Forex Daily Outlook – January 12 2011

Very busy day in the US, Treasury Sec Geithner & FOMC Member Fisher Speaks, Federal Budget Balance and much more. Let’s see what awaits us today.

In the US, Federal Budget Balance, Difference in value between the federal government’s income and spending during the previous month, indicates a deficit with -150.4 B.

In the US, Treasury Currency Report provides a detailed review of global exchange rate policies, economic conditions, and central bank and government actions around the world. Most importantly, the report outlines counties that the Treasury deems currency manipulators.

Later in the US, Federal Reserve Bank of Dallas President Richard Fisher, Due to deliver a speech titled “The Limits of Monetary Policy” at the Manhattan Institute Luncheon, in New York.

Later on in the US, US Treasury Secretary Timothy Geithner, Due to deliver a speech titled “The Path Ahead for the US-China Relationship” at the Johns Hopkins University Paul H Nitze School of Advanced International Studies, in Washington DC. used to signal policy shifts to the public and to foreign governments.

More in the US, Import Prices, imported goods and services purchased domestically is about to be 1.3%, similar to the previous month.

Finally in the US, Beige Book, 8 times per year, this analysis is used by the FOMC to help make their next decision on interest rates. However along with the Green & Blue Book.

In Canada, New Housing Price Index (NHPI), selling price of new homes is about to remain 0.1% like on the previous month. Rising house prices attract investors and spur industry activity.

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

In Europe, Industrial Production, value of output produced by manufacturers, mines, and utilities; is about to reduce by 0.1%. production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.

Also in  Europe, French Gov Budget Balance, value between the central government’s income and spending for the year-to-date; is about to be -133.1 B, similar to the previous month.

For more on the Euro, read the  EUR/USD forecast

In Great Britain, Trade Balance, value between imported and exported goods during the reported month is about to reduce by 0.3 B.

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

In Australia, Home Loans, new loans granted for owner-occupied homes; is about to reduce by 3.1%. most homes are financed, so it provides an 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, value of new private-sector purchase orders placed with manufacturers for machines, excluding ships and utilities is about to rise by 3.6%. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders

That’s it for today. Happy forex trading!