Forex Daily Outlook – April 28 2010
Daily Look

Forex Daily Outlook – April 28 2010

FOMC and Federal Funds Rate statements are released in the U.S.   Inflation rates drop in Germany but rise in Australia. These are just a few of the events awaiting us today:

In the US, Federal Open Market Committee  issues its statement regarding interest rates and Monetary Policy. This will influence current market activity as well as provide an outlook on future tendencies.

Later in the US, Federal Funds Rate issues their statement concerning short term interest rates. This is a major factor for currency valuation and will most likely effect the currency rates.

More from the US, Crude Oil Inventories, released weekly, measuring the number of barrels of crude oil held in inventory by commercial firms during the past week, and influences the price of petroleum products which affects inflation, but also impacts growth as many industries. It is expected to remain approximately 1.9M

In Europe, encouraging news from Germany, German Prelim consumer price index indicating the change in the price of goods and services purchased by consumers from 6 German states, which is the earliest major consumer inflation, is expected to drop from 0.5% to 0.1%.

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

In Australia, Consumer Price Index, the primary indicator of consumer prices, expected to rise from 0.5% to 0.9% as an indicator of inflation it will create hefty market impacts. And also the Trimmed Mean CPI showing inflation trends shows a similar tendency.

More in Australia, CB Leading Index, released monthly, showing the change in the level of a composite index based on 7 economic indicators, used to predict the direction of the economy, is expected to remain about -0.2%.

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

In New Zeeland, Reserve Bank of New Zealand   (NBNZ) Business Confidence index, released monthly, measuring the level of a diffusion index based on surveyed manufacturers, builders, retailers, agricultural firms, and service providers, a leading indicator of economic health will probably remain around 42.5 points.

Their (NBNZ) Rate Statement about interest rates decision and commentary about the economic conditions was also issued. This will affect the currency as well as provide future forecast.

More from New Zeeland, Official Cash Rate, showing the short term interest rates by which banks lend balances held at the RBNZ is foreseen to remain around 0.25%.

Finally in New Zeeland, Trade Balance, released monthly, showing the difference in value between imported and exported goods  is expected to have a favorable growth from 321M to 372M. This is really good news for New Zeeland’s economy.

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