Forex Previews

Commodities – Gold rises on expectations of Fed quantitative easing

Posted on December 10, 2012 at 11:08 am GMT

Gold prices climbed higher on Monday to a one-week high on expectations that the US Federal Reserve will be easing further when it holds its policy meeting this week. Despite the higher-than-expected US nonfarm payrolls report on Friday, which led gold to dip briefly, the Fed is still likely to stay accommodative and continue its bond buying program. The Fed is expected to announce fresh bond purchases of $45 billion a month to replace Operation Twist. The latter program which [..]

Forex News – Italian PM Monti’s resignation weighs on euro

Posted on December 10, 2012 at 8:48 am GMT

Euro tumbled lower against the dollar in early Monday trading amid political concerns surrounding Italy which raised concerns for early elections. Italian Prime Minister Mario Monti announced over the weekend his intention to resign as soon as Italy’s parliament passed a pending budget bill later this month. Italy is Europe’s third largest economy so Monti’s surprise resignation is setting the stage for turmoil in the heavily indebted nation. Meanwhile, former Prime Minister Silvio Berlusconi made his statement on Saturday that [..]

Forex News – Dollar surges after US nonfarm payrolls rise

Posted on December 7, 2012 at 2:33 pm GMT

The dollar surged against the yen and euro after US employment growth quickens and nonfarm payrolls rose 146,000 in November, much better than expectations for a lower increase of 93,000 jobs. The unemployment rate dropped to a near-four year low of 7.7 percent from 7.9 percent. Hurricane Sandy which slammed the densely populated East Coast last month had no substantial impact on employment despite fears of it denting jobs growth. “Our analysis leads us to conclude that Hurricane Sandy did [..]

Forex News – Sterling dips on weak UK manufacturing data

Posted on December 7, 2012 at 12:34 pm GMT

Sterling tumbled against the dollar after worse – than – expected data showed UK manufacturing output fell in October at the fastest rate since June. According to data from the Office for National Statistics Manufacturing output dropped 1.3 percent on the month after a slightly downwardly revised flat reading in September. This was worse than the predicted 0.2 percent monthly dip. Meanwhile on the year, output dropped by 2.1 percent, also the steepest since June. Contributing to the lower figures [..]

Forex News – Yen briefly gains after Japan earthquake

Posted on December 7, 2012 at 10:52 am GMT

Japan was struck by a powerful earthquake on Friday at 5:18 p.m. local time, causing a one-metre tsunami off the coast of northeastern Japan, not far from last year’s earthquake that devastated the region. The Japan Meteorological Agency reported quake had a magnitude of 7.3 initially but there were no immediate reports of deaths or serious damage. Power stations, refineries report normal operations. In Tokyo the quake measured a 4, while in Miyagi prefecture it registered a “lower 5”. Today’s [..]

Forex News –Bundesbank lowers Germany’s growth forecast

Posted on December 7, 2012 at 10:22 am GMT

The euro fell after news that the German central bank slashed the growth outlook for Germany in 2013,as the economy was affected by the euro zone sovereign debt crisis which has slowed growth in the region. “Given the difficult economic situation in some euro-area countries and widespread uncertainty, economic growth will be lower than previously assumed,” the Bundesbank said. The move comes just a day after the European Central Bank sliced its growth forecasts for next year for the euro [..]

Forex News – Euro drops after ECB President Draghi comments

Posted on December 6, 2012 at 2:29 pm GMT

The euro fell sharply as European Central Bank President Mario Draghi gave a press conference following form the ECB policy meeting. The central bank kept the key interest rate unchanged at a record low 0.75 percent as expected.Focus was on Draghi’s speech for any clues of possible cuts in the future. EURUSD dropped to 1.3022 and continued falling as of 14:30 GMT. The following are highlights of some of Draghi’s comments: GREEK BOND BUYBACK “On Greece, now you say that [..]

Forex News – UK trade deficit grows

Posted on December 6, 2012 at 11:53 am GMT

The United Kingdom trade balance for the month of October was reported at minus 9.5 billion pounds as exports fell and the prices of goods sold abroad dropped, according to data from the Office for National Statistics. The deficit grew more than September’s 8.439 billion pounds and more than even the highest forecast by economists. Forecasts were for a trade deficit of 8.8 billion pounds. Exports fell by more than 10 percent over the year to some EU countries, including [..]

Forex News – Australian labour market improves

Posted on December 6, 2012 at 9:41 am GMT

Australia’s labour market is improving, as shown by better than expected jobs numbers on Thursday. The Australian Bureau of Statistics reported that the unemployment rate fell more than expected in November to 5.2 percent from October’s 5.4 percent. Markets were pleasantly surprised that unemployment fell since there were expectations for a rise in the rate to 5.5 percent. Also, 13,900 net new jobs were created, up from the previous month’s 10,200 and beating expectations of a mere 200 additional jobs. [..]

Forex News –USDJPY jumps after ISM services index rises

Posted on December 5, 2012 at 3:22 pm GMT

The dollar jumped 0.1 percent against the yen after better than expected ISM non-manufacturing PMI as well as improved factory orders. The ISM (Institute of Supply Management) non-manufacturing PMI climbed to 54.7 in November from the prior month’s 54.2. Expectations were for a reading of 53.5. Readings above 50 signal expansion. The ISM services survey covers industries ranging from utilities and retailing to housing, health care and finance. A separate report shows that productivity in the US increased at a [..]

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