Forex Daily Outlook July 16 2012 – Bernanke talks

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US inflation data, Ben Bernanke’s testimony before the US Senate and German ZEW Economic Sentiment are the major market-movers. Let see what awaits us today.

In the US, Inflation data. CPI dropped 0.3% in May following a flat reading in April. Economists predicted a smaller decline of 0.2%. Meantime Core CPI gained 0.2% in line with predictions following the same score in the previous month. CPI is predicted to remain unchanged while Core inflation is expected to gain 0.2%.

More in the US, Ben Bernanke head of the Federal Reserve is scheduled to testify before the US Senate in Washington DC the  semi-annual monetary policy report. His words cause major volatility in the market.

Later in the US, TIC Long-Term Purchases Long term securities purchased by foreigners contracted IN April to 25.6 billion from 36.0 billion in March despite predictions for an increase to 45.3 billion. An increase to 45.7 billion is expected this time.

Further in the US. Capacity Utilization Rate measuring the manufacturing resources used decreased to 79.0% in May from 79.2% in April, lower than the 79.2% anticipated. Economists expect utilization to reach 79.2% this time.

More in the US, Industrial Production decline unexpectedly in May by0.1% compared to 1.05 gain in the previous month. An increase of 0.4% is predicted now.

Finally in the US, Sandra Pianalto President of the Federal Reserve Bank of Cleveland is scheduled to speak at the Tenth ERIE Economic Conference in Pennsylvania.

InCanada, Overnight rate and BOC rate statement. The BOC expected to maintain its overnight interest rate at 0.1%. No change in monetary policy is predicted.

More in Canada, Manufacturing Sales dropped unexpectedly 0.8% in April from 19% increase in March while economists predicted an increase of 0.5%. A rise of 0.7%  is anticipated this time.

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

In Europe, German ZEW Economic Sentiment. German analysts’ sentiment plunged in June to -16.9 from10.8 in May amid the EU debt crisis while economists predicted a drop to 3.8. A further decline to -17.3 is predicted now.

Finally in Europe, ZEW Economic Sentiment Economists sentiment regarding the Euro-zone future economic conditions, nose dived to-20.1 in June following-2.4 in May. A small improvement to -18.3 is predicted this time.

For more on the Euro, read the Euro to dollar forecast.

In Great Britain, Mervyn King BOE Governor is scheduled to testify before the Parliament’s Treasury Committee, in London. His words may cause volatility in the market.

More in the UK, Inflation data. CPI declined to 2.8% in May, following 3.0% in April in the Meantime RPI consumption related inflation data declined to 3.1% in May from 3.5% in the previous month indicating a slowdown in inflation. CPI is expected to remain 2.8% while RPI is expected to decline to 3.0%.

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

In Australia, Monetary Policy Meeting Minutes are to be released explaining the previous rate decision including detailed analysis of current economic conditions.

More in Australia, New Motor Vehicle Sales jumped 2.4% in May following 1.0% decline in March.

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

In Japan, Monetary Policy Meeting Minutes are to be released explaining the previous rate decision including detailed analysis of current economic conditions.

Read more about the yen in the USD/JPY forecast.

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About Author

Anat Dror – Senior Writer

I conceptualize, design and create multi-lingual websites. Apart from the technical work, my projects usually consist of writing content for these sites in English, French and Hebrew.

In the past, I have built, managed and marketed an e-learning center for language studies, including moderating a live community of students.

I’ve also worked as a community organizer

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