FOREXYARD: Forex News Blog | |
- Will British Inflationary Data Hold as Expected?
- Australia’s Trade Surplus Diminishing? Look Again
- Japanese Industry Lagging Behind
- European Bourses Tumble on Greek Concerns
| Will British Inflationary Data Hold as Expected? Posted: 12 Sep 2011 07:08 AM PDT
Tuesday's publications of heavy inflationary figures from Great Britain are by and large forecasting stability. Set to be released tomorrow are the data on CPI, RPI, and DCLG's HPI. The market is already pricing in a solid uptick in British pound (GBP) values, highlighting a general mood of agreement with the forecast for stability. Britain's core consumer price index (CPI) is the only figure anticipating a decline (albeit of a meek 0.1%), while the house price index (HPI) being released by the Department for Communities and Local Government (DCLG) is foreshadowing a much shallower decline in home values from last month. The retail price index (RPI) is expected to stay at 5%, and the nominal CPI data is set for an increase in similar size to the decrease predicted to come in the core data. Will traders be surprised after tomorrow's inflationary releases? Read more forex trading news on our forex blog. |
| Australia’s Trade Surplus Diminishing? Look Again Posted: 12 Sep 2011 07:06 AM PDT
The report out by the Australian Bureau of Statistics this morning gave traders the impression of a country facing significant shortfalls in its export capabilities. Australia has been operating on a trade surplus consistently since mid-2010, with the exception of April 2011 data. It seems many think the nation is approaching another deficit as the abnormally high Australian dollar (AUD) is expected to gouge exports. The data was anticipated to reveal a surplus of roughly A$1.91B, up from last month's A$1.82B. With today's report beating last month's reading with a A$1.83B, it seems to have diminished some traders' appetite for the AUD, but oddly considering it was better than the previous month's figure. Market expectations were priced in ahead of time, making the better-than-previous month's data serve as a negative when it should have been otherwise. Read more forex trading news on our forex blog. |
| Japanese Industry Lagging Behind Posted: 12 Sep 2011 07:01 AM PDT
An index which measures the change in industry activity in Japan revealed this morning that the island nation may be experiencing a tough economic downturn. The Tertiary Industry Activity Index, released by the Ministry of Economy, Trade and Industry (METI), reported a 0.1% decline this month, down from last month's 1.8% growth. Expectations were for a rise of approximately 0.3%, suggesting the ministry was anticipating a sluggish growth period. The contraction, though, seems to have put some pressure on the already-burdened industrial sector of the global economy. How this will factor into today's JPY trading is already being decided, with sizeable moves in a bearish direction. Read more forex trading news on our forex blog. |
| European Bourses Tumble on Greek Concerns Posted: 12 Sep 2011 06:03 AM PDT
The EUR tumbled in the Asian trading session both versus the USD and in the crosses but later recovered from its lows. An escalation of the Greek debt crisis is taking place as events both over the weekend and today is intensifying the crisis. An explosion at a French nuclear power plant also added to the negative market sentiment. French banks have been hit particularly hard with fears of a credit rating downgrade weighing on the financial. European bourses are trading deep in the red with the French CAC 40 leading the way down by-4.85%. Expectations of a downgrade by Moody's is weighing on the financial sector as the banks are said to have some of the largest exposure to Greek banks with exposure at EUR 65 bn according to the Bank for International Settlements. It appears the Greek debt crisis has intensified over the weekend with comments coming from sources from both the G7 and within German Chancellor Merkel's coalition hint at Europe's doubtfulness that Greece will be able to stave off a default. Yields on the Greek two-year note climbed above 60% today to a new all-time high while safe haven German 10-year bund yields fell to a record 1.709%. Speculators have now turned bearish on the EUR with the most recent CFTC Commitment of Traders Report showing futures traders net short -7,683 contracts. At the opening of trade this week in Asia the EUR/USD gapped lower and fell as low as 1.3500 but the pair has since recovered to close the gap and trade back at 1.3675. This is an important level as the price coincides with 61% Fibonacci retracement from the Jan to May move as well as the previous support line from the May and July lows. The next identifiable resistance is back at the broken trend line at 1.3990. Should the pair fail to move above this level the next support level is the pivot from February 14th at 1.3430.
Read more forex trading news on our forex blog. |
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