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Forex Daily Outlook May 16 2013

US Building Permits, Inflation data, Unemployment Claims and Philly Fed Manufacturing Index are the major market-movers. Let see what awaits us today.

In the US, Building Permits declined to an annualized 0.90 million in March, down 40,000 from the previous month and below market predictions of 0.94 million. Analysts expect 0.94 million this time.

Later in the US, Inflation data. Consumer price index dropped 0.2% in March after a 0.7% rise in February while analysts expected no change. Meanwhile Core CPI excluding food and energy increased by 0.1% in March following a 0.2% gain in the previous month. CPI is expected to fall 0.3% while Core CPI is predicted to gain 0.2%.

Later on in the US, Unemployment Claims surprised with a low reading of 323K last week beating estimates for 333K and following 327K in the week before.  A rise of 332K is expected this time.

More in the US, Philly Fed Manufacturing Index .  Manufacturers’ sentiment in the Philadelphia area were less positive in April down 0.7 points to 1.3, contrary to predictions for a rise to 2.7 points.

Also in the US, Eric Rosengren speaks. Federal Reserve Bank of Boston President Eric Rosengren will speak in Milan. Hints on future monetary policy and interest rate could be dropped.

Moreover in the US, Housing Starts. New residential housing increased unexpectedly in March to an annualized figure of 1.04 million following 0.97 million in February. Economists expected a smaller number of  0.93 million.  A reading of 0.98 million is expected now.

Finally in the US, Sarah Bloom Raskin. Federal Reserve Governor Sarah Bloom Raskin is scheduled to speak in Washington DC about economic recovery. Questions from audience is expected.

In Canada, Foreign Securities Purchases. Foreign investors sold C$6.31 billion in February after a large purchase of 14.32 billion in January. The reading missed predictions for a C$7.28 billion purchase.  Economists expect a C$5.36 reading.

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

In Europe, French Prelim Non-Farm Payrolls. The number of positions in France declined by 0.2% in the fourth quarter of 2012, in line with market expectations, following 0.3% decline in the third quarter. Another contraction of 0.3% is expected for the first quarter of 2013.

Later in Europe,   Eurozone Consumer price index gained 1.7% in March the same as in the previous month, in line with expectations. Core CPI excluding food, energy, alcohol, and tobacco increase 1.5% following 1.3% increase in February. Analysts expect CPI to rise 1.2% and Core CPI by 1.0%.

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

In New Zealand, Annual Budget Release is a document describing the government’s budget for the year, including estimated spending and earnings, borrowing levels, financial intentions, and planned investments. This release can cause volatility in the market.

Later in New Zealand,   PPI Input. Prices of raw materials in the fourth quarter of 2012declined by 0.3% following a 1.0% fall in the third quarter. Analysts expected a 0.3% increase. An increase of 0.3% is expected.

For more about the kiwi, see the NZD/USD forecast.

In Japan, Prelim GDP. Japan’s economy contracted by 0.1% in the fourth quarter of 2012 after a 0.9% fall in the previous quarter, while analysts expet5ed a 0.1% expansion. This time a 0.7% growth is anticipated.

Read more about the yen in the USD/JPY 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