Forex Daily Outlook – April 5 2011

Very busy day with FOMC Meeting Minutes in the US, Services PMI in the UK and much more. Let’s see what awaits us today.

In the US, The Institute for Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI); Survey of about 400 purchasing managers to rate the relative level of business conditions. Indicates industry expansion with 60.2 points.

Later in the US, FOMC Meeting Minutes, It’s a detailed record of the FOMC’s most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.

Finally in the US, Federal Reserve Bank of Philadelphia President Charles Plosser, due to participate in a panel discussion at the Federal Reserve Bank of Atlanta’s 2011 Financial Markets Conference “Navigating the New Financial Landscape,” in Stone Mountain.

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

In Europe, Final Services Purchasing Managers’ Index (PMI), Survey of about 600 purchasing managers to rate the relative level of business conditions, indicates industry expansion with 56.9 points.

Also in  Europe, Retail Sales is due to remain 0.1%. It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity.

For more on the Euro, read the  EUR/USD forecast.

In Great Britain, Halifax House Price Index (HPI), price of homes financed by Halifax Bank of Scotland (HBOS); is about to rise by 1.1%.

More in Great Britain, Services Purchasing Managers’ Index (PMI), Survey of purchasing managers which asks respondents to rate the relative level of business conditions indicates industry expansion with 52.5 points.

Finally in Britain, British Retail Consortium (BRC) Shop Price Index is due to be 2.7%. Leads the government-released consumer inflation data by about 10 days.

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

In Australia, Reserve Bank of Australia (RBA ) Rate Statement, It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.

More in Australia, Cash Rate, overnight money market deposits is due to remain 4.75%. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future.

Finally in Australia, Home Loans, new loans granted for owner-occupied homes; is about to rise by 2.7%. Provides an excellent gauge of how many qualified buyers are entering the market.

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

That’s it for today. Happy forex trading!