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Forex Daily Outlook – October 8 2010

U.S. Non-Farm Payrolls, Canada’s Employment data and the IMF meetings this weekend are the most influential proceedings closing another week of trade. Here is an outlook on the major events at hand.

In the U.S. Non-Farm Payrolls a better than expected drop of 54,000 contrary to   101K drop predicted gave a boost the market. This optimistic trend is expected to continue with 1K gain while unemployment Rate remains nearly unchanged with 0.1% rise to 9.7%.

More in the U.S. Average Hourly Earnings a leading indicator of consumer inflation released monthly expected another rise of 0.2% following a better than expected 0.3% increases in the previous month due to better conditions for those employed.

In Canada, Employment data – Following a generous 35K rise in jobs last month, a smaller gain is 10.7K is expected now while unemployment rate is predicted to remain 8.1% after 0.1% rise in the  previous month .

More in Canada, The Bank of Canada’s July outlook survey showed that businesses remain optimistic that the Canadian economic recovery will remain on track. This report  can give valuable information for manufacturers and investors regarding future monetary policy.

Later in Canada, Housing Starts a leading indicator of economic health  released monthly predicted another small drop to 180K from 183K in the previous month The weakness in total  housing  starts  was seen in both major components, with the fairly stable single-urban  starts.

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

IMF Meetings held twice a year  attended by the representatives of IMF and the World Bank. Takes place from October 9 to October 11, 2010. “Concerns about potential protectionism point to the need to maintain a focus on a collaborative approach to broad economic policies in the interest of producing results that benefit all,” the IMF’s deputy managing director John Lipsky said in an interview. Most advanced economies expect mild domestic growth at least through next year, leaving them unusually export-dependent. The major emerging economies, including China and Brazil, rely on exports too. They all know a weaker currency gives their goods a competitive advantage.

In Great Britain, PPI Input  measuring the change in the price of goods and raw materials purchased by manufacturers forecasted to rise 0.3% following consecutive declines in the previous months. The report said that the drop in August was due to lower prices for petroleum, electrical and transport equipment products

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

In Australia, RBA Deputy Governor Ric Battellino speaks at the Property Council of Australia’s Queensland Downtown Luncheon, in Brisbane could affect interest rates and provide clues regarding future monetary policy.

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

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