FOREXYARD: Forex News Blog | |
- After Solid Inflationary Data, Traders Await Tomorrow’s Investment News
- Canadian New Motor Vehicle Sales Decline 1.1%
- More British Surveyors Reporting House Price Decline
- Japanese Industrial Production Revised Above Expectations
- EUR/SEK – Breakout Higher
- Euro Advances on Chinese Data
- UK and US Inflation Readings
| After Solid Inflationary Data, Traders Await Tomorrow’s Investment News Posted: 14 Jun 2011 07:29 AM PDT
Today's publication by the Great Britain and the United States regarding their level of consumer and producer inflation (CPI and PPI, respectively), and US-based retail sales, had many investors seeking higher yielding assets. The news spurned calls for growth, especially as consumer spending in the US shrank less than forecast. After digesting the bullish inflation reports, investors now appear to be anticipating tomorrow's CPI and TIC Long-Term Purchases data out of the US. The inflationary figure is expected to highlight the same solid growth patterns as today's news, but the long-term purchases investment data is forecast to show a near-doubling of foreign investment in US-based long-term securities. The report could be highlighting a downturn in US investments overseas, or a shift into US securities by foreigners. Either way, more capital is flowing (or staying) in the US, which should help the USD in the short- to mid-terms. Read more forex trading news on our forex blog. |
| Canadian New Motor Vehicle Sales Decline 1.1% Posted: 14 Jun 2011 07:24 AM PDT
A report published by Statistics Canada this morning revealed a downturn in new motor vehicle sales by approximately 1.1%. The figure mildly surprised investors as expectations were for a monthly growth of 1.8%, mildly down from the previous month's 2.0% growth reading. The news, however, does not seem out of touch with levels of investment, consumer spending and manufacturing output from across the globe. Canada's manufacturing and industrial sectors were seen in decline these past several weeks and it only makes sense for consumers to put off buying a new vehicle while gas prices continue to soar. Read more forex trading news on our forex blog. |
| More British Surveyors Reporting House Price Decline Posted: 14 Jun 2011 07:20 AM PDT
The Royal Institute of Royal Surveyors (RICS) published a report showing an increase in house price declines this morning. The RICS House Price Balance report gauges the level of a diffusion index based on surveyed property surveyors who were asked whether housing prices in their districts were rising or declining. Forecasts surrounding this report were anticipating a return of approximately 20% of surveyors reporting a price decline. When 28% of RICS surveyors reported a decline, investors took cues that the British housing sector may still be in a ragged state and began to push against the nation's currency in early trading. Read more forex trading news on our forex blog. |
| Japanese Industrial Production Revised Above Expectations Posted: 14 Jun 2011 07:15 AM PDT
Today's revised industrial production figures, published by the Japanese Ministry of Economy, Trade and Industry (METI) at 5:30 GMT this morning, revealed industrial growth coming in moderately above forecasts. Expectations were for growth of approximately 1.0%, but today's report revealed a 1.6% increase in Japanese industrials. The Japanese yen has been earning support these past several trading weeks as investors weigh risk sentiment in the global market. The allure of the yen's low interest rates have made it a prominent store of value for forex traders. This news, coupled with the Bank of Japan's (BOJ) decision to hold rates near zero today, will likely continue to support this general sentiment. Read more forex trading news on our forex blog. |
| Posted: 14 Jun 2011 07:07 AM PDT
Following a period of consolidation and a subsequent breakout higher the euro is putting in solid technical gains in the EUR/SEK. Surprisingly the pair has broken out to the upside from a triangle chart pattern and is encroaching on 9.1500, the 61.8% Fibonacci retracement level from the late November to mid-November downtrend. A move above this level would then test the early December resistance of 9.1700. From this point a lack of resistance is found on the daily chart and thus the euro could continue to gain on the Swedish krona to the November high of 0.94275 in the mid-term. To the downside the EUR/SEK would find support at 9.1200 followed by the upper boundary of the triangle which comes in at 9.0000 as well as the lower boundary at 8.900. Additional support would be the April low at 8.8580. Read more forex trading news on our forex blog.
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| Posted: 14 Jun 2011 05:45 AM PDT
The US dollar was mostly lower at lunchtime in the European trading session after inflationary data was in line with consensus estimates in both China and in the UK. The euro was higher versus the majors after Chinese inflation was in-line with consensus forecasts at 5.5%. The fact that the numbers did not come in above expectations was a positive for both global equities and the euro. Stocks were able to shrug off an additional increase in Chinese bank reserve requirements as the Nikkei climbed 1% to finish the day while the German DAX is up a solid 1.5%. Economists expect further interest rate increases though a hard landing in the Chinese economy may be avoided. EUR/USD resistance looks to be at 1.4550 at the 61% retracement of last week's declines. Support is found at the overnight lows from Sunday at 1.4320. Sterling was bid after UK y/y inflation met economists' forecasts at 4.5%. Market talk of bringing forward UK interest rate expectations may be premature as some proponents attempt to piggy back on yesterday's hawkish comments by BoE MPC member Martin Weale. The BoE may maintain a loose monetary policy stance in light of the tepid UK economic recovery. As such, the last two days of gains for Cable may offer traders better levels at which to enter short. Resistance comes in at 1.6450 followed by the May 31st high at 1.6550. Read more forex trading news on our forex blog. |
| Posted: 14 Jun 2011 12:37 AM PDT
Yesterday's decline in the value of the USD was sudden and sharp. The euro and the pound rallied into the New York close and continued their gains early this morning in the Asian session. The moves higher by the European currencies are surprising given the lack of market moving events yesterday. Traders will now look to economic data from both the UK and the US for market direction. Today's Economic Data Releases: GBP – CPI y/y – 08:30 GMT USD – Retail Sales m/m – 12:30 GMT USD – PPI m/m – 12:30 GMT Read more forex trading news on our forex blog. |
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