Global Economic Calendar (10-May-2011)

Global Economic Calendar for 10th May 2011

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

Australia’s Budget Will Produce ‘Substantial’ Savings, Treasurer Swan Says

Australia’s budget will make “substantial” savings after revenue was crimped by a record exchange rate, the nation’s costliest natural disasters and Japan’s earthquake, Treasurer Wayne Swan said.

Swan, who delivers the budget to Parliament tomorrow, said yesterday the deficit in the government’s finances will widen in the fiscal year ending June 30 before increased mining revenue and an improving economy help bring about a surplus in 2012-13.

Prime Minister Julia Gillard’s administration has revealed the budget will tighten welfare payments to get people back into the workforce and cut 1,000 jobs in the civilian defense industry in the next three years. The government also aims to stop high-income earners receiving a subsidy for having private health insurance.

“This budget is tough and it will keep spending tight, give incentives to companies to create more jobs,” Craig James, senior economist at Commonwealth Bank of Australia in Sydney, said in a phone interview yesterday. “There won’t be much in it for people, although treasurers have a habit of pulling rabbits out of hats.”

The government, which steered Australia through the global financial crisis, is trying to emphasize its economic management skills as its popularity declines over plans to impose a tax on mining companies’ profits and charge polluters in order to reduce greenhouse-gas emissions.

Global Economic Calendar (09-May-2011)

Global Economic Calendar for 9th May 2011

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

Euro Slides as Trichet Signals Rate Rise Won’t Come in June; Yen Climbs

The euro dropped the most against the dollar in two weeks and slid versus the yen after European Central Bank President Jean-Claude Trichet signaled the ECB may wait until after June to raise interest rates again.

Japan’s currency climbed versus all of its 16 most-traded peers and reached the strongest level in six weeks against the dollar as falling commodities and stocks prompted investors to unwind bets in higher-yielding assets financed with yen. Currencies of commodity exporters including Australia, Norway, Canada and Brazil plunged.

“Mr. Trichet’s comments were not as hawkish as some people had anticipated,” said John McCarthy, director of currency trading at ING Groep NV in New York. “We’ve seen the euro come off against everything.”

Europe’s shared currency dropped 1.6 percent to $1.4588 at 11:14 a.m. in New York. It was the biggest intraday decline since April 18. The euro touched a 17-month high yesterday. It slid 1.8 percent to 117.39 yen, while the Japanese currency surged 0.8 percent to 79.93 per dollar.

The ECB left its main refinancing rate unchanged after boosting it a quarter-percentage point in April to 1.25 percent. Trichet, at a news conference in Helsinki, refrained from using the phrase “strong vigilance,” which might have signaled a June rate increase.

Trichet said inflation risks will be watched “very closely.” While inflation accelerated to 2.8 percent last month and economic growth is gaining momentum, higher borrowing costs may exacerbate Europe’s debt crisis, which has already forced Greece, Ireland and Portugal to ask for external help.

Aussie Weakens for Fourth Day After Retail Sales Drop; N.Z. Dollar Gains

Australia’s dollar fell for a fourth day after a government report showed retail sales unexpectedly dropped in March, fueling speculation the Reserve Bank will delay raising interest rates.

The so-called Aussie extended its losing streak versus the U.S. currency to the longest in seven weeks as today’s data led some analysts to cut their forecasts for first-quarter growth. New Zealand’s currency rose from near a two-week low versus the greenback after a report showed employers added more jobs last quarter than economists forecast.

“These data continue to point to the RBA remaining on hold,” said David Forrester, a currency economist at Barclays Capital in Singapore. “At the moment the market is a little worried about a slowing in global growth so that’s weighing a bit on the Aussie.”

Australia’s dollar fell to $1.0715 as of 4:30 p.m. in Sydney from $1.0748 in New York yesterday, when it dropped 0.9 percent. The currency slid 0.3 percent to 86.35 yen. New Zealand’s dollar gained 0.4 percent to 79.31 U.S. cents after sliding to 78.66 yesterday, the weakest since April 19. It was little changed at 63.65 yen.

Retail sales in Australia declined 0.5 percent in March from the previous month, the Bureau of Statistics said today in Sydney. Economists predicted a 0.5 percent gain, according to a Bloomberg News survey.

Traders lowered to 48 percent the probability the RBA will boost its benchmark rate to 5 percent by August, compared with a 54 percent chance yesterday, interbank futures show.

Global Economic Calendar (06-May-2011)

Global Economic Calendar for 6th May 2011

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

Trade Share (AUD/USD 05-May-2011)

"Trade Share" is sharing on one of my trades once in awhile.

This trade was opened yesterday, 4th May 2011.

The stamina of the raging bull on the AUD/USD was running out, probably the bull would want to take a breather. Was looking at the daily of the AUD/USD and on the 3rd May 2011, there was a confirmation on price action.

Trade ticket was opened in the morning of 4th May 2011 at 7:08am (Singapore Time), price of 1.08492. Stop Loss was put at 1.0880 and price targeted at 1.0710. Why 1.0710? That is the price around the area of 23.6% Fibo on Daily chart and S3 of 4th May 2011 Pivot level.

Yesterday, the price actions may seemed not in favour during the first half of the day and quite strong data coming in the evening but price action failed to create a higher high. Hence, I stayed on with the plan.

Upon data release last night, it went my way, really went my way and was looking if it could touch my Target Profit at 1.0710 but it didn't, instead it bounces off at around 1.0735 region. Was deciding really hard on whether to close the trade or not but price action doesn't give me any reason to close it early. Let the trade run through the night.

Woke up this morning, it is still going my way. Push my Stop Loss to Protective Stop, just in case price go haywire, at least some money is in the pocket, I also pushed my Target Profit lower to 1.0685, near to today's S1 Pivot Level.

Satisfied with my decision, left my house and life goes on. Around 2+pm (Singapore Time), checked the trade, it was very healthy. Checked again at 5:45pm and BAM!!! My open position was GONE!!! That means, 164.2pips in the bag, Target Profit was hit at 5:38pm (Singapore Time). Woooohooooo!!! :) Worth all the dime, holding it for two days :)

Euro Gains to Highest Versus Dollar Since December 2009 Before ECB Meets

The euro rose against the dollar, reaching its highest level since December 2009 on speculation European Central Bank President Jean-Claude Trichet will signal further rate increases after policy makers meet tomorrow.

The greenback pared an advance against the yen as U.S. companies added fewer jobs than forecast, encouraging the Federal Reserve to keep borrowing costs low. The euro rose versus most of its major counterparts as European services and manufacturing growth accelerated. New Zealand’s dollar dropped to a two-week low on the biggest net outflow of residents in more than 10 years.

“The ECB has nailed its anti-inflation colors firmly to the mast, and the Fed hasn’t even got around to starting yet,” said Steven Barrow, a currency strategist at Standard Bank Plc in London. “This euro rally won’t extend too far if the ECB isn’t as hawkish as the market expects.”

The euro rose 0.5 percent to $1.4901 at 8:37 a.m. in New York, from $1.4825 yesterday. It touched $1.4915, the highest level since December 2009. The shared currency gained 0.6 percent to 120.69 versus the yen, from 119.99. The dollar advanced less than 0.1 percent to 81 yen, from 80.94.

The Swiss franc strengthened to a record 85.94 centimes per dollar before trading at 86.02 centimes.

The greenback fell against most of its major peers as ADP Employer Services data showed employment at U.S. companied increased by 179,000 jobs in April, from a revised 207,000 in March. The median estimated in a Bloomberg News survey called for a 198,000 advance this month.

Global Economic Calendar (05-May-2011)

Global Economic Calendar for 5th May 2011

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

‘Dumb Money’ Flees Muni Funds as U.S. Investors Snap Up Individual Bonds

John Hirsch, 57, has been buying municipal bonds during the past four months, taking advantage of falling prices as muni mutual funds are forced to sell them to cover withdrawals.

“I have no interest in trading bonds,” said Hirsch, a consultant to the medical industry in Clermont, Florida. “I’m going to hold until maturity, and at maturity I’ll get the face value back.”

Investors withdrew about $40.4 billion from U.S. municipal- bond mutual funds in the five months through March, according to Morningstar Inc. (MORN), a Chicago-based research firm. Retail investors purchased about $3 billion more in individual municipal bonds in the first quarter this year than in the same period last year, according to data on trades of $100,000 or less from the Municipal Securities Rulemaking Board, which regulates muni dealers.

Surging investor withdrawals force mutual-fund managers to sell in a falling market. Investment-grade muni bond prices have dropped 4.6 percent in the six months through April, as measured by the Bank of America Merrill Lynch Municipal Master Index.

“The people who are redeeming are the dumb money, because they’re redeeming into a market where prices are down,” said Alexandra Lebenthal, chief executive officer of New York-based Lebenthal & Co., which manages about $170 million in municipal- bond separately managed accounts. Her firm has received about $30 million in new money since December.

American households own $1.1 trillion of municipal debt, or about 37 percent of the market, and represent the largest holders, according to U.S. Federal Reserve data.

Yen Strengthens to Highest in Five Weeks as Stocks Decline; Dollar Gains

The yen and dollar rose against most major counterparts as stocks fell and concern that Osama bin Laden’s death will prompt reprisal attacks boosted demand for the relative safety of the Japanese and U.S. currencies.

The yen reached its strongest in more than a month versus the dollar as Asia’s benchmark stock index slid to its biggest loss in three weeks. The Australian and New Zealand dollars fell as lower commodity prices damped demand for the nations’ assets. Canada’s currency strengthened as Prime Minister Stephen Harper won a return to office with a majority government. The pound dropped as an index of U.K. manufacturing growth declined.

“It looks like a broad reduction in risk appetite,” said Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London.

The yen rose 0.8 percent to 119.49 per euro at 8:37 a.m. in New York. The greenback gained 0.2 percent versus the European common currency to $1.4795 per euro. Japan’s currency gained 0.6 percent to 80.77 per dollar after appreciating to 80.71, the strongest since March 23.

Financial markets in Japan are shut today for a holiday.

Japan’s currency advanced as the Stoxx Europe 600 slipped by 0.7 percent and U.S. equity futures declined. The MSCI Asia Pacific Excluding Japan Index of shares dropped 1.4 percent.

The yen typically strengthens in times of political, financial and economic turmoil. Japan’s trade surplus makes the currency attractive because it means the nation doesn’t have to rely on overseas lenders. The dollar benefits as the world’s main reserve currency.

Global Economic Calendar (04-May-2011)

Global Economic Calendar for 4th May 2011

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

Yen Weakens, Dollar Gains After Official Says Bin Laden Is Dead

The yen and the Swiss franc weakened as equities climbed after President Barack Obama said al-Qaeda leader Osama bin Laden was killed by U.S. operatives, damping demand for the safest assets.

The U.S. Dollar Index snapped a nine-day decline and Canada’s dollar slid after Brent crude oil dropped the most in almost seven weeks following reports of bin Laden’s death. The euro strengthened versus the U.S. currency and the krona appreciated after reports showed manufacturing in the euro region and Sweden is picking up.

“This is risk-on plus the effect of the oil price,” said Ulrich Leuchtmann, head of currency strategy at Commerzbank AG in Frankfurt. That’s “pushing yen a little bit weaker and the same effect for the Swiss franc. Data has been pretty strong across the board.”

The yen depreciated 0.5 percent to 120.85 per euro as of 7:48 a.m. in New York and slid 0.3 percent to 81.46 per U.S. dollar. The euro advanced 0.2 percent to $1.4841 and climbed 0.4 percent to 1.2858 against the Swiss franc.

The MSCI Asia Pacific Index of shares added 0.7 percent, the Stoxx Europe 600 Index rose 0.2 percent and futures on the Standard & Poor’s 500 Index increased 0.6 percent. The yield on the 10-year Treasury note rose.

The franc weakened versus a majority of its most-traded peers and the yen snapped two-day gains versus the euro and the dollar after President Obama said bin Laden was killed by a team of U.S. operatives after a firefight at a house in Pakistan.

Global Economic Calendar (03-May-2011)

Global Economic Calendar for 3rd May 2011

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

Dollar Index Falls to Lowest Since 2008 as GDP Misses Forecast; Yen Gains

The Dollar Index fell to its lowest level in more than two years as the U.S. economy expanded in the first quarter at a slower rate than forecast, encouraging the Federal Reserve to keep borrowing costs low.

The yen appreciated versus most of its major counterparts after a report showed Japanese investors sold foreign assets last week. New Zealand’s dollar was one of the worst performers against the greenback after Reserve Bank Governor Alan Bollard called the currency’s recent advance “unwelcome.” The dollar sank a day after Fed Chairman Ben S. Bernanke said he was unsure when monetary stimulus will unwind.

“The data is accelerating dollar weakness,” said Mark McCormick, a currency strategist at Brown Brothers Harriman & Co. in New York. “The yen is firmer today because it now seems that there is more of a potential for repatriation back into the economy, which would drive up demand.”

IntercontinentalExchange Inc.’s Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, dropped 0.6 percent to 73.118 at 10:54 a.m. in New York, from 73.519 yesterday, after touching 72.871, the lowest level since July 2008.

The New Zealand dollar decreased for the first time in three days versus its U.S. counterpart after policy makers left the official cash rate unchanged at a record low 2.5 percent. The kiwi dropped 1 percent to 79.98 U.S. cents after reaching 81.08 cents yesterday, the highest level since March 2008.

Global Economic Calendar (29-April-2011)

Global Economic Calendar for 29th April 2011

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

Pound jumps on resilient UK growth...

The pound gained and gilts fell after a report showed Britain’s economy rebounded in the first quarter on the strongest surge in service-industry growth for four years.

Sterling snapped three days of declines versus the dollar and euro. Gross domestic product grew 0.5 percent after shrinking the same amount in the fourth quarter, the Office for National Statistics said today, matching the median estimate of 28 economists surveyed by Bloomberg News. Services, which make up 76 percent of the economy, grew by 0.9 percent, the most since 2006.

“The reaction that we’re seeing in the pound right now is some kind of relief, because some thought the number would be even weaker,” said John Hydeskov, chief analyst at Danske Bank A/S in London.

The pound advanced against all but two of its 16 most actively traded counterparts. Sterling rose 0.3 percent to $1.6523 as of 4:31 p.m., extending its monthly gain versus the greenback to 3.1 percent. It strengthened 0.2 percent to 88.67 pence per euro, after earlier depreciating to 89.23 pence, the weakest level since April 13.

U.K. government bonds fell, pushing the 10-year yield up nine basis points to 3.57 percent. That’s the biggest intraday move since March 22. The 3.75 percent security due September 2020 slipped 0.68, or 6.8 pounds per 1,000-pound ($1,656) face amount, to 101.42. The two-year note yield rose 10 basis points to 1.19 percent.

Global Economic Calendar (27-April-2011)

Global Economic Calendar for 27th April 2011

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

Global Economic Calendar (25-April-2011)

Global Economic Calendar for 25th April 2011

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

Trade Share (EUR/JPY 20-April-2011)

 

"Trade Share" is sharing of my trades once in a while.

This trade was done today 20th April 2011 at 10:26am (Singapore Time) and I thought today was going to be one gloomy day.

Why EUR/JPY and not on USD/JPY? Good question, with the uncertainties happening with US, I do not feel the sincerity on the movements with USD/JPY. Although it bounces of 38.2% Fibo, it just did not have that uuummmmppphhhfffff to create a higher low.

On the other hand, EUR/JPY was showing more sincerity when it bounces off 38.2% Fibo and created a higher low with yesterday's price action. Hence, today, a long position was opened at the mentioned time, at the price of 119.368.

Stop Loss was easy to put, at 119even. Target Profit was given more attention before deciding. I could be greedy and put a ridiculous target at a higher high but that will be too far fetch. As it is, I am not a long term trader. With the R2 of pivot points at 120.298 and the 10ma of Daily chart at around 120.370 at the point of execution, the Target Profit has been set at 120.31.

As it is and always be, the usual things in life. Late again :P hahaha!!! Was checking up on the trade as and when on my Android Dell Streak and suddenly, my open position disappeared!!! Either the trade hit my stop loss which was unlikely because the previous check, the trade was at 86pips into the money or my target profit was hit. A quick look at the closed position window and that is where the truth lies, my target profit was hit at 6:43pm (Singapore Time), 94.2pips in the bag =^_^=

Not a bad day after all. I am all smiles tonight...

Global Economic Calendar (20-April-2011)

Global Economic Calendar for 20th April 2011

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

Aussie Rides Commodity Boom as Credit Suisse Joins RBS in Seeing 4% Gains

From coal to iron ore, soaring commodity prices are paving the way for the Australian dollar to rebound from its worst first quarter in five years.

Royal Bank of Scotland Group Plc says the currency may jump about 4 percent against the dollar by the end of September after the Standard & Poor’s GSCI Index of 24 commodities climbed three-straight quarters. Credit Suisse Group AG predicts it will rise that amount over a year. Futures traders boosted bets this month on a stronger currency to the highest since at least 1993.

The so-called Aussie may strengthen because the central bank will increase interest rates, already the highest in the developed world, while the Federal Reserve keeps borrowing costs at record lows, according to surveys of economists by Bloomberg. Demand from China for Australian raw materials, which account for about 60 percent of exports, may be augmented by Japan rebuilding from last month’s earthquake and tsunami that caused an estimated $300 billion in damage.

“The commodity story that is driving Australia, not just now but over the last few years, will continue,” said Ray Farris, chief strategist for Asia-Pacific fixed income and global head of foreign-exchange strategy at Credit Suisse in Singapore. “The fundamental picture for the Aussie over the next 12 months is very, very good.”

Bernanke Briefings May Offset Fed Hawks With Words as New Tool

When Federal Reserve Chairman Ben S. Bernanke convenes his first press conference next week, he may emphasize a point the markets seem to have forgotten: He’s serious about keeping interest rates low for an "extended period."

Futures markets in Chicago see a 29 percent chance of a rate increase by December, and Eurodollar contracts on interbank lending predict rates of 0.5 percent by year-end -- an imminent tightening encouraged by an inflationary uptick and suggestions from some regional Fed presidents that rates should rise soon.

“Yet again the market is running way ahead of the Fed,” said Julia Coronado, chief economist for North America at BNP Paribas SA in New York and a former Fed economist. “Bernanke’s press conferences will help mitigate the influence of some of the FOMC members who are further away from consensus and yet very, very vocal.”

The briefings -- after the Fed’s two-day meetings in April, June and November this year -- may allow Bernanke, like his colleagues in Europe and Japan, to steer or even correct market expectations by making him the first official to explain any central bank actions. Regional presidents who don’t necessarily represent the Fed’s consensus, including Kansas City Fed President Thomas Hoenig, often have spoken first.

Bernanke and his chief deputies on the Federal Open Market Committee -- Fed Vice Chairman Janet Yellen and New York Fed President William C. Dudley -- have used speeches in recent weeks to knock back investor perceptions, based on remarks by Hoenig and several other FOMC members, that the central bank may raise rates before year-end. They have countered that the committee’s leadership believes the threat from accelerating prices will prove “transitory.”

Global Economic Calendar (19-April-2011)

Global Economic Calendar for 19th April 2011

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

Global Economic Calendar (18-April-2011)

Global Economic Calendar for 18th April 2011

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

Global Economic Calendar (15-April-2011)

Global Economic Calendar for 15th April 2011

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

Obama Offers Plan to Trim $4 Trillion From Deficit in 12 Years

President Barack Obama vowed to cut $4 trillion in cumulative deficits within 12 years through a combination spending cuts and tax increases, setting the stage for a fight with congressional Republicans over the nation’s priorities.

In presenting his long-term plan for closing the budget shortfall, Obama set a target of reducing the annual U.S. deficit to 2.5 percent of gross domestic product by 2015, compared with 10.9 percent of GDP projected for this year. He reiterated his support for overhauling the tax code to lower rates while closing loopholes and ending some breaks to increase revenue.

“We have to live within our means, reduce our deficit, and get back on a path that will allow us to pay down our debt,” Obama said in prepared remarks for a speech today at George Washington University in the capital. “And we have to do it in a way that protects the recovery.”

Over the next five years, the administration forecasts the government will pile up a cumulative deficit of $3.8 trillion; over the decade, the cumulative deficits would rise to $7.2 trillion. With today’s proposal, Obama is going beyond the fiscal 2012 budget he presented on Feb. 14, which forecast cutting the deficit by $1.1 trillion over a decade.

As with his budget, Obama in his latest plan calls for ending the Bush-era tax cuts for the wealthiest Americans, which are set to expire in 2012.

Global Economic Calendar (14-April-2011)

Global Economic Calendar for 14th April 2011

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

Global Economic Calendar (13-April-2011)

Global Economic Calendar for 13th April 2011

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

Discouraged Workers Complicate Fed's Response to Jobless Fall

The sharpest drop in unemployment in more than a quarter century obscures a simple fact: The jobs market still isn’t working for many Americans.

Some 6.3 million people have been out of work and looking for a job for more than six months. The employment-to-population ratio is lower than it was when the recession ended as companies have been slow to add to payrolls. And big sources of hiring in the past -- government, health care and retailing -- may not be able to reprise that role in the future as lawmakers limit outlays and consumers curb spending.

“The trends are a little bit scary,” said Nobel laureate Michael Spence, a professor at New York University. “There’s been a break in an important part of the social contract” for many Americans who are finding they can’t get ahead.

Mixed messages from the jobs numbers make decisions more difficult for Federal Reserve Chairman Ben S. Bernanke and his central bank colleagues as they wrestle over monetary policy.

Rising prices and falling unemployment -- the jobless rate dropped to 8.8 percent in March from 9.8 percent in November, the biggest four-month decline since 1983 -- suggest that the Fed should raise rates from near zero later this year to keep inflation in check, according to Joseph LaVorgna, chief U.S. economist for Deutsche Bank Securities in New York.

He sees yields on Treasury securities rising, with the two- year note hitting 1.25 percent to 1.5 percent and the 10-year- note climbing to 4 percent by the end of the year. They were 0.81 percent and 3.58 percent at 5:16 p.m. April 8 in New York, according to Bloomberg Bond Trader prices.

Global Economic Calendar (12-April-2011)

Global Economic Calendar for 12th April 2011

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

Global Economic Calendar (11-April-2011)

Global Economic Calendar for 11th April 2011

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

Oil Climbs Above $112 on Libyan Armed Revolt, Dollar Weakness

Crude rose above $112 in New York for the first time in 30 months and Brent topped $125 on skepticism that Libyan output will rebound when fighting ends and as a weaker dollar increased demand for commodities.

Futures rose as much as 1.6 percent in New York as Barclays Capital said strikes on Libyan oilfields by forces loyal to Muammar Qaddafi ended hopes for a prompt resumption of exports, and will help send prices toward $130 a barrel. Raw materials surged as the dollar dropped to the lowest level against the euro in more than a year.

“Since the Libya unrest began, there’s been a re-coupling of the inverse relationship between the dollar and oil,” said Stephen Schork, president of the Schork Group Inc. in Villanova, Pennsylvania. “The Middle East is being used as cover by speculators looking to send oil higher.”

Crude oil for May delivery rose $1.59, or 1.4 percent, to $111.89 a barrel at 12:27 p.m. on the New York Mercantile Exchange. The contract reached $112.10, the highest intraday price since Sept. 22, 2008. Futures are up 3.7 percent this week and are 31 percent higher than a year ago.

Brent oil for May settlement climbed $3.15, or 2.6 percent, to $125.82 a barrel on the London-based ICE Futures Europe exchange. The contract touched $125.79, the highest price since Aug. 1, 2008.

The European benchmark traded at a $13.93-a-barrel premium over West Texas Intermediate, the oil traded in New York. London Brent, traditionally cheaper than WTI, has been higher than the Nymex grade since August because of ample U.S. stockpiles and Middle East unrest.

U.S. Stocks, Yen Up on Tokyo Quake

Stocks fell, dragging the Dow Jones Industrial Average down from an almost three-year high, while Treasuries erased losses and the yen rose as a magnitude 7.1 earthquake shook Japan less than a month after the nation’s worst temblor on record. Crude oil topped $109 a barrel.

The Dow slid 43.37 points, or 0.4 percent, to 12,383.38 at 12:02 p.m. in New York and the Standard & Poor’s 500 Index dropped 0.3 percent. The iShares MSCI Japan Index Fund, an exchange-traded security tracking the nation’s equities, lost 0.6 percent, paring a drop of as much as 1.7 percent after Japan canceled a tsunami warning. Ten-year Treasury note yields were little changed at 3.54 percent after rising earlier. The yen strengthened against 15 of 16 major counterparts.

The earthquake hit 215 miles northeast of Tokyo, the U.S. National Oceanic and Atmospheric Administration said in an e- mailed preliminary earthquake report, spurring concern that Japan will be hindered in its efforts to recover from a March 11 quake and tsunami that damaged nuclear reactors north of Tokyo.

“It’s created more uncertainty for the region,” said Thomas Garcia, head of equity trading at Santa Fe, New Mexico- based Thornburg Investment Management Inc., which oversees about $80 billion.

Cisco Systems Inc., DuPont Co. and General Electric Co. lost more than 1.1 percent to lead the Dow’s drop after the earthquake and amid growing concern an impasse over the federal budget may lead to a shutdown of the U.S. government.

Japan Rattled by 7.1 Aftershock; No Nuclear Damage Reported

A magnitude-7.1 aftershock, one of the strongest since the devastating earthquake March 11, struck Japan today 215 miles (345 kilometers) northeast of Tokyo.

At least three nuclear facilities lost some outside power, according to official and news media reports, although none was reported in distress.

The quake was measured at a depth of about 25 miles and struck about 11:32 p.m. local time near the site of last month’s quake, the largest on record in Japan, the U.S. Geological Survey reported on its website. A tsunami alert for a possible two-meter wave was canceled by Japan about two hours later.

“What occurred today is an aftershock in the same area and rupture zone to the magnitude-9 main shock that occurred about a month ago,” said Don Blakeman, a geophysicist in the U.S. National Earthquake Information Center in Golden, Colorado. “It is tremendously smaller than the main shock. The main shock caused about 80 times more ground movement.”

Tokyo Electric Power Co. told reporters that the quake caused no new disruption at the Fukushima Dai-Ichi and Dai-Ni nuclear power units. The Fukushima units were crippled by the magnitude-9 quake and tsunami on March 11 that left more than 27,000 people dead or missing and caused an estimated 25 trillion yen ($295 billion) in damage.

Global Economic Calendar (08-Apr-2011)

Global Economic Calendar for 08th April 2011

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

King Faces Isolation in Europe as ECB Prepares to Raise Rate

Bank of England Governor Mervyn King may find himself more isolated in Europe as he fights to keep record-low interest rates at a time when borrowing costs are set to increase across the 17-nation euro region.

King, who today chairs a meeting of the nine-member Monetary Policy Committee in London, has resisted calls by three officials to raise the benchmark interest rate from a record low of 0.5 percent. All 57 economists in a Bloomberg News survey forecast the panel will leave it on hold again at noon. Another survey shows the European Central Bank will raise its main rate for the first time since July 2008.

The MPC has held off raising borrowing costs even after inflation accelerated to more than twice the bank’s target, with King saying price growth will ease as government budget cuts restrain the recovery. Keeping rates on hold as the ECB tightens policy may weaken the pound against the euro, amplifying import- price inflation.

“The pressure is absolutely building and they’re going to need to raise rates at some point in the near future,” George Buckley, chief U.K. economist at Deutsche Bank AG in London, said in a telephone interview. “This week’s meeting could turn out to be more in the balance than expected.”

The pound slipped 0.2 percent against the dollar today and was at $1.6297 as of 8 a.m. in London. Bonds declined, with the yield on the 10-year gilt rising 3 basis points to 3.79 percent.

Google, Buffett May Be Wind Turbine Buyers

Google Inc. (GOOG) and Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) have shown interest in buying wind turbines to supply power along railroad lines and at computer server farms, two of the world’s largest manufacturers said.

“Railroads could be huge potential customers of wind turbines, and companies like Google have already shown some interest,” Andris Cukurs, head of North American operations at Suzlon Energy Ltd. (SUEL), said in an interview. “We expect to see more large energy consumers get involved directly in wind.”

Suzlon, India’s largest turbine manufacturer, and Vestas Wind systems A/S, the world’s biggest, are seeking to attract customers outside their traditional base of independent power producers after a drop in orders from U.S. developers such as NextEra Energy Inc. (NEE) and Exelon Corp. (EXC)

“In North America, we’ve totally restructured our sales force and hired more engineers to work with customers that don’t have much experience with wind farms,” Martha Wyrsch, president of Vestas’s unit in the region, said in an interview. “We are seeing a lot of interest from carbon-conscious companies that we never saw before.”

The comments at the Bloomberg New Energy Finance conference in New York indicate the measures turbine makers are adopting to make up for a lull in orders.

Sales in the U.S. from all manufacturers probably will remain 30 percent below 2009 levels this year, near 2010 levels when machines with a capacity to generate 4,900 megawatts were installed, the London-based researcher estimates. State renewable-energy mandates that encourage turbine sales will require a total of about 4,800 megawatts a year through 2020.

Global Economic Calendar (07-April-2011)

Global Economic Calendar for 07th April 2011

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

Stephen Schork Interview on Oil Price Drivers

Global Economic Calendar (06-April-2011)

Global Economic Calendar for 06th April 2011

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

Something Corny,,,

Corn prices climbed to the highest since July 2008 after a government report showed shrinking U.S. inventories, while storms in the Midwest threatened to delay spring planting. Futures for May delivery rose 15.75 cents, or 2.1 percent, to $7.5175 a bushel after touching $7.5675, the highest for a most- active contract since July 7, 2008. Prices have more than doubled in the past year as global supplies plunged.

Indexes for stocks in Hong Kong, Norway, Canada, India and China gained more than 0.7 percent. The S&P 500, the benchmark measure of U.S. shares, swung between a loss of 0.1 percent and a gain of 0.3 percent. Intel Corp. (INTC) fell the most in the Dow Jones Industrial Average, losing 1.5 percent, as the Semiconductor Industry Association said three-month average sales dropped 1.1 percent in February.

Global Economic Calendar (05-April-2011)

Global Economic Calendar for 05th April 2011

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

SM Goh cautions against over-strengthening Sing dollar

Senior Minister Goh Chok Tong on Friday said a stronger Singapore dollar will help mitigate imported inflation, but he is also wary about over-strengthening the currency.

He was speaking at a dialogue session at the Singapore Polytechnic, where he acknowledged the rising cost of living in Singapore.

He called it a perpetual problem that every generation would have to face every year, partly due to the country's growing economy.

Mr Goh's comments came ahead of the policy review meeting in mid-April by the Monetary Authority of Singapore, which he chairs.

The Sing dollar has been rising steadily against the US dollar over the past year, hitting new highs in recent weeks.

Senior Minister Goh, who is also the chairman of the Monetary Authority of Singapore, said: "On rising costs, this is a perpetual problem - every generation, every year, we are faced with the question of rising costs. Another word for this is inflation.

"Rising costs comes about in various ways - one of it is the cost of imported oil, food ... if costs go up both sides, it will therefore be hit by rising costs. Now, the solution for that will be a stronger Singapore dollar, provided the economy grows, then the dollar can be strong ...

"A stronger Singapore dollar will mitigate a rise in prices of goods imported into Singapore, but you can't let the Singapore dollar go up too much because that's going to affect your exports, then your exports become too expensive."

Loonies Strength

Loonies gained 1.8 percent to 96.32 cents per U.S. dollar. Mexico’s peso rose as high as 11.8265 per dollar.

Brazil’s real had its biggest weekly gain one and one-half years. The nation imposed a 6 percent tax on international bond sales and loans, which Finance Minister Guido Mantega said was an attempt to stem the real’s 44 percent gain against the dollar since the end of 2008.

The central bank said March 29 the economic costs are “too high” to cut inflation to its 4.5 percent goal this year from a more than two-year high of 6.13 percent currently. Investors are speculating the government will shift strategy and allow the real to strengthen as a counterweight to inflation, said Mariano Cirello, who manages 5 billion reais ($3 billion) as chief investment officer at Mapfre Investimentos in Sao Paulo.

The real was up 3.3 percent this week, the most since the period ended July 17, 2009.

Yen Swings

The Japanese currency weakened against all its major counterparts this week, after strengthening to a post-World War II high of 76.25 on March 17.

Radiation levels that can prove fatal were detected outside reactor buildings at Japan’s Fukushima Dai-Ichi plant for the first time last week. Elevated radiation levels have been detected in crops grown near the stricken plant as well as the water supply in Tokyo, 220 kilometers to the south, and other regions.

“Fundamentals have shifted in Japan because, when this is said and done, Japan’s trade surplus will shrink dramatically or even turn in to a deficit” as the country focuses on rebuilding, said Greg Anderson, a currency strategist at Citigroup Inc. in New York.

Canada’s dollar climbed to a three-year high and Mexico’s peso reached the strongest since October 2008 against the greenback on expectations the nations will benefit from accelerating growth in their biggest trading partner.

Global Economic Calendar (04-April-2011)

Global Economic Calendar for 04th April 2011

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

Trade Share (USD/JPY 1-April-2011).

"Trade Share" is sharing of my trades once in a while.

For this one is a trade I did today around afternoon Singapore Time. I have been eyeing USD/JPY for the longest time this year and most of my trades this year are with the JPY pair.

This trade done today, 1st April 2011, was on the USD/JPY. On the 15min chart, after the break-out from the channel on the 31st March 2011, I went to sleep. On 1st April 2011, the movements was restricted at the R1 of pivot point and Fibo Retracement was applied. Looking at price action, under Daily chart, price broke above 200ma and USD's NFP data going to be released at a later timing, waited for price to touch 23.6% Fibo. Waited to see if the bounce will be sustained in the next candle period, knowing this will cause me to be late (**Who cares!?!?). Price action managed to sustain.

At 2:31pm (Singapore Time), went in a long position with the USD/JPY at priceline of 83.52. Target profit placed near to R3 of pivot point, 84.55 and stop loss at 30pips below entry price, 83.22. Then went on with usual things of life but kept close watch to the trade, thanx to Android Tablet ;)

Price action was healthy couple of hours before USD's NFP release. Once the data was released, price was in my favour and decided to hold it till my target profit is hit. Target profit was indeed hit at 9:45pm (Singapore Time) with 102.6pips in the pocket.