Analytics, News, and Forecasts for CFD Markets: currency news — 07-01-2013.

EUR/USD $1.3000, $1.3050, $1.3150, $1.3200

USD/JPY Y87.50

Data

08:00United Kingdom Halifax house price indexDecember 0.0%+0.1%+1.3%

08:00United Kingdom Halifax house price index 3m Y/YDecember -1.2%-0.3%

08:00Switzerland Foreign Currency ReservesDecember 427.4 423.0427.2

09:30Eurozone Sentix Investor ConfidenceJanuary -16.8-13.7-7.0

10:00Eurozone Producer Price Index, MoMNovember +0.1%-0.1%-0.2%

10:00Eurozone Producer Price Index (YoY)November +2.6%+2.4%+2.1%

The euro weakened against the dollar in relation to, approaching with up to three-week low, driven by speculation that the European Central Bank at its meeting on Thursday could signal a possible downgrade of the rates in the near future.

According to the poll, 55 economists suggest that the ECB President Mario Draghi will hold the key refinancing rate at a record low of 0.75%, while the five experts expect it to fall 0.5%.

Meanwhile, the corporation Citigroup Inc expects the ECB to cut rates at its meeting next month.

The European single currency fell against 13 of its 16 major counterparts after a report showed that producer price inflation slowed in November, more than economists forecast. Statistical Office of the European Union in Luxembourg stated that producer prices in the euro zone rose an annualized 2.1%, after increasing 2.6% in October, while economists expected an increase of 2.4%.

The yen rose, departing from the weakest level since July 2010 against the dollar even though the fact that the media reported that the government announced an additional incentive measures. According to the newspaper Yomiuri, the government this month announced the fiscal stimulus for a total of 12 trillion yen. Also, the newspaper added that the supplementary budget for the current fiscal year to March will include the cost of public works in the amount of 5 trillion yen to 6 trillion yen. However, whether the information is fact, no one knows, because the newspaper did not say who her source.

EUR / USD: during the European session the pair fell, setting all-time low of $ 1.3015

GBP / USD: during the European session, the pair rose to $ 1.6072

USD / JPY: during the European session the pair fell to a new intraday low of Y87.60

At 15:00 GMT, Canada will provide data on the index of the Ivey PMI for December. Finish the day at 22:30 GMT Australia publication index of activity in the construction sector from AiG for December.

EUR/USD

Offers $1.3125/30, $1.3105/15, $1.3088, $1.3065

Bids $1.3025, $1.3010/00, $1.2998, $1.2995-80, $1.2950

GBP/USD

Offers $1.6195/205, $1.6170/80, $1.6150/55, $1.6130/35, $1.6100/05

Bids $1.6010/00, $1.5980, $1.5965/60, $1.5920

AUD/USD

Offers $1.0600, $1.0550, $1.0525/30

Bids $1.0440, $1.0425/20, $1.0410/05, $1.0380

EUR/JPY

Offers Y116.50, Y116.00, Y115.20, Y114.80

Bids Y114.00, Y113.50, Y113.20, Y113.00, Y112.50

USD/JPY

Offers Y89.00, Y88.50, Y88.35/40, Y88.15/20

Bids Y87.50/40, Y87.20/15, Y87.00, Y86.55/50

EUR/GBP

Offers stg0.8220/25, stg0.8200, stg0.8170, stg0.8150/55

Bids stg0.8115/10, stg0.8095/90, stg0.8080, stg0.8065/60, stg0.8045

EUR/USD $1.3000, $1.3050, $1.3150, $1.3200

USD/JPY Y87.50

The dollar retreated from a three-week high against the euro after data showed that the U.S. unemployment rate in December was 7.8%, while it was expected that the rate will remain unchanged. Meanwhile, an unpleasant surprise was an upward revision (to 7.8% from 7.7%) than last month. Note that this situation increases the likelihood that the Federal Reserve will further stimulus measures in the near future.

The euro rose after reports released the last Fed meeting showed that the central bank could finish his third round of monthly bond purchases, known as quantitative easing later this year. The dollar rose to its highest level against the yen since July 2010, and therefore, the Japanese currency headed for its most prolonged weekly decline for the last 24 years.

The dollar index, which is used to track the value of the U.S. currency against the currencies of the partner, increased by 0.3% to 80.617.

The Canadian dollar has appreciated by 0.2% against the dollar after government data showed that the unemployment rate unexpectedly fell in December (up 7.1%), reaching a four-year low at the same time. At the same time, the number of jobs increased by 39,800.

The yen traded near a 2 1/2 year low as speculation grew that Japan’s Prime Minister Shinzo Abe will ramp up efforts to spur growth, paring demand for refuge assets. The Japanese government will announce around 12 trillion yen ($136 billion) in fiscal stimulus this month to boost the nation’s shrinking economy, the Yomiuri newspaper said today. The extra budget for this fiscal year through March will include 5-6 trillion yen of public works spending, the report said, without saying where it obtained its information.

The Dollar Index gained for a fourth day before Richmond Federal Reserve President Jeffrey Lacker speaks tomorrow in Columbia, South Carolina. Minutes released last week of the U.S. central bank’s latest meeting showed policy makers may curtail monetary stimulus this year. Lacker said on Jan. 4 further monetary stimulus is unlikely to boost growth and will “test the limits” of the U.S. central bank’s credibility. “At some point, we will need to withdraw stimulus by raising interest rates and reducing the size of our balance sheet,” he said in prepared remarks to the Maryland Bankers Association in Baltimore.

Demand for the euro was limited before data which may show unemployment in the 17-nation currency block increased. Jobless rate probably rose to 11.8 percent in November from 11.7 percent in the previous month, according to the median estimate of economists surveyed by Bloomberg News before the data tomorrow.

EUR/USD: during the Asian session the pair fell to $1.3025.

GBP/USD: during the Asian session the pair fell below $1.6020.

USD/JPY: during the Asian session the pair fell below Y88.00.

It is a quiet start to the start to the week, with limited data expected from the UK and the eurozone. There is a slightly fuller US schedule, but the data is largely second tier. However, the pace will pick up as the week progresses and more people get back in the swing following the year-end holidays, building towards the ECB and BOE policy meets later in the week. On the continent, at 0930GMT, the Sentix confidence data is released. Then, at 1000GMT, the EMU November PPI data will be released, with analysts looking for 0.2% m/m and +2.4% y/y. The calendar starts in the UK with the release of the UK Halifax December House Price Index at 0800GMT. 

08:00United Kingdom Halifax house price indexDecember 0.0%+0.1%

08:00United Kingdom Halifax house price index 3m Y/YDecember -1.2%

08:00Switzerland Foreign Currency ReservesDecember 424.8423.0

09:30Eurozone Sentix Investor ConfidenceJanuary -16.8-13.7

10:00Eurozone Producer Price Index, MoMNovember +0.1%-0.1%

10:00Eurozone Producer Price Index (YoY)November +2.6%+2.4%

15:00Canada Ivey Purchasing Managers IndexDecember 47.551.3