FOREXYARD: Forex News Blog | |
- Swedish Central Bank to Open the Books
- Sterling Volatile after Moody’s Comments, Yen on the Rise
- G10 and EM Central Bank Meetings
- New Zealand Rate Statement on Tap Today
- Japan Publishes Positive Financial Growth
- US Consumer Credit Climbs $6.2B in May
| Swedish Central Bank to Open the Books Posted: 08 Jun 2011 05:43 AM PDT
In following with the trend of a more open and transparent central bank, the Riksbank will begin to publish macroeconomic indicators on its website. Two new inflationary readings will be released, along with resource utilization of and wage estimates. While some of the data is collected and published by others (Eurostat and Statistics Sweden), any new data and source providers are a step in the right direction for openness of the Swedish central bank, especially for those who trade the Swedish krona (SEK) for forex macro. The trend of increased transparency from the world's central banks was helped when Federal Reserve Chairman Ben Bernanke held his first press conference in April, a format that has been long implemented by the European Central Bank. Currently the Riskbank does not hold press conferences, only releasing meeting minutes from the Executive Board Monetary Policy meetings. Read more forex trading news on our forex blog. |
| Sterling Volatile after Moody’s Comments, Yen on the Rise Posted: 08 Jun 2011 04:55 AM PDT
The dollar was gaining versus the majors as Europe absorbed Ben Bernanke's comments from yesterday. The Aussie dollar is the weakest against the USD with sterling not too far behind. A lack of data releases on the economic calendar today will have traders keying in on the upcoming central bank meetings, the most heavily scrutinized will be that of the ECB. Sterling was down on the day against the dollar after the wires showed a Moody's official saying Britain's top credit rating could come under review if economic growth continues to deteriorate and if the fiscal program goals fall short. While this isn't much different from the rating agency's previous stance that was proclaimed in March, the sharp drop in cable shows how sensitive the forex trading market has become to the rating agencies moves. More weakness could be in store for cable as a break of the rising support line at 1.6350 could spur losses to the June low at 1.6280. The Australian dollar is weaker across the board a day after the Reserve Bank of Australia held its base interest rate at the current level and appeared less hawkish than expected. AUD/USD support is seen at 1.0585 with the potential for further declines back to the May low at 1.0440. Intervention talk is floating through the wires as the USD/JPY made its way below the 80 yen mark in overnight trade. The pair is trading at its lowest level since early May but volatility versus both the dollar and in the crosses is far from its pre-intervention levels since mid-March. The euro is off both against the dollar and in the crosses. German economic data was not supportive with a smaller than expected trade balance and weaker than forecasted industrial production numbers. Euro pairs may see a bit more volatility as tomorrow's ECB meeting nears. Market expectations are for Trichet to chime in with the phrase, "strong vigilance", the market's code for an expected rate hike in the July ECB meeting. Odds are in favor of this happening, though there will be plenty of contrarians out there should Trichet leave those key words out of his speech tomorrow. While market positioning is not as stretched in favor of the euro as it was in May, a slide in the EUR/USD could extend to 1.4410-20, a 38% retracement from the May to June move higher. The 50-day moving average also hovers in this area. Read more forex trading news on our forex blog. |
| G10 and EM Central Bank Meetings Posted: 08 Jun 2011 12:28 AM PDT
The greenback was once again on its back foot following Ben Bernake's speech yesterday which stressed the Fed's commitment to keep inflation low as well as a loose US monetary policy in the mid-term. Unsurprisingly the Fed chief failed to hint at a possible QEIII which put the S&P 500 back in the red for the fifth consecutive trading session and had the USD trading on its lows at the NY close. The decline in both equities and the US dollar highlights the pullback in risk aversion by global portfolio managers following the disappointing string of US economic data. For the remainder of the week traders will shift their attention to the glut of central bank meetings both in the G10 (NZD, GBP, EUR) and in the emerging markets (BRL, PLN, IDR, KRW). Today's Economic Data Releases: EUR – German Industrial Production – 10:00 GMT Oil – Crude Oil Inventories – 14:30 GMT USD – Beige Book – 18:00 GMT NZD – Official Cash Rate and RBNZ Rate Statement – 21:00 GMT Read more forex trading news on our forex blog. |
| New Zealand Rate Statement on Tap Today Posted: 08 Jun 2011 12:20 AM PDT
The Reserve Bank of New Zealand (RBNZ) will be publishing its decision on short-term interest rates later in today's trading session. The report and subsequent rate statement are scheduled to be announced around 22:00 GMT Wednesday. Interest rates have gained prominence in many investment circles lately with attention shifting towards the differential between the United States and Europe. What have gone mildly unnoticed are the shifts in sentiment towards rate hikes in the Pacific economies since early March. Many analysts at the beginning of the year were expecting hawkish movement by such Pacific giants as Australia and New Zealand, yet the mood appears to have shifted to hesitation and doubt. Today's rate statement may shed light on why this may be and is worth paying attention to. Read more forex trading news on our forex blog. |
| Japan Publishes Positive Financial Growth Posted: 08 Jun 2011 12:16 AM PDT
Three reports out of Japan this morning have given cause for traders to heighten interest in the Japanese yen. The first two were the 12:50 GMT publications by the Bank of Japan (BOJ) regarding its annualized bank lending level and M2 money stock reports. While bank lending posted a decline of 0.7%, it was better than the previous month's decline of 0.9% and thus reflects a positive movement with a bearish twist. The M2 money stock report revealed a basic growth of 2.7%, perfectly in line with expectations. The third report was a significant growth to 0.55T yen in Japan's Current Account, as published by Japan's Finance Ministry at 12:52 GMT. These three figures together have given yen traders a reason to feel confident in their investments' strength. The yen may gain from this news but traders should bear in mind that a movement towards a Euro-centric view is beginning to overshadow such fundamental data reports. Read more forex trading news on our forex blog. |
| US Consumer Credit Climbs $6.2B in May Posted: 08 Jun 2011 12:08 AM PDT
The US Federal Reserve released data yesterday which showed the level of outstanding consumer credit grow from last month's $4.8B to a whopping $6.2B for the month of May. Expectations were for a climb to $5.2B from the previous month. The Fed's Consumer Credit report is only a mild indicator which has weak correlation to consumer confidence levels across the United States. Increases in consumer debt levels suggest a higher willingness by banks to lend and an eagerness to spend by Americans. The correlated growth in yesterday's Economic Optimism report by IBD/TIPP supports this growth in American consumer spending levels for the previous month as we head into June. Read more forex trading news on our forex blog. |
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