Analytics, News, and Forecasts for CFD Markets: currency news — 11-05-2012.

ATTENTION: The content in the news and analytics feed is updated automatically, and reloading the page may slow down the process of new content appearing. We recommend that you keep your news feed open at all times to receive materials quickly.

Filter by currency

11.05.2012

17:37

American focus: euro fluctuated

The euro weakened for a second week, touching a three-month low versus the dollar, as concern builds that Greece may be forced to withdraw from the currency union with the nation’s politicians unable to form a government. The 17-nation currency rose earlier after the leader of Greece’s New Democracy Party said four parties have vowed to remain in the euro if they form part of the next administration. Gross domestic product in the euro area will drop 0.3 percent this year, the European Commission said, reiterating a February forecast. Greece will have the deepest contraction, with GDP shrinking 4.7 percent, while the economies of Spain and Italy are seen falling 1.8 percent and 1.4 percent, respectively.

The yen rose against most of their 16 major peers after JPMorgan Chase & Co. said it made a surprise $2 billion trading loss, boosting demand for safer assets. The yen erased earlier gains against some of its major counterparts after a gauge of U.S. consumer confidence topped economists’ estimates, renewing appetite for some higher- yielding assets.

The pound fell against the dollar, extending a second weekly decline, after an industry report showed U.K. consumer confidence dropped last month as the economy slipped into a double-dip recession. Sterling weakened versus most of its major peers as signs economic outlook is worsening raised the prospect that Governor Mervyn King will hint at resuming bond purchases, or quantitative easing, when the central bank releases its Inflation Report next week.

14:52

EUR/USD Punching out a fresh high for the day as backdrop of positive US stocks allows the earlier negative risk sentiment to reverse, this pair now squeezing any remaining shorts set in anticipation that euro would dip under $1.2900.

Flows muted, offers at $1.2960/80 ensuring no runaway gains just yet. Last $1.2952.

13:55

U.S.: Reuters/Michigan Consumer Sentiment Index, May 77.8 (forecast 76.5)

13:07

European session: The euro rose from a three-month low against the dollar

Data:

06:00 Germany CPI, m/m (finally) April +0.4% +0.1% +0.1%

06:00 Germany CPI, y/y (finally) April +2.3% +2.0% +2.2%

08:30 United Kingdom Producer Price Index - Input (MoM) April +1.9% -0.8% -1.5%

08:30 United Kingdom Producer Price Index - Input (YoY) April +5.8% +2.1% +1.2%

08:30 United Kingdom Producer Price Index - Output (MoM) April +0.6% +0.4% +0.7%

08:30 United Kingdom Producer Price Index - Output (YoY) April +3.6% +2.9% +3.3%

The euro rose from a three-month low against the dollar on optimism Greek political leaders will reach an agreement to form a new government that keeps the country in the single currency union. The 17-nation currency erased losses against the yen as Antonis Samaras, leader of Greece’s New Democracy Party, said four political parties have accepted term of no exit from the euro region.

Gross domestic product in the euro area will drop 0.3 percent this year, the European Commission said, reiterating a February forecast. Greece will have the deepest contraction, with GDP shrinking 4.7 percent, while the economies of Spain and Italy are seen contracting 1.8 percent and 1.4 percent.

The dollar and yen rose against most of their major counterparts after JPMorgan Chase & Co. said it made a surprise $2 billion trading loss, boosting demand for safer assets.

EUR/USD: in the European session the pair gain, updated a day time high at $1,2955.
GBP/USD: the pair fell to yesterday's low at $1,6085.
USD/JPY: the pair rose, updated day time high at Y80,00.

US data starts at 1230GMT with producer prices, which are expected to hold steady again in April after the flat reading in March. Energy prices are expected to decline further after falling 1.0% in March. The core PPI is forecast to rise 0.2% in the month after the 0.3% increase in March. At 1315GMT, Dallas Fed President Richard Fisher speaks to the Texas Bankers Association 128th Annual Convention. US data continues at 1355GMT, when the Michigan Sentiment Index is expected to hold steady at a reading of 76.4 in early-May after rising slightly in April.