Forex Daily Outlook – February 25 2011

Revisions of GDP in both the US and the UK are the main events today, and will provide a strong end to a very volatile week. Let’s see what’s awaiting us today.

In Britain, GfK Consumer Confidence scored -28 points, slightly below expectations for a print of -27 points. MPC member Adam Posen, who is a dove, will speak soon.

Later in Britain, we’ll get the second release of GDP. It will probably confirm the contraction of 0.5% reported in the initial release. Also in Britain, preliminary business investment is likely to drop by 0.3%.

For more on the pound, see the GBP/USD forecast.

Throughout the day, Germany’s states will release their consumer prices indices. The overall number is likely to show a rise of 0.5%. This is the preliminary release. In France, Consumer Spending is expected to drop by 0.7%.

Later in Europe, the M3 Money Supply is predicted to rise by 2.1%, stronger than last month. For technical levels on the euro, see the EUR/USD forecast.

In Switzerland, the KOF Economic Barometer is expected to tick down from 2.10 to 2.08. This might temporarily stop the free fall of USD/CHF.

In the US, the main event is the second release of GDP for Q4. Economists expect an upwards revision from 3.2% to 3.3%, as economic indicators came out better than expected.

Also in the US, the revised version of consumer sentiment from the University of Michigan is expected to be positive, with an improved 75.5 points instead of 75.1.

Closing the day, FOMC member Janet Yellen will speak.

That’s it! Have a great weekend and happy forex trading.