Forex Daily Outlook – December 7 2010

BOC Rate in Canada, Manufacturing Production in the UK and Cash Rate In Australia are some of today’s highlights .Let’s see what awaits us today.

Bank of Canada (BOC) Rate Statement, the primary tool the BOC uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.

Later in the US, IBD/TIPP Economic Optimism, Survey of about 900 consumers which asks respondents to rate the relative level of economic conditions including six-month economic outlook, personal financial outlook, and confidence in federal economic policies, indicates pessimism with 48.3 points.

Finally in the US, Consumer Credit that requires installment payments; is about to reduce by 1.2B. Correlated with consumer spending and confidence.

In Canada, Overnight Rate, Scheduled 8 times per year and measure which major financial institutions borrow and lend overnight funds between themselves is 1%.

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

In Europe, German Factory Orders, purchase orders placed with manufacturers is about to rise by 2.3%.   Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.

Also in  Europe, The Economic and Financial Affairs Council (ECOFIN) Meeting council is the main decision making body of the European Union, which co-ordinates the broad economic policies of the 27 member states. Hence, their initiatives and policies can impact the currency markets.

For more on the Euro, read the  EUR/USD forecast and Casey Stubbs’  latest analysis.

In Great Britain, Manufacturing Production, total inflation-adjusted value of output produced by manufacturers; is about to rise by 3%. Correlated with consumer conditions such as employment levels and earnings.

More in Great Britain, Industrial Production output produced by manufacturers, mines, and utilities is about to reduce by 1%.

Finally in Britain, BRC Shop Price Index, price of goods purchased at BRC-member retail stores is about to be 2/2%, similar to the previous month.

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

In Switzerland, Unemployment Rate that are actively seeking employment during the previous month; is about to be 3/6%, similar to the previous month. Important signal because consumer spending is highly correlated with labor-market conditions.

In Australia, Reserve Bank of Australia (RBA) Rate Statement, among the primary tools the RBA uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.

Later in Australia, Cash Rate for overnight money market deposits, is about to be 4/7% like on the previous month. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future.

Finally in Australia, Home Loans that are granted for owner-occupied homes is about to reduce by 1.1%. Excellent gauge of how many qualified buyers are entering the market.

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

In Japan, Core Machinery Orders, total value of new private-sector purchase orders placed with manufacturers for machines, excluding ships and utilities is about to rise by 9/8%. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.

That’s it for today. Happy forex trading!

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