Forex Daily Outlook – May 20 2010

US Philly Fed Manufacturing Index is released; Unemployment Claims are expected to drop once again, CB Leading Index is heading for a decrease. This and more awaits us today.

In the US, Philly Fed Manufacturing Index, survey of about 250 manufacturers in the Philadelphia Federal Reserve district which asks respondents to rate the relative level of general business conditions, measuring the level of a diffusion index based on surveyed manufacturers in Philadelphia, is about to rise up to 21.9 from 20.2. It’s a leading indicator of economic health and early signal of future economic activity such as spending, hiring, and investment.

More In the US, Unemployment Claims a data released weekly that measures the number of individuals who filed for unemployment insurance for the first time during the past week; is about to drop to 43,000 from 45,000 an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions;

Later in the US, CB Leading Index is expected to drop from 1.4% to 0.3% and Natural Gas Storage will probably remain 94B.

In Canada, Leading Index designed to predict the direction of the economy is expected to drop to 0.7% after the previous rise of 1% in April.

Later in Canada, Bank of Canada’s Review is released quarterly reporting about the economy and central banking, from the Department of Monetary and Financial Analysis.

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

In Europe, German PPI is expected to drop by 0.1% from 0.7% in April signals lower inflation rates.

Also in  Europe, Consumer Confidence is expected to continue its decrease by an additional point arriving at -16 points.

For more on the Euro, read the  EUR/USD forecast and Casey Stubbs’  latest analysis.

In Great Britain, Retail Sales are expected to drop by 0.1% from April’s 0.4% indicating less consumer purchases.

Read more about the Pound in the  GBP/USD forecast.

In Switzerland, ZEW Economic Expectations is expected to remain in the realm of 53.4 points as in April showing an overall stable market activity.

More in  Switzerland,   SNB Governing Board Vice-Chairman Thomas Jordan speaks about monetary policy and its impact on the real economy, in Wettingen. Key Interest rates are to be affected and information revealed concerning future monetary policy.

In Australia, Melbourne Institute Inflation Expectations are believed to remain 4% as in April. Malcolm Edey will speak tomorrow.

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

In New Zealand, Annual Budget Release outlines the government’s budget for the year, including expected spending and income levels, borrowing levels, financial objectives, and planned investments in case Domestic government spending is high it indicates a busy and healthy market activity.

More in New Zealand, Visitor Arrivals is hoped to remain 1.1% as in April’s rise after a continuing decrease in the previous months.

That’s it for today. Happy forex trading!

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