Forex Daily Outlook – May 27 2010

US, Preliminary GDP is expected to rise, Federal Reserve Bank of St Louis President James Bullard delivers a speech in Stockholm and US Unemployment Claims are likely to drop this week. With this we open today’s review.

In the US, Preliminary GDP relates to goods and services produced by the economy, is expected to go up by 0.3% compared to 3.2% in the previous quarter, while Prelim GDP Price Index for goods and services included in GDP is foreseen to remain 0.9% as in the previous quarter.

Later in the US, Federal Reserve Bank of St Louis President James Bullard delivers a speech titled “Policy Challenges for Central Banks in the aftermath of the Crisis” at the SwedBank “Economic Policy in Aftermath of the Crisis” conference, in Stockholm. Expected to affect interest rates and provide hints on future monetary policy.

More in the US, Unemployment Claims released weekly, are expected to drop to 446K following last week’s rise of 471K which is a hopeful sign for the market activity.

Finally in the US, Natural Gas Storage is expected to rise this week from 71B to 101B.

In Canada, Corporate Profits, released quarterly are expected to follow April’s rise of 7.9%.

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

In Europe, German Preliminary Consumer Price Index is expecting to rise by 0.1% after the unexpected drop of -0.1% in April.

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

In Great Britain, Nationwide House Prices measuring the change in the selling price of homes with mortgages backed by Nationwide is about to drop from 1.0% to 0.5% which affects the housing industry.

More in Great Britain, CBI Realized Sales is expected to remain 13 points.

Later in Great Britain, GfK Consumer Confidence is expecting a 1 point rise from -16 to -15 points although it still requires improvement.

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

In Switzerland, Employment Level is expected to rise by 10K this quarter to reach employment of 3.97M which is a good for the Swiss market.

In Australia, CB Leading Index measuring the change in the level of a composite index based on 7 economic indicators is likely to remain -0.3% this month as well.

More in Australia, Private Capital Expenditure is expected to drop from 5.5% to 2.6% this month indicating slow market activity.

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

In New Zeeland, Building Consents  released monthly, are anticipating an additional decrease of -0.4% this month.

In Japan, Household Spending is anticipating 1.9% cutoff following last month’s rise of 4.4%.

More in Japan, Tokyo Core CPI is expected to improve this month by 0.4% from -1.9% to -1.5% while the National Core CPI  is expecting a drop of -1.3%, 0.1% more than in April badly affects the JPY.

Finally in Japan, Retail Sales  are also expecting a fall of 1% from 4.7% to 3.7% this month and Unemployment Rate is foreseen to remain 5.0% as in April.

That’s it for today. Happy forex trading!

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