Home Forex Daily Outlook – April 22nd 2010
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Forex Daily Outlook – April 22nd 2010

A very busy day expects forex traders, Flash Manufacturing PMI and Services PMI influence on Europe; let’s see what’s awaiting us today.

Group of Twenty (G20); while it’s not an institution, the G20 is an influential global policy-making body operating at the highest level, and their initiatives and policies can impact the currency markets.

In the US, Producer Price Index (PPI);  indicating change in the price of finished goods and services sold by producers, is expected to drop down by 0.2%. And Core Producer Price Index (PPI) is expected to follow.

Later in the US, Existing Home Sales, Annualized number of residential buildings that were sold during the previous month, is expected to rise by 0.26M, and the Unemployment Claims expected to drop down by 32K.

Finally in the US, President Barack Obama will speak about Wall Street Reforms at the Cooper Union, in New York;

In Canada, Bank of Canada (BOC) releases the Monetary Policy Report that  provides valuable insight into the bank’s view of economic conditions and inflation. This is  followed by a Press Conference. It’s among the primary methods the BOC uses to communicate with investors regarding monetary policy.

More in Canada – Leading Indicators, the change in the level of a composite index based on 10 economic indicators – will probably be similar this time.

For more on USD/CAD, read the  Canadian dollar forecast.

In Europe, French Flash Manufacturing PMI and Services PMI are both expected to rise slightly. Then, German Flash Manufacturing PMI and Services PMI will probably remain almost unchanged. The all-European figure will complete the picture.

Also in  Europe, ECB President Jean-Claude Trichet speaks; as head of the ECB, which controls short term interest rates, he has more influence over the euro’s value than any other person.

For more on the Euro, read the  EUR/USD forecast and Casey Stubbs’  latest analysis.

In Great Britain, Public Sector Net Borrowing, Difference in value between spending and income for public corporations, is  expected to rise up from 12.1B to 24.1 B – there are both debt and investment implications;

More in Great Britain, Retail Sales expected to drop off by 1.4%, It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity; good for currency.

Later in Britain, the relative level of order volume expected during the next 3 months; Level of a diffusion index based on surveyed manufacturers   expected to be -32 in  comparison  to the  previous  -37

Finally in Britain, Number of new mortgages approved for home purchases during the previous month; expected to rise from 48K to 51 K

Read more about the Pound in the  GBP/USD forecast.

In Switzerland, the  Trade Balance value, difference in value between imported and exported goods during the reported month is expected by 0.5 B. Also note the Swiss ZEW Economic Expectations.

In Aussie, New Motor Vehicle Sales, Change in the number of new cars and trucks sold domestically will impact the currency.

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

In Japan, Bank of Japan (BOJ) Governor Masaaki Shirakawa speaks. As head of the central bank, which controls short term interest rates, he has important influence over the nation’s currency value.

That’s it for today. Happy forex trading!

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Anat Dror

Anat Dror

Anat Dror Senior Writer I conceptualize, design and create multi-lingual websites. Apart from the technical work, my projects usually consist of writing content for these sites in English, French and Hebrew. In the past, I have built, managed and marketed an e-learning center for language studies, including moderating a live community of students. I've also worked as a community organizer