Forex Daily Outlook – November 10 2010

Trade Balance in the US and Canada & the BOE Inflation Report in UK are some of the highlights of the upcoming outlook .Let’s see what awaits us today.

In the US, Unemployment Claims, the nation’s earliest weekly economic data on individuals who filed for unemployment insurance for the first time during the past week, is about to reduce by 6K. Lagging indicator since consumer spending is highly correlated with labor-market conditions.

Later in the US, Trade Balance, value between imported and exported goods and services during the reported month is about to rise by 1.5B and since Export demand and currency demand are directly linked, foreigners must buy the domestic currency to pay for the nation’s exports. Export demand also impacts production and prices at domestic manufacturers.

More in the US, Import Prices, the earliest government-released inflation data on the price of imported goods and services purchased domestically; is about to rise by 1.4%, It contributes to inflation for businesses and consumers,.

Moreover in the US, Crude Oil Inventories, crude oil held in inventory by commercial firms during the past week, is about to remain 2% like on the previous week.

Finally in the US, Federal Budget Balance, value between the federal government’s income and spending during the previous month is about to reduce by to -153.8B and indicates a deficit.

In Canada, Trade Balance, difference in value between imported and exported goods during the reported month, and, is about to reduce by 0.1B. Export demand and currency demand are directly linked and about 65% of Canadian exports are purchased by the US.

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

In Europe, French Industrial Production, al inflation-adjusted value of output produced by manufacturers, mines, and utilities is about to rise by 2%. Production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions.

Also in  Europe, French Consumer Price Index (CPI); price of goods and services purchased by consumers is about to rise by 3%. Have a muted impact because there are several earlier indicators related to Eurozone consumer inflation.

Finally in Europe, German Wholesale Price Index (WPI); goods sold by wholesalers is about to rise by 6%. Leading indicator of consumer inflation since the higher costs are usually passed on to the consumer.

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

In Great Britain, Bank of England (BOE);Governor Mervyn King due to hold a press conference, along with other MPC members, about the Inflation Report, in London. Used to drop subtle clues regarding future monetary policy.

More in Great Britain, Bank of England (BOE) Inflation Report, the key factors that will shape the future of monetary policy. This report includes the BOE’s projection for inflation and economic growth over the next 2 years and a press conference is haled upon.

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

In Australia, Employment Change, the number of employed people during the previous month is about to reduce by 29.2. This is vital economic data which accounts for a majority of overall economic activity.

More in Australia, Unemployment Rate, the work force that is unemployed and actively seeking employment during the previous month is about to reduce by 0.1%. An important signal of overall economic health since consumer spending is highly correlated with labor-market conditions.

Finally in Australia, Melbourne Institute (MI) Inflation Expectations, the price of goods and services to change during the next 12 months is 3.8% similar to the previous month. can manifest into real inflation since workers tend to push for higher wages when they believe prices will rise;

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

In New Zealand, Business NZ Manufacturing Index based on Monthly Survey of manufacturers to rate the relative level of business conditions. Indicates contraction with 49.2 similar to the previous month.

Findlay in New Zealand, Food Price Index (FPI), price of food and food services purchased by households is 0.7% similar to the previous month.

In Japan, Core Machinery Orders, new private-sector purchase orders placed with manufacturers for machines, excluding ships and utilities is about to reduce by 0.9%. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.

More In Japan, Household Confidence, Survey of about 5,000 households to rate the relative level of economic conditions is about to reduce by 0.3 points and accounts for a majority of overall economic activity.

Finally in Japan, Corporate Goods Price Index (CGPI) price of goods sold by corporations is -0.1% similar to the previous month.

That’s it for today. Happy forex trading!

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