Forex Daily Outlook – May 5 2011

A busy day awaits us forex traders with US Unemployment Claims, Ben Bernanke’s speech and UK and Euro-Zone Rate decision . Let’s see what awaits us today.

In the US, Chairman Ben Bernanke is expected to deliver a speech. His words influence the market.

Also in the US, Later in the US, Non-farm Productivity, quarterly measuring labor work per hour, is expected to reduce to 0.5%.

Later in the US, Unit labor is the average cost of labor per product calculated by dividing total labor costs including benefits by real production, an indicator of inflation dropped 0.6% in the first quarter and is expected to climb 2.1% now.

Finally in the US, Unemployment Claims, a weekly report measuring the number of Americans filing new Unemployment Claims indicating the overall job market condition, 410K is forecasted, while the Counting Unemployment Claims is expected to be 3.637K.

In Canada, Building Permits, measuring the number of licenses for new building projects indicating future trends in the construction sector surged by 9.9% in February a decrease of 2.4% is forecasted now.

More in Canada, Ivey Purchasing Managers Index comparing purchases of companies on a monthly base through a survey of 175 executives an indicator of economic growth and future trends climbed to 73.2 in March above predictions. It is forecasted to drop 8.1 pts to 65.1.

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

In Europe, German factory orders, measuring the long-lasting orders in the manufacturing sector an indicator of inflation gained 2.4% in February is expected to decrease 2.0% to 0.4%. On a yearly base, manufacturing grew by 16.5% and is expected to grow further to 20.1%.

Also in  Europe, ECB Rate Decision is predicted to remain 1.25% following April’s rate hike of 0.25%.

For more on the Euro, read the  EUR/USD forecast.

In Great Britain, Services PMI a monthly indicator of UK Service sector based on a survey of purchasing managers on future orders enables predicting future trends increased by 4.5 pts to 57.1 in March and is forecasted to drop to 55.8 this time.

Finally in Great Britain, Rate Decision remained 0.5% in April and is likely to continue maintaining this rate.

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

In Australia, Retail Sales, A major indicator of consumer spending increased by 0.5% above the forecast of 0.4% rise. The same increase of 0.5% is predicted now.

More in Australia, Building Permits, measuring the number of licenses for new building projects plunged on a yearly base by 21.8% in February, worst than expected and is forecasted a further drop of 25.2%. On a monthly base Building Permits dropped 7.4% and are expected a small gain of 0.5%.

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

That’s it for today. Happy forex trading!