Forex Daily Outlook – June 23 2010

Today’s highlight is the  FOMC  statement that accompanies the American rate decision, followed by GfK German Consumer Climate in Europe and more exciting news. Let’s see what awaits us today.

In the US, New Home Sales expected to drop 69K this month reaching 435K after the sharp rise in May’s report.

More in the US, Federal Open Market Committee  statement is issued providing data on monetary policy.

Finally in the US, Federal Funds Rate measuring interest rate at which banks lend balances held at the Federal Reserve to other banks overnight is expected to remain 0.25% and Crude Oil Inventories expected to remain 1.7M as last week.

In Canada, Following the rise in May, Core Retail Sales  are likely to remain unchanged this month reaching 1.7% the same as Retail Sales is expected to remain around 2.1%.

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

In Europe, French Flash Manufacturing PMI expected to drop from 55.8 to 55.5 and French Flash Services PMI is also expected a slight decrease of 0.2 points.

More in Europe, GfK German Consumer Climate is foreseen a drop of 0.2 points but all in all it is pretty steady in the last few months, German Flash Manufacturing PMI is also expected to descend from 55.8 to 55.3 and German Flash Services PMI assumed to decrease by 0.3 points since previous month.

Also in Europe, Belgium National Bank of Belgium (NBB) Business Climate, rising up from -4.9 to -5.1 on a survey that measures the Level of a composite index based on surveyed manufacturers, builders, services and trade-related firms of about 6,000 businesses which asks respondents to rate the relative level of current business conditions and expectations for the next 6 months.

Finally in Europe, Flash Manufacturing PMI is expected to drop points reaching 55.5 and Flash Services PMI is likely to stabilize on 56.2 as in May.

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

In Great Britain, Bank of England Monetary Policy Committee  has once again decided to maintain rates at 0.50%.

More in Great Britain, BBA Mortgage Approvals are expected to continue their growth from 35.7K to 37.3K bringing optimism to the housing market.

Later in Great Britain, CBI Realized Sales is expected to go up by 1 point reaching -17 following the steep fall from May.

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

Moving to New Zealand,  Current Account that is that is released quarterly and measures the difference in value between imported and exported goods; is about to rise up from -3.75 Billion on the previous quarterly to -0.30 Billion.

In Japan, Bank of Japan (BOJ) Governor Masaaki Shirakawa, speaks at the Annual General Meeting of the Credit Cooperatives, in Tokyo; as head of the central bank, affects the controls short term interest rates.

More in Japan, Trade Balance drop down from 0.73 T to 0.64 T, Released monthly and measures the difference in value between imported and exported goods during the reported month.

That’s it for today. Happy forex trading!

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