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Forex Daily Outlook – October 27 2010

US Durable Goods Orders, American New Home Sales and Japan’s Rate decision are the major events on this busy day. Here is an outlook on the market movers today.

In the US, Durable Goods Orders -a Drop of 1.3% in New Orders for Durable Goods was witnessed last month due to volatile transportation equipment of non-defense aircraft component. The Core Durable Goods Orders excluding transportation equipment rose 1.7% well above expectations of 0.9% increase. A smaller rise of 0.4% is expected in the Core Durable Goods while a nice rise of 1.5% is forecasted for the Durable Goods this time.

More in the US, American New Home Sales had their second-worst month on record in August with an unchanged seasonally adjusted annual sales pace of 288,000 signaling that the housing market remains the weakest spot in US economy. A small rise of 301K is expected now.

Later in the US, Crude Oil Inventories increased by 0.7M last week. This week an increase of 1.1M is expected.

In Canada, BOC Governor Mark Carney testifies with Senior Deputy Governor Tiff Macklem, before the Standing Committee on Finance, in Ottawa. In a recent speech Mark Carney said Canada is in trouble and spending cuts are inevitable. This speech can provide clues on future monetary policy. His words will have a direct impact on the market.

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

In Europe, German Prelim CPI plunged by 0.1% in the previous month a bit better than expected. This month a rise of 0.1% is expected.

More in Europe, French Consumer Spending dropped by 1.6% in the previous month which was more than anticipated because of the government’s plan to cut budget deficit. A small rise of 0.5% is predicted now.

Finally in Europe, M3 Money Supply  measuring change in the total quantity of domestic currency in circulation and deposited in banks increased by 1.1% despite lower forecasts. A further increase of 1.4% is expected signaling an improvement in the market.

In Great Britain, BOE Deputy Governor Charles Bean speaks at the Annual Statistic User Forum Conference, in London. The Bank of England deputy  Charles  Bean  encourages British people to spend in order to help invigorate the UK’s economic recovery and admits that the BOE holds down interest to discourage people from building up cash savings in the hope families would use their cash to help economy. His speech can provide clues on future interest rates.

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

In Australia, CPI Australian inflation indicator released quarterly  was in lower than expected in July reaching 0.6% while forecasts predicted 1.0%. A rise of 0.8% is foreseen now.

More in Australia, Trimmed Mean CPI excluding the most volatile 30% of items shows a similar picture with an expected rise of 0.7% from a disappointing 0.5% in the previous quarter.

Finally in Australia, CB Leading Index rose by 0.8% in the previous month having a favorable affect on the AUD.   A smaller rise is predicted now.

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

In New Zealand, NBNZ Business Confidence index based on a survey of about 1,500 businesses  decreased to 13.5 in the previous month. A small rise is expected now.

More in New Zealand, Official Cash Rate-The Reserve Bank of New Zealand left the Official Cash Rate unchanged at 3.00%. There is great pressure from the part of the Federated Farmers to maintain the same rate looks like the rate will remain 3.0%.

In Japan, Japanese Rate decision- maintained interest rates near zero level at 0.10%. The same policy is expected to continue now.

Finally in Japan, Retail Sales  dropped from 4.6% to 4.3% in the previous month. Yet a smaller increase of 3.3% is expected this time.

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