Wednesday sees the publication of the U.S. Industrial Production figures at 13:15 GMT. This release measures the change in the total inflation adjusted value of output that is produced by mines, manufacturers, and utilities. This release is important for forex traders as it is one of the key indicators of understanding the health of the U.S. economy. June showed figures of -1.1%, whereas analysts predict this months figures to improve slightly to -0.6%. Such a result may turn out to have a dramatic impact on the forex market!
Since the beginning of the week, it seems that the greenback has been range trading against a number of its most traded currency pairs. For example the EUR/USD has been trading between the 1.3980 and 1.4020 levels in the past 2 days. This example signals that the USD has failed to find a clear direction thus far this week. Today, for example saw mixed U.S. data and optimistic Goldman Sachs profits report. However, the Dollar yet again failed to find a constant direction throughout today.
If the U.S. Industrial Production publication turns out to be better than forecasts, then the Dollar may make much gains in Wednesday’s trading. However, if results are worse than the forecasted -0.6%, this may lead to a bearish USD going into end-of-week trading. ForexYard advises traders to open their USD positions now, in order to make maximum profits from the forex market. If you want to start making big profits now, you should open an account as soon as possible.
