The upcoming forex trading week will come to peak on Wednesday, when American Advance GDP and the FOMC Statement will rock the markets on the same day. Here are some scenarios. Forex trading this week features quite an uncommon collision of events: on the same day, April 29th, two major American events will occur: Advance GDP Advance GDP is published at 12:30 GMT. According to current estimations, it’s expected to plunge yet again, starting 2009 in a bad way and falling by 4.9%. In the last quarter of 2008, American Gross Domestic Product fell by 6.3%. This is the final figure. The initial figure was quite different, and showed a much smaller contraction: only 3.8%. The revised figure plunged to 6.6%, before stabilizing on 6.2%. Current expectations are for a bad first quarter. If this really happens, or if the contraction is above 5%, this will trigger risk aversion, and the dollar will rise. The risk factor is dominant in the forex market, and a bad figure means a strong dollar. If the stimulus package already kicked in, or improved American housing will be felt, contraction can be smaller. Advance GDP that shows a contraction of less than 4%, optimism will send traders to “risky” currencies, away from the “safe haven” greenback. FOMC Statement The interest rate is widely expected to stay unchanged, at the low of lows. So I’ll skip the Federal Funds Rate, and move straight to the accompanying statement. Contrary to the GDP, this statement is harder to analyze. Last time, the Federal Reserve made a stunning announcement – they increased their balance sheet and announced the spilling of $1 trillion dollars into the markets. This dollar devaluation statement sent the dollar down. Although it has recovered since then, this money spilling’s echoes from March 18th are still heard in the markets. This time, they can do a variety of things: Talk about the results of the previous moves – dollar shakes and stabilizes. State that they’ll start retreating – spill less money – the dollar climbs. Announce more unconventional dollar devaluating measures – the dollar falls. Your scenario? After last time’s surprise, it’s really very very to tell what Ben Bernanke’s guys will come up with. This will sure be an exciting event. Both events, Advance GDP and the FOMC Statement, will shake the greenback, thus shake the whole market. If both are dollar-negative or both are dollar-positive, this day will set the direction of dollar for a very long time. If they are mixed, expect high volatility until the end of the week, before the dollar stabilizes. Anyway, Wednesday, April 29th, will be a fascinating day! For the rest of this week’s events, check out the Forex Weekly Outlook. 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. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Forex Daily Outlook – April 27th 2009 Yohay Elam 13 years The upcoming forex trading week will come to peak on Wednesday, when American Advance GDP and the FOMC Statement will rock the markets on the same day. Here are some scenarios. Forex trading this week features quite an uncommon collision of events: on the same day, April 29th, two major American events will occur: Advance GDP Advance GDP is published at 12:30 GMT. According to current estimations, it's expected to plunge yet again, starting 2009 in a bad way and falling by 4.9%. In the last quarter of 2008, American Gross Domestic Product fell by 6.3%. This is the final… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.