Forex Daily Outlook – October 18 2010
Daily Look

Forex Daily Outlook – October 18 2010

US TIC Long-Term Purchases, and New Zealand CPI are the highlights of today’s outlook. Let’s see what awaits us today.

In the US, Treasury International Capital (TIC) Long-Term Purchases, The difference in value between foreign long-term securities purchased by US citizens and by foreigners during the reported period will remain 61.2B, like on the previous month. Demand for domestic securities and currency demand are directly linked.

Later in the US, Capacity Utilization Rate is about to rise again by 0.1%., the percentage of available resources being utilized by manufacturers, mines, and utilities; that affects on consumer inflation.

More in the US, Industrial Production is about to rise by 0.1%, the total inflation-adjusted value of output produced by manufacturers, mines, and utilities that affects economic health since production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.

Finally in the US, National Association of Home Builders (NAHB) Housing Market Index, Survey of about 900 home builders which asks respondents to rate the relative level of current and future single-family home sales; about to rise by 1 point and Above 50 indicates a favorable outlook on home sales, below indicates a negative outlook

In Canada, Foreign Securities Purchases, Total value of domestic stocks, bonds, and money-market assets purchased by foreigners during the reported month is about to rise by 0.53 B.

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

In Great Britain, Rightmove House Price Index (HPI); about to stay -1.1% as on the previous month. It is the UK’s earliest report on housing inflation; rising house prices attract investors and spur industry activity.

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

In Australia, New Motor Vehicle Sales, the number of new cars and trucks sold domestically is 0.3 as on the previous month. It’s a sign of consumer confidence – rising demand for expensive durable goods shows that consumers are confident in their future financial position and feel comfortable spending money.

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

In New Zealand, Consumer Price Index (CPI) is about to rise by 0.7%, the price of goods and services purchased by consumers, Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;

In Japan, Tertiary Industry Activity, the total value of services purchased by businesses; businesses are quickly affected by market conditions, and changes in their spending can be an early signal of future economic activity such as hiring, earnings, and investment.

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