Weekly Forex News February 17th 2013

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Weekly Forex News February 17th 2013 FCTOFX: Much volatility was seen in the Japanese yen last week on talk of a so called "currency war" and on concern that the expansive policies that drove down the the currency would be criticized by the G7 and G20 leaders. The G7 statement released in the early part of the week and subsequent comments from officials confused the markets. But in the end there was some steep selloff in yen late Friday on news that the depreciation of the Japanese currency won't be singled out. Indeed, Japan escaped from criticism by the G20 statement which ended with a pledge to refrain from competitive currency devaluation. The yen's downtrend is now set to resume this week as this uncertainty is cleared. Meanwhile the Euro extended its correction last week as data showed a deepening recession in the Eurozone and as traders lightened up positions ahead of elections in Italy. The Sterling also weakened broadly after a dovish Bank of England quarterly inflation report. The New Zealand dollar was surprisingly the strongest currency last week after some positive economic data.

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Weekly Forex News February 17th 2013

  1. 1. Weekly Forex News February 17th 2013FCTOFX: Much volatility was seen in the Japanese yen last week on talk of aso called "currency war" and on concern that the expansive policies thatdrove down the the currency would be criticized by the G7 and G20 leaders.The G7 statement released in the early part of the week and subsequentcomments from officials confused the markets. But in the end there wassome steep selloff in yen late Friday on news that the depreciation of theJapanese currency wont be singled out. Indeed, Japan escaped from criticismby the G20 statement which ended with a pledge to refrain from competitivecurrency devaluation. The yens downtrend is now set to resume this weekas this uncertainty is cleared. Meanwhile the Euro extended its correctionlast week as data showed a deepening recession in the Eurozone and astraders lightened up positions ahead of elections in Italy. The Sterling alsoweakened broadly after a dovish Bank of England quarterly inflation report.The New Zealand dollar was surprisingly the strongest currency last weekafter some positive economic data. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  2. 2. Weekly Forex News February 17th 2013From a technical point of view the Euros correction against the dollar seemsincomplete and it also faced some difficulty in resuming a recent rally againstthe Sterling and Aussie. However as the euros correction has lasted for twoweeks already there shouldnt be much room for a further downside. Andbased on these two contradicting facts wed avoid Euro this week. Theuncertain near term outlook in the euro also makes us prefer to avoid theSterling and Swissy. Meanwhile commodity currencies were mixed: while theNew Zealand dollar was strong, Fridays sharp selloff showed signs of nearterm topping. The Australian Dollar is still bearish but there wasnt anyconvincing sign of steep fall ahead. Nonetheless the Canadian dollar looks setto accelerate its decline against the US dollar. And as mentioned above wedo believe theres a high chance for yen to resume its down trend this weekas the G20 uncertainty was cleared. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  3. 3. Weekly Forex News February 17th 2013After a two-day meeting in Moscow the G20 leaders agreed to a jointstatement with promise that they would refrain from competitivedevaluation" and "resist all forms of protectionism to keep our marketsopen." Meanwhile, they also pledged that "advanced economies will developcredible medium-term fiscal strategies". The Japanese Yen was not singledout in the statement and suggesting Japan is given a greenlight continue itsexpansive policies. The statement was not much different to the G7statement released earlier in the week stating that G7 policies "will remainoriented towards meeting our respective domestic objectives using domesticinstruments, and that we will not target exchange rates." View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  4. 4. Weekly Forex News February 17th 2013Japan was the major focus last week. In addition to G7 and G20 talks Japanalso released its Q4 GDP figures. Japans G-D-P unexpectedly contracted0.1% quarter on quarter in Q4, versus consensus expectation of a 0.1%quarter on quarter growth. Thats the third straight quarter of contractioneven though it improved from Q3s 1% quarter on quarter drop. Japan is stillin a mild recession and the 0.6% quarter on quarter fall in deflator indicatesthat Japan is still staying in deflation. The data should strength the case forprime minister Abe to push for more monetary stimulus to end deflation andboost recovery. The Bank of Japan left rates unchanged at 0 to 0.1% on anunanimous vote as widely expected. The stimulus programs were also leftunchanged. The central bank noted that "Japans economy appears to havestopped weakening" and the pace of export decline has slowed asinternational "investors risk aversion has abated" and the global economyhas shown "signs of picking up". View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  5. 5. Weekly Forex News February 17th 2013The Japanese economy is expected to "level off more or less for the timebeing". CPI is expected to "turn negative" due to a reversal of energy pricesbut would then be back around 0% again. The Bank of Japan pledged to"pursue an aggressive monetary easing" but emphasized that it aims to"achieve price stability on a sustainable basis", that is achieving its 2%inflation target at the earliest possible time. Talking about the Bank of Japan,its reported that prime minister Abe is close to making a decisions on thenext Central Bank head, who will replace Shirakawa on March 19th. FormerBank of Japan deputy governors Toshiro Muto is being reported as the front-runner and hes considered by the markets as the least dovish candidate. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  6. 6. Weekly Forex News February 17th 2013In the Eurozone, Q4 GDP contracted by 0.6% quarter on quarter versusexpectation of a 0.4% drop. Thats also the third consecutive quarter ofcontraction and the situation was even worse considering that the best ofthe last five quarters of 0% growth was back in Q1 of 2012. And Q4 was alsothe worst quarter since Q1 of 2009. More worrying was that Germany,France, and Italy all recorded disappointing results. Germanys economycontracted 0.6% quarter on quarter compared to expectation of a 0.5% drop.France contracted 0.3% quarter on quarter versus expectation of a 0.2%contraction. Italy contacted for the sixth quarter by 0.9% quarter on quartercompared to expectation of a 0.5% contraction. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  7. 7. Weekly Forex News February 17th 2013In the UK, the Bank of Englands quarterly inflation reported showed thatpolicymakers are ready to tolerate higher inflation to boost economicrecovery. While the Bank of England expects the UK to have "slow butsustained recovery" this year the growth projection for the year to the 1stQuarter of 2014 was revised to 1.7%, down from the prior projection of 2%.The economy is expected to be back to the pre-crisis level by 2015.Meanwhile, inflation is expected to stay above the central banks target of2% until at least the end of 2015, and will peak at 2.3% in the second half of2013. However, the Monetary Policy Committee emphasized that "as long asdomestic cost and price pressures remained consistent with inflationreturning to the target in the medium term, it was appropriate to lookthrough the temporary, albeit protracted, period of above-target inflation." View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  8. 8. Weekly Forex News February 17th 2013And, "attempting to bring inflation back to the target sooner by removing thecurrent policy stimulus more quickly than currently anticipated by financialmarkets would risk derailing the recovery and undershooting the inflationtarget in the medium term." Inflation data from the U-K saw CPI unchangedat 2.7% year on year in January versus expectation of a rise to 2.8% year onyear. Core CPI moderated to 2.3% year on year, down from 2.4% year on yearin December. PPI input jumped to 1.8% year on year, PPI output dropped to2% year on year and PPI core output dropped to 1.4% year on year. View FCTOFX Live Trading @ http://bit.ly/W9RJWK
  9. 9. Weekly Forex News February 17th 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
  10. 10. Weekly Forex News February 17th 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

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