Forex Daily Outlook – October 21 2010

A busy day filed with exciting news. Unemployment Claims in the US, Flash Manufacturing & Services PMI in Europe, Inflation Report Hearings in UB are just some of the events. Let’s see what awaits us today.

 In the US, Unemployment Claims, the individuals who filed for unemployment insurance for the first time during the past week will decrease by 7K. This is the nation’s earliest economic data, its affects the overall economic health since consumer spending is highly correlated with labor-market conditions.

Later in the US, Philly Fed Manufacturing Index, survey of about 250 manufacturers in the Philadelphia Federal Reserve district which asks respondents to rate the relative level of general business conditions, indicates improving conditions by rising to 0.5 points from -0.7 on the previous month. Can be an early signal of future economic activity.

More in the US, Federal Reserve Bank of St Louis President James Bullard due to speak on the US economic outlook and monetary policy at the Federal Reserve Bank’s “35th Annual Economic Policy Conference: Frictions in Financial and Labor Market,” in St Louis. Often used to drop subtle clues regarding where to set the nation’s key interest rates and future monetary policy.

Furthermore in the US, The Conference Board (CB) Leading Index that measures the level of a composite index based on 10 economic indicators is about to droop down by 1% from the previous month. This index is designed to predict the direction of the economy, combined reading of 10 economic indicators.

Finally in the US, Natural Gas Storage that measures the natural gas cubic feet held in underground storage will remain 91B as on the previous week, and most affects the loonie due to Canada’s sizable energy sector.

In Canada, Leading Index that measures the level of a composite index based on 10 economic indicators is about to decrease by 3%. This index is designed to predict the direction of the economy.

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

In Europe, Flash Manufacturing Purchasing Managers’ Index (PMI), Survey of about 600 purchasing managers for measuring the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry on the previous month. In Europe & Germany it will decrease by 0.5 points and in France will decrease by 0.7. It’s the most current and relevant insight into the company’s view of the economy.

Also in  Europe, Flash Services Purchasing Managers’ Index (PMI), survey of about 600 purchasing managers for measuring the level of a diffusion index based on surveyed purchasing managers in the services industry. In Europe it will decrease by 0.4 points, in Germany it will decrease by 0.2 points and in France will decrease by 0.7. A leading indicator of economic health

For more on the Euro, read the  EUR/USD forecast and Casey Stubbs’  latest analysis.

In Great Britain, Retail Sales that measures the inflation-adjusted sales at the retail level is about to rise by 9% and since it’s the primary gauge of consumer spending affects the overall economic activity.

More in Great Britain, Prelim Mortgage Approvals that measures the new mortgages approved for home purchases during the previous month is about to drop down by 3K and since it’s a leading indicator of housing market demand affects how many qualified buyers are entering the market.

Finally in Britain, External BOE MPC Member Adam Posen due to speak at the Austrian Marshall Plan Foundation and Austrian National Bank, in Vienna. Is often used to drop subtle clues regarding future monetary policy;

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

In Switzerland, Trade Balance that measure the value between imported and exported goods during the reported month is about to rise by 0.63, and indicates that more goods were exported than imported, impacts production and prices at domestic manufacturers.

More in Switzerland Survey of institutional investors and analysts which rate the relative 6-month economic outlook for Switzerland and measures the level of a diffusion index based on surveyed institutional investors and analysts. About to remain -5.1 points and indicates pessimism. Changes in their sentiment can be an early signal of future economic activity

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

That’s it for today. Happy forex trading!

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