Forex Daily Outlook – May 7 2010
Daily Look

Forex Daily Outlook – May 7 2010

Good news in the U.S. Non -Farm Employment Change is released expecting a rise and so is Canada’s employment change while Unemployment rates remain the same. US, Federal Reserve Chairman Ben Bernanke delivers a commencement address at the University of South Carolina, in Columbia and Britain awaits election results with great anticipation.

In the US, Non-Farm Employment Change is released and confirms the earlier positive reports. The change in the number of employed people, excluding the farming industry is expected to edge up by 35000 from 162K in April. This positive orientation continues the rise from the previous month.

Later in the US, Unemployment Rate is expected to remain 9.7% , This rate did not change since January.

More from the US, Federal Reserve Chairman Ben Bernanke delivers a commencement address at the University of South Carolina, in Columbia may affect short term interest rates and monetary policy.

Also from the US, Average Hourly Earnings, released monthly indicating a change in the price businesses pay for labor, expected to rise from -0.1% to 0.2% and affect inflation rates.

Finally in the US, Consumer Credit, A further drop of 2.2B in the total value of outstanding consumer credit that requires installment payments after a heavier drop of 11.5 B in the previous month. Consumers faced with unemployment and slow wage avoid using credit.

In Canada, A favorable rise of 2400 in the number of employed people while the Unemployment Rate is expected to remain the same as in March and April, 8.2%

Finally in Canada, BOC Deputy Governor John Murray peaks at the University of Alberta, in Edmonton and my send some clues regarding future monetary policy.,

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

In Europe, Heads of State from Euro-zone countries are due to meet about the Greek resuce package and economic reform, in Brussels;

Later In Europe, German Industrial Production is expected to climb from 0.0% to 1.5% shows an improvement in the German market.

Also in  Europe, In Switzerland, Retail Sales are expected to rise by 2.9% 0.2% lower than in the previous month and unemployment rate is expected a slight drop from 4.1% to 4.0%.

More from Europe, French Government Budget Balance is expected to remain around -21.8B EUR and the French Trade Balance debt has also climbed to -3.7B from -3.6B in the previous month.

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

In Great Britain, Producer Price Index Input  measuring the change in the price of goods and raw materials purchased by manufacturers is expected to drop from 3.6% in the previous month to 1.0% which means a slow in inflation. On the other hand the change in the price of goods sold by manufacturers has also decreased this month from 0.9% to 0.6%.

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

In Australia, Reserve Bank of Australia Monetary Policy Statement is published and effect the monetary policy and influence interest rate decisions.

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

That’s it for today. Happy forex trading!

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Anat Dror

Anat Dror

Anat Dror Senior Writer I conceptualize, design and create multi-lingual websites. Apart from the technical work, my projects usually consist of writing content for these sites in English, French and Hebrew. In the past, I have built, managed and marketed an e-learning center for language studies, including moderating a live community of students. I've also worked as a community organizer