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Market Overview |
Written by ActionForex.com |
Jan 14 10 13:16 GMT |
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Yen rebounds across the board in early US session after disappointment from US data. Meanwhile, Euro remains generally steady after ECB rate decision and press conference. Retail sales unexpectedly fell -0.3% in December. Ex-auto sales also dropped -0.2%. Initial jobless claims rose slightly to 444k even though the 4-week average dropped to 18 months low of 440.38k. Continuing claims dropped by 211k to 4.6m. Import price was flat in December. |
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Market Overview |
Written by ActionForex.com |
Jan 14 10 06:06 GMT |
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Yen weakens broadly in Asian on stock rally as well as on comments from Finance Minister Naoto Kan. Kan said that some nations might bring up the issue of Chinese Yuan in the upcoming G7 meeting in Canada and he's prepared to comments on that. Also, Kan expressed that there are still "various measures that could be taken " by BoJ in guiding monetary policy to support the economy. Nevertheless, he again toned down his call by a weaker yen by reiterating that exchange rates should be set by the markets unless there are rapid moves. |
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Market Overview |
Written by ActionForex.com |
Jan 13 10 13:29 GMT |
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Dollar lost ground to Euro and Sterling in spite of some hawkish comments from Fed Plosser. Euro was lifted by comments from Greek Finance Minister George Papaconstantinou a bailout of the country is not necessary. Sterling, on the other hand, is still receiving strong support from Sentance's comments and rate speculations. Commodities are steady in consolidation with crude oil hovering around 80 level while gold is trading around 1130. |
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Market Overview |
Written by ActionForex.com |
Jan 13 10 07:20 GMT |
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Dollar and yen remain in range today, even though Asian stocks are broadly lower in response to China's measure to curb lending, including hiking bill yields and raising reserve requirements. Sterling, on the other hand, is boosted by comments from BoE Sentance that suggests the bank might pause the quantitative easing program. Crude oil extends recent pullback and drops below 80 level while gold is also trading below 1130. We'd expect the intermarket development to provide some support to greenback in near term for stronger rebound. |
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Market Overview |
Written by ActionForex.com |
Jan 12 10 12:40 GMT |
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Yen rallies across the board as China took another step to cool lending by raising bank reserve requirements . Dollar, on the other hand, continues to consolidate against major currencies as crude oil and gold retreats. In particular, crude oil seems to be topped out in near term at 83.95 after missing 84 mark and extends it's pullback from there to as low as 81.26 so far today. USD/CAD is, thus lifted to as high as 1.0366 before being pressured by USD/JPY selling. |
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Market Overview |
Written by ActionForex.com |
Jan 12 10 05:32 GMT |
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Dollar recovers across the board as China raised bill yields second time in a week to tightening liquidity further. Crude oil retreats yesterday's gain and is back at 82 level while gold is also back pressing 1150. PBoC sold benchmark 1-year bill at 1.8434% today. Last week, PBoC raised yield on three-month bills to 1.3684%. The steps are viewed as sign that PBoC is getting more aggressive in draining cash from the money market and prompts speculations there will more measures to come, including increasing banks' reserve ratios. |
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Market Overview |
Written by ActionForex.com |
Jan 11 10 12:50 GMT |
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Dollar was sold off earlier today on risk appetite and remains soft in early US session. Japanese yen follows and is broadly lower against major currencies. Sterling is the bigger winner today, as a report showed that businesses are becoming optimistic about prospects of 2010. Euro is also helped by rebound in EUR/CHF on comments from SNB official about intervention. Gold soars above 1160 level today and is now consolidation earlier gains while crude oil rose to as high as 83.95, just shy of 84 level. Stocks in US is set to follow global equity rally and open higher and the development will probably give some pressure to the greenback in near term. |
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Market Overview |
Written by ActionForex.com |
Jan 11 10 05:54 GMT |
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Dollar is sharply lower as the week starts on risk appetite as Asian stocks are broadly lifted by surprisingly strong China trade data. Exports in China jumped nearly 18% in December after 13 months of decline. Dollar index breaches 77 level briefly while gold soared to as high as 1163 before retreating. Crude oil also extends recent rise to as high as 83.67 so far. Among the major currencies, Swiss Franc is gaining most today as supported by buying against Euro. Meanwhile Aussie is strong as supported by gold as well as it's trade relationship with China. |
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Market Overview |
Written by ActionForex.com |
Jan 09 10 14:08 GMT |
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Australia dollar and Canadian dollar shined last week on strong rally in commodities and strength in global stocks. Dollar was lower following dovish FOMC minutes as well as disappointing job report. Rally in crude oil and rebound in gold also put some pressure on the greenback. But after all, the weakness against European currencies was limited so far. Japanese yen was generally lower as new Finance Minister Kan expressed his position on a weaker yen. After all dollar's consolidation would likely extend for some time but we'd expect strong broad-based rally after crude oil and gold peak. Meanwhile, Japanese yen would remains soft in near term too but we're also expecting the yen to rebound as selling momentum diminishes. |
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Market Overview |
Written by ActionForex.com |
Jan 08 10 12:52 GMT |
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Dollar spikes lower after Non-Farm Payrolls shocked the market by showing -85k contraction in December. Nevertheless, November's data was revised up to 4k, which was the first expansion since Jan 2008. Unemployment rate was unchanged at 10.0%. The Japanese yen is mildly higher on risk aversion. Also released in US session, Canadian job market unexpectedly contacted by -2.6k in December but unemployment rate was unchanged at 8.5%. |
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Market Overview |
Written by ActionForex.com |
Jan 08 10 05:24 GMT |
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Dollar's rebound stalls as traders are awaiting today's non-farm payrolls report from US. Economists expect the job market to be flat in December after 23 months of contraction. Unemployment rate is expected to be unchanged at 10%. Most of the leading indicators to NFP point to a positive report today. ADP reprinted the least contraction since March 2008, -84k in the private sector in December. Employment component of ISM Manufacturing index stayed above 50 level for the third month and rose slightly to 52.0 in December. Employment component of ISM Non-manufacturing index improved from 4.16 to 44 in December even though it's still staying below 50, which suggests contraction. Consumer confidence continues to stabilize around 50 level and rose slightly to 52.9 in December while both the continuing claims and four week average of initial claims continue to fall. The data set suggest that we would likely have a better NFP number than November's -11k and a positive number is indeed possible. |
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Market Overview |
Written by ActionForex.com |
Jan 07 10 12:43 GMT |
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Dollar strengthens broadly into US session after comments from new Finance Minister Naoto Kan sent USD/JPY above 93 level. Risk aversion also helped the greenback after surprised yield hike from People's Bank of China to curb record lending. European majors are generally lower against the greenback with Sterling under pressure after a non-eventful BoE announcement. Aussie also pared earlier gains and dropped sharply from today's high of 0.9264 to 0.916 level. Nevertheless, Canadian dollar is relatively resilient as crude oil is still managing to stay above 82 level. |
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Market Overview |
Written by ActionForex.com |
Jan 07 10 05:22 GMT |
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Australian dollar and Canadian dollar continue to shine this week, boosted by strength in crude oil and gold. Australian dollar is also additionally supported by better than expected retail sales data released overnight. Dollar remains generally soft as dovish FOMC minutes suggest that there is still potential for additional quantitative easing. Sterling also remains vulnerable ahead of BoE meeting later today. While Euro manages to recover against dollar, it's still limited below near term resistance of 1.4483. Greece Finance Minister came out yesterday saying that there is no need for national bailout but Euro is noticeably against Swissy after the comment as EUR/CHF dived to 1.4765. |
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Market Overview |
Written by ActionForex.com |
Jan 06 10 14:08 GMT |
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Dollar's earlier strength faded in European session and turns sideway since then. The greenback continues stay in tight range after release of positive, but less than impressive data from US. ISM non-manufacturing index was back above 50 but just managed to rise to 50.1 versus expectation of 50.5. The ADP report showed US economy cut -84k jobs in the private sector in December, smallest contraction since March 2008 but was slightly worse than expectation of -75k. Nevertheless, November's number was revised up from -169k to -145k. Focus now turns to FOMC minutes to be released in the US afternoon. |
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Market Overview |
Written by ActionForex.com |
Jan 06 10 06:05 GMT |
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Dollar recovered overnight as rally in crude oil stalled ahead of 82.0 resistance while gold retreats ahead of 1130 level. The greenback is regathering some strength in early European session as gold's recovery lost steam and is back pressing 1120 level. The technical picture of dollar index suggests that recent rally is possibly ready to resume but the development will depend on risk sentiments, which could be heavily affected by the services and job data today, as well as FOMC minutes. |
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Market Overview |
Written by ActionForex.com |
Jan 05 10 13:30 GMT |
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Sterling continues to be the weakest major currencies and drops broadly today on concern on the increasing debt level of the country as well as on report of a rift between UK Chancellor Darling and PM Brown over the UK deficit of GPB 178b. An article by FT said that Darling's position is that revenue from growth should be used to cut borrowings rather than increase spending. This was in contrast to Brown's comment that such extra revenues should be used to boost spending to reduce pain of looming cuts. Sterling is pressured across the board and the weakness is particularly apparent against commodity currencies, which are lifted by strength in gold and oil prices as well as stock market rallies. |
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Market Overview |
Written by ActionForex.com |
Jan 05 10 05:11 GMT |
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Dollar remains soft in Asian trading today as equities strengthen broadly following overnight rally in US markets. Nikkei briefly hit a 15 month high of 10756 while Hong Kong HSI is also up 1.9%. Commodities remain firm with crude oil edging higher to 81.89, just shy of 82.0 resistance while gold is staying firm above 1120 level. However, the Japanese yen manages to recovery strongly against dollar and European majors on speculation of large-sized buying on exporters' repatriation. |
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Market Overview |
Written by ActionForex.com |
Jan 04 10 14:05 GMT |
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Dollar is pressured throughout the data as investors' risk appetite got a boost as the new year starts, on solid manufacturing data. Commodity currencies are the biggest winners as China PMI manufacturing rose to 56.1, highest level since April 2004. Strong growth in the manufacturing sector in China will boost demand for commodities. Crude oil rides on the optimism and breaches 80 level today while gold also rises to as high as 1124.6 so far. Data released from US saw ISM manufacturing index rose more than expected to 55.9 in December. |
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Market Overview |
Written by ActionForex.com |
Jan 04 10 07:47 GMT |
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Commodity currencies take the lead in the first trading day of 2010 and rally broadly, with the help of firmness in crude oil and gold. Dollar is a touch softer in early European session but remains in range against European majors. Japanese yen tried to stage recovery earlier today on weakness in Asian stocks but fades as the day goes. Manufacturing data will be the main focus today with finalized PMI manufacturing data from Eurozone, UK PMI manufacturing and US ISM manufacturing featured. |
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