Forex Daily Outlook – February 3 2011

Very interesting events coming up, Fed Chairman Bernanke Speaks in Washington DC, ECB Press Conference in Europe and much more. Let’s see what awaits us today.

In the US, Unemployment Claims, individuals who filed for unemployment insurance for the first time during the past week; is about to droop down by 34K.

Later in the US, Federal Reserve Chairman Ben Bernanke, Due to deliver a speech titled “The Economic Outlook and Macroeconomic Policies” at the National Press Club Luncheon, in Washington DC; head of the central bank, controls short term interest rates and influence the nation’s currency value.

Later on in the US, The Institute for Supply Management (ISM), Non-Manufacturing Purchasing Managers’ Index (PMI); Survey of about 400 purchasing managers to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories, indicates industry expansion with 57.2 points.

More in the US, Prelim Nonfarm Productivity, labor efficiency when producing goods and services, excluding the farming industry; is about to droop down by 0.1%.

Moreover in the US, Prelim Unit Labor Costs, price businesses pay for labor, excluding the farming industry is about to rise by 0.5%.

Finally in the US, Factory Orders, value of new purchase orders placed with manufacturers is about to droop down by 0.9%. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.

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

In Europe, Minimum Bid Rate is due to remain 1%. 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.

Also in  Europe, European Central Bank (ECB); Press Conference, It’s the primary method the ECB uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, such as the overall economic outlook and inflation. Most importantly, it provides clues regarding future monetary policy.

Finally in Europe, Retail Sales is about to rise by 1.2%. Primary gauge of consumer spending, which accounts for the majority of overall economic activity.

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

In Great Britain, Services Purchasing Managers’ Index (PMI); Survey of purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories, indicates industry expansion with 51.2 points.

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

In Switzerland, Trade Balance, value between imported and exported goods during the reported month is about to reduce by 70B.

That’s it for today. Happy forex trading!