Today’s fundamental news on the economic calendar is, of course, dominated by one item, namely the FOMC interest rate decision and subsequent statement to which the market will be paying very close attention.  If the pundits and commentators are to be believed then the statement will add further downwards pressure on the US Dollar as it is believed that any prospect of an interim rise in interest rates has receded given the somewhat parlous state of the economy.  This Dollar negative sentiment has also been assisted by comments from various members of the ECB who have been “talking up” the Euro book which yesterday soared, as a result.  This morning kicked off with the Current Account for Europe which showed a narrowing deficit from last time at -5.9bn, but was than expected with a forecast being -4.7bn.  This figure represents the difference in value between imports and exports during the previous month and its effect on the currency can be quite marked with a rising surplus indicating that foreigners are buying more of the domestic currency and vice versa.  This release was closely followed by Italian Retail Sales which despite my own personal best endeavours during a recent visit to Italy, failed well short at -0.4% against a forecast of 0%.

This afternoon the focus shifts to the US which starts with Core Durable Goods Orders and Durable Goods Orders, followed by new home sales and topped off by the FED.   The forecasts for these are -0.2%, -0.6% and 360k respectively, all of which will no doubt be over shadowed by the last time on the agenda for today.  The only other item are the crude oil inventories which, if analysts are to be believed, are expected to be very bearish and will have an impact both on the US Dollar and Canadian Loonie.  An interesting correlation for crude oil prices is their relationship with the Canadian/Yen Pair & a correlation I will be watching very closely in the future.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.