Forex Daily Outlook – February 22nd 2010

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There’s a busy week ahead, but Monday’s calendar is quite light. Here’s an outlook for the few events and the factors that will impact trading.

Ben Bernanke shocked the financial markets near the end of last week with a hike of the interbank discount rate. While Federal Reserve officials downplayed this move and announced it after the New York close, it had a strong effect on forex trading. Some currencies took it harder than others.

The Greek crisis is on the sidelines, but it might return to the limelight, especially on a day with few events. It currently seems contained, and affects only EUR/USD, but it could impact other currencies as well.

Now for the events:

Australia’s New Motor Vehicle Sales are posted a nice rise last month, and are expected to continue this trend. For more on the Aussie, which is expecting more rate hikes, read the AUD/USD forecast.

In Canada, BOC Senior Deputy Governor Paul Jenkins will make a public appearance and might refer to the central bank’s rate policy. This might move the loonie, currently at the critical 1.04 line. Read more in the Canadian dollar forecast.

Japan closes the day with the Monetary Policy Meeting Minutes which follow an unexciting rate decision. There are many discussions regarding the carry trade, and the yen’ role in it.

That’s it for today. Major events start pouring in tomorrow. Happy forex trading!

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About Author

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 the 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.

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