Forex Daily Outlook – May 2 2011

ISM Manufacturing Index in the US and Purchasing Managers Index in Europe are the major events this day. Here is an outlook on the market-movers awaiting us.

In the US, ISM Manufacturing Index, the Institute for Supply Management is an important measurement indicator for manufacturing activity on the previous month. Positive growth white 59.5 points and 83 points are expected in the ISM prices Paid that can affect the future inflation.

Later in the US, Construction Spending important Monthly indicator for housing and public development spending. Is expected to rise by 1.1%.

In Canada, Raw Material Price Index that is Measuring Canadian manufacturers prices for raw materials, and can affect the inflation rates, is about to rise by 0.7%.

More in Canada, PPI (Producer Price Index) measures changes in prices of finished products a good indicator of consumer inflation. Is expected to remain 0.7% like on the previous month.

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

In Europe, Purchasing Managers Index  Monthly release measuring business conditions purchasing managers from Illinois, Indiana and Michigan. An early indicator of ISM indicates expansion with 57.7 points.

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

In Switzerland, Retail Sales, A major indicator of consumer spending, is about to remain 1.5% similar to the previous month.

Later in Switzerland, SVME Manufacturing Purchasing Managers Index (PMI), signals appreciates white 59/8 points.

In Australia, House Price Index (HPI), measuring process of residential housing indicating trends in prices and mortgages, in the quaintly index is about to reduce to -0.5%, while in the yearly is about to rise to 1.6%.

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

In Japan, Labor Cash Earnings Indicator by the Ministry of Health shows the average income for each employee. Is about to remain 0.3% similar to the previous month.

Indicator released by the Ministry of Health, Labour and Welfare shows the average income, before taxes, per regular employee. It includes overtime pay and bonuses but it doesn’t take into account earnings from holding financial assets nor capital gains. Higher income puts upward pressures over consumption, therefore an increasing trend in earnings is inflationary for the Japanese economy. A higher than expected reading is bullish for the yen, while below the market consensus the result is bearish.

That’s it for today. Happy forex trading!