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A very busy day is expecting us: the FOMC Statement will set the direction of the dollar for the near future. In addition, Trade Balance in Canada and the US, and employment data in Britain are key events. And there’s more. Let’s dive in:

Australian Westpac Consumer Sentiment starts the day. This is the second confidence figure, after yesterday’s NAB Business  Confidence. Half an hour later,  Wage Price Index will be released in the land down under. This quarterly indicator is predicted to show a rise of 0.8%, exactly like last time.

For more on the Aussie, check out the AUD/USD Outlook.

After interest rates remained unchanged, another broad view will be released in Japan:  BOJ Monthly Report.

In Europe, Industrial Production is expected to rise by 0.4%, after last month’s rise of 0.5%. For more on the Euro, check out the EUR/USD Outlook.

In Britain, the earliest and most important employment indicator will be published today:  Claimant Count Change is predicted to rise from 23.8K to 25.5K. This figure will shake GBP/USD. At the same time, the late release of the Unemployment Rate (from 7.6% to 7.7%) and the  Average Earnings Index will be published.  All of this happens at 8:30 GMT.

One hour later, cable traders will await the  BOE Inflation Report. Will it show deflation? We might get answers at the accompanying speech by BOE Governor Mervyn King.

For more on the British Pound, read the GBP/USD Outlook.

Across the Atlantic, we have a double-feature Trade Balance release. American trade balance is expected to show a deficit of 28.4 billion, while the Canadian deficit is expected to squeeze to only 0.6 billion. Another Canadian figure is released at the same time: NHPI, which is expected to remain unchanged. USD/CAD will rock at this time, 12:30 GMT.

For more on the loonie, read the Canadian Dollar Outlook.

Later in the US, the Federal Budget Balance is released just 15 minutes before the FOMC Statement. The balance is expected to be unbalanced, showing a deficit of 148 billion.

The long-awaited FOMC Statement makes many traders curious: will Bernanke stop the dollar printing scheme? Or will he follow the BOE with an expansion of Quantitative Easing? Economists are expecting a hint about future rate hikes. The interest rate, or Federal Funds Rate, isn’t expected to change this time…

That’s it for today. Happy forex trading!

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