Global Economic Calendar (31-October-2011)

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

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)

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

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)

Global Economic Calendar for 27th October 2011

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

Yen Rallies to Record Against Dollar

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)

Global Economic Calendar for 26th October 2011

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

Wishing all Hindus, A Happy Deepavali,

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

A HAPPY DEEPAVALI

Dollar Drops to Post WWII Low Against Yen

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)

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

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)

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

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)

Global Economic Calendar for 20th October 2011

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

Pound being pounded?

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)

Global Economic Calendar for 10th October 2011

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

Death of Euro Exaggerated Amid Political Will

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)

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

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)

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

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)

Global Economic Calendar for 4th October 2011

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

Global Economic Calendar (03-October-2011)

Global Economic Calendar for 3rd October 2011

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