Here are the key factors to keep in mind today for US Dollar trades:

• US GDP: Forex traders will get a second look at the first-quarter GDP out of the US, but economists expect an even weaker report than the previous one. First-quarter GDP is expected to show a contraction of 0.1% in the first-quarter of 2015 and an annualized contraction of 0.9%. This can be compared to the previous GDP report which showed a first-quarter contraction of 0.1%, but an annualized increase of 0.2%.
• US NAPM-Milwaukee Index: The NAPM-Milwaukee Index is expected to come in at 50.00 for May which would represent an improvement over April’s level of 48.08. Forex traders should be careful as regional manufacturing reports have been rather volatile and prone to downward surprises. The Dallas Fed Manufacturing Index was the latest example of such a disappointment.
• US Chicago Purchasing Managers Index: The Chicago Purchasing Managers Index is a much more important regional index than the NAPM-Milwaukee Index and may be the biggest one on the radar screens of forex traders. Expectations call for an increase to 53.0 in May, up 0.7 points from the 52.3 reported in April. Given the expected GDP disappointment forex traders should be wary of a figure below the one reported in April.
• US University of Michigan Consumer Confidence Index: Economists expect that the US consumer grew slightly more confident in May than previously reported. The final revision is expected to show the University of Michigan Consumer Confidence Index rise to 90.0 which forex traders can compare to the previously reported level of 88.6.

Here is the key factor to keep in mind today for Japanese Yen trades:

• Japanese National Consumer Price Index: The Japanese National CPI was reported in-line with expectations and showed an annualized increase of 0.6% in April. This marks a sharp slowdown from the 2.3% increase reported in March. The annualized core National CPI rose 0.3%, also matching expectations while the annualized National CPI excluding fresh food rose 0.3%, beating expectations for a gain of 0.2%. Forex traders can compare this with the National CPI in March which showed an increase of 2.1% and 2.2% respectively.

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