European Market Update: JPY currency firms during European session as participants demand more specific Japanese action to curb its appreciation trend (Trade the News)
Monday, August 30, 2010
European Market Update: JPY currency firms during European session as participants demand more specific Japanese action to curb its appreciation trend
***Economic Data*** - (SP) Spain Aug Preliminary CPI EU Harmonized Y/Y: 1.8% v 1.8%e - (SW) Sweden Jun Non-Manual Workers Wages Y/Y: 1.7% v 1.5% prior - (DE) Denmark Q2 Preliminary GDP Q/Q: 1.0% v 0.3%e; Y/Y: 2.8% v 1.7%e (first positive YoY reading since Jun 2008) - (PD) Poland Q2 GDP Y/Y: 3.5% v 3.2%e - (NO) Norway July Retail Sales Volume M/M: 1.3% v 0.3%e; Y/Y: 1.8% v 2.9% prior - (NO) Norway July Credit Indicator Growth Y/Y: 4.7% v 4.8%e - (EU) Euro-Area August Retail PMI M/M: 49.7 v 52.4 prior - (EU) Euro Zone Aug Business Climate: 0.61 v 0.70e; Consumer Confidence: -11 v -12e; Industrial Confidence: -4 v -4e; Economic Confidence: 101.8 v 101.6e; Services Confidence: 6 v 6e - (PO) Portugal Aug Consumer Confidence: -40.4 v -42 prior; Economic Climate: 0.1 v 0.1 prior - (BE) Belgium Aug CPI M/M: 0.1% v 0.0% prior; Y/Y: 2.3% v 2.6% prior
Fixed Income: - ( IT) Italy Debt Agency (Tesoro) Auction Result - Sold â‚¬2.86B in 2.0% Jun 2013 BTPs; avg yield 2.07% v 2.01% prior; Bid-to-cover: 1.45x 1.4x prior - Sold â‚¬5.0B in 4.0% Aug 2021 BTPs; avg yield 3.81% v 4.03% prior; Bid-to-cover: 1.3x v 1.7x prior - Sold â‚¬2.5B in 2015 Floating rate Notes; avg yield 1.74% v 1.7% prior; bid-to-cover 1.27x v 1.44x prior
***Notes/Observations*** - Emergency BoJ meeting resulted in: Loan extension. JPY continues to maintain firm tone on weak Japanese rhetoric - Asian equities open the week higher on the back of strong US session on Friday. - ECB rate decision on Thursday with new economic forecasts - Week ahead sees ISM surveys with risks of sub 50 prints; US Non-Farm Payrolls on Friday
- Equities: - As of 5:40am ET Euro Stoxx 50 Index +0.3% at 2,638; DAX Index +0.3% at 5,967; CAC-40 Index +0.1% at 3,4511 and FTSE 100 Index Closed for banking holiday. - European equities opened the session higher by about 0.5%, tracking Friday's gains in the US following remarks from Fed Chairman Bernanke
- In individual equities, German utilities names, including RWE [RWE.GE], opened the session higher on reports that the German economy ministry may support extending the use of nuclear power by approximately 15 years. Also in German, shares of Deutsche Wohnen gained following the company's H1 financial results and raised FY FFO guidance. Shares of Smartrac [SM7.GE], are sharply higher, after the company received a takeover bid from One Equity Partners, which valued the company at a 17% premium to the prior closing price. BASF [BAS.GE] is trading higher on speculation that its Wintershall unit will announce a new oil find. Infineon's shares have moved into negative territory, as some traders sold the news after the company confirmed that Intel would acquire its wireless solutions unit for $1.4B (approximately 20% premium to the unit's 2009 sales). In other equity movers, shares of Zodiac [ZC.FR] are higher by more than 15% on speculation that the company could receive a bid for Safran [SAF.FR], while Orkla is gaining on reports that the firm might receive a bid for its silicon unit.
Speakers: - BOJ Gov Shirakawa commented at the post-emergency meeting press conference that the downside risks for Japan's economy was increasing but he disappointed the markets after reiterating the view to take appropriate policy steps at proper time . The BOJ Gov stressed the need to watch drawbacks in weighing any interest rate cut and it must consider 'side-effects' of any such move. The BOJ to decide monetary policy based upon medium-term economic and price views and added that policy steps would not be bound by JPY currency and equity price action. Thus there was no one-to-one relationship between FX and policy. The BOJ Gov stated that he could not deny possibility of downgrading BOJ economic view of its current assessment and those downside economic risks were growing more than upside factors. Falling growth was biggest issue for Japan - BOJ Gov Shirakawa commented to reports following a meeting with PM Kan that Kan did welcome the central bank's policy moves but had no specific policy request. The BOJ declined to comment on recent currency moves and vowed to continue close communication with Japanese government - Japanese PM Kan stated following his meeting with the BOJ Gov that the country would use Â¥920B budget reserves for its economic steps and would consider extra budget if needed . he noted that the full stimulus package to be decided on Sept 10th. He reiterated that was paying close attention to economy and conceded that it was facing downward risks. - Czech Central Bank's Holman commented in a press interview that it was likely raise the central bank would raise its main interest rate by 25 bps by the end of 2010 or early 2011 due to inflationary pressures - Czech press interview - New Zealand Fin Min English delayed an Asia trip due to South Canterbury finance troubles
Currencies/Fixed Income: The USD/JPY probed below the 85 handle ahead of the European morning after BOJ Gov seemed to disappoint the market during the post-emergency BOJ press conference. The pair tested as high as 85.90 during the Asian session. BOJ Gov Shirakawa commented that the central bank's policy steps would not be bound by the yen or stock market move. The Gov also noted that PM Kan welcome the central bank's policy moves but had no specific policy request. The BOJ declined to comment on recent currency moves and vowed to continue close communication with Japanese government. The JPY was fimer against all major pairs during the course of the European morning. EUR/JPY dipped back below the 108 handle after testing above 109.50 in its Asian session. The verbal rhetoric continued to flow from both Japanese government and industry leaders but the market seeks more action in order to curb the JPY currency appreciation trend. The USD was mixed against the European pairs with the UK participants out for a bank holiday. EUR/USD softer by some 30 pips from its Tokyo open with dealers commenting that the Italian bond auction results were 'unimpressive'. EUR/USD around 1.2720 as the pair moves into the NY morning.
In the Papers-Geopolitical: - In press news related to Germany, it reported over the weekend that the country's Economy Ministry may support extending the use of nuclear power by approximately 15 years. Also, the Rheinische Post reported that German's Construction Ministry may cut subsidies which seek to improve the energy efficiency of buildings. German Landesbank NordLB's CEO was quoted as saying that the firm is planning to raise its capital levels in the near-term. In Italy, La Repubblica reported over the weekend that EU Commission President Barroso told Italy to continue to be vigilant in controlling its deficit and public debt. In Hungary, a press report quoted the EU's Rehn as saying that the country's government could not afford to ease its budget consolidation progress.
***Looking Ahead*** - (PO) Portugal July Retail Sales M/M: No est v -1.1% prior; Y/Y: No est v -1.6% prior - (PO) Portugal July Industrial Production M/M: No est v -0.5% prior; Y/Y: No est v 3.4% prior - 6:00 (PD) Poland to Sell Up to PLN800M in 52-Week Bills - 7:00 (BR) Brazil Aug FGV Inflation IGP-M M/M: 0.7%e v 0.2% prior; Y/Y: No est v 5.8% prior - 7:30 (GE) German Chancellor Merkel and Ukraine President Yanukovych - 8:30 (CA) Canada Q2 Current Account (BOP): -C$10.7Be v -C$7.8B prior - 8:30 (CA) Canada July Industrial Product Price M/M: +0.4%e v -0.9% prior; Raw Materials Price Index M/M: 0.2%e v 0.3% prior - 8:30 (US) July Personal Income: 0.3%e v 0.0% prior; Personal Spending: 0.3%e v 0.0% prior - 8:30 (US) July PCE Core M/M: 0.1%e v 0.0% prior; Y/Y: 1.4%e v 1.4% prior; ) PCE Deflator Y/Y: 1.5%e v 1.4% prior - 8:30 (SA) South Africa July Budget (ZAR) No est v 8.9B prior - 9:00 (CL) Chile July Industrial Production Y/Y: 3.0%e v 2.9% prior; Industrial Sales Y/Y: 2.7%e v 1.4% prior - 9:00 (CL) Chile July Total Copper Production: No est v 465K tons prior - 9:00 (FR) France Debt Agency (AFT) to Sell Bills - 9:30 (EU) ECB call for bids in 7-day Main refi operation - 10:30 (US) Aug Dallas Fed Manufacturing Activity: -16.0e v -21.0% prior - 12:00 (IC) Iceland Q2 Current Account (ISK): No est v -27.0B prior - 13:30 (US) Fed's Bullard - 15:00 (AR) Argentina July Supermarket Sales Y/Y: No est v 19.0% prior - 15:30 (MX) Mexico July YTD Budget Balance (MXN): No est v -101.71B prior
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."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 10 Sep 2018 AA 08:30 GB- GDP, Trade, Output Tue 11 Sep 2018 AA 08:30 GB- Employment Decision A 09:00 DE- ZEW Survey Wed 12 Sep 2018 A 12:30 US- PPI A 14:30 US- EIA Crude A 18:00 US- Beige Book Thu 13 Sep 2018 A 1:30 AU- Employment AA 11:00 GB- Bank of England Decision AA 11:45 EZ- European Central Bank Decision A 12:30 US- Weekly Jobless AA 12:30 US- CPI Fri 14 Sep 2018 A 08:30 GB- GDP AA 12:30 US- Retail Sales A 13:15 US- Industrial Production AA 14:00 US- prelim University of Michigan
John M. Bland, MBA co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
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.