We start the week with a speech by James Bullard, New Motor Vehicle Sales, Retail Sales in New Zealand and more; let’s see what awaits us this today..

In the US, Federal Reserve Bank of St Louis President James Bullard, delivers a speech titled “The Global Recovery and Monetary Policy” at the Institute of Regulation and Risk, in Tokyo. And drops subtle clues regarding future monetary policy;

In Canada, New Motor Vehicle Sales, data that is released monthly and measuring the change in number of new cars and trucks sold domestically, is about to rise by 0.5% and It’s a sign of consumer confidence.

For more on USD/CAD, read the Canadian dollar forecast.

Moving to Europe, Industrial Production, data that is released monthly and measuring the change in the total inflation-adjusted value of output produced, is about to rise by 0.4%. It’s a leading indicator of economic health and tends to have a relatively mild impact because Germany and France that account for about half of the Eurozone’s economy.

For more on the Euro, read the EUR/USD forecast and Casey Stubbs’ latest analysis.

In Great Britain, External Bank of England (BOE), Monetary Policy Committee (MPC); Member Adam Posen participates in a panel discussion at the Barclays Capital Annual Global Inflation-Linked Conference 2010, in New York. And impact on the future monetary policy.

Read more about the Pound in the GBP/USD forecast.

In Switzerland, the Producer Price Index (PPI) is about to rise in 0.6%, data that is released monthly and measuring the change in the price of goods and raw materials purchased by manufacturers.

In New Zealand, Retail Sales, the earliest and broadest look at vital consumer spending released monthly data that measures the change in the total value of sales at the retail level, is about to droop down by 0.7% and accounts for the majority of overall economic activity.

More in New Zealand, Retail Sales Ex Autos is about to droop down from 1.1% to -0.4%, data that is released monthly and measures the change in the total value of sales at the retail level, excluding automobiles. Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend.

In Japan, Business Survey Index (BSI) manufacturing index shows and optimistic result of 7.8. This survey is used to predict the Bank of Japan (BOJ) Tankan Survey.

Later in Japan, Revised Industrial Production, released monthly data that measures the change in the total inflation-adjusted value of output produced by manufacturers. is about to rise by 1% and production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.

That’s it for today. Happy forex trading!

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GBP/USD Technical Analysis

In the US a rise in the Existing Home Sales, and Sandra Pianalts (US) and Speaks at the Ohio Northern University, in Great Britain Adam Posen speeches are affecting the nation’s key interest rates. Let’s see the other interesting news up for today

In the US, Existing Home Sales, date about home resales that released monthly and measures the annualized number of residential buildings that were sold during the previous month, is about to rise from 5.35 Million to 5.61 Million an leading indicator of economic health, triggers a wide-reaching ripple effect.

Later in the US, Federal Reserve Bank of Cleveland, President Sandra Pianalto deliver opening remarks at the Ohio Northern University, in Ada;  affects the future monetary policy with the FOMC members votes on where to set the nation’s key interest rates.

For more on USD/CAD, read the Canadian dollar forecast.

In Great Britain, Bank of England (BOE), Monetary Policy Committee (MPC); Member Adam Posen speaks at the School of Economics, in London and affects the monetary policy by setting nation’s key interest rates.

Read more about the Pound in the GBP/USD forecast.

In Australia, New Motor Vehicle Sales, released monthly and measures the change in the number of new cars and trucks sold domestically. Affecting the future financial position and encouraging consumers to spend money.

For more on the Aussie, read the AUD/USD forecast.

In Japan, The Bank of Japan (BOJ) Monthly Report, recent economic and financial developments and contains the statistical data that the BOJ Policy Board members evaluated when making the latest interest rate decision.

Later in Japan, All Industries Activity, that measures the change in the total value of goods and services purchased by businesses is about to rise up to -0.6% from -2.3%, a leading indicator – businesses are quickly affected by market conditions, and changes in their spending can be an early signal of future economic activity.

That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

In the US a rise in the Existing Home Sales, and Sandra Pianalts (US) and Speaks at the Ohio Northern University, in Great Britain Adam Posen speeches are affecting the nation’s key interest rates. Let’s see the other interesting news up for today

In the US, Existing Home Sales, date about home resales that released monthly and measures the annualized number of residential buildings that were sold during the previous month, is about to rise from 5.35 Million to 5.61 Million an leading indicator of economic health, triggers a wide-reaching ripple effect.

Later in the US, Federal Reserve Bank of Cleveland, President Sandra Pianalto deliver opening remarks at the Ohio Northern University, in Ada;  affects the future monetary policy with the FOMC members votes on where to set the nation’s key interest rates.

For more on USD/CAD, read the Canadian dollar forecast.

In Great Britain, Bank of England (BOE), Monetary Policy Committee (MPC); Member Adam Posen speaks at the School of Economics, in London and affects the monetary policy by setting nation’s key interest rates.

Read more about the Pound in the GBP/USD forecast.

In Australia, New Motor Vehicle Sales, released monthly and measures the change in the number of new cars and trucks sold domestically. Affecting the future financial position and encouraging consumers to spend money.

For more on the Aussie, read the AUD/USD forecast.

In Japan, The Bank of Japan (BOJ) Monthly Report, recent economic and financial developments and contains the statistical data that the BOJ Policy Board members evaluated when making the latest interest rate decision.

Later in Japan, All Industries Activity, that measures the change in the total value of goods and services purchased by businesses is about to rise up to -0.6% from -2.3%, a leading indicator – businesses are quickly affected by market conditions, and changes in their spending can be an early signal of future economic activity.

That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

A revised version on the GDP and 5 other events will shake the Pound, now at lower ground. Here’s an outlook for the British events and an updated technical analysis for GBP/USD.

GBP/USD chart with support and resistance lines marked. Click to enlarge:

While the political uncertainty didn’t stay too long, the Pound’s situation is still dire. It’s fate cannot be detached from the fate of the Euro. Contagion also reached Britain. OK, let’s start:

1. Adam Posen talks: Starts speaking on Monday at 17:30 GMT. External BOE MPC Member Adam Posen already moved the Pound several times in the past, and he’ll have a chance to do so in his speech early in the week. Any hints about future rate hikes or the situation of the economy are likely to impact trading.
2. Revised GDP: Published on Tuesday at 8:30 GMT. Britain’s economy is still struggling. According to the initial release, Britain grew by only 0.2% in Q1. This was half of early expectations. The second release is expected to show a better picture – a growth rate of 0.3%. Any result will rock the Pound.
3. BBA Mortgage Approvals: Published on Tuesday at 8:30 GMT, and overshadowed by the GDP release. The British Bankers Association covers two thirds of all British mortgages, and releases this housing figure quite early. After losing the highs of 46K, the figure fell under 34K. It’s now expected to recover and rise to 38.3K.
4. CBI Realized Sales: Published on Thursday at 10:00 GMT. 160 retailers and wholesalers are surveyed for CBI’s important indicator. In the past three months, this number was positive, indicators higher sales volume. A small rise from 13 to 14 is predicted this time.
5. GfK Consumer Confidence: Published on Thursday at 23:00 GMT (midnight UK). Consumers’ pessimism worsened last month, with an unexpected drop to -16 points. 2,000 consumers are expected to show a bit less pessimism this time, with a rise to -15 points.
6. Nationwide HPI: Publication time unknown at the moment. Two straight months of rises have proved that the drop seen in January was a one time glitch. The UK’s second earliest house price report always rocks the markets. Another small rise of 0.5% is expected this time.

GBP/USD Technical Analysis

The British Pound reached fresh lows very early in the week, breaking the technical level of 1.44 and bottomed out only at 1.4230. It then recovered and closed at 1.4450.

The Pound’s range is now between 1.44, the previous major support line, and 1.45, which proved to be a new line of resistance. Note that some lines were added on last week’s outlook.

Looking up, the next line of resistance is at 1.4780, which held GBP/USD for several months. This is a strong line. Above, 1.4975 is a minor resistance line, followed by 1.5130, which worked as support just a few weeks ago. It’s followed by 1.5350, which worked as both support and resistance, and by 1.5520 which wasn’t broken in three months.

Looking down, the fresh 2010 low of 1.4230 is the next immediate support. Stronger support is found at 1.4130, which was a support line in April 2009. Further below, 1.38 also stopped the pair at the beginning of 2009, and is the next line of support. The ultimate support line is 1.35, which is the lowest level seen in over 20 years.

I remain bearish on the Pound.

A serious revision in GDP is necessary for the Pound to recover from the recent blows, but the European troubles will probably continue bringing it down.

Further reading:

• For a broad view of all the week’s major event in all currencies, read the forex weekly outlook.
• For the Euro, read the EUR USD Forecast.
• For the Australian dollar, read the AUD/USD forecast.
• For USD/CAD, check out the Canadian dollar forecast.

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

Ben Bernanke’s testimony will be the centerpiece of today’s events, including releases from many countries. Let’s see what’s awaiting us.

For those of you who haven’t noticed, I have a spot on Forex TV, where I talk about the markets. In these interviews I speak about currencies that I cover in the weekly outlooks, and also to additional ones. Here’s the latest video outlook. OK, let’s start the review:

Australia starts the day with two interesting quarterly releases: Wage Price Index is expected to rise by 0.8%, similar to last quarter’s move. A bigger rise will trigger inflation fears.

At the same time, the Construction Work Done figure is predicted to rise by 2.1%, slightly less than the previous quarter. On the other side of the day, CB Leading Index will probably tick up.

The Aussie is on the rise. For more, read the AUD/USD forecast.

Germany’s economy disappointed the markets with no growth in Q4, according to the initial release. This stagnation is predicted to be confirmed in the final release. If the number is revised to the downside, this will hurt the Euro.

After yesterday’s Ifo survey disappointed, the German GfK Consumer Climate is also expected to dip: from 3.2 to 3.1 points. Later in Europe, Industrial New Orders are predicted to drop by 1.1% after a surprising 2.7% rise last month.

For more on the Euro, check out my EUR/USD forecast, and Casey Stubbs’ latest technical analysis.

After Mervyn King hurt the Pound yesterday, External BOE MPC Member Adam Posen will also have his chance, in a public appearance. For more on this week’s events in the Pound, (there’s a big release on Friday), check out the GBP/USD forecast.

In Canada, Corporate Profits are expected to rise once again. USD/CAD is struggling around 1.04, a very important support line. Read more about the loonie in the USD/CAD forecast.

Ben Bernanke will start testifying at 15:00 GMT and will shake the markets. It doesn’t always matter what he does say, it’s what the analysts make of it. The focus will be on the meaning of his latest move – the hike of the interbank discount rate.

Will he continue to downplay it? That’s the big question. Although the dollar has retreated from the highs it reached after the decision late on Thursday, it’s still strong, especially against the more vulnerable currencies. Also Treasury Secretary Timothy Geithner will be testifying later in the day.

New Home Sales are predicted to edge up from 342K to 354K. This is usually a big market-mover, but today it will be overshadowed by Bernanke.

That’s it for today. Happy forex trading!

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GBP/USD was significantly hit by Bernanke’s move and tested an important support line. The upcoming week has a revised version of GDP among other events. Did Britain really exit the recession? Here’s an outlook for this week in the Pound, and an updated technical analysis for GBP/USD.

GBP/USD graph with support and resistance lines marked. Click to enlarge:

Mervyn King continues to play a strong role in the Pound’s trading. He continued his refusal to admit the rising inflation, and hurt the Pound. He’ll have his chance to move the markets this week as well. Let’s start the review:

1. Inflation Report Hearings: Start on Tuesday at 9:15 GMT. Mervyn King, and possibly other members of the BOE, will come to parliament and talk about inflation as well as other matters. This lengthly session that discusses also growth and employment will probably contain a few headlines from Mr. King – headlines that will move the Pound.
2. BBA Mortgage Approvals: Published on Tuesday at 9:30 GMT. The British Bankers’ Association represents roughly two thirds of Britain’s mortgages, thus supplying a significant indicator that precedes the government’s release. The number of mortgages is rising steadily and it reached 45.9K last time. Another tick up is predicted.
3. Paul Tucker talks: Start speaking on Tuesday at 12:10 GMT. As Deputy governor of the BOE, Tucker is an influential member that already moved the market before. He’ll talk about the state of the economy in London.
4. Adam Posen talks: Begins on Wednesday at 9:25 GMT. Although he’s an external member of the MPC, Posen also had his share of shaking the Pound. He’ll be speaking in another conference in London.
5. Business Investment: Published on Thursday at 9:30 GMT. This is the preliminary release of this important quarterly indicator. It represents both public and private sectors. Investment is squeezing in Britain. In the previous quarter, it squeezed by “only” 3%, after huge drop of 7.6% and 10.2% beforehand.
6. Mervyn King talks: Starts on Thursday at 9:30 GMT. This appearance in parliament is about the banking system rather than the economy, but King is the King – and he probably won’t miss a chance to shake the Pound once again.
7. David Miles talks: Starts speaking on Thursday at 18:00 GMT. The last British speech for this week comes from a member that has different policy opinions. It will be interesting to follow his words after he realigned with his colleagues in the last rate decision.
8. CBI Realized Sales: Published on Thursday at 11:00 GMT. 160 wholesalers and retails are surveyed for this important indicator. After four positive months of expectations for growing sales volume, a big disappointment was seen last month as the result was -8 points instead of 11 positive points that were expected.
9. GfK Consumer Confidence: Published on Friday at midnight GMT. This barometer measures the consumers directly – 2000 of them. Consumers are pessimistic for quite some time according to this indicator that scores below zero for quite some time. After reaching -13 a few months ago, it fell back down to -17. A similar outcome is expected now.
10. Nationwide HPI: Published on Friday at 9:30 GMT. According to the Nationwide Building Society, British house prices are rising in the past 9 months. This is probably one of the reasons for the rising inflation. This is the earliest housing sector report and it usually has a strong impact on the Pound. Last month saw a surprise – a rise of 1.2% in prices, an accelerated pace.
11. Revised GDP: Published on Friday at 9:30 GMT. This is the key event of the week, kept for the end. According to the preliminary release for Q4, the British economy only barely got out of recession. The growth rate of 0.1% was also reported in the revised NIESR GDP estimate, and is expected to be confirmed at the revised version as well. In Q3, the contraction rate was revised in a positive manner so there’s hope. But a small downwards revision this time means that Britain is still in a very long recession.

GBP/USD Technical Analysis

The Pound got close to the 1.5833 resistance line, but that was short lived. It was supported at the 1.5530 line, but that was broken as well. After bouncing at the strong 1.5350 line, it manages to close above it. Most lines haven’t changed from last week’s outlook.

Close resistance is found at 1.5530, last week’s low. This proved as a clear line this week. Above, 1.5720 was a support line for quite some time, but is now a weak resistance line.

Above, 1.5833 is already an important resistance line that the Pound failed to breach. It also was a support line beforehand. Further above, 1.6110 is worth mentioning. Higher lines are just too high.

Looking down, 1.5230, which was a peak quite some time ago, proved to be a strong support line this week. Below this significant support line, the next number is a strong round number: 1.50.

Below the round number, 1.4780 is another support line, but it can be attacked only if Britain continues the recession.

I am bearish on GBP/USD.

The negative sentiment hasn’t changed. This week’s rise in unemployment was a setback to the Pound, and this was also felt in price action. The direction is down.

Further reading:

• For a broad view of all the week’s major event in all currencies, read the forex weekly outlook.
• For the Euro, read the EUR USD Forecast.
• For the Australian dollar, read the AUD/USD forecast.
• For USD/CAD, check out the Canadian dollar forecast.

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

Another busy day is awaiting us: American Building Permits and British employment numbers are the highlights. Let’s see what’s up for today.

Note the journey down of EUR/GBP, which moves by strong British figures and weak European ones.

Arabic version of this post

German PPI starts the day with an expected rise of 0.2%. Producer prices aren’t rising like consumer prices. A strong rise is needed to help the Euro that is currently struggling on all fronts.

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

British figures

British employment has turned around last month with a drop in the number of unemployed people. This number, the Claimant Count Change is expected to show another drop, this time of 3,300 people.

The accompanying figure relates to November, but is still important: the Unemployment Rate. Currently at 7.9%, it’s predicted to edge up to 8%. Looking at past releases, the rate will probably fall.

British MPC Meeting Minutes will reveal the internal talks in the last rate decision. There was no change in the rate nor in the QE program. Hints about future policy could be seen there.

Later in the day, External BOE MPC Member Adam Posen will speak. He might relate to inflation which is lifting its head and pushing the Pound higher.

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

Moving to Canada, CPI is predicted to drop by 0.1% after rising nicely last month. Also Core CPI is predicted to show a drop in prices – 0.2%. The Canadian dollar suffered from the rate decision yesterday, that provided no change in policy.

Also note Canadian Manufacturing Sales which are predicted to rise once again, this time by 1.6%. For more USD/CAD technicals, read the Canadian dollar forecast.

In the US, two housing sector figures are due: Building Permits are expected to remain unchanged at 590K and Housing Starts are predicted to edge up from 570K to 580K. A jump in one of these figures will boost the dollar.

Producer prices aren’t expected to move. Both PPI and Core PPI will probably rise by 0.1% after jumping last month.

In New Zealand, Retail Sales are expected to rise by 0.6%, double last month’s 0.3% rise. Kiwi traders, also note the Core Retail Sales which are expected to rise by 0.3%.

That’s it for today. Happy forex trading!

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

After moving up across the board, the Pound expects a very busy week: inflation, employment and retail sales are amongst the  events that will move the Pound. Here’s an outlook and an updated technical analysis for GBP/USD.

GBP/USD chart with support and resistance lines marked on it. Click to enlarge:

The unofficial NIESR GDP estimate showed growth of 0.3% in Q4 – an end to British recession. This was one of the main drivers of the Pound. For a rate hike, prices need to rise and jobs need to show that the turnaround wasn’t temporary. All these are supplied this week. Let’s start the review. The technical analysis will follow:

1. Rightmove HPI: Published on Monday at midnight GMT. This early bird report of housing prices isn’t always accurate, but tends to have an impact, especially as it’s published early. Two months of rises were followed by two months of drops, with a rather sharp 2.2% fall last month. Prices are expected to remain rather stable this time.
2. CPI: Published on Tuesday at 9:30 GMT. Britain almost fell to deflation, but prices began rising two months ago and continued last month with an annualized rate of 1.9%. This is helping the Pound bulls. CPI is expected to accelerate to 2.6% this time. Core CPI is also on the rise and is predicted to rise from 1.9% to 2.3% this time. Also note the Retail Price Index (RPI) which was negative for many months and turned positive last month.
3. BOE Inflation Letter: Published after the CPI, only if necessary. Rising inflation could get out of control – out of the government’s target of 1-3%. If the target is missed, BOE governor Mervyn King will need to send a public letter to explain the reasons and the measures. Such a letter will impact the markets as it exposes future actions such as a rate hike. A letter will only be issued if the target is missed – if the expected 2.6% number is significantly exceeded.
4. Mervyn King talks: Due at 19:00 GMT. With or without hitting the inflation target, King will make a public appearance. He might speak of Q4 growth, now that the unofficial NIESR GDP estimate showed growth, and both PM Gordon Brown and Alistair Darling expressed optimism.
5. Claimant Count Change: Published on Wednesday at 9:30 GMT, together with other events. This is the earliest and most important employment figure that is released in Britain. The number of unemployed people has finally dropped last month. This was very good news. After the drop of 6,300 unemployed people last month, another positive drop is expected – of 3,300.
6. Unemployment Rate: Published on Wednesday at 9:30 GMT. Although this is a late figure, it has a strong impact. Economists’ expectations are for a rise to 8%, but such predictions haven’t been realized in the past, and the unemployment rate is currently at 7.9%, being at 7.8% to 7.9% in recent months.
7. MPC Meeting Minutes: Published on Wednesday at 9:30 GMT. Together with employment figures, the minutes from the last rate decision are published. There are 7 billion pounds left in the Quantitative Easing program. The statement around the decision wasn’t exciting, and maybe the minutes will reveal the sentiment of the central bank.
8. Adam Posen talks: Due on Wednesday at 15:40 GMT. The external member of the MPC has made pessimistic comments in the past, and he may hurt the Pound again, when he speaks at a conference in Prague.
9. Public Sector Net Borrowing: Published on Thursday at 9:30 GMT. Britain’s heavy government deficit is frequently cited and is a burden on the Pound. Lending grew to over 20 billion pounds last month, the highest in years. It’s predicted to ease to 18.6 billion and help the Pound this time.
10. CBI Industrial Order Expectations: Published on Thursday at 11:00 GMT. The Confederation of British Industry shows a negative, pessimistic figure for quite some time. This number has been improving in the past two months, reaching -42 last time. It’s predicted to take another step upwards and reach -39, still in the negative zone.
11. Retail Sales: Published on Friday at 9:30 GMT. This important consumer figure closes the busy week for the Pound. Retail sales disappointed with a drop of 0.3% last month, falling short of expectations again and again. This time, a big correction is predicted – a rise of 1.3%. Such a result will help the Pound near the close of the week.

GBP/USD Technical Analysis

GBP/USD made all the way from the low 1.60s jumping easily above the 1.6110 resistance line and made a strong breakout above the important 1.6260 resistance line. After peaking at 1.6355 it fell and closed at 1.6261 – in a critical point.

So, the critical line is at 1.6260 – this pivotal spot will impact trading. Looking below, 1.6110 is a minor line of support, being broken too many times. All in all, the lines haven’t changed from last week’s outlook.

A more serious line of support is at 1.5720. The Pound traded above this important line in the past 8 months, and it began the comeback from this spot.  Looking even lower, 1.5350 was a clear line of support and resistance in the past and will cushion a fall below 1.5720.

Looking up, 1.64 is the next resistance line, being a peak in mid-December, before a dollar rally began. Further above, 1.6746 served as a resistance line a few times in the past and is the serious line.

If the Pound breaks this line, the 2009 high of 1.7040 is above, but such a move probably won’t happen this week.

I became neutral on GBP/USD.

There’s a bit of light at the end of the tunnel. The signs of the end of the recession, rising prices and the turnaround of the economy are all fragile, but are better than figures of previous months. This is enough to hold the Pound from falling.

Further reading:

• For a broad view of all the week’s major event in all currencies, read the forex weekly outlook.
• For the Euro, read the EUR USD Forecast.
• For GBP/USD, look into the British Pound forecast.
• For the Australian dollar, read the AUD/USD forecast.
• For USD/CAD, check out the Canadian dollar forecast.

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

Forex markets are still digesting the Dubai crisis as lots of indicators pour in. A big day awaits forex traders: a rate decision in Australia, GDP in Switzerland and Pending Home Sales are only a small portion of the events today. Let’s see what’s on the crowded calendar:

Australian Building Approvals start the day with an expected 2% rise, after a 2.7% leap last month. This indicator is only a starter for the rate decision.

The RBA is expected to raise the Cash Rate to 3.75%. Australia already has the highest interest rate in the West, and the central bank has already raised the rates twice in recent month. A third raise of 0.25% is expected today. Hints about future policy can be found in the RBA Rate Statement.

Another notable Australian release is Commodity Prices. For more on the Australian dollar, read the AUD/USD forecast.

In Switzerland, GDP for the third quarter is expected to rise by 0.3%, marking the end of recession. Swiss GDP fell by 0.3% in Q2. Later in Switzerland, SVME PMI is predicted to edge up to 54.9 points.

In Germany, Retail Sales are predicted to rise by 0.6%, after falling by 0.2% last month. EUR/USD opened the week higher, but is still trading in a range and looking for a direction.

Also employment figures are due in Europe: German Unemployment Change, that was good in recent months and fell, is expected to rise by 5K. A drop in unemployment sure is possible.

European Unemployment Rate is also published today. Although being based on some figures that have already been released by the big economies, this figure is crucial for policymakers. It’s expected to edge up from 9.7% to 9.8%, as it ticked up in recent months.

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

In Britain, Nationwide HPI is finally due today. It’s expected to rise by 0.4%, exactly like last month. Another important figure is the Manufacturing PMI, which is expected to rise from 53.7 to 54.1 points. Also note a speech by Adam Posen, a member of the MPC.

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

In the US, ISM Manufacturing PMI is expected to drop from the highs of 55.7 to 54.8. This indicator has surprised to the upside in recent months.

At the same time, 15:00 GMT, Pending Home Sales are expected to drop by 0.4% after making a huge jump of 6.1% last month. Note that other housing indicators have been better than expected.

That’s it for today. Happy forex trading!

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