrolls, the week starts without any American releases, but with many other indicators around the world, with a big bunch in Canada. Let’s see what expects traders at the beginning of the new week:
No American indicators are released today, but a speech by FOMC member James Bullard might shake [...]
Canadian CPI Saves Loonie from the Greenback Storm
Canadian consumer prices rose more than expected. This might lead to an early rate hike in Canada, and helps the Canadian dollar weather the huge strength of the American dollar that was a late reaction to the Fed decision. Contrary to other currencies, USD/CAD didn’t breach a technical barrier and is ready to move in [...]
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