Forex Daily Outlook – May 4 2010
Daily Look

Forex Daily Outlook – May 4 2010

U.S. Pending home sales and factory orders reports are expected to drop while in Britain, optimistic winds before the upcoming political elections.
Let’s see what awaits us today.

In the US, Pending Home Sales excluding new construction is expected to go down from 8.2% to 3.3%, a temporary setback from the nice rise from last month.

Later in the US, a decline in the value of new purchase orders placed with manufacturers from 0.6% to 0.1%.

Finally in the US, Treasury Secretary Timothy Geithner testifies on the President’s proposed fee on financial institutions before the Senate Financial Committee, in Washington DC; may affect monetary policy in the market and foreign governments;

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

In Europe, German Retail Sales, released monthly, showing change in the total value of inflation-adjusted sales is expected to decline from 1.1% to 0.0% most likely affected by the Euro crisis.

Also in  Europe, Producer Price Index showing the change in the price of finished goods and services sold by producers is expected to rise from 0.1% to 0.9%

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

In Britain, Tension is rising towards the elections on Thursday; Manufacturing Purchasing Managers’ Index  is foreseen arise from 57.2 to 57.5 points which is a fairly good score.

Also in Great Britain, Halifax Bank of Scotland (HBOS) House price index, indicating the change in the price of homes financed by HBOS, is expected to go down from 1.1% to 0.6%, a bit of slowing down in the housing industry and a drop in the total value of new credit issued to consumers this month from 2.1B to 2.0B, may correlate to Pre-election uncertainty.

However, Nationwide Consumer Confidence is up from 72 points to 80 points expressing optimism towards the nearing election which will have a major impact on the future course of fiscal and monetary policy.

Finally in Great Britain, Price of goods purchased at retail stores is expected to remain around 1.2% and the Number of new mortgages approved for home purchases is expected a drop from 52K to 50 K.

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

In Australia, Reserve Bank of Australia’s term interest rates are expected to edge up from 4.25% to 4.50%. RBA also issues a Rate Statement concerning monetary policy and future tendencies.                                                    

More in Australia, AIG Services Index which is a business conditions  indicator released monthly, is expected to remain around 48.4 points.

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

That’s it for today. Happy forex trading!

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Anat Dror

Anat Dror

Anat Dror Senior Writer I conceptualize, design and create multi-lingual websites. Apart from the technical work, my projects usually consist of writing content for these sites in English, French and Hebrew. In the past, I have built, managed and marketed an e-learning center for language studies, including moderating a live community of students. I've also worked as a community organizer