CPI figures from Europe and from the US dominate the scene today, as the US dollar continues to go downhill. Will the fall continue? Let’s see what will impact trading today:
Australia’s MI Inflation Expectations remained on 3.5%, exactly like last month. Glenn Stevens, governor of the RBA, hinted that more rate hikes are underway. This sent AUD/USD higher up, to 0.9209. For more on the Aussie, read the AUD/USD Forecast.
The BOJ Monthly Report is more optimistic than expected and includes upgraded economic assessments. USD/JPY is now at 89.54.
EUR/USD is now trading at 1.4940. EUR/USD managed to break another resistance line.The ECB Monthly Bulletin is due to give a broad view of the economy.
The more interesting release is CPI: Prices are expected to continue declining, this time by 0.3%. Core CPI is expected to rise by 1.2%, less than last month’s 1.3%. Both figures are annually adjusted.
Jean-Claude Trichet will be speaking today, and he usually has an ability to move the markets. For more on the Euro, read the EUR/USD Forecast.
In Switzerland, ZEW Economic Expectations are expected to show more signs of recovery. At 1.0140, USD/CHF is getting close to parity.
In Canada, Manufacturing Sales are expected to drop by 1% after a 5.5% rise last time. Read more on the loonie in the USD/CAD Forecast.
American CPI is expected to rise by 0.2%, half of last month’s rise. Core CPI, which tends to have a stronger impact, is predicted to rise by 0.1%, excatly like last month.
At the same time, Unemployment Claims are predicted to rise 3000 and get back up to 524K after last week’s surprise. The American job market is still quite fragile.
Also in the US, the Empire State Manufacturing Index is expected to fall drop from 18.9 to 18.2 points, and the Philly Fed Manufacturing Index is predicted to fall from 14.1 to 12.3 points.
That’s it for today. Happy forex trading!