Forex Daily Outlook – August 23 2010

U.S. Federal Reserve Bank of Kansas President Thomas Hoenig testifies before the House Committee on Oversight and Investigations in Kansas and Euro-Zone Manufacturing and Services Purchasing Managers Indexes start the economic activities this week. Here is an outlook on today’s market moving events.

In the US, Federal Reserve Bank of Kansas President Thomas Hoenig testifies before the House Committee on Oversight and Investigations in Kansas. Key interest rates may be affected and information on future monetary policy could be revealed.

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

In Europe, Manufacturing and Services Purchasing Managers Indexes, two leading indicators of economic conditions measuring the activity of purchasing managers in the manufacturing and services sectors are expected to show signs of a slowdown;

French Flash Manufacturing PMI forecasted to continue its decrease to 53.3 following 53.9 in the previous month and French Flash Services PMI is expected to reach 60.7 points 0.4 points weaker than in July.

German Flash Manufacturing PMI also expecting a small decrease from 61.2 in July to 60.9 and German Flash Services PMI from 56.5 points to 56.3.

The preliminary flash estimate of the Euro-zone manufacturing index forecasted to pull back slightly to 56.3 from 56.7 and services index from 55.8 to 55.6.

Also in  Europe, Consumer Confidence a leading indicator of consumer spending, which accounts for a majority of overall economic activity expected to show further improvement from -14 to -13 still a far from the zero line.

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

That’s it for today. Happy forex trading!

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