U.S. Budget Optimism and Euro Rally

The Solid Euro Above 1.3200. With the approach of the holidays, the dollar enters the stage konsolidatif although overall traded lower against major currencies. Market participants continue to monitor U.S. budget talks and despite signs of progress in the budget negotiations, the forex market does not respond strongly about it, while many analysts assert that the deal should have expected at this point. On Tuesday, the euro and the pound hit a high against the dollar, while the currency-related commodities such as AUD and CAD moved lower after the RBA said that mining investment is estimated to have peaked. Meanwhile, the greenback traded above 84.00 against the yen, this is the highest level in almost eight months, as the Japanese currency weakened amid speculation the BOJ might be easier to make policy further on Thursday. "When the terms of trade is rather thin and could move unexpectedly, our bias for further currency trading is bullish in the short term". Said Nick Bennenbroel, an analyst at Wells Fargo Bank.
 

Sterling Mute Fear Inflation Data. Pound rose to their highest in more than 2 ½-month low against the U.S. dollar after UK inflation data dampen expectations of further QE by the Bank of England in the near future. UK consumer price inflation was steady at 2.7% in November after posting a staggering surge in the previous month. But some analysts warned that Sterling could again depressed if the BoE meeting minutes released Wednesday showed more dovish. "Sterling has shown strong performance in recent sessions," said Audrey Childe-Freeman, currency strategist at BMO Capital Markets. "Regardless of the numbers of stable inflation, the central bank meeting minutes and retail sales data was the main focus this week. Minutes a more dovish Sterling returns to risk a vulnerable position."

Hurting Aussie RBA Minutes. The Australian dollar hit after minutes meeting the Reserve Bank of Australia shows if the weak labor market is the main reason that drives interest rate cut in December. In the RBA's minutes also assess if China's growth is stabilizing. But the weaker currency often called Aussie is still limited after major economic indicators released Conference Board Australia has recorded an increase in October. "Expectations of lower interest rates further RBA Jula has brought pressure for the Aussie," said Takuya Kawabata in their speak, some researcher at Gaitame.com Research Institute Ltd.. in Tokyo. "But the Aussie back making demand after the market digested some positive comments about the growth of China. RBA may still be wait and see what happens before deciding further interest rate cuts next year."

U.S. Budget Optimism and Euro Rally. The euro soared to its highest level in more than a 7-month high versus the U.S. dollar as the emergence of signs of progress in the negotiations the U.S. budget, which sparked risk appetite in the market. Market players sold safe-haven assets like the dollar amid optimism that U.S. politicians will be able to reach an agreement to avoid "fiscal cliff ', a combination of tax hikes and spending cuts that risk drowning the world's biggest economy back into recession next year. The achievement of a new compromise on the U.S. budget assessed as a positive thing that can trigger risk appetite and favor riskier currencies like the euro, which in turn would weigh on the Greenback. The increase shown euro also helped push Spanish and Italian bond yields moved lower and boost demand for European stocks.

Overview of Forex Trading Today: EURO and USD same have a risk

Overview of Forex Trading Today: EURO and USD same have a risk - Last week was tragic weekend for the single currency Euro. Because currencies are going to rise memorandum (Rally) in a row in the last 4 weeks. Strengthening this turns out to end the week were triggered by gloomy economic future of Europe.

What causes the grim future of Europe? Last week ECB President Mario Draghi issued a statement that surprised many on the future of the European economy. The ECB lowered its growth forecast drastically after all this time applying a 0.75% interest rate is the lowest rate for European history. Projected GDP (Gross Domestic Product) declined 0.9% and will only flourish as much as 0.3% next year where it will lead to economic contraction. Draghi said in a speech that the European economy will weaken throughout 2013 and into 2013 as sovereign debt problems are still stuck. ECB expected strengthening of the end of 2013 will occur gradually along with the increasing demand for the global economy. European economic slowdown has led to speculation of impending rate cuts is now the lowest it has been during the history.

Meanwhile, a day after cutting its growth forecast by the ECB, the Bundesbank also issued a forecast that is no less bad for the country of Germany. Germany as the country with the strongest economy in Europe greatly affect the performance of the European currency. Germany has been the key to the economic development of Europe since the crisis began first times, but it looks to be a shield German resistance to other European countries looks begin to fade. If the "champion" of Europe is projected to weaken it will greatly affect the performance of all members of the Euro. Economic Data Industrial Orders and Output in Germany have fallen backwards a few months marked by the fall of export performance. Bundesbank stated that Germany is likely to enter a recession that is likely to occur in the last kwarta 2012 and continued into the first quarter of 2013. Bundesbank also lowered its economic growth the previous year's 1.0% to 0.7% in 2013 and a previous projection of 1.6% to 0.4%. Meanwhile, inflation is expected to fall from 2.1% to 2.0% this year and 1.6% in 2013.

Meanwhile, how is the country of Uncle Sam, the United States? The U.S. dollar got a fresh breath after data NFP (Non Farm Payroll) and the unemployment rate improved this month. Data previously NFP increased 138,000 to 146,000 this month. Un-employments level decreased from 7.9% to 7.7%. This data is really a trigger for the U.S. dollar to skyrocket upwards at the close of trading last week. The U.S. dollar index which last week reached the lowest figure on 79.56 fly to the highest weekly figure 80.65.

But if the United States is in the improvement in the economy. Some have noticed that the U.S. economy will not be as fast and easy as it is out of the current crisis. Still remember Fiscal Cliff or gap? Read more about it here or in the Fiscal Cliff. Until now, both sides between President Obama's administration and Republicans have yet to find the midpoint that can answer the challenge Fiscal Cliff. Meanwhile, if we count the end of December 2012 will come in 22 days then the U.S. will re-run the race of time provide the best solution for all parties and the American people. Some authorities opine that a solution will be reached over finding the midpoint between the two camps than providing a solution that really appropriate and necessary. From the data rate of NFP and unemployment rate in November alone several parties sound pessimistic in assessing the figures released as the numbers are not real. Peter Schiff, CEO and Chief Global Streatigs at Euro Pacific Capital gave the opinion that the U.S. government has set a low unemployment rate by convincing unemployment to employment benefits using them rather than encourage them to work.

Next week will be marked by some important economic data from various countries as reviewed below :

European Market :
- Industrial Production Italy and France.
- Sentix Investor Confidence.
- German ZEW Economic Sentiment.
- Euro ZEW Sentiment.
- Euro Industrial Priduction.
- EU Economic Summit.
- Eurogroup Meeting.
- Euro Manufacturing PMI
- Euro Services PMI.
- Euro CPI and Core CPI.

U.S. Market :
- Data Trade Balance.
- 10-yr Bond Auction.
- Data Core Retail Sales and Retail Sales.
- PPI data.
- Unemployment Claim.
- Core CPI and CPI.
- Manufacturing PMI.
- Industrial Production.
- FOMC Statement.
- Data Interest Rate
- FOMC Economic Projections.
- Federal Budget Balance.
- FOMC Press Conference.

Market Australia:
- Home Loans.
- NAB Business Confidence.
- Westpac Consumer Sentiment.
- Speech of the Governor of the RBA.
- Data Inflation Expectation.

UK Market:
- Claimant Count Change.
- Unemployment Claim.
- Speech MPC Member.
- CBI Industrial Order Expectations.

EURUSD

EURUSD rally to end long after the fourth week running. EURUSD could skyrocket to the highest value at 1.3125 and price should be much touched at low price at 1.2877 in late trading last week. Cutting economic projections by ECB and negative currents of the Bundesbank has made the European economy became more grim.

Our position on EURUSD next week is Neutral. Last week EURUSD was wracked by deep drop back to levels below 1.3000. But the euro's decline technically still in the corridor correction after several weeks of rallies. EURUSD is likely to move sideways for the next week. The price range would move between support the range of 1.2830 to 1.3000 resistance psychological in that area.

Negative at Yen, Reactive Prepare For U.S. NFP Data - NFP today

Negative at Yen, Reactive Prepare For U.S. NFP Data. USD / JPY spent the day trading in a range with negative bias, after falling to a daily low at 81.19 from its previous high at 82.60 before closing at 82.38.
"USD / JPY is likely to react immediately to the news of the U.S. workforce, soaring with weakened if a positive number and a negative data releases show up," said Valeria Bednarik, Chief Analyst at FXstreet.com. "Of course, if there is a strong deviation between the actual data and estimates, the closer the hope to be able to keep the yen in its new range of 81.80/82.60."


Technically, Ms. Bednarik said the indicators were flat in the neutral zone, giving little hint of the direction. However, if we consider the period of time is higher, the most obvious resistance: NORTH (weaker yen). Daily period illustrates the sequence divergence moving average for the yen, showing bullish trend momentum, and chart the weekly period looks ready to print second pin inside-week, as the market consolidates recent movements Yen. If bullish signals noted above 82.60/80 resistance area (Fibo 78.6%, a decrease 84.16/77.12) realized in the next few weeks, there may be room for the yen to run to 84.00 (high level in March 2012). Next bullish target is located at 85.50.

Oil inventories fell associated with ECB

U.S. crude oil contract on the Nymex on Friday moved down lower than the decline Wednesday, with a few traders in line with the falling price related weekly crude oil inventory data. Prices have been lowered for 3 days in a row. The analysts also cited the current price movement associated weak economic forecasts from the ECB. NYMEX crude oil contract in January fell 1.8% to $ 86.26 per barrel.

Greece & Germany Euro Boost Optimism

Greece & Germany Euro Boost Optimism. The euro soared to a 3-week highs versus the U.S. dollar on Friday, amid optimism the international creditors will soon agree on the next tranche of aid disbursement to Greece. Rebound index of German business sentiment also helped support the euro appreciation. But the gloomy outlook for the euro zone and the potential for further policy easing from the European Central Bank looks still limit the strengthening of the single currency.

"Without prejudice to the opportunity to reach agreement on Greek aid, some other news show if technical constraints and laws of leftovers. Was indicated if the potential for failure is looming," said Nick Bennenbroek, head of currency strategy at Wells Fargo in New York.


Optimistic Euro Liquid Will Help Greece
The euro jumped to a 3-week highs versus the U.S. dollar on Thursday, amid expectations that international creditors will soon agree on the next tranche of aid for Greece. The single currency was also helped by data showing euro zone manufacturing activity was not as bad as expected in November, easing concerns about a deeper recession. But the recovery looks fragile as the Euro is still gloomy economic outlook in the coming months, keeping the possibility of interest rate cuts by the European Central Bank.

"The lack of bad news on Thursday has helped Euro moved higher, after being depressed by the failure of international creditors to agree on aid for Greece earlier this week," said Saeed Amen, forex analyst at Nomura. Yields on Greek and Spanish bonds moved lower also helped shore up market sentiment, according to traders has prompted a number of purchases by U.S. investors.

Take advantage of Momentum, Aussie Print Weekly Increase
 

The Australian dollar posted a weekly gain against the U.S. currency following a rally in global stocks, which boosted demand for riskier assets. Yield on Australian 10-year bonds also rose to its highest level in almost a month amid speculation that European finance ministers would immediately disburse aid package for Greece. The improvement in China's manufacturing sector activity, Australia's biggest trading partner, has also been the country's export prospects shiny kangaroo.

"The Rise of the $ 1.03 area have built some momentum, which could potentially push the Aussie back to the $ 1.05 area," said Jim Vrondas, a manager at OzForex Ltd.. in Sydney.

Greek chaos Immerse Euro - Euro falls

Greek chaos Immerse Euro. The euro fell back to 2-month lows against the U.S. dollar in the new Monday night as the new uncertainties associated sticking out the next stage of the rescue package for Greece. Greek PM warns if Greece may be forced emotion out of the Euro zone if the Greek parliament approved an austerity package nor new proposed budget. The results of parliamentary voting against tightening package worth 13 billion euros will be released on Wednesday this week.

If parliament approved the austerity plan, the EU and the IMF will approve aid package for Greece. New Democracy Party and its coalition partner ecpectation narrowly won over the budget plan so as to secure the position of Greece in the euro zone at least for a while. Observed so far pairing EURUSD fell -0.44% at 1.2778, after reaching its lowest point at 1.2768 and intraday high levels daily at 1.2841.

Anxiety Greece is still a major factor dragging down EURUSD today, even likely fall into the range of 1:24 to 1:27 until the end of the year. Opportunities rise EURUSD likely triggered by profit-taking if Obama won re-election of U.S. President Tuesday.

Greece Euro Anxious to Get Help

The euro fell to its lowest level in nearly 8 weeks against the dollar on speculation Greece will be difficult to get a bailout fund, the risk for the future of Greece in the euro bloc. The euro weakened against all major currencies after Greek Prime Minister Antonis Samaras yesterday promised that the salary and pension cuts it proposes will be the last as he tried to gain political support for policies that would ensure the sustainability of Greek sovereign. "All the negative factors lining up for the euro," said Neil Mellor, a strategic foreign currency strategist at Bank of New York Mellon Corp.. in London. "It remains unclear how the voting will take place and we are still not sure if the voting was going well will have a positive impact for Greece and the euro zone."


Forex Still Focused On U.S. Elections

The foreign exchange market this week's U.S. presidential election fell on a Tuesday, which helped determine the outcome of the election is the fate of the fiscal gap, government regulations and policies of the Fed going forward. Issues fiscal gap consists of government spending programs and tax cuts are scheduled to expire at the end of this year, has the potential to send the U.S. economy back on track recession if U.S. policy makers failed to reach agreement draw up new laws.

Presidential and legislative election results this time certainly can determine the U.S. fiscal gap debate, but whoever the winner of the U.S. Presidential candidates deadlock in the legislature a more important role with fluctuations in major currencies. In addition, the results of the U.S. elections could also impact on the direction of the U.S. central bank's monetary policy, which has so far made a purchase of bonds and weaken the U.S. dollar due to higher supply-related dollar stimulus, it is likely to reverse direction if Mitt Romney was elected, as he give signal that would be The Fed's new governor is a more aggressive in tightening monetary policy rather than monetary easing at this time. Furthermore bergesr also focus on ECB monetary policy meeting on Thursday, although there has been no change in monetary policy expectations, but investors are still waiting for confirmation bailout Spain.


Some Uncertainties haunt Euro

The euro sank to its lowest in nearly two-month high versus the U.S. dollar on Monday as uncertainty about the outbreak of the next disbursement of bailout for Greece stage. Investors also look extra cautious ahead of the U.S. presidential election on Tuesday. EURUSD is currently offered in the range of 1.2785 or about 0.2% below the closing price on Friday, after touching the lowest level at 1.2777 daily. Concerns over Greece weigh on the currency the 17-nation bloc earlier this week, ahead of the parliamentary vote on the plan of tax increases and cuts in new budget required by Troika. Failure to meet these requirements will threaten bailout next stage, which is indispensable Athens to avoid bankruptcy.

"Some traders seem to also start looking further indication of the weakening euro, after trading in the range of 1:28 to 1:32 that has curb euro since mid-September," said Michael Derks, chief strategist at FxPro. "Dollar bullish movement also needs to be addressed with care, Obama's victory is likely to trigger some profit taking on Wednesday." U.S. Presidential election process will begin on Tuesday, the latest poll shows support for the thin sound differences between President Barack Obama and Mitt Romney.

5 Important Things Before the Open Market

5 Important Things Before the Open Market. 2 month high to touch USD against a basket of currencies on Monday after U.S. jobs data released last week that emphasizes the fundamental strength of the U.S. economy. EUR now at 1.2828, still fails to address the gap that has opened weaker early Asia-Pacific trading session, only two days before the U.S. presidential election. The euro has weakened more than 1.6% of the value of the weekly opening Monday. Starting this week, the Nikkei - Japan observed decline in negative territory but still thin on the psychological 9000 because fewer investors away from risky activities before the advent of the results of the American election. After opening in negative territory, the Hang Seng index will likely trade depressed all day because the other major Asian indices dragged the now weakened and Wall St. which sank at the weekend. Performance auto shares had fallen sharply among Hyundai Motor dropped 4.9% to KRW204, 500 and Kia Motors Corp. which fell 4.8% to KRW57, 600, making KOSPI fell 0.3% to 251.20.

Malaysian palm oil palm oil contract fell by more than 3% to its lowest level in more than three weeks Monday, as traders continued to fret over high inventories in Malaysia. The main producer of crude oil, Saudi Arabia has raised oil prices for buyers from Asia in November as much as 20 cents, said the government-owned company, Aramco.

German Chancellor Angela Merkel said the European sovereign debt crisis will last at least 5 years or more.
Sharp Corp., the worst performing stock, move down in Tokyo after estimating a loss of $ 5.6 billion and said there were a number of questionable debt with efforts to survive. The credit status of the company is included in a "junk" by Fitch Ratings.


Asia Market Despite Negative Pretty Optimistic

Until the afternoon session at the beginning of the week (Monday, 05/11) in general Asian market still appeared to move in the negative territory mainly because of the attitude carried over selling investors who do this weekend including the selling happens on Wall Street. And investors seem to reduce activity at risk as market participants are now looking forward to the certainty of the U.S. presidential election this week. Even data manpower - Non-farm payrolls and U.S. factory orders that appear improved above expectations, unable to stem the negative market sentiment for profit-taking.

In Asia, the Nikkei - Japan appears corrected to 9000 broken down psychologically as investors dumped riskier assets ahead of the emergence of a number of the results of the American election. But the Nikkei was able constrained due to weakening the yen weakened and Toyota Motor Corp. stock rebounds. that shot up to 2.2% after the auto giant NHK said it plans to increase its operational profit forecast.

While the exchanges in Hong Kong's Hang Seng also degraded because dragged other Asian indexes fell and Wall St. now. which sank at the weekend. However, a number of buying stocks that look cheap as possible will have the stock color that will help limit the further weakening of the index. Investor sentiment today was quite positive after the data of non-manufacturing activity soared to the level of China's PMI 55.5 in October, from 54.3 previously, further confirmed that China's economy growing gradually recover.

Stimulants Need Strong Euro

The EUR / USD this morning activities are still in the range of 1.2824. The euro does not seem to have enough power to stay away from low levels. Exchange rate recorded has fallen 1.6% from current levels the market opened early last week. The weakening euro came two days before the U.S. presidential election.

Valeria Bednarik, chief analyst at Fxstreet.com said "Momentum is bearish if the currency of view the one hour chart still looks strong despite the currency has moved in oversold level. While 4 hour chart also confirms currency movements still tend to be weak, "explains the analyst. "Aussie if the key support level has reached the level 1.2800 at 1.2745 (38.2% retracement) and 1.2610. While the strong resistance level at 1.2880 Aussie. " Support levels at 1.2790 and 1.2745 while resistance levels at 1.2840, 1.2880, and 1.2910.

Euro Still in Narrow Range Under $ 1.3

Euro Still in Narrow Range Under $ 1.3. The single currency Euro seems still stuck in a narrow range in the range of negative (Monday, 05/11) after last weekend falls to its lowest
level in 3-week Puspa vs U.S. dollar (USD). Strengthening of the USD against the EUR, especially since fundamental data showed that the U.S. economy created more jobs in the last month. The euro also weighed down by data re-confirms the contraction in the manufacturing sector.

Eurozone manufacturing index slipped to figure recorded 45.4 in October from 46.1 in the previous month. The downward break the recovery of the manufacturing sector which has shrunk in the last 2 months. Until the Euro was recorded during the sessions move narrowlyon the area of ​​$ 1.2825 after only rose to a high of $ 1.2839, in contrast to the high levels achieved at the end of last week at 1.2950 perdollar.

As a result, the market sentiment assumes that the current crisis in Europe appears far from completion as the government continues to tighten the spending cuts, while the global economy is showing signs of slowing.


Ahead of Key Data, Aussie Tough

Ahead of the release of data on retail sales and the trade balance at 07.30 pm, the AUD / USD moved in the range of 1.0342. with low level at 1.0329 and a high level at 1.0347. Formerly at 5:30 pm, has released data that appear AIG services index by 42.8 points compared with 41.9 the previous month.

Greg McKenna, CEO of Lighthouse Securities and former chief currency analyst at NAB and Westpac said, "I think the Aussie moving pretty good when seen from the fundamental data., But global investors still require a more powerful instructions as an alternative to market direction."

"Strengthening USD feared to push the exchange rate AUD / USD currency but massive selloff likely will not happen," added Greg. Level support AUD / USD at 1.0300 and 1.0240. Resistance levels at 1.0379, 1.0405 and 1.0431.


Slow Market Risk; Profit Taking

Starting this week (Monday, 05/11), Asian markets generally move in the negative territory mainly because of the action brought by investors selling conducted over the weekend, including a sell-off that occurred on Wall Street. Today it seems investors reduce risky activities as market participants look forward to the middle of the U.S. presidential election certainty this week. Even data manpower - Non-farm payrolls and factory orders arising improved above expectations, unable to stem the negative market sentiment for profit-taking.

Throughout the month of October 2012, a new field of successful employment in the United States has reached 171 thousand, and that is a positive sentiment to Barack Obama when the presidential election campaign. And it's certainly going to decrease the popularity of his opponent in the election is Mitt Romney who is now the idol of the stock market on Wall Street. While the single currency euro still seems stuck in a narrow range in the range of negative after last weekend falls to its lowest level in 3-week Puspa vs U.S. dollar (USD). Strengthening of the USD against the EUR, especially since the data showed that the U.S. economy created more jobs in the last month. The euro was also weighed down by data re-confirms the contraction in the manufacturing sector.

Eurozone manufacturing index slipped to 45.4 recorded in October from 46.1 in the previous month. The downward break the recovery of the manufacturing sector in the last 2 months. As a result, the market sentiment assumes that the current crisis in Europe appears far from completion as the government continues to tighten the spending cuts, while the global economy is showing signs of slowing.

The U.S. Dollar Index High Touch 2 Months

The U.S. Dollar Index High Touch 2 Months. The U.S. dollar touched 2 month high against a basket of currencies on Monday after U.S. jobs data released last week that emphasizes the strong fundamentals of the U.S. economy. As the dollar held near a four month high against the yen and the euro are also touched the low 5 weeks, despite the uncertainty of the election on Tuesday may still not provide a strong potential for what will happen later. The U.S. Dollar Index, an index that measures the value of the U.S. dollar against six other currencies, moved up for highest at 80 629 points, its highest level since 7 September.

Stuck Below Yen 80.50

Yen get early start position to start the high level at 80.54, though only last a moment, when the yen back to the initial level and the session low of sessions recorded at 80.40. Currently prices are in the mid range of the movement, was last seen at 80.47, while the local stock market there is still showing mixed movements with a negative signal, with the Nikkei index is still moving down 0.33%, though still above the level of 9000.

"Graph per hour", said Valeria Bednarik, Chief Analyst at FXstreet, "shows the indicator SMA-100 were met with SMA-200, although some indicators represent the wrong side now, still in the middle price. In the 4-hour chart, technical readings also gave a saturated, although prices held near the height ", notes the analyst. He also went on: "in general is still bullish signal for the yen to rise in the surviving signal for the yen. Recent support in DMA-200, which hold the movement down a few times in the last week, today is about 79.60 ", concludes Bednarik.

Analysts said that the range of support that will be recorded at 80.30, 80.10 and 79.70. While the range of 80.60 resistance will be recorded, 81.00 and 80.45.


Euro Failure to Close Gap Weak Opening

The euro is currently at 1.2828, still fails to address the gap that has opened weaker early Asia-Pacific trading session, just two days before the U.S. presidential election. The euro has weakened more than 1.6% of the value of the weekly opening Monday. When Valeria Bednarik notes: "hourly chart shows the bearish momentum is still strong even though some indicators began to leave the oversold territory, while the 4-hour chart shows the trend of the movement down," the analyst said, adding: "Support strong, when broke 1.2800 , located on the 38.2% retracement at 1.2745 of bullish daily and high in June. There is a daily closing below it is expected to form a stronger selloff, and the 1.2610 level will likely happen this week. For the short term, the sale will be formed in the interest of previous support at 1.2880 area as an area of ​​resistance ", concluded Bednarik.

Range of support recorded at 1.2820, 1.2790 and 1.2745, while resistance will be recorded in the range 1.2840, 1.2880 and 1.2910.

U.S. Dollar Win Post-NFP

U.S. Dollar Berjaya Post-NFP.  The U.S. dollar managed to score the biggest weekly gain in more than three-month high against the yen after data showed the U.S. economy created more jobs than expected last month. 171,000 new jobs created in the U.S. during the month of October, which far exceeded expectations of 125,000 jobs growth. However, the U.S. unemployment rate still recorded a slight increase to 7.9%, according to predictions.

"Dollar Rally makes sense because the world's largest economy showed signs of recovery faster than other parts of the world," said .  Andrew Wilkinson, chief economic analyst at Miller Tabak & Co.. in New York. Yen continued to be in that pressure after some recent data and Japanese corporate earnings showed weakness. Moreover quarter economic output data 3rd the plan will be released on November 11 is also expected to contract.

Manufacturing Sector Contraction overload Euro

 The euro fell to a 3-week lows versus the U.S. dollar on Friday after data showed the U.S. economy created more jobs last month. The euro was also weighed down by data confirming the occurrence of a contraction in the manufacturing sector. Eurozone manufacturing index slipped to 45.4 in October from 46.1 in the previous month, according to Markit Economics in London. The downward break the recovery of the manufacturing sector are shown in the previous 2 months.

The euro is still burdened by a Greek court on Thursday, stating that the pension reform required by international creditors may be unconstitutional. Thereby triggering anxiety about applying step austerity measures needed to secure reimbursement Athens next bailout.


Failed to Save the Sterling Construction Data

 Pound sharply lower against the greenback on Friday after U.S. jobs data boosted the outlook for the world's biggest economy. But Sterling is still able to continue dominance against the Euro, helped by the UK construction data were better than expected. UK construction PMI expanded again in October with a rise to 50.9, although the company remains cautious on future growth. Some recent UK economic data has supported the positive optimism over economic recovery.

To further focus of investors will be drawn to the data of the dominant services sector PMI on Monday. Market participants will also be looking forward to the BoE rate decision on Thursday, which policy makers will also decide whether to add to its asset purchase program worth £ 375 billion, or not.

Dollar Gains Ahead of U.S. Data - Fundamental Forx News Of Today

Dollar Gains Ahead of U.S. Data. The dollar rose against most major currencies after U.S. data fanned estimated employment figures today showing a recovery in the largest economy in the world. Yen extends reprieve against most major currencies as signs of weakening Japanese economy and coupled with disappointing results on Japanese corporate earnings spurred speculation the Bank of Japan will add to monetary easing.

"If we get very good data from the U.S., we will see investors hunt for dollars, as the U.S. dollar will strengthen" said Sue Ann Lee, an economist at United Overseas Bank Ltd.. in Singapore. "When we get the data very bad and some things not so well, usually dollar for dollar was also supported safe-haven currency."


Comment Swan injures Aussie


Aussie weakened at the London session, pressured by comments from Australian Treasurer Wayne Swan are back many hopes of RBA monetary easing at a meeting next week. "Australia's financial assets have now become part of the global portfolio allocation. This has encouraged the flow of foreign funds into Australia so as to encourage the strengthening Australian dollar," said Swan. "With fiscal policy on a consolidated and controlled inflation the Australian economy still has room to get a lower interest rate."

Swan and several other ministers in the cabinet goverment has prompted the central bank to ease monetary policy to help the economy at a time when the government is trying to record a budget surplus. Reserve Bank of Australia has cut interest rates by 25 basis points at the October meeting. The latest survey also showed the RBA will cut rates again by 25 basis points to 3% at the meeting of 6 November.