Wednesday, 12 December 2012

Daily Morning Report 12/12/2012 | Forex Trading analysis


Following what has been an impressive run this year, the Australian dollar took a small breather against its U.S. rival in Wednesday’s Asian session. A weak batch of consumer data appeared to be the culprit.
In news published earlier, the Westpac Melbourne Institute Index of Consumer Sentiment  posted a surprise 4.1% month-on-month drop in December to 100.0 when expectations were for an increase (rose 5.2% in November) after the RBA cut the cash rate earlier this month. The index is now below the November 2011 level when the RBA first cut the cash rate in the current easing cycle with cuts totaling 175 basis points so far. While consumers with mortgages responded positively to the RBA rate cut (confidence rose 4.4% for this category), other respondents were quite downbeat.
In other news, the U.S. dollar was modestly higher against some of its major rivals in Wednesday’s Asian session and fractionally lower against some of the other majors as traders wait for headlines out of the Federal Open Market Committee later today.
Later Wednesday, the Federal Reserve concludes its final monetary policy meeting of the year and with U.S. interest rates at historic lows, there is little room for the central bank to affect change on that front. However, the dollar will be in play as traders await the Fed’s sentiment on additional quantitative easing. Monetary stimulus typically depresses the dollar and drives riskier assets higher.

Friday, 7 December 2012

Daily Morning Report 07/12/2012 | Forex Trading Analysis

 The number of Americans  applying for first-time claims for unemployment insurance payments came climbed less than expected. The Labour Department reported that applications for unemployment benefits rose to 370,000 last week, following an upwardly revision to 395,000 from 393,000 initially reported the previous week.
The BoE left its monetary policy unchanged at today’s meeting, maintaining the main interest rate at 0.5 percent and the asset purchases at £375 billion. Britain’s central bank is in a difficult position as inflation remains above the target, limiting the bank’s ability to ease the policy, while the recession calls for more accommodative measures.
Eurozone GDP showed a third-quarter contraction of 0.1 percent, to reflect a 0.6 percent drop in annual. German factory orders was the exception to the overall negative tone with orders rising 3.9 percent in October, to represent a 2.4 percent contraction in annual terms

Thursday, 6 December 2012

Daily Morning Report 06/12/2012 | Forex Trading Analysis

 The  Aussie Dollar! traded higher as the unemployment rate in Australia beat expectations edging slightly lower to 5.2 percent in November and added 13,900 new workers to the labour force. Remarkably, the economy shed 4,200 full-time workers while it seems the gains in November were the result of adding 18,100 new part-time staffers. The participation rate remained unchanged at 65.1 percent
The services industry in the United States is in tune with consumer spending figures than the ISM manufacturing report released fell to its lowest level of the year at 49.5 in November continues to grow and at a fast pace.
Decline came when sales of Spanish 3, 7, and 10-year bonds disappointed a maximum target of 4.5 billion Euros by only raising 4.25 billion in the auction. Euro-zone retail sales were reported to have declined 1.2% in October, the disappointing number kept EURUSD below 1.3100. Later today the ECB will announce the interest rate expectations are for the rate to be left at 0.75%. Also, an updated estimate of the Euro-zone GDP for Q3 will be released the previous estimate saw a 0.1% decline.

Wednesday, 5 December 2012

Slight fall in New Business

The UK service sector registered little change in business activity during November as incoming new work fell slightly for the first time in nearly two years. A tough economic climate was commonly reported to have undermined efforts to secure new business. UK Stock! This also weighed on service sector confidence, with sentiment falling in November to the lowest of 2012 so far. After accounting for seasonal factors, the Business Activity Index recorded 50.2, compared to 50.6 in October.
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