Forex Daily Outlook – June 8th 2009

Canadian Hosuing Starts and  German Factory Orders  are the highlights of this relatively quiet day. The markets will also digest the growing possibility of a global reserve currency that will replace the dollar. Outlook for the first day of the forex trading week:

John Lipsky, a senior member of the IMF, said that a global, delinked currency could replace the dollar as the world’s reserve currency. This could hurt the greenback.

In Japan, there a few small figures to start the forex trading week:  Bank Lending,  M2 Money Stock (expected to rise by 2.6%) and Current Account, which is expected to show a surplus of almost 1 trillion Yen.

Later in Japan,  Economy Watchers Sentiment is expected to stay very pessimistic, at 34.

Swiss Unemployment Rate is expected to rise from 3.4% to 3.6%. There numbers probably cause envy in other parts of the world.

European  Sentix Investor Confidence is expected to remain negative, at 30.8 points. The more interesting figure is the  German Factory Orders, which are expected to stay unchanged after making a surprise last month and rising by 3.3%.

For a coverage of the Euro, read:  EUR/USD – Will it Get on its Feet Again?

Canadian Housing Starts are expected to rise to 127K. This is an important figure for USD/CAD and for Canadian crosses.

A Canadian dollar weekly coverage is here:  Canadian Dollar – Took a Break or Changed Direction?

In the US, no figures will be released today, but a speech by  Federal Reserve Governor Daniel Tarullo might shake the greenback.

Near the end of the day, two British figures will be released:  BRC Retail Sales Monitor and  RICS House Price Balance. The latter is expected to be negative, at -52%. IT was worse last time: -59.9%.

That’s it for this quiet day. The week warms up later on. For an overview of major upcoming events, read the Forex Weekly Outlook.