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Forex Daily Analysis – January 28 2009

Wednesday, January 28th, features a rate decision by the Federal Reserve. A cur isn’t expected, but the statement will be of interest to traders. Also New Zealand will feature a rate decision, and in Germany there are some important releases today.

For those trading the Aussie, the quarterly CPI will be published at 00:30 GMT. It’s expected to fall by 0.4%. The  Trimmed Mean CPI is expected to rise by 0.8%.

Later in the day, the German states will start published the Prelim CPI. Altogether, the German CPI is expected to fall by 0.3%, and will affect EUR/USD.

The big event of the day is the FOMC statement. After slashing the interest rate to a record low of 0.25%, Ben Bernanke isn’t expected to make any move today. It can’t go lower.

The  Federal Funds Rate is expected to stay put, and forex traders will listen to the words in the FOMC statement.  Talks about Quantitative Easing and the rhetoric will impact the market. This is due at 19:15 GMT.

Also New Zealand will issue a new interest rate. The  Official Cash Rate is expected to fall from 5% to 4%. New Zealand has the highest interest rate in the West, and and the RBNZ has room for more rate cuts.

Kiwi traders should also notice the  RBNZ Rate Statement which will accompany the expected rate cut. They should also pay close attention to the Trade Balance, expected to stand at -100M.

That’s it! Not many figures today, but very important economic indicators.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.