Forex Daily Outlook – December 16 2010

Building Permits, Unemployment Claims and Philly Fed Manufacturing Index in the US, are only a few of the interesting events that awaits us toddy.

In the US, Unemployment Claims, individuals who filed for unemployment insurance for the first time during the past week is about to rise by 1K. Consumer spending is highly correlated with labor-market conditions.

Later in the US, Building Permits, number of new residential building permits issued during the previous month is due to be 0.57M similar to the previous month. Excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.

More in the US, Philly Fed Manufacturing Index, Survey of about 250 manufacturers in the Philadelphia Federal Reserve district which asks respondents to rate the relative level of general business conditions; is about to reduce to14.6 but still indicates improving conditions.

Moreover in the US, Housing Starts, number of new residential buildings that began construction during the previous month is about to be 0.55M.

Finally in the US, Current Account, ted and exported goods, services, income flows, and unilateral transfers during the previous quarter is about to rise by 3B, and indicates that foreigners are buying more of the domestic currency to execute transactions in the country.

In Canada, Foreign Securities Purchases, value of domestic stocks, bonds, and money-market assets purchased by foreigners during the reported month, is about to reduce by 1.35B.

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

In Europe, Flash Manufacturing Purchasing Managers’ Index (PMI); Survey of about 600 purchasing managers to rate the relative level of business conditions, is about to be 55.3 points in Europe, 58.2 points in German and 58 points in French. Purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

Also in  Europe, Flash Services Purchasing Managers’ Index (PMI), Survey of about 600 purchasing managers to rate the relative level of business conditions, is about to be 55.3 points in Europe, 59.1 points in German and 55.5 points French. Purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

Later in Europe, Consumer Price Index (CPI), goods and services purchased by consumers; is about to be 1.9% similar to the previous month, while the Core CPI (excluding food, energy, alcohol, and tobacco) is about to rise by 0.1%. Consumer prices account for a majority of overall inflation.

Finally in Europe, EU Economic Summit Day 1.

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

In Great Britain, Monetary Policy Committee (MPC) Member Posen due to speak at the Institute of Directors Christmas breakfast, in Billericay. Can affect the nation’s key interest rates.

More in Great Britain, Retail Sales, total value of inflation-adjusted sales at the retail level; is due to be 0.5% similar to the previous month. Primary gauge of consumer spending, which accounts for the majority of overall economic activity.

Finally in Britain, Consumer Inflation Expectations, Survey of about 2,000 consumers, conducted by GfK, which asks respondents where they expect prices to be 12, is 3.4%. Expectations of future inflation can manifest into real inflation, primarily.

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

In Switzerland, Swiss National Bank (SNB) Monetary Policy Assessment, primary tool the SNB Governing Board 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; and later followed by SNB Press Conference.

Later in Switzerland, Libor Rate Is 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.

In Australia, Melbourne Institute (MI) price of goods and services to change during the next 12 months is due to be 3.1%. Expectations of future inflation can manifest into real inflation, primarily because workers tend to push for higher wages when they believe prices will rise.

For more on the Aussie, read the  AUD/USD forecast.

In New Zealand, NBNZ Business Confidence, Survey of about 1,500 businesses which asks respondents to rate the relative 12-month economic outlook. Indicates optimism with 33.2 points.

That’s it for today. Happy forex trading!

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