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The busy forex trading week comes to an end with significant figures from the US this time: retail sales and consumer sentiment will set the tone for the close of the week. Let’s see what’s up for today:

EUR/USD is suffering and losing ground this week. I wonder if it will indeed close significantly lower. Casey Stubbs supplies an updated technical analysis for the pair, and notes the next support line.

Chinese figures pour in at the start of the day. The most notable figure is Industrial Production. The year-over-year production is expected to show growth of 18.2%, higher than last month’s results. A better will outcome will assist the Aussie, after the good employment figures yesterday. At a larger extent, good figures will weaken the dollar – more risk appetite.

In Britain, producer prices are expected to rise. PPI Input is predicted to show a rise of 0.6%, after a 2.6% leap last month. PPI Output is more stable – the 0.2% rise last month is be followed by a 0.4% rise this time. The Pound got a blow from Alistair Darling’s budget.

Jean-Claude Trichet, head of the European Central Bank, will make a public appearance, and will probably address the credit problems that Greece and Spain are facing.  For more on the Euro, read the EUR/USD forecast.

In Canada, NHPI is expected to continue rising, after a 0.5% rise last month. Looking at previous housing figures in Canada this week, this one should be good as well.

American Retail Sales are expected to show growth of 0.6%, following a 1.4% rise last month. Also Core Retail Sales, no less important, are predicted to show the same rise. Note that the core figure rose only 0.2% last month.

The preliminary Consumer Sentiment from the University of Michigan is expected to rise from 67.4 to 68.7 points, continuing the cautious trend.  Also in the US, Import Prices are expected to rise by 1.2% and Business Inventories to dip by 0.3%.

That’s it for today. Happy forex trading!

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