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Forex Daily Analysis – January 30th 2009

The last day of January provides lots of economic indicators everywhere. The main event of the day is the Advance GDP in the US, which is expected to fall by a huge 5.4%.

In Japan, much data is released: the  yearly  Household Spending is expected to drop by 3.6%. The  Tokyo Core CPI is expected to rise by 0.6% in Japan.

The most important figure in Japan is the monthly  Prelim Industrial Production which was very gloomy last time, dropping 8.5%. This time the forecast already lacks any optimism –  Prelim Industrial Production is expected to fall by 8.9%.

More from Japan on Friday morning:  Unemployment Rate (late figure, 4.1 expected)), National Core CPI and yearly  Housing Starts, expected to drop by 7.6%.

In Australia, the  Private Sector Credit is expected to rise by 0.5%. This might impact AUD/USD.

The British Pound will also get some news:  GfK Consumer Confidence is predicted to fall by 35 points. Monthly  Net Lending to Individuals  is expected to squeeze to 1.3 billion. Also  Mortgage Approvals are due.

In Europe, the important yearly  CPI Flash Estimate is fore casted to rise by 1.4. The all European  Unemployment Rate, which is a late figure, is expected to rise by 0.1% to 7.9%.

As usual, the party begins at 13:30 GMT: Both Canada and the US will publish the GDP. In Canada it’s a monthly figure, that is expected to fall by 0.5%.

Contraction is also expected in the US: the last quarter of 2008 was probably devestating: the figure is expected to show an annual fall of 5.4% – something not seen in many years.

While Forex traders will be digesting the the GDP, complementing figures will be released: quarterly  Advance GDP Price Index and quarterly  Employment Cost Index.  Both are expected to rise.

A little over an hour later, two more US figures will be published: the  Chicago PMI and the  Revised UoM Consumer Sentiment. The University of Michigan has a strong reputation of showing the path of the economy, anddespite being a revised figure, this data will have a lot of impact.

That’s it.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.