The week ends with more important releases: British and Canadian retail sales and American inflation numbers among other releases. Let’s review the events:
Commodity currencies enjoyed a good week, riding on less fear in the markets. Will they manage to close the week higher? In recent weeks, Fridays were quite crazy.
Following the rate decision yesterday, the BOJ releases its monthly report. This might move the yen after the rate decision didn’t have too much impact.
In Europe, purchasing managers’ indices will pour in during the morning. France starts with its Flash Manufacturing PMI and Flash Services PMI. This will be followed by the same data from Germany and then for the whole continent. All the scores are above 50 points, meaning expectations for economic expansion. All the numbers are predicted to edge up. For more details and also technical levels for the Euro, read the EUR/USD forecast.
And there’s more in Europe: German PPI is expected to show a rise of 0.4% in prices, after a drop of 0.1% last month. The European Current Account is expected to turn negative, showing a deficit of 0.6 billion.
In Britain, an eventful week ends with the release of retail sales. British sales are predicted to drop by 0.5%, after rising last months. This might be the direct result of the rise in unemployment reported earlier this week.
Moving across the Atlantic, Canadian retail sales are predicted to jump by 1.1% after dropping last month. Also Core retail sales are expected to rise, but at a more moderate pace – 0.4%. Also note the Canadian Leading Index which is predicted to continue the positive trend and rise by 0.6%.
For more on the loonie, read the Canadian dollar forecast.
In the US, we have a major release to close the week: US Consumer Price Index is predicted to rise by 0.3%, more that last month’s 0.1% rise. Core CPI is expected to rise by 0.2%.
Members of the Federal Reserve began talking about exit strategies from the crisis. These focused on the selling mortgage bonds that the central bank holds. They didn’t talk about a rate hike, which can only come after a significant rise in prices. It probably won’t be seen today.
That’s it for today. Happy forex trading!
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