Home Forex Daily Outlook October 16 2012
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Forex Daily Outlook October 16 2012

US inflation data and German ZEW Economic Sentiment are the main events lined up.  Let’s see what awaits us today.

In the US, Inflation data. Headline CPI increased better than expected in August, climbing 0.63% after a flat reading in July. Economists predicted a smaller gain of 0.5%. Meantime, Core CPI excluding food and energy components increased a minor 0.1% less than the 0.2% climb predicted by analysts. CPI is expected to climb by 0.4% while Core CPI is forecasted to rise 0.2%.

Later in the US, TIC Long-Term Purchases. foreign purchases of long-term securities  surged above predictions in July, reaching $67.0 billion, following $9.3 billion in June. Economists expected a smaller gain of $37.3 billion. A decline to $45.3 billion is predicted this time.

Later on in the US, Capacity Utilization Rate. The relative part of available resources Contracted more than predicted in August, reaching 78.2%, down 1.0% from the previous month, while economists predicted a small rise to 79.3%. A weak reading suggests less consumer spending.

More in the US, Industrial Production  unexpectedly contracted in August by 1.32% after a 0.5% gain in the preceding month. Analysts expected a small gain of 0.1%. The weak reading suggests slower exports due to global uncertainty.

Moreover in the US, John Williams, President of the Federal Reserve Bank of San Francisco is scheduled to speak in San Francisco. Audience questions are expected

In Canada, Foreign Securities Purchases. Overseas investors increased their purchases to C$6.67 billion in July after selling C$7.76 billion in the previous month. Economists forecasted a higher reading of C$11.30 billion. A further rise to C$8.72 billion is forecasted now.

Later in Canada, Manufacturing Sales unexpectedly declined in July by 1.5% following a 0.8% drop in the preceding month. Analysts expected a 0.4% gain. This weak reading suggests a slowdown in consumer spending. A gain of 0.5% is predicted this time.

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

In Europe, German ZEW Economic Sentiment. German analysts sentiment improved more than predicted in September reaching -18.2, after a drop to-25.5 in August. The reading was better than the -19.2 figure forecasted by analysts indicating a small improvement in economic conditions. Another advance to -14.6 is expected now.

Later in Europe, Inflation data. Euro-Zone yearly inflation gauge increased more than predicted to   2.7% in August, 0.1% higher than in the previous month, while Core CPI excluding volatile items edged down 1.5% from 1.7% in the previous month.

Later on in Europe, ZEW Economic Sentiment. German sentiment regarding the Euro zone economic conditions, surged to-3.8 in September from-21.2 in August. This sharp rise was well above the -16.3 reading predicted by analysts implying a possible optimistic shift in the Euro-zone future economic conditions. A further improvement to -1.1 is expected this time.

For more on the Euro, read the  Euro to dollar forecast.

In Great Britain, Inflation data. CPI dropped to 2.5% in August, in line with predictions from 2.6% in the preceding month. Another drop to 2.2% is expected this time.

Later in Great Britain, PPI Input.UK manufacturers producer prices increased more than expected In August rising 0.2% from 0.4% increase in July. Analysts expected a 1.6% increase. A flat reading is expected this time.

Later on in Great Britain, Retail Price Index measuring the selling prices for customers increases less than predicted in august rising by 2.9% after a 3.2% increase in the preceding month. The reading was lower than the 3.1% rise predicted by economists. A smaller increase o 2.6% is forecasted now.

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

In Australia, Monetary Policy Meeting Minutes. The RBA will release the minutes from its last Monetary Policy Meeting, where in dept details of economic conditions leading to the recent decision will be revealed.

Later in Australia, MI Leading Index comprised of 9 economic indicators increased by 0.4% in July following 0.5% in June. A similar rise is expected this time.

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

Trade well

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