Forex Daily Outlook – December 2 2010

US Unemployment Claims and Pending Home Sales are the main events this day  .Let’s see what awaits us today.

In the US, Unemployment Claims, individuals who filed for unemployment insurance for the first time during the past week is about to rise by 18K. Important signal of overall economic health.

Later in the US, Pending Home Sales, homes under contract to be sold but still awaiting the closing transaction, excluding new construction is about to rise by 0.9%. Leading indicator of economic health and triggers a wide-reaching ripple effect.

Finally in the US, Federal Reserve Bank of St. Louis President James Bullard, Due to speak on monetary policy and the economy at the National Economists Club, in Washington DC. Audience questions expected. Can affect the nation’s key interest rates.

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

In Europe, Minimum Bid Rate, Interest rate on the main refinancing operations that provide the bulk of liquidity to the banking system is 1% like on the previous month. Short term interest rates are the paramount factor in currency valuation.

Also in  Europe, European Central Bank (ECB) Press Conference, It’s the primary method the ECB uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, such as the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy.

More in Europe, Producer Price Index (PPI), price of finished goods and services sold by producers should rise by 1%. Tends to have a muted impact because Germany and France, which account for about half of the Eurozone’s economy, release their PPI data earlier.

Finally in Europe, Revised Gross Domestic Product (GDP), all goods and services produced by the economy should be 0.4% like on the previous month.

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

In Great Britain, Halifax HPI, price of homes financed by HBOS; price of homes financed by HBOS is about to reduce by 1.5%. Leading indicator since rising house prices attract investors and spur industry activity,

More in Great Britain, Construction Purchasing Managers’ Index (PMI); Survey of about 170 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories indicates industry expansion wotj 51.1 points.

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

In Switzerland, Retail Sales at the retail level, excluding automobiles and gas stations is about to rise by 0.8%, and primary gauge of consumer spending, which accounts for the majority of overall economic activity.

More in the Switzerland, Gross Domestic Product (GDP) is about to reduce by 0.4%.

In Australia, Retail Sales, value of sales at the retail level; is about to rise by 1% and primary gauge of consumer spending, which accounts for the majority of overall economic activity.

More in Australia, Trade Balance, value between imported and exported goods and services during the reported month is about to rise by 0.31B. Export demand and currency demand are directly linked.

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

In Japan, Capital Spending dropped in the previous quarter 1.7% less than the 6.6% drop expected. For the first time in nearly 2 years a 6.1% gain is expected showing signs of recovery in the market.

That’s it for today. Happy forex trading!

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