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Analytics, News, and Forecasts for CFD Markets: currency news — 10-10-2012.
Should consider tightening policy when inflation strikes 2.25%
Advocate a policy change as long as the unemployment rate drops below 5.5%
In arguing for an aggressive stimulus plan
Support the introduction of target levels
The plan assumes a soft Fed policy for four years or more
Price stability corresponds to the rate of inflation in the range of 1.75% -2.25% in the medium term
It is unlikely that the Fed will face significant pricing pressure for some time
- Now the Fed is watching the collision targets for employment and inflation
The euro rose to one-week low against the U.S. dollar after failing to fall below a key technical level.
The single currency fell to near its 200-day moving average before cutting losses. Earlier, the euro was down, as European finance ministers this week failed to reassure investors as to the eurozone sovereign debt crisis is close to resolution.
As European finance ministers meeting in Luxembourg this week welcomed the determination of Greece to trim its deficit to your budget.
The Canadian dollar fell against most of its most traded currencies against the fact that the concerns about slowing growth in China will have a negative impact on demand for commodities such as oil and gold.
Also, the Canadian dollar fell after it was reported that car sales in China unexpectedly fell, it was the first time in eight months. Also today, the company Alcoa Inc (AA) said that the slowdown in growth in the country will lead to a global reduction in demand for aluminum. Note that raw materials account for about half of Canada's export revenue, and China, which is the world's largest consumer of metals and energy.
Pound broke his three-day losing streak against the dollar, up from its lowest level in four weeks after the National Institute of Economic and Social Research said the UK economy expanded in the third quarter by 0.8%, registering with the highest rates growth over the past five years. Bond yields fell after the governor of the Bank of England Governor Mervyn King said yesterday that inflation targeting should remain the focus of monetary policy.
The Australian dollar rose on the third day after the country sold its most long-term debt over the past thirty years, while increasing demand for assets of the country.
Also, the currency rose against the fact that the price of iron ore, which is the largest export product in Australia, rose to two-month high. Demand for currency was reduced in anticipation of tomorrow's report on the unemployment rate, which is expected to have grown to a three-month high.
Drought continues to affect some counties
Conditions in agriculture are inconsistent
Credit conditions have not changed
Total demand for loans remained unchanged or increased
Conditions in the industry are mixed, there is some improvement
Conditions in the commercial real estate contradictory
Conditions in the housing market showing widespread improvements
Active tourism is stable in most districts
Sales of cars, in general, stable
- Consumer spending remained unchanged or increased slightly
All banks should be subject to surveillance
It is important to signal that the process of bank union goes on
I am convinced that there is full agreement on the bank union
The concept of bank union should be ready this year
It is desirable that the European Council has shown commitment to the banking union
I see no reason for the delay with the banking union
Terms of creation of bank union can be met
EU must implement an agreement on fiscal and bank union
EU should follow the conventions made in June
I want to have been made clear steps in the banking union until the end of the year
EUR/USD $1.2800, $1.2880, $1.2900, $1.2940, $1.3000
USD/JPY Y78.25, Y78.55, Y78.60, Y79.00
EUR/JPY Y100.00, Y99.95
GBP/USD $1.6000, $1.6050
USD/CHF Chf0.9375, Chf0.9360, Chf0.9350
AUD/USD $1.0115, $1.0150, $1.0200, $1.0250
Data
04:00 Switzerland SNB Chairman Jordan Speaks -
06:45 France Industrial Production, m/m August +0.2% +0.1% +1.5%
06:45 France Industrial Production, y/y August -3.1% -4.2% -0.9%
The euro rose against the dollar and the yen on expectations of the outcome of the meeting and Hollande Raho and publication of the Beige Book.
Slightly disappointed investors was the fact that the Ministry of Finance at a meeting of Europe rescue program was not discussed in Spain due to the fact that the country sees its position in the financial markets as a rather favorable. According to the IMF report, Spain has become the country with the greatest economy in the euro zone program in 2012-2013, and at the same time one of the states, which marked the largest increase in total debt of weaker growth.
Industrial output in France, Italy and Greece rose unexpectedly in August (1.5% m / m in France, 1.7% m / m to 5.2% y / y vs. -7.2% previously in Italy and by 2% y / y vs. 4% in Greece). The trade deficit widened in June, Portugal from € -1.997 bln. up to € -2.183 billion German wholesale price index rose by 1.3% m / m and 4.2% y / y in September, exceeding forecasts.
The British pound rose against the dollar after the annual conference of the Conservative Party Prime Minister David Cameron said that Britain's economic recovery will take longer than expected, and the reduction of the deficit will be a key aspect to stimulate growth. He also noted that the reduction in interest rates is the main tool for improving the picture on the labor market.
EUR / USD: pair rose to a new intraday high of $ 1.2899
GBP / USD: pair rose to a new intraday high of $ 1.6027
USD / JPY: pair rose to a new intraday high of Y78.32
At 17:00 GMT the U.S. puts 10-year bonds. At 18:00 GMT will publish economic survey of the Fed's regions "Beige Book." At 20:30 GMT the U.S. will publish the change in the volume of crude oil, according to API. At 23:50 GMT Japan will change in orders for machinery and equipment in August and will be published minutes of the meeting of the Bank of Japan on monetary policy.
Germany alloted E1.17bln of 0.1% Apr 2023 Bundei issue Wednesday at an average yield of -0.38% (-0.27%) and a bid-to-cover ratio of 1.5 times (1.9).
EUR/USD
Offers $1.2990/000, $1.2960/65, $1.2930, $1.2885/900
Bids $1.2850, $1.2820-00, $1.2760/50
GBP/USD
Offers $1.6140/60, $1.6100/05, $1.6060, $1.6040/50, $1.6020
Bids $1.5950/40, $1.5925/20
AUD/USD
Offers $1.0320, $1.0300, $1.0290, $1.0250
Bids $1.0200, $1.0180, $1.0170, $1.0150, $1.0130
EUR/GBP
Offers stg0.8100/15, stg0.8090, stg0.8080
Bids stg0.8030/20, stg0.8005-995, stg0.7980/75, stg0.7945/40
EUR/JPY
Offers Y101.50, Y101.20, Y101.00
Bids Y100.20, Y100.00
USD/JPY
Offers Y79.00, Y78.70, Y78.50
Bids Y78.10, Y78.00, Y77.90, Y77.50
Germany alloted E3.112bln of 0.50% Oct 2017
Bobl issue Wednesday at average yield 0.53% (0.61%), cover 2.2 (1.4).
Italy sold E11.0bln in 3-/12-mth BOTs
- E3.0bln 3-month BOT, avg yield 0.765% (0.700%), cover 2.79 (2.25)
- E8.0bln 12-month BOT, avg yield 1.941% (1.692%), cover 1.77 (1.65)
EUR/USD $1.2880, $1.2900, $1.3000, $1.3150
USD/JPY Y78.25, Y78.55, Y78.60, Y79.00
EUR/JPY Y100.00, Y99.95
GBP/USD $1.6000, $1.6050
USD/CHF Chf0.9375, Chf0.9350
AUD/USD $1.0115, $1.0150, $1.0250
Yesterday the euro fell against most major currencies, as European Central Bank President Mario Draghi said that the common currency bloc, there are risks associated with financial instability.
The yen rose against the euro for a second day after the International Monetary Fund said that the economy of the region will fall by more than predicted earlier this year.
Sterling fell against the dollar after data showed that the level of production in the UK fell more than expected.
European currency continued to fall after German Chancellor Angela Merkel met in Athens with Greek Prime Minister Antonis Samaras.
The Australian dollar rose to almost three-month low, which it reached on speculation that China, which is the largest trading partner of the country to resort to further stimulate the economy.
The Swiss currency weakened against most major currencies after the State Street Corp (STT) and Bank of New York Mellon Corp (BK) said they would charge to investors who hold their assets in Danish kroner and Swiss francs.
State Street will apply negative interest rates at 0.75% per annum with effect from 1 November for the crown, and a separate fee for the Franks. This means that the fund managers, insurance companies and pension funds have to pay the bank for the deposit of their funds in the accounts.
Asian stocks outside Japan advanced, led by Chinese banks and raw-material producers after crude oil and copper futures rebounded. Japanese stocks fell as markets reopened after a public holiday. The world economy will expand 3.3 percent this year, the slowest pace since the 2009 recession, and 3.6 percent next year, the International Monetary Fund said today. That compares with July predictions of 3.5 percent in 2012 and 3.9 percent in 2013. The Washington-based lender now sees “alarmingly high” risks of a steeper slowdown.
Nikkei 225 8,769.59 -93.71 -1.06%
S&P/ASX 200 4,505.3 +23.44 +0.52%
Shanghai Composite 2,112.73 +38.31 +1.85%
BHP Billiton Ltd., the world’s No. 1 mining company and Australia’s biggest oil producer, gained 0.7 percent in Sydney.
Industrial & Commercial Bank of China Ltd. rose 2.2 percent in Hong Kong, pacing gains among Chinese lenders.
HTC Corp. tumbled 7 percent in Taipei after Asia’s No. 2 smartphone maker posted a record decline in quarterly profit.
European stocks declined for a second day as the region’s finance ministers gathered in Luxembourg to discuss the sovereign-debt crisis.
Bankia SA (BKIA) led the decline, falling to a two-month low. Alcatel-Lucent (ALU) SA dropped to the lowest in at least 23 years as Credit Suisse Group AG said weakness should continue into the third quarter. Vedanta Resources Plc led mining companies higher, limiting losses in Europe.
The Stoxx Europe 600 Index slipped 0.5 percent to 270.20 in London.
National benchmark indexes fell in all but two of the 18 western European (SXXP) markets.
FTSE 100 5,803.2 -38.54 -0.66% CAC 40 3,382.25 -24.28 -0.71% DAX 7,231.16 -60.05 -0.82%
Finance ministers from all the 27 countries in the European Union convened in Luxembourg today in the lead up to a summit of the region’s leaders in Brussels on Oct. 18-19.
Ministers from the 17-nation euro area yesterday declared the 500 billion-euro ($649 billion) European Stability Mechanism operational. They also said Spain, the permanent rescue fund’s biggest potential near-term customer, isn’t on the verge of tapping it.
German Chancellor Angela Merkel arrived in Greece today for the first time since the debt crisis began in 2009 after the finance ministers yesterday hailed the country’s determination to cut its budget and reshape its economy, raising the chances that aid will keep flowing to Greece.
Dow Jones reported that Greece’s creditors are yet to reach an agreement on how best to tackle the country’s debt crisis. The newswire cited people with direct knowledge of the matter.
In Washington, the International Monetary Fund cut its global growth forecasts to 3.3 percent this year, the slowest since the 2009 recession, and reduced its estimate for next year to 3.6 percent. That compares with July predictions of 3.5 percent in 2012 and 3.9 percent in 2013.
Bankia dropped 9.8 percent to 98 euro cents, extending its losses since Sept. 21 to 32 percent. The lender’s parent company, BFA, will book losses of more than 4.5 billion euros this year as it cleans up the balance sheet, Expansion reported today. The newspaper said the company will return to profit from 2013, without saying where it got the information.
Banco Popular Espanol SA (POP), Spain’s sixth-largest lender by assets, dropped 2.7 percent to 1.43 euros, for a 10th day of losses.
Alcatel-Lucent dropped 5.1 percent to 73.9 euro cents, the lowest price since at least October 1989, as Credit Suisse reiterated its underperform recommendation for the French phone- equity supplier, the equivalent of a sell rating. Analysts said “weak trends” in the first half may continue into the third quarter.
Leoni AG (LEO) and Aggreko Plc (AGK) declined 4.3 percent to 28.87 euros and 3.4 percent to 2,240 pence, respectively, after HSBC Holdings Plc downgraded both companies to neutral from overweight, a recommendation similar to buy. Capita Plc slid 3.7 percent to 740 pence as its shares were cut at Panmure Gordon & Co. and Seymour Pierce Ltd. to sell and hold, respectively.
Marine Harvest ASA (MHG) slid 3.1 percent to 4.75 kroner after the world’s biggest salmon farmer said its third-quarter profit will miss analyst forecasts because of “challenging market conditions” in Chile and Canada.
Vedanta Resources (VED) paced advancing shares on the Stoxx 600, climbing 2.1 percent to 1,090 pence. The company reported a 22 percent increase in oil and gas output for the second quarter to a record after ramping up production at its Rajasthan block in India.
Rio Tinto Group gained 1.5 percent to 3,030 pence. The world’s third-largest mining company today said it will deepen cost cutting efforts after it lowered its estimates for China’s economic growth to below 8 percent.
STMicroelectronics NV (STM) climbed 2.9 percent to 4.44 euros after Europe’s largest semiconductor company and Ericsson AB said they’re working with an adviser on options for their unprofitable chipmaking venture ST-Ericsson.
Hays Plc (HAS) jumped 5.7 percent to 79.5 pence, the biggest advance on the Stoxx 600. The shares rebounded from yesterday’s 4.4 percent selloff after the U.K. recruiter reported first- quarter net fees that fell less than estimated.
Major U.S. stock indices ended the session in a significant reduction in the vicinity of the minimum values on concerns about global economic growth.
The pressure on the index has increased worries about further deterioration in the global economy. The reason for these concerns is the decline in the IMF forecasts global growth in 2012-2013, as stated in the report, published on the eve. According to the forecasts presented in the report, this year the world economy will grow by 3.3%, and by the end of 2013 - by 3.6%. This is lower than the IMF forecast in the summer of this year (3.5 and 3.9%, respectively).
Market participants' attention focused on the quarterly report of aluminum producer Alcoa (AA), which will be presented today after the market close. Although the report can not be taken as Alcoa baromentr reports coming season, however, many analysts see it as an indicator of the situation in the industrial sector of the global economy.
As a whole, the expectations for the season reports are very pessimistic. Some analysts expect the last reporting quarter will be the worst for U.S. companies of the past 12 quarters.
If the financial performance of companies will come out better than expected, it will be a significant positive for the market and will be a catalyst for growth.
As a part of most of the components of the index DOW reduced in price. Maximum growth stocks show McDonald's (MCD, +0.88%). More than the others fell in the share price Intel (INTC, -2.75%), which rating was downgraded today by analysts Bernstein.
All of the major economic sectors are in the red zone. The maximum loss is the health sector (-1.4%).
At the close:
Dow 13,473.91 -109.74 -0.81%
Nasdaq 3,065.02 -47.33 -1.52%
S & P 500 1,441.49 -14.39 -0.99%
00:00 Japan BOJ Governor Shirakawa Speaks
The euro fell for a third day amid speculation data will add to evidence that Europe’s failure to resolve its debt crisis is weighing on the region’s economy. The 17-nation euro slid to its lowest level in one week against the yen as economists said reports today may show French and Italian industrial production decreased in August. French industrial production probably declined 0.3 percent in August from July, when it gained 0.2 percent, according to the median estimate of economists in a Bloomberg News survey before the statistics office releases the report today. Separate data may show Italian output fell 0.5 percent during the same month, another poll showed. France is the euro area’s second-largest economy and Italy is the third-biggest.
Japan’s currency gained against most major peers as declines in stocks worldwide boosted demand for safer assets.
Losses in the euro were limited before Spain’s Prime Minister Mariano Rajoy meets French President Francois Hollande today in Paris as investors weigh whether the Iberian nation will ask for a bailout. Spain’s Rajoy last week pushed back expectations of a bailout, telling reporters no request was imminent. His deputy, Soraya Saenz de Santamaria, said the government needs to ensure a request for help from the European Stability Mechanism would be granted before it can call for aid. A bid to the ESM is needed to trigger support from the European Central Bank.
EUR/USD: during the Asian session the pair fell to $1.2835, updating week’s low.
GBP/USD: during the Asian session the pair fell to the previous day's low.
USD/JPY: during the Asian session, the pair traded in the range of Y78.15-30.
European data starts at 0645GMT, when French August industrial production data is release, followed at 0800 GMT with the release of the Italian industrial output numbers. The US calendar starts at 1100GMT, when MBA Mortgage Application Index for the Oct 5th week are released. At 1400GMT, the US August Wholesale Inventories data are released, along with the July JOLTS Labor Turnover Survey. 1800GMT sees perhaps the main data release for the day, when the Federal Reserve's Beige Book hits screens. Two Fed speakers are up later in the session. At 1845GMT, Minneapolis Federal Reserve Bank Pres. Naryana Kocherlakota speaks to business and community leaders in Montana, and after will answer questions from the audience. At 2045GMT, Dallas Federal Reserve Bank Pres.
(pare/closed(00:00 GMT +02:00)/change, %)
EUR/USD $1,2883 -0,64%
GBP/USD $1,6002 -0,11%
USD/CHF Chf0,9403 +0,76%
USD/JPY Y78,25 -0,06%
EUR/JPY Y100,81 -0,71%
GBP/JPY Y125,22 -0,18%
AUD/USD $1,0207 +0,16%
NZD/USD $0,8173 -0,24%
USD/CAD C$0,9779 +0,08%00:00 Japan BOJ Governor Shirakawa Speaks -
04:00 Switzerland SNB Chairman Jordan Speaks -
06:45 France Industrial Production, m/m August +0.2% +0.1%
06:45 France Industrial Production, m/m August -3.1% -4.2%
14:00 U.S. Wholesale Inventories August +0.7% +0.4%
18:00 U.S. Fed's Beige Book October
18:45 U.S. FOMC Member Narayana Kocherlakota -
23:50 Japan Core Machinery Orders, y/y August +1.7% -4.6%
23:50 Japan Monetary Policy Meeting Minutes -
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