European Market update: China currency firms ahead of semi-annual US Treasury Dept currency report (TTN)
Monday, October 11, 2010
European Market update: China currency firms ahead of semi-annual US Treasury Dept currency report
***Economic Data*** - China to raise reserve requirement for its six largest banks - (FR) France Aug Industrial Production M/M: 0.0% v 0.3%e; Y/Y: 3.2% v 3.6%e - (FR) France Aug Manufacturing Production M/M: 0.0% v 0.4%e; Y/Y: 3.2% v 3.7%e - (CZ) Czech Sept CPI M/M: -0.3% v -0.3%e; Y/Y: 2.0% v 1.9% prior - (TU) Turkey Aug Current Account (TRY) -3.0B v -2.6Be - (DE) Denmark Aug Current Account (DKK): 7.5B v 8.5Be; Trade Balance Ex-Shipping: 5.2B v 7.0Be - (DE) Denmark Sept CPI M/M: 0.4% v 0.4%e; Y/Y: 2.6% v 2.5%e - (DE) Denmark Sept CPI EU Harmonized M/M: 0.4% v 0.4%e; Y/Y: 2.5% v 2.4%e - (IT) Italy Aug Industrial Production M/M: 1.6% v 0.1%e; Y/Y: 12.8% v 9.6%e; Industrial Production WDA Y/Y: 9.5% v 6.4%e - (NO) Norway Sept CPI M/M: 0.6% v 0.8%e; Y/Y: 1.7% v 1.9%e - (NO) Norway Sept CPI Underlying M/M: 0.7% v 0.9%e; Y/Y: 1.7% v 1.9%e - (NO) Norway Sept Producer Prices (Incl Oil) M/M: -0.3% v 0.2% prior; Y/Y: 19.7% v 12.9% prior - (GR) Greece Aug Industrial Production Y/Y: -2.1 v -8.6% prior
Fixed income: - (GE) Germany sold â‚¬4.5B in 6-Month BuBills; avg yield 0.6140% v 0.4148% prior; Bid-to-cover: 1.8x v 1.7x prior
*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ** Notes/Observations: - Weekend IMF produced little more than platitudes regarding the need for greater coordination - CNY made a new post-reval high against the USD ahead of semi-annual US Treasury Dept currency report due out on Oct 15th - PBoC research that argues for an annualized limit of 3% be applied to currency appreciation and that China need not worry about U.S. lawmakers - Reportedly China's PBoC to increase the Reserve Requirement ratio (RRR) by 50bps to 17.50% for its six largest banks for a two month period
Equities: - As of 05:37 FTSe100 +0.24% at 5671.56, CAC40 +0.35% at 3776.21, DAX +0.24% at 6306.65, EuroStoxx50 +0.20% at 2791.12
- European shares traded higher today following US and Asian gains. Friday's weaker than expected US jobs data renewed speculations of Fed's QE. Commodities are also continuing to trade higher sustaining resource- related names. Banks are among the gainers. - In individual names UK's Ladbrokes [LAD.UK] shares opened 2.5% after reporting a revenue increase of 12% on a yearly basis and an increase of 128% in operating profit. Group noted that the consumer environment was to remain challenging but it expected to meet its full year expectations. Carrier Easyjet [EZJ.UK] opened up by 4.9% after settling the two-year dispute with easyGroup IP Licensing Limited and Sir Stelios Haji-Ioannou over the terms and operation of the "easyJet" brand licence. John Woods [WG.UK] climbed 1.4% after its trading update. Company expected higher bidding volumes, which along with recent contract awards, are expected to contribute to an improvement in performance in the second half and into 2011. Electricite de France [EDF.FR] opened down by less than 1% after press reports noting that Constellation Energy had exited negotiations on a $7.5 billion loan guarantee to build a nuclear reactor in Maryland with Electricite de France. German steelmaker Salzgitter [SZG.GE] traded 2.9% higher after CFO told German press that company posted higher revenue in Q3 after raising prices for steel products.
Speakers: There was a plethora of comments following the weekend IMF meeting. - EU's Junker commented that need to avert a global currency war and added that the current Euro level did not hurt economic recovery but he did express concerned over its volatility - ECB's Constancio Not committed to additional stimulus exit measure for Q1 and he also added that the Euro currency volatility was a concern . The ECB member stated that there were no no pre-commitments to unwind special measures in 2011 - ECB's Quaden walked the standard central bank line and noted that domestic price pressures were contained in the EU area and were likely to stay within price stability limits. He added that he did not see any deflationary risks in euro zone - ECB's Nowotny commented in a press interview that the ECB did not have an exchange rate target but urged the US and China to address imbalances in their own countries. The US would have to reduce the internal and external deficits China should increase internal consumption. ECB's Bini-Smaghi: Slowdown in US economy is not surprising but reiterates that ECB policy remains accommodative. Germany Finance Ministry stated that it was opposed extending Greece's repayment schedule. The MOF stated that Greece must establish a track record when it comes to its deficit but did concede the country had implemented budget cuts thus far - PBoC Advisor Li reiterated his country views that China was willing to accept a gradual yuan currency gain and stressed that outside pressure on China policy was counterproductive - Iran expects no change in OPEC quota at the scheduled Oct meeting - Libya Oil Min stated that he sought oil at $100/bbl by of 2010 and that OPEC to maintain production at steady level at Oct meeting in Vienna> Libya sought for OPEC to call for more quota observance and discuss higher commodity prices
Currencies: USD began the European unloved and unwanted following the IMF weekend meeting but greenback did muster up some retracement momentum on unconfirmed reports that China's PBoC would increase the deposit requirement for its six largest bank. Comments from ECB Constancio that the ECB was not committed to exit steps also provided a rational for profiting taking. There were some euro supportive events. ECB's Nowotny did add that the central bank did not have an exchange rate target. Better Italian industrial production data and a narrowing of European peripheral spreads against the 10-year German Bund. - The USD remained vulnerable to key psychosocial with 1.40 still approachable in the EUR/USD, 1.60 in GBP/USD, the pivotal 82.00 in USD/JPY and parity plays still linger in both USD/CAD and AUD/USD
Geopolitical/ In the papers: - In the Telegraph, Evans-Pritchard commented on the issue of currency wars in the context of speculation of additional 'QE' from the Fed. He suspects that the Fed might use QE in order to partner with the Treasury in helping to weaken the dollar and thus force other countries to revalue their currencies, though it is too early for the Fed to conduct additional QE because double dip recession risks have eased since the summer. Additionally, the article noted that one risk of additional quantitative easing from the Fed could lead to a sharp rise in commodity prices. - The IMF capital markets head Jose Vinals said that there are no bubbles in government bond markets. According to the FT Deutschland article, Vinals attributed the low yields for government bonds to low inflation expectations and modest economic growth rates. - In preparation for massive spending cuts to the government budget, the WSJ previewed Britain's spending review for the 20th October. According to the preview, this week British officials are expected to engage in negotiations to settle issues that have yet to be resolved in relation to the proposed cuts, including the issue of how large the cuts will be for the defense and welfare budgets. The cuts by the government are expected to be on average about 25% of the budgets of most government departments.
***Looking Ahead *** - US, Canada gov'ts Holiday - (RU) Russia Aug Trade Balance: $9.5Be v $11.0B prior - (IS) Israel Sept Trade Balance: No est v -$677M prior - (PO) Portugal Aug Construction Works Index: No est v 79.8 prior - 9:00 (FR) France to Sell total â‚¬8.5B in four tranches of Bills - 9:30 (EU) ECB Calls for Bids in 7-Day main refi; 7-day Term Deposit and 1-month tenders - 10:00 (MX) Mexico July Gross Fixed Investment: 1.4%e v 0.6% prior - 10:00 (MX) Mexico Aug Final Trade Balance: No est v -$699M prior - Fed's Dudley to Speak at IIB Event in Washington - 12:00 (EU) ECB's Trichet Speaking in Washington - 14:45 US 150) Fed's Yellen Speaks on Fed Challenges in Denver
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.
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.