Forex Market Overview 12 August 2008
The Usd saw broad based gains in the Asian session, as commodities continued to come under pressure. The EurUsd fell to a 6 month low to 1.4816, while the UsdJpy trended upwards to 110.23. Crude oil rebounded off lows, but is currently trading safely around $115.00bll, providing momentum to the Usd rally. Wall Street saw a firm finish, but Asian regional equities are currently mixed, with Shanghai significantly lower, down -5.20%, as the China growth story gets questioned. European stock futures are comfortably in the green and are pointing to a higher open (FTSE 0.90%).
Last night, ECB's Smaghi warned that the Eurozone economy is decelerating quicker than originally forecast, and the coming quarters could potentially see extended weakness. He restated Trichet's comments from last week's ECB policy meeting, that risks which were earlier mentioned by the central bank are presently materializing.
In Norway, inflation data released showed underlying CPI surged y/y 2.9%, vs. expectations of 2.6%y/y. Headline inflation also came in elevated at 4.3%. This surge in inflation is the first time since 2002 that core inflation has moved above Norges Bank's long-term target of 2.5%. With the Norge Bank meeting on Wednesday, the expected hold could easily come into question. Currently we expect a hike in September, but with this news we might reconsider.
In Japan, the Industrial production saw a m/m -2.2% decline, creating a flat annualized rate, while consumer confidence dropped to a new record low at 31.4 vs. 32,6 prior reading. As risk appetite stays high and Usd momentum continues, we believe that the Jpy strength is limited.
On the docket today is UK's CPI, after the nasty jump in June's readings (headline inflation 3.8% vs. 3.3% exp while core climbed to 1.6% vs. 1.5% prior). That said, July's figures don't look to bring any real relief. Recent fall in food and energy commodity prices won't show up in these readings. However, with retail sales figures dropping there could be room for easing. Overall, we expected headline to creep up to 4.0% from 3.8%, with inflation peaking in September.
AUDUSD
R 3: 0.9070
R 2: 0.8952
R 1: 0.8846
CURRENT: 0.8891
S 1: 0.8836
S 2: 0.8768
S 3: 0.8690
EURJPY
R 3: 167.82
R 2: 165.60
R 1: 164.33
CURRENT: 164.40
S 1: 161.73
S 2: 161.25
S 3: 160.15
USDSGD
R 3: 1.4265
R 2: 1.4220
R 1: 1.4142
CURRENT: 1.4074
S 1: 1.4025
S 2: 1.3890
S 3: 1.3820
ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.
ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system.
ForexGen serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.
No comments:
Post a Comment