Forex Daily Outlook – March 11th 2009
Daily Look

Forex Daily Outlook – March 11th 2009

Wednesday features economic indicators from all over the globe, with British Trade Balance, Federal Budget Balance, Final GDP from Japan and a rate decision in New Zealand as the top indicators.  

Australia starts the day with the important figure of Home Loans expected to rise by 4%, less than 6.4% in the previous month.

In the morning, Germany will get attention: German  Factory Orders are expected to fall by 1.9%, slowing the dive of 6.9% last month. Also PPI will be released in Germany – drop of 0.1% is expected.

In Britain, the Pound may deepen its falls against the Euro and the dollar after the  Trade Balance will be released. A deficit of 7.5B is expected, similar to last month’s deficit.

In the American scene, Obama’s stimulus plan is expected to be reflected in the  Federal Budget Balance: a huge deficit of $200 billiion is expected, much much more than last month’s deficit of $83B.

And near the end of the day, the Royal Bank of New Zealand is expected to cut the interest rate. Expectations move from a 50bp cut to 75bp cut. Current rate in New Zealand stands at 3.5%.

Any of these predictions will take the kiwi rate below the aussie rate. This could trigger further bullish momentum in the AUD/NZD. The RBNZ will issue an official Rate Statement, and will also hold a Press Conference open for questions.

And just before you think it’s over, Japan will update the GDP. Final GDP for the fourth quarter is expected to be updated to -3.5%, after a Prelim GDP figure of -3.3%. Maybe this devastating updated GDP in Japan will send USD/JPY above 100, a move anticipated for a long time.

Happy Forex Trading!

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.