Selamat Hari Raya Aidilfitri.

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Selamat Hari Raya Aidilfitri (Muslim year 1432)

Global Economic Calendar (28-Aug-2011)

Global Economic Calendar for 29th August 2011

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

Dollar Declines as U.S. Durable Goods Orders Increase More Than Forecast

The Swiss franc gained versus all of its most-traded counterparts as concern the euro-area debt crisis is getting worse and the U.S. economy may falter boosted demand for a refuge.

The dollar slipped versus a basket of major U.S. trading partners as U.S. durable-goods orders rose more than forecast, briefly spurring risk appetite. The euro fell against the franc as German business confidence dropped to the lowest in more than a year. The yen rose toward a postwar high versus the dollar as Finance Minister Yoshihiko Noda announced a $100 billion effort to help businesses cope with strength in the currency, reducing speculation Japan will intervene to curb gains.

“If you look at where to put your safe-haven flows, there really isn’t any place better than the Swiss franc,” said Elizabeth Gregory, market strategist at Swissquote Bank SA in Geneva.

The Swiss franc appreciated 0.4 percent to 78.93 centimes versus the greenback at 9:14 a.m. in New York, from 79.23 yesterday. The currency advanced for the first time in three days against the euro, gaining 0.4 percent to 1.1399. The yen appreciated 0.2 percent to 76.52 per dollar.

The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against six counterparts, slipped 0.1 percent.

Standard & Poor’s 500 Index futures fell 0.2 percent after stocks rallied yesterday. Gold traded at almost a record high before Federal Reserve Chairman Ben S. Bernanke speaks at an economic conference in Jackson Hole, Wyoming, on Aug. 26 amid speculation the central bank will undertake additional stimulus that may debase the currency.

“The markets are focused on Bernanke’s speech,” said Junichi Ishikawa, a market analyst at IG Markets Securities Ltd. in Tokyo. “Monetary easing by the Fed will lower U.S. yields, and that will put the dollar under downward pressure broadly.”

Global Economic Calendar (25-Aug-2011)

Global Economic Calendar for 25th August 2011

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

Dollar, Swiss Franc Fall Versus Peers After Factory Data Exceed Forecasts

The dollar and Swiss franc weakened against most of their major counterparts after reports showed manufacturing from China to Europe exceeded economists’ forecasts, reducing demand for safer assets.

The euro trimmed gains versus the dollar as European stocks pared increases. New Zealand’s dollar rose the most versus the greenback amid speculation Federal Reserve Chairman Ben S. Bernanke may signal this week further steps to boost the U.S. economy. The yen rose versus the dollar even after Japan’s Finance Minister Yoshihiko Noda fueled speculation officials will act to curb the yen’s appreciation.

“It’s general broad-based dollar weakness,” said Kathy Lien, director of currency research at the online trading firm GFT Forex in New York. “We have economic data from China and Europe that was not as bad as people were expecting. The hope for more action from the Fed is raising risk appetite.”

The dollar weakened 0.2 percent to $1.4393 per euro at 10:02 a.m. in New York, and declined 0.2 percent to 76.63 yen. New Zealand’s currency climbed 1 percent to 83.21 U.S. cents. The euro was little changed at 110.20 yen. The dollar fell 0.1 percent to 78.92 Swiss centimes.

The Stoxx Europe 600 Index was little changed after rising as much as 2.2 percent as the better-than-estimated factory data helped ease concerns the global economy is slowing and investors awaited a speech by Bernanke on Aug. 26 in Jackson Hole, Wyoming. The Standard & Poor’s 500 Index rose 0.6 percent.

Global Economic Calendar (24-Aug-2011)

Global Economic Calendar for 24th August 2011

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

Yen, Franc Weaken Amid Speculation Japan, Switzerland Ready to Intervene

The yen weakened from near its postwar record against the dollar and the Swiss franc fell amid speculation policy makers in both countries will seek to curb gains in their currencies that are hurting exporters.

The yen dropped the most in two weeks after Japan’s Finance Minister Yoshihiko Noda said he’s ready to take decisive steps after the currency strengthened to 75.95 against the greenback on Aug. 19. Most Swiss support intervention by the Swiss National Bank to curb gains in the franc, SonntagsZeitung reported yesterday, citing a survey. The euro rose for a second day against the dollar as European stocks advanced.

“One of the big drivers for these two currencies has been the heightened speculation of imminent intervention by the Japanese and Swiss authorities,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. The yen “probably has the most potential for upside out of the two currencies. The biggest risk to that would be another bout of coordinated, multilateral intervention to weaken the yen.”

The yen fell as much as 0.9 percent to 77.21 per dollar before trading 0.3 percent weaker at 76.81 as of 7:02 a.m. in New York. That was the biggest decline since Aug. 4, the day Japan sold its currency. The yen depreciated 0.5 percent to 110.78 per euro.

The Swiss franc lost 0.3 percent to 1.1340 per euro, and was 0.2 percent weaker at 78.69 centimes per dollar. The euro gained 0.2 percent to $1.4422.

Global Economic Calendar (23-Aug-2011)

Global Economic Calendar for 23rd August 2011

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

Global Economic Calendar (22-Aug-2011)

Global Economic Calendar for 22nd August 2011

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

Global Economic Calendar (19-Sept-2011)

Global Economic Calendar for 19th August 2011

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

Dollar Weakens as Investors Seek Higher-Yield Assets; Franc Resumes Rally

The dollar fell versus a basket of currencies of major U.S. trading partners as investors sought higher-yielding assets.

The franc briefly fell against the dollar and euro before a government briefing in Bern, then rallied as Finance Minister Eveline Widmer-Schlumpf said any decision on a target for the currency is up to the Swiss National Bank, not politicians. The franc surged earlier after the central bank refrained from pegging it to the euro or adopting a target. South Africa’s rand and Sweden’s krona climbed versus the dollar.

“There’s a broad sentiment that if you’re not getting a negative shock, it’s OK to go out and buy risk,” said Steven Englander, head of Group-of-10 currency strategy at Citigroup Inc. in New York.

The Dollar Index, which IntercontinentalExchange Inc. uses to trade the greenback against currencies including the euro and yen, fell 0.4 percent to 73.752 at 12:21 p.m. in New York, from 74.010 yesterday.

The greenback weakened 0.2 percent to $1.4433 per euro, from $1.4407. It fell 0.4 percent to 76.51 yen, from 76.80 yen.

The franc appreciated 0.7 percent to 79.04 centimes per dollar after briefly erasing gains before the government press briefing. It gained 0.5 percent to 1.1407 per euro after falling 0.8 percent earlier.

The Thomson Reuters/Jefferies CRB Index of raw materials climbed 1 percent. The Standard & Poor’s 500 Index rose as much as 1.3 percent before erasing gains.

Global Economic Calendar (18-Aug-2011)

Global Economic Calendar for 18th August 2011

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

Euro Declines After Sarkozy, Merkel Dismiss Euro Region Bonds; Franc Drops

The euro weakened against a majority of its most-traded counterparts after German and French leaders rejected a mechanism for the region to jointly issue bonds to contain its sovereign-debt crisis.

The 17-nation currency briefly pared losses after French President Nicolas Sarkozy said France and Germany are working on “ambitious” joint proposals to defend it. The Swiss franc erased gains against the dollar and euro after U.S. industrial production climbed, curbing the currency’s haven appeal. The pound rose versus the dollar after U.K. inflation accelerated.

“The initial euphoria around the comments has waned as it’s become clear that there’s not going to be a eurobond,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. “There’s a fair amount of disappointment around it, and that’s why the euro has taken a hit.”

The euro declined 0.3 percent to $1.4396 at 1:33 p.m. in New York, from $1.4445 yesterday, when it reached $1.4477, the highest level since July 27. The European currency fell 0.5 percent to 110.43 yen. The dollar slipped 0.1 percent to 76.72 yen, from 76.83 yen.

Germany and France share an “absolute determination” to defend the euro, Sarkozy told reporters in Paris today after talks with German Chancellor Angela Merkel. The two countries will propose a financial transaction tax in September, he said.

Global Economic Calendar (17-Aug-2011)

Global Economic Calendar for 17th August 2011

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

Franc, Yen Weaken on Speculation Switzerland, Japan Will Act to Stem Gains

The Swiss franc tumbled against the euro, headed for its biggest three-day decline since the European currency’s 1999 debut on speculation Switzerland will take further action to counter recent gains.

The franc slid for a fourth day versus the dollar after the SonntagsZeitung newspaper said the Swiss government and central bank are in “intense” talks over setting a target for their currency. The yen dropped the most in a week against the euro after Japan indicated it’s ready to intervene in foreign- exchange markets again. Sweden’s krona advanced against all its 16 most-traded peers even as industrial production fell in June.

“Given the strength of the franc, they’re trying to think of everything and everything,” said Brian Kim, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut. “It’s tough to say this point if whatever actions they take can reverse the safe-haven flows.”

The franc tumbled 2.5 percent to 1.1362 per euro at 1:26 p.m. in New York, from 1.1086 on Aug. 12, after rallying to a record 1.0075 on Aug. 9. The Swiss currency has slid as much as 11.25 percent over the past three days, the biggest intraday drop since January 1999. The franc fell 1.1 percent to 78.67 centimes per dollar after advancing to a record 70.71 centimes on Aug. 9.

The krona rose 1.7 percent against the dollar to 6.4051. It advanced 0.3 percent to 9.2473 per euro.

Global Economic Calendar (16-Aug-2011)

Global Economic Calendar for 16th August 2011

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

Traders Slash Bets Against Dollar by Record Amount as U.S. Treasuries Soar

Foreign-exchange traders slashed their bets against the dollar by the most on record as demand for U.S. Treasuries soared amid concern the global economic recovery if faltering.

Aggregate bets the greenback will weaken against the euro, the yen, the Australian, Canadian and New Zealand dollars, the pound, the Swiss franc and the Mexican peso plunged by 154,105 contracts to 153,216 in the week ended Aug. 9, the biggest drop ever in Commodity Futures Trading Commission data compiled by Bloomberg beginning in November 2003. The data show that for the first time since January traders are betting the currency will appreciate versus the 17-nation euro on speculation Europe’s sovereign-debt crisis is spreading.

“The selloff in risk assets is due to the repricing of global growth,” said Ray Attrill, head of currency strategy at BNP Paribas SA in New York. “The volatility levels have just been off the scale in foreign exchange, and that has deterred people from taking up the Fed’s invitation to use the dollar as a funding vehicle for risk appetite.”

The Federal Reserve said in its Aug. 9 statement that it’s prepared to use a range of policy tools to boost the economy, including keeping the target interest rate for overnight loans between banks at record lows until mid-2013. The central bank’s decision came after the unprecedented cut of the U.S. AAA credit rating by Standard & Poor’s on Aug. 5 pushed equity markets’ shares down further amid concern a global slowdown will deepen.

Global Economic Calendar (15-Aug-2011)

Global Economic Calendar for 15th August 2011

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

Central Bankers Race to Protect Growth

Central bankers are racing to shield their economies from fiscal tightening and lopsided currency swings that threaten a new global recession.

In the 72 hours after a Group of Seven conference call on Aug. 7, the Federal Reserve pledged to keep interest rates near zero through at least mid-2013, the European Central Bank intervened in bond markets and the Bank of England indicated it’s ready to add more stimulus if needed. Japan signaled renewed concern about the yen and Switzerland yesterday stepped up its fight to curb an “overvalued” franc.

“Central bankers have so far been the tower of strength,” said Stefan Schneider, chief international economist at Deutsche Bank AG in Frankfurt. “Lawmakers have done everything to destroy belief in their ability to solve the problems they’re facing.”

Today, the Bank of Korea kept interest rates unchanged for a second month and government officials planned a 2 p.m. local time media briefing in Seoul on the stock market rout. The MSCI Asia Pacific Index sank 1.1 percent as of 9:42 a.m. in Tokyo.

Finance ministers and central bankers from the G-7 nations, which include the U.S., U.K. and Germany, said in a statement Aug. 7 that they will “take all necessary measures to support financial stability and growth in a spirit of close cooperation and confidence.”

Global Economic Calendar (12-Aug-2011)

Global Economic Calendar for 12th August 2011

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

Global Economic Calendar (11-Aug-2011)

Global Economic Calendar for 11th August 2011

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

Dollar Falls Before Fed Decision

The dollar fell against the euro, Swiss franc and yen as investors bet the Federal Open Market Committee will repeat its pledge to maintain stimulus measures to revive confidence in the U.S. economy.

Canada’s currency snapped a seven-day losing streak as commodities reversed earlier declines. U.S. Treasuries dropped. The yen and the franc strengthened, pushing the Swiss currency to records against the dollar and euro, as investors sought stability amid a U.S. economic slowdown and the euro region’s debt crisis.

“The question for the dollar is what will the Fed do, if anything,” said Brian Kim, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford Connecticut. “The safe-haven Swiss and yen just keep getting better against the dollar and euro.”

The yen strengthened 0.7 percent to 77.25 per dollar at 10:16 a.m. in New York, climbing for a third straight day. The dollar depreciated 0.5 percent to $1.4251 per euro, while the shared European currency was little changed at 110.18 yen.

The franc advanced as much as 2.1 percent to a record 1.0479 per euro before trading at 1.0531. It strengthened 2.5 percent to touch an all-time high of 73.63 centimes per dollar.

Implied volatility, a key gauge of option prices that tends to rise in times of uncertainty, for euro-Swiss franc one-month options climbed to touch more than 25 percent for the first time. The equivalent dollar-franc volatility rate reached 19.9 percent, the most since January 2009.

Global Economic Calendar (10-Aug-2011)

Global Economic Calendar for 10th August 2011

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

Commodity Currencies Become a Refuge

The currency havens are disappearing as Switzerland and Japan intervene in foreign-exchange markets, while U.S. and European debt loads undermine credit ratings.

The biggest beneficiaries in the $4 trillion-a-day currency market may be Norway’s krone and the Australia and New Zealand dollars, according to Frankfurt Trust, which oversees about $23 billion. All have debt that is less than 48 percent of gross domestic product, compared with about 60 percent in the U.S., 77 percent in the U.K. and 79 percent in Germany, according to data compiled by Bloomberg.

The Swiss franc and Japanese yen, which had become favorites of traders skittish about holding dollars and euros, became perilous after the Swiss National Bank unexpectedly cut interest rates and Japan sold its currency. The yen weakened as much as 3.2 percent on Aug. 4, according to Bloomberg Correlation-Weighted Indexes. The U.S. came within days of defaulting and Italian and Spanish bond yields approached levels that spurred bailouts of Greece and Ireland.

“You want to stay away from the euro and dollar because this is really an ugly pair and there are alternatives,” Christoph Kind, the head of asset allocation in Frankfurt at Frankfurt Trust, said in a telephone interview last week. “I like currencies like the Australian and New Zealand dollars, the Swedish krona and the Norwegian krone. They are AAA-rated countries with a currency they can manage and handle, and they have pretty liquid markets.”

Global Economic Calendar (9-Aug-2011)

Global Economic Calendar for 9th August 2011

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

FNP Squawk Box (8th August 2011)

Gold! Where is it heading? Will it continue to achieve greater heights or was it just a gold rush?

In time to come with talks about global financial crisis surfacing soon, major currency holders clouded with debt ceilings, what is going to happened?

One thing for sure, currency trading will still continue.

When equities, mutual funds, energy and precious metals going through madness, one dealing desk will continue as per normal, day to day and that is currency dealing desk.

As it is, FNP will still stay with Commodities Currency through this period of time and still looking at JPY pairs from time to time.

AUD/USD (Gold)
What a drop last week with over 500pips of movements. Unable to clear 1.1065. How will it move this week? It in between 10week and 40week moving average. A lot of uncertainties going on in the world.

USD/CAD (Oil)
Last week, not much of a follow through from the previous week. Nonetheless, price has managed to moved higher than 10week and 40week moving average and broke 200week moving average.

JPY Pairs (USD/JPY, EUR/JPY, GBP/JPY)
M for madness. Be careful of spikes now and then. I have been brutally bitten by it last week via USD/JPY. Things was going my way till the spike on last Friday took out my position.

This week, just be very careful of the movements because, anything that the world's key position holders say, will create unnecessary spikes.

Global Economic Calendar (08-Aug-2011)

Global Economic Calendar for 8th August 2011

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

Global Economic Calendar (4-Aug-2011)

Global Economic Calendar for 4th August 2011

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

Canadian Dollar Falls to Two-Week Low on Concern Global Growth Is Slowing

Canada’s dollar dropped to a two-week low against the greenback on speculation slowing global growth may exacerbate U.S. and European debt turmoil.

Canada’s 30-year bond yield fell to a record low 3.20 percent, according to Bloomberg data beginning in December 1990. Canadian employers added fewer net jobs in July, according to the median forecast of 26 economists before an Aug. 5 report from Statistics Canada.

“With this general slowdown in the global economy, it’s the old dollar-smile argument: things are bad enough in the U.S. that the dollar actually looks attractive to investors,” Shaun Osborne, chief currency strategist at TD Securities Inc., a unit of Canada’s second-largest bank, said by phone from Toronto, referring to the U.S. currency. The Canadian dollar “got whacked quite hard late last week,” Osborne said.

The Canadian currency slid 0.4 percent to 96.08 cents per U.S. dollar at 8:40 a.m. in Toronto, from 95.70 cents yesterday. It touched 96.19, the weakest level since July 18. One Canadian dollar buys $1.0409. The loonie, as the currency is also known, slid 0.8 percent last week, the most since June 24.

The greenback rallied today against all of its 16 major counterparts tracked by Bloomberg except the Swiss franc as investors sought refuge from a slowing global economy.

Consumer spending in the U.S., Canada’s biggest trading partner, unexpectedly dropped in June for the first time in almost two years, Commerce Department figures showed today.

Global Economic Calendar (03-Aug-2011)

Global Economic Calendar for 3rd August 2011

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

Swiss Franc, Yen Strengthen on Speculation U.S. Economic Growth Will Slow

The Swiss franc and the yen rose versus most of their major peers as a gauge of U.S. manufacturing fell more than forecast and investors bet the debt accord President Barack Obama and congressional leaders reached will slow the nation’s growth.

The franc reached the strongest levels on record versus the dollar and euro. The Institute for Supply Management’s factory index fell to 50.9 in July from 55.3 the prior month, after economists in a Bloomberg News survey projected it would drop to 54.5. The House and Senate vote today on the agreement to raise the debt ceiling and lower the deficit by the deadline tomorrow.

“What we’re seeing is a weaker-than-anticipated U.S. economy,” said John McCarthy, managing director of currency trading at ING Groep NV in New York. “In many respects the debt issue and the deadline of tomorrow was theater, but what’s more critical is the health of the U.S. economy. It’s a rout of risk.”

The franc gained 1 percent to 77.73 centimes per dollar at 10:31 a.m. in New York and touched 77.31 centimes. The Swiss currency climbed 1.9 percent to 1.1095 per euro and touched 1.1028. The yen appreciated 0.2 percent to 76.64 per dollar and strengthened 1 percent to 109.39 against the 17-nation currency.

Stocks erased gains and dropped, with the Standard & Poor’s 500 Index declining 0.5 percent.

Global Economic Calendar (02-Aug-2011)

Global Economic Calendar for 2nd August 2011

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

Global Economic Calendar (01-Aug-2011)

Global Economic Calendar for 1st August 2011

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