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Weekly Forex News February 10th 2013
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Weekly Forex News February 10th 2013

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Weekly Forex News February 10th 2013 FCTOFX: Markets turned into corrective mode last week and pared back some of the powerful moves made back in January. Comments from central bankers were the main ...

Weekly Forex News February 10th 2013 FCTOFX: Markets turned into corrective mode last week and pared back some of the powerful moves made back in January. Comments from central bankers were the main driver that halted the near term trend and triggered the pull backs. The Euro was broadly lower after European Central Bank president Draghi mentioned that a strong euro could slow the region's economy. The Japanese Yen recovered as finance minister Aso said the recent decline was too fast. Sterling, rebounded as incoming Bank of England governor Carney dented speculation of a radical change in monetary policies. Meanwhile, the Australian Dollar was weighed down by a dovish Reserve Bank of Australia monetary policy statement. The US Dollar benefited from the move in the Euro and closed higher against other major currencies except the yen and sterling. The dollar index has indeed closed above the 80 psychological level again.

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Weekly Forex News February 10th 2013 Weekly Forex News February 10th 2013 Presentation Transcript

  • Weekly Forex News February 10th 2013FCTOFX: Markets turned into corrective mode last week and pared backsome of the powerful moves made back in January. Comments from centralbankers were the main driver that halted the near term trend and triggeredthe pull backs. The Euro was broadly lower after European Central Bankpresident Draghi mentioned that a strong euro could slow the regionseconomy. The Japanese Yen recovered as finance minister Aso said therecent decline was too fast. Sterling, rebounded as incoming Bank of Englandgovernor Carney dented speculation of a radical change in monetary policies.Meanwhile, the Australian Dollar was weighed down by a dovish ReserveBank of Australia monetary policy statement. The US Dollar benefited fromthe move in the Euro and closed higher against other major currencies exceptthe yen and sterling. The dollar index has indeed closed above the 80psychological level again. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013The developments last week showed that markets have turned into acorrective mode in general but wed like to emphasize there is no evidencefor a change in trends yet. Were staying medium term bullish in euro andbearish in yen. The coming weeks would present opportunities and to add tothese euro long and yen short positions. And wed maintain that EUR/JPY willcontinue to outperform other yen crosses ahead. However, for the shortterm price actions in euro and yen pairs will likely be choppy with adownside bias in euro and an upside bias in yen. And thus, wed tend toavoid these pairs in quick trades. Instead, USD/CAD strength on Friday raisedthe chance of a rally resumption with AUD/USD staying soft. Thus, for thisweeks trade, wed prefer USD/CAD longs and to a slightly lesser extentAUD/USD shorts. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013In the Eurozone, strength of the euro was a major topic among officials asFrench President Francois Hollande expressed concerns over the strength ofthe single currency and called for a currency policy. His idea gained supportfrom Slovak Prime Minister Robert Fico who said that government wouldsupport such policy. Greek finance minister Stournaras also said hesconcerned about the high level of the euro". However, German ChancellorMerkels spokesman Seibert noted that exchange-rate policy cannot achieve"sustained competitiveness" and isnt an appropriate instrument. Seibertnoted that the recent gain in euro compensated for a "massive" depreciationduring the debt crisis and "thats not such a bad thing". View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013The European Central Bank left the main refinancing rate unchanged andannounced no new stimulus program. The overall tone of the statementremained dovish, noting that weakness in the economy remains. However,recovery would be seen later in 2013 "with domestic demand beingsupported by an accommodative monetary policy stance, the improvementin financial market confidence and reduced fragmentation, and exportgrowth benefiting from a strengthening of global demand". The EuropeanCentral Bank has clearly noticed the strength of the euro but PresidentDraghi reiterated the position that it is the effect on growth and inflationthat will make them react. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013In the UK, the Bank of England left rates unchanged at 0.5% and kept theAsset Purchase Program at 375 billion pounds. The Sterling rebounded asincoming Bank of England Governor Carney talked down chance of radicalchanges in the central banks policy. In his testimony to the UK parliamentsTreasury Select Committee, Carney said that "flexible inflation targeting: aspracticed in both Canada and the UK, has proven itself to be the mosteffective monetary-policy framework implemented thus far." But, "the barfor change to any flexible inflation-targeting framework should be veryhigh." The comments disappointed some investors that hoped for adoptionof nominal GDP targeting and more aggressive easing. Meanwhile, Carneyalso emphasized that a "credible plan is needed in advance" for unwinding ofthe assets purchased "in order to maintain confidence". View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013The Japanese Yen was initially sold off after news that Bank of Japangovernor Shirakawa would step down on March 19th, almost three weeksearlier than the originally scheduled end date of his term. With the newschedule, ,the new Bank of Japan governor and two deputies would be ableto be sworn in simultaneously. The move will help Abe accelerate the Bankof Japans policy shifts. Its speculated that the short list of candidates tosucceed Shirakawa includes Asian Development Bank President Haruhiko,former Bank of Japan deputy Kazumasa Iwata and Thoshiro Muto. But nomatter who Abe chooses, its believed that the new governor would takestrong easing steps soon after coming into power. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013Finance minister Asos comments were contradicting yet market moving. Lastweekend, he said the weaker yen was a result of the "policies aimed atending deflation", but "not the goal". He hit back at Europes claim that theBank of Japans move would contribute to a "currency war" and said thatJapan "endured without complaining" when the yen was strong as a result ofthe global financial crisis back in 2008. However, before the week closed, Asosaid that the "yen weakened more than we intended in the move to around90 from 78". Asos comment seemed to be inconsistent as he mainly talkedup the yen whilst also talking down the yen on other days. Nonetheless, itshould be noted that his comments were about the pace of the decline in theyen and not about the value of yen. So its actually seen as aiming at coolingdown the selling momentum only. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013The Reserve Bank of Australia left the cash rate unchanged at 3%. Yet,policymakers indicated in the accompanying statement that possibilityremained for a further rate cut as inflation was contained by sluggish jobmarket. The statement was dovish, reiterating the view that the miningsector has almost peaked. The Reserve Bank of Australias outlook on growthshowed little change from December statement, noting that global growth isforecast to be a little below average for a time but risks around this centralscenario appear to have abated. Later in the week, the Reserve Bank ofAustralia released its quarterly Monetary Policy Statement reducing itseconomic growth and inflation forecasts as "mining investment is expectedto peak, both fiscal consolidation and the persistently high level of theAustralian dollar will weigh on growth, and there is little sign of a near-termpick-up in non-mining business investment". View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013The central bank forecast growth this year would be "below trend", ataround 2.5%. CPI and would rise 3% in the year to June 2013. The ReserveBank of Australia forecast the employment growth to remain "modest overthe course of this year, before rising gradually over 2014. The unemploymentrate is expected to edge higher". Australian employment data was solid witha 10,400 expansion in January while the unemployment rate was unchangedat 5.4%.The New Zealand dollar weakened earlier in the session on mixed job data.Employment unexpectedly contracted 1% quarter on quarter in Q4, versusexpectation of 0.4% growth quarter on quarter while the unemployment ratedropped more than expected to 6.9%. The Canadian dollar dropped sharplyon Friday after poor job market data, which showed a 21,900 contraction inJanuary versus expectation of a 4,000 growth. The unemployment ratedropped to 7%. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013In China, the Peoples Bank of China warned in a report that the "economicrecovery and demand expansion may pass into CPI in a relatively fastmanner". The report noted that "with the help of macro-economic policies,the country is expected to keep stable and relatively fast growth.”Meanwhile, monetary easing in developed countries "may make globalcapital flows more volatile, push up commodity prices and generate a greaterspillover effect on emerging economies". The report signaled that whilefurther monetary easing is possible, the room might be limited. Chinas tradesurplus came in wider than expected at 29.15 billion US Dollars in January,down slightly from Decembers 31.62 billion. Exports rose 25% year on year,the strongest rise since April 2001 and well above expectations of 17%.Meanwhile, imports also surged 28.8% year on year, also beatingexpectation. The data showed that not only domestic demand is improving,global demand is recovering too. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  • Weekly Forex News February 10th 2013The new retail forex trading offering from Forex Currency Trading OnlineLtd., www.FCTOFX.com, has been developed out of the retail customer’sdesire to profit from managed Forex trading, without having their capitalheld, managed and controlled by an unknown or unregulated third-party.Our Forex trading software is fully adaptable to suit your risk profile, withdaily weekly and monthly maximum drawdowns set from just 1% to 25%. Wecurrently have 18 co-existing strategies, trading over 17 currency pairs,across all 3 trading sessions. This software system is designed to be fullyautomated, however is manually monitored 24 hours a day, being upgradedand modified to take full advantage of changing market conditions. For More Information: www.FCTOFX.com View FCTOFX Live Trading @ http://bit.ly/W9RJWK