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U.S. Federal Reserve Chairman  Ben Bernanke speaks in Boston, U.S. inflation data, retail sales and U.S. Consumer Sentiment close another exciting week of trade. Here is an outlook on the most influential events at hand.

In the US, Ben Bernanke talks. US policy-makers are under huge pressure to introduce new fiscal and monetary policies to stimulate growth. Federal Reserve Chairman Ben Bernanke will speak in Boston, and might elaborate on possible quantitative easing moves in the upcoming meeting in November. His words will have a strong impact on the market.

More in the US, Consumer Price Index shows mild inflation. CPI is expected to rise by 0.2%, slower than last month’s 0.3% rise. Core CPI, that remained unchanged last time, is expected a slight rise of 0.1% following a flat rate in the previous month.

Business Inventories an indicator of future spending is predicted to rise 0.5% after an unexpected increase of 1.0% in the previous month expressing smaller demand in the market.

Federal Budget Balance reached a better than expected 90.5B deficit in August a big decrease to a record low deficit of 32.3B is expected now. This will get the Federal Budget is shape.

Later in the US, Retail Sales the primary gauge of consumer spending rose 0.4% in the last two months, a 0.5% rise is expected now. Core retail sales, expected to rise by 0.4% following 0.6% in the previous month and can create high volatility.

Treasury Currency Report is released providing a detailed review of global exchange rate policies, economic conditions, and central bank and government actions around the world. Market impact tends to vary and is mostly dependent on which countries the report will accuse of currency manipulation.

Federal Reserve Bank of Boston President Eric Rosengren speaks at the Federal Reserve Bank Conference, in Boston. His words may have direct impact on the market.

Empire State Manufacturing Index a leading indicator of economic health released monthly is forecasted to rise above last month’s 4.1 points reaching 7.1 pointing on improvement in market conditions.

Finally in the US, US Consumer Sentiment an important survey conducted by the University of Michigan is likely to show a rise to 68.8 from 68.2 points boosting confidence on future economic conditions.

In Canada, Manufacturing Sales dropped 0.9% in July and are predicted to gain 0.5% another positive indicator of economic health.

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

In Europe, Consumer Price Index expected 1.8% increase- 0.3% higher than in the previous month getting closer to the European Central Bank’s 2% target while the Core CPI expected to remain unchanged at 1.0%.

More in Europe, ECB President Jean-Claude Trichet delivers a speech titled “Global Monetary and Fiscal Governance” at the World Policy Conference 2010, in Marrakech may rock the Euro Value.

In Japan, BOJ Governor Masaaki Shirakawa speaks at the 47th Annual Meeting of credit cooperatives, in Tokyo. Has important influence over the nation’s currency value.

That’s it for today. Happy forex trading!

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