ZuluTrade Blog
Image

Market View

Aussie Jumps, Euro Lifts, Korea Cuts….

Friday, October 12, 2012 3:39 AM GMT

Good Morning ,

 

- Aussie Jumps, Euro Lifts, Korea Cuts….

- Australians get to work and the euro bounces back…The euro rose against the dollar for the first time in four days on Thursday, after the head of the International Monetary Fund said that indebted euro zone economies should have more time to cut budget deficits, overshadowing a downgrade of Spain's credit rating.

-Christine Lagarde, the International Monetary Fund managing director, said she favored giving debt-burdened Greece and Spain more time to reduce their budget deficits because cutting too far and too fast would do more harm than good.

-Lagarde's comments were seen supporting stability in the euro zone and reducing the risk of Greece exiting the 17-member bloc.

-"Better-than-expected economic data yesterday morning out of the United States, in particular much better-than-expected weekly jobless claims numbers, added to the overall improved mood throughout financial markets."

-Australia's latest jobs report beat expectations handily, and the Australian dollar jumped.

- Aussie, reversed earlier losses and climbed to its highest since Oct. 2 at $1.0294, after the country's employment rose more than expected.   

-The number of Americans filing new claims for unemployment benefits fell to 339,000 last week, the lowest since February 2008, according to government data, suggesting big improvement in the labor market.

- Eur/usd:The euro (0)rose 0.5 percent to $1.2930. It had fallen to $1.2824 earlier in Asian trade, the lowest since Oct. 1, after Standard & Poor's cut Spain's sovereign credit rating to BBB-minus, just above junk status, with a negative outlook.

-All high-yield currencies rose, not only due to Christine Lagarde supportive comments, but also because of the unexpectedly sharp fall in job claims for U.S. and the great jobs report from the Australia side.

- The euro also drew technical support after failing to break below its 200-day moving average around $1.2822.

-The Bank of Korea cut interest rates and sharply lowered its economic growth forecast, and the won slipped before ticking higher.

-UK's PM Cameron said UK's economic recovery is taking   longer than anticipated.

-The yen also weakened as speculation grew that the Bank of Japan may take action to curb yen strength. Japan's newly appointed finance minister, Koriki Jojima, said further yen gains would pose major downside risks to the Japanese economy.

-The dollar gained 0.2 percent to 78.31 yen andthe euro rallied 0.6 percent to 101.26 yen .

- Also, Japan's PM Noda said his government will act against any disorderly gains for the yen.

-  The FED Beige Book report note "widespread improvement" in housing which has helped increase economic activity since August. Manufacturing conditions were mixed but "somewhat improved" since the prior report.

- FED'S PLOSSER: Predicts 'steady improvement' in labor market, and sees 'gradual decline' in U.S. unemployment rate. 

- Fed's Bullard expects GDP growth exceeding 3% next year. He says U.S. housing 'doing somewhat better'.

-USD lost ground to almost all majors except JPY in yesterday's trading. CHF beating USD the most, up 0.522%.

-US 10-year bonds declined; yield rises 1.9bps to 1.69%.

-Also, Germany 10-year bonds extended decline; yield climbs 1.6bps to 1.51%.

-The Swedish crown fell to a three-month low against the euro after Swedish inflation data came in below economists' forecasts, supporting expectations a rate cut could be imminent. The euro was last up 0.5 percent at 8.6680.

-EURCHF:  Might build more and more clues that dynamics have changed, and that EUR/CHF is ranging above 1.20 with upside toward 1.22 or even higher.

-Greece's biggest company, Coca Cola Hellenic, is leaving the country, the drinks bottler said on Thursday as its move to Switzerland and a London listing for its shares dealt a blow to the crippled Greek economy.

-EADS and BAE have terminated merger negotiations after the UK, France and Germany failed to agree on how much influence they should have over the combined entity. London, Paris and Berlin blame each other for not backing the tie-up.

-IMF, World Bank urge China, Japan to overcome differences.

 

Have a nice day !

Comments are closed

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.