Big day today in forex trading: rate decisions from Europe and Britain are in the limelight. There’s lots more. Take a deep breath…
Australia starts the day in a very strong manner: Employment Change is predicted to fall by 18.8K after falling by 21.4K last time. The Unemployment Rate is predicted to rise from 5.8% to 6%. Looking at previous months, there could well be a surprise.
For more on the Aussie, check out the AUD/USD Outlook.
In Switzerland, SECO Consumer Climate is predicted to fall from -38 to -42. The Swiss economy is dragging its legs.
In Europe, German Factory Orders will be a prelude to the rate decision. After rising by 4.4% last time, it’s expected to print a more modest rise, only 0.6%.
Jean-Claude Trichet is expected to leave the European Minimum Bid Rate unchanged at 1%. There’s always a chance of surprise from Mr. Trichet, but this time it’s unlikely. Traders will focus on the ECB Press Conference, due at 12:30, with the American Unemployment Claims. EUR/USD will rock during this time.
The rate decision in Britain is due at 11:00, and also here, leaving the Official Bank Rate at the historic low of 0.5% is the consensus. The BoE has a Quantitative Easing program. Will they shut it down? Expand it? This is what traders will focus on Mervyn King’s MPC Rate Statement.
For more on GBP/USD, check out the British Pound Outlook.
As aforementioned, American Unemployment Claims are due at 12:30 GMT, serving as another prelude for Friday’s Non-Farm Payrolls. Jobless claims are predicted to stay stable, at 587K.
At the exact same time, Canadian Building Permits are released. After leaping by 14.8%, they’re predicted to fall this time, by 1.2%. USD/CAD will rock at this time as well…
For the loonie, check out the Canadian Dollar Outlook.
That’s it for a very busy day. And on Friday, there’s Non-Farm Payrolls, king of forex 🙂
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