Analytics, News, and Forecasts for CFD Markets: currency news — 24-01-2012.

The dollar rose, reaching the highest level this year against the yen, as European policy makers and Greek bondholders failed to reach an agreement on a debt-swap plan for the indebted nation, spurring safety demand.

The yen fell against 12 of 16 major peers tracked by Bloomberg after the Bank of Japan cut its economic growth forecast for next year.

The euro reached the highest level in almost four weeks against the yen earlier after a report showed European services and manufacturing industries unexpectedly expanded in January.

The pound rose against most peers after a report showed the budget deficit shrank in December more than predicted.

European stocks declined from a five-month high as the region’s finance ministers failed to agree on a debt-swap deal for Greece and called for a greater contribution from bondholders.

The region’s finance ministers, meeting in Brussels yesterday, balked at putting up more public money for Greece, calling on bondholders to provide greater debt relief in order to point the way out of the two-year-old debt crisis.

National benchmark indexes fell in 14 of the 18 western European markets. France’s CAC 40 lost 0.5 percent, as did the U.K.’s FTSE 100. Germany’s DAX retreated 0.3 percent.

A gauge of banking shares fell 1 percent. Societe Generale retreated 5.4 percent to 21.57 euros. Credit Agricole lost 4.1 percent to 5 euros. Societe Generale, France’s second-largest lender, and Credit Agricole had their ratings downgraded to A from A+, with a stable outlook, S&P said yesterday.

Petroplus sank 84 percent to 24 centimes, its biggest decline and the lowest price since it issued shares to the public in November 2006. The company said it plans to file for insolvency in Switzerland and other jurisdictions. The Swiss refiner that has been trying to avoid bankruptcy had about $1 billion in credit lines suspended last month, preventing it from supplying its plants with crude.

Siemens declined 1.3 percent to 77.39 euros. The company said achieving its full-year goals has become harder to reach after profitability at its four divisions slipped as the debt crisis weighs on the economy.

U.S. stocks retreated, ending a five-day advance in the Standard & Poor’s 500 Index, amid a stalemate between European finance ministers and Greek bondholders over how to resolve the nation’s debt crisis.

Global stocks slumped as European finance ministers pushed bondholders to provide greater debt relief for Greece, spurring concern the nation may fail to make a March 20 bond payment. The International Monetary Fund cut its forecast for the global economy. President Barack Obama tonight will lay out what he calls a “blueprint” for revitalizing the economy in his third State of the Union address before a joint session of Congress.

Dow 12,666.02 -42.80 -0.34%, Nasdaq 2,783.76 -0.41 -0.01%, S&P 500 1,313.06 -2.94 -0.22%

Bank of America Corp. and Citigroup Inc. dropped at least 0.7 percent, following a tumble in European lenders.

Travelers Cos., the only insurer in the Dow Jones Industrial Average, slid 3.3 percent as profit fell.

Verizon (VZ) Communications Inc., the second-largest U.S. phone company, lost 1.7 percent after reporting a loss.

Peabody Energy Corp., the biggest U.S. coal producer, sank 4.9 percent as earnings missed estimates.

Oil fell as a stalemate between European policy makers and Greek bondholders over debt relief increased concern that the euro-zone debt crisis will spread.

Futures dropped as much as 1.3 percent after European finance ministers balked at putting up more public money for Greece, calling on holders of Greek debt to provide greater relief. The International Monetary Fund cut its forecast for the global economy as Europe slips into a recession and growth cools in China and India.

Crude oil for March delivery fell to $98.25 a barrel on the New York Mercantile Exchange. Prices are up 13 percent from a year earlier.

Brent oil for March settlement dropped 51 cents, or 0.5 percent, to $110.07 a barrel on the London-based ICE Futures Europe exchange.

EUR/USD

Offers $1.3120/30, $1.3100, $1.3075/85

Bids $1.2985/80, $1.2950, $1.2910/00

EUR/USD $1.2900, $1.2950, $1.3000, $1.3050, $1.3100 

USD/JPY Y76.75, Y77.00 

AUD/USD $1.0400, $1.0500, $1.0550, $1.0600

EUR/JPY Y99.00, Y101.00

00:00 China Bank holiday

03:00 Japan BoJ Interest Rate Decision 0.10% 0.10% 0.10%

07:00 Japan BOJ Press Conference

The euro slid from a three- week high on signs European officials and Greek bondholders remained divided on a debt-swap deal to stem the region’s fiscal crisis.

The 17-nation currency weakened versus most major counterparts after Luxembourg Prime Minister Jean-Claude Juncker said talks aimed at relieving Greece’s debt burden were “off track.”

Demand for the dollar was limited before the Federal Reserve begins a two-day policy meeting, after which it will provide forecasts for its benchmark interest rate for the first time.

Australia’s dollar declined from the highest level in 12 weeks on speculation a report tomorrow will show gains in consumer prices are slowing, providing scope for the nation’s central bank to cut interest rates. Australia’s consumer prices climbed 0.2 percent in the fourth quarter from the previous three-month period, according to economists surveyed by Bloomberg News before the Bureau of Statistics report tomorrow. That compares with a 0.6 percent gain in the third quarter.

An index of Australian leading economic indicators fell 0.3 percent to 128 in November, the New York-based Conference Board said in an e-mailed statement today. That follows a revised increase of 0.5 percent the previous month.

EUR/USD: during the Asian session the pair receded from yesterday's high.

GBP/USD: during the Asian session the pair receded from yesterday's high.

USD/JPY: during the Asian session the pair was in range Y76.95-Y77.05.

In Europe, this morning, the flash manufacturing/services PMIs are due, including France at 0658GMT, Germany at 0728GMT and the main

EMU data at 0758GMT. UK data sees the 0930GMT release of Public Sector Finances data. EMU Industrial Orders data is also due at 1000GMT. US data starts at 1245GMT with the weekly ICSC shopping mall sales data, followed by the weekly Redbook at 1355GMT. US data then continues with the Richmond Fed Manufacturing Index and also BLS State Unemployment data at 1500GMT. Also at 1500GMT, the IMF presents updates to the World Economic Outlook, Global Financial Stability Report. Overnight, from 0200GMT on Wednesday, President Obama delivers the annual State of the Union Address to a joint session of Congress, followed by a Republican rebuttal delivered by Indiana Governor Mitch Daniels.

Asian stocks swung between gains and losses as increasing home sales in the U.S. added to signs the world’s biggest economy is recovering, outweighing uncertainties over continuing debt negotiations in Greece.

Canon Inc. (7751), the Japanese camera maker that gets a third of its sales from Europe, fell 1 percent in Tokyo.

Reliance Industries (RIL) Ltd., India’s biggest company by market value, sank 2.9 percent in Mumbai after earnings dropped for the first time in two years.

Olympus Corp. (7733), the world’s No. 1 maker of endoscopes, jumped 8.2 percent after it was allowed to keep its stock market listing following an accounting fraud that cut the company’s market value by about $4 billion.

European stocks climbed to a five- month high, led by a rally in banks, as Greece bargained with bondholders over debt relief and Germany floated the idea of combining Europe’s two rescue funds.

European Union finance chiefs started discussing the region’s rescue funds, Greece’s latest offer to bondholders, a German-inspired deficit-control treaty and nominees to the European Central Bank’s board today.

National benchmark indexes rose in 15 of the 18 western European markets today.

UniCredit, Italy’s biggest bank, rallied 10 percent to 3.66 euros while Banca Monte dei Paschi di Siena SpA, the nation’s third-biggest, surged 14 percent to 26.23 euro cents and Intesa Sanpaolo SpA climbed 5.4 percent to 1.46 euros.

Elsewhere, Commerzbank gained 13 percent to 1.95 euros in Frankfurt trading. Societe Generale SA climbed 8.6 percent to 22.80 euros in Paris, a tenth day of gains for the longest winning streak since March 2009.

Outokumpu jumped 18 percent to 7.97 euros as ThyssenKrupp said it’s in talks to merge its Inoxum stainless steel unit with the Finnish company. All options for the unit are still open, including an initial public offering, spinoff or a sale to an investor, ThyssenKrupp said.

ThyssenKrupp, Germany’s largest steelmaker, rallied 2.6 percent to 21.26 euros.

The Standard & Poor’s 500 Index rose for a fifth day, capping its longest rally since December, as energy and bank shares advanced and investors weighed developments in Europe’s efforts to tame its debt crisis.

Euro area finance ministers agreed on the region’s permanent rescue fund, the European Stability Mechanism, based on Finland’s proposal. Germany and France said talks between Greece and bondholders were making progress, while a government official in Berlin said Germany may be open to combining Europe’s two bailout mechanisms and boosting their funding limit.

Bank of America jumped 2.6 percent, the biggest gain in the Dow, to $7.25. The lender, which already targeted $5 billion in expense cuts from retail and back-office operations, may reach total savings of $6 billion to $8 billion a year, Moynihan said during a Jan. 19 employee meeting.

Procter & Gamble fell 1.9 percent, the second-most in the Dow, to $65. The company was lowered to “hold” from “buy” at Stifel Nicolaus.

Research In Motion Ltd. tumbled 8.5 percent to $15.56. The BlackBerry maker shook up its top management, replacing co-Chief Executive Officers Jim Balsillie and Mike Lazaridis, who guided the company for two decades and struggled to compete against Apple Inc. Thorsten Heins, a chief operating officer who joined RIM four years ago from Siemens AG, will replace the pair in the CEO post effective immediately.

Resistance 3 : $1.3130 (Dec 20 high)

Resistance 2 : $1.3075 (Jan 3-4 high)

Resistance 1 : $1.3050 (Jan 23 high)

The current price: $1.3009

Support 1 : $1.2985 (session low)

Support 2 : $1.2950 (support line from Jan 17)

Support 3 : $1.2875/85 (area of Jan 20-23 low)

Change % Change Last

Oil $99.95 +0.37 +0.37%

Gold $1,677.50 -0.80 -0.05%

Change % Change Last

Nikkei 225 8,766 -0.46 -0.01%

Hang Seng Closed

S&P/ASX 200 4,225 -14.53 -0.34%

Shanghai Composite Closed

CAC 40 3,338 +16.92 +0.51%

DAX 6,437 +32.23 +0.50%

Dow 12,708.82 -11.66 -0.09%

Nasdaq 2,784.17 -2.53 -0.09%

S&P 500 1,316.00 +0.62 +0.05%

00:00 China Bank holiday

03:00 Japan BoJ Interest Rate Decision 0.10% 0.10%

07:00 Japan BOJ Press Conference

08:00 Switzerland UBS Consumption Indicator December 0.81

08:00 France Services PMI (preliminary) January 50.3 50.0

08:00 France Manufacturing PMI (preliminary) January 48.9 49.3

08:30 Germany Manufacturing PMI (preliminary) January 48.4 49.1

08:30 Germany Services PMI (preliminary) January 52.4 52.2

09:00 Eurozone Manufacturing PMI (preliminary) January 46.9 47.4

09:00 Eurozone Services PMI  (preliminary) January 48.8 49.0

09:00 Eurozone ECOFIN Meetings

09:30 United Kingdom PSNB, bln December 15.2 12.7

10:00 Eurozone Industrial New Orders s.a., m/m November +1.8% -2.1%

10:00 Eurozone Industrial New Orders, y/y November +1.6% -2.7%

13:30 Canada Retail Sales, m/m November +1.0% +0.3%

13:30 Canada Retail Sales ex Autos, m/m November +0.7% +0.2%

14:00 Belgium Business Climate January -10.6 -10.1

20:00 United Kingdom BOE Gov King Speaks 0

23:50 Japan Adjusted Merchandise Trade Balance, bln December -537.9 -376.5