Forex Daily Outlook – May 5th 2009
Daily Look

Forex Daily Outlook – May 5th 2009

Things are warming up in: Australia publishes a new interest rate, and Ben Bernanke testifies today. There are other important indicators. So what’s on the menu?

Australia’s  Building Approvals will be a nice warmup to the interest rate decision later on. They’re expected to rise by 2.6%, after climbing by 7.8% last time.  

Australian Cash Rate is published at 4:30 GMT, and is expected to stay the highest rate in the West – 3%. The accompanying RBA Rate Statement will also be closely watched by traders.

In Switzerland, the  SECO Consumer Climate is predicted to dive by 26 points this time, after a fall of 23 points last time. Will this stop the Swissy’s rally?

In Britain, Construction PMI is estimated to have risen to 31.9, from 30.9. Other signs have shown some recovery in Britain’s housing markets.

European PPI, despite being a late figure, probably fell by 0.5% – deflation.

At 14:00 GMT,  ISM Non-Manufacturing PMI will be published in the US. Expectations are for a rise to 42.5, showing more optimism.  

The PMI figure will be overshadowed by the testament of Federal Reserve Chairman Ben Bernanke. In this public appearance, Bernanke will explain what signs of recovery he sees.

Friday’s Non-Farm Payrolls are getting closer…Check out my special preview: 8 Reasons Why Non-Farm Payrolls should be better.

Happy Forex Trading!

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.