Forex Daily Outlook – May 31 2010
Daily Look

Forex Daily Outlook – May 31 2010

The week begins with several important events, despite a holiday in the US and Britain. Canada’s GDP and a speech from Trichet are the highlights of the day.

Japan’s Prelim Industrial Production rose by 1.3%, half of early expectations that stood on 2.6%. This weakens the yen – USD/JPY is making an upwards move. There’s more in Japan:

Average Cash Earnings are predicted to rise by 0.9%, similar to last month. Also Japan’s governor of the central bank, Masaaki Shirakawa, is expected to speak during the day.

In Australia, the MI Inflation Gauge rose by 0.5%, higher than last month.  HIA New Home Sales continue the flow of Australian releases. They are followed by the Private Sector Credit, an important figure which is expected to rise by 0.5%, exactly like last month.

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

In Australia’s neighbor, New Zealand, the NBNZ Business Confidence will rock the markets.

Moving to Europe, Jean-Claude Trichet will provide a strong start for the Euro as he speaks before a grand audience in an event by the Korean central bank.

The economic data will begin flowing afterwards: European M3 Money Supply is expected to drop by 0.2%, double last month’s drop, weighing on the currency. Private Loans are expected to drop as well.

The more important European event is the CPI Flash Estimate, which is predicted to show a year-over-year of 1.6% in prices, higher than last month, but still not really inflationary.

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

In Canada, the busy week starts tomorrow with the release of the monthly GDP – Canada’s economy is expected to show a growth rate of 0.5%, higher than last month’s 0.3%. Note that this is the report for March – concluding the first quarter of 2010.

Also in Canada, the RMPI (Raw Materials Price Index), is expected to rise by 1.3%, higher than the 0.8% rise last month. As commodity prices calmed down in May, a change will probably be seen in next month’s report.

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

After the Americans and the British return from their holidays, the calendar will become busier. Stay tuned!
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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.