Home Forex Daily Outlook – January 4 2011
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Forex Daily Outlook – January 4 2011

FOMC Meeting Minutes in the US and Halifax HPI in the UK are only some of the exiting events that awaits us today.

In the US, Federal Open Market Committee (FOMC) Meeting Minutes that is Scheduled 8 times per year is a detailed record of the FOMC’s most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.

More in the US, Treasury Currency Report, It provides a detailed review of global exchange rate policies, economic conditions, and central bank and government actions around the world. Most importantly, the report outlines counties that the Treasury deems currency manipulators.

Later in the US, Factory Orders, total value of new purchase orders placed with manufacturers; is about to rise by 0.8%. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.

Finally in the US, Total Vehicle Sales, cars and trucks sold domestically during the previous month is about to be 12.3M, similar to the previous month. It’s a sign of consumer confidence.

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

In Europe, German Unemployment Change, number of unemployed people during the previous month; is about to reduce by 3K. Important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.

Also in  Europe, CPI Flash Estimate, price of goods and services purchased by consumers is about to rise by 0.1%. Consumer prices account for a majority of overall inflation.

For more on the Euro, read the  EUR/USD forecast.

In Great Britain, Halifax House Price Index (HPI), price of homes financed by Halifax Bank of Scotland (HBOS) is about to reduce by 0.2%. Rising house prices attract investors and spur industry activity.

More in Great Britain, Manufacturing Purchasing Managers’ Index (PMI);, Survey of about 600 purchasing managers to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories;  indicates industry expansion with 57.3 points.

Finally in Great Britain, Net Lending to Individuals, total value of new credit issued to consumers is about to reduce by 0.4B. It’s correlated with consumer spending and confidence.

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

In Australia, Commodity Prices, selling price of exported commodities is about to be 44.4%, similar to the previous month. Leading indicator of the nation’s trade balance with other countries because rising commodity prices boost export income.

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

In Japan, Monetary Base, total quantity of domestic currency in circulation and current account deposits held at the BOJ is about to rise by 0.3%. Positively correlated with interest rates.

That’s it for today. Happy forex trading!

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