ZuluTrade Blog
Image

Market View

Very little news out overnight

Wednesday, December 14, 2011 2:00 PM GMT

Good Morning,

  • Very little news out overnight and the FOMC didn't offer any fresh insights. Italy's 2016 bond auction could be in focus today and an article in the FT that the new EU treaty could face some hurdles in other countries besides the UK will certainly not help risk at all. EURUSD dropped to 1.3008 overnight. EMG- and commodity currencies traded also heavily to the sofe side. Exotic option books are full with barries on the downside.
  • Stocks: Nikkei -0.39 %, Hang Seng +0.05 %, Shanghai Composite -0.57 %, Dow Jones -0.55 %, S+P500 -0.87 %.
  • Gold was holding the 200 day moving average at 1619.23 last night, after a 3.3 % intraday drop.
  • FT front-page article says 4 out of the 10 non Eurozone members having second  thoughts about signing the new treaty and at least two of the 17 members are considering a referendum. This means that the final version of the new treaty is likely to have very weak legal powers.
  • FOMC Meeting: Federal Reserve officials left their policy options open for 2012 but took no actions Tuesday and offered an assessment of the economy that was guardedly more upbeat, but still marked by "significant downside risks."
Japan Data RecapPeriodSurveyActualPrior
Indus. Production mom Oct F - 2.2 % 2.4 %
Indus. Production yoy Oct F - 0.1 % 0.4 %

- A Japanese government official told Dow Jones that Japan purchased EUR260m (13% of total issue) of short-term EFSF bonds. Adds that Japan watches efforts taken by Europe to determine whether to continue purchasing in future.

Australia Data RecapPeriodSurveyActualPrior
Westpac Consumer Conf Dec - 94.7 2.4 %
DEWR Internet Skilled Vac. Nov - -1.0 0.4 %
  • RBA Battellino said a likely fall in the local dollar will help insulate the nation from an economic slump in Europe, where a "disruptive event" can't be ruled out. "It would be prudent to assume that, if the European economy were to slow markedly over the next year or so, Australia would be affected," Battellino said. "It is also likely, however, that if that were to eventuate, the exchange rate of the Australian dollar would fall, as it has when global growth has weakened in the past, providing some cushion."
  • China will ensure the overall consumer prices are "basically stable" while guaranteeing steady economic growth in 2012, the official Xinhua News Agency  reported after the conclusion of the government's central economic conference.  China will ensure macroeconomic policies are basically stable next year, without elaborating, Xinhua reported.
  • Singapore's economy will grow by 3.0 percent in 2012, slowing from an expected 5.2 percent in 2011 as the global economy and financial services sector cool, according to central bank's survey of private economists released on Wednesday.

- 1430 US Import Prices Nov
- 1430 Fed Lockhart
- 1100 Eurozone Industrial Production
- 0900 ECB Mersch
- 1200 Merkel Addresses German Parliament on EU Summit Accord
- 1400 Germany's Schaeuble, ECB Weidmann Speak on Euro Cash Anniversary
- 1100 Italy to sell 2016 bonds
- 0915 Switzerland PPI Nov
- 1100 Switzerland ZEW Survey Dec
- 1030 UK ILO Unemployment Rate Oct
- 1430 Canada Leading Indicators Nov
- 1430 Canada Manufacturing Sales Oct
- 1400 Norwegian Deposit Rates - cut of 25 bps exp

Add comment

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.