Forex News Paper

Euro Weakens and Aussie Declines

2012-01-30T23:33:00.000+08:00

The euro fell for the first time in six days against the dollar as European Union leaders met in Brussels amid concern Greek bailout negotiations will hinder efforts to resolve the financial crisis.

The 17-nation currency slid for a third day versus the yen as Italy raised less than its maximum target at a bond sale after Fitch Ratings downgraded the nation last week. The Swiss franc strengthened to the highest level against the euro since September. South Africa’s rand and Australia’s dollar slid as stocks fell, damping demand for higher-yielding assets.

“The summit is happening today but we’re not seeing any progress on the private-sector involvement in Greece or improvement on a fiscal compact,” said Brian Kim, a currency strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc. “There was some hope last week and it’s gotten pulled back, and that’s affecting broader risk sentiment.”

The euro fell 1 percent to $1.3085 at 9:06 a.m. in New York, after rising 2.2 percent last week. The common currency dropped 1.2 percent to 100.19 yen. The euro declined 0.1 percent to 1.20535 Swiss francs after sliding to 1.2043, the weakest since Sept. 19. The dollar was little changed at 76.68 yen.

The Swiss National Bank in September capped the franc’s strength at 1.20 per euro. The president of the central bank at the time, Phillip Hildebrand, resigned earlier this month.

Global Economic Calendar (31-January-2012)

2012-01-30T23:29:00.000+08:00

Global Economic Calendar for 31st January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (30-January-2012)

2012-01-29T18:27:00.000+08:00

Global Economic Calendar for 30th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Dollar Declines to Five-Week Low Versus Euro on Fed Outlook

2012-01-26T21:59:00.000+08:00

The dollar fell to a five-week low against the euro on speculation the Federal Reserve will seek to bring down unemployment by introducing another round of bond purchases, debasing the currency.

The U.S. currency declined versus all but one of its 16 major counterparts after policy makers said yesterday the benchmark interest rate would stay low until at least late 2014, pushing back a previous date of mid-2013. The Canadian dollar strengthened to parity with the greenback for the first time since November. Australia’s dollar rose to the strongest since October as Russia said it may start buying the currency.

“The dollar has been getting sold across the board rather heavily since the Fed’s announcement,” said Neil Jones, head of European hedge fund sales at Mizuho Corporate Bank Ltd. in London. “The headlines were quite dovish and these affected the market, with the impulse reaction being to sell dollars.”

The dollar fell 0.3 percent to $1.3145 per euro at 7:01 a.m. in New York after sliding to $1.3175, the weakest level since Dec. 21. The U.S. currency dropped 0.2 percent to 77.64 yen. The euro was little changed at 102.04 yen after rising to 102.17 yen, the strongest since Dec. 23.

The Fed’s Open Market Committee “recognizes the hardships imposed by high and persistent unemployment in an underperforming economy, and it is prepared to provide further monetary accommodation,” Chairman Ben S. Bernanke said yesterday at a press conference in Washington.

Global Economic Calendar (27-January-2012)

2012-01-26T21:44:00.000+08:00

Global Economic Calendar for 27th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Dollar Strengthens as Greek Debt-Discussion Stalemate Spurs Safety Demand

2012-01-24T23:59:00.000+08:00

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.

“We’re getting a broad dollar rally across the board on a little bit of risk aversion,” said Boris Schlossberg, director of research at online currency trader GFT Forex in New York. “Europe’s PMI data was much more positive than the market thought. That’s giving the broader growth scenario a boost, but the beneficiary right now is the dollar because the euro is down over this issue of Greek private sector investment.”

The dollar rose 0.9 percent to 77.73 yen at 9:36 a.m. in New York and touched 77.82, the highest level since Dec. 29. The greenback appreciated 0.4 percent to $1.2961 per euro. The common currency rose 0.5 percent to 100.79 yen.

Global Economic Calendar (25-January-2012)

2012-01-24T23:54:00.000+08:00

Global Economic Calendar for 25th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (24-January-2012)

2012-01-23T23:08:00.000+08:00

Global Economic Calendar for 24th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Dollar, Yen Weaken Before Merkel

2012-01-11T02:19:00.000+08:00

The dollar and yen weakened against higher-yielding currencies before Germany’s chancellor meets with the International Monetary Fund’s managing director amid signs European leaders are taking steps to end the debt crisis.

The U.S. currency slid the most versus Brazil’s real and New Zealand’s dollar as stocks and commodities advanced amid bets the Peoples Bank of China may move to spur growth. Implied volatility (JPMVXYG7) for currencies of advanced economies fell to a six- month low. The euro gained versus the dollar on speculation investors pared wagers the 17-nation currency will weaken.

“It’s about the performance of commodity currencies today,” said Mary Nicola, a New York-based currency strategist at BNP Parisbas SA. “There are further expectations of easing from the PBOC. If you have more easing, it’s more supportive of credit generation and investment, so you’re going to help support commodities and raw materials.”

The dollar fell 0.1 percent to $1.2778 per euro at 11:45 a.m. in New York after weakening 0.4 percent yesterday. The yen declined 0.1 percent to 98.20 per euro. The dollar was little changed at 76.85 yen.

The implied volatility of three-month options for Group of Seven currencies fell to 10.6 percent, according to a JPMorgan Chase & Co. index, the lowest level on a closing basis since July 8. Reduced volatility indicates less probability of currency fluctuations that may erode profit on investments in higher-yielding assets.

Global Economic Calendar (11-January-2012)

2012-01-11T02:16:00.002+08:00

Global Economic Calendar for 11th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Euro Snaps Three-Day Drop Against Dollar as Merkel Meets Sarkozy on Debt

2012-01-10T00:15:00.000+08:00

The euro snapped a three-day slide against the dollar as the leaders of Germany and France met to craft a plan for rescuing the 17-nation common currency.

The Swiss franc advanced after central-bank Chairman Philipp Hildebrand quit following currency-trading allegations. New Zealand’s dollar and Brazil’s real were the top performers versus the dollar as commodities rose. The euro gained versus the majority of its most-traded peers after euro-area leaders said they may complete a new budget rulebook by Jan. 30. U.S. retail sales rose last month, data this week may show.

“This meeting was just setting up for the finance-minister meeting later this month,” Mark McCormick, a New York-based currency strategist at Brown Brothers Harriman & Co., said after the talks between Merkel and Sarkozy. “We have a little tug of war between better macro data in the United States and policy developments in the euro zone.”

The shared currency advanced 0.3 percent to $1.2751 at 9:34 a.m. New York time, after earlier falling to $1.2666, its weakest level since Sept. 10, 2010. The euro was little changed at 97.96 yen after dropping earlier to 97.28, the least since December 2000. The dollar fell 0.2 percent to 76.83 yen.

The euro is unlikely to rise over $1.28, McCormack said.

Futures traders increased their bets to a record high that the euro will decline against the dollar. The difference between wagers that the shared currency would fall versus those that it would rise -- so-called net shorts -- surged to 138,909 in the week ended Jan. 3, according to data from the Commodity Futures Trading Commission.

Global Economic Calendar (10-January-2012)

2012-01-10T00:11:00.000+08:00

Global Economic Calendar for 10th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (9-January-2012)

2012-01-09T01:46:00.000+08:00

Global Economic Calendar for 9th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Euro Weakens Amid Concern Region’s Debt Crisis Is Worsening

2012-01-05T02:29:00.000+08:00

The euro fell from almost a one-week high against the dollar after a European report showed inflation slowed and Italy’s biggest bank said it needs to raise more capital, fueling bets the region’s debt crisis is worsening.

The 17-nation currency dropped toward an 11-year low against the yen after UniCredit SpA’s plan to sell shares spurred concern European banks will need to raise more capital. The euro slid versus most major peers after El Pais newspaper said the Spanish government helped the Valencia region make an overdue payment to Deutsche Bank AG. The pound climbed to a 15- month high versus the shared currency.

“The German auction wasn’t stellar, and you can trace the weaker euro to concerns in Spain that are starting to bubble to the surface again,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. “There’s definitely a somewhat more defensive tone to the market today.”

The euro fell 1 percent to $1.2924 at 11:15 a.m. in New York after rising to $1.3077 yesterday, the highest level since Dec. 28. The common currency depreciated 1 percent to 99.16 yen. It dropped to 98.66 yen on Jan. 2, the weakest since December 2000. The dollar was little changed at 76.74 yen.

Europe’s shared currency slid 5.6 percent over the past six months, the worst performer among the 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, as investors sought safer assets amid the region’s debt turmoil. The dollar gained 7.3 percent and the yen climbed 12 percent.

Global Economic Calendar (05-January-2012)

2012-01-05T02:25:00.000+08:00

Global Economic Calendar for 5th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Dollar Weakens Versus All of Its Major Peers

2012-01-04T02:03:00.001+08:00

The dollar fell the most more than a month against the euro as signs manufacturing is expanding in the U.S. and China damped the appeal of safer assets.

The greenback weakened versus all of its most-traded peers after a U.S. factory gauge rose at the fastest in six months. Data earlier this week showed gains in factory indexes for China and India. The euro advanced from an 11-year low versus the yen after German unemployment fell more than forecast. Australia’s and New Zealand’s dollars rose to the strongest since November.

“One of the factors that’s undermining the dollar today is a reversal of year-end trades into the safe haven of the dollar,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp., the world’s largest custodial bank, with more than $26 trillion in assets under administration. “It’s helping reverse international equities and cause some dollar softness right now.”

The dollar fell 0.9 percent to $1.3047 per euro at 12:40 p.m. in New York after dropping as much as 1 percent, the biggest intraday decline since Nov. 30. The U.S. currency declined 0.2 percent to 76.73 yen. The euro gained 0.6 percent to 100.10 yen after falling to 98.66 yesterday, the weakest level since December 2000.

The Standard & Poor’s 500 Index climbed 1.7 percent.

Global Economic Calendar (04-January-2012)

2012-01-04T01:59:00.000+08:00

Global Economic Calendar for 4th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (03-January-2012)

2012-01-02T19:39:00.003+08:00

Global Economic Calendar for 3rd January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Canadian Dollar Rises First Time in 3 Days as Investor Risk Aversion Drops

2011-12-20T21:41:00.000+08:00

The Canadian dollar increased for the first time in three days against its U.S. counterpart as crude oil prices rose and investor risk aversion eased.

Canada’s dollar, also known as the loonie, remained higher after a government report showed the annual inflation rate was unchanged in November, as rising food and automobile prices offset lower costs for gasoline.

The loonie gained 0.5 percent to C$1.0336 per U.S. dollar at 7:16 a.m. Toronto time. It touched C$1.0424 on Dec. 14, the weakest level this month. One Canadian dollar buys 96.75 U.S. cents.

Futures on crude oil, Canada’s biggest export, rallied 0.9 percent to $94.90 a barrel in New York. Futures on the Standard & Poor’s 500 Index increased 0.8 percent.

The consumer price index rose 2.9 percent in November from a year earlier, Statistics Canada said today in Ottawa, matching the median of 22 forecasts in a Bloomberg News survey of economists. On a monthly basis, consumer prices rose 0.1 percent in November, also in line with economist expectations, down from a 0.2 percent pace in October.

Bank of Canada policy makers have kept the bank’s key interest rate at 1 percent since September 2010. Lower interest rates make a country’s currency less attractive to foreign investors.

Although Europe’s widening debt crisis is raising risks to the global economy, there is “considerable monetary stimulus” in Canada with interest rates near historic lows and the financial system “functioning well,” policy makers led by Bank of Canada Governor Mark Carney said in a Dec. 6 statement.

Euro Gains Versus Dollar as German Business Sentiment Rises

2011-12-20T21:27:00.000+08:00

The euro rose from within a half cent of an 11-month low against the dollar after an Ifo report showed German business confidence unexpectedly increased and borrowing costs fell at a Spanish bill sale.

The U.S. currency fell against all of its 16 most-traded counterparts tracked by Bloomberg on reduced demand for a refuge. Sweden’s krona and the Australian dollar rallied after central banks signaled they may hold off on cuts in interest rates at the start of 2012. The pound gained as U.K. consumer confidence rose from a record low.

“The Ifo index for Germany certainly surprised to the upside,” said Ulrich Leuchtmann, head of currency strategy at Commerzbank AG in Frankfurt. “This is good news for the euro.”

The 17-nation euro appreciated 0.5 percent to $1.3067 at 7:21 a.m. New York time, after falling to as low as $1.2946 on Dec. 14, the least since Jan. 11. Europe’s shared currency strengthened 0.4 percent to 101.83 yen. The dollar decreased 0.1 percent to 77.94 yen.

The Stoxx Europe 600 Index of equities gained 0.4 percent, and futures on the Standard & Poor’s 500 Index advanced 0.8 percent. Treasury 10-year notes fell, pushing the yield three basis points higher to 1.84 percent.

Australia’s dollar rose 1 percent to 99.94 U.S. cents after minutes of the last central bank meeting showed policy makers saw a continued expansion in the domestic economy even as Europe’s debt crisis weighed on global growth. “Solid growth” among trading partners has tempered the need for lower rates, the minutes said.

Global Economic Calendar (21-December-2011)

2011-12-20T21:18:00.002+08:00

Global Economic Calendar for 21st December 2011

**Time is with respect to Singapore Time (GMT+8:00)

Dollar Falls as Stronger Economic Data

2011-12-16T03:32:00.000+08:00

The dollar dropped against the majority of its most-traded counterparts as U.S. economic data showed a quickening recovery and European funding stress eased, damping demand for the safety of the U.S. currency.

The 17-nation euro rallied from an 11-month low against the dollar as Spain sold more than its maximum target at a debt auction and a report showed European manufacturing and service industries contracted less this month than economists forecast. The Swiss franc advanced after the central bank refrained from introducing additional measures to weaken the currency. The Brazilian real and the Australian dollar strengthened on improved demand for higher-returning assets.

“With the Spanish bond auction, yields are still high, but when you’re able to sell all the bonds that they wanted to, that’s a good sign,” said John Doyle, a strategist in Washington at currency-trading firm Tempus Consulting Inc. “We followed up with fairly decent numbers here in the U.S. and it has kept with the narrative of a slightly risk-on kind of day.”

The dollar fell 0.3 percent to $1.3020 per euro at 2:06 p.m. in New York, after falling as much as 0.5 percent. Yesterday it reached $1.2946, the strongest level since Jan. 11. The greenback fell 0.3 percent to 77.86 yen. The European currency was little changed at 101.38 yen.

Global Economic Calendar (16-December-2011)

2011-12-16T03:26:00.000+08:00

Global Economic Calendar for 16th December 2011

**Time is with respect to Singapore Time (GMT+8:00)

Trade Share (14-December-2011)...

2011-12-15T02:43:00.000+08:00

Hi everyone. Trade share on the 14th December. Right at FED's announcement on USD Interest Rates.

Went with AUD/USD since the start of 14th December (Singapore Time). FED's annoucement was at 2:15am on 14th December (Singapore Time). From the charts, weakness was showing 5mins before FED's announcement.

This is the total rip done for 14th December, in terms of pips for today alone is 155.5 pips. As of now, market is having breather. If the momentum stays and sellers coming in with their commitment. Will go for another.

I won't be closing my books anytime soon. Might stretch it all till Christmas. 2011, will be the longest year that I keep my books open.

Trade safely everyone.

Euro Falls Below $1.30 as Italy Yields Rise

2011-12-15T02:30:00.000+08:00

The euro fell below $1.30 for the first time since January as signs of increased funding stress in Europe damped investor appetite for the shared currency.

The 17-nation euro declined to a 10-week low against the yen as Italian borrowing costs increased at a debt auction and Spanish banks’ borrowings from the European Central Bank climbed by the most in a year. Norway’s krone weakened after the Norges Bank cut interest rates for the first time since 2009. The pound was the biggest gainer against the euro among the major currencies as investors sought protection from the crisis.

“There is a major funding issue,” Jens Nordvig, a managing director of currency research in New York at Nomura Holdings Inc., said today in a “Bloomberg on the Economy” radio interview with Sara Eisen. “The few measures that were taken on the fiscal side were very long-term measures that really didn’t provide any comfort for the short-term liquidity issue. That’s why the news has seen the euro significantly lower.”

The euro slipped 0.5 percent to $1.2972 at 11:56 a.m. New York time, after depreciating to $1.2946, the weakest level since Jan. 11. The shared currency dropped 0.4 percent to 101.32 yen after sliding to 101.10, the lowest since Oct. 4. The dollar rose 0.1 percent to 78.08 yen.

The Standard & Poor’s 500 Index (SPX) fell 1.2 percent and the Thomson Reuters/Jefferies CRB Index of raw materials slid 3 percent.

Global Economic Calendar (15-December-2011)

2011-12-15T02:26:00.000+08:00

Global Economic Calendar for 15th December 2011

**Time is with respect to Singapore Time (GMT+8:00)

Dollar Extends Gain After Federal Reserve Keeps Low Interest Rates Pledge

2011-12-14T04:09:00.000+08:00

The dollar extended gains after the Federal Reserve took no additional monetary policy steps to stimulate the economy.

The U.S. currency rose for a second day as policy makers led by Chairman Ben S. Bernanke repeated their pledge to keep interest rates low through mid-2013, while refraining from taking new actions to lower borrowing costs. The euro fell to an 11-month low against the dollar on concern European leaders won’t agree on ways to expand the region’s rescue capacities as debt-strapped nations struggle to fund their deficits.

“There was no indication of QE3,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp., the world’s largest custodial bank, with more than $26 trillion in assets under administration, referring to the Fed’s policy of asset purchases, known as quantitative easing, or QE. “It led to some modest firming of the U.S. dollar against the majors like the euro.”

The dollar gained 1 percent to $1.3062 at 2:26 p.m. in New York, touching $1.3048, the strongest level since Jan. 12. The shared currency dropped 0.9 percent to 101.81 yen, touching the lowest since Oct. 6. The dollar fell 0.1 percent to 77.94 yen.

Global Economic Calendar (14-December-2011)

2011-12-14T02:55:00.000+08:00

Global Economic Calendar for 14th December 2011

**Time is with respect to Singapore Time (GMT+8:00)

Just sharing.....

2011-12-08T02:06:00.002+08:00

From FXCM dealing desk, as of 2:00am (Singapore Time)

Euro Weakens Amid Concern Region’s Leaders May Fail in Debt Crisis Fix

2011-12-08T02:03:00.000+08:00

The euro declined against most of its major counterparts as concern increased that European leaders will struggle to agree to measures needed to stem the region’s debt crisis at a summit this week.

The 17-nation currency traded little changed against the dollar as three euro-area officials said that the European Central Bank may announce a range of measures tomorrow to stimulate bank lending. European leaders gather for a summit in Brussels the next two days. Australia’s dollar rose after gross domestic product grew faster than economists forecast last quarter.

“You have a lot of uncertainty in the market before the meetings,” said Fabian Eliasson, head of U.S. currency sales at Mizuho Financial Group Inc. in New York. “It really comes down to the next two days. The market has high expectations for this and if the market is disappointed you could see risk being taken off and really strong moves.”

The euro was little changed at $1.3409 at 12:34 p.m. in New York, after rising as much as 0.4 percent. It traded at 104.13 yen. The Japanese currency was little changed at 77.66 per dollar.

Global Economic Calendar (08-December-2011)

2011-12-08T01:58:00.000+08:00

Global Economic Calendar for 8th December 2011

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (07-December-2011)

2011-12-07T02:38:00.000+08:00

Global Economic Calendar for 7th December 2011

**Time is with respect to Singapore Time (GMT+8:00)

EU Revamp Pushed as S&P Issues Warning

2011-12-06T12:51:00.000+08:00

German Chancellor Angela Merkel and French President Nicolas Sarkozy strengthened their push for new rules to tighten euro area economic cooperation after Standard & Poor’s said it may downgrade credit ratings across the region.

The leaders of Europe’s two biggest economies responded in a joint statement late yesterday that they “took note” of the move by S&P, while both countries “reinforce their conviction” that common proposals for closer fiscal union in the European Union will “strengthen coordination of budget and economic policy,” and promote stability and growth.

“The actions of the last three years have shown that the euro zone governments are not prepared to act collectively in a way that convinces markets,” said Paul Donovan, deputy head of global economics at UBS AG in London. The S&P move “may perhaps heighten the desirability of coming out with a compelling solution for the French and the Germans.”

Germany and France risk losing their AAA credit ratings in a review of 15 euro nations for possible downgrade, S&P said. At an earlier meeting in Paris, Merkel and Sarkozy said both countries were aligned on backing automatic penalties for deficit violators and locking limits on debt into euro states’ constitutions. Investors say such moves might pave the way for the European Central Bank to do more to fight the debt crisis.

Euro Strengthens Before This Week’s European Summit

2011-12-05T21:38:00.000+08:00

The euro advanced, extending last week’s gains versus the dollar and yen, as Italy’s cabinet approved a plan to cut its deficit before a European summit on the region’s sovereign debt crisis.

The 17-nation currency appreciated against most of its 16 major counterparts after people familiar with the negotiations said a proposal to channel European Central Bank loans through the International Monetary Fund may deliver as much as 200 billion euros ($269 billion) to fight the crisis. The yen and dollar weakened as European stocks gained, damping demand for safer investments. The Swiss franc fell for a fourth consecutive day against the euro.

“The euro is benefiting from a general bid for risk,” said Adam Cole, global head of foreign-exchange strategy at RBC Europe Ltd. in London. “The news from Italy helped with the positively received budget package and austerity measures. The euro feels slightly better bid today.”

The euro rose 0.4 percent to $1.3441 at 7:12 a.m. New York time after gaining 1.2 percent last week. The 17-nation currency climbed 0.4 percent to 104.88 yen. The dollar was little changed at 78.02 yen.

German Chancellor Angela Merkel is scheduled to meet French President Nicolas Sarkozy to work on a plan for stricter enforcement of the region’s deficit rules. European Union leaders will hold a summit in Brussels this week.

Global Economic Calendar (06-December-2011)

2011-12-05T21:33:00.000+08:00

Global Economic Calendar for 6th December 2011

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (05-December-2011)

2011-12-04T19:43:00.002+08:00

Global Economic Calendar for 5th December 2011

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (01-December-2011)

2011-11-30T21:43:00.000+08:00

Global Economic Calendar for 1st December 2011

**Time is with respect to Singapore Time (GMT+8:00)

U.S. Rating Outlook Cut to Negative by Fitch

2011-11-29T21:41:00.000+08:00

The U.S. lost its last stable outlook from the three biggest credit-ranking companies after Fitch Ratings lowered the nation to negative following a congressional committee’s failure to agree on deficit cuts.

Fitch’s outlook on the U.S., which it still assigns its top AAA grade, reflects “declining confidence that timely fiscal measures necessary to place U.S. public finances on a sustainable path will be forthcoming,” making the probability of a downgrade greater than 50 percent over two years, the company said yesterday in a statement. Standard & Poor’s and Moody’s Investors Service said Nov. 21 that the so-called supercommittee’s inability to reach an agreement didn’t merit downgrades because the inaction will trigger $1.2 trillion in automatic spending cuts.

U.S. government debt rallied the most since the end of 2008 after Standard & Poor’s stripped the U.S. of its AAA ranking on Aug. 5, while global equities lost $9.7 trillion in market value during that period. Even with lawmakers reluctant to embrace the automatic cutbacks that helped prevent downgrades, President Barack Obama has pledged to veto any efforts to undermine the spending reductions.

“There’s a much broader recognition out there that you can’t just cut discretionary spending, you have to actually cut into the meat and bone of the programs driving the deficit,” Noel Hebert, a credit strategist at Mitsubishi UFJ Securities USA Inc. in New York, said yesterday in a telephone interview. Fitch is “catching up to the dysfunction that’s been widely perceived by the American electorate for the last decade.”

Global Economic Calendar (30-November-2011)

2011-11-29T21:34:00.000+08:00

Global Economic Calendar for 30th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Intervention No Barrier as Euro Loses to Surplus Currencies Most Since ’03

2011-11-28T20:23:00.000+08:00

For the first time since at least 2003, investors are fleeing the euro for currencies of countries that don’t depend on international capital markets to finance their budget deficits.

The franc rose 7.3 percent and the yen 4.6 percent in the past 12 months, the biggest gains as measured by Bloomberg Correlation-Weighted Indexes, even as the Swiss and Japanese central banks intervened to weaken their currencies. The euro was little changed versus the dollar in the period as the European Central Bank cut interest rates and lenders in the region brought funds home to meet new capital requirements.

Investor concern the euro is at risk is mounting as bond yields in the 17-nation bloc rise to records, costs to insure its members against default jump and ECB President Mario Draghi says providing a more powerful backstop for governments is outside his authority. Traders are favoring currencies of markets that don’t need foreign capital such as Norway’s krone as banks hoard cash amid the most expensive financing rates in more than three years.

“We’ve had a preference for the Scandinavian currencies, particularly the krone, because Norway has got the current account surplus, it’s soundly managed and it’s not an indebted country,” Frances Hudson, who helps manage about $232 billion as a global strategist at Standard Life Investments in Edinburgh, said in a telephone interview on Nov. 24. “The ECB is going to be loosening its policy, which should take away some of the support for the euro.”

Global Economic Calendar (29-Nov-2011)

2011-11-28T20:20:00.000+08:00

Global Economic Calendar for 29th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (28-Nov-2011)

2011-11-27T20:00:00.000+08:00

Global Economic Calendar for 28th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Erases Earlier Gain Versus Dollar; Trades Little Changed at $1.3335

2011-11-24T22:47:00.000+08:00

The euro erased its gain against the dollar to trade little changed at $1.3335 at 1:50 p.m. London time. Earlier it advanced as much as 0.5 percent to $1.3412.

Global Economic Calendar (25-November-2011)

2011-11-24T22:41:00.000+08:00

Global Economic Calendar for 25th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Weakens as Reports Signal Region’s Debt Crisis Is Weighing on Growth

2011-11-23T21:58:00.000+08:00

The euro fell to a six-week low against the dollar as reports added to signs that Europe’s economic growth is stagnating and Germany received insufficient bids at a debt auction.

The dollar rose against all of 16 its most-traded peers as a gauge of European services and manufacturing output shrank for a third month and a preliminary report showed China’s manufacturing by the most in almost three years. Sweden’s krona declined as central bank Deputy Governor Barbro Wickman-Parak said policy makers may cut interest rates if Europe’s debt crisis persists.

“The German bunds auction was pretty bad -- it clearly shows that euro-dollar was so far supported by the fact that bunds are a safe haven,” said Lutz Karpowitz, a senior currency strategist at Commerzbank AG in Frankfurt, in a telephone interview. “We expect a recession for the euro zone next year. Risk aversion is high.”

Europe’s shared currency dropped 0.8 percent to $1.3402 at 8:41 a.m. New York time, after sliding earlier to $1.3372, the least since Oct. 10. The euro fell 0.5 percent to 103.46 yen. The dollar was 0.3 percent higher at 77.20 yen.

Karpowitz said he expects the 17-nation currency to weaken to $1.32 by year-end.

Futures on the Standard and Poor’s 500 Index were 0.7 percent lower. Yields on 10-year Treasuries reached fell to as low as 1.88 percent, the least since Oct. 6, before increasing to 1.93 percent.

Global Economic Calendar (24-November-2011)

2011-11-23T21:53:00.000+08:00

Global Economic Calendar for 24th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Pound Weakens for Third Day Against Euro on Outlook for Additional Easing

2011-11-22T22:25:00.000+08:00

The pound weakened for a third day against the euro on speculation U.K. central-bank minutes tomorrow will signal policy makers are leaning toward further monetary stimulus as growth slows.

Sterling dropped to a three-week low versus the shared currency even after a report showed Britain’s budget deficit narrowed in October as Chancellor of the Exchequer George Osborne slashed government spending. Prime Minister David Cameron said yesterday Britain is “well behind” where it needs to be on economic growth. The Debt Management Office sold 3.5 billion pounds ($5.5 billion) of index-linked gilts.

“The weakness against the euro reflects clearly what’s going on with sterling,” said Jane Foley, a senior currency strategist at Rabobank International in London. “Cameron admitted yesterday that the debt-reduction strategy is off track. Widespread downward revisions in the U.K. growth forecast imply that reduction targets will be harder to meet.”

The pound declined 0.3 percent to 86.53 pence per euro at 12:47 p.m. London time, after falling to 86.60 pence, the weakest level since Oct. 31. Sterling was little changed at $1.5652 and 120.33 yen.

The U.K.’s net borrowing excluding support for banks fell to 6.5 billion pounds from 7.7 billion pounds a year earlier, the Office for National Statistics said in London. Outlays at government departments dropped 3.1 percent.

The Bank of England kept its target for asset purchases unchanged at its policy meeting on Nov. 10. The nine-member Monetary Policy Committee led by Governor Mervyn King held the ceiling for so-called quantitative easing at 275 billion pounds, after expanding QE by 75 billion pounds in October.

Global Economic Calendar (23-November-2011)

2011-11-22T22:18:00.000+08:00

Global Economic Calendar for 23rd November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Yen, Dollar Advance on Haven Demand as Prospects Fade for U.S. Debt Accord

2011-11-21T20:43:00.000+08:00

The yen and dollar strengthened as a Democratic Party aide said a U.S. congressional committee is likely to announce it failed to agree on deficit cuts, boosting demand for safer assets.

The euro extended last week’s loss against the yen, the biggest since September, after Spain’s Socialists became the fifth European government to be ejected amid the region’s debt crisis in elections over the weekend. The pound fell as a report showed U.K. home sellers cut asking prices by the most in a year this month, adding to signs the U.K. economic outlook is worsening. The Australian dollar declined to a five-week low against its U.S. counterpart.

“When you get these kind of moves in all the risk proxies and dollar-yen doesn’t do anything, that’s a fairly clear picture of there being general risk aversion,” said Adam Cole, global head of foreign-exchange strategy in London at Royal Bank of Canada’s RBC Capital Markets unit. The deficit talks are “hitting risk aversion generally. Even though the U.S. is the epicenter of this particular issue, its currency still trades as a safe haven,” he said.

The yen strengthened 0.5 percent to 103.50 per euro at 10:27 a.m. London time, adding to last week’s 2 percent gain. Japan’s currency was little changed at 76.92 against the dollar. The U.S. currency strengthened 0.6 percent to $1.3451 per euro.

The Stoxx Europe 600 Index of shares slipped for a third day, losing 2.1 percent while the Standard & Poor’s 500 Index of stock futures lost 1.5 percent. The MSCI Asia Pacific Index fell 1.3 percent.

Global Economic Calendar (22-November-2011)

2011-11-21T20:41:00.002+08:00

Global Economic Calendar for 22nd November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Ackermann Says Europe Needs Crisis ‘Firewall’

2011-11-20T21:33:00.000+08:00

Deutsche Bank AG (DBK) Chief Executive Officer Josef Ackermann said Europe needs a “firewall” to prevent spillover from its debt crisis and should increase the size of its rescue fund.

“We need the firewall to cope with the spillover effect, if it occurs,” Ackermann, who also chairs the Institute of International Finance, said at a conference held by the Asian Development Bank and the Institute for Global Economics in Seoul today. “The stability facility should be increased.”

The failure of European leaders to end the debt crisis with their broadest effort yet has revived a Franco-German dispute over the European Central Bank’s role and fueled investor concerns over policy makers’ economic impotence. German Chancellor Angela Merkel has rejected French calls to deploy the ECB as a crisis backstop.

French Finance Minister Francois Baroin said in a speech in Paris on Nov. 16 that “the best way to avoid contagion is to have a solid firewall” by using central bank support for Europe’s 440 billion-euro ($595 billion) rescue fund. The European Financial Stability Facility should be increased to 1 trillion to 2 trillion euros, Ackermann said today, without explaining what he meant by “firewall.”

Banks represented by the IIF reached an agreement on Oct. 26 in Brussels with European leaders to accept a 50 percent writedown in the face value of Greek government bond holdings as part of wider measures to tackle the sovereign-debt crisis. The Greek deal was part of a European plan to cut the country’s debt load, recapitalize banks and boost the region’s rescue fund to 1 trillion euros.

Global Economic Calendar (21-November-2011)

2011-11-20T21:28:00.002+08:00

Global Economic Calendar for 21st November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (18-November-2011)

2011-11-18T02:30:00.002+08:00

Global Economic Calendar for 18th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Weakens Amid Speculation ECB Will Buy More European Government Debt

2011-11-17T02:25:00.000+08:00

The euro fell to a five-week low versus the yen amid concern the European Central Bank will have to buy more debt from European governments as confidence wanes in the region’s ability to deal with its sovereign-debt crisis.

The 17-nation currency slid for a third day against the dollar as Spain planned to auction up to 4 billion euros ($5.4 billion) of bonds tomorrow, the same day France will sell as much as 8.2 billion euros of debt. The extra yield investors demand to hold euro-area bonds instead of German bunds was at almost euro-era highs. Italy’s largest bank, UniCredit SpA, prepared to ask the ECB to broaden the collateral it accepts.

“The market is very much on tenterhooks about the European auctions,” said Boris Schlossberg, director of research at the online currency trader GFT Forex in New York. “If the French debt comes out and goes badly, that will really send a signal that contagion has spread to and infected the core.”

The euro declined 0.3 percent to 104.04 yen at 12:31 p.m. New York time. It touched 103.41 yen, the weakest level since Oct. 10. The shared currency fell 0.3 percent to $1.3504, after dropping earlier to $1.3429, also the least since Oct. 10. Japan’s currency was little changed at 77.03 versus the dollar.

The euro’s decline will find support levels, or areas on a chart where buy orders may be clustered, at $1.3404 and $1.3382, according to MacNeil Curry, head of foreign-exchange and interest-rates technical strategy at Bank America Corp. in New York. A break above $1.3557 is needed to indicate stabilization, Curry wrote to clients today.

The shared currency slid 1.4 percent over the past six months versus nine developed-nation peers tracked by Bloomberg Correlation-Weighted Indexes. The yen gained 7.3 percent and the dollar rose 3.5 percent, the best performers.

Global Economic Calendar (17-November-2011)

2011-11-17T02:21:00.002+08:00

Global Economic Calendar for 17th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Slides as Borrowing Costs Surge at Debt Auctions

2011-11-15T22:52:00.000+08:00

The euro dropped to a one-month low against the yen as European bond yields surged at auctions and Mario Monti, Italy’s premier-in-waiting, faced resistance to forming a Cabinet.

The 17-nation currency fell for a second day against the dollar as Italy’s 10-year yield surpassed the 7 percent threshold that prompted other European nations to seek bailouts. The dollar and yen rose against most of their major counterparts as German investor confidence fell to a three-year low, encouraging demand for a refuge.

“Sentiment is still bearish” toward the euro, said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in London. “We are seeing a continuing offloading of peripheral positions,” he said, referring to the bonds of nations such as Italy and Spain.

The euro depreciated 0.7 percent to 104.31 yen at 8:34 a.m. New York time, after dropping to 103.98 yen, the lowest level since Oct. 10. The shared currency slid 0.7 percent to $1.3544 following a drop of 0.9 percent yesterday. The yen was little changed at 77.04 versus the dollar.

The yen rallied against all 16 of its major counterparts tracked by Bloomberg and the dollar rose as futures of the Standard & Poor’s 500 Index sank 0.6 percent. Yields on 10-year Treasuries fell to 2.02 percent.

Global Economic Calendar (16-November-2011)

2011-11-15T22:46:00.000+08:00

Global Economic Calendar for 16th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Canada’s Dollar Declines as Crude Oil Falls on European Debt Concern

2011-11-15T02:34:00.000+08:00

Canada’s dollar fell for the first time in three days against its U.S. counterpart on concern European nations may have difficulty repaying their debt, discouraging demand for higher-yielding assets.

The Canadian currency dropped against half of its 16 most- traded peers as crude oil fell. The Canadian dollar is underperforming today after rising versus its commodity-related peers such as the Australian dollar earlier this month.

“The focus will remain in Europe,” said Camilla Sutton, chief currency strategist at Bank of Nova Scotia’s Scotia Capital unit in Toronto, in an e-mail message. “The sovereign crisis appears to be entering a more dangerous stage. The Canadian dollar seems to have borne the brunt today.”

Canada’s currency depreciated 0.8 percent to C$1.0181 per U.S. dollar at 10:17 a.m. in Toronto. One Canadian dollar buys 98.22 U.S. cents.

The Canadian dollar fell as Italian borrowing costs increased at a five-year note sale today. Italy sold the securities at a yield of 6.29 percent, up from 5.32 percent at the previous auction and the highest since June 1997. Mario Monti sought to form a new government in Italy to restore investor confidence in public finances.

The loonie, as the Canadian currency is known, gained 1.4 percent against the Australian dollar in November, third most after the Swiss franc at 1.6 percent and New Zealand dollar at 1.7 percent.

The Standard & Poor’s 500 Index decreased 0.5 percent. Futures on crude oil, Canada’s biggest export, fell 0.8 percent to $98.017 a barrel.

Government bonds were little changed. The benchmark 10-year yield held steady at 2.13 percent after falling three basis points last week. The price of the 3.25 percent security maturing in June 2021 fell 3 cents to C$109.65.

Canada’s sovereign debt has returned 8.1 percent in 2011, compared with 8.6 percent for U.S. Treasuries, according to Bank of America Merrill Lynch data.

Global Economic Calendar (15-November-2011)

2011-11-15T02:27:00.002+08:00

Global Economic Calendar for 15th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

FNP Squawk Box (11-Nov-2011)

2011-11-11T04:03:00.001+08:00

Guys, whatever S&P said or clarifies about the French rating, I am still not comfortable going on long with EUR/USD. Based on the daily chart, I have not been on long position EUR/USD for the longest time. It has been a one-sided affair between us.

Even for today (10-Nov-2011), as of now, it is seemed to be an up close day but I made away with a short position I held since late last night and right now, I am holding another short position opened about 3:29am (Singapore Time).

There are still a lot of issues going on with the Europeans and the charts are going in line with their problems. Hence, on my end of the desk, will be ignoring any possible long positions unless the chart states otherwise, probably near term retracement. Price action is still below 200 week moving average.

EUR/USD and EUR crosses are definitely on our watch but we are not going cowboy on this one just yet. Wait a little longer guys...

Euro Gains After S&P Clarifies France’s Rating

2011-11-11T03:35:00.000+08:00

The euro advanced from a one-month low versus the dollar after Standard & Poor’s clarified that France’s credit rating remains AAA, easing concern that a crisis was imminent in the region’s second-largest economy.

The 17-nation currency advanced earlier versus most major peers after Italy drew double the bids for the amount on offer at a bill sale, damping bets the nation will face a challenge funding itself. Greece chose an interim prime minister. Higher- yielding currencies including Brazil’s real and Norway’s krone rose against the dollar as U.S. stocks advanced.

“There were heavy rumors related to a French downgrade, but now they’ve been denied,” said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in London. “It’s part of a wider stabilization in risk, but we still have a tremendous amount of uncertainty in the system.”

The euro gained 0.7 percent to $1.3633 at 1:31 p.m. New York time, after rising earlier as much as 0.8 percent and falling to as low as $1.3484, the weakest level since Oct. 10. It rose 0.4 percent to 105.78 yen after falling earlier to 104.73 yen, the lowest since Oct. 12. The yen strengthened 0.3 percent to 77.601 per dollar.

The S&P 500 Index of stocks rose 1.2 percent.

Europe’s shared currency rallied from little-changed as S&P said a message was erroneously sent today to some of its subscribers suggesting France’s top-notch credit rating had been lowered. It affirmed the country’s AAA rating.

Global Economic Calendar (11-November-2011)

2011-11-11T03:19:00.002+08:00

Global Economic Calendar for 11th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Tumbles to Four-Week Low Versus Dollar on Italian Turmoil

2011-11-10T02:44:00.001+08:00

The euro slid to a four-week low versus the dollar as Italian bond yields climbed to euro-era records after a firm raised the deposits it demands for clearing the nation’s securities, intensifying Europe’s debt crisis.

The shared currency fell to a two-week low versus the yen on concern Italy will join Greece in struggling to form a new regime strong enough to implement austerity measures. The dollar rose as U.S. 10-year note yields declined the most in a week as demand for refuge surged. South Africa’s rand tumbled after Moody’s Investors Service lowered its outlook on the nation’s sovereign debt rating. Stocks plunged.

“The main driver was the move up in Italian yields, and that created a broad-based sentiment of risk aversion through the market, and that sent equities lower and the dollar higher across the board,” said Matthew Perrier, Toronto-based director of foreign exchange at Bank of Montreal.

The euro slumped 1.8 percent to $1.3589 at 12:26 p.m. New York time and touched $1.3553, its lowest level since Oct. 10. It weakened 1.7 percent to 105.70 yen and touched 105.32, the least since Oct. 26. The yen was little changed at 77.76 per dollar after earlier touching 77.54, its strongest level since Oct. 31, when it set a post-World War II record of 75.35.

“The euro may find a little bit of support in the mid- $1.35s, but it depends how far the market wants to push it and whether or not we see any concrete news out of Europe to try to stem this,” Perrier said.

Global Economic Calendar (10-November-2011)

2011-11-10T02:38:00.002+08:00

Global Economic Calendar for 10th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Gains on Announcement Berlusconi to Quit After Austerity Plan Passes

2011-11-09T04:01:00.000+08:00

The euro advanced against the dollar after Italian President Giorgio Napolitano said Prime Minister Silvio Berlusconi agreed to resign after the parliament approves the country’s austerity plans.

The 17-nation currency earlier traded little changed after Berlusconi won a vote in parliament without an absolute majority, fueling calls for him to quit and concern about who will lead the nation out of its debt crisis. The yen appreciated to its strongest level against the dollar since Japan intervened Oct. 31 to stem its rise.

“From the market’s perspective, they would like to see a technocrat government because that is what most likely to please the troika and manage Italy through the next through few months,” said Greg Anderson, a senior currency strategist at Citigroup Inc. in New York. The troika comprises the European Union, European Central Bank and International Monetary Fund.

The euro gained 0.4 percent to $1.3835 at 2:32 p.m. New York time, after falling earlier to as low as $1.3725. It was little changed at 107.47 yen after paring losses of as much as 0.4 percent. The Japanese currency rose 0.5 percent to 77.68 per dollar and touched 77.60.

The yen reached a post-World War II high of 75.35 to the greenback on Oct. 31, threatening exporters, and the Bank of Japan sold the currency to weaken it.

The South African rand climbed as gold futures topped $1,800 an ounce for the first time in seven weeks. The franc rose versus the euro as Swiss National Bank Vice President Thomas Jordan said the SNB is not weakening it to gain export advantage.

Global Economic Calendar (09-November-2011)

2011-11-09T02:34:00.000+08:00

Global Economic Calendar for 9th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (08-November-2011)

2011-11-08T03:27:00.000+08:00

Global Economic Calendar for 8th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Yen Intervention Losing Momentum

2011-11-07T12:15:00.000+08:00

Foreign-exchange traders are gearing up to test Jun Azumi’s resolve to keep intervening in currency markets to weaken the yen from its postwar high.

While Japan’s Finance Minister directed the central bank on Oct. 31 to sell what analysts estimate was about 8 trillion yen ($102 billion), sending it down as much as 4.7 percent against the dollar, the move failed to increase volatility. Traders avoid currencies with rising price swings because they boost the odds of sudden losses.

“The yen remains one of our favorite currencies as Japan still has a strong trade surplus and benefits from the global risk aversion that we’re seeing,” Vimal Gor, the Sydney-based head of income and fixed interest at BT Investment Management Ltd., where he oversees the equivalent of $13 billion, said on Nov. 3. “Unilateral interventions in the Japanese currency have no real lasting impact. If anything we’d view this as a buying opportunity.”

Azumi, who took office in September when predecessor Yoshihiko Noda became prime minister, is under pressure to weaken the yen after traders seeking a haven from turbulence in global financial markets pushed it up as much as 21 percent between April and October against a basket of nine developed- nation peers tracked by Bloomberg Correlation-Weighted Currency Indexes.

Global Economic Calendar (07-Nov-2011)

2011-11-07T02:39:00.000+08:00

Global Economic Calendar for 7th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Selamat Hari Raya Aidiladha 2011.

2011-11-05T23:54:00.001+08:00

Forexnewspaper.blogspot.com wishes all our Muslims readers, trading group members, supporters and all Muslims around the globe,

Selamat Hari Raya Aidiladha!

Global Economic Calendar (04-November-2011)

2011-11-04T02:16:00.000+08:00

Global Economic Calendar for 4th November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Fed: Growth Strengthened; ‘Downside Risks’ Remain

2011-11-03T02:33:00.000+08:00

Federal Reserve policy makers said the economy has picked up while “significant downside risks” remain, and they refrained from taking any additional steps to ease monetary policy.

“Economic growth strengthened somewhat in the third quarter, reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the year,” the Federal Open Market Committee said today in Washington after a two-day meeting. At the same time, “recent indicators point to continuing weakness in overall labor market conditions.”

The statement may reflect the desire of policy makers led by Chairman Ben S. Bernanke to see if the unconventional policy steps unveiled at their last two meetings help the expansion gain strength before embarking on new initiatives. While the economy grew last quarter at the fastest pace in a year, that is still insufficient to push down the unemployment rate, and officials have said the U.S. remains vulnerable to shocks from the European debt crisis.

Treasuries pared losses after the statement, leaving the 10-year yield at 2.00 percent at 1:26 p.m. in New York, compared with 1.99 percent late yesterday. The Standard & Poor’s 500 Index rose 0.9 percent to 1,228.66 after a report showed companies added more workers to payrolls than estimated.

Global Economic Calendar (03-November-2011)

2011-11-03T02:29:00.000+08:00

Global Economic Calendar for 3rd November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Declines Amid Renewed Greek Default Concerns

2011-11-02T02:27:00.000+08:00

The euro weakened for a third day against the dollar, touching the lowest in almost three weeks, as concern the currency region’s rescue plan will crumble and the European Central Bank will cut interest rates damped demand.

The 17-nation currency fell the most in two weeks versus the yen after Greek Prime Minister George Papandreou pledged to put the European Union’s latest accord to a referendum, risking pushing the country into default if rejected by voters. The dollar and yen strengthened as stocks slid around the world and data showed Chinese manufacturing slowed.

“The motivation for this referendum is anyone’s guess, but it definitely raises the level of uncertainty going forward,” said Brian Kim, a currency strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc. “Uncertainty is not good at this point. The dollar has been a beneficiary, since you’re seeing risk off across the board.”

The euro dropped 0.8 percent to $1.3742 at 2:16 p.m. in New York after falling 1.8 percent earlier to $1.3609, the weakest since Oct. 12. The shared currency slipped 0.6 percent to 107.66 yen, after losing as much as 1.7 percent, the biggest intraday drop since Oct. 17. The dollar rose 0.2 percent to 78.32 yen after touching 79.53 yesterday, the strongest since Aug. 4.

The euro pared losses against the dollar and yen as stocks trimmed a retreat after Dow Jones Newswires reported a Greek Socialist Party official said Papandreou’s call for a referendum is “basically dead.”

The Dollar Index, which IntercontinentalExchange Inc. uses to track the U.S. currency against those of six trading partners, gained for a third day, rising 0.8 percent to 77.090.

Global Economic Calendar (02-November-2011)

2011-11-02T02:23:00.000+08:00

Global Economic Calendar for 2nd November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Yen Slides Most in Three Years After Japan Intervenes

2011-11-01T02:31:00.000+08:00

The yen slumped the most since 2008 against the dollar as Japan stepped in to foreign-exchange markets to weaken the currency for the third time this year after its gain to a postwar record threatened exporters.

The dollar rose against all its major peers after MF Global Holdings Ltd. filed for bankruptcy after making bets on European sovereign debt, driving stocks down and boosting refuge demand. The yen fell against all of its most-traded counterparts tracked by Bloomberg after Japan’s Finance Minister Jun Azumi ordered the intervention.

“Certainly this is an extremely large intervention,” said Alan Ruskin, global head of Group-of-10 foreign-exchange strategy at Deutsche Bank AG in New York. “The effect is slowly dissipating. Is this a one-day foray?”

The yen depreciated 2.8 percent to 78 per dollar at 1:14 p.m. New York time, after touching the post-World War II high of 75.35. Japan’s currency has dropped 1.2 percent in October. The yen declined 1.3 percent to 108.62 per euro and weakened 1.8 percent to 82.63 per Australian dollar. The euro fell 1.6 percent to $1.3928, paring this month’s rally to 4.1 percent. The franc gained 0.3 percent to 1.2173 per euro.

Japan’s currency earlier today dropped more than 4 percent after the intervention. That’s the biggest decline on an intraday basis since a 6.1 percent plunge on Oct. 28, 2008, three days before the Bank of Japan cut its target lending rate.

The dollar rose 1.4 percent to 1.6953 Brazilian reais today as a drop in stocks reduced demand for high-yielding assets. The greenback increased 1.6 percent to 13.2034 Mexican pesos.

Global Economic Calendar (01-November-2011)

2011-11-01T02:25:00.002+08:00

Global Economic Calendar for 1st November 2011

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (31-October-2011)

2011-10-31T00:07:00.000+08:00

Global Economic Calendar for 31st October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Climbs to Seven-Week High on Sovereign Debt Deal; Yen Rises to Record

2011-10-28T02:41:00.000+08:00

The euro rallied to a seven-week high against the dollar after European leaders agreed to an expansion of a rescue fund for indebted nations and reached an accord with lenders on writedowns for Greek debt.

The yen rose to a record versus the dollar for the fourth time in five days day on speculation Bank of Japan measures announced today will fail to contain the currency’s rally. The South African rand and Australian dollar were the best performers against the U.S. currency after the economy expanded at the fastest pace in a year, sapping demand for a refuge.

“European leaders bought themselves several months of time at least,” said Brian Dolan, chief strategist in Bedminster, New Jersey, at FOREX.com, a unit of the online currency trading firm Gain Capital. “Even before the summit, we had a push in the euro, down in the dollar, up in all the risk currencies, higher in stocks. The bond market continued to take a pretty jaded view of all the goings on, and that has continued.”

The euro appreciated as much as 2.3 percent to $1.4220, the highest level since Sept. 6, before trading at $1.4209 at 12:26 p.m. New York time. It’s the biggest rally on an intraday basis since Oct. 10. The euro advanced 1.6 percent to 107.66 yen. The yen increased 0.5 percent to 75.77 versus the dollar after touching the post-World War II high of 75.66.

Global Economic Calendar (28-October-2011)

2011-10-28T02:37:00.000+08:00

Global Economic Calendar for 28th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Weakens During Debt Plan Summit; Yen Rises to Record Versus Dollar

2011-10-27T01:01:00.000+08:00

The euro fell versus the dollar and yen after reports that talks on bondholder losses of Greek debt were deadlocked added to concern efforts to remedy the European crisis are stalling.

The yen reached a post-World War II high versus the dollar and gained against most of its most-traded counterparts, even as Finance Minister Jun Azumi ordered staffers to be prepared to take action against the currency gains. The 17-nation euro earlier touched the strongest in more than six weeks on news Germany’s lower house of parliament voted to expand the region’s bailout. Canada’s dollar and Mexico’s peso were the best performers against the euro as U.S. durable goods orders were stronger than expected.

“The deadlocked comment isn’t good for markets, but then to counter that you have Germany saying they’ll do whatever it takes, so it’s hard to know what to believe; at the end of the day the safest trade is to be risk averse,” said Blake Jespersen, director of foreign exchange in Toronto at Bank of Montreal. “If you don’t have to be in the markets, then don’t; they are going to be choppy and illiquid for the next three to four days.”

The euro fell 0.5 percent to $1.3840 at 11:33 a.m. in New York. It also weakened 0.5 percent to 105.30 per yen. Japan’s currency was little changed at 76.09 per dollar, after strengthening to a record 75.72.

Global Economic Calendar (27-October-2011)

2011-10-27T00:58:00.000+08:00

Global Economic Calendar for 27th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Yen Rallies to Record Against Dollar

2011-10-26T02:12:00.000+08:00

The yen touched a post-World War II high against the dollar and rallied versus most of its other major counterparts as European debt turmoil spurred demand for a refuge before tomorrow’s summits.

The Canadian dollar slid for the first time in four days versus the greenback after the Bank Canada cut its outlook for growth. The dollar rose against the South African rand and Mexican peso as a drop in U.S. consumer confidence buoyed Treasuries. The yen pared its gain versus the dollar as Nikkei said the Bank of Japan will consider additional monetary easing.

“You’re seeing a general flight-to-quality, risk-off type of sentiment, and the yen is a frequent recipient of those moves,” said Carl Forcheski, a director on the corporate currency sales desk at Societe Generale SA in New York. “The market is watching the events in Europe.”

The yen rose 0.1 percent to 76 versus the dollar at 1:05 p.m. New York time after rallying to a record 75.74. Japan’s currency advanced 0.1 percent to 105.90 against the euro. The euro traded at $1.3922 after earlier rising to $1.3960, the highest level since Sept. 8.

Canada’s dollar fell 1 percent to C$1.0142 versus the U.S. currency after the Bank of Canada said the nation’s economy will grow more slowly than projected and removed a reference to withdrawing stimulus. The target lending rate was held at 1 percent, where it has been since September 2010.

Global Economic Calendar (26-October-2011)

2011-10-26T02:07:00.000+08:00

Global Economic Calendar for 26th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Wishing all Hindus, A Happy Deepavali,

2011-10-26T02:02:00.000+08:00

Wishing all Hindu friends, readers and from all over the world,

A HAPPY DEEPAVALI

Dollar Drops to Post WWII Low Against Yen

2011-10-23T20:58:00.000+08:00

The dollar dropped to a post-World War II low against the yen and fell versus most major currencies on speculation Europe is moving closer to resolving its debt crisis and the Federal Reserve may seek further monetary easing.

The euro advanced for a fourth day against the dollar, in the longest stretch of gains since July, before two European summits over the next five days. South Africa’s rand and Australia’s dollar rallied as stocks and commodities increased, boosting demand for higher-yielding assets. The dollar remained lower versus the yen as Fed Vice Chairman Janet Yellen said new purchases of securities may be appropriate.

“Clearly the dollar is weaker against the euro on speculation that there is going to be a happy ending to the debt crisis,” said Greg Salvaggio, senior vice president of capital markets at the currency trader Tempus Consulting Inc. in Washington. “There’s a risk-on feeling in the market.”

The yen appreciated 0.7 percent to 76.29 versus the dollar at 5 p.m. in New York after touching a record high 75.82. The euro rose 0.8 percent to $1.3896, extending its weekly gain to 0.1 percent. The euro rose 0.1 percent to 105.97 yen.

The dollar dropped before meetings in Europe this weekend as bets that the U.S. currency would rally dropped from the highest level in more than a year.

“There’s broad-based dollar selling,” said Robert Sinche, global head of currency strategy at Royal Bank of Scotland Group Plc in Stamford, Connecticut. “It could just be a market that’s long of dollars and short of risk and other currencies. It’s Friday, and people are uncomfortable going into the weekend with those positions.”

Global Economic Calendar (24-October-2011)

2011-10-23T20:55:00.002+08:00

Global Economic Calendar for 24th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Canada’s Dollar Rebounds on Renewed Optimism About a European Debt Accord

2011-10-21T02:44:00.000+08:00

Canada’s dollar strengthened against its U.S. counterpart on optimism that European leaders will be able to solve the region’s debt crisis next week.

German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed to ask euro-region leaders to assess a “comprehensive and ambitious” package of measures to solve the region’s debt crisis at a leaders’ summit on Oct. 23 in order to agree on the measures at a second meeting by Oct. 26 at the latest, German government spokesman Steffen Seibert said in an e-mailed statement. Stocks rose and crude oil, the nation’s largest export, pared declines amid improved sentiment for risker assets.

“Europe is the big play at the moment and everyone is focusing on that,” said Darcy Browne, managing director of capital markets trading at Canadian Imperial Bank of Commerce in Toronto. “Everything is comment-driven these days. These aren’t fundamental reasons. I don’t think anyone is strapping on any new risk here.”

Canada’s currency rose 0.6 percent to C$1.0149 per U.S. dollar at 1:59 p.m. in Toronto, after falling as much as 0.4 percent. One Canadian dollar buys 98.53 U.S. cents.

Global Economic Calendar (21-October-2011)

2011-10-21T02:36:00.000+08:00

Global Economic Calendar for 21st October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Canada Dollar Touches Almost Month’s High on European Debt Talks Optimism

2011-10-20T02:37:00.000+08:00

Canada’s dollar touched almost the strongest level this month versus its U.S. counterpart on speculation leaders of France and Germany will forge a plan in the next several days to quell the region’s debt crisis.

The Canadian currency fluctuated as crude oil prices swung between gains and losses. U.S. housing starts rose more than forecast in September adding to evidence that Canada’s largest trade partner will avoid falling back into recession.

“Part of it is optimism -- and certainly it’s optimism because there’s nothing concrete -- that you’re going to get a quicker resolution on the issues that are plaguing Europe,” said Shane Enright, executive director at Canadian Imperial Bank of Commerce’s CIBC World Markets, by phone from Toronto, referring to reasons for Canadian dollar gains.

Canada’s currency was little changed at C$1.0135 per U.S. dollar at 12:19 a.m. in Toronto. It touched C$1.0085, almost the strongest since Sept. 21. One Canadian dollar buys 98.67 U.S. cents.

Futures on crude oil dropped 0.4 percent to $87.99 a barrel in New York after gaining as much as 1.3 percent. The MSCI World Index advanced for a second day, rising 0.4 percent.

Global Economic Calendar (20-October-2011)

2011-10-20T02:32:00.000+08:00

Global Economic Calendar for 20th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Pound being pounded?

2011-10-09T20:56:00.002+08:00

Sterling declined 0.1 percent to $1.5562, and weakened 0.1 percent to 85.97 pence per euro.

Turkey’s and Russia’s central banks separately intervened in the currency market this week in an effort to prop up their currencies.

The Turkish central bank has sold $1.3 billion for liras this week and offered a further $750 million in a daily auction yesterday. The lira has dropped 16 percent against the dollar this year, making it the second-worst performer among 25 emerging-market currencies tracked by Bloomberg after South Africa’s rand.

Bank Rossii sold about $6.8 billion and 591 million euros ($796 million) of its foreign-currency reserves in September, the central bank said on its website yesterday.

The ruble dropped 0.5 percent to 32.3443 per dollar, falling for a sixth straight week. It touched 32.8935 on Oct. 4, the weakest since August 2009.

Global Economic Calendar (10-October-2011)

2011-10-09T20:45:00.000+08:00

Global Economic Calendar for 10th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Death of Euro Exaggerated Amid Political Will

2011-10-05T21:26:00.000+08:00

Investors betting against the euro- area surviving its debt crisis in one piece may be overlooking one thing: the will of politicians to hold it together.

German Chancellor Angela Merkel is intensifying her defense of the currency. French President Nicolas Sarkozy says there’s no alternative to channeling aid to Greece without risking the kind of cataclysm set off by the 2008 collapse of Lehman Brothers Holdings Inc. Greek Premier George Papandreou this week proposed 6.6 billion euros ($8.7 billion) of fresh austerity measures in a recession headed into a fourth year.

The euro is “a political project,” said Erik Nielsen, global chief economist at UniCredit Group in London. “The market may not have believed them, but leaders have repeatedly said they will do whatever it takes to keep it together.”

Keeping the 17-nation region together means politics will have to remain the glue, challenging the argument of investors including Pacific Investment Management Co. Chief Executive Officer Mohamed El-Erian. He says the euro area may need to shrink to survive. That concern is highlighted by the swelling gap between the 10-year interest rates of Germany and Italy.

In a sign investors are questioning the longevity of the euro, the spread between German and Italian benchmark bonds reached almost 400 basis points, having held below 50 basis points for most of the last decade. Four in 10 respondents to the quarterly Bloomberg Global Poll said last month they expect a nation to leave the euro within a year and a further 32 percent said a member would exit in two to five years.

Global Economic Calendar (06-October-2011)

2011-10-05T21:21:00.000+08:00

Global Economic Calendar for 6th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Lacker Says Fed’s Operation Twist Won’t Spur U.S. Employment

2011-10-04T22:59:00.000+08:00

Federal Reserve Bank of Richmond President Jeffrey Lacker said last month’s move to reduce long- term interest rates is unlikely to spur a job market hampered by uncertainty over fiscal policy and government regulation.

“I tend to think it would cause higher inflation and have only a transitory or fleeting effect on growth,” Lacker said yesterday in response to audience questions after a speech in Madison, Wisconsin.

Fed Chairman Ben S. Bernanke said last week the U.S. is facing “a national crisis” with the jobless rate at around 9 percent since April 2009. The European debt crisis, political haggling in the U.S. and a plunge in stock prices have prompted a drop in consumer and business confidence that may hurt spending and hiring. Bernanke is scheduled to testify today to a congressional panel about the economic outlook.

Policy makers voted Sept. 21 to push down mortgage and other loan rates in bid to spur growth and employment. The Fed plans to do so by extending maturities of the Treasuries in its portfolio, buying $400 billion of long-term debt and selling an equal amount of shorter-term securities.

“There are impediments to growth that somewhat lower longer-term interest rates would not be the antidote for,” Lacker said of the policy, known as Operation Twist. “Our role is fairly limited in terms of increasing growth.”

Global Economic Calendar (05-October-2011)

2011-10-04T21:54:00.000+08:00

Global Economic Calendar for 5th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Euro Drops to 8-Month Low as Finance Ministers Meet on Funds

2011-10-03T22:08:00.000+08:00

The euro fell to an eight-month low against the dollar as European finance ministers weighed the threat of a default in Greece, which is making fresh budget cuts to secure an international bailout.

The 17-nation currency slid after weakening in the third quarter the most since June 2010. The yen rose against the dollar on demand for a refuge as sentiment at Japan’s biggest manufacturers remained below levels seen before a record earthquake struck in March. The pound sank against its major counterparts even as manufacturing unexpectedly increased.

“The key question will be whether Greece has done enough to secure the next tranche of its bailout fund,” said Jane Foley, a senior currency strategist at Rabobank International in London. “The concern about the euro-zone crisis, layered on top of poor growth expectations, weighs on the euro.”

The euro depreciated 0.6 percent to $1.3311 per dollar at 8:52 a.m. in New York, from $1.3387 on Sept. 30, after declining to $1.3310, its lowest level since Jan. 18. The euro decreased 0.8 percent to 102.28 yen, from 103.12. The dollar slid 0.3 percent to 76.84 yen.

The seven-day relative strength index for the euro fell to 25.8, staying below the 30 level for the second consecutive day. A reading below 30 indicates an asset’s price may have fallen too fast and may be due for a rebound.

Global Economic Calendar (04-October-2011)

2011-10-03T22:04:00.002+08:00

Global Economic Calendar for 4th October 2011

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (03-October-2011)

2011-10-02T20:32:00.000+08:00

Global Economic Calendar for 3rd October 2011

**Time is with respect to Singapore Time (GMT+8:00)