Home Forex Daily Outlook – October 12 2010
Daily Look

Forex Daily Outlook – October 12 2010

U.S. FOMC statement and Britain’s inflation data are at the top of our market moving events. Here is an outlook on the most influential activities awaiting us today.

In the US, FOMC Meeting Minutes the most highly anticipated event today gives rise to speculations regarding another round of economic stimulus for the USD. This statement will provide further details regarding their monetary policy decisions and will greatly affect the market.

In Europe, European Central Bank president Jean-Claude Trichet speaks at the Economic Club, in New York. On October 7   he Bloomberg that Excess volatility in exchange rates poses a risk to economic stability, European Central Bank president Jean-Claude Trichet warned Thursday, as the euro briefly topped the $1.40 mark for the first time in eight months. His current speech may help cap the euro’s gains.

In Great Britain, UK’s most important inflation data refuses to drop expected to remain 3.1% as in the previous month. The unexpectedly high rate was boosted by strong rises in air fares, clothing and food While Core CPI excluding the volatile products expected to drop to 2.6% from 2.8% in the previous month.

More in Great Britain, Nationwide Consumer Confidence a  leading indicator of consumer spending released monthly, reached a better than expected reading of 61 points in the previous month. A further climb to 64 points is expected now to strengthen the Pound.

Later in Great Britain, External BOE MPC Member David Miles speaks at the Economic and Social Research Institute Conference, in Dublin. In his previous speech before the Bristol Business Forum he explained his view of the appropriate policy response control inflation pressures by using interest rates as the active tool to affect the balance between demand and supply in the economy. His speech may affect rates.

Finally in Britain, Trade Balance deficit has widened unexpectedly in July reaching 8.7B a reduction of 0.7B in deficit is expected now.

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

In Australia, NAB Business Confidence a leading indicator of economic health hiked 11 points in August due to economic expansion. Another rise is expected now.

More in Australia, Westpac Consumer Sentiment dropped unexpectedly by 5.1% in September the fall came despite another month of interest rates being kept on hold, strong employment growth, a higher Australian dollar and stronger share prices in September. A small rise is likely now.

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

In Japan, Core Machinery Orders a leading indicator of production leaped by 8.8% in the previous month The increase in the sector was led by stronger orders from textile machinery, chemical and chemical products, food and beverages. A 3.7% drop is predicted to balance the sharp rise.

Finally in Japan, That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

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