Forex Daily Outlook October 1 2012

We begin the week with US ISM Manufacturing PMI and Bernanke’s speech  as the main highlights on today’s outlook. Let’s see what awaits us today.

In the US, ISM Manufacturing PMI. Manufacturing activity in the US continued to contract posting 49.6 in August, after 49.8 in July. The index remained below the 50 point line for the third consecutive month. Analysts expect a rise to 50.0.

Later in the US, Ben Bernanke speaks. Chairman of the Federal Reserve Ben Bernanke is scheduled to speak in Indianapolis about the Federal Reserve and Monetary Policy. His speech will cause volatility in the market.

In Canada, RMPI.  Raw Materials Price Index measuring the purchasing price of raw material increased less than forecasted by 0.9% in July after declining 4.1% in June. Economists expected the a rise of 2.1%.

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

In Europe, Spanish Manufacturing PMI. Manufacturing activity in Spain increased to 44 in August following 42.3 in July. A similar reading is predicted now.

Later in Europe, Italian Manufacturing PMI Manufacturing activity in Italy dropped to 43.6 in August following 44.3 in July while economists anticipated a rise to 44.9. An increase to 44.2 is expected this time.

Later on in Europe, Unemployment Rate remained 11.3% in July, in line with predictions. Analysts expected unemployment rate to rise to 11.4% this time.

For more on the Euro, read the  Euro to dollar forecast.

In Great Britain, Manufacturing PMI. Manufacturing activity increased more than expected to 49.5 in August after posting 45.2 in July. Economists expected a more modest climb to 46.1. The index is forecasted to remain 49.5.

Later in Great Britain, Net Lending to Individuals. The total value of credit loans increased to 0.9 billion in July following a drop of 0.1 billion in the preceding month. A decline to 0.7 billion is expected this time.

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

In Switzerland, Retail Sales increased less than forecasted in July rising by 3.2% after a 3.3% climb in June while analysts expected a 3.5% increase. An increase of 4.1% is anticipated now.

Later in Switzerland, SVME PMI. Business conditions worsened in August with a reading of 46.7 from 48.6 in July. Economists expected a reading of 49.2. A rise to 47.6 is forecasted now.

Read more about the Swiss franc in the USD/CHF forecast.

In Japan, Tankan Manufacturing Index. Japan’s large manufacturers sentiment improved in June to -1 from -4 in May beating forecasts of a -4 reading. Analysts expect another decline to -4.

Later in Japan, Tankan Non-Manufacturing Index. Non-manufacturing companies improved in June rising to 8 from 5 in May, above predictions. A small decline to 7 is predicted now.

Read more about the yen in the USD/JPY forecast.

Trade well