The week started with strong moves by the US dollar and the British Pound. This USD GBP correlation is still mysterious.
Today, moves in the Forex market will be backed by lots of important economic data.
In Australia, the AIG Services Index will supply some indication about this strong economy of this nation. Also in the early hours – yearly monetary base from Japan.
And then the real fun begins: the Nationwide HPI will be published in the UK. After the devestating Halifax HPI last week, this major indicator is also expected to fall by 1.5%. A sharper fall could stop today’s rally of the pound.
Later on, British Pound Forex traders will receive another major figure: the Services PMI. Also this is expected to show a decline with a figure of 39.
At the same time in the European scene, more evidnece of recession is expected with the Final Services PMI (expected 42), and the yearly CPI Flash Estimate which is expected to show stability at 1.8%.
Also the loonie will be affected by economic data: the RMPI and IPPI are due in Canada.
And then, when the American session and the European session happen together, big data will come from the US: ISM Non-Manufacturing PMI is due to be at 36.9, a very low number indeed.
At the same time, the Pending Home Sales will be published. Here, the number is expected to be negative, at -0.9%. The real estate bubble that has already burst still has an impact on the Americna economy. This figure will be closely watched.
Those two major figures will overshadow the monthly Factory Orders that will be published at the same time. 15:00 GMT is a time that all eyes of Forex traders will be in America.
And to close the day, the FOMC Meeting minutes will reveal the logic behind the historic rate cut last month, and the prospects of the Federal Reserve for the near future.
Have an exciting and successful Forex trading day.