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.

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. 

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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.

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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.

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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. 

U.S. Stocks Turn Positive

Reported earlier: U.S. Stocks Mixed as Market Downplays Economic Data, EuropeBY ALEXANDRA SCAGGSNEW YORK--U.S. stocks erased early-morning losses in choppy trading, shrugging off weak data and worries about Europe.The Dow Jones Industrial Average fell 9 points, or 0.1%, to 12567. The Standard & Poor's 500-stock index was flat, at 1323, and the Nasdaq Composite was up 4 points, or 0.2%, to 2847.U.S. retail sales slipped for the second consecutive month in May, the first string of declines in nearly two years. While the measure fell by less than expected in May, April retail sales were revised downward into negative territory. Businesses held more inventory than expected in April because of sluggish sales.J.P. Morgan Chase & Co. rose 2.3%, and was the fourth-largest gainer in early trading. Chief Executive Jamie Dimon's testimony to the Senate gave the impression the bank wouldn't see crippling fallout from its unexpected $2 billion trading loss."He's appeasing the stock market here, so now we're calm to the fact that J.P. Morgan isn't going to get decimated" by its losses, said Ryan Detrick, chief technical strategist with Schaeffer's Investment Research. "That's led us back a bit."European markets erased early gains to turn mostly lower as worries about Spain's debt and banking crisis festered and investors responded to weak economic data. Euro-zone industrial output was at its weakest level since September 2010 in April.The Stoxx Europe 600 was down 0.3%, after being up 0.4% at its intraday high.Asian markets were mostly higher following Tuesday's U.S. gains, with Japan's Nikkei Stock Average rising 0.6% and China's Shanghai Composite climbing 1.3%.Crude-oil futures slipped 0.2% to $83.46 a barrel, while gold futures rose 0.6% to $1623 an ounce. The U.S. dollar lost ground against the euro and the yen.In corporate news, shares of Dell rose 4.5% after the computer maker said it plans to start paying a quarterly cash dividend of 8 cents a share.Johnson & Johnson gained 1.1%. The blue chip health-care company said it received regulatory clearance to close its $19.7 billion bid for medical-device maker Synthes. Analysts from J.P. Morgan Chase, Jefferies & Co. Inc., and Raymond James Financial subsequently upgraded the stock.Facebook edged up 0.8%, putting it on track to post back-to-back gains for just the second time since going public. The stock rose 1.5% Tuesday to close at a one-and-a-half-week high.Scotts Miracle-Gro dropped 8% after announcing it expects to fall short of estimates of full-year earnings and sales growth it had provided earlier as a result of slowing consumer demand and lower-than-expected margin rates.Printing company 3D Systems fell 5.6% after the company said it is offering shares of its common stock for sale to the public.