Euro Pressured ahead of ECB meeting

Euro Pressured ahead of ECB meeting. The single currency Euro seems depressed trading in a narrow range on Thursday (7/2) ahead of the monetary policy meeting of the European Central Bank (ECB) as investors are also wary of the leadership of the central bank's outlook - Mario Draghi, the strengthening of the Euro lately. Euro range in the area 1.3536 after falling to 1.3502 yesterday, while still closed yesterday at 1.3523 level. Throughout the year 2013, the euro has appreciate more than 10% against the yen and 2.5% against the U.S. dollar (USD).

Collapse of the Euro yesterday came after a poll showed the political coalition of former Prime Minister of Italy Silvio Berlusconi has made progress. So it raised concerns over the current economic reforms pursued by the government of Prime Minister Mario Monti. While the ECB had been widely expected to maintain the policy interest rate will not change (unchanged), and a number of analysts await Mario Draghi views on strengthening Euro and whether it will be an effect on the economic recovery in the region.

Euro sales drop ahead of ECB Policy Meeting

The U.S. dollar fell versus the euro as traders increasingly cautious ahead of the European Central Bank meeting Thursday. The ECB is expected to keep interest rates unchanged. However, the focus of market players remained fixed to the press conference ECB President Mario Draghi, who is expected to avoid commenting about the high euro exchange rate at the moment and prefer to elevate the conversation about improving prospects in the region are still many problems to overcome.

"The market continues to speculate about the statement and press conference Draghi ECB," said Camilla Sutton, chief currency strategist at Scotia Capital in Toronto. "The president Draghi will likely voiced caution and as a result the euro will weaken."

EURJPY Detained Ahead of ECB Under 127

EURJPY is currently trading down 126.48 points, down by 0.61% from the previous session of Asia Pacific, most of the related weakening Euro, Euro as traders booked profits ahead of ECB policy meeting, said Managing Director BKAsset Management, Kathy Lien. Japan's machinery orders data to be released positive, rising 2.8% by the base monthly, put pressure on the yen buying, was last seen at 93.43, near the session low.

"Price (EURJPY) back down 127.00", says founder FXWW, Sean Lee, who would have little concern for the movement up the signal, but it is still favorable. The level of price volatility should persist for highly in the range of 124/127 for now, analysts said. Support close to EURJPY were low yesterday at 125.90 points, followed by Tuesday's U.S. session low at 125.72 points, and the U.S. session low at 124.82 on Friday. In order to increase the movement, resistance is high close session at 126.66 points, followed by the high on Friday at 126.97, and the annual high for at 127.71 points.

Profit-taking Leads Nikkei Close Negative

Nikkei - Japan finally closed down -0.93% or decreased by -106.68 points at 11357.07 mainly due to profit-taking after the index on the session yesterday soared to the highest level in 4 years. Japanese Prime Minister Shinzo Abe today refuted the view that monetary policy alone can not overcome the problem of long-running deflation in Japan because Japan's population decline. The comments are likely to keep pressing the Bank of Japan to pump more money into the economy.

From the technical side, the trend in the Nikkei daily scale are revealed still bullish, but for the duration per 1 hour, Nikkei seen will be corrected first. Some key indicators such as Stochastic and MACD is bearish confirmed. So that it will contribute to the drag resistance movement Nikkei support 11 320 (23.6% Fibonacci retrace) and 11 265 and 11 205 (38.2% Fibonacci retrace). While the Nikkei today appeared to be difficult to continue the rally, but at least the index is still likely to target resistance then 11 450 11 400 or even up to 11 505.

Japanese Vice Minister of Finance : Our Main Target Preventing Deflation

Japan's vice finance minister speaking today at a seminar held by the International Monetary Fund (IMF). In a statement, Takehiko Nakao said that the main purpose of this ministry is to stop deflation now. The whole range is government ready to carry out the mandate of the achievement of the inflation target of 2% was requested by Prime Minister Shinzo Abe. "So far all goes according to plan policy," he said when the review about the rise in stock prices and a decline in the exchange rate of yen.

Nakao also highlighted climate long-term interest rates are still very low. Deflation during the last two decades has triggered acute damage in the Japanese economic system, especially regarding price reductions and income residents. Investment flows are also reduced, in line with the lack of household consumption. According to Nakao, interest rates can not be lowered again and the sales figures could continue to fall in the middle of deflation climate. If so, then the government's increasingly difficult to pay its debt load.

"Japan has experienced sustained deflation over the past two decades, and it's very damaging," he said. Nakao assess the real interest rate is very high when compared to the ideal level should be. Society tends to reduce consumption in the climate of deflation in the hope prices become cheaper. Even so, Nakao see any risk if governments rely on cheap credit and fiscal stimulus. "We have to look at the fiscal performance if you do not want to lose credibility," Nakao lid.

Weak, Euro Pressured Ahead of ECB Meeting

Weak, Euro Pressured Ahead of ECB Meeting. Until the European trading session took place on Thursday (10/01), the single currency euro still appeared to be in the range of negative after two consecutive sessions weakened against the USD ahead of the meeting (meeting) of the European Central Bank (ECB) this afternoon. Although analysts predict the ECB will keep interest rates low in the range, a number of investors and economists remain convinced that the rate cuts may still occur during the year 2013. The euro is now monitored and stabilized at 1.3061 area had only climbed up to 1.3074, in contrast with the high level session recorded at 1.3095 yesterday. Today the market is also wary of the emergence of a negative tone at the press conference after the ECB President Mario Draghi announced the interest rate, because it could potentially affect sentiment towards the euro.

Estimated ECB Interest Rate Unchanged

European Central Bank (ECB) is expected to keep interest rates at a record low rate at 0.75% on Thursday, refrain from pruning as the economy showed signs of stability in the euro zone and inflation remains a prime target. 17 members of the euro zone is in recession, but some recent data suggest that economic stability ECB President, Mario Draghi is likely to give more positive comments at the press conference post the ECB's monetary policy-setting. The results were compiled by Reuters poll also showed that ECB interest rate fixed, even though there is still an indication of a recession, but further weakening is not visible, the level of borrowing maish weak, but not declining consistently so the ECB is likely to remain on hold

Morgan Stanley release Workers

Morgan Stanley plans to lay off employees 1.600. Termination of employment is part of the initial steps were taken in this major investment bank. This action follows an in-depth evaluation performed against Wall Street business conditions in the face of new regulations and capital standards. Morgan Stanley, which was recorded as the largest U.S. bank by assets plans to begin trimming workers. Pruning begins working in the security sector starting this week, according to two sources close yesterday (09/01). Third parties involved in this plan and other big banks said this plan has been discussed for several months and is expected to take a long time. Previous Morgan Stanley had to cut workers when the financial crisis hit the U.S. housing market. Bank was focused on trimming workers in areas where activities have been halted as mortgage insurance or sector weighed down by new regulations such as proprietary trading.

Morgan Stanley is currently making strategic decisions about business conditions in the "gray zone" in which the team management did not see a great advantage or after learning that they are not competitive individual bank, the 3nd source. It is difficult to perform this action. However, the management team must be realistic and make the decision to get out of the business and to cut more staff. So far, banks have faced a big decision this is Swiss bank UBS AG, which in October banks decided to halt trading of bonds and cut 10.000 workers.

Oil Post Strong China Data

Crude oil rose in today's electronic trading session on Thursday (10/01). Reinforcement occurs after data China's exports rose more than expected and sparked investors' interest in buying risky assets. Oil still able to strengthen despite dollar exchange rate also remained strong. Contracts light-sweet crude for February delivery rose 41 cents, or 0.4%, to $ 93.51 per barrel. Price was down 5 cents at the NYMEX regular session last night, after supply data and distillate fuels rose above U.S. estimates.

Strengthening these days occurs after official data showed china country's annual export figures jumped 14.1% in December. The ratio of the increase in exports was greater than hope and increase the amount of trade surplus to $ 31.6 billion. China imported 23.67 million tons of crude oil in December, or more than the previous record month (23.37 million tonnes). The ICE Dollar Index, which is a parameter of the exchange rate of USD against six major currencies, was observed at 80,598 or more powerful than the record yesterday, 80,514. Until this story was written, the price of crude is seen at the level of $ 93.71 per barrel.

Session II Hang Seng Technical vulnerable to a correction

Until well into the second session of trading on Thursday (10/01), the Hang Seng Index traded higher apparent after the morning session China government reported export figures in December to appear higher than expected and jumped from the previous month previous. The Hang Seng Index rose 0.72% now recorded and are in the range 23384.57 +167.43 points, or as much, while the Hang Seng futures rallied 0.85%, or the points at +197 in the area of ​​23 400.

A number of stocks listed in Hong Kong and China is sensitive to economic conditions, strengthened after the data was released. Noted New World Development Co shares. rebound to 3.4% and Wharf Holdings Ltd.. rose 1.4%. In addition, the banking sector helped to strengthen the Bank of China Ltd.. rallied 1.2% and Bank of Communications Co. rose 0.7%. Entering into the second session, the Hang Seng still appeared vulnerable to a correction factor for the Stochastic indicator of duration 1 hour (H1) was in overbought zone and has maneuvered downtrend.

So the decline will be dominant to support 23 370 and 23 275 (23.6% retrace of Fibonacci) even to enter the second session today. Meanwhile, confirm bullish MACD visible index will deliver to the least resistant up to 23 700 23 650 23 570 then.

Euro Pressured Ahead of ECB Meeting

Euro Pressured Ahead of ECB Meeting. The weakening euro continues to the second straight session against the U.S. currency that the dollar ahead of the ECB policy meeting on Thursday. Although analysts predict the ECB will keep interest rates unchanged, some investors and economists are still unsure if the rate cut is still possible this year. Market participants are also wary of the press conference after the ECB President Mario Draghi policy announcement, which could potentially affect sentiment Euro.

Wall Street Jumps, Market Optimistic On Earnings Results

U.S. stocks rose moderately in all indices on Wednesday, lifted by shares of the industrial sector, after Alcoa, which is one component of the Dow start the fourth quarter earnings season on a positive note. "After a pretty good start to 2013, we should see how the results The fourth quarter earnings season, the market is currently in a state of wait and see, at least until next week, "said Art Hogan." And the instructions of the company will probably still conservative in fiscal cliff face. "

BoJ easing expectations (Back) Haunting Yen

U.S. dollar to snap a two-day losing streak and turned to its highest level versus the 2 ½-year return as the Yen rising expectations of monetary policy easing Japan. Thus forcing some investors to sell the Japanese currency. Prime Minister Shinzo Abe on Wednesday reiterated its call to the Bank of Japan to raise the inflation target to 2%, while Finance Minister Taro Aso urged the central bank to act more aggressively to fight deflation.

Prevent Data Rate Aussie Retail Sales

Reduce the rate of appreciation of the Australian dollar after a government data showed a surprise decline. Report of the Bureau of Statistics show Australia retail sales declined 0.1% in November, which confront the expectations of a rise of 0.3% from economists. The rate Aussie also continue overshadowed speculation that the Reserve Bank of Australia will cut interest rates next March to boost the economy.

Oil Weakens After U.S. Oil Stocks Soaring

Oil slipped after a government report showed that stockpiles of crude and fuel oil the United States jumped last week as production rose nearly to its highest level in nearly 20 years. Oil fell after the Energy Department said crude stockpiles rose 1.31 million barrels to 361.3 million barrels, oil production reached its highest level since 1996. Yesterday the U.S. Department indicate that will pump as much as 7.92 million barrels per day in year of 2014. "There is showing significant growing in supply in the market," said Adan Wise, an analyst at MAM in Boston. "Domestic production have some indicated to continues to grow. DOE said yesterday that they expect production to rise 23% in two years, which would bring the production level as in 1980. "

Gold Ends Low On Stronger Dollar

Gold futures ended lower on Wednesday, weakened again after a substantial gain in the previous session, as the stronger dollar and rising U.S. equities that have lured investors to stay away from the precious metal. Overall, "with respect to gold so far, the buying of investors because they believe the rhetoric in the media about the prospect of (quantitative easing from the Federal Reserve) that will end faster is not credible," said James West, Midas Letter Opportunity economist Fund. So investors continue buying "as a protected asset of the U.S. dollar due to the impairment of quantitative release."