Forex waits for GDP 7.30

Written by Research | 28 July 2010

The Big Day!

The beige book is especially important after cautious words from Fed chairman Ben Bernanke last week led to a sell-off in stocks. He called future growth "uncertain," which worried investors who look to Bernanke for reassurances that a rebound is under way.

Although, the 1st day of the Federal Reserve Chairman Ben Bernanke gave no real inspiration as the " unusually uncertain "economic outlook outweighed the markets during his semi-annual monetary policy report. However, the 2nd day he gave a more subtle and a bit more positive outlook as the market were waiting for the release of the highly anticipated European stress test result.

Many investors are waiting for the government's report on gross domestic producton Friday, the broadest measure of how the economy is doing, before making any big investing moves. But the market will also get a reading Wednesday afternoon, when the Federal Reserve releases a survey of economic conditions called the beige book. It assesses the state of the economy by region.

With consumer confidence falling down in July to 50.4 from 54.3 in Jun, Durable Goods not as good and the Fed manufacturing index to 16 from 23; the USD gains against the major curreny pairs except for the Pound.And the USDX falling slightly at the 81.95bp levels before the market news have been built in anticipation and speculative trades were increasingly favoring a negative sentiment. And finally this Friday's report on teh Gross Domestic Product from the US wil lbe the pace setting report where increase volatility will be seen across the board specially the Forex market.

Friday July 30

12:30 United States Gross Domestic Purchases Price Index (Q2) 1.1% 1.7% 1

12:30 United States Real Personal Consumption Expenditures (QoQ) (Q2) 1% 3% 1

13:45 United States Chicago Purchasing Managers' Index (Jul) 56.0 59.1 1

13:55 United States Reuters/Michigan Consumer Sentiment Index (Jul) 67 76 1
Actual: 13:55 GMTCons.: 67Previous: 76

The Reuters/Michigan Consumer Sentiment Index released by the Reuters/University of Michigan is a survey of personal consumer confidence in economic activity. It shows a picture of whether or not consumers are willing to spend money. Generally speaking, a high reading anticipates positive (or bullish) for the USD, while a low reading is seen as negative (or bearish

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