Forex Daily Outlook – April 7 2011

ECB Press Conference in Europe and Unemployment Claims in the US are the main events today. Let’s see what awaits us today.

In the US, Unemployment Claims, individuals who filed for unemployment insurance for the first time during the past week is about to be 385K. Important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.

Later in the US, Natural Gas Storage, cubic feet held in underground storage during the past week; is about to be 12B.

Finally in the US, Consumer Credit, value of outstanding consumer credit that requires installment payments is about to be 4.8B.

In Canada, Building Permits, new building permits issued, is about to rise by 8.3%. it’s an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.

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

In Europe, European Central Bank (ECB) Press Conference, It’s the primary method the ECB uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, such as the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy.

Also in  Europe, Minimum Bid Rate, Interest rate on the main refinancing operations that provide the bulk of liquidity to the banking system is due to rise by 0.25%. 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.

More in Europe, German Industrial Production, value of output produced by manufacturers, mines, and utilities; is about to reduce by 1.2%.

Finally in Europe, French Trade Balance, value between imported and exported goods during the reported month is about to rise by 0.6B.

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

In Great Britain, Monetary Policy Committee (MPC) Rate Statement, It’s among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.

More in Great Britain, Official Bank Rate is due to remain 0.50%. 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 Britain, Asset Purchase Facility, is due to remain 200B. It increases demand for bonds which tends to lower long-term interest rates.

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

In Japan, Monetary Policy Statement, It’s among the primary tools the BOJ uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future rate decisions.

More in Japan, Overnight Call Rate, 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; is about to stay 0.10%.

Also in Japan, Current Account, value between imported and exported goods, services, income flows, and unilateral transfers during the reported month is about to rise by 0.24T.

Finally in Japan, Bank of Japan (BOJ) Press Conference, It’s among the primary methods the BOJ uses to communicate with investors regarding monetary policy.

That’s it for today. Happy forex trading!