Forex Daily Outlook – August 6th 2009
Daily Look

Forex Daily Outlook – August 6th 2009

Big day today in forex trading: rate decisions from Europe and Britain are in the limelight. There’s lots more. Take a deep breath…

Australia starts the day in a very strong manner: Employment Change is predicted to fall by 18.8K after falling by 21.4K last time. The Unemployment Rate is predicted to rise from 5.8% to 6%. Looking at previous months, there could well be a surprise.

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

In Switzerland,  SECO Consumer Climate is predicted to fall from -38 to -42. The Swiss economy is dragging its legs.

In Europe,  German Factory Orders will be a prelude to the rate decision. After rising by 4.4% last time, it’s expected to print a more modest rise, only 0.6%.

Jean-Claude Trichet is expected to leave the European  Minimum Bid Rate unchanged at 1%. There’s always a chance of surprise from Mr. Trichet, but this time it’s unlikely. Traders will focus on the ECB Press Conference, due at 12:30, with the American Unemployment Claims. EUR/USD will rock during this time.

The rate decision in Britain is due at 11:00, and also here, leaving the  Official Bank Rate at the historic low of 0.5% is the consensus. The BoE has a Quantitative Easing program. Will they shut it down? Expand it? This is what traders will focus on Mervyn King’s MPC Rate Statement.

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

As aforementioned, American Unemployment Claims are due at 12:30 GMT, serving as another prelude for Friday’s Non-Farm Payrolls. Jobless claims are predicted to stay stable, at 587K.

At the exact same time, Canadian Building Permits are released. After leaping by 14.8%, they’re predicted to fall this time, by 1.2%. USD/CAD will rock at this time as well…

For the loonie, check out the Canadian Dollar Outlook.

That’s it for a very busy day. And on Friday, there’s Non-Farm Payrolls, king of forex 🙂

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.