Forex Daily Outlook – January 27 2011

We end the week with interesting events such as Advance GDP in the US and much more. Let’s see what awaits us today.

In the US, Unemployment Claims, number of individuals who filed for unemployment insurance for the first time during the past week; is about to rise by 5K. An important signal of overall economic health because consumer spending is highly correlated with labor-market conditions

Later in the US, Durable Goods Orders, new purchase orders placed with manufacturers for durable goods; is about to rise by 1.9%, while the Core Durable Goods Orders (excluding transportation items) is about to reduce by 2.7%. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders

Finally in the US, Pending Home Sales, number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction, is about to reduce by 2.7%. the sale of a home triggers a wide-reaching ripple effect.

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

In Europe, German Prelim Consumer Price Index (CPI), price of goods and services purchased by consumers; is about to reduce by 0.4%. Consumer prices account for a majority of overall inflation.

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

In Great Britain, Nationwide House Price Index (HPI), selling price of homes with mortgages backed by Nationwide; is about to droop down by 0.6%. Rising house prices attract investors and spur industry activity

More in Great Britain, Confederation of British Industry (CBI) Realized Sales, Survey of about 160 retail and wholesale companies to rate the relative level of current sales volume, indicates higher sales volume of 39 points.

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

In Australia, National Australia Bank (NAB) Quarterly Business Confidence, Survey of about 1,000 businesses which asks respondents to rate the relative level of current business conditions and expectations for the near and medium-term future; indicates improving conditions with 9 points.

For more on the Aussie, read the  AUD/USD forecast.

World Economic Forum (WEF) Annual Meetings, WEF annual meetings are held in Davos and attended by central bankers, prime ministers, finance ministers, trade ministers, and business leaders from over 90 countries. Most meetings are open to the press and officials usually talk with reporters throughout the day. Comments from central bankers and other influential officials can create significant market volatility.

That’s it for today. Happy forex trading!