Forex Daily Outlook – March 24th 2009

The economic calendar is fully packed on Tuesday: PMI data from Europe, price information from Britain and many major speeches fill this day. Take a deep breath…

As the day starts in Greenwich, Japanese  Monetary Policy Meeting Minutes will be published. After the Swiss and American moves to devalue their currencies, do the heads of BOJ also think of doing it?

Europe provides lots of data:  French Consumer Spending is expected to fall by 1.1%, after last month’s rise of 1.8%.

At 8:00 GMT, PMI data will flood from Europe: first French  Flash Manufacturing PMI (35) and  French Flash Services PMI (40.2). At 8:30 GMT, Germany will also provide these figures: Manufacturing PMI is expected to stand at 32.1 and Services PMI at 41.2.

At 9:00, European Current Account will be published and is expected to show a deficit of 6.7 billion. At the same time PMI figures will be published for the whole of Europe:  Flash Manufacturing PMI is  expected to stay unchanged, at 33.5, while  Flash Services PMI is expected to stand at 39.2.

After all these figures from Europe, it’s Britain turn: British CPI is predicted to rise by 2.6% (annually adjusted). A lower figure won’t be a big surprise. Core CPI is expected to show a smaller rise – of 1.3%.

Another interesting figure from the UK is  BBA Mortgage Approvals which is predicted to stand at 22.3K. Also the  Inflation Report Hearings will also be listened to by traders of the cable.

In the US,  Federal Reserve Bank of Chicago President Charles Evans will talk and might relate to the FOMC’s  sharp move to print money. This will be a warm up for  Ben Bernanke’s testament.  . This is a chance to explain the sharp move to print money. Traders will pay attention to this important event.  

Also in the US:  HPI  is expected to be negative, falling by 0.7%.  Richmond Manufacturing Index is expected to stay stable, at -52.

And the speeches aren’t over. There are three important speeches:  BOE Governor Mervyn King is testifying before the House of Lords.  SNB Governing Board Chairman Jean-Pierre Roth will also talk and might move the USD/CHF. And in Britain,  External BOE MPC Member David Blanchflower will talk about the economy.

 

And just before the end of the day, Japanese Trade Balance will be published. Expectations are for a deficit of 0.28 trillion.