Daily Morning Report 13/11/2012

The dollar rose against most major global currencies on Tuesday Asian session.

Mondays Eurogroup meeting ended with Eurozone finance ministers agreeing to extend Greece’s fiscal adjustment period by two years but deciding to put off until next week final decisions on the disbursement of the next Greek bailout tranche and the method to make the country’s debt sustainable. Once approved, the next shot of financial aid will end shorter-term solvency issues for Greece, but the country and creditors must still agree on ways to lower longer-term debt burdens, which dampened spirits.

The dollar also saw support on growing fears the U.S. risks falling into an avoidable recession in 2013. If untreated, the ‘’fiscal cliff’’ could siphon over USD600 billion out of the U.S. economy next year alone in the form of rising taxes and cuts to government spending.

Later Tuesday, the U.S. is to release official data on the federal budget balance. In Europe, the ZEW Centre for Economic Research will release its closely watched report on German economic sentiment, as well as data on sentiment in the wider Eurozone.

Daily Morning Report 12/11/2012 | Forex Trading Analysis

  The dollar fell against most major global currencies on Monday amid growing concerns regarding the US ‘’fiscal cliff’’ that could send the country into a recession next year. At the end of this year, tax breaks are set to expire and at the same time cuts to government spending are scheduled.

  In Europe Greek parliament approved a budget for next year, days after approving EUR13.5 billion in spending cuts and tax hikes needed to appease creditors. European and multilateral creditors required a new budget in order for Athens to tap fresh bailout money. European finance ministers are due to meet later in Brussels on Monday, though they may spend time reviewing Greece's commitment to austerity. Market participants, however, are not expecting European Union officials to disburse immediately the EUR31.5 billion fresh rescue funding to Greece.

  In Japan, official data revealed the economy contracted by annualized 3.5% in the third quarter of this year, which weakened the yen against the USD.

  Markets in the U.S. and Canada will be closed on Monday for national holidays.

Daily Afternoon Report 08/11/2012

The U.S. dollar remained broadly higher against the other major currencies on Thursday, as concerns over U.S. fiscal policy supported dollar demand, while investors awaited the European Central Bank’s post-policy meeting press conference later in the day.

Overall market sentiment continued to be weighed by concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, which could threaten U.S. and global growth, while the applications for jobless benefits fell by 8,000 to 355,000 in the week ended Nov. 3, as the Labour Department announced today.

The euro remained under pressure after a successful Spanish bond auction on Thursday eased pressure on Prime Minister Mariano Rajoy to request a bailout before the end of this year.

Later on, the euro turned even lower against the U.S. dollar on Thursday, trading close to a two-month low after European Central Bank President Mario Draghi said that economic activity in the euro area is expected to remain weak in the near future.

Speaking at a press conference following the ECB's November policy meeting, Draghi said that the bank expects the euro zone economy to remain weak "in the near term", but financial market confidence "has visibly improved on the back of our decisions as regards Outright Monetary Transactions," he added, referring to the bank's bond buying program unveiled in September.

Elsewhere, Sterling found support after the Bank of England said it was maintaining the benchmark interest rate at 0.50% and the size of its asset purchase program unchanged at GBP375 billion, following its policy-setting meeting.

In other news, official data earlier showed that the Australian economy added 10,700 jobs in October, far more than the expected 200 increase, while the unemployment rate remained unchanged at 5.4%, beating expectations for a rise to 5.5%. Finally, the New Zealand, government data showed that the unemployment rate jumped to 7.3% in the third quarter, up from 6.8% in the previous quarter and a 13-year high.