EUR/USD Rally Continue With High Demand Single Currency. After a phase of consolidation, EUR/USD pairing successfully penetrate the psychological level of 1.3500 and reached its highest level since December 2011 in the London session Wednesday. The gains came despite the Spanish GDP growth data reported fall to -0.7% compared to -0.6% previously. EURUSD does not seem to reflect the movement of economic data for the time being, and are more likely to represent the optimism of investors associated stability of the financial sector in the Euro zone.
With the euro zone sovereign debt yields continued declining, and the end of the scenario the EU disunity caused investors rollicking chase European asset markets, triggering a rise in demand for the single currency. It is also evident in the strengthening of the Euro against other cross rate, among others, EURGBP, EURJPY and EURAUD. Foreign investors seem to speculate that the easing of financial conditions in the euro area will lead to improvements in economic activity throughout the euro zone this year. Meanwhile, enjoy the momentum EUR/USD rally, so far tested the 1.3550 level before heading to 1.3660.
U.S. Economy Shows First Contraction Since Q2 2009
GDP growth data unexpectedly fell -0.1% over the previous quarter and 3.1% below the expectations of +1.1%. GDP data is the worst since December 2009. The weakening of GDP due to the sharp decline in U.S. defense spending for the sector which reach worst level since 1972. Bad data reinforces the speculation that the Fed will maintain its stimulus of $ 85 billion per month on the FOMC Meeting tonight. The effect of this data is negative for the U.S. dollar and positive for gold and oil commodities, while pairing EURUSD is also likely to continue the rally.
Potential USDJPY 91.50 If Surpasses Resistant Data Indicate U.S. Economic Surprise
USDJPY managed to achieve new annual highs as U.S. Treasury bond yields surge to 10-year tenor soared above the psychological level of 2%. As we know pairing USDJPY is very sensitive to the U.S. treasury and the spread of Japanese bonds (JGB), so the rise in Treasury yields As related expectations for U.S. economic recovery led to widening spreads and a major factor behind the USDJPY rally. Furthermore, if the USDJPY rally will continue or not is still to be determined by the performance of the U.S. economy than Japan's additional monetary easing. Therefore, economic data in the U.S. session mini potential to be a determinant of USDJPY rally further. Market participants anticipate a fairly weak report from ADP employment data and GDP, with an estimated 164,000 increase in ADP only 1.1% while GDP. However actual data surprises greater than expected impact should be positive for USDJPY and easily exceeded 91.50 resistance level.
Boeing Earnings Results Exceed Expectations
Aircraft maker Boeing reported quarterly earnings results that exceed Wall Street expectations on Wednesday. After the announcement, shares of Boeing rose ahead of the opening trade. Earnings in addition to goods fell to $ 1.28 per share from $ 1.83 per share a year ago. Revenue rose to 22:38 from 19:56 billion billion dollars a year ago. Analysts expect Boeing to report revenues worth billions of dollars dengna 22:36 $ 1.19 earnings per share. Boeing distressed by the controversy over the batteries used by the 787 Dreamliner his unit, which had not allowed to fly. In November, Boeing announced the dismissal would cut 30% of management jobs and closing some factories in California.
Aussie sales drop Expectations Due RBA cuts interest rate
The Australian dollar was under pressure due to shock Australian Prime Minister Julia Gillards comments to hold early national elections on 14 September, other than that PM Gillard also suggests RBA cuts interest rates to dampen the effects of currency appreciation, and consider cutting interest rates by 1.75 percentage points since 2011 is still considered insufficient. Australian economy dependent on resource exports expectation still slow this year due to a strengthening currency erodes export earnings while investing in the mining sector began to decline.
Observed so far pairing AUDUSD fell -0.43% at 1.0426, after reaching its highest point at 1.0474 and intraday high levels daily at 1.0415. Technically, the intraday bias to bearish despite weak U.S. dollar. But requires consistent penetration and daily closing below 1.0395 area to trigger further bearish momentum targeting 1.0360 area. On the upside, resistance near 1.0480 area looked at, turned back above that area could bring price to neutral zone as direction becomes less clear in the short term.
U.S. Fourth Quarter GDP Shocking Market With Contractions
U.S. economic scored a surprise contraction of 0.1% in the fourth quarter, breaking expectations of slower growth and may provide an incentive for the Federal Reserve to increase the stimulus. The economy contracted in the fourth quarter of last year for the first time since the recession ended, depressed by the huge cuts in defense spending in 40 years, reduced exports and slow growth in supply companies. On Wednesday said that the economy contracted at an annual rate of 0.1% in the fourth quarter. It was a sharp slowdown from the 3.1% growth rate in the third quarter of last year. Surprise worried contraction can increase the ability of the economy in the face of tax increases that took effect in January and issues spending cuts. However, this contraction may be due to special factors, government spending cuts and slow supply growth reduces the growth rate of 2.6%.
Dow Jones Futures Post tumbles GDP Data
U.S. stock index futures fell after the beginning of the report estimates the U.S. economy fell into negative territory for the first time since 2009. Observed so far DJIA index futures fell -0.11% to 13.892, while the S & P 500 futs dropped -0.18%, at 1,502.25 and the Nasdaq futures dragged down -0.09% to trade at 2,740.00 level so far. U.S. stocks advance depressed after GDP data fell -0.1%, compared to 3.1% the previous quarter. The main factor that led to weak GDP data is private inventories, exports and government spending weakened respectively -1.27%, -0.81% and -1.33%. Separately, the growth of the private sector workforce successfully estimate overshoots the data ahead of non farm payrolls. ADP employment data and Moody's analytics report an additional 192,000 workers during the period from January, compared with expectations of 165,000.
Toyota Will 'Recall' Nearly 1.3 Billion Vehicles
Toyota Motor Corp. on Wednesday announced plans to recall nearly 1.3 million vehicles worldwide production, most of which were sold in the U.S., airbag-related damage and wipers. Massive recall occurred only two days after Toyota officially holds the title as the largest car manufacturer in the world for the year 2012. A total of 907 000 units of Corolla and Corolla Matrix manufactured between 2003 and 2004 that may be detected using potentially faulty airbags, according to Toyota spokesman in Tokyo. 385,000 units of the Lexus IS made in 2006-2012 may also use the wipers were defective and might not function properly, the spokesman added.
With the euro zone sovereign debt yields continued declining, and the end of the scenario the EU disunity caused investors rollicking chase European asset markets, triggering a rise in demand for the single currency. It is also evident in the strengthening of the Euro against other cross rate, among others, EURGBP, EURJPY and EURAUD. Foreign investors seem to speculate that the easing of financial conditions in the euro area will lead to improvements in economic activity throughout the euro zone this year. Meanwhile, enjoy the momentum EUR/USD rally, so far tested the 1.3550 level before heading to 1.3660.
U.S. Economy Shows First Contraction Since Q2 2009
GDP growth data unexpectedly fell -0.1% over the previous quarter and 3.1% below the expectations of +1.1%. GDP data is the worst since December 2009. The weakening of GDP due to the sharp decline in U.S. defense spending for the sector which reach worst level since 1972. Bad data reinforces the speculation that the Fed will maintain its stimulus of $ 85 billion per month on the FOMC Meeting tonight. The effect of this data is negative for the U.S. dollar and positive for gold and oil commodities, while pairing EURUSD is also likely to continue the rally.
Potential USDJPY 91.50 If Surpasses Resistant Data Indicate U.S. Economic Surprise
USDJPY managed to achieve new annual highs as U.S. Treasury bond yields surge to 10-year tenor soared above the psychological level of 2%. As we know pairing USDJPY is very sensitive to the U.S. treasury and the spread of Japanese bonds (JGB), so the rise in Treasury yields As related expectations for U.S. economic recovery led to widening spreads and a major factor behind the USDJPY rally. Furthermore, if the USDJPY rally will continue or not is still to be determined by the performance of the U.S. economy than Japan's additional monetary easing. Therefore, economic data in the U.S. session mini potential to be a determinant of USDJPY rally further. Market participants anticipate a fairly weak report from ADP employment data and GDP, with an estimated 164,000 increase in ADP only 1.1% while GDP. However actual data surprises greater than expected impact should be positive for USDJPY and easily exceeded 91.50 resistance level.
Boeing Earnings Results Exceed Expectations
Aircraft maker Boeing reported quarterly earnings results that exceed Wall Street expectations on Wednesday. After the announcement, shares of Boeing rose ahead of the opening trade. Earnings in addition to goods fell to $ 1.28 per share from $ 1.83 per share a year ago. Revenue rose to 22:38 from 19:56 billion billion dollars a year ago. Analysts expect Boeing to report revenues worth billions of dollars dengna 22:36 $ 1.19 earnings per share. Boeing distressed by the controversy over the batteries used by the 787 Dreamliner his unit, which had not allowed to fly. In November, Boeing announced the dismissal would cut 30% of management jobs and closing some factories in California.
Aussie sales drop Expectations Due RBA cuts interest rate
The Australian dollar was under pressure due to shock Australian Prime Minister Julia Gillards comments to hold early national elections on 14 September, other than that PM Gillard also suggests RBA cuts interest rates to dampen the effects of currency appreciation, and consider cutting interest rates by 1.75 percentage points since 2011 is still considered insufficient. Australian economy dependent on resource exports expectation still slow this year due to a strengthening currency erodes export earnings while investing in the mining sector began to decline.
Observed so far pairing AUDUSD fell -0.43% at 1.0426, after reaching its highest point at 1.0474 and intraday high levels daily at 1.0415. Technically, the intraday bias to bearish despite weak U.S. dollar. But requires consistent penetration and daily closing below 1.0395 area to trigger further bearish momentum targeting 1.0360 area. On the upside, resistance near 1.0480 area looked at, turned back above that area could bring price to neutral zone as direction becomes less clear in the short term.
U.S. Fourth Quarter GDP Shocking Market With Contractions
U.S. economic scored a surprise contraction of 0.1% in the fourth quarter, breaking expectations of slower growth and may provide an incentive for the Federal Reserve to increase the stimulus. The economy contracted in the fourth quarter of last year for the first time since the recession ended, depressed by the huge cuts in defense spending in 40 years, reduced exports and slow growth in supply companies. On Wednesday said that the economy contracted at an annual rate of 0.1% in the fourth quarter. It was a sharp slowdown from the 3.1% growth rate in the third quarter of last year. Surprise worried contraction can increase the ability of the economy in the face of tax increases that took effect in January and issues spending cuts. However, this contraction may be due to special factors, government spending cuts and slow supply growth reduces the growth rate of 2.6%.
Dow Jones Futures Post tumbles GDP Data
U.S. stock index futures fell after the beginning of the report estimates the U.S. economy fell into negative territory for the first time since 2009. Observed so far DJIA index futures fell -0.11% to 13.892, while the S & P 500 futs dropped -0.18%, at 1,502.25 and the Nasdaq futures dragged down -0.09% to trade at 2,740.00 level so far. U.S. stocks advance depressed after GDP data fell -0.1%, compared to 3.1% the previous quarter. The main factor that led to weak GDP data is private inventories, exports and government spending weakened respectively -1.27%, -0.81% and -1.33%. Separately, the growth of the private sector workforce successfully estimate overshoots the data ahead of non farm payrolls. ADP employment data and Moody's analytics report an additional 192,000 workers during the period from January, compared with expectations of 165,000.
Toyota Will 'Recall' Nearly 1.3 Billion Vehicles
Toyota Motor Corp. on Wednesday announced plans to recall nearly 1.3 million vehicles worldwide production, most of which were sold in the U.S., airbag-related damage and wipers. Massive recall occurred only two days after Toyota officially holds the title as the largest car manufacturer in the world for the year 2012. A total of 907 000 units of Corolla and Corolla Matrix manufactured between 2003 and 2004 that may be detected using potentially faulty airbags, according to Toyota spokesman in Tokyo. 385,000 units of the Lexus IS made in 2006-2012 may also use the wipers were defective and might not function properly, the spokesman added.
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