Analytics, News, and Forecasts for CFD Markets: currency news — 25-10-2012.

The yen dropped to its weakest level in four months against the dollar as investors speculated that the Bank of Japan will expand monetary stimulus next week. Japan’s currency gained for the first time in three days versus the euro after the Nikkei newspaper reported the BOJ will consider increasing its asset-purchase program.

The pound jumped against the dollar as Britain emerged from its recession more strongly than economists predicted. U.K. gross domestic product rose 1 percent from the three months through June, the fastest expansion in five years, the Office for National Statistics said in London today. That exceeded the highest estimate for growth of 0.8 percent.

Euro retreated from session highs against the background of weak economic statistics. In the eurozone, the volume of consumer credit continued to fall in September, reflecting a decline of 0.8% y / y vs. -0.6% in August. The growth rate of the M3 monetary aggregate in the region slowed to 3.0% 3m/3m and 2.7% y / y from 3.1% / 2.8% in the previous period. The market expects the index data of German consumer confidence from the GfK, performance indicator of consumer confidence in France, which will be released tomorrow.

The New Zealand dollar rose against the U.S. dollar to two-week highs after the Reserve Bank of New Zealand decided to keep the base interest rate at 2.5%. The new president of the bank in a statement Grime Wheeler noted that the global economy is still weak and although the market outlook earlier this year has already begun to improve, the future of the world economy is still not optimistic. According to him, the annual inflation rate in New Zealand was 0.8 percent, down 3.1 percentage corridor allowed by the Central Bank. However, the president predicted that this figure could go up to the middle of the expected gap. "The central bank will closely watch for changes in the coming months," - said Grime Wheeler.

Limited demand for the dollar after the Federal Reserve yesterday said it plans to buy more securities in the third round of quantitative easing, which lead to a depreciation of the U.S. currency. In a statement, the Fed noted modest growth in the U.S. economy and the continuing high level of unemployment in the country.

EUR / USD: during the European session, the pair rose to $ 1.3023, and then fell to $ 1.2985

GBP / USD: during the European session, the pair rose to a new high of $ 1.6143

USD / JPY: during the European session, the pair rose to a new high of Y80.21

Continue day block statistics U.S. at 12:30 GMT - the change in orders for durable goods, including excluding transportation equipment in September, the number of initial claims for unemployment insurance, the number of repeated applications for unemployment benefits, at 14:00 - volume change pending home sales for September. At 21:45 GMT New Zealand will release the trade balance (for 12 months, from the beginning of the year), trade balance for September. At 23:30 GMT Japan's consumer price index will be released in Tokyo, including excluding prices for fresh food, excluding prices for food and energy in October, the consumer price index, including excluding prices for fresh food, excluding prices for food and energy in September.

AUD/USD

Offers    $1.0520, $1.0500, $1.0450, $1.0400 

Bids   $1.0360/65, $1.0320, $1.0310, $1.0295/90

GBP/USD

Offers   $1.6215/20, $1.6200, $1.6150

Bids   $1.6085/80, $1.6060, $1.6045/40, $1.5980/70

EUR/JPY

Offers   Y105.20, Y105.00, Y104.80, Y104.50

Bids   Y103.80/70, Y103.60, Y103.10/00

USD/JPY

Offers   Y81.00, Y80.80, Y80.50, Y80.40, Y80.30/35

Bids    Y79.95/90, Y79.50, Y79.30

EUR/GBP

Offers   stg0.8160/65,  stg0.8130, stg0.8110/20, stg0.8100

Bids   stg0.8050, stg0.8000, stg0.7980

The yen weakened against all its major counterparts as stocks rose and investors speculated that the Bank of Japan will expand monetary stimulus next week. Japan’s Economy Minister Seiji Maehara, who has been calling for more action from the central bank, said earlier this week that he may attend the Oct. 30 meeting if his schedule permits. He was present at the central bank’s previous gathering this month, the first minister to do so for more than nine years. The BOJ last time expanded stimulus on Sept. 19, boosting the size of its asset-purchase program by 10 trillion yen ($125 billion).

New Zealand’s dollar reached its highest level in two weeks following the Reserve Bank’s decision to keep interest rates unchanged. Reserve Bank of New Zealand Governor Graeme Wheeler left the official cash rate at a record low 2.5 percent. Sluggish domestic demand and a rising currency have pushed inflation below the central bank’s target range of 1 percent to 3 percent target range.

The euro traded below $1.30 for a third day before data forecast to show German consumer confidence will fail to improve in November and French household sentiment fell for a fourth month, adding to signs that the region’s debt crisis is hampering growth in its biggest economies.

Demand for the dollar was limited after the Federal Reserve said it plans to continue bond buying in a third round of quantitative easing, which tends to debase the U.S. currency. The Fed said yesterday in a statement after a two-day policy meeting that the U.S. economy is still growing modestly and unemployment remains elevated.

EUR/USD: during the Asian session, the pair rose, approaching the previous day's high.

GBP/USD: during the Asian session, the pair rose to yesterday's high.

USD/JPY: during the Asian session, the pair rose to yesterday's high.

The release of the first estimate of UK GDP for the third quarter at 0830GMT is the singular data highlight for the week. At 1015GMT, the UK Bank of England  Deputy Governor Paul Tucker is due to deliver a speech in London. ECB September M3 is due to be published at  0800GMT along with Italian retail sales for the month of August. The US calendar kicks off at 1200GMT, with the release of US  September Building Permits Revision. At 1230GMT we see the release of US 20-October Initial Jobless Claims, which are expected to return to a more stable range of 370,000 after the wild swings in the last two weeks, which MNI noted were due to some technicalities in state reporting. Also at 1230GMT US September Durable Goods orders are due to be released and are expected to show modest gains in core figures, which exclude transportation and defence. Headline orders are expected to surge. Further US data is expected at 1400GMT, with the release of US  September NAR Pending Home Sales.