*Daily Forex market overviews by MasterForex.com* - page 33
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Overview of the main economical events of the current day - 23/01/2013
Market is disappointed by Bank of Japan’s announcement
As expected, Bank of Japan agreed to a 2% inflation target, however the measures proposed to achieve it appear somewhat weak. While BoJ said it will shift to “open-ended asset purchasing method” (purchasing assets without setting a terminate date) in order to stop 2 decades of deflation, the program will kick in only in 2014 with no additional asset purchases planed for this year. Overall, the markets were disappointed and a ‘buy rumor, sell fact’ reaction was seen in USDJPY post-BOJ anoucement.
EUR showed some increase vs. USD after strong ZEW index data from Germany, which suggests that the largest European economy is revving up.
USD on the other hand was under pressure after the release of quite disappointing housing statistics and declining economic activity per Fed’s estimations. This allowed GBP to rise against the American currency even despite declining manufacturing orders in Great Britain.
Today watch out for lots of different statistics coming from all over from Eurozone which are likely to affect EUR. Also Bank of Japan is to publish its monthly report and given the market focus on JPY it is a safe bet to suggest that investors will follow closely the newsflow on the matter.
By MasterForex Company
Overview of the main economical events of the current day - 24/01/2013
IMF cuts global GDP outlook and sends EUR into downward spiral
The International Monetary Fund trimmed the growth outlook for the global economy from 3.6% in 2013 to 3.5% citing slow growth in Japan and continuing Eurozone recession as the main reasons. This allowed EUR to hit a weekly minimum vs. USD erasing the gains achieved after ECB head Mario Draghi announced that the worst part of the debt crisis is already behind.
UK jobless claims unexpectedly fell in December along with quarterly measure of unemployment, illustrating the resilience of the labor market in the face of a weak economic recovery. This provided some boost to the national currency allowing GBP to demonstrate gains on Wednesday.
Finally, the U.S. House of Representatives on Wednesday passed a Republican plan to allow the federal government to keep borrowing money through mid-May, clearing it for fast enactment after the top Senate Democrat and White House endorsed it. However the decision was widely expected by the market so there was no strong reaction to this news.
By MasterForex Company
Overview of the main economical events of the current day - 25/01/2013
YEN weakness continues; most majors fell against USD
Japanese Government officials put more pressure on the Yen. Early this morning, Japan Prime Minister Abe said that he wanted the Bank of Japan to achieve the inflation target of 2 percent as soon as possible with bold easing if necessary. Japanese Finance Minister Taro later said that government spending must be cut and new bond issuances in 2013 should be kept below tax revenue.
Domestic issues were not the only drivers for JPY weakness. Tensions surrounding territorial disputes with China worsened as a Chinese fishing boat was detained by Japanese authorities around the disputed islands. Further escalations in tensions could lead to protests in China as they had last year, which could hurt consumption of Japanese goods and the economy itself.
Strong Chinese HSBC Manufacturing PMI data likewise surprised markets, coming in stronger than expected and pushing the Japanese Yen lower across the board.
The British Pound fell further against the US Dollar, hitting 6-month lows as UK Prime Minister Cameron continued to defend the referendum on Britain leaving the European Union at the Davos summit. He emphasized that the UK was not turning its back on Europe, but he hoped to make the UK an engine for European growth. Tomorrow, the 4Q GDP in Britain will be the top news for the Sterling, and analyst estimates point to weaker growth figures than seen in 3Q.
Most majors in today’s session fell against the greenback except for the euro. Early in the session, EURUSD declined on a lower-than-expected French PMI report. Yet, the euro quickly retraced as the German PMI Manufacturing and Service report beat median forecasts by analysts polled by Bloomberg News. Tomorrow, German IFO data will be the top news for the EURUSD.
By MasterForex Company
Overview of the main economical events of the current day - 28/01/2013
Busy week ahead with lots of statistics planned for release
On Monday expect important statistics from both Eurozone and USA. British housing price index data for January and December retail sales from Germany will start the day, followed by M3 numbers from Eurozone. Next, turn your eyes on USA, which is to publish manufacturing orders and some housing stats.
Tuesday will bring consumer confidence numbers from Germany and lots of really important statistics from USA, including S&P/Case-Shiller housing indexes, consumer confidence and crude oil reserves. Finally, Japan is to publish retail sales data for December, which is likely to be under investors' scrutiny.
While there is some data coming from Eurozone and UK on Wednesday, USA news is to dominate – jobless numbers and GDP figures will start the flow, which to continue with FOMC press-conference – that is a "perfect storm" of US stats coming in one day, so expect increased USD volatility.
Thursday is going to be quite a slow day in terms of releases, providing market with some time to digest Wednesday's numbers. Consumer confidence index and some import-export statistics from UK, Japanese December wages and January preliminary retail prices index from Germany are among the most important numbers. Also look out for US jobless claims, although these figures are unlikely to move the markets given the statistics heavy Wednesday.
Finally, Friday looks extremely light figures-wise with only consumer confidence index for January coming from the University of Michigan.
By MasterForex Company
Overview of the main economical events of the current day - 29/01/2013
JPY finally stops its decline, while GBP plummets on disappointing statistics
JPY has finally demonstrated some growth vs. most of the currencies after 11-week long decline – the longest fall in history. Investors seem to have decided that Japanese currency is already too weak which allowed the currency to demonstrate some gains.
USD showed some healthy gains as well as investors are getting ready for 2-day FOMC meeting expecting positive news.
GBP, on the other hand, declined rapidly after disappointing housing prices index figures, that show no change in real estate prices in December on the back of decrease in 6 previous months. Also there was some data released showing that UK economy is falling into recession again, which further pressured the currency.
By MasterForex Company
Overview of the main economical events of the current day - 30/01/2013
USD declines against most of major currencies.
EUR demonstrated quite a performance on the back of European stock exchanges reaching a 2-year high due to the hints that the financial crisis might be ending in the region.
JPY has also continued its climb against USD and there were two main reasons for that: first of all, as we said before, JPY already trades at levels that are too low. Second reason is USD’s weakness that appeared due to disappointing consumer confidence numbers from USA.
Another factor that put some pressure on USD is the upcoming FOMC meeting and it looks like investors are playing “buy on rumors, sell on news” game, shorting the currency just before the meeting despite buying it a day before.
Finally, GBP showed some growth vs. USD fueled by Bank of England Head’s comments that UK economy’s growth rates will speed up, which calmed market participants to some extent.
By MasterForex Company
Overview of the main economical events of the current day - 31/01/2013
USD continues to be under pressure
USD reached a new low against EUR since November 2011 due to positive economic news from Eurozone, suggesting increasing confidence in union currency. At the same time, investors play the rumor that FOMC will be forced to continue its interventions with the US economy and they have a good reason: according to FOMC, US economic activity is slowing down. Sure, officials commented that the reason for that are the weather conditions and some other temporarily factors, however it looks like the market didn’t buy it and punished the currency. Finally, disappointing GDP data from the States (a 0.1% decline in 4Q vs. expected 1.1% growth) sent USD into a free fall, allowing JPY to show some gains vs. dollar.
EUR on the other hand was enjoying some healthy gains on positive data release: consumer confidence is up reaching 89.2 compared to the consensus of 88.2. Even disappointing statistics from Spain which showed that the recession became deeper in the region in 4Q were not able to stop the growth.
By MasterForex Company
Overview of the main economical events of the current day - 01/02/2013
EUR continues to test for new maximums
EUR demonstrated further gains against USD thanks to positive market sentiment that suggest that the worst part of debt crisis is over. And while retail sales in Germany declined below expectations, a positive surprise from jobless data was enough to offset the disappointment. Looks like market participants expect the labor market stabilization to translate into higher retail sales in the coming months.
Positive surprises from UK - consumer confidence data (-26 vs. expected -27) and increased Nationwide Housing Prices Index – provided GBP with that much needed fuel for growth, allowing British currency to show gains versus the dollar.
However, USD did rise against JPY yesterday, and even disappointing labor market figures from USA did not stop the growth of USDJPY as strong Chicago PMI data calmed the markets. Watch out today for jobless claims and personal disposable income numbers from USA as there are likely to affect the markets.
By MasterForex Company
Overview of the main economical events of the current day - 04/02/2013
EUR rises on positive statistics; big policy meetings this week
The dollar hit fresh 14-month lows against the euro on Friday as U.S. jobs data reinforced expectations that the Federal Reserve would maintain its monetary easing program. The US Department of Labor said the economy added 157,000 jobs in December, slightly below expectations for a 160,000 increase, while the unemployment rate ticked up to 7.9% from 7.8% in November. November and December nonfarm payrolls figures were revised sharply higher to 247,000 and 196,000 respectively. The single currency also found support after data showed that manufacturing activity in the euro zone improved in January, while inflation and unemployment stabilized, underlining the view that the crisis in the region has turned a corner. Meanwhile, separate reports showed that the rate of inflation in the euro zone fell to 2% in January from 2.2% in December, almost in line with the European Central Bank’s target, while the unemployment rate held steady at 11.7% last month. EUR/USD hit 1.3711 on Friday; the pair’s highest since mid-November 2011, before settling back at 1.3639. EUR/JPY hit a high of 126.97, the pair’s highest since April 2010, before settling at 126.55. The yen remained broadly weaker amid expectations that Japanese Prime Minister Shinzo Abe would keep up pressure on the Bank of Japan to implement more aggressive easing measures to combat deflation.
In the week ahead, investors will be anticipating the outcome of upcoming policy meetings by the ECB, Bank of England and Reserve Bank of Australia, while U.S. and U.K. data on service sector activity will also be in focus.
By MasterForex Company
Overview of the main economical events of the current day - 05/02/2013
EUR declines sharply on the back of a corruption scandal
EUR showed the largest fall vs. USD in 2 weeks as Spanish and Italian bond yields jumped up due to political uncertainty, which lead to a declining demand for the union currency.
All in all, EUR declined vs. most of the 16 major currencies fueled by the rumors, that Spanish Prime Minister might be force to resign after local press saying he was implicated in corruption schemes.
JPY declined to 93 vs USD – for the first time since may 2010 as market participants are waiting for ECB meeting, which is set for later this week.
GBP raised from its lowest in 15 months level against EUR as political shocks and rising bond yields made British currency relatively more attractive. Even published negative construction numbers, that suggest that construction is slowing down across the country for 3 months in a row, were not enough to keep GBP from rising against the union currency.
By MasterForex Company