FOREXYARD: Forex News Blog | |
- German Factory Orders Sign of Future Growth
- Is it Time to Buy a House in Canada?
- British Housing Market Expanding
- “Risk-Off” with Euro Falling and Chinese Interest Rate Increase
- Portugal Rating Downgrade Sparks USD Buying
- Russian Ruble’s Climb Jolted as Oil Depreciates
- Australia Holds Rates Steady, Trade Surplus Rises
- Swiss Economy Slowing Domestically
| German Factory Orders Sign of Future Growth Posted: 06 Jul 2011 06:39 AM PDT
With the rate of decline across the manufacturing sector these past two months, a bullish report from Germany on factor orders gave some cause for optimism amid a gloomy day of ratings downgrades and risk flight. While the EUR continues to get punished by a recent downgrade of Portugal by Moody's, it saw a weak uptick immediately following Germany's report on its demand for manufactured goods. Though not likely enough to deter investors from seeking safety, the news does portray a region rebounding from a manufacturing slump that some feared would mute the recent rises seen across the global economy. One figure may not turn the tide, but the news is enough to have some investors awaiting further data before jumping ship. Read more forex trading news on our forex blog. |
| Is it Time to Buy a House in Canada? Posted: 06 Jul 2011 06:33 AM PDT
The number of permits issued for the start of construction in Canada rose sharply in June, trouncing pessimistic market forecasts. The figure came in with a 20.9% rise, month-on-month; well beyond the expected 5.1% growth. The news is a clear sign that Canadians are seeking to invest in capital projects, likely to drive the value of real estate higher in the coming months. So far, the Canadian dollar (CAD) has seen only mild growth, muted by a return of risk aversion this week. A decline in oil prices has also created some bearish pull on the Loonie, preventing the northern giant from profit from its bullish capital growth. Should we witness an investment flow into the housing market in Canada, the CAD could see some booming strength later in the year. Read more forex trading news on our forex blog. |
| British Housing Market Expanding Posted: 06 Jul 2011 06:29 AM PDT
The British housing sector has posted several positive gains these past few trading days. This morning's news out of the Halifax Bank of Scotland reaffirmed the trend with a 1.2% rise in its house price index (HPI), beating forecasts that called for a meager 0.1% growth. Construction price inflation in the UK came in as expected Monday, leading several analysts to assume that housing may be stabilizing in Great Britain. A home equity withdrawal figure also came in above forecasts the same day. The news bodes well for Britain which has been battling a structural deficiency in its labor market that has caused rampant downturns in the nation's economy these past several years. As the housing market picks back up, traders may see heavier investment flows to the UK which should pick the help bolster the value of the pound (GBP). Read more forex trading news on our forex blog. |
| “Risk-Off” with Euro Falling and Chinese Interest Rate Increase Posted: 06 Jul 2011 04:27 AM PDT
The euro is down after Europe woke up to news that Moody's cut Portugal's credit rating by four levels to junk status below investment grade, capping last week's rally in risky assets. An interest rate increase by China fueled the euro selling environment. Euro zone Q1 GDP came in as expected at 0.8% and German factory orders handily beat expectations but markets were firmly focused on yesterday's downgrade by Moody's, the first major rating agency to label Portugal's credit rating below investment grade. The euro quickly fell and retraced 50% of its move that began with last Monday's low. Worries of contagion into Ireland and Spain have also dragged down European equities with the DAX down -0.30% and the FTSE 100 lower by -0.78%. The pressure is on the euro a day before the ECB is expected to hike interest rates by 25 bps tomorrow as the ECB once again attempts to prove its inflation fighting reputation. But now growth is lagging in the euro zone and yesterday's PMI data showed a slowing services sector, a negative for the euro. EUR/USD initial support is 1.4340 with the next test at the rising support line from the May 23rd low which comes in today at 1.4140. The other story this morning was the 25 bps interest rate increase by the People's Bank of China, the central bank's third rate hike this year. The one-year deposit rate now stands at 3.50% and the one-year lending rate was also lifted 25 bps to 6.56%. Talk of a hard landing in China is possible as inflation pressures continue to rise. In May inflation registered 5.5% though China has made it a goal to take inflation back down to 4%. The interest rate hike could weigh on the dollar block currencies (AUD, NZD) that rely on China for much of its growth. Read more forex trading news on our forex blog. |
| Portugal Rating Downgrade Sparks USD Buying Posted: 06 Jul 2011 12:51 AM PDT
The rebound in the "risk-on" trade ended yesterday with a resumption of the European debt crisis. Moody's was the spoiler in both the morning hours and the North American session after it downgraded Portugal's government bond rating to junk, snapping a 5-day wins streak for US equities and sending the euro lower. Today's US services PMI is the headline event and a disappointing number may help to shift market sentiment in favor of the USD. Today's Economic Data Events: GBP – Halifax HPI m/m – 07:00 GMT EUR – German Factory Orders – 10:00 GMT USD – ISM Services PMI – 14:00 GMT JPY – Core Machinery Orders m/m – 23:50 GMT Read more forex trading news on our forex blog. |
| Russian Ruble’s Climb Jolted as Oil Depreciates Posted: 05 Jul 2011 12:45 PM PDT
The value of Russia's ruble (RUB) against the US dollar (USD) felt its first decline in over a week this morning as oil prices came tumbling yesterday. With oil being the leading export-driven revenue in Russia, its value tends to have significant effect on the nation's currency values; which is why traders saw the USD/RUB and EUR/RUB move upwards by about 0.2% after a jolting downturn in oil values was witnessed Monday evening. A mild decline, granted, but the suddenness of the move had forex traders eyeing commodity pricing data ahead of a turbulent news week. Bloomberg analysts highlighted China's central bank statement that it would maintain a "prudent" monetary policy to address its inflationary concerns as a key driver in the decline of oil prices yesterday. Read more forex trading news on our forex blog. The move is expected to dampen oil demand in the US and China, which speculators have taken as a cue to sell the black gold. Russian currency values were not the only thing affected, moreover. Russian government bonds also fell, dropping the ruble Eurobond yield by approximately one basis point. Should oil prices continue to falter, ruble traders may continue to see some bearishness. |
| Australia Holds Rates Steady, Trade Surplus Rises Posted: 05 Jul 2011 12:39 PM PDT
The Reserve Bank of Australia (RBA) held their short-term interest rates steady at 4.75% this morning, meeting analyst expectations. The value of the Australian dollar (AUD) was largely affected in a bizarre neutral fashion. The currency appears to be holding off on significant shifts as news from its neighbors comes in over the next few days. Analysts are speculating that a fall in Chinese yuan (CNY) values may drop the Aussie, as could a hike in New Zealand's interest rates. But for now the Aussie seems to be holding its recent losses in anticipation of a further decline. Forex traders looking for a gamble may see this as an opportunity to jump into a new trend before it really takes off. |
| Swiss Economy Slowing Domestically Posted: 05 Jul 2011 12:35 PM PDT
Economic data released out of the local economy in Switzerland lately has shown a rising sluggishness affecting several sectors. Monday's publication of retail sales data showed a sharp downturn in consumer spending, as well as domestic demand for retail goods. Expectations for Thursday's inflationary CPI data are also set to reveal a 0.1% decline in growth. The news has done little to affect the value of the Swiss franc (CHF), however, as traders continue to flock to the Swissie as a store of value during the choppy trading sessions of these past several days. |
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