Forex Daily Outlook – July 7 2010

Canadian Ivey PMI stays above 50 points, Halifax HPI expecting a small rise as well as German Factory Orders . Here is an outlook on today’s events.

In Canada, Ivey PMI: Survey of about 175 purchasing managers, selected geographically and by sector of activity to match the economy as a whole rose to 62.7 points in May expected to continue its growth to 64.2 points.

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

In Europe, Final GDP the first quarter showed a small increase of 0.2% the same rise is likely to appear in the second quarter as well.

More in Europe, German Factory Orders Europe’s largest economy had an excellent performance according to this indicator – growth rates of 5% and 2.8% in the past two months. A small rise of 0.5% is anticipated now.

Finally in Europe, France is expected to continue decreasing its balance of trade deficit by 300 million Euros following a deficit of 4.2B in May.

For more on the Euro, read the  EUR/USD forecast and Casey Stubbs’  latest analysis.

In Great Britain, Halifax HPI: Following the 0.4% dip in May and 0.1% dip in April, house prices increase of 0.6% is expected now.

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

In Japan, core machinery orders as a leading indicator of capital spending are also set to pull back over the month of May after April’s solid 4% gain. A drop of 2.9% is expected now.

More in Japan, Bank Lending experienced a 2.9% dip in May and is now expecting another drop following  Japan‘s banking minister rapped a local prefecture’s plan to ease tough new consumer lending regulations, saying that the rules should be enforced across the country and that no one area should be exempt.

Finally in Japan, money stock, measured by the key M2 aggregate, rose 3.1% from a year earlier in May, accelerating from +2.9%
in April. The same figure is expected for June as well.

According to the forecast Japan’s trade surplus is narrowing to 1.12T trade surplus following 1.38T in May.

That’s it for today. Happy forex trading!

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