Forex Daily Outlook – October 16th 2009

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After a night of dollar weakness that sent the Aussie to new highs, the dollar recovered and is awaiting the TIC Long-Term Purchases, as well as other indicators. Let’s see what’s awaiting us on the closing day of the week.

In Switzerland, Retail Sales are expected to rise by 1.1% after last month’s 1% rise. A positive result will push USD/CHF closer to parity.

In Europe, Trade Balance is expected to show a smaller surplus – 5.1 instead of 6.8 billion. EUR/USD is again under 1.49, erasing the resistance line.

It’s Canada turn for inflation figures: CPI is expected to rise by 0.1%, and Core CPI by 0.2%. Such stable results will not put pressure to raise rates. See more on the loonie in the USD/CAD forecast.

In the US, TIC Long-Term Purchases are expected to almost double this month – from 15.3 to 30.1 billion. This means that more money foreign money is flowing into the US. A surprising figure will shake the dollar across the board.

American Capacity Utilization Rate is predicted to remain stable at 69.8%. Industrial Production is expected to rise by 0.1%, after last month’s 0.8% rise.

Near the end of the day, in the zone were a “Friday effect” can happen, the University of Michigan will publish the Prelim UoM Consumer Sentiment, which is expected to edge to to 73.6 points. Did the American sentiment improve?

That’s it for today. Happy forex trading!

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About Author

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.

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