Forex Daily Outlook – April 20 2010

A busy day expects forex traders, Canada BOC Rate Statement and the  speech from Ben Bernanke  are  at the headline. Let’s see what’s on the menu today.

Federal Reserve Chairman Ben Bernanke, head of the central bank in the US,    testifies along with Treasury Secretary Tim Geithner, on Lehman Brothers before the House Financial Services Committee, in Washington DC;   The testimony can make for some unscripted comments that lead to heavy market volatility which can move the   currency.

In the US,   Change in the number of barrels of crude oil held in inventory by commercial firms during the past week; this is a US indicator,which also  affects the loonie due to Canada’s sizable energy sector;  the total number of barrels will probably be similar this time.

In Canada, Bank of Canada (BOC) Interest Rate Statement , can move the currency.

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

British CPI is expected to rise from 3% to 3.2%. Core CPI is expected to drop from 2.9% to 2.8% and the RPI, retail price index, will probably edge up to 4.1%.

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

News from Europe: In Germany,   Zentrum fur Europaische Wirtschaftsforschung (ZEW) Economic Sentiment; Survey of about 350 German institutional investors and analysts,   expected to edge up from 44.5 to 45.2. And the

More In Germany, Producer Price Index (PPI);   indicating change in the price of goods sold by manufacturers,  is expected to rise by 0.5%.