Forex: Wednesday's review
06.01.2011, 08:55

Forex: Wednesday's review

The euro fell against most of its major counterparts as the Swiss National Bank said it won’t accept bonds from some Irish banks as collateral. The Canadian dollar and Mexican peso were the best performers versus the yen on evidence of a North American economic recovery before the U.S. government’s payrolls figures due later this week.
The dollar advanced 1.4 percent to 83.21 yen at 12:16 p.m. in New York, from 82.04 yen yesterday. It rose as much as 1.6 percent in the biggest intraday gain since Sept. 15 and touched 83.36 yen, the highest level since Dec. 23. The dollar may appreciate to 85 yen by the end of the week if the payrolls report is strong, according to Anderson. The euro fell 1.1 percent to $1.3168, from $1.3308.
Company employment increased by 297,000 in December after a revised gain of 92,000 in the previous month, ADP Employer Services reported. The median forecast of 33 economists in a survey was for a gain of 100,000.


EUR/USD: the pair decreased in around $1,3100.

GBP/USD: the pair decreased in around $1,5500.

USD/JPY: the pair become stronger to Y83,00.


There is a raft of EMU data at 1000GMT with the economic  sentiment index expected to edge up to 105.4 for December, the business  climate indicator due at the same time and also retail trade for  November expected to come in at 0.1% m/m, 1.8% y/y. At 1100GMT, German manufacturing orders are expected to show a rise of 0.8% m/m, 16.1% y/y.
The UK calendar starts at 0930GMT with UK Official Reserves and also  the CIPS Services PMI release, which is expected to remain steady at  52.9 from 53.0 in November.
US data sees monthly store sales data but scheduled data starts at 1330GMT, when the weekly initial jobless claims are expected to rebound 24,000 to 412,000 in the January 1 holiday week after falling sharply in the previous week after seasonal adjustment. Claims usually jump sharply in early-January prior to seasonal adjustment. US data then continues  with the 1530GMT release of the weekly EIA Natural Gas Stocks data,  while late data sees weekly money supply data at 2130GMT.

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