Analytics, News, and Forecasts for CFD Markets: currency news — 13-12-2012.

The yen fell to its lowest level in nearly nine months against the dollar on speculation that Japan's opposition leader Shinzo Abe, who is a supporter of unlimited easing of monetary policy, will win the elections to be held this weekend. The yen also fell in anticipation of the report of the Bank of Japan Tankan, which is expected to economists shows growing pessimism among manufacturers.

The dollar rose for the first time in four days against the euro after the Federal Reserve Chairman Ben Bernanke said that the recent stimulus measures of the central bank will not offset the effects of a "financial cliff", which immediately caused increased demand for the dollar.

Franc rose against the euro after the Swiss National Bank left its lower limit for the pair EUR / CHF at 1.20.

The pound fell for the first time in four days against the dollar as a report showed that the majority of UK manufacturers is declining orders. Sterling fell against 12 of its 16 major counterparts on speculation the central bank will resume asset purchases under its quantitative easing program. Note also that the data released today showed that the balance of industrial orders Confederation of British Industry in December rose to -12 from -21 in November.

But in spite of this strengthening of the dollar and the pound, in the last couple of hours are observed to significantly decrease, which was caused by the Eurogroup statement on the allocation of Greek bailout package totaling 49.1 billion euros.

EUR / USD: during the European session, the pair dropped significantly, reaching $ 1.3040, but later recovered to $ 1.3080

GBP / USD: during the European session, fell to $ 1.6110, and then rose to $ 1.6140

USD / JPY: during the European session the pair fell to Y83.25, but now risen to the level of Y83.53

At 13:30 GMT the United States, there are data on retail sales and retail sales excluding auto sales for November. Also during this time will be submitted to the producer price index, producer price index for the base, and become aware of the number of initial claims for unemployment benefits. In addition, Canada will report on the use of production capacity, and publish an index of prices for new homes in October. At 15:00 GMT the U.S. will know about the level of business inventories for October. At 23:50 GMT, Japan will release the index of activity in the non-manufacturing sector Research and Statistics Department of the Bank of Japan, and the index of activity in the large producers and the activity index for large companies from all industries on IV-th quarter.

GBP/USD

Offers $1.6215/20, $1.6200, $1.6175/85, $1.6150

Bids $1.6111, $1.6100/090, $1.6070/60, $1.6045/40, $1.6025/20, $1.6000

AUD/USD

Offers $1.0670, $1.0650, $1.0620/25, $1.0600

Bids $1.0540/35, $1.0520, $1.0500/490, $1.0465/60

EUR/JPY

Offers Y111.20/30, Y111.00, Y110.50/65, Y110.00/20, Y109.60

Bids Y108.65/50, Y108.00, Y107.50/40

USD/JPY

Offers Y84.50/60, Y84.20/30, Y83.85/4.00, Y83.70/75

Bids Y83.00/2.80, Y82.60-40

EUR/GBP

Offers stg0.8280, stg0.8220, stg0.8195/200, stg0.8110/20

Bids stg0.8080, stg0.8065/60, stg0.8045, stg0.8035/30, stg0.8020, stg0.8005/00

The yen fell to the weakest level in almost nine months against the dollar before the Bank of Japan’s Tankan survey tomorrow, which economists say will show big manufacturers in the nation grew more pessimistic. The BOJ’s quarterly Tankan survey tomorrow will probably show that sentiment among large manufacturers slid to minus 10 from minus 3 in the third quarter, according to the median estimate of economists in a Bloomberg News survey. That would be the lowest since the first quarter of 2010.

The Japanese currency touched an eight-month low versus the euro as polls suggest Shinzo Abe’s opposition party will win power in Japan’s Dec. 16 elections, adding to pressure on the central bank to take more easing steps as early as next week. Abe, whose Liberal Democratic Party leads in opinion polls before the general election this weekend, has called for a doubling of the central bank’s inflation goal to 2 percent and unlimited easing to revive growth. The BOJ is due to a hold a monetary policy meeting on Dec. 19-20.

The euro maintained three days of gains after the Federal Reserve said it will expand its asset purchases, and before European Union leaders begin a two-day summit today. The Fed said it will buy $45 billion a month of Treasury securities starting in January to spur the economy. The U.S. central bank plans to “maintain accommodation as long as needed to promote a stronger economic recovery in the context of price stability,” Chairman Ben S. Bernanke said yesterday at a press conference after a meeting of the Federal Open Market Committee. Rates will stay low “at least as long” as unemployment remains above 6.5 percent and if inflation is projected to be no more than 2.5 percent, the FOMC said in a statement. The thresholds replace the Fed’s earlier view that rates would stay near zero at least through the middle of 2015.

EUR / USD: during the Asian session, the pair traded in the range of $ 1.3055-90.

GBP / USD: during the Asian session, the pair traded in the range of $ 1.6125-45.

USD / JPY: during the Asian session, the pair rose to Y83.65.

The UK calendar starts at 0930GMT, with the release of the SMMT car production figures for November. At 1000GMT, UK Treasury Officials are scheduled to appear before the Treasury Select Committee to discuss the Autumn Statement. At 1100GMT, the UK CBI Industrial trends survey for December will cross the wires.