Forex Daily Outlook – September 16th 2009

The dollar continues to weaken, especially after Bernanke’s speech. Today’s calendar is packed with CPI from Europe and the US, employment figures in Britain and many other releases. Let’s see what’s up for today.

Although the dollar weakens, it doesn’t affect all currencies. Mervyn King sent the Pound down yesterday. On the other side of the channel, EUR/USD is continuing upwards. Casey Stubbs wrote a fresh technical analysis for EUR/USD.

Australia’s MI Leading Index started the day with a 1.1 rise, and last month’s figure was revised upwards.

In Switzerland, the strong Swiss Franc is expecting the Retail Sales publication. It’s expected to rise by 1%, after rising by 0.9% last month.Later on, the ZEW Economic Expectations are due.

For more on the Swissy, read the USD/CHF Outlook.

In Britain, the beaten Pound expects a major indicator today – Claimant Count Change. The rise in British unemployment claims is the earliest indicator of unemployment. After standing on 24.9K last month, it’s expected to stand on 24.7K this time.

British Unemployment Rate is expected to rise from 7.8% to 8%. Although this is a late figure, it’s quoted by the media and impacts policymakers. The Average Earnings Index is expected to rise by 2.1%, after a 2.5% rise last time.

For more on the British Pound, read the GBP/USD Outlook.

It’s Europe’s turn for CPI. It’s expected to decline by 0.2%, after the same fall last month. Core CPI is expected to rise only 1.2%, less than last month’s 1.3%.

For more on Euro’s week, read the EUR/USD Outlook.

In Canada, Manufacturing Sales are expected to rise by 2.4%, and might help the loonie. Read more on USD/CAD.

American Consumer Price Index is expected to rise by 0.3%, after being unchanged last time. Core CPI is expected to edge up by 0.1%, like last month.

TIC Long-Term Purchases, representing cash flow, are expected to squeeze from 90.7 to 65 billion. This usually moves the dollar across the board.

Also in the US: Current Account is predicted to show a smaller deficit this time, of “only” 92 billion. The Capacity Utilization Rate is expected to rise from 68.5% to 69.1%. Industrial Production is expected to rise by 0.7% after a 0.5% last month.

Japan closes the day with two figures: BSI Manufacturing Index and the Tertiary Industry Activity which is expected to rise by 0.6%, after a 0.1% rise last month.

That’s it for today. Happy forex trading!