Forex Daily Outlook – May 29th 2009

This week’s strong moves come to a peak today, with American Prelim GDP. There are lots of other figures out there. Let’s see what’s up:

Australian  Private Sector Credit starts the day with an expected rise of 0.2%.

In Europe,  German Retail Sales are predicted to rise by 0.5%, after falling by 0.4% last time. Another important figure in Europe is the  CPI Flash Estimate, expected to be stable, even too stable, at 0.2%.

ECB President Jean-Claude Trichet will speak in  Marrakech and might talk about recovery. Also in Europe:  M3 Money Supply and  Private Loans. Will EUR/USD break above 1.40?

In Switzerland, the  KOF Economic Barometer is still expected to be negative, at -1.78.

In Britain, the final  Nationwide HPI is due today. Expectations are for a fall of 0.9% in British House Prices. GBP/USD has fallen with the recent dollar sweep. This is the last major figure for the Pound, and might be seeing a “Friday effect”.

Read more about the Pound:  Pound at New Ground – What’s Next?

Canadian Current Account is predicted to show a deficit of 10.5 billion, much deeper than last month’s 7.5B.

The cream of the whole week is due at 12:30 GMT: American Prelim GDP, or second release if you wish is published. It’s currently expected to be revised upwards to a contraction of only 5.5%, after the initial Advance GDP was set at a squeeze of 6.1%.

This completes the serious of key events for the US dollar. Read my special coverage:  Contraction or Retraction?

It isn’t over yet in forex trading this week:  Chicago PMI is predicted to rise from 40.1 to 42.3, and 10 minutes later  Revised UoM Consumer Sentiment is predicted to round upwards from 67.9 to 68. There’s a good chance that these figures will offer a good surprise.

That’s it. Happy Forex Trading!