Forex Daily Outlook – May 27th 2009
Daily Look

Forex Daily Outlook – May 27th 2009

American  Existing Home Sales stand out in today’s economic calendar. Trading will still be affected by the scary moves by North Korea, as well as other indicators. Let’s  see what’s up.

North Korea made a nuclear test and also sent two short range missiles. Who knows what else Kim is planning. The great fears cause risk aversion and dollar buying.

Australia’s  Construction Work Done starts the day. After rising by 1.7% in the previous quarter, it’s expected to fall  by 3% this time.  In its neighbor, New Zealand,  NBNZ Business Confidence is a major indicator for the economy, and will sure shake the kiwi.

BOJ Governor Masaaki Shirakawa will speak in Japan. Will he continue to send a message of cautious optimism?

British  Nationwide HPI  is a significant indicator for housing. Also  BBA Mortgage Approvals will be closely watched by traders of the cable. For a special coverage of this week in the British Pound, read  Pound at New Ground – What’s Next?

In Europe,  German Prelim CPI is expected to show further weakness, and rise by only 0.1%. The EUR/USD is struggling around 1.40.

American  Existing Home Sales are the highlight of the day. They’re expected to rise from 4.57 million to 4.65 million. After yesterday’s CB Consumer Confidence made a huge surprise, and ignited risk appetite, this figure will move the markets.

Also in the US,  HPI (a late figure) is expected to rise by 0.2%.  US Treasury Secretary Timothy Geithner is known for saying something he didn’t mean to say and moving the markets. He’ll be speaking about the new  tax credit program, and he might say something surprising.

Just before the end of the day,  Retail Sales will be published in the land of the rising sun. Japanese  Retail Sales are predicted to continue falling, this time by 3.2%. Despite some optimism, the Japanese economy still didn’t touch the bottom.

Happy forex trading!

Read more about the dollar:  Contraction or Retraction?

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.