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Chinese March Trade Surplus Exceeds Expectations On Strong Exports
2008-04-11 12:54:28
The Chinese trade surplus surged more than expected in March on robust exports, official data showed Friday. However, the trade surplus for the first quarter shrank from the previous year.The Customs Administration revealed that the trade surplus surged to US$13.4 billion in March from US$8.56 billion in February. A year ago, the surplus totaled around US$6.8 billion. The trade balance exceeded the US$11.9 billion surplus expected by analysts for March. Exports grew at a much faster pace of 30.6% annually in March compared with a 6.5% increase in February. Meanwhile, import growth slowed in March to 24.6%. Exports increased to US$109 billion and imports totaled US$95.6 billion. In a note, Westpac Economics said "Â… as the starting point for imports is very strong, this widening was not appreciable with the surplus well short of the record US$27.1bn in October."Chinese crude imports jumped 25% in March to 17.3 million tons and increased 15% to 45.53 million tons in the first three month ...

Futures Turn Lower After GE Disappoints; Consumer Sentiment Figures On Tap
2008-04-11 12:53:53
US stocks were facing an uphill battle Friday morning amid disappointing earnings results from bellwether General Electric (GE) and as the Group of Seven finance ministers perpared to kick off their meeting in Washington.As of 6:35 am ET, the S&P Futures were down 3 points, the Nasdaq Futures were flat points, and the Dow Futures were down 17 points.Futures turned lower in reaction to the release of quarterly results from General Electric (GE). The firm reported first quarter EPS of $0.44, missing expectations of a $0.51 per share profit.CEO Jeff Immelt said the primary shortfall was in financial services, which were challenged by the slowing economy and difficult capital markets.Stocks rose on Thursday despite some sluggish retail sales results. It was a hectic day that saw the Bank of England cut its key lending rate by a quarter percentage point to 5 percentage point.Asian stocks were mostly positive on Friday. The Hang Seng of Hong Kong picked up 480 points and Tokyo's Nikkei a ...

Currency Majors Technical Analysis
2008-04-11 12:51:08
European SessionEUR/USD - Euro Dollar1,5764. EUR USD broke 1,5810 support. EUR USD is in a consolidation after the last bearish movement. EUR USD moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility decreases. Bollinger bands are tightened. ForexTrend 4H, daily (Mataf Trend Indicator) is in a bullish configuration. The consolidation should continue. The price should continue to move in 1,5720 / 1,5870 range. We won't take a position. The risk/reward ratio is too high to take a position.. Resistances1,5800 - 1,5870Supports1,5725 - 1,5690GBP/USD - British Pound Dollar1,9742. GBP USD is in a range between 1,9700 and 1,9850. GBP USD moves without trend and swings around exponential moving averages (EMA 50 and 100). The volatility is low. ForexTrend 4H (Mataf Trend Indicator) is in a bearish configuration. The price should continue to move in Bollinger bands. We won't take a position. The risk/reward ratio is too high to take a position.. Resist ...

EURUSD daily outlook - Friday
2008-04-11 12:47:15
Although it managed to establish a new record high at 1.5913 on yesterday, the Euro failed to hold its gains and collapsed big-time all the way to 1.5725. Downside risk will become higher if the Euro slips below 1.5720 then into the 1.56 zone as there is key support now into the 1.5740-50 area formed by the channel's lower trendline T6 seen on the chart below. A break of the said support may bring the mid-term support around 1.5610 on focus. Despite of yesterday's fall from the 1.59 zone, we believe that the latest push back above 1.5900 suggests the market is poised for more upside and record highs. Now that a triple top is formed into the 1.59 zone, the first thing that comes into my mind is the triple top formed into the 1.49 area a few months ago and the 1 big figure rally which followed the breakout. Maybe the G7 event will provide some reasons to break higher or the opposite direction. While the lower 1.57 area remains intact, near term momentum will rebuild and bring the 1.59 zo ...

BoE cuts rates, ECB remain hawkish. G7 Meeting over weekend.
2008-04-11 12:37:09
CURRENCY TRADING SUMMARYU.S. Dollar Trading (USD) grinded higher on Thursday tracking equity markets and as expected rate announcements coming out of Europe. Commodity prices fell as investors returned to risk averse assets overnight. The US trade deficit for February widened more than forecasted to US$62.3 billion (5.7%), whilst initial jobless claims fell by a more than expected 53k to 357k. The Fed’s chairman, Ben Bernanke, spoke about financial stability in the U.S yesterday, making claims they will be proactive in finding a solution to the U.S financial instability. Despite the poor data coming from the U.S and claims from the International Monetary Fund (IMF) that the U.S is headed for a recession, U.S share markets gained with the Dow Jones closing 54 points up (0.4%), while the NASDAQ rallied 29 points (1.3%) following strong growth in technology stocks. Oil prices fell by US76c (0.7%) a barrel to US$110.11 following claims from a Saudi Arabian exporter that oil supplies were ...

New EUR/USD records after ECB signals
2008-04-11 12:33:28
EUR/USD (1.5777)European & US sessions forecast levels: 1.5725/1.5915Trend Sessions: European: Neutral/UpwardUS: Neutral/UpwardMarket Focus: 8:30 AM Export Prices ex-ag., Import Prices ex-oil, 10:00 Michigan Sentiment-Prel., 2:00 AM German WPI, 6:00 AM Composite Leading Indicators.Daily Strategy: The dollar again set new record against the euro after massive dollar sells. The European Central Bank not signal changes in the interest rates politic. The dollar was trading at 1.5913 against the euro in US session. After the profit taken from the new record gain the dollar is on the way to test again new records today. For today we recommend opening long positions. The dollar will test 1.60 in the coming days ...

Today is very important day for ECB and US economy
2008-04-10 13:17:47
EUR/USD (1.5843)European & US sessions forecast levels: 1.5750/1.5905Trend Sessions: European: Neutral/UpwardUS: Neutral/UpwardMarket Focus: 8:30 AM Initial Claims, Trade Balance, 2:00 PM Treasury Budget, 2:45 AM French Industrial Production, 4:00 AM Italian Industrial Production, 7:45 AM Interest Rate Announcement, 8:30 AM ECB President Trichet Speaks, 12:00 PM Fed Chairman Bernanke Speaks.Daily Strategy: The dollar starts new serious losing against the euro on speculations that ECB is not ready to cut the interest rates. Today is very important day for the US economy important speaks of Trichet and Bernanke. The dollar is close to the record low level against the euro. If today’s news are worse for the US economy and ECB confirm the signal for not cutting interest rates the dollar could set new record against the euro.FS Team ...

Major Currencies
2008-04-10 13:16:04
EURO The European currency rallied with high levels of volume yesterday towards the major resistance level at 1.5860s in a progressive upside pattern as it built a solid base around the support area of 1.5700s two days ago. Today the euro is expected to continue within the upside direction. The trading range for today might be between the key resistance level at 1.5970 and the key support level at 1.5680. The general trend is up as far as 1. 4260 remains intact targets now at 1.6080 and 1.6360.Support1.5824 1.5802 1.5785 1.5757 1.5729 Resistance1.5853 1.5878 1.5908 1.5927 1.5960 RecommendationWe expect buying euro above 1.5800 with a target at 1.5960, stop loss below 1.5740 GBP The British pound yesterday touched the key support level at 1.9650s to reverse and manage a major upside movement after failing to breach it to set the pound up around the critical resistance area of 1.9790s. Today the pound is expected to continue in the upside direction. The trading range for today might be ...

Cross Rates
2008-04-10 13:15:25
(GBP/JPY)The Pound declined heavily against the Yen as investors reduced their carry trade bets and locked in a quarter percentage point cut from the BOE to mark the expected correctional wave we mentioned before, the short term technical indicators are showing for an upside reversal as the momentum indicators are showing the pair resides within an oversold area, while the point at 198.86 offers good demand for the pair.Support199.36 198.86 198.20 197.80 197.38 Resistance199.83 200.33 200.73 201.23 201.75 Recommendation... (EUR/JPY)The Euro also fell against the Yen as investors reduced their carry trade bets, yet on a slower pace than other majors, the pair dropped in a correctional wave after reaching the 61.8% correctional level at 161.62 to rebound back to the 50% correctional level at 159.77, and as the pair reached an oversold area on intraday basis the pair is expected to rebound to the upside, but if the 159.77 was breached the pair might continue down to the 159.13 which offe ...

FOMC Minutes suggest worst is not over for U.S economy. BoJ to make rate announcement today.
2008-04-10 13:14:29
CURRENCY TRADING SUMMARYU.S. Dollar Trading (USD) was stronger on Tuesday as concerns about the spread of the U.S downturn could warrant rate cuts from central banks around Europe and Asia when they meet this week. The U.S gain has come on the back of calls from the International Monetary Fund (IMF) for global intervention to tackle the global credit crisis. Tuesday saw the release of the FOMC minutes from the Fed’s March meeting which highlighted the likelihood of a contraction in GDP for the first half of 2008 along with thoughts that “a prolonged and severe economic downturn could not be ruled out.” It also noted there were no signs the U.S housing sector is anywhere near stabilizing as credit woes still continue, this is supported by a worse than expected drop of -1.9% in U.S pending home sales for the month of February after initial forecasts estimated a drop of only -0.7%. The share markets ended slightly down on Tuesday with the NASDAQ dropping 7 points (-0.5%) and the Do ...

Demand in the US is deteriorating
2008-04-10 13:13:46
The latest negative data that came from the country concerning job losses, as well as the high energy and food costs that American consumers are already supporting, is leading to a reduction in consumer spending.According to a Bloomberg survey revealed today, the economic growth in the US in the first half of 2008 will be almost nothing. The latest negative data that came from the country concerning job losses, as well as the high energy and food costs that American consumers are already supporting, is leading to a reduction in consumer spending. The forecast that Fed will cut interest rate pushed Dollar down. The US currency traded at 1.5739 against the Euro at 8:00am GMT. ``The economy is not going anywhere in the first half,'' said John Silvia, chief economist at Wachovia Corp. in Charlotte, North Carolina.For the second quarter of the current year, economists even expect that the economic growth in the US will be zero, thanks to the recent high records in oil prices and in the incr ...

WholeSales Inventories
2008-04-10 13:13:03
Previous: 0.8%Forecast: 0.5%Definition The Monthly Wholesale Trade Report is based on a monthly survey of about 4,500 wholesale merchants operating in the United States. The sample group is updated quarterly to reflect new businesses in the marketplace, and includes importers and exporters. Data is released and compiled by the US Census Bureau, about six weeks after the end of the month and the report will show any revisions for the previous two reports as well. Percentage changes are shown from the previous month and year to smooth out volatility. Figures are based on current dollar values for products when estimating sales and inventory levels, which is different from other indicators that may report product based on volume.The report presents three statistics to investors; monthly sales, monthly inventories and the inventory to sales ratio. The data is broken down into durables and non-durables, and from there about 8-10 industries within both.General EffectThe inventories-to-sales ...

US Dollar falls tracking weaker equities. BoE and ECB rate announcements today
2008-04-10 13:12:27
CURRENCY TRADING SUMMARYU.S. Dollar Trading (USD) fell on Wednesday tracking weaker equity markets as traders add to bets the Federal Reserve may cut rates by at least 25bps when it meets later this month. The major currencies gained on the back of this along with commodities. The International Monetary Fund (IMF) has trimmed its forecasts for global economic growth in 2008 from 4.1% to 3.7% citing fears of a spill-over effect from the U.S as the reason. UBS, the World’s second largest currency trader, released commentary on Wednesday which read for a better outlook for the U.S encouraging investors to buy the dollar against the Euro as the U.S economy will recover from a “mild recession” in the second half of 2008, whilst hinting that Europe has probably peaked. Despite these comments, the Euro gained to come within a cent of a record high against the dollar. U.S share markets fell again on Wednesday after oil prices hit record highs, the Dow Jones ended 49 points lower (-0.4%), ...

USD set for test of the lows as Trichet likely to deliver another hawkish performance at today's ECB press conference. BOE eyes 25 bp rate cut.
2008-04-10 13:08:45
USDJPY sharply lower on Singapore move to strengthen its currency as inflation fighting measure. MAJOR HEADLINES – PREVIOUS SESSIONOvernight developments: New Zealand Mar. Business PMI out at 48.3 vs. 52.2 expectedUK Mar. NIESR GDP Estmate out at 0.5% as expectedJapan Feb. Machine Orders rose 2.4% YoY vs. 0.9% expectedJapan Feb. Adjusted Current Account out at ¥1461B vs. ¥1650 expectedAustralia Mar. Unemployment Rate out at 4.1% as expected vs. 4.0% in Feb.Australia Mar. Employment Change out at 14.8K vs. 10.0k expectedTHEMES TO WATCH – UPCOMING SESSIONKey event risks today (all times GMT):France Feb. Industrial and Manufacturing Production (0645) Sweden Feb. Industrial Production and Orders (0730) Norway Mar. Producer Prices and CPI (0800) UK Feb. Visible Trade Balance (0830) UK BOE Announces Rates (1100) EuroZone ECB Announces Rates (1145) EuroZone ECB's Trichet to hold Press Conference (1230) US Feb. Trade Balance (1230) US Weekly Initial Jobless Claims (1230) Canada Feb. Inte ...

Interest Rate Announcements Expected For EUR & GBP
2008-04-10 13:06:52
Economic NewsUSD Yesterday, the greenback fell to its lowest mark since the beginning of April decreasing sharply against a majority of it's currency rivals. The EUR/USD pair shot up 150pts yesterday, crossing the key psychological rate of 1.5800 for the first time since the positive ISM Manufacturing Index release on April 1st. Expectations for the near future look to hold similar characteristics as the upcoming US calendar doesn't look to have much that can help pull the dollar out of trouble. Yesterday's bearish dollar trend was especially concerning due to the lack of indicators released from both the US and the Euro-zone, as it seems that the greenback crash comes mainly on the heels of traders fearing the US economy woes are not over. Yesterday's standout event from the US calendar was a speech by Fed Chairman Ben Bernanke; the speech did include criticism of the financial literacy system in the US. Bernanke said that the financial education of Americans, mainly the younger gener ...

BOE might cut rates and ECB won’t, but what will they do about high inflation and low growth stacked together?
2008-04-09 13:47:38
UR/USD has not moved accordingly to the increasing releases pointing to an imminent US recession. Jobs reports worse than expected, Bernanke speaking very dovish and American economists stating their economy is already in a recession has not pushed the pair higher, neither the USD lower. However the pair has listened closely to increasing problems with Euro Zone increasing inflation and decreasing growth. This combination is the perfect storm that could get Euro Zone off their feet and down to the ground. Let’s wait and see if Trichet shows some of this anxiety on this week’s ECB meeting.Monday is pretty quiet with a low flow of releases and EUR/USD in a “neutral/comfortable” level, however throughout the morning we got news that Martin Feldstein, head of economic bureau (they are the ones who can officially call a recession), said he believes the US has been falling into a recession since December or January. “I think the professional forecasters have been a little slow to ...

The credit crisis may be reached the bottom
2008-04-09 13:38:43
The market is very dynamic today. But as overall the volumes are not high. The traders start to speculate whether the U.S. economy is reached the bottom. The forecast is that the credit crisis is in the bottom and the economy will start to recovery. At the same time the Fed will cut the interest rates once with quarter percent or maximum to half percent. The Euro-Dollar touches 1.58 today during the Asian session. The dollar recovered during the European session. The tendencies for weak dollar remains as key for the dollar are the levels above 1.58. The chances for break above 1.5903 remain high said George Marshal analyzer in World-Signals.com. The forecast is for mix trading with movements close to 1.58 again and recovery down below 1.5670.WorldSignals ...

EUR/USD consolidation process continues
2008-04-09 13:38:03
EUR/USD (1.5704)European & US sessions forecast levels: 1.5650/1.5775Trend Sessions: European: NeutralUS: NeutralMarket Focus: 10:00 AM Wholesale Inventories, 4:00 AM EU GDP.Daily Strategy: The trading consolidates at the levels of 1.5700 during the Asian session. The traders expect new key fundamental events to come back into active trading. The Euro/Dollar is in broad consolidation at the levels of 1.55/1.59. These levels are key for the current consolidation process. The forecast is that in the coming couple of days the trading will remain in these levels. The break in one of both levels will stop the consolidation and follow new movements. At the moment the dollar and the euro are under pressure due too expecting spread of US recession over the European economy. For today we recommend trading within the trading range ...

Weak GBP eyes 0.8000 level in EURGBP, sees break of key support in GBPUSD. FOMC minutes contained no surprises - USD view still uncertain.
2008-04-09 13:37:19
AUD strong on Chinese interest in BHP Billiton stake and despite Australian Consumer Confidence touching 15-year low. MAJOR HEADLINES – PREVIOUS SESSIONOvernight developments: FOMC minutes showed members voting 8-2 to cut rates by 75 bps at the March 18 meetingUS ABC Weekly Consumer Confidence fell to -34 vs. -33 last weekUK Mar. Nationwide Consumer Confidence fell from 78 in Feb. to 77 vs. 76 expectedAustralia Apr. Westpac Consumer Confidence fell -1.3% to lowest level since 1993Japan BoJ kept rate steady at 0.50% as expectedTHEMES TO WATCH – UPCOMING SESSIONKey event risks today (all times GMT):Germany Feb. Trade Balance (0600) UK Feb. Industrial and Manufacturing Production (0830) UK Mar. BRC Shop Price Index (0930) US Weekly MBA Mortgage Applications (1100) US Fed's Kroszner to Testify on Housing Legislation (1400) US Weekly Crude Oil and Product Inventories (1430) US Fed's Fisher to speak on US Economy (1730) UK Mar. NIESR GDP Estimate (2301) Japan Feb. Machine Orders (2350) J ...

Ears Poised For Bernanke's Speech
2008-04-09 13:36:31
Economic NewsUSD Yesterday, the Greenback spent most of the trading day with bullish momentum against a majority of its currency pairs and crosses. This despite a day of disappointment from US economic news. As the financial world awaited the results of the Federal Open Market Committee (FOMC) Meeting Minutes, the assumption amongst investors was that the summary of the news would be so bad for the US economic outlook, that the dollar would suffer big losses. Though the meeting minutes were released and gave no real positive outlook for future economic progress, a sense of urgency still exists amongst investors regarding a slowdown in growth. Still though it is unknown what the real catalyst behind the bullishness has been.One of the key points of the FOMC Meetings was the discussion of the value of the Dollar and the need or lack there of for another rate cut. Two of the more hard-line Fed bosses, have not shied away form their suggested 75bp rate cut, but instead have embraced what s ...

Majors pull back from USD in anticipation of central bank announcements this week.
2008-04-08 12:58:31
CURRENCY TRADING SUMMARY U.S. Dollar Trading (USD) strengthened against the major currencies overnight, joining the equity markets in shaking off last week’s soft U.S jobs data as news that America’s largest savings and loan bank, Washington Mutual, will be receiving a $5 billion capital injection from equity group TPG. Whilst acting like a shot of confidence in the market, U.S consumer credit rose by US$5.16 billion for the month of February. However, this was below the expected amount of US$5.5 billion so there may be indications the Federal Reserve’s drastic easing of monetary policy is beginning to flow through the economy. The NASDAQ lost 6 points (-0.3%) whilst the Dow Jones had a volatile day after being up 124 points at one stage, before closing 3 points up. Oil prices surged almost 3% on Monday, up $2.86 a barrel to US$109.09 amid supply concerns following a large refinery fire in Finland over the weekend. Not much data coming out from the U.S as eyes are beginning to lo ...

FOMC Meeting Minutes - on Tap
2008-04-08 12:56:29
Economic NewsUSD The USD rose against the EUR yesterday on speculation the Fed is close to ending the biggest series of Interest Rate reductions since 1984. Stability in equity and credit markets raised optimism that the worst of the financial crisis might be over, encouraging investors to buy riskier assets. Yesterday, the U.S. currency advanced 0.3% to 1.5693 vs. the EUR, however later deteriorated and closed trading at 1.5718. The greenback has been receiving support after the recent stabilization of the financial markets, as seen by Lehman Brothers, UBS and now Washington Mutual having the ability to raise cash, will allow the Fed to refrain from further rate cuts.While sentiment toward the dollar had improved, worries about the overall health of the U.S. economy continued to cast a shadow over the market, restricting the greenback's gains. The U.S. central bank has reduced the federal funds rate by 3% since September, pumped $628 billion through the financial system, and allowed s ...

FX Market looking as indecisive as ever as illiquid market looks for direction. US FOMC minutes on tap this evening.
2008-04-08 12:55:44
CAD remains on a weak footing despite large crude oil rally. EURCHF and EURJPY at important resistance levels. MAJOR HEADLINES – PREVIOUS SESSIONOvernight developments: US Feb. Consumer Credit out at 5.2B vs. 5.9B expected and a revised 10.3B for Jan.New Zealand Q1 NZIER Business Opinion Survey fell to -64 from -26 in Q4Australia Mar. NAB Business Confidence fell to -4 from -2 in Feb.THEMES TO WATCH – UPCOMING SESSIONKey event risks today (all times GMT):UK Mar. HBOS House Prices (0700) Canada Mar. Housing Starts (1215) US Feb. Pending Home Sales (1400) US Fed Releases Minutes from March 18 FOMC meeting (1800) US Weekly ABC Consumer Confidence (2100) UK Mar. Nationwide Consumer Confidence (0001) Australia Apr. Westpac Consumer Confidence (0030) Japan BoJ to announce Target Rate Japan BoJ Monthly Report (0600) Market Comments The action overnight confirms word we are hearing that FX conditions are extremely illiquid: EURUSD jumped half a percent in the early Asian session on no iden ...

The dollar strengthened against the yen and euro
2008-04-08 12:54:55
The dollar strengthened against the yen and euro on Monday as a rally in equity markets raised optimism that the worst of the financial crisis might be over, encouraging many investors to open risky carry-trades. Analysts said the dollar also got some support as traders were reluctant to buy the euro ahead of the European Central Bank policy meeting on Thursday and the G7 nations' gathering later this week.Today's economic calendar will include Canadian Housing Starts (12:15 PM GMT), followed by Consumer Sentiment and Pending Home Sales in the US (02:00 PM GMT). The FOMC protocols of the last interest rate decision meeting will be released at 06:00 PM GMT. Euro | Japanese Yen | British PoundEuroThe EUR/USD opened Asian trading at $1.5705 after attaining a session high of $1.5735 in London after comments from Eurozone officials suggested that the current levels of the pair will be highlighted in an upcoming G7 meeting later this week. The pair eased to $1.5695 early on, before reboundin ...

The Assault on Free Markets
2008-04-07 16:40:30
Those blindsided by the recent financial meltdown are now loudly blaming the free market for its failure to police its own excesses, and are calling for greater regulation to prevent future disasters. But for those who clearly observed the problems developing (in high definition slow motion) the blame can be directed squarely at the policies of the Greenspan/Bernanke Federal Reserve. As has been the case countless times in history, the free market will now pay the price for government incompetence. In Senate hearings this week, all parties involved completely ignored the Fed’s own culpability in igniting the speculative fever. It’s as if a senior prom had turned into a wild bacchanalia, and angry parents now question why the chaperones failed to notice the disrobing or why the DJ played provocative music, all the while ignoring the bearded gentleman pouring grain alcohol into the punch bowl.A perfect illustration of the Fed’s failure to take responsibility can be found in Bern ...

A Slight Recovery
2008-04-07 16:39:42
Recession talks, terrible unemployment data and a gloomy economic outlook didn’t dampen the bullish mood last week, as traders looked passed the bad news, sending equity indices up across the globe. The major U.S indices closed the week with gains of approximately 4%, while the U.S Dollar index closed up by 0.5%, showing that the dollar has still got some fight left in it, against its counterparts.The major market mover of the week was unemployment data, which showed that the number of people employed in all non-agricultural business sectors, contracted by a whopping 80,000 while the unemployment rate jumped from a previous 4.8% to 5.1%, posting the worst reading in roughly five years. Volatility picked up immediately after the results were published, as investor were trying to figure out how the data will affect current trends, especially as the unemployment result breached the 5% benchmark level, a level which policy makers try to keep the economy under. As mentioned above, despite ...

Non-Farm Payrolls Pushes Dollar Down, Increasing Likelihood of Rate Cut
2008-04-07 16:38:55
CURRENCY TRADING SUMMARYU.S. Dollar Trading (USD) was weaker on Friday as a result of a worse than expected Non-Farm Payrolls data release indicating employment fell by 80,000 in March, some 30,000 less than what was forecast. February’s figures were also revised to show a loss of 76,000 jobs rather than the 63,000 it originally reported, further indicating the world’s largest economy may be slipping into recession. Further to this news, the unemployment rate rose 0.3% to 5.1% its highest level in almost 3 years fuelling thoughts the Fed may cut rates yet again as early as the end of this month. The US share market had a mixed reaction to the weak economic data with the NASDAQ rising 7.68 points (0.3%) and the Dow Jones falling -16.61 points (-0.1%). Oil prices gained US$2.40 a barrel to US$106.23. Looking ahead, consumer credit data is to be released with forecasts expected to be 5.5, a drop from February’s figure of 6.9.The Euro (EURO) remained strong against the major currenci ...

Consumer Credit
2008-04-07 16:38:17
Previous: 6.9 Billion Dollar Forecast: 5.5 Billion DollarDefinition A debt that someone incurs for the purpose of purchasing a good or service; a mortgage for purchasing a house is technically not consumer credit. However, the 52 inch television you put on your credit card is a great example.Consumer debt is consumer credit which is outstanding. In macroeconomic terms, it is the debt which is used to fund consumption rather than investment.General EffectConsumer Credit has a slightly effect on the foreign currencies market as long as increasing this indicator means more liquidity available with consumers which allows them to spend more and more leading to high demand on goods and services; then that might expose raising factories and companies production capacity. At the end such index pushes the economic growth ahead with strengthening the local currency.About Consumer credit figurer impact at stock exchange is also supposed to be slight, regarding any improvement on goods and service ...

Speculation that Fed will limit interest rate cuts leads Dollar to rise
2008-04-07 16:37:27
After really bad news came from the US on Friday, concerning an increase in unemployment, Dollar registered a slightly decrease on weekendAfter really bad news came from the US on Friday, concerning an increase in unemployment, Dollar registered a slightly decrease on weekend. However, due to a high inflation, the speculation that Fed will limit interest rate cuts, Dollar rose today. In fact, Dollar registered the higher growth in almost a week against the Euro and the Yen. The currency traded at 1.5663 against the Euro and at 102.56 against the Yen at 8:00am. “The minutes could be supportive of the dollar, given the Fed signaled uncertainty over the inflation outlook, suggesting that the Fed is reluctant to cut rates further” wrote Ashley Davies, a currency strategist in Singapore at UBS AG.As the American crisis is spreading to other economies and Fed is concerned about the excessive inflation registered in the country, over 7%, Dollar strengths. The recent cuts on the US interes ...

The Dollar received some disappointing data
2008-04-07 16:36:14
The Dollar received some disappointing data on Friday as Employment data continued to show that the U.S economy has still not crept out of its dire situation. Non-farm Payrolls contracted by an additional 80,000, while unemployment jumped up to 5.1%, showing that companies were still forced to fire employees during the month of March. To date, the markets are pricing in an additional 0.5% rate cut, which investors are hoping will help to jump start the economy. In addition, the Canadian economy also showed some discouraging figures as they reported that their Unemployment level had jumped up to 6%, while their Non-farm Payrolls showed that 14.6k new jobs were added to the market. The glooming atmosphere continues to characterize all major markets as Germany’s manufacturing ministry stated that their manufacturing orders had contracted by 0.5%, due to weaker foreign demand. Despite the bad news the major U.S indices managed to close the week up with gains while commodities also closed ...