Forex Daily Outlook – March 15 2011

Busy day in the US: FOMC Statement, Federal Funds Rate and much more. Let’s see what awaits us today.

In the US, Federal Open Market Committee (FOMC) Statement, It’s the primary tool the FOMC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.

Later in the US, Federal Funds Rate, is due to remain 0.25%. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future.

More in the US, Treasury International Capital (TIC) Long-Term Purchases, is about to rise by 6.4%. Demand for domestic securities and currency demand are directly linked.

Also in the US, Empire State Manufacturing Index, Survey of about 200 manufacturers in New York state to rate the relative level of general business conditions, indicates improving conditions with 16.2 points.

Finally in the US, Import Prices, goods and services purchased domestically is about to rise by 0.6%.

In Canada, Labor Productivity, labor efficiency when producing goods and services is about to rise by 0.2%. Productivity and labor-related inflation are directly linked.

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

In Europe, The Economic and Financial Affairs Council (ECOFIN) Meetings, ECOFIN is the Eurozone’s broadest financial decision making body. The council coordinates economic policies of the 27 member states, and their decisions can have a widespread effect on the Eurozone’s economic health.

Also in  Europe, German Zentrum fur Europaische Wirtschaftsforschung (ZEW) Economic Sentiment, Survey of about 350 German institutional investors and analysts to rate the relative 6-month economic outlook for Germany, indicates optimism with 16.2 points while the ZEW Economic Sentiment is about to be 34.5 points.

For more on the Euro, read the  EUR/USD forecast.

In Australia, Melbourne Institute (MI) Leading Index, level of a composite index based on 9 economic indicators is due to be 0.8%.

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

In Japan, BSI Manufacturing Index, Survey of large manufacturers to rate the relative level of general business conditions; indicates pessimism with -8 points.

Later in Japan, BOJ Monthly Report, It contains the statistical data that the BOJ Policy Board members evaluated when making the latest interest rate decision, and provides detailed analysis of current and future economic conditions from the bank’s viewpoint

That’s it for today. Happy forex trading!