Home Forex Daily Outlook – October 14 2010
Daily Look

Forex Daily Outlook – October 14 2010

American and Canadian trade balance followed by US Unemployment Claims and Producer Price Index open a busy day for the forex traders today. Here is an outlook on the market-moving events ahead.

In the US, American trade balance a major market-mover released simultaneously with the Canadian trade balance and provides high volatility for USD/CAD. The American deficit is expected a small increase to 43.5B from 42.8B in the previous month.

More in the US, Unemployment Claims Following a surprisingly low reading of 445K last week a small rise to 448K is expected this time.

Later in the US, Producer Price Index was better than expected with a reading of 0.4%. a more modest rise of 0.2% is forecasted now while the  Core PPI is likely to remain the same as in August at 0.1%.

Finally in the US, Crude Oil Inventories grew by 3.1M last week after a 0.5M drop in the week before another 1.5M increase is expected now. Natural Gas Storage reached 85B last week 7B more than forecasted. A higher figure of 88B is expected now.

In Canada, Trade balance released simultaneously with the American trade balance will provide high volatility for USD/CAD. Deficit is expected to narrow from 2.7 to 2.2 billion giving positive impact on the loonie.

OPEC meetings will be attended by representatives from 13 oil-rich nations discussing a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce. The meetings are closed to the press but officials usually talk with reporters throughout the day, and a formal statement covering policy shifts and meeting objectives is released after the meetings have concluded this may have significant impact on oil prices.

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

In Europe, European Central Bank Monthly Bulletin reveals the statistical data that the ECB Governing Board evaluated when making the latest interest rate decision.   In their September bulletin the ECB members decided to preserve the benchmark interest rates at 1.00 percent claiming economy will expand at a moderate pace during the second half of this year.

More in Europe, Deutsche Bundesbank President Axel Weber delivers a speech titled “Fiscal Policy Challenges from the Economic and Financial Crisis” at the event organized by the Initiative New Social Market lobby, in Berlin. His words can affect the market.

In Great Britain, BOE Executive Director Paul Fisher speaks at a regional visit, in Gloucestershire. In a previous speech he claimed that it is clear that the lending capacity of the banking system, in the UK and elsewhere, is impaired and will take some years yet to recover defending the BOE’s decision not to extend the lifetime of the Special Liquidity Scheme. His words can affect the market.

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

In Australia, MI Inflation Expectations can affect the market since expectations of future inflation can manifest into real inflation. A reading of 3.1% rise was seen in August a similar figure is predicted now.

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

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