Home Forex Daily Outlook – January 5th 2010
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Forex Daily Outlook – January 5th 2010

The second day of 2010 is also rather busy, with American Pending Home Sales and Factory Orders, as well as German employment figures. Let’s see what’s up for today:

The dollar’s weakness on Monday wasn’t enough for major breakouts. Possible breakouts were probably stopped after ISM Manufacturing PMI rose more than expected in the US. I was  interviewed  on Forex TV and spoke about this release, as well as upcoming events later on this week.

German Unemployment Change has fallen in the past months, beating economists’ expectations and helping the Euro. It’s expected to drop again, according the same people, and it sure can surprise.

Later in Europe, consumer prices are expected to rise: the CPI Flash Estimate is predicted to rise by 0.9%, showing that prices in Europe don’t always fall. Last month, prices rose by 0.5%. For more on the Euro, check out the EUR USD forecast.

In Britain, Construction PMI will probably rise from 47 to 47.6 points. Manufacturing PMI surprised with a rise yesterday. The British Pound is still struggling.

For more on the Pound, read the GBP USD forecast.

In the US, FOMC member Thomas Hoenig will give a speech about government bailouts, and could say something that will shake the markets.

Later in the US, Pending Home Sales are predicted to fall by 2.3%, after rising 9 consecutive times, and surprising economists. Somewhat overshadowed by the housing figure, Factory Orders are predicted to continue the steady rise and expand by 0.5% this time.

In Canada, the RMPI (Waw Materials Price Index) is predicted to rise by 1.2%, half of last month’s rise. The Canadian dollar is showing strength, but still isn’t able to breach the 1.04 resistance line. The breakout attempts are unsuccessful. For more on the USD/CAD, check out the Canadian dollar forecast.

Australia’s HIA New Home Sales will probably show some growth after dropping by 6% last month. The AIG Services Index is predicted to remain above 50, marking expansion in the Australian services sector.

For more on the Aussie, read the  AUD USD forecast.

That’s it for today. Happy forex trading!

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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.