Global Economic Calendar (18-September-2012)

Global Economic Calendar for 18th September 2012
**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (17-September-2012)

Global Economic Calendar for 17th September 2012
**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (14-August-2012)

Global Economic Calendar for 14th August 2012
**Time is with respect to Singapore Time (GMT+8:00)

Yen Gains to Six-Week High Versus Euro on Growth Outlook

The yen climbed to the strongest level in almost six weeks against the euro and gained versus all its most-traded counterparts as signs global growth is slowing underpinned demand for the relative safety of the currency.

The dollar rose versus all its major peers except the yen after South Korea unexpectedly lowered interest rates, while the euro slid below $1.22 for the first time since July 2010. The Bank of Japan (8301) refrained from expanding stimulus, adding to haven demand. China releases quarterly gross domestic product data today. Australia’s dollar slid after employers cut jobs.

“The Bank of Japan monetary-policy decision didn’t lead to any significant new expansion in the BOJ balance sheet or something the market would consider more aggressive quantitative easing,” Shahab Jalinoos, a Stamford, Connecticut-based senior currency strategist at UBS AG, said in a telephone interview. “The market was disappointed, and the yen clawed back some recent losses.”

The yen gained 0.9 percent to 96.72 per euro at 1:15 p.m. New York time after appreciating earlier to 96.43, the strongest level since June 1. Japan’s currency advanced 0.6 percent to 79.30 per dollar. The euro weakened 0.4 percent to $1.2196 after sliding to as low as $1.2167.

Japan’s currency rose versus the dollar as the extra yield investors receive for investing in two-year U.S. Treasuries versus comparable Japanese government bonds fell to the lowest in a month, limiting dollar-denominated assets’ appeal. The yield spread was 16 basis points, or 0.16 percentage point.

Euro Weakens as Investors Sell to Buy Higher-Yield Assets

The euro fell to a two-year low versus the dollar and weakened against all of its 16 most-traded peers as traders used the shared currency to fund purchases of higher-yielding assets.

The 17-nation currency dropped to the weakest on record versus Australia’s dollar five days after the European Central Bank cut its key interest rate to an all-time low 0.75 percent. Sweden’s krona reached its strongest against the euro since 2000 as industrial production fell less than forecast, and Mexico’s peso gained versus the dollar on bets Europe’s crisis will ease.

“The euro is now the main funding currency, and everyone wants to be short euro,” said Sebastian Galy, a senior foreign- exchange strategist at Societe Generale SA in New York. “The dollar is no longer the main funding currency.” A short position is a wager a currency will decline in value.

The euro depreciated as much as 0.6 percent to $1.2235, the lowest since July 2010, before trading at $1.2255 at 1:36 p.m. New York time, down 0.5 percent. The common currency declined 0.6 percent to 97.38 yen and touched 97.23 yen, the weakest since June 5. The yen gained 0.1 percent to 79.47 per dollar.

Australia’s dollar climbed 0.5 percent to A$1.2002 per euro and touched A$1.1988. The Aussie was little changed at $1.0209 and slipped 0.1 percent to 81.12 yen.
Investors sell currencies of nations with low borrowing costs to purchase those with higher yields in the carry trade. Japan’s yen and the U.S. dollar are traditional funding currencies because the nation’s central banks are holding interest rates at almost zero. The Reserve of Australia’s cash rate target is 3.5 percent.

FNP Squawk - EUR/USD (20-06-2012)

Hello everybody! What's is going on with everyone? Hope everyone is well =]

EU Union is in the bag. With much anxiety and rumors, what is EU's next course of action? Greeks, Spanish and Italians, to start off, they are the happening and fun Europeans to start with =] A non-mechanical, non-mechanical and non-systemic Europeans :P

Anyway, let's start with what I am seeing.

EUR/USD, has made a great fall ever since their crisis. A lot of talks saying EUR is picking up before and after Greeks elections. Well, after the fall to  1.2287, price indeed bounced but this bounce is going to last. 

Take a look at the daily chart, it is too early to come out with any picture. The only immediate picture that is visible is that price action as of now after the bounce looks like it is going through a "Bear Flag". Calmly creating a channel after the bounce.

Whether EUR/USD is going up or down. depends on how it breaks out of this Bear Flag. I have not been holding a position in Spot FX since 12th June 2012 but I have been doing a lot of scalping using Binary Options. Scalping is more feasible in the current market conditions unless we manage catch something in the market, there and then, spot on. The right place and the right time, go for it. If not, stay with scalping. Discipline is the key to get out of from month of June with a good number.

Yen Gains Versus Peers Before Italy Debt Sale

The yen climbed against all of its major counterparts amid concern the bailout of Spain’s banks will move Italy to the forefront of the debt crisis, spurring demand for the Japanese currency as a haven.

The 17-nation euro remained lower versus the dollar following a three-day slide before Italy auctions debt this week and Greeks vote in a general election on June 17. The euro climbed early yesterday after Spain asked European governments for as much as 100 billion euros ($125 billion) to save its banking system, making it the fourth member of the currency bloc to seek a rescue.

“There is no conviction and there is no belief that things are going to get better” in the euro region, said Kurt Magnus, executive director of currency sales in Sydney at Nomura Holdings Inc., Japan’s biggest brokerage. “This is the reason we’re seeing the U.S. dollar and yen so well bid.”

The yen climbed 0.3 percent to 98.86 per euro as of 10 a.m. in Tokyo from the close in New York yesterday. It gained 0.3 percent to 79.20 against the dollar. The euro traded at $1.2483 after falling 0.3 percent to $1.2482 yesterday.

Italy’s 10-year debt dropped yesterday as the yields climbed 26 basis points, the most since Dec. 8, to 6.03 percent. The nation is scheduled to auction securities on June 14 maturing in 2015, 2019 and 2020.
Italian banks led a decline in European stocks yesterday, with UniCredit SpA (UCG), the country’s largest lender, losing 8.8 percent and Intesa Sanpaolo SpA (ISP), the second largest, sliding 5.9 percent. The nation’s debt load is the heaviest in the euro region after Greece’s, as measured by its ratio to annual economic output, according to data compiled by Bloomberg.

Euro Rises to Two-Week High on Spain Bailout Request

The euro rose against most of its major counterparts after European governments agreed to provide Spain with a bailout loan.

The 17-nation currency climbed to a two-week high after Spain asked for as much as 100 billion euros ($126 billion) to save its banking system, making it the fourth member in the currency bloc to seek a rescue. The dollar and yen fell on decreased demand for refuge assets as Asian shares rallied.

The euro reached $1.2671, the highest since May 23, before trading at $1.2631 as of 1:36 p.m. in Tokyo, 0.9 percent higher than the June 8 close in New York. It jumped 1.1 percent to 100.59 yen. The dollar added 0.2 percent to 79.64 yen.

The MSCI Asia Pacific Index of shares advanced 1.8 percent.

Seven months after winning a landslide victory, Spanish Prime Minister Mariano Rajoy was forced to abandon his bid to recapitalize banks without external help. Foreign investors had cut holdings of the nation’s debt amid concern banks’ bad loans may overwhelm public finances, driving borrowing costs to near euro-era records.

Futures traders had increased their bearish bets on the euro to an unprecedented level, according to figures from the Washington-based Commodity Futures Trading Commission. The difference in the number of wagers by hedge funds and other large speculators on a decline in the euro, so-called net shorts, compared with those on a gain was 214,418 on June 5, the most on record going back to 1999.

“The growth outlook for most of the euro area is already bleak,” Guillermo Felices, head of European currency strategy in London at Barclays Plc, and Yuki Sakasai, a New York-based currency strategist, wrote in a research note. “One way to spur growth would be the ECB easing to weaken the euro. Otherwise, without growth, the euro will remain under pressure.”

Euro Strength Seen by Stiglitz Removing Greek Debt

Rather than a euro failure, an orderly Greek exit from the currency has Nobel laureate Joseph Stiglitz and Nomura Holdings Inc. chief strategist Jens Nordvig predicting a stronger and more stable monetary union.

While Societe Generale SA suggests that the euro might break up because of the cost of Greece’s departure, the nation accounts for just 2.3 percent of the 17-nation trading bloc’s gross domestic product. It also has 356 billion euros ($450 billion), or 4.3 percent of the region’s total debt, according to data compiled by Bloomberg. The area’s trade deficit last year would have been a surplus without its weakest member, according to European Union data.

Foreign-exchange markets display little evidence of the euro being dismembered. The currency trades 53 percent above its record low of 82.30 U.S. cents in October 2000. Bond yields of Austria, Belgium, Finland, France, Germany and the Netherlands have fallen to record lows, as investor demand for their debt increases. Removing Greece from the euro would reduce the bloc’s debt-to-GDP ratio to 85.5 percent from 87.3 percent.

Aussie Set for Biggest Drop This Year on RBA Easing Bets

The RBA cut its key rate by 50 basis points, or 0.5 percentage point, to 3.75 percent on May 1. Governor Glenn Stevens cited economic conditions that “have been somewhat weaker than expected” after the RBA decision, which most economists surveyed by Bloomberg News predicted would be a quarter-percentage-point reduction in borrowing costs.

Interest-rate swaps data compiled by Bloomberg show investors are betting that the RBA will lower its benchmark rate to 3 percent by November, matching 2009’s all-time low. There’s more than a 35 percent chance of the rate declining to 2.75 percent or lower, the data indicate.

The RBA sees average growth of 3 percent in 2012, down from a February estimate of 3.5 percent, according to its quarterly monetary policy statement released today. Consumer prices will rise 2.5 percent in the year to December, from a previous prediction of 3 percent. Underlying inflation is predicted to be at 2.25 percent from a previous 2.75 percent, the central bank said. The estimates are based on the overnight cash rate target remaining at 3.75 percent, it said.

The Australian dollar’s relative strength index versus the greenback was at 41 from 56 on April 27, nearing the 30 level that some traders see as a sign the currency may be about to reverse direction.

Both the Australian and New Zealand currencies fell yesterday after data showed growth slowed in U.S. services industries, curbing demand for risk assets.

FNP SQUAWK (3rd May 2012)

EUR
The EUR continued to decline vs. its main currency counterparts on expectations that Mario Draghi will signal that more stimulus is needed to tackle the eurozone's debt crisis. The EUR/USD pair fell significantly in Wednesday's trading session. The EUR/USD is currently lower this morning by 0.11 percent at $1.3144. The euro is also trading lower vs. the JPY this Thursday morning. The ECB is set to keep rates unchanged at the historical low of 1 percent today. There will be the Spanish auction of three-year and five-year notes in the coming hours. The euro is also lower due to weak economic figures from the region yesterday.

USD
The U.S. dollar is trading higher against most if its main peers ahead of a decision by the European Central Bank to keep rates unchanged at 1%. This is due to the weakness of the European economy as of now. The gains for the greenback come on the back of pessimistic data from the eurozone yesterday. The inconsistent data from the leading economies continues to drive traders back to the safe-haven dollar. The GBP/USD pair is down this morning, while the dollar is also up vs. the JPY, AUD and EUR.

GBP
The British pound climbed against the euro in response to a report showing U.K. construction output was better-than-forecast. The GBP also gained in response to yesterday's poor employment and manufacturing data from the eurozone. The GBP/USD pair is trading a touch lower right now. This is after hitting an 8-month higher on Wednesday. The GBP/USD could actually rise in the next few hours, despite the slight dip in the pair this Thursday morning.

Crude Oil
The price of crude oil slid to its lowest level in 2 weeks yesterday, as was predicted in the Daily Analysis of 02052012 that stated "Look to open Put options in crude oil during the current trading day." With rising U.S. stockpiles, U.S. employers adding fewer jobs than anticipated last month and with higher unemployment in Germany, it is no wonder that oil is trading so bearishly. As inventories continue to rise, traders become unsure about the global recovery. The contract plummeted yesterday and crude is also trading lower this morning at $105.12. Positive economic releases today are required in order to drive oil prices higher. Expect another day of bearishness for crude, as pessimism grips the markets.

GOLD
Gold slid yesterday due to negative economic data from the U.S. and Germany. This pushed traders to alternative assets, which in turn made the yellow metal a loser. The declines were predicted in the Daily Analysis of 02052012 that said "Going short on the gold binary option could bring a lot of profit today." Gold's losses continue this morning on a rising dollar and due to global economic uncertainty. The precious metal is currently trading lower by $5.65 at $1,648.35.

Yen Advances as Slower U.S. Growth

The yen rose against most of its major counterparts after the U.S. economy grew less than forecast and Standard & Poor’s cut Spain’s credit rating, adding to concern Europe’s debt crisis is worsening.

The yen also gained amid concern new Bank of Japan stimulus won’t be enough to boost the nation’s growth. Higher-yielding currencies including New Zealand’s dollar and Mexico’s peso climbed versus the U.S. dollar after slower growth in first- quarter gross domestic product revived bets the Federal Reserve won’t be quick to abandon efforts to support the economy.

The BOJ decision “was fairly disappointing, so the temptation to sell the yen was weakened,” said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in New York. “Slightly disappointing data in the U.S., as long as it’s not too disappointing, is risk-supportive because you have hope for quantitative easing.”

The yen strengthened 0.7 percent to 80.45 per dollar at 12:39 p.m. in New York, extending its weekly rally to 1.3 percent. It reached 80.42, the strongest level since April 17. The Japanese currency advanced 0.4 percent to 106.60 per euro and touched 106.16, the strongest since April 18. The euro rose 0.2 percent to $1.3250, gaining 0.2 percent this week.

Snapshot (FXCM Desk) - (25th Apr, 2:00am)

Just sharing a quick snapshot of what FXCM are seeing over at their desk as of 25th April 2012, 2:00am (Singapore Time).

Terrific Tuesday!!!

JPY
The yen made impressive gains versus all 16 of its major currency counterparts in response to political instability in both Holland and France, which is decreasing the likelihood that the European debt crisis will be contained. The biggest gainers have obviously been safe-haven assets. The JPY climbed vs. the dollar and euro ahead of Dutch Prime Minister Mark Rutte speaking before parliament today, following his cabinet’s resignation yesterday. The JPY climbed 0.3 percent to 106.44 per euro. The USD/JPY pair has slid more than 0.3 percent this morning to 80.92 yen.

CAD
The Canadian dollar made impressive gains against a majority of its peers yesterday on speculation that better growth will lead to higher interest rates. However, the CAD has lost some steam this morning versus its U.S. and Japanese currency counterparts, as growing instability in Europe has increased demand for haven currencies. The USD/CAD pair has slid 0.1 percent in the latest trading to C$0.9904. Going short on the USD/CAD pair could yield high returns today.

AUD
The Australian dollar declined as bond yields sank and consumer inflation slowed in the first quarter. This has led many analysts to the conclusion that the central bank will decrease borrowing costs. The AUD/USD pair is trading lower by about 0.6 percent this morning at the $1.0258 level. The consumer price index rose 0.1 percent in the first quarter versus the 0.6 percent forecast. The RBA has signaled that it is willing to lower rates from 4.25 percent to bolster the Australian economy. The political uncertainty in Europe has led to limited demand for the Aussie. Therefore, opening Call options for the AUD/USD pair looks to be the wise choice among investors this Tuesday.

Global Economic Calendar (25-April-2012)

Global Economic Calendar for 25th April 2012
**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (24-April-2012)

Global Economic Calendar for 24th April 2012
**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (23-April-2012)

Global Economic Calendar for 23rd April 2012
**Time is with respect to Singapore Time (GMT+8:00)

Euro Weakens Against Dollar on Funding Concern

The euro weakened against the dollar and pared an advance versus the yen as concern that European nations face difficulty funding debt damped demand.

Europe’s shared currency fell as yields on Spanish 10-year benchmark bonds and French five-year debt rose at auctions, fueling speculation on credit downgrades. The dollar climbed versus the yen as Bank of Japan officials signaled they’ll keep acting to weaken the currency. The greenback advanced against all its major counterparts except the pound and the Taiwanese dollar as weekly U.S. jobless claims were higher than forecast.

“Auction results over the past two weeks show that European sovereigns are still able to place paper, but until there is underlying economic growth, investors are going to continue to demand steep yield premiums for the peripherals and even for France,” said Greg Anderson, the North American head of Group-of-10 nations currency strategy at Citigroup Inc. in New York. “People are building yen positions in anticipation of further easing next week.”

The euro declined 0.1 percent to $1.3106 at 9:26 a.m. New York time. The 17-nation currency was up 0.2 percent to 106.81 yen, after earlier rising as much as 0.7 percent. The dollar appreciated 0.3 percent to 81.49 yen.

Global Economic Calendar (20-April-2012)

Global Economic Calendar for 20th April 2012
 **Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (19-April-2012)

Global Economic Calendar for 19th April 2012

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