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

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

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)

Global Economic Calendar for 21st December 2011

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

Dollar Falls as Stronger Economic Data

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)

Global Economic Calendar for 16th December 2011

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

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

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

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)

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

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)

Global Economic Calendar for 14th December 2011

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

Just sharing.....

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

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

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)

Global Economic Calendar for 8th December 2011

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

Global Economic Calendar (07-December-2011)

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

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

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)

Global Economic Calendar for 6th December 2011

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

Global Economic Calendar (05-December-2011)

Global Economic Calendar for 5th December 2011

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

Global Economic Calendar (01-December-2011)

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

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)

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

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)

Global Economic Calendar for 29th November 2011

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

Global Economic Calendar (28-Nov-2011)

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

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)

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

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)

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

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)

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

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)

Global Economic Calendar for 22nd November 2011

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

Ackermann Says Europe Needs Crisis ‘Firewall’

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)

Global Economic Calendar for 21st November 2011

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

Global Economic Calendar (18-November-2011)

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

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)

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

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)

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

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)

Global Economic Calendar for 15th November 2011

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

FNP Squawk Box (11-Nov-2011)

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

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)

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

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)

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

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)

Global Economic Calendar for 9th November 2011

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

Global Economic Calendar (08-November-2011)

Global Economic Calendar for 8th November 2011

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