Archive for the ‘Forex Daily Report’ category

Euro lost positions against the Dollar

April 5th, 2010

The week began full of news, especially the good results in the U.S. unemployment rate last Friday, which remained stable at 9.7%, while in non-farm payrolls (Payrolls) increased by 162,000 jobs, the highest of the last three years. Furthermore, we observed that the Swiss franc has lost ground against the euro and the dollar, after rumors of a possible intervention by the Swiss National Bank (SNB) to stop the rally of the Swiss currency. Among other things, continuing political tensions between China and the United States due to the strengthening of the yuan. Repeatedly recall that U.S. President Barack Obama has asked his Chinese counterpart a softening of its currency with no response so far. For its part, the Treasury secretary, Timothy Geithner, decided early Sunday to postpone the publication of its report on exchange rate policy, which presumably certify that China manipulates its currency to keep it fixed to the dollar. Importantly, U.S. manufacturers say the yuan is overvalued by up to 40% and that this is one reason why there is the huge trade deficit.

Although the European market will be inactive in the meeting today, eyes will be across the ocean, highlighting the ISM non-manufacturing and pending home sales in the U.S.. » Read more: Euro lost positions against the Dollar

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Euro recovers losses against the dollar

March 31st, 2010

Completing the first quarter of 2010, we observed that the euro recovered from losses in the day yesterday following the announcement that the unemployment rate of Germany and the Consumer Price Index (CPI) for the Euro Zone have exceeded expectations. Among other things, the yen depreciated to the minimum of 8 weeks against the euro, at the prospect of a recovery in the U.S. labor sector, which would require less active and more foreign refuge high interest rate. So far, we have known that housing construction permits in Australia have recorded a contraction of 3.3% in February, while in Japan, the manufacturing PMI rebounded strongly to the 52.4 points, indicating a clear expansion of the steel industry . In New Zealand, kiwi depreciates against major majors, after business confidence weakened in March, due to uncertainties around the major world powers.

As mentioned earlier, Germany’s unemployment rate stood at 8%, when the previous data was 8.1%, while in the Eurozone, the CPI annual preliminary exceeded previous estimates, an increase of 1.5 % when the expected figure was 1.1%. » Read more: Euro recovers losses against the dollar

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Dollar expectant of the NFP

March 29th, 2010

At the beginning of the week, look like crosses the main listed market higher, after learning that the European Commission confirmed the rescue plan for Greece. However, it is clear that the euro has appreciated significantly against the greenback, currently operating below the altitude at 1.3500. Among other things, today we have learned that consumer confidence in the Euro Zone has recorded two-year highs in March, beating market expectations, renewing optimism about the stability of the economic bloc. The main key of that spike is due to the weakening of the European currency, which benefited the export sector.

It also grants mortgages UK have seen a contraction in February, while the M4 Money stock remained in line with expectations. During the evening session, has highlighted the results of the annualized retail sales in Japan. According to the Bureau of Statistics, retail sales grew by 4.2% in February, 2.4% higher than predicted by the operators.

For the next few hours, the eyes will be on the Consumer Price Index (CPI) for Germany, while in the U.S., the highlight will be the results of the conference Personal Income and Treasury Secretary Timothy Geithner. For this week, the market will be waiting for employment data across the ocean. For now, it is estimated that the unemployment rate will remain at 9.7% for the second consecutive month. » Read more: Dollar expectant of the NFP

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Day for the euro after European Summit

March 25th, 2010

Today will be an important day for the euro, to begin the summit of the Commission of the Euro Zone, where they expected a final decision on the ambitious plan cuts Greece, participation or not the IMF and aid to other countries danger such as Portugal and Spain. For its part, the eyes will be on Germany and its chancellor, Angela Merkel, the refusal to provide aid to Greece and to accept help from other international agencies, increasing the prospects of instability in the economic bloc. In the market, traders continue to focus on the target of 1.30-1.25 bearish in the short term if not reach agreement in the coming weeks. Among other things, observe as the pound recovers from losses in yesterday’s session, after the British Finance Minister Alistair Darling, announced the government budget for 2010. Among the initiatives to promote growth, Darling announced a special package of 2,500 million pounds for the industry, as well as investments in sectors such as digital and unemployment benefits. However, a measure that has affected the market has been the elimination of property taxes for people first entering the housing market. Finally, the highest authority in finance in the United Kingdom reiterated its commitment to halve the deficit (currently estimated to be 12.6% of GDP) for the next four years and said the debt will be in 170 billion pounds by the end of this year.

Among other things, yesterday we met during the Asian session that the Gross Domestic Product (GDP) from New Zealand stood at 0.4% in the monthly rate, while in the year, the New Zealand economy contracted 1.3%. As a result, the kiwi has depreciated 25 pips against the dollar at the time of posting, posting a daily minimum at 0.6994. » Read more: Day for the euro after European Summit

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Risks in Greece undermining the Euro

March 23rd, 2010

After the day yesterday, the dollar registered the three-week highs against the euro at the prospect that the European Commission did not reach agreement on tax cut plan of Greece, now observe how in both the dollar such as the yen and Swiss franc positions move against the main majors, following increasing demand for the same as the value of refuge. Note that the support on the above plan is not unanimous. Germany, the bloc’s economic engine, has underlined its opposition to aid to Greece after claiming a series of “legal issues” and state that the Hellenic government is not threatened with insolvency.

Interestingly, as in the previous session, Japan’s currency against the greenback is catching, appreciating 70 pips after the Senate approved the most important reform in American history in which, after the management of its president, Barack Obama, 95% of the population will have access to health coverage in the coming years.

For the day today, all eyes will be on the leading indicators in Canada, while in the U.S., the most important activities are the sales of existing homes, the Fed Manufacturing Survey of Philadelphia and ABC Consumer Confidence / Washington Post. So far, we have learned that mortgage approvals in February MBA UK have exceeded expectations, while the Consumer Price Index (CPI) showed a decline in Britain last month, to settle at 3%, when the previous figure was 3.5%. As a result, the cable depreciated 75 pips at the time of the announcement. » Read more: Risks in Greece undermining the Euro

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demand for dollars in the market

March 22nd, 2010

Fiscal risks in Europe continue to weaken the euro and sterling. On one hand, Greece has failed so far the European Commission approval on its plan to cut its huge deficit, whereas in the UK, increasing the prospects of a new recession, if the British economy does not cut its current debt estimated at 12.6% of GDP. As a result, the euro fell to the lowest in two weeks at 1.3503 against the dollar, while cable flirts with double-deck located at 1.4939 dollars per pound. Among other things, the dollar rallied against major majors, after parliament passed major healthcare reform in history, in what was allocated 960,000 million over 10 years to provide health coverage to 95% of the U.S. population.

For the next few hours, the eyes will be on the press conferences of the presidents of the Bank of England (BoE) and European Central Bank (ECB), Mervyn King and Jean Claude Trichet, while across the ocean, the market will be waiting to address the Secretary of U.S. Treasury, Timothy Geithner, at the American Enterprise Institute, on financial reform.

Furthermore, we must emphasize once again that U.S. has expressed its disagreement on the weakening of the yuan. On Thursday, Geithner said that China will eventually need to implement more flexible measures in its monetary policy, because the current levy, set by the Bank of China since 2008, not only detrimental to China, but also its main trading partners. According to U.S. figures, U.S. exporters estimate that the yuan has depreciated 40% against the dollar, giving its products an edge in world markets. » Read more: demand for dollars in the market

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Rebound of loonie and Swiss franc

March 19th, 2010

Despite being limited macro data scheduled for today, the major currency pairs we offer interesting tours, highlighting the surge of the loonie to the greenback, while the franc continues to push against the greenback., Trading at this time when lowest since October 2009. Among other things, uncertainties surrounding Greece’s fiscal position remains a key factor in the weakening of the euro. According to the comments of some members of the European Commission, it is difficult for Greece to rectify its economy, after recording a deficit of close to 12.7% of their Gross Domestic Product (GDP) without the assistance of the International Monetary Fund (IMF). However, the Hellenic prime minister, George Papandreou, has indicated that the current problems in the country should be solved without foreign aid, but stressed that he would like more support from their European neighbors.

Among other things, the motto of the old continent is still losing positions on the major majors, then published the results of the producer price index for the Eurozone. According to the Statistical Office of Germany, that industry has registered a slower contraction rate in the year, while the monthly weakened in February. In Asia, the Index of Industrial Activity in Japan has exceeded expectations, while in New Zealand credit card spending rose to 1.1% annualized, reflecting the recovery in domestic consumption. In Canada, we learned that the Consumer Price Index (CPI) has exceeded expectations, as it fell by 1.6% in the annualized rate to 0.7% in the month. As a result, the loonie can see 75 pips so far.
For the next few hours, the eyes will be on retail sales in Canada. » Read more: Rebound of loonie and Swiss franc

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Dollar Expectant of US CPI

March 18th, 2010

After the president of the U.S. Federal Reserve (FED) Ben Bernanke will defend to the Central Bank as the agency most qualified to be the supervisor of the U.S. financial system, the dollar has advanced against its major positions counterparts. However, the euro also weakened by fears driven environment of severe fiscal crisis experienced by the euro zone and in which, if there is no quick solution could increase economic instability in the old continent. Earlier today, Prime Minister of Greece, George Papandreou, has indicated it will not appeal for economic aid from the International Monetary Fund (IMF) and stated that awaits more support from the European Commission.

Among other things, today we have learned that the Swiss industrial production has exceeded expectations, although still in negative numbers, while the trade balance of the Euro zone has been below the estimate. For the next few hours, the focus will be on the Consumer Price Index, initial requests for unemployment, leading indicators and the Fed Manufacturing Survey of Philadelphia in the United States. » Read more: Dollar Expectant of US CPI

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Tension between US and China benefit the dollar

March 15th, 2010

On the first day of the week, we see as the greenback advanced to senior positions majors after increasing political tensions between the U.S. and China. Recall that a few days ago, Prime Minister Wen Jiabao defended the valuation of the Yuan and stressed that the stability of its currency is a key factor contributing to the recovery of the global economy. Across the ocean, the U.S. president, Barack Obama, has expressed discomfort over the valuation of currency, informing that the renminbi rises weaken the competitiveness of the dollar in international trade, benefiting the export sector of the giant Asia. However, the greenback’s gains were tempered by concerns about the U.S. rating, after learning about an article in the newspaper “Financial Times” that Moody’s would be to announce a cut in its credit rating unless consolidate public finances more than expected by the Obama administration.

Among other things, gave sterling positions against the euro, the dollar and yen on prospects of a weakening of Gross Domestic Product (GDP) and after increasing fiscal risks in the UK. » Read more: Tension between US and China benefit the dollar

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New monthly maximum of Euro/Dollar

March 12th, 2010

At the workshop today, we see as the dollar weakens against major currencies, after decreasing risk aversion in the currency market as a result of good macroeconomic data for China. Recall that in yesterday, the Asian giant’s inflation recorded the maximum 11 months, reflecting the strong growth experienced in recent months, while in the evening session, we learned that housing prices in China have grown at fastest pace in 20 months. We have also strengthened the euro after the collapse of conversation around the financial reform in the United States and knew that industrial production in the Euro Zone were located in positive territory in January.

Among other things, the yen appreciates against the dollar, disclosed after the Bank of Japan (BoJ) could increase the amount of money on incentive plans, because the current has not emerged the desired effect on the economy. For his part, Prime Minister of Japan, Yukio Hatoyama, said today that the country needs to take measures against the yen’s recent strength which, in its view, does not reflect the situation of Japanese economic and industrial weakness, leaving the door open for perform the BoJ intervention if Japan’s currency continues to appreciate. » Read more: New monthly maximum of Euro/Dollar

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