Forex Daily Outlook – October 29th 2009
Daily Look

Forex Daily Outlook – October 29th 2009

The dollar continues to sweep the markets. Today’s calendar is quite busy, with American GDP standing out. Did the US get out of recession? Or will we see a disappointment like in Britain? Let’s review the main events for today:

Australian  HIA New Home Sales fell by 4.5%,  which  was rather disappointing.  The Aussie is now trading at 0.8995, sitting above the 0.8950 support line. For more on the Australian dollar, read the AUD/USD Forecast.

The suffering Euro will receive a few indicators today: German Unemployment Change is expected to rise by 17K, but there could be a surprise there. European Consumer Confidence is expected to rise but remain negative, at -17. Also note a speech from Deutsche Bundesbank President Axel Weber. EUR/USD is now at 1.4700.

For more on the Euro, read the EUR/USD Forecast.

In Britain, the Pound is weathering the dollar strength quite well. Today, Net Lending to Individuals is expected to repeat last month’s number of 0.7 billion. For more on the British Pound, read the GBP/USD Outlook.

In Canada, the RMPI (Raw Materials Price Index) is expected to drop by 0.5% after rising by 3.7% last time. USD/CAD is trading under the resistance line of 1.08. For more on the Canadian dollar, read the USD/CAD Forecast.

The US is expected to get out of recession in the third quarter. Advance GDP is expected to show an annually adjusted rise of 3.2%, following last quarter’s contraction of 0.7%. After Britain disappointed with another quarter of recession, American GDP could fall as well. In this case, the fear factor will push the dollar higher. This major event is at 12:30 GMT.

Weekly Unemployment Claims are expected to drop from 522K to 531K. Only a big surprise will move the markets, given the GDP release.Timothy Geithner will be testifying in Wahington, and might release an interesting statement.

One day after the disappointing rate decision in New Zealand, Building Consents are published. A strong result might help the kiwi recover from teh downfall. NZD/USD is now at 0.7185. The same reaction to a disappointing rate decision happened with the Canadian dollar.

Japan closes the day with many releases: Household Spending is expected to rise by 1.2%, about half of last month’s rise. Tokyo Core CPI is expected to show an annual fall of 2%, deep in deflation. Japanese Unemployment Rate is predicted to edge up from 5.5% to 5.6%.

That’s it for today. Happy forex trading!

Yohay Elam

Yohay Elam

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.