Forex Daily Outlook – February 2nd 2010
Daily Look

Forex Daily Outlook – February 2nd 2010

The greenback took a break from rises yesterday, on risk appetite trading. Today’s highlights are a rate decision in Australia and American Pending Home Sales. Let’s see what’s up:

Australia starts the day with the NAB Business Confidence, which is finally released. This will be overshadowed by a much more important event: the rate decision in Australia. Glenn Stevens is expected to raise the interest rate once again – to 4%, the fourth consecutive rate hike. This move is doubted by some economists.

If the RBA leaves the Cash Rate unchanged, this could seriously hurt the Aussie. For gains, the Aussie will need a boost from future prospects. The accompanying RBA Rate Statement might supply clues. Read the AUD/USD forecast for more.

In Switzerland, the SECO Consumer Climate is expected to improve, and might help the Swissy, against the will of the SNB.

German Retail Sales are predicted to rise by 0.9%, similar to last month’s rise. The Euro needs good news. Also in Europe, PPI is predicted to remain unchanged.

For more on Euro/Dollar, read the EUR/USD forecast.

In Britain, Construction PMI is predicted to edge up from 47.1 to 47.7 points. Note that yesterday’s Manufacturing PMI was better than expected, but it didn’t really help the Pound.

For more on GBP/USD, read the British Pound forecast.

American Pending Home Sales plunged by 16% last month. This outstanding drop isn’t expected to be followed by another one. A normal, moderate rise of 0.4% is predicted this time.

That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

Yohay Elam

Yohay Elam

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 a 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.