Acetrader-Daily Market Outlook 25-11-2010
Market Review - 24/11/2010 21:20 GMT
Euro falls to 2-month low on worries over Irish debt problems
Despite euro's sideways trading in Asia on Wednesday, increasing concerns over eurozone debt contagion weighed on the single currency. Price extended recent decline to 1.3284 before staging a rebound on short-covering. The single currency briefly bounced to 1.3422 on the back of strength in European equities, however, renewed selling there pushed price lower in NY afternoon.
Although Ireland's four-year austerity plan was announced and the government would cut its budget by 15 billion euros, contagion fears continued to pressure euro. The adjustment included 10 billion euros in spending reductions and 5 billion euros in tax and revenue raising measures. Spending savings will be made up of current expenditure cut of 7 billion euros and capital investment by 3 billion euros.
In addition, Spain's economy minister, Elena Salgado said markets should focus on Spain's economic fundamentals such as its austerity measures and financial reforms. Elena Salgado reiterated that there is no risk Spain will need a bail out and added Spain's economy is very different from that of Greece or Ireland.
The greenback rebounded to 83.37 versus the Japanese yen in Asia on Wednesday after Tuesday's selloff to 82.78. Although the pair retreated, renewed buying interest at 82.94 lifted the pair again and the greenback reached an intra-day high of 83.66 in NY afternoon.
Cable staged a modest bounce to 1.5838 in tandem with euro after Tuesday's selloff. Although cable fell to 1.5742 later, the British pound rebounded briefly on short-covering after the release of U.K. GDP data which came in as expected at 0.8% q/q and 2.8% y/y.
US stocks rebounded strongly following the slump in the previous session. DJI ended the day up by 1.37% at 11187.
On economic front, U.S. durable good dropped unexpectedly by 3.3% in October whilst U.S. jobless claims decreased to 407,000 versus economist's forecast of 435,000 with upwardly revised 441,000 in the previous week. U.S. new homes sales data dropped by 8.1% to 0.283 million versus the expectation of 0.31 million.
Economic data to be released on Thursday include:
Japan Trade data, Germany Import price index, Swiss Payrolls, U.K. CBI distribution trade (U.S. is closed for holiday).
Questions and Answers
Article Tags:
www acetraderfx com
Dollar rebounds from a fresh eight-month low against yen on upbeat U.S. economic data
The single currency continued its descent this week and tumbled sharply to a 10 year-low against the yen and to a 6-month low against the greenback on speculation over the possibility of a Greece default and the resignation of European Central Bank executive board member and also its chief economist Jurgen Stark.
The single currency briefly rallied in European morning on Wednesday after German Constitutional Court rejected lawsuits aimed at blocking the country's participation in eurozone bailouts, easing worries about eurozone debt crisis.
Increasing worries about the Christian Democratic union's most beleaguered states sent the euro lower against the dollar on Monday for the fifth day straight to its lowest level since August 5.
Although dollar weakened broadly after release of worse-than-expected U.S. non-farm payrolls report as the gloomy data fuelled expectations of possible quantitative easing by the Federal Reserve at its next FOMC meeting later this month. The selloff in U.S. stocks triggered renewed risk-aversion activities and led to short-covering purchase of the greenback across the board in New York afternoon.
The Swiss franc rose against all its major counterparts on Wednesday as the Swiss National Bank has not recently signalled further intervention. Although the franc retreated as Swiss Economy Minister Johann Schneider-Ammann said it was still massively overvalued, the pair remained supportive as he also said Switzerland would have to keep living with the strong franc for some time.
The Forex currency market is a non-centralized exchange where banks, businesses, governments, investors and traders can trade currencies with one another. By "non-centralized" I mean there is no actual physical centralized exchange like the New York Stock Exchange or the Chicago Mercantile Exchange. Instead...
Forex quotes show the price of one currency evaluated in the price of the other one. The other name of the Forex quote is a currency rate at Forex market. It should also be noted that the quote is the measure for the value of other assets, such as goods and securities – bonds and stocks. Demand and supply make a strong impact on quotes formation.
The fully automated service sends an email confirmation in receipt of the amount and then processes the order. Among the reputed agencies to order foreign currency from is Pawnbroker.
Created by David Lambert, the CCI was first used as an indicator for determining reversal points in the Commodities Markets. It was then discovered to be very useful in the share and forex markets. It is based on the theory that all activities move under the influence of cycles. The Maxima (+100) and the Minima (-100) occurring at regular intervals. The CCI measures the speed of price fluxuations as determined by oscillators.
Credit card services are important to help your business increase sales. Consumers today are more comfortable than ever to pay in means other than cash. Plus, many customers don't keep a high volume of cash on hand. Credit cards allow people to pay back expenses over time.
The single currency continued its descent this week and tumbled sharply to a 10 year-low against the yen and to a 6-month low against the greenback on speculation over the possibility of a Greece default and the resignation of European Central Bank executive board member and also its chief economist Jurgen Stark.
The single currency continued its recent steep descent and tumbled on Thursday against all major currencies as ECB President Jean-Claude Trichet, whose 8-year term will end on October 31, said in ECB's monetary policy press conference that there is 'intensified downside risks' in European economy and inflation has remained elevated. Later in NY afternoon, euro extended its intra-day decline after Fed Chairman Ben Bernanke did not provide details of any new stimulus measures, however, he said 'Fe
The single currency briefly rallied in European morning on Wednesday after German Constitutional Court rejected lawsuits aimed at blocking the country's participation in eurozone bailouts, easing worries about eurozone debt crisis.
Increasing worries about the Christian Democratic union's most beleaguered states sent the euro lower against the dollar on Monday for the fifth day straight to its lowest level since August 5.
Although dollar weakened broadly after release of worse-than-expected U.S. non-farm payrolls report as the gloomy data fuelled expectations of possible quantitative easing by the Federal Reserve at its next FOMC meeting later this month. The selloff in U.S. stocks triggered renewed risk-aversion activities and led to short-covering purchase of the greenback across the board in New York afternoon.
Discuss this Article
