Analytics, News, and Forecasts for CFD Markets: currency news — 24-02-2012.

European stocks climbed as companies from Telecom Italia SpA to Eiffage SA said they will cut their debt in 2012.

National benchmark indexes advanced in 13 of the 18 western-European markets. Germany’s DAX Index gained 0.8 percent, while France’s CAC 40 Index rose 0.7 percent. The U.K.’s FTSE 100 Index slipped less than 0.1 percent.

Telecom Italia jumped 6.8 percent to 86.7 euro cents after the company forecast a bigger-than-estimated reduction of debt this year, as well as stable earnings and revenue. Full-year earnings before interest, taxes, depreciation and amortization climbed 7.3 percent to 12.25 billion euros ($16.4 billion), inline with analysts’ estimate of 12.3 billion euros.

Eiffage surged 16 percent to 29.51 euros after Chief Executive Officer Pierre Berger said the French builder’s net income and revenue will climb in 2012 as it improves the operating margins at its contracting units. The company plans to trim its debt by 2 billion euros in five years. Natixis upgraded the shares to “buy” from “neutral.”

Elsewhere, Lloyds Banking Group Plc slid 2.3 percent to 35.73 pence, paring yesterday’s 3.3 percent advance. The shares fell after the lender’s full-year net loss widened to 2.8 billion pounds from 320 million pounds for 2010 as the bank compensated customers who were mis-sold loan insurance. That fell short of the 2.41 billion-pound median analyst estimate.

U.S. stocks rose, sending the Standard & Poor’s 500 Index above its highest close since 2008, as better-than-estimated consumer sentiment and home sales reports bolstered confidence in the world’s largest economy.

Equities gained today as data showed that purchases of new homes in the U.S. exceeded forecasts in January after climbing a month earlier to a one-year high. The Thomson Reuters/University of Michigan final index of consumer sentiment for February rose to 75.3. Economists projected a reading of 73.

Dow 13,001.60     +16.91 +0.13%, Nasdaq      2,969.77       +12.79 +0.43%, S&P 500   1,368.22       +4.76         +0.35%

AIG gained 2 percent to $28.54. The insurer cited a return to “sustainable operating profit” as it booked a tax benefit that fueled record fourth-quarter earnings. AIG is projecting that it will generate enough profit to use tax assets, tied to prior losses, that can limit future payments to the government.

Salesforce.com added 8.9 percent, the most in the S&P 500, to $143.43. The amount Salesforce invoiced its customers grew 57 percent in the fourth quarter from a year earlier, topping the 31 percent predicted by Brent Thill, an analyst at UBS AG in San Francisco. Billings rose 29 percent in the third quarter.

Kroger gained 2 percent to $23.44. The company was raised to buy from neutral at Citigroup. The firm also added the shares to its “Top Picks Live” list.

Gap Inc. retreated 3.2 percent, the second-most in the S&P 500, to $22.78. The largest U.S. apparel chain forecast profit this year that was less than some analysts estimated as sales declined at its Old Navy stores.

Sprint Nextel Corp. dropped 3.2 percent to $2.44. Comcast Corp., the largest U.S. cable company, sued a unit of Sprint alleging infringement of four telecommunications patents.

Oil climbed for a seventh day, the longest streak of advances since January 2010, as escalating tension with Iran threatens supplies and on signs of a global economic recovery.

Futures rose to a nine-month high as sanctions against the Persian Gulf nation make it more difficult for Iran to sell crude. Purchases of new homes in the U.S. exceeded forecasts in January while American, French and South Korean consumer confidence increased this month, reports showed today.

Crude oil for April delivery rose to $109.08 a barrel on the New York Mercantile Exchange. Brent oil for April settlement gained 60 cents, or 0.5 percent, to $124.22 a barrel on the London-based ICE Futures Europe exchange.

Gold has consolidated on expectations of a soft monetary policy in major economiesaround the world. Eurozone banks will next week bring a three-year loans the ECB is almost the same amount as in December, in an operation that can support the rally in bond markets. Demand from financial institutions in the three-year loans to the ECB, the auctionwhich is scheduled for February 29, could reach 470 billion euros ($ 629 billion).

Euro rose to a 2.5-month high against the dollar by providing financial assistance toGreece and the improvement of business sentiment in Germany. Over the weekend, will host a meeting of finance ministers, "G-20", at which they will discuss the debt crisis in the eurozone.

Demand for the physical market is reduced, as buyers put off purchases in Asia because of high prices.

The cost of the February gold futures on the COMEX today kept in the range of 1773.6 -1780.7 per ounce.

• Boost the economy "back to trend" will not be very effective

• Politicians are not used to recessions, when debt levels are too high

• "The fiasco of the housing market" may deter "generation" of potential buyers

• Quantitative easing has generally been deemed effective

• Rebalancing the housing market is likely to be "long process"

• Weak overall demand requires support from the Fed's policies

• Purchases of mortgage bonds have supported the housing market

• Fiscal measures can also help revive the housing market in life, to support the economy

• Fiscal stimulus now could be more effective monetary policy

• The situation in the housing market hurt the economy, but this is not the only reason for the slow recovery

EUR/USD $1.3200, $1.3250, $1.3300 

AUD/USD $1.0550, $1.0600, $1.0660

USD/JPY Y79.50, Y80.00, Y80.25

EUR/CHF Chf1.2100

GBP/USD $1.5675

Data:

07:00 Germany GDP (QoQ) IV quarter -0.2% -0.2% -0.2%

07:00 Germany GDP (wda) (YoY) IV quarter +1.5% +1.5% +1.5%

08:45 Eurozone ECB's Jens Weidmann Speaks 0

09:30 United Kingdom GDP, q/q (revised) IV quarter +0.6% -0.2% -0.2%

09:30 United Kingdom GDP, y/y (revised) IV quarter +0.5% +0.8% +0.7%

 

The euro strengthened  as officials prepared to seek support to tackle the debt crisis when Group-of-20 nations meet tomorrow.

The euro headed for a seventh-straight advance against the yen, the longest run since January 2010, after demand was boosted by the prospect that G-20 officials meeting this weekend may discuss committing further resources to Europe’s debt crisis.

The dollar declined against most major currencies before speeches later today by Federal Reserve policy makers including Federal Reserve Bank of New York President William Dudley, St. Louis Fed President James Bullard and Fed Bank of Philadelphia President Charles Plosser.

 

EUR/USD: the pair grown above $1.3400.

GBP/USD: the pair grown above $1,5800.

USD/JPY: the pair grown in Y80,50 area.

 

The main US data release is at 1455GMT, with the release of the Consumer Sentiment numbers.  At 1500GMT, U.S. New Home Sales data is released. Also at 1500GMT, Bank of Canada Governor Mark Carney speaks to the U.S. Monetary Policy Forum, in New York. At 1545GMT, St. Louis

Fed President James Bullard and San Francisco Federal Reserve Bank President John Williams discuss a report on housing and monetary policy  at the same conference. Late data, at 2115GMT, sees the release of the U.S. C&I Loans numbers.

EUR/USD

Offers $1.3500, $1.3480/85, $1.3450/60

Bids $1.3385/80, $1.3355/50, $1.3340, $1.3325, $1.3310/00 

AUD/USD

Offers $1.0900, $1.0840/45, $1.0800/05, $1.0790/95, $1.0760

Bids $1.0680/70, $1.0660, $1.0610/00, $1.0590/80, $1.0570/65

Resistance 3: Y82.20 (high of May) Resistance 2: Y81.50 (high of July) Resistance 1: Y80.65 (session high) Current price: Y80.54 Support 1:Y79.90 (Feb 20-21 high, session low) Support 2:Y79.30 (Feb 20 low) Support 3:Y78.80 (Feb 17 low)

Resistance 3: Chf0.9140 (Feb 21-22 highs)

Resistance 2: Chf0.9080 (Feb 20-21 lows, high of american session on Feb 23)

Resistance 1: Chf0.8930 (session high)

Current price: Chf0.8986

Support 1: Chf0.8970 (session low)

Support 2: Chf0.8950 (Nov 11 low)

Support 3: Chf0.8920 (Nov 8-9 lows)

Resistance 3 : $1.5930 (high of February)

Resistance 2 : $1.5880/90 (Feb 20 high, МА (200) for D1)

Resistance 1 : $1.5810 (Feb 22 high, session high)

Current price: $1.5801

Support 1 : $1.5750 (high of asian session, МА(200) for Н1)

Support 2 : $1.5720 (session low)

Support 3 : $1.5680 (low of american session on Feb 23)

Resistance 3 : $1.3610 (Nov 18 high)

Resistance 2 : $1.3540 (high of December)

Resistance 1 : $1.3460 (Dec 8 high)

Current price: $1.3414

Support 1 : $1.3360/45 (session low, support line from Feb 16)

Support 2 : $1.3270 (low of american session on Feb 23, Feb 22 high)

Support 3 : $1.3210 (Feb 21 low)

EUR/USD $1.3200, $1.3250, $1.3300 

AUD/USD $1.0550, $1.0600, $1.0660

USD/JPY Y79.50, Y80.00, Y80.25

EUR/CHF Chf1.2100

GBP/USD $1.5675

The euro touched its strongest level in more than 10 weeks against the dollar before a German report forecast to confirm resilience in Europe’s largest economy.  The 17-nation euro was set for its longest weekly winning streak versus the yen since April 2011 as Group of 20 officials meeting this weekend may discuss committing further resources to Europe’s debt crisis.

Japanese Finance Minister Jun Azumi said today Europe will be the central topic at the G-20 meeting in Mexico City. European officials will push other G-20 nations to commit fresh cash to the International Monetary Fund to help defuse the region’s fiscal crisis.

Japan is considering contributing $50 billion to the IMF’s European rescue package, the Asahi newspaper reported yesterday, without saying where it obtained the information.

Australia’s dollar rose, extending its second-consecutive weekly gain, as comments by Reserve Bank Governor Glenn Stevens that monetary policy is “about right” reduced investor expectations of interest-rate cuts.

The so-called Aussie strengthened versus 13 of its 16 major counterparts before reports that may show improvement in the U.S. housing market, boosting demand for higher-yielding assets. The currency maintained its advance after former Australian Prime Minister Kevin Rudd said he will challenge his successor Julia Gillard in a leadership ballot. Stevens and the central bank board unexpectedly kept Australia’s benchmark interest rate unchanged at 4.25 percent on Feb. 7 after making two quarter percentage-point cuts in the final months of 2011.

EUR/USD: during the Asian session the pair was in a range $1.3360-$1.3380.

GBP/USD: during the Asian session the pair corrected, after yesterday's growth.

USD/JPY: during the Asian session the pair rose, showed new month’s high.

German data kicks off Friday's calendar, with the released of fourth quarter GDP data and the Maastricht debt levels. At 1030GMT, the German government holds a press conference, in Berlin, with Greece, the IMF and G20 likely to dominate. A slew of UK data comes up at 0930GMT, with the release of the second reading of Q4 GDP, the December Index of Services and Q4 Business Investment. The main US data release is at 1455GMT, with the release of the Consumer Sentiment numbers.  At 1500GMT, U.S. New Home Sales data is released. Also at 1500GMT, Bank of Canada Governor Mark Carney speaks to the U.S. Monetary Policy Forum, in New York. At 1545GMT, St. Louis

Fed President James Bullard and San Francisco Federal Reserve Bank President John Williams discuss a report on housing and monetary policy  at the same conference. Late data, at 2115GMT, sees the release of the U.S. C&I Loans numbers.

Yesterday the euro advanced to the strongest level in more than 10 weeks against the dollar as a report showed German business confidence rose to the highest level in seven months amid progress taming the region’s debt crisis. The Munich-based Ifo institute said its business climate index climbed to 109.6 from 108.3 in January, the highest reading since July, amid euro area efforts to prevent a default by Greece. The 17-nation currency pared gains after data forecast that Europe’s economy will shrink in 2012. The euro stayed higher even after the European Commission forecast of a shrinking euro-zone economy in 2012, with Italy and Spain facing sudden crunches as they battle to escape the debt crisis. The euro bloc will contract 0.3 percent, the commission said, abandoning a November forecast of 0.5 percent growth. The downgrade was mainly due to projected contractions of 1.3 percent in Italy and 1 percent in Spain.

The dollar dropped after U.S. initial jobless claims held at a four-year low, damping demand for safety. Applications for jobless benefits were unchanged in the week ended Feb. 18 at 351,000, the fewest since March 2008, Labor Department figures showed yesterday. The median projection in a survey called for 355,000 claims, marking the fourth straight week that the figures have been better than forecast. The number of people on unemployment benefit rolls dropped to the lowest level since August 2008.

Asian stocks declined as sales of previously owned homes in the U.S. trailed estimates and on speculation China’s Premier Wen Jiabao will lower the target for economic growth this year.

Nikkei 225 9,595.57 +41.57 +0.44%

Hang Seng 21,380.99 -168.29 -0.78%

S&P/ASX 200 4,286.19 -6.93 -0.16%

Shanghai Composite 2,409.55 +5.97 +0.25%

Datang International Power Generation Co., a mainland utility, slid 1 percent in Hong Kong.

Samsung Electronics Co. dropped 3.1 percent in Seoul, leading technology stocks lower after Hewlett-Packard Co. forecast profit that missed estimates.

Mazda Motor Corp. sank 6.8 percent after Japan’s least profitable major carmaker said it plans to sell as much as 162.8 billion yen ($2 billion) in new shares.

Resistance 3: Chf0.9180 (Feb 20 high)

Resistance 2: Chf0.9150 (Feb 21 high, MA (233) H1)

Resistance 1: Chf0.9115 (session high)

The current price: Chf0.9014

Support 1: Chf0.9000 (middle line from Feb 16)

Support 2: Chf0.8950 (Nov 11 low)

Support 3: Chf0.8920 (Nov 8-9 low)

Resistance 3 : $1.3485 (Dec 5 high)

Resistance 2 : $1.3430 (Dec 9 high)

Resistance 1 : $1.3380 (Feb 23 high)

The current price: $1.3371

Support 1 : $1.3340 (support line from Feb 23)

Support 2 : $1.3270 (low of the American session on Feb 23)

Support 3 : $1.3230 (Feb 23 low, MA (233) H1)

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3372 +0,93%

GBP/USD $1,5742 +0,48%

USD/CHF Chf0,9012 -0,98%

USD/JPY Y80,00 -0,38%

EUR/JPY Y106,97 +0,56%

GBP/JPY Y125,93 +0,13%

AUD/USD $1,0716 +0,75%

NZD/USD $0,8362 +0,85%

USD/CAD C$0,9973 -0,24%

07:00 Germany GDP (QoQ) IV quarter -0.2% -0.2%

07:00 Germany GDP (wda) (YoY) IV quarter +1.5% +1.5%

08:45 Eurozone ECB's Jens Weidmann Speaks 0

09:30 United Kingdom GDP, q/q

(revised) IV quarter +0.6% -0.2%

09:30 United Kingdom GDP, y/y (revised) IV quarter +0.5% +0.8%

14:55 U.S. Reuters/Michigan Consumer Sentiment Index (finally) February 75.0 72.5

15:00 Canada BOC Gov Carney Speaks 0

15:00 U.S. New Home Sales January 307 316

15:45 U.S. FOMC Member Williams Speaks 0

16:35 U.S. FOMC Member James Bullard Speaks 0

18:30 U.S. FOMC Member Charles Plosser Speaks 0

18:30 U.S. FOMC Member Dudley Speak