After a wild opening to the week, we have many indicators today. American trade balance and a speech by Bernanke are the highlights of the day. Let’s see what’s awaiting us today.
Most weekend gaps were filled after the initial shock that was seen in the wake of the new week. Note that the Euro and the Swissy still got to keep their gains. Let’s start:
Australia’s NAB Business Confidence starts the day, and it’s expected to drop from the high score of 19 points it reached last month. The Aussie’s breakout on the weekend gap was shattered.
For more on the Aussie, read the AUD/USD forecast.
In Europe, German Final CPI is expected to confirm the initial read of 0.5%. The WPI (Wholesale Price Index) will probably rise by 0.5%, stronger than last month. French consumer prices are expected to rise by 0.5%, similar to last month. Stronger rises are needed in these inflation figures to push the Euro higher.
In Britain, Trade Balance is predicted to show a smaller deficit – 7.3 billion instead of 8 billion. The Pound’s breakout was erased during the day.
For more on the Pound, read the GBP/USD forecast.
Trade balance is also published at the same time in the US and Canada – the American deficit is predicted to grow to 38.5 billion, slightly higher than beforehand, while the Canadian surplus is expected to remain similar to last month 700 million.
Also in Canada, the New House Price Index (NHPI) will probably rise by 0.5%, better than last month’s rise.
The loonie is still struggling with parity.For more on the loonie, read the USD/CAD forecast.
American Import Prices are predicted to rise by 0.9% after a drop of 0.3% last month. Also in the US: Treasury secretary Timothy Geithner will speak before the American Society of News Editors and might move the markets on comments about the Yuan.
A bigger speech is expected by Ben Bernanke at the National Bankers Association Foundation Literacy Summit. Last week, he didn’t say anything important, but he may always surprise.
In New Zealand, retail sales are predicted to rise by 0.2%, less than last month’s 0.8% rise. Core retail sales are expected to rise by 0.3%, similar to last month’s 0.3% rise.
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