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.

US ADP

Private sector employment increased by 118,000 jobs from October to November, according to the November ADP National Employment Report®, which is produced by Automatic Data Processing, Inc. (ADP®), a leading provider of human capital management solutions, in collaboration with Moody’s Jobs! Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis. The October 2012 report, which reported job gains of 158,000, was revised down by 1,000 to 157,000 jobs.

ISM Services Gauge in U.S

The Institute for Supply Management’s index of U.S. non-manufacturing businesses, which covers about 90 percent of the economy, rose to 54.7 in November from the prior month’s 54.2, the Tempe, Arizona-based group said today.  ISM! Readings above 50 signal expansion, and estimates ranged from 51 to 54.7. The ISM services survey covers industries ranging from utilities and retailing to housing, health care and finance.

Tuesday, 4 December 2012

Daily Afternoon Report 04/12/2012 | Forex Trading Analysis

  The US dollar was broadly lower against the other major currencies as investor confidence was boosted by hopes that Greece’s plan to buy back debt will succeed. EURUSD found support after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion. European Union finance ministers were holding talks in Brussels on Tuesday, to discuss banking supervision in the euro zone.

  The GBP remained supported after data showed that construction sector activity in the U.K. unexpectedly declined to a three month low in November.

  The yen strengthened after Monday’s weak U.S. manufacturing data and ongoing concerns over the U.S. fiscal cliff enhanced the safe haven appeal of the currency.

 Click Here! The Australian dollar turned higher earlier after the Reserve Bank of Australia cut its benchmark interest rate to 3% from 3.25% in a widely anticipated decision. RBA Governor Glenn Stevens said the Australian dollar remains “higher than might have been expected” given lower export prices and a weaker global outlook.

Monday, 3 December 2012

Technical Level

EUR/USD
GBP/USD
USD/JPY
AUD/USD
USD/CAD
USD/CHF
R3:
1.3090
1.6137
82.33
1.0476
0.9971
0.9282
R2:
1.3075
1.6118
82.19
1.0466
0.9965
0.9275
R1:
1.3059
1.6100
82.12
1.0449
0.9957
0.9267
S1:
1.3045
1.6082
82.05
1.0432
0.9949
0.9252
S2:
1.3031
1.6064
81.91
1.0422
0.9942
0.9245
S3:
1.3015
1.6045
81.77
1.0395
0.9927
0.9238

Daily Morning Report 04/12/2012 | Forex Trading Analysis


The Australian Dollar rallied versus the U.S. Dollar as the Reserve Bank of Australia cut the benchmark lending rate by 25 basis points to 3.00 percent which was in-line with market expectations of a 90 percent probability that the RBA would cut the cost of capital today.
Forex Bulletproof 2.0 Patented Striker Technology! The global PMI release period was off to a good start, with outperformance in Asia and mostly floundering in Europe. US failed to hold its own, with its equivalent to the PMI, the ISM Manufacturing index, falling back into contraction, to its lowest official reading of the year. Just when US economic data was turning higher, it now appears to be backpedalling.
Greece offered to buy back as much as 10-billion Euros of bonds issued in a restructuring earlier this year, as an attempt to cut its debt load. The government said they will buy back bonds in a so called Dutch auction, and the government is willing to pay an average maximum purchase price of 34.1% for bonds maturing from 2023 to 2042. 
ECB and BoE are widely expected to maintain their current policy Forex Bulletproof 2.0 Patented Striker Technology! in December, we anticipate the Governing Council to strike a more dovish tone for monetary policy as the deepening recession in the euro-area threatens price stability. ECB President Mario Draghi may show a greater willingness to ease monetary policy further. BoE appears to be slowly moving away from its easing cycle as inflation stubbornly holds above the 2% target.

Technical Levels

EUR/USD
GBP/USD
USD/JPY
AUD/USD
USD/CAD
USD/CHF
R3:
1.3075
1.6104
82.89
1.0479
0.9957
0.9297
R2:
1.3059
1.6090
82.75
1.0467
0.9942
0.9277
R1:
1.3045
1.6076
82.54
1.0447
0.9935
0.9268
S1:
1.3015
1.6030
82.19
1.0403
0.9919
0.9258
S2:
1.2985
1.6021
82.11
1.0383
0.9912
0.9248
S3:
1.2971
1.5998
82.05
1.0362
0.9906
0.9239

Daily Afternoon Report 03/12/2012 | Forex Trading Analysis




The euro pushed higher Monday after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
Euro zone finance ministers were to hold talks in Brussels later in the day to discuss the terms of the new Greek aid deal, after Germany’s parliament gave it the green light on Friday. Furthermore, euro showed little reaction after Spain formally requested a bailout worth EUR37 billion for its banking sector.
Forex Bulletproof 2.0 Patented Striker Technology! Elsewhere, data showed that the final euro zone manufacturing purchasing managers’ index remained unchanged at 46.2 in November, the highest level since March, but remaining in contraction territory for the 16th consecutive month.
In the U.K., data showed that the manufacturing PMI rose to 49.1 last month, its highest level since August, from October's downwardly revised 47.3 and beating expectations for a reading of 48.1. However, the index remained below the 50.0 level which separates contraction from expansion for the seventh successive month.
Earlier Monday, official data showed that retail sales in Switzerland rose by 2.7% in October, less than the expected 4.1% increase. A separate report showed that the SVME PMI rose to 48.5 in November, a four-month high, from a reading of 46.1 in October.
In other news, the yen remained under pressure ahead of upcoming elections on December 16 which could lead to further monetary easing by the Bank of Japan, whereas the Australian dollar remained also under pressure after official data were published showing that domestic retail sales were flat in October fuelled expectations for a rate cut by the Reserve Bank of Australia at its policy meeting on Tuesday.
In latest news, the Institute for Supply Management’s U.S. factory index fell to 49.5 in November from 51.7 a month earlier, the Tempe, Arizona-based group said today. The dividing line between expansion and contraction is 50, and economists’ estimates ranged from 49 to 53.5. 
Forex Bulletproof 2.0 Patented Striker Technology!

Daily Morning Report 03/12/2012 | Forex Trading Analysis


The Australian dollar traded lower versus the greenback as Australian business’ reported a 2.9 percent operating loss in the third quarter while inventories increased by 1.1 percent suggesting the overall economic climate appears to have slowed.
Forex Bulletproof 2.0 Patented Striker Technology!

The greenback has gained strongly versus the yen after the dissolution of parliament in Japan and the dollar yen rate has increased over 3% on the monthly basis; this scripts the largest increase since February this year.
The euro suffered a bit of a setback as the wake of Moody's downgrade of the euro zone rescue fund late last week.  China's official manufacturing purchasing managers' index rose to a 7-month high of 50.6 in November from 50.2 in October, following a preliminary private sector survey that showed factory activity reviving to a 13-month high.


Forex Bulletproof 2.0 Patented Striker Technology!

Thursday, 29 November 2012

Daily Afternoon Report 29/11/2012 | Forex Trading Analysis



The U.S. dollar was broadly lower against the other major currencies on Thursday, as hopes for headway in tackling the U.S. fiscal cliff dampened safe haven demand for the greenback ahead of U.S. data on third quarter growth later in the session.
Meanwhile, the euro hit fresh session highs against the U.S. Click Here! dollar on Thursday, after official data showed that the U.S. economy grew at a faster rate than initially estimated during the third quarter of 2012, as export figures were revised up.
As the Commerce Department said, gross domestic product expanded by 2.7% in the three months to September, up from a preliminary estimate of 2.0%, but below expectations for growth of 2.8%.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell 393,000 from 416,000 the previous week, slightly less than expectations for a decline to 390,000.
Elsewhere Europe, Italy saw borrowing costs fall sharply at an auction of five and 10-year government bonds on Thursday, with the yield on 10-year bonds down to 4.45%, a two year low and the yield on five-year bonds falling to 3.23%, also a two-year low.
In addition to that, official data showed that the German unemployment rate remained unchanged at 6.9% in November as the number of unemployed people rose by 5,000, better than expectations for an increase of 15,000.
In other news, the Bank of England warned earlier that U.K. banks may not have enough capital put aside to insulate them from future financial market shocks.
Finally, the yen remained under pressure amid expectations that upcoming elections on December 16 will result in growing political pressure on the Bank of Japan to implement more aggressive monetary easing measures.
Later Thursday, German Bundesbank President is due to speak at the Christian Democratic Union Economics Council in Berlin.


Click Here!

Daily Morning Report 29/11/2012 | Forex Trading Analysis

The dollar fell against the major currencies on Thursday. President Obama told the world that “something will be done” to steer the country away from the fiscal cliff, which boosted the euro on sentiment U.S. policymakers will put politics aside and make tough tax and spending reforms needed to avoid the cliff. U.S., the Commerce Department reported earlier that new home sales fell by 0.3% to a seasonally adjusted 368,000 units in October, confounding expectations for an increase to 390,000.
Later Thursday, the U.S. is to produce revised data on third quarter gross domestic product, as well as data on pending home sales and initial jobless claims.

Wednesday, 28 November 2012

Daily Afternoon Report 28/11/2012 | Forex Trading Analysis


Greece bailout agreement, most of the responding chatter has already been exhausted, and we have been left in today’s European session without a major fundamental story to guide trading. Data showing U.S. consumer confidence at a four-year high also provided a modest boost for the dollar, though a looming budget crisis tempered optimism about the American economy and kept dollar gains in check.
The agreement to provide aid for Greece did not help the market sentiment. In fact, that agreement may fail as the International Monetary Fund did not accept its terms. The inability of the US politicians to find a compromise and avoid the fiscal cliff did not help traders’ confidence either.
The Australian dollar fell against the Japanese yen and the US dollar yesterday and remained soft today. Like its Canadian counterpart, the Aussie managed to strengthen versus the euro.

Tuesday, 27 November 2012

Daily Morning Report 28/11/2012 | Forex Trading Analysis


 In Asian trading on Wednesday dollar traded mixed to lower against the world's major global currencies on growing fears regarding actions US policymakers need to take to steer the American economy away of the ‘’fiscal cliff’’ as time is running out. EURUSD was down on fears that despite a recent deal that will free up aid to Greece, the broader European debt crisis won't abate anytime soon. Many investors seeking safe haven opted for the yen.
Yesterday Conference Board, a market research group, reported that its index of consumer confidence rose to 73.7 in November from a reading of 73.1 in October, whose figure was revised up from 72.2. In other announcement the U.S. Census Bureau reported that core durable goods orders, which exclude volatile transportation items, rose by a seasonally adjusted 1.5% in October. Total orders for durable goods were unchanged last month compared to expectations for a 0.6% decline. Standard & Poor's/Case-Shiller home price index rose at an annualized rate of 3.0% in September from a year earlier, beating expectations for a 2.9% increase.
Later, the US is to release official data on new home sales, a leading indicator of economic health, as well as government data on crude oil inventories. Also the Fed is to publish its Beige Book.

Daily Afternoon Report 27/11/2012 | Forex Trading Analysis


The Europe we saw at the beginning of today’s session was very different than the Europe of yesterday, at least from a trader’s perspective. Euro-zone leaders came to an agreement on Greece that lowered interest rates, returned some of the money made off of previous loans, and setup the release of the next 34.4 billion Euro aid tranche in December. The Euro has now erased all of the gains following the Greece announcement and is trading slight above 1.2950 against the US Dollar in currency markets.
UK gross domestic product for Q3 confirmed 1.0% economic expansion over the quarter, as the Olympics and previous quarter’s Jubilee holiday gave the UK a one-time spike in growth. Office for National Statistics’ release, output in production industries rose by only 0.9%, down from a previously estimated 1.1%. Service industry was confirmed to have seen a 1.3% rise in output.
The US Dollar rose a bit when Fed member Fisher said during a speech in Berlin that he advocates setting limits to QE as soon as the next meeting. Fisher said that the US’s biggest problem is unemployment and that inflation is under control in the US. 

Monday, 26 November 2012

Daily Morning Report 27/11/2012


 The dollar weakened against the world's major global currencies on Tuesday after IMF and EU policymakers agreed to reduce Greece's debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020, an accord needed by IMF to free up aid. Greece will cut debt burdens down further to 110% by 2022, while EU and IMF policymakers agreed to trim interest rates on Greek loans, extend their maturity by 15-30 years, and grant the country a 10-year interest repayment deferral. Greece is set to avoid default.
 In Spain’s Catalonia region separatist parties won the majority of the public vote in elections held over the weekend, which tempered the euro's rally. Catalonia accounts for nearly a fifth of Spain's economic activity and provides the most tax revenue to the central government.
 Later US are to release official data on durable goods orders, a leading indicator of production, as well as industry data on house price inflation. US consumer confidence data will also be published and FED chairman is to deliver brief remarks at the National College Fed Challenge Finals, in Washington DC.

Daily Morning Report 26/11/2012 | Forex Trading Analysis


  The dollar gains against the major global currencies on Monday as investors parked in the safe-haven greenback waiting to see if Eurozone and IMF will work out a deal to help Greece. The IMF, EU finance ministers and officials from the European Central Bank are due to meet on Monday to discuss freeing up pending aid for Greece. European governments support giving Greece a two-year extension to cut the country's debt to 120% of GDP by 2022, a proposal at which the IMF has balked. Investors hope that all sides strike a deal and free up aid earmarked for Athens, though until such an announcement becomes public, the dollar will be the safe-heaven.

Thursday, 22 November 2012

Daily Morning Report 23/11/2012 | Forex Trading Analysis

EU leaders just finished first round of negotiations to agree on a budget for next year, still with not a final decision over it, as Germany PM Angela Merkel has said at the end of the meetings, a few hours ago: "I believe that the positions are quite far apart, in certain respects," Merkel told journalists, as Reuters reported earlier.
The Euro traded lower against the British Pound on Friday. Meanwhile, the Euro was up against the U.S. Dollar and down against the Japanese Yen.
The Asian market session was a very quiet one to end the week, since USD traded modestly lower.
Later Friday, Destatis is expected to release the quarterly German GDP report, while the Ifo Institute for Economic Research is expected to release the monthly German Ifo Business Climate report.
The EU Economic Summit is on its 2nd day as the Heads of state are due to meet in Brussels about Spain, Greece, and plan for deeper economic and monetary integration.
Elsewhere, the Statistics Canada is expected to release its monthly Consumer Price Index data.

Daily Afternoon Report 22/11/2012


  The euro was trading close to a three-week high against the U.S. dollar on Thursday, as improved manufacturing data from China and the euro zone and hopes for a deal on an aid payment for Greece supported demand for the single currency.
  After the data of German Flash Manufacturing PMI were released the single currency found support. Germany’s manufacturing purchasing managers’ index rose to 46.8 in November, up from 46.0 in October and better than forecasts for a reading of 45.9. Germany’s services PMI came in at 48.0, below expectations for a reading of 48.5. The euro zone’s manufacturing PMI rose to 46.2 this month from 45.4 in October, above expectations for a reading of 45.6. The euro zone’s services PMI declined to 45.7, from 46.0 in October, compared to expectations for a reading of 46.1.

  The euro was also supported after German Chancellor Angela Merkel said an agreement to unlock a delayed bailout installment for Greece was still possible when euro zone finance ministers resume talks on Monday. Today Spain successful auctioned EUR3.38 billion of three and five-year bonds at lower yields than previously, easing pressure on Madrid to seek a bailout.
The data came after a report earlier showed that China’s preliminary HSBC manufacturing PMI rose to 50.4 in November, up from a final reading of 49.5 in October. The data eased concerns over a slowdown in the world’s largest economy.
  Trade volumes are expected to remain low on Thursday, with US markets closed for the Thanksgiving holiday.

Daily Morning Report 22/11/2012 | Forex Trading


In latest news, the China HSBC Flash Manufacturing Purchasing Managers Index hit 50.4 for November, a 13-month high and up from a final October reading of 49.5. As a result, the dollar was sent dipping as investors sold the unit to invest in stocks and higher-yielding asset classes. Renewed hopes that Greece will soon tap bailout funds sent the U.S. Dollar falling as well.

In Brussels, Eurozone finance ministers and representatives from the International Monetary Fund failed to agree to disburse aid to Greece earlier this week. European governments support giving Greece a two-year extension to trim the country's debt burdens to 120% of GDP, though the IMF did not agree.

Meanwhile, the IMF opposed the two-year extension and says policymakers should stick with plans for Greece to bring debt burdens down to 120% by 2020 — and not 2022 — but has said European countries should take a hit on Greek loans, which has run into opposition in Europe.

Still, the euro gained on hopes that all sides will strike a deal at a follow-up meeting on Monday and free EUR31.5 billion earmarked for the crisis-ridden country.
Later Thursday, European Union leaders will hold the first day of a two-day summit in Brussels to discuss the debt crisis and plans for greater fiscal and monetary integration across the region, while, the Eurozone is to release preliminary data on manufacturing and service-sector activity, leading indicators of economic strength. Germany and France are also to release individual reports.
U.S. markets will be closed on Thursday for the Thanksgiving holidays.

Wednesday, 21 November 2012

Daily Afternoon Report 21/11/2012 | Forex Trading Analysis


The euro was unchanged against the U.S. dollar on Wednesday, as optimism that an agreement on a delayed bailout payment for Greece is close. The euro fell against the greenback earlier after talks between euro zone finance ministers and the International Monetary Fund concluded on Tuesday without reaching a deal on unlocking Greece’s bailout package, amid disagreements on how best to reduce the country’s debt to sustainable levels. Jean-Claude Juncker said that a deal was close, but he didn’t know when Athens would receive its next aid installment. The talks are set to continue next Monday. The pair showed reaction after the US Department of Labor announced the number of individuals filing for initial jobless benefits last week declined to a seasonally adjusted 410,000, in line with expectations. Jobless claims for the preceding week were revised up to 451,000 from a previously reported 439,000. Volumes are falling lower due to US Thanksgiving holiday on Thursday.

Tuesday, 20 November 2012

Daily Morning Report 21/11/2012 | Forex Trading Analysis

The dollar strengthened against the world's major global currencies on Wednesday as investors remained camped out in the safe-haven currency awaiting word of progress over the U.S. fiscal cliff.
Investors were on edge due to uncertainty over the U.S. fiscal cliff, a combination of expiring tax breaks and inbound spending cuts converging at the same time after the end of this year. Earlier, Federal Reserve Chairman Ben Bernanke urged the White House and Congress to find a way to steer the U.S. economy away from the cliff, which fueled demand for the dollar.
The euro continued to weaken on reaction to a Moody's decision to downgrade France's sovereign ratings to Aa1 from Aaa. Meanwhile, in Europe, eurozone policymakers opened a meeting to discuss Greece's finances, with a EUR31.5 billion tranche of aid pending approval.
Eurozone finance ministers and senior International Monetary Fund officials ended a nearly 12-hour meeting with no agreement on how to bring Greece’s debt down to a sustainable level, and they failed to approve an overdue tranche of bailout loan money for the country despite a looming threat of bankruptcy.  The failure to approve immediate payment of a long-overdue E31.5 billion loan tranche to Greece came despite official acknowledgement from Jean-Claude Juncker, who chairs the Eurozone finance ministers’ group, that Greece had met all the conditions demanded of it. The 17 Eurozone finance ministers, together with the heads of the European Central Bank, International Monetary Fund and the EU’s Economic and Monetary Affairs Commissioner, Olli Rehn, discussed a package of options to reduce Greece’s national debt to 120% of GDP by 2020 – the benchmark for sustainability upheld by the IMF.

Elsewhere in the U.S., housing starts rose 3.6% in October to a seasonally adjusted annual rate of 894,000, the biggest gain in four years. The number of building permits issued in October fell 2.7% to a seasonally adjusted 866,000. Both figures beat expectations.
In other news, the Bank of Japan met earlier and left benchmark interest rates unchanged at 0.10%. The monetary authority also made no changes to the country's JPY91 trillion asset purchasing plan, though the yen weakened to a 7-month low against the greenback on Wednesday amid building market sentiment that looser policies are on the way after December's elections.

Japanese opposition leader Shinzo Abe may become the country's next prime minister during Dec. 16 elections. Abe has said he favors more aggressive monetary stimulus measures to jolt the Japanese economy.
Later Wednesday, the U.S. will release weekly government reports on initial jobless claims and crude oil inventories.  In addition, the University of Michigan is to release revised data on consumer sentiment and inflation expectations.

Daily Afternoon Report 20/11/2012 | Forex Trading Analysis


After another rally spiking to 1.2830 as the NY session opened, the EURUSD eased back to the 1.2800 psychological level. Fed's Lacker is in favour that the US Congress limits the central bank's credit policy and is against linking the policy to the unemployment rate. Also, Reuters reported that Italy may veto the EU budget if it goes against the country’s interests. The pair is currently trading sideways at 1.2800 after the release of weaker US building permits and better than expected housing starts.
Later Bernanke (FED) will speak and might 

Daily Morning Report 20/11/2012 | Forex Trading Analysis


The dollar strengthened against the world's major global currencies on Tuesday after Moody's stripped France of its triple-A rating, which wiped out appetite for risk.

Moody's Investors Service earlier said it had cut French sovereign ratings to Aaa1 from Aaa, which sent investors ditching the EUR/USD and commodities to digest the news, which made the dollar the perfect safe haven.
As Moody’s published earlier, “France's long-term economic growth outlook is negatively affected by multiple structural challenges, including its gradual, sustained loss of competitiveness and the long-standing rigidities of its labour, goods and service markets.” Furthermore,  “France's fiscal outlook is uncertain as a result of its deteriorating economic prospects, both in the short term due to subdued domestic and external demand, and in the longer term due to the structural rigidities noted above.”
The market kept an eye on the Bank of Japan, which was holding a monetary policy meeting later Tuesday.
The Bank of Japan may hold benchmark interest rates unchanged, though upcoming elections could see opposition leader Shinzo Abe become the next Prime Minister. Abe has called for more aggressive policy action and stimulus from the Bank of Japan.
In other news, foreign direct investment in China fell for the 11th time in 12 months as labour costs rose, a slowdown threatened to drag growth to a 13-year low and a territorial dispute with Japan weighed on trade.
Later Tuesday, the U.S. is to publish official data on building permits as well as data on housing starts, while, the U.S. Fed Chairman is due to deliver a speech titled "The Economic Recovery and Economic Policy" at the Economic Club of New York. Finally today, the Eurozone of finance ministers will hold talks in Brussels to discuss financial issues in the bloc.

Monday, 19 November 2012

Daily Afternoon Report 19/11/2012 | Forex Trading Analysis


  The U.S. dollar was lower against the other major currencies on Monday, as optimism over signs of progress in resolving the U.S. fiscal cliff and hopes that Greece will soon receive its next aid installment dampened demand for the greenback. Traders were looking ahead of a meeting of the eurogroup of euro zone finance ministers on Tuesday to discuss whether Greece will receive its next tranche of financial aid. A decision on unlocking Greece’s next bailout aid has been delayed by disagreements between officials from the International Monetary Fund and Europe on how best to reduce the country’s debt to manageable levels. Concerns over the economic outlook for the euro zone persisted after Germany's central bank warned earlier that economic growth in the bloc’s largest economy is weakening as a result of the crisis in the region, as well as problems in the global economy.
  On Monday, the National Association of Realtors said that U.S. existing home sales rose by 2.1% to a seasonally adjusted 4.79 million units in October from September’s revised total of 4.69 million. September existing home sales were initially reported at 4.75 million units. Analysts had expected U.S. existing home sales to rise to 4.75 million units in October.
There was an error in this gadget

Pages