After a light Monday, the calendar becomes more crowded today. British inflation figures and American Existing Home Sales among other events. Let’s see what’s up for today:
In Switzerland, SNB Governing Board Chairman Philipp Hildebrand will speak about the central bank’s monetary policy during the crisis. Referring to interest rates and possibly currency interventions will probably move the Swiss Franc.
British inflation is expected ease this time: CPI is predicted to drop from 3.5% to 3.1% (annualized). This outcome will prove that Mervyn King’s dismissal of rising prices was correct, and that no rate hikes are necessary. Core CPI is expected to edge down to 3% and RPI (Retail Price Index), is expected to remain unchanged at 3.7%. And there’s more in Britain:
CBI Realized Sales, a significant gauge of the economy as well, is expected to drop from 23 to 20 points, still a good score. For more on the British Pound, read the GBP/USD forecast.
In Canada, the Leading Index usually moves the loonie. It’s expected to rise by 1%, similar to last month’s 0.9% rise. See more about the Canadian dollar in the USD/CAD forecast.
In the US, Existing Home Sales are predicted to remain stable, with an insignificant drop from 5.05 to 5.01 million sales. This will shake the markets, whatever the outcome. A related figure, HPI (House Price Index), is expected to show a drop of 0.9%.
In Europe, Belgium’s NBB Business Climate is predicted to improve from -7 to -4.1 points. Many analysts are expect the Euro to test lower levels this week. I’m with them.
In New Zealand, Current Account is expected to show a bigger deficit – 1.6 instead of 1.4 billion. This usually moves the kiwi. The day ends with the Japanese Trade Balance which will probably show a smaller surplus than last month.
That’s it for today. Happy forex trading!
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