Forex Trading News CHF Employment Level Released

The Employment Level comes out at 3.90M from the previous 3.88M.  This was forecast at 3.89M.

No change in the CHF after this data. 

Forex Trading News UK Nationwide House Prices Released

The Nationwide House Prices comes out at -2.5% from the previously revised -0.9%.  This was forecast at -0.5%.

The GBP took an initial drop across the board after this lower than forecast data.

Forex Trading News May 29th Data Preview

At 2 AM, the UK releases the Nationwide House Prices data. This number gauges the monthly change in average price for a home in the UK. This is the major impact number for the Asian/London session today. The previous number was -1.1% and -0.5% is forecast today.

At 3:15 AM, the CHF Employment Level is released. This number gauges the change in the number of people employed during the previous quarter. As this number rises, it benefits the currency. A slight rise is forecast to 3.89M from the previous 3.88M.

At 3:55 AM, the EUR German Unemployment Change comes out. This number is the change in people unemployed during the previous month. As this number declines, it is bad for the currency. A drop to -25K is forecast from the previous -7K. (CLICK TO CONTINUE)

At 6 AM, the GBP CBI Distributive Trades Realized is released.  This number gauges the health of the retail sector via questioning executives and having them compare today from a year ago regarding sales.   A rising trend typically benefits the currency.  -25 is forecast from the previous -26.

Forex Trading London Session Economic Data Releases

VIDEO: Thursday May 29th Daily Forex Newscast Forex.fxdd.com

May 29th 2008 Forex Market Outlook Forex.FXDD.com FXDD Thursday is a major release day with information from the US, UK and Japan that is sure to rock the market. Opportunities to trade all day. Trade with the Pros, FXDD!

Forex News Preview:Australia Private New Capital Expenditures due at 9:30 PM EDT

The final release for the day will happen at 9:30 PM EDT when the Australia Private New Capital Expenditures will be released.  This statistic measures the total amount of new capital expenditures by private businesses. If this measure is increasing it is generally considered good news for a currency and an economy. Last quarter the index increased by 5.1% as mining companies increased investment due to continued strong demand from China.  The insatiable appetite for the Australian natural resources has kept the Australia economy growing.  It now has shown growth for 17 consecutive years and this in turn, has prompted the central bank to raise rates in order to stem the inflationary pressures.  This quarter the flow of Capital expenditures is expected to increase by 3.0%. 

Forex News Preview: Japan Retail Sales due to 7:50 PM EDT

Japan’s Retail Sales for the month of April will be released at 7:50 PM EDT.  Last month total retail sales increased by 1.0% from a year earlier.  The sales have been positive for 8 months in succession.  However the main driver for the increase has been higher energy and food prices and as a result the increase does not necessarily reflect a stronger consumer.  A measure of the Largest Japanese Retailers showed that sales were up 0.2% from a year ago, with department store sales down -1.2% while the sales at Supermarkets up 1.2% reflecting the higher cost of food.                                         

This month the expectation is for the headline retail sales to show a Year on Year easing to plus 0.6%.  This would be the slowest pace since December 2007 and the third straight decline.  The Large Retailer Sales are expected to fall 1.2% when compared to last year.   Weakness in the economy should lead to a lower Yen.  A lower yen would may Japan exports more competitive abroad and help boast the economy.  However, it could also be inflationary as it raises the cost of imports.  Since Japan is reliant on foreign oil purchases, this would likely lead to higher inflation. 

Forex News US Fed’s Stern on the Wires

• HIGHLY SENSITIVE TO THREAT OF RISING PRICES
• INFLATION CLEARLY TOO RAPID FOR COMFORT 
• MODEST GROWTH, HIGHER UNEMPLOYMENT LIKELY
• CREDIT CRUNCH CANNOT BE RULED OUT
• ECONOMY FACING HEADWINDS SIMILAR TO 1990-91
• HOUSING LOOK WORSE THAM 1991, HOUSING INVENTORY IS STILL LARGE
• INFLATION EXPECTATIONS ARE STILL REASONABLY CONTAINED
• FED MUST PROTECT ECONOMY FROM FINANCIAL SHOCKS
• FED RATE POLICY MUST REMAIN SENSITIVE TO NEW DATA

Analysis: Inflation is starting to become more of a problem but inflation expectation remains subdued.  Have modest growth and higher unemployment.   They are still unsure on what to do and how the economic landscape will look like down the road.