Acetrader-Daily Market Outlook 7-2-2011
Market Review - 04/02/2011 19:49 GMT
Dollar rallies broadly on surprised sharp fall in U.S. unemployment rate
The greenback rallied versus the Japanese yen on Friday as U.S. Treasury yields jumped after the key U.S. jobs report showed U.S. unemployment rate fell sharply in January to 9.0% versus previous month's rate of 9.4%, this was the lowest level since April 2009, painting a brighter picture for the U.S. economy.
Although the pair dropped briefly below Tuesday's 81.31 low to 81.10 immediately after the mixed U.S. jobs report, dollar swiftly rebounded n price later rallied to as high as 82.47 b4 stabilizing in late NY session. The benchmark U.S. 10-year treasury yields rose 11 basis points at 3.655% n 30-year treasury yields went up to a high of 4.74%. Eur/jpy, aud/jpy, gbp/jpy also rallied fm 110.77 to 112.06, 82.61 to 83.51 n 130.83 to 132.75 respectively.
Euro traded steadily after Thursday's selloff fm 1.3826 before key U.S. employment report in Asia on Friday. Although euro jumped to 1.3680 immediately after the much-awaited U.S. Jan jobs report showed nonfarm payrolls added only 36,000 jobs versus forecast of 108,000 due to the cold bad weather, traders quickly sold the single currency when they saw unemployment rate fell sharply from previous 9.4% to 9.0%, euro tanked to 1.3577 and eventually ratcheted lower to an intra-day low of 1.3543 b4 stabilizing.
The British pound moved sideways in Asia n briefly rose to an intra-day high of 1.6173 after stronger-than-expected U.K. house prices data. U.K. house prices unexpectedly rose by 0.8% (forecast was no change) in Jan. but fell by 2.4% (forecast was -3.0%) in the three months to Jan. compared with a year ago. Halifax economist Martin Ellis expected limited movement in house prices overall this year but said there are likely to be some monthly fluctuations with the risk on the downside. Later, despite cable's initial rebound to 1.6152 after the release of mixed U.S. jobs data, the pound also tumbled to 1.6036 in tandem with the single currency b4 recovering in NY mid-day.
Data to be released next week:
Australia retail sales, Japan leading indicator, Germany factory order, Canada building permit on Monday
Japan current account, economic watch DI, Swiss unemployment rate, Canada housing starts on Tuesday
Japan consumer confidence, Germany export/import data n trade balance, U.K. trade balance on Wednesday
Japan domestic CGPI, machine order, Swiss CPI, U.K. industrial production, manufacturing production, BoE rate decision, Canada new housing price, U.S. jobless claims, wholesales inventories, Fed budget on Thursday
Friday will be a holiday in Japan. Germany CPI, U.K PPI, U.S. trade balance n University of Michigan consumer confidence survey, Canada trade balance n export/import data on Friday.
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
