Investopedia Forex Outlook For April 2012 - Calendar of Events to Watch
  1. Investopedia Forex Outlook For April 2012 - Macro Highlights
  2. Investopedia Forex Outlook For April 2012 - U.S. And Europe
  3. Investopedia Forex Outlook For April 2012 - Asia, U.K. And Switzerland
  4. Investopedia Forex Outlook For April 2012 - Calendar of Events to Watch

Investopedia Forex Outlook For April 2012 - Calendar of Events to Watch

Japan: Tankan (April 1) The Tankan Survey is a quarterly survey conducted by the Bank of Japan, and is widely considered the country's best economic indicator. With comments that span the entire economy, forex traders can use this information to gauge the health of Japan's economy, as well as assess the likelihood of future policy decisions.

SEE: The Japanese Yen: What Every Forex Trader Needs To Know

Germany: PMI Manufacturing Index (April 2)

The Purchasing Managers Manufacturing Index is a monthly questionnaire designed to assess variables in the private sector economy, ranging from new orders to stock levels. With its exposure to the manufacturing sector, forex traders can use this information as a leading indicator of economic performance in a country.

Germany: PMI Services Index (April 4)

The Purchasing Managers Manufacturing Index for Germany is compiled by Markit, from a survey collected from a representative panel of over 500 companies in the country's services sector. Given developed countries' large services sector, this report is used by forex traders to gauge the likelihood of interest rate changes, as well as forecast the country's economic performance.

European Union: PMI Services Index (April 4)

The Purchasing Managers Index for the European Union is produced by Markit, based on data collected from a panel of 2,000 private sector firms located in Germany, France, Italy, Spain and Ireland, which account for an estimated 80% of Eurozone private sector services output. Forex traders use this report to determine the likelihood of rate changes, as well as forecast future economic performance.

Great Britain: CIPS/PMI Services Index (April 4)

The CIPS Purchaser Manager Index for Great Britain covers a number of industries, including transportation, communication, financial intermediation, business services, personal services, computing, hotels and restaurants. Forex traders use this information to determine the likelihood of rate changes and forecast the country's future economic performance.

SEE: The British Pound: What Every Forex Trader Needs To Know

European Union: Industrial Production (April 12)

The EU Industrial Production indicator measures the physical output from factories, mines and utilities from the 16 European Monetary Union members. These figures can help forex traders ascertain whether manufacturing is on the rise or fall, which tends to be a leading indicator for the overall economy, since manufacture precedes retail sales.

Japan: Bank of Japan MPB Minutes (April 12)

The Bank of Japan Monetary Policy Board Minutes are notes from the central bank's monetary policy board meetings, with a four to five week lag. Commentary contained within these minutes can help forex traders gauge the likelihood of future monetary policy actions, as well as the country's economic health and outlook moving forward.

Great Britain: Producer Price Index (April 13)

The Producer Price Index (PPI) measures prices paid by producers for raw material inputs before the products are passed on to consumers, as well as output or factory gate prices that are indicative of the prices paid by retailers. Forex traders can use this metric as a leading indicator of inflation, ahead of other popular indicators like the consumer price index (CPI).

SEE: Predict Inflation With The Producer Price Index

Italy: Consumer Price Index (April 13)

The Consumer Price Index (CPI) measures average prices for a fixed basket of goods and services that are commonly produced by consumers. Forex traders watch the monthly changes in this indicator, since it represents the official rate of inflation. Inflation has a negative impact on currency valuations, which means it's a bearish sign for investors.

Great Britain: Consumer Price Index (April 17)

The Consumer Price Index (CPI) measures average prices for a fixed basket of goods and services that are commonly produced by consumers throughout the UK. Britain's CPI is calculated using the HICP method preferred by the European Union. The measure is used as the Bank of England's inflation measure, making it very important for forex traders to watch.

Great Britain: Labor Market Report (April 18)

The Labor Market Report measures a variety of different aspects of employment to provide insight into the Britain's economic health. These statistics include labor force participation rate, ILO employment and claimant count unemployment figures. Forex traders use this measure in order to determine Britain's economic health.

Japan: Merchandise Trade (April 18)

Japanese Merchandise Trade measures the different between imports and exports for various goods and services. Since Japan is an export-driven economy, this is a very important measure for forex traders to watch, with a trade surplus being favorable for the Japanese yen.

SEE: What Is The Balance Of Payments?

Great Britain: Retail Sales (April 20)

Britain's Retail Sales figure measures the total receipts that stores intake selling durable and nondurable goods. Since consumer spending represents such a large part of Britain's economy, this is an important gauge of consumer sentiment and a leading indicator of corporate earnings. Forex traders look towards higher retail sales as a bullish indicator for the British pound.

Great Britain: Gross Domestic Product (April 25)

Britain's Gross Domestic Products (GDP) is the broadest and most-watched measure of aggregate economic activity encompassing every area of its economy. Forex traders will look for a higher-than-expected figure to boost the British pound, while anything lower than expected may hurt the currency relative to the U.S. dollar.

European Union: EC Economic Sentiment (April 26)

The European Union's EC Economic Sentiment measures both consumer and business sentiment to gauge the state of the economy. Forex traders use the metric as a leading indicator of economic health and future economic growth prospects.

Japan: Industrial Production (April 26)

Japanese Industrial Production measures the physical output from factories, mines and utilities. These figures can help forex traders ascertain whether manufacturing is on the rise or fall, which tends to be a leading indicator for the overall economy, since manufacture precedes retail sales.

Italy: Consumer Price Index (April 30)

The Consumer Price Index (CPI) measures average prices for a fixed basket of goods and services that are commonly produced by consumers. Forex traders watch the monthly changes in this indicator, since it represents the official rate of inflation. Inflation has a negative impact on currency valuations, which means it's a bearish sign for investors.

SEE: What You Should Learn About Inflation

European Union: HICP Flash (April 30)

The European Union's Harmonized Index of Consumer Prices (HICP) is a measure of inflation calculated by each member of the E.U. that is comparable to other countries around the world. The figure is used by the European Central Bank (ECB) to set inflation targets and is therefore extremely important for forex traders to watch.

Currently Outlooks for April 2012

  • EUR/USD – The euro is likely to remain under pressure throughout April, despite some progress made in defusing the situation in Greece. At the same time, there are many positive signs that the U.S. dollar may be recovering, which mean many investors are looking for the EUR/USD pair to fall lower during the month on a fundamental level.
  • GBP/USD – The British pound is likely to trend moderately lower in April, due to its less-than-robust recovery and ongoing austerity. With the U.S. economy improving, this could set the stage for a further fall in the GBP/USD pair, but it's important to take into account the possibility of a fiscal stimulus being introduced by Britain.
  • USD/JPY – The Japanese yen is likely to remain weak, but may gain some ground against the U.S. dollar on a technical level after its sharp drop. The market also shouldn't be surprised if Japan decides to implement additional stimulus measures designed to support growth and force the USD/JPY pair lower in April.
  • USD/CHF – The franc could see continued short-term strength against the U.S. dollar amid solid signs of strength in the U.S. economy. But the market should be wary of a potential reversal and return to the safe-haven currency's long-term trend against the dollar, if troubles resurface either globally or in the U.S. itself.

  1. Investopedia Forex Outlook For April 2012 - Macro Highlights
  2. Investopedia Forex Outlook For April 2012 - U.S. And Europe
  3. Investopedia Forex Outlook For April 2012 - Asia, U.K. And Switzerland
  4. Investopedia Forex Outlook For April 2012 - Calendar of Events to Watch
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