On Tuesday the trading session opening was marked with the dollar trading. Thus, Greek aid optimism influenced the market for a short time.? In the European trading session American currency narrowed its losses and ended the day strengthening against European opponents and remained neutral against the yen. It is obvious that investors have already taken into account the decision of European Union according to rumors, and their attention was switched to the U.S. fiscal cliff, which brought a lot of fear now.? The dollar was also supported by the US economic statistics published yesterday , most of which demonstrates positive dynamics. Total volume of durable orders is the same in October in comparison with September, it was better-than-expected by forecast, which expected its decrease by 1.2%? m/m, the consumer confidence rose in November ? the Conference Board Consumer confidence index showed? 73.7 after 73.1 in October, when it was expected only 73.0. Housing market statistics also confirms the housing market recovery ? according to the Federal Housing Finance Agency (the FHFC) house prices rose by 0.2% m/m and by 4.4% y/y, and S&P Case-Shiller report demonstrates rise in house prices in 20 megalopolises in the same month by 3% y/y. Regional data has some divergences? ? the production index conducted by the FRS Richmond in November increased to 9 from 7 earlier, the production index of the FRS Chicago decreased in October by 1.2% m/m, but increased by 5.9% per annum. Today there is only a few news. Housing market data for October will come out, which may demonstrate its decrease by 1.0% after increase +5.7% in the previous month.? The FRS Economic data of the regions (the Beige Book) will pe published soon, which? will bring information about the situation in the region. If talking about the nearest perspectives, we can assume that the dollar will be interesting only as a shelter-currency, and the invetors? attention will be drawn mostly by news about the negotiations of the US government about the budget problems.
EUR
On the last trading session investors concentrated their attention on the euro for a short time which was caused by the information about the new aid tranche for Greece. On Tuesday the Ministers of Finance of the EU, the ECB and the IMF came to a consensus about the new aid tranche for Greece and allocated 43.7 milliard euros to this country from the EFSF. What is more, it was announced that there is an intention to consider different measures in order to support Greece such as lower interest rate of Greece?s debt, reduce credit interest rates which had been provided by the EFSF, and also 10 years postponement of credit provided by the European Financial Stability Facility. Nevertheless, It didn?t bring risk seeking in the market, maybe because of the fear of budget problems in the USA, which is the most important problem now as it must be solved till by the end of current year. There was almost no news about the EU economy. Only France Consumer Confidence Index for November was published, which showed better results than expected. The Consumer Confidence Index remained unchanged, at the level 84 as in October when it was forecasted its decrease to? 83. Today there are more news ? the money supply data is going to come out , the aggregate M3 is expected to widen to +2.8% y/y in October from+2.7% y/y earlier, but it might slow down to +2.8%? per quarter after +3.0% q/q in the previous period. Germany inflation rate is also expected to come out? ? according to the preliminary calculations the Consumer price index (CPI) for November is expected to decrease? -0.1% m/m, +1.9% y/y against 0.0% m/m, +2.0% y/y in October. It is unlikely that this statistics will cause activity in the market. Members of market will pay attention to the political events in the USA.
GBP
The British pound was changing its positions against the dollar, but it ended the day decreasing as the euro. The pound sterling was supported by the GDP growth data for the 3rd quarter which demonstrates more precise results. According to the report the main economic indicators remained +1% q/q, but it decreased by 0.1% y/y, at the same time household expenses in Great Britain for the 3rd quarter demonstrated the highest growth for more than two years? ? by 0.6% after its decrease by 0.2% before, and gross profit increased by 0.5% and? 1.0% correspondingly. Maybe it reduced slightly fears of the results for the last quarter of this year. What is more, yesterday at the meeting of Parliament the head of the BoE announced? that he will be surprised if the economy demonstrates bad results for the 4th quarter. The pound was negatively influenced by the announcement of the governor of the Bank of England P. Fisher about British economy that may need additional stimulus next year. Moreover, interest in pound could be reduced by fear of the US budget problems and good data of the US economy. Today there will be no news about ?islands? economy, and the pound will remain under the influence of external information.
JPY
Yesterday in the trading session Japanese currency decreased slightly against the dollar and ended the trading day almost on the starting prices. The currency pairs demonstrated weak dynamics in narrow corridors, maybe because of subsided political announcements about aggressive quantitative easing and coming elections in the Land of the Rising Sun, fixed on the middle of December. It intensified uncertainty and forced the market to wait for new reference points. Today there was no news about Japanese economy . This week the main information will come out tomorrow. And for the present the currency pairs which involve the yen may produce profits. It may support the Japanese currency in today?s trading session.
Source: http://blog.forex4you.com/on-tuesday-the-trading-session-opening-was-marked-with-the-dollar-trading/
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