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Analytics, News, and Forecasts for CFD Markets: currency news — 05-11-2012.
The euro fell to its lowest level in almost eight weeks against the dollar on worries that Greece might leave the euro zone, if the parliament does not approve a new round of austerity measures in a vote on November 7. Greek parliament has for the package of measures to reduce costs, increase tax and other reforms in the amount of 13 billion euros. If the measures and the budget for 2013 are approved, Greece will be able to get help from the European Union and the International Monetary Fund.
The dollar index rose 0.2% to 80.78, registering growth of the third day in a row, before tomorrow's U.S. presidential election.
The dollar rose against most of its 16 major counterparts on speculation that the winner of the presidential election this week is promoting a plan to reduce the deficit of the country.
The pound fell for a second day against the dollar after a report showed that the PMI index in the services sector declined significantly in October, raising concerns about the sustainability of recovery, which was noted in the third quarter. According to the study index purchasing managers in the services sector fell in October to the level of 50.6 from 52.2 in September, registering with the lowest value in the last 22 months. But, despite this, the figure is still above 50, that indicates expansion in the sector. Also, the fall of the currency was due to expectations of market participants the two-day meeting of the Bank of England, which will discuss the measures of monetary stimulus.
The Canadian dollar fell from almost one-week high, as the appetite for risk among investors began to wane on fears that Greece will strive to obtain the next tranche of aid from the eurozone. Note also that the published data from the U.S., which is the largest trading partner of Canada, showed that the index of business activity in the services sector fell in October to the level of 54.2 from 55.1 in September. At the same time, economists predicted that the figure will drop to the level of 54.5.
The euro remains stable after the data reported a decline of purchasing managers' index for the non-production sphere slightly below the forecast of U.S. economists. The index fell in October to 54.2, while the predicted decline to 54.5. However, were slightly lower than the forecast value has had little impact on the markets.
Markets expect tomorrow's U.S. presidential election, and the ECB's monetary policy Thursday (predict keep rates at 0.75%).
USD / CAD rose to 0.9977 after data showed that in September, the number of building permits in Canada fell by 13.2% against the forecast of -3.0% and 9.5% in August.
Sold E6.785bln vs target E5.6bln-E6.8bln
- E3.792bln 3-month BTF, avg yield -0.014% (-0.022%), cover 2.50 (2.58)
- E1.596bln 6-month BTF, avg yield -0.007% (-0.012%), cover 3.35 (3.59)
- E1.397bln 12-month BTF, avg yield 0.019% (0.015%), cover 2.93 (4.1)
09:30 Eurozone Sentix Investor Confidence November -22.2 -20.7 -18.8
09:30 United Kingdom Purchasing Manager Index Services October 52.2 52.0 50.6
The euro fell to the lowest in almost eight weeks against the dollar amid speculation Greece will struggle to win bailout funds, risking the nation’s future in the European currency bloc.
The euro declined versus all its 16 major counterparts after Greek Prime Minister Antonis Samaras pledged yesterday that proposed wage and pension cuts will be the last as he struggled to win political support for measure to assure the country’s lifeline.
Greek society won’t tolerate any more austerity measures, Samaras told lawmakers of his New Democracy Party in Athens, as coalition leader debate the terms of the latest package. The first parliamentary vote on measures needed to obtain additional aid is scheduled to take place as early as Nov. 7.
The Dollar Index rose for a third day before tomorrow’s U.S. presidential election. The U.S. currency rose against 13 of its 16 major peers on speculation the winner of this week’s presidential election will press ahead with plans to curtail the nation’s deficit.
Employment and the economy are central themes before tomorrow’s vote, with President Barack Obama and Republican nominee Mitt Romney each trying to convince voters he can best energize the economic expansion.
The pound declined for a second day versus the dollar after an industry report showed U.K. services growth slowed more in October than economists forecast.
Sterling fell before the Bank of England holds a two-day meeting this week to decide whether to increase monetary stimulus through so-called quantitative easing.
EUR / USD: during the European session, the pair set a low at $ 1.2766
GBP / USD: during the European session, the pair showed a significant decline, setting ow of $ 1.5960
USD / JPY: during the European session the pair fell to Y80.19
At 13:30 GMT Canada will release the change in volume of building permits issued in September. At 15:00 GMT the U.S. will ISM composite index for the non-production sphere for October. At 21:45 GMT New Zealand will publish a change in the level of pay in the private sector, excluding overtime for the 3rd quarter.
EUR/USD
Offers $1.2980/85, $1.2940/50, $1.2890/900, $1.2850, $1.2805/10
Bids $1.2760-40
GBP/USD
Offers $1.6100/10, $1.6075/80, $1.6040/60, $1.6020, $1.6000, $1.5985
Bids $1.5950
AUD/USD
Offers $1.0450, $1.0400, $1.0380
Bids $1.0320, $1.0305/00, $1.0250, $1.0205/00
EUR/JPY
Offers Y104.00, Y103.50, Y102.95/00
Bids Y102.50, Y102.20, Y102.00
USD/JPY
Offers Y81.20, Y81.00, Y80.80, Y80.60
Bids Y80.00, Y79.80/70
EUR/GBP
Offers stg0.8100, stg0.8080, stg0.8070/75, stg0.8030
Bids stg0.7980, stg0.7945/40
Sold E2.39bln vs target E2bn-E4.0bn
- E1.22bln 3-month DTC; avg yield -0.03%, (-0.037%), cover 3.23 (3.49)
- E1.17bln 6-month DTC; avg yield -0.012%, (-0.021%), cover 2.87 (3.66)
EUR/USD $1.2850, $1.2870, $1.2900, $1.2950, $1.3000
USD/JPY Y81.00, Y80.50, Y80.25, Y79.90, Y79.50
GBP/USD $1.6000, $1.6195
EUR/GBP stg0.8000, stg0.8100
EUR/NOK Nok7.40
AUD/USD $1.0350
AUD/JPY Y82.20, Y82.60
USD/CAD $0.9990
On Friday the dollar advanced to a six-month high against the yen after the last jobs report before next week’s election showed hiring in the U.S. increased more than forecast. A net 171,000 workers were added to payrolls in October after a 148,000 gain the prior month that was more than first estimated, Labor Department figures showed in Washington. The median forecast of economists called for an advance of 125,000. The jobless rate rose to 7.9 percent from 7.8 percent as more people entered the labor force.
The U.S. currency strengthened to a three-week high against the euro amid confirmation that the euro-zone’s manufacturing sector contracted in October.
Japan’s currency headed for a third weekly decline against the dollar as economic weakness and disappointing corporate earnings spurred speculation the Bank of Japan will expand monetary stimulus.
The pound was down for the day against the dollar, and could not make a difference, even after a report showed that the index of business activity in the construction sector has exceeded the level of 50 in October and was 50.9, while analysts expected a drop in the index to the level of 49, 1 from 49.5 in September. Once the data released by the U.S., the pound continued to fall, but at a faster pace.
00:30 Australia Retail sales (MoM) September +0.2% +0.4% +0.5%
00:30 Australia Retail Sales Y/Y September +3.2% +3.7%
00:30 Australia Trade Balance September -2.03 -1.60 -1.45
00:30 Australia ANZ Job Advertisements (MoM) October -2.8% -4.6%
01:45 China HSBC Services PMI October 54.3 53.5
The 17-nation euro was lower against most of its 16 major counterparts with Greek Prime Minister Antonis Samaras facing obstacles from coalition partners as lawmakers are expected to vote this week on measures required to receive aid. Samaras pledged on Nov. 4 that the raft of wage and pension cuts in the latest austerity package will be the last and that Greek society won’t tolerate any more, according to comments made to lawmakers of his New Democracy party. The first parliamentary vote in Athens may come as early as Nov. 7. Negotiations between Greece and its troika of international creditors have sought to keep the country inside the European monetary union. In Athens, coalition leaders are squabbling over the terms of the latest package, while in other European capitals politicians are debating how to ease the country’s debt burden.
The yen traded near its weakest level since April against the greenback as futures traders increased their bets the yen will decline versus the dollar to a six-month high.
Australia’s dollar strengthened after government data signaled improvement in the nation’s economy ahead of the Reserve Bank’s policy meeting tomorrow. The nation’s retail sales climbed 0.5 percent in September from the previous month, the statistics bureau said in a report today. The median economist estimate in a Bloomberg survey was for a 0.4 percent gain. The trade shortfall was A$1.46 billion ($1.51 billion) in the same period from a revised A$1.88 billion in August, according to a separate release. Forecasters projected a A$1.55 billion deficit.
In the U.S., employment and the economy are central themes before tomorrow’s election, with President Barack Obama and Republican nominee Mitt Romney each trying to convince voters he can best energize the economic expansion.
The winner will also have to contend with the so-called fiscal cliff of more than $600 billion of federal spending cuts and tax increases that will take effect at the start of next year unless Congress acts.
EUR / USD: during the Asian session the pair fell to $ 1.2815.
GBP / USD: during the Asian session the pair was trading around the $ 1.6020 level.
USD / JPY: during the Asian session, the pair traded in the range of Y80.40-55.
UK data is expected at 0930GMT and sees the release of the UK services PMI numbers. The Americas calendar starts at 1330GMT, with the release of Canada September Building permits. At 1500GMT, the October ISM non-manufacturing index and the October Employment Trends Index are released.
00:30 Australia Retail sales (MoM) September +0.2% +0.4% +0.5%
00:30 Australia Retail Sales Y/Y September +3.2%
00:30 Australia Trade Balance September -2.03 -1.60 -1.45
00:30 Australia ANZ Job Advertisements (MoM) October -2.8% -4.6%
01:45 China HSBC Services PMI October 54.3 53.5
09:30 Eurozone Sentix Investor Confidence November -22.2 -20.7
09:30 United Kingdom Purchasing Manager Index Services October 52.2 52.0
13:30 Canada Building Permits (MoM) September +7.9% -2.6%
14:00 G20 G20 Meetings -
15:00 U.S. ISM Non-Manufacturing October 55.1 54.6
21:45 New Zealand Private Sector Labor Costs (ex. overtime), q/q Quarter III +0.5% +0.5%
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