Ben Bernanke will continue to cast his spells over the markets today, and we also have many important economic indicators from all over the world. Let’s see what’s awaiting us in this busy day in forex trading:
Australia’s Private Capital Expenditure provides a strong start for the day. After a drop of 3.9% in the previous quarter, it rose 5.5% this time. The Aussie still hasn’t made a big move. For more, read the AUD/USD forecast.
In New Zealand, the NBNZ Business Confidence is an important release that moves the kiwi. New Zealand’s Building Consents are an important gauge of the economy. They disappointed by falling by 2.4% last time. This time around, New Zealand Business Confidence hits 10-year high. Also note the Trade Balance, which is currently quite balanced – a surplus of 2 million.
In Switzerland, Employment Level remained stable at 3.96 million.
German Unemployment Change disappointed last month with a rise after many good months. This month, it held steady at 8.2%. The M3 Money Supply which fell last month, rose by 0.1% this month.
Also in Europe, Consumer Confidence ticked down to -17. The Euro is still struggling. For more, check out my EUR/USD forecast, and Casey Stubbs’ latest technical analysis.
In Britain, Mervyn King will get another opportunity to hurt the Pound. He’ll speak in front of the Banking Commission, and will probably move the Pound. His colleague, David Miles, will make a public appearance in the evening and can also contribute his share.
British Business Investment fell again by 5.8% in Q4, after a drop in Q3. CBI Realized Sales usually rock the Pound. They rose sharply from -8% to +23%. British figures are improving, but very very slowly. For more on the British Pound, read the GBP/USD forecast.
In the US, two major releases will are due: Durable Goods Orders surged 3% compared to 1% last month. But Core Durable Goods Orders dropped unexpectedly, following a 1.4% rise last time. The second figure is Unemployment Claims, which are stuck in the same zone for quite some time. Unfortunately, the figure rose to 496,000, following last month’s 473,000. Only a drop below 430,000 will convince economists that the recovery can be seen in the job market.
Ben Bernanke will continue testifying Washington today. Needless to say that anything he says or doesn’t say, has a strong impact on the markets, both in the immediate term and for the long run.
Also in the US: HPI is predicted to rise by 0.6% and FOMC members Sandra Pianalto and James Bullard will also speak.
The day ends with an influx of data from Japan: Tokyo Core CPI is predicted to show more deflation in the land of the rising sun – an annual drop of 1.9% in prices. Preliminary Industrial Production is expected to rise by 1.1% after a rise of 1.9% last month.
Last but not least, Japanese Retail Sales are predicted to drop once again, this time by 0.1%.
That’s it for today. Happy forex trading!
Yohay Elam is the owner of Forex Crunch, a blog about the foreign exchange market. It includes tutorials, basics of the forex market, daily and weekly forex analysis, technical analysis, forex software posts, and whatever is related to Forex.
Article copyrighted by Yohay Elam. Content published with author's permission.
