European Market Update: China reiterated its pledge to maintain moderately loose monetary policy and maintain proactive fiscal policy; Session risk appetite wanes as no concrete news emerges on Greek
European Market Update: China reiterated its pledge to maintain moderately loose monetary policy and maintain proactive fiscal policy; Session risk appetite wanes as no concrete news emerges on Greek aid package
*** ECONOMIC DATA ***
- (JP) Japan Jan Convenience Store Sales Y/Y: -5.3% v -5.5% prior
- (SZ) Swiss Jan M3 Money Supply Y/Y: 5.6% v 6.6% prior
- (TT) Taiwan Jan Unemployment Rate Seasonally Adj: 5.7% v 5.7%e
- (NE) Netherlands Feb Consumer Confidence: -13 v -11e v
- (IC) Iceland Jan Wage Index M/M: 0.1% v 0.3% prior; Y/Y: 3.1% v 3.6% prior
- (IT) Italy Jan Trade balance Non-EU: -â‚¬3.2B v -â‚¬4.0B prior
- Equities: Despite a strong trading session in Asia, opening highs in Europe could not be sustained. Equities rolled over and turned negative within 60min of trading. The motivations behind this move has been mixed but has been broadly in line with the expected pare back of commodity and high yielding currencies as risk aversion crept back into the market. Equities that traded lower included Galxo [GSK.UK], following a NYT article on the safety of its Avandia medication along with Carrefour [CA.FR] and Axa [CS.FR], following analyst actions. Pilots at Lufthansa [LHA.GE] have followed through with their strike threat leading to travel chaos in Germany and those shares moving lower. Retail as a sector moved lower on general sentiment and cautious notes on H&M [HMB] and Zara [ITX.SP] from BNP. Weekend press speculation has been fierce with commentary regarding an expected EU approval for a T-mobile [DTE.GE] Orange [FTE.FR] UK JV, speculation that VTG [VTG.UK] may offer a special dividend if holders reject a Babcock [BAB.UK] bid, and speculation that Old Mutual [OML.UK] is shopping its US life insurance unit. In M&A flow, Schlumberger [SLB] and Smiths International [SII] announced a formal all stock agreement while market chatter has reignited ABB [ABBN.SZ] for Rockwell Automation [ROK] speculation. Into 5:30, equity markets remain choppy with moves above and below the unchanged line on lighter volume
- In individual equities: AB Foods [ABF.UK]: Reports Interim Statement: H1 profit to be higher y/y. || Hamerson [HMSO.UK]: Reports FY09 adj Pretax Â£130M v Â£150Me. || TNT [TNT.NV]: Reports Q4 Net â‚¬25M (unclear if comp to ests), Rev â‚¬2.95B v â‚¬2.9Be, to pay total dividend of â‚¬0.53/shr. ||
- Speakers: ECB's Provopoulos commented that the Greek govt would take additional measures if needed and expressed confidence that Greece would meet it austerity goals. The member stated that markets were overreacting to the crisis in the country and added that the ECB to continue its credit support ***German Finance Ministry Monthly Report noted that German Jan total tax revenues at â‚¬36.0B, down 7.8% y/y. The reported noted that economic recovery was prone to setbacks and sources of domestic growth unfolding slowly *** ECB's Honohan commented that reducing wages was vital to ensuring Ireland's recovery and reversing the rise in unemployment. He did note that achieving lower nominal wage rates was not easy but was essential***UK PM Brown reiterated his administrative plans to decrease deficit by half by 2014 and restore finances as economic recovery takes hold ***China reiterated its pledge to maintain moderately loose monetary policy and maintain activist fiscal policy in 2010. The comments follow the reopening of the Chinese markets after a week of holidays. The comments follow the Feb 12th reserve ratio hike by the PBoC to 16.50% from 16.00% ***
- Currencies: The European morning was prepared for rising risk appetite as weekend press raised speculation that a Greek aid package could be in the pipeline and worth up to â‚¬25B. Asian equities were firmer and energy and metals followed them higher. However, the euphoria waned as the hours rolled by and the USD and JPY maintained a firmer tone in the session. As the NY morning approached the EUR/USD was holding above the 1.36 handle after testing 1.3450 last week. Dealers did have plenty of time to analyst the situation in Europe as the news flow was light and data releases were sparse. Greece's financial distress could be exacerbated at the end of 2010 when the ECB is due to revert to old collateral rules that were loosened during the global recession. If Greek debt were no longer eligible as ECB collateral, the Greece Gov't would find it harder to find buyers for its bonds and yields would probably rise.
- Fixed Income: Gilts have underperformed after the latest UK polls showed Labour gaining ground on the opposition Conservatives. The Tory lead has been cut to just 8 points, with a 10 point margin generally believed to be the minimum needed to avoid a hung parliament. The 10y Gilt briefly traded 100bps cheap to the Bund in the session, the widest level in the Gilt-Bund spread spread since March 1997
- Geopolitical: On Saturday a brewing political crisis in the Netherlands led to the collapse of a 3-party coalition government. The key issue in bringing the gov down was troop deployments to Afghanistan. Current PM Blakenende (Christian Dem) failed to ward off a split led by Deputy PM Bos (Labor) over the deployment of soldiers in Afghanistan. Labor had run on a platform in 2006/7 that combat soldiers would come home by 2010 and the party has made moves to fulfill that goal. The Dutch Queen is expected to appoint a caretaker gov that while official, will have difficulty passing any new laws *** Coup leaders in Niger have promised a return to civil government with the crafting of a new constitution followed by democratic elections. A time frame for either operation was not given. Representatives from the ruling Junta met with Libyan leader Gaddafi in a search for international recognition. African government and political organization have remained cool/mute on the subject.
- In the papers: FT article noted that investor George Soros views on the EMU. Soros stated that for the Euro to be a fully fledged currency it would require both a central bank and a Treasury. He believes that when a financial system is in danger of collapsing only a Treasury can deal with problems of solvency. The 2008 financial crisis revealed the flaw in the euro's construction. And he recommends the establishment of a well-organized eurobond market.*** Der Spiegel reported over the weekend that he EU was set to provide approx â‚¬25B in assistance to Greece . The amount to be shared amongst the EU, determined by relative position in the ECB, and encompass various loans and guarantees. Germany's share in ECB stands at 20%*** WSJ commented on the use of swaps by some European governments . According to the article, some European government in the past used complex financial transactions to lower the sizes of their debts and deficits. The article commented on the previously disclosed derivatives transactions between Greece and Goldman Sachs. The article noted that between 1998 and 2003, Deutsche Bank entered into swap agreements on behalf of Portugal. In 1997, France arranged a transaction with France Telecom which resulted in a reduction in France's deficit. Additionally, in 1996 JP Morgan arranged an Italian currency swap which allowed Italy to receive large payments upfront and thus lower its deficit. Some critics believe that too little is known about countries' continued exposure to the derivative deals that are already out there.
- Greece's PM Papandreou: Country's borrowing needs are covered until mid-March
- China Gov't come back from vacation and reiterates its pledge to maintain a moderately loose monetary policy and a proactive fiscal policy in 2010
- 8:00 (HU) Hungary Central Bank interest rate decision: Consensus expectation is for a 25bps cut in the Base Rate to 5.75% from the 6.00% current level
- 8:30 (US) Jan Chicago National Activity Index: -0.19e v -0.61 prior
- 10:00 (MX) Mexico Q4 GDP Y/Y: -2.8%e v -6.2% prior
- 10:30 (US) Feb Dallas Fed Manufacturing Activity: 10.0%e v 8.3% prior
- 10:30 (IS) Israel Central Bank Interest Rate decision: No change expected in the Base Rate from the current 1.25% level
- 11:00 Fed's Yellen
- 15:00 (AR) Argentina Q4 Preliminary Unemployment Rate
Legal disclaimer and risk disclosure
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
Mon 18 Dec
10:00 EZ- final HICP Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes Mon 25 Dec
00:00 Christmas Holidays
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.