Forex Daily Outlook – October 21st 2009

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After a busy day yesterday, that saw the Canadian dollar falling, we have a rather thin calendar today. British meeting minutes and the Beige Book are the highlights of today.

Australia’s MI Leading Index rose by 1.1%, exactly like last month. AUD/USD is trading in a range between 0.92 and 0.93, capped by a resistance line. For more on the Aussie, read the AUD/USD Forecast.

In Britain, the MPC Meeting Minutes release is of high importance this time. Various statements by senior BoE officials took different directions, and sent the Pound up and down. I found the last rate statement to be Pound-Bearish. GBP/USD now trades at 1.65, climbing nicely towards the release.

Later  in the UK, CBI Industrial Order Expectations are expected to advance to -45, still negative. For more on the Pound, read the GBP/USD Forecast.

Casey Stubbs identifies that GBP/USD is approaching a key resistance line. Interesting analysis indeed.

With the price of oil on the rise again, it’s important to notice the Crude Oil Inventories release. The number of barrels in storage is expected to rise by 0.9 million.

Two FOMC members will be speaking today: Jeffrey Lacker and Daniel Tarullo. The more important event later on is the release of the Beige Book, which is used by the FOMC in their next meeting. The economic data released there will move the greenback.

Just before midnight GMT, Japan’s Trade Balance is released, and is expected to show a bigger surplus. USD/JPY now trades at 90.63.

EUR/USD is still struggling under 1.50, now at 1.4950, waiting for some meaningful event to come. Today, the European calendar is empty, but Friday is very busy. For the events in the Euro-zone, read the EUR/USD Forecast.

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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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