The dollar retraced some of its losses yesterday. Today, the greenback awaits inflation figures which will probably not convince Bernanke to shorten the extended period of low interest rates. There are many more events around the world. Let’s review them:
Australia’s MI Leading Index is expected to continue rising – this figure is based on good figures that have already been released. The Wage Price Index, a quarterly number, is predicted to rise by 0.7% this time, less than 0.8% last month.
For more on the Aussie, read the Australian dollar forecast.
After the European surprised with a big surplus, the Current Account, which consists of the trade balance and also services and cash flow, is also expected to be positive, and show a surplus of 0.6 billion euros. Also note a speech by Jean-Claude Trichet, the president of the ECB.
In Britain, one day after the positive inflation figures, the MPC Meeting Minutes are released. We’ll get to see how the members voted on the surprising decision for a small expansion of the QE program. Later in Britain, CBI Industrial Order Expectations are expected to improve but remain negative – from -51 to -47.
For more on cable, read the British Pound forecast.
Canadian CPI is expected to rise by 0.2% after being unchanged last month. Core CPI, no less important, is predicted to remain unchanged. A rate hike isn’t expected soon in Canada. For more on the loonie, read the Canadian dollar forecast.
90 minutes after Canada, American CPI is released. The low interest rates and the weak dollar are said to push inflation, but this opinion isn’t popular. CPI is expected to rise by 0.2%, like last month, while Core CPI is expected to rise by 0.1%, half of last month’s rise.
At the same time, 13:30 GMT, housing figures are due: Building Permits are predicted to edge up from 570K to 590K, and Housing Starts are predicted to rise from 590K to 610K. While more houses are built in America, the prices aren’t really rising yet.
That’s it for today. Happy forex trading!