Archive for currency trading – Page 2

Eurodollar Daily Update: 2nd April 2009

Thursday, April 2nd, 2009

A veritable host of fundamental news on the economic calendar for today whose affect on the market will be distorted by the G20 summit, of which of course the most important s the so called minimum bid rate (interest rates to you and me) for the eurozone and released by the ECB.  The forecast is for the ECB to cut rates taking eurozone interest rates down to a new all time low of 1% in what could be seen as its last rate cut for some time to come.  In addition the ECB looks likely to adjust its overnight deposit rate to avoid pushing inter bank rates too low.   The rate decision itself is often overshadowed by the ECB press conference which is held 45 minutes after the announcement.  The conference call is divided into two parts, the first of which is a pre-prepared statement outlining the bank’s interest rate decision, which is then followed by a question and answer session.  It is during this latter part of the session that unscripted answers are often pounced upon by the markets as they sometimes reveal clues, not immediately evident in the written statement, to future monetary policy by the bank.

Whilst the press conference in Europe is in progress we then have the unemployment claims being released in the US by the Department of Labour which highlight the number of people claiming for unemployment insurance during the past week for the first time.  The number is expected to be much the same as last time at 649k, however, following yesterday’s awful monthly ADP figures it would not be a surprise to see these come in far worse than expected which could, once again, negatively affect the US dollar.

The next item on the economic calendar is a speech by Jean Claude Trichet who is due to speak about the future of the euro at an event in Frankfurt, whilst back in the US we have factory orders being released which will highlight the change in the total value of new purchase orders placed with manufacturers.  This is generally considered a leading indicator of production with rising purchase orders signalling an increase in economic activity, and the forecast is for a positive 1.5% against a negative 1.9% the last time.

Finally the joker in the pack due out at 15.30 GMT is the final communique from the G20 – as my old chemistry teacher was always telling us:  “empty vessels make the most noise”!!

Don’t forget you can keep up with all the latest currency news, live currency charts and fundamental news by simply following the relevant links.  I have also included details on an excellent ECN broker.

Eurodollar Daily Update: 1st April 2009

Wednesday, April 1st, 2009

This morning’s fundamental news on the economic calendar for the euro to dollar pair kicked off early with the German retail sales figures coming in worse than expected at -0.2% against a forecast of 0.2% (clearly the Germans do not have the same approach as the Italians whose philosophy is to shop their way out of trouble!!)  This was followed by the final manufacturing PMI data for Europe which came in marginally below forecast at 33.9 which is generally a leading indicator and is based on a survey of purchasing managers who provide feedback on the business conditions in the market.   The last piece of economic news for Europe this morning is the unemployment rate and forecast to be at 8.3% but these figures tend to have a muted effect on the market.

Of far greater significance are the numbers due for release in the US this afternoon, starting with the ADP non farm employment, a relatively new indicator but one which has become an accurate guide of the numbers for the non farm payroll employment figures released on the first Friday of each month.    The forecast is for -660k against a previous of -697k showing a slight improvement, although still awful numbers in the broader context.  If the numbers come in better than expected then this could provide a boost to the US dollar.  Two hours later we have 2 other red flag indicators: the ISM data and pending home sales.  As an important leading indicator the ISM is based on a survey of around 400 purchasing managers who provide responses to questions about business conditions.  Any figure above 50 indicates industry expansion and below 50 an economy in contraction and today’s figures are forecast to be at 35.8 which is flat on last month’s.  At the same time we have pending home sales which again are considered a leading indicator and represent the number of homes under contract and about to be sold, excluding new build.  This data is released around 2 weeks after the existing home sales but provides a forward view of market conditions as contracts are generally signed several weeks before the home is considered to be sold.  The forecast is for 0.2% against a previous of -7.7% showing an improvement in the housing market which could convert into dollar strength this afternoon.   However, with the G20 now in full swing and an ECB rate decision tomorrow market may take a wait and see approach until the conclusion of the conference in London tomorrow evening.

Finally we have crude oil inventories which although released in the US tend to have more impact on the Canadian dollar due to Canada’s position as a leading energy provider.  The forecast is for 3.1m against a previous of 3.3m which indicates a further increase in the barrels of crude oil held in inventory.

Euro to Dollar News : 31st March 2009

Tuesday, March 31st, 2009

Tiptoeing through the fundamental news from the economic calendar from this morning all Eurozone numbers came in worse than expected (other than Italian retail sales which posted much better than expected figures – as an Italian why does this not surprise me!!)  which has, so far, failed to dent this morning Euro’s rally.  The market is now waiting for some very important numbers starting with the Chicago PMI followed shortly afterwards by the red flag CB consumer confidence data.

The PMI data is a leading indicator and is based on a survey of purchasing managers in Chicago which asks them to rate the current business conditions including employment, production, new orders, prices and inventories and is released monthly.   This month’s figures will be particularly interesting given the problems in the US auto industry.  The data source is Kingsbury International and subscribers to the service receive the news 3 mins before the public release allowing them to trade the news in advance.  A figure above 50 indicates expansion whilst below indicates contraction and the forecast for this afternoon is for 34.3, virtually flat on last month’s number of 34.2.  15 mins later we have the CB Consumer Confidence number released by the Conference Board and again is a survey this time of 5000 households asking for a response on the current and future economic conditions.  Again this is considered a leading indicator and if the actual is better than forecast then this should be good news for the dollar.  Forecast is 26.8 against a previous of 25.

You can keep up to date with all the latest fundamental news developments, latest currency news on the economic calendar and live currency charts by simply clicking the appropriate links.  Finally if you are looking for a good ECN broker or fx broker simply follow the relevant link.

EURO to DOLLAR News for 30th March 2009

Monday, March 30th, 2009

A very quiet day on the fundamental news front which could best be described as the calm before the torrent of economic news, scheduled and unscheduled statements from various financial luminaries and government apparachiks all culminating in the non farm payroll numbers on Friday coupled with the G20 summit in London.    All of this is likely to lead to significant and unpredictable market volatility in all markets and particularly in the euro to dollar pair.

On the economic calendar for today we have a raft minor announcements ranging from German retail sales, Spanish Flash HICP, Belgian CPI but the main focus of attention is a speech by Jean Claude Trichet ECB President who is due to testify on the economy to the European Parliament Committee on Economic and Monetary affairs in Brussels this afternoon.  Traders and market watchers will be waiting for any signal either directly relating to the euro economy or indirectly to the G20 summit.

On such a quiet day (nothing from scheduled from the US) the markets sometimes pick on relatively minor fundamental news events in order to inject some movement which can make trading very tricky.

For all the latest live currency charts, latest currency news which is also on video and now includes a morning review of major support and resistance areas just follow the relevant links.  If you are looking for help with finding a good ECN broker or fx broker again just click on the links.

Euro to Dollar Fundamental News for 27th March 2009

Friday, March 27th, 2009

Although there no overtly “red flag” fundamental news items on the economic calendar today nevertheless there is a raft of data due to be released throughout the day affecting the euro to dollar pair.  The first of these is an interesting one and is the German Preliminary CPI which is actually drip fed into the market throughout the day as the various regions in German (of which there are 6) report their CPI figures at different times.  The preliminary release is the Eurozone’s earliest consumer inflation estimate and is given the size and current state of the German economy will be eagerly awaited.  These could come in at any time so just be aware of any peculiar and unexpected movements in currency pair today.  The forecast is for around 0.1%.

The next item on the economic radar for Europe is Industrial New Orders which is the change in the total of new purchase orders placed with manufacturers and is generally considered a leading indicator.   The forecast is for -5.7% against a previous of -5.2% indicating a further fall in this measure of economic sentiment.   If the actual is better than forecast then it will seen as positive for the Euro.

The focus now shifts to the US where the morning starts with Core PCE Price Index Data which measures the change in the price of goods and services purchased by consumers but excludes food and energy.  It differs from the Core CPI of yesterday as the index only measures those goods and services targetted at individuals.  Forecast is for 0.1% which is the same as last time. At the same time we have an index entitled Personal Spending which records the change in the total value of inflation adjusted expenditure by consumers.  The forecast here is for 0.2% against a previous of 0.6% and if the figures are better than expected we could see some positive dollar reaction.  This set of data rounds off with personal income which again is another index of income correlated spending which has a relatively minor impact on the market.

We round off the week with the revised UoM – University of Michigan consumer sentiment figures which is a composite index based on a survey of around 500 consumers which asks for their views on the current and future economic climate.  The survey assesses consumer confidence regarding personal finances, business conditions and purchasing power, and it is especially valued for its quick turnaround.  The University of Michigan Confidence survey is considered one of the foremost indicators of US consumer sentiment.  Declining consumer confidence levels usually accompany any fall in income or wages and precede drops in consumer spending. A low or falling UoM Sentiment value is considered an early indicator of an economic downturn. As a result, investors, retailers and traders alike all watch the figure for some  insight into the general health of the economy. UoM figures have recently a reliable forecasting tool in overall GDP.   The headline figure is calculated by subtracting the percentage of unfavorable replies from the percentage of favorable replies, and the forecast this time around is 56.7 against a previous of 56.6.

Attached to the UoM report is a further set of numbers which provide a view on inflation expectations and is based on a survey of consumers once again and their views on the expected price of goods and services over the next 12 months.

You can keep up to date with all the latest fundamental news, live currency charts and latest currency news by clicking on the relevant links.

Euro to Dollar News for 26th March 2009

Thursday, March 26th, 2009

Yesterday’s surprise speech by Treasury Secretary Timothy Geithner spooked the markets as it was completely unscheduled and his remarks about the long term future of the US dollar as the world’s currency reserve sent the currency into a spin.  This was seen as a 100 pip spike in a 10 minute trading session in the euro to dollar pair.  Clearly, Mr Geithner needs to learn how to choose his words more carefully and think twice about ambushing the markets in this way.

Today’s (scheduled!!) fundamental news on the economic calendar began in europe earlier with the GFK consumer sentiment index being released which came in slightly below at 2.4 versus a forecast of 2.5.  The index is based on a survey of around 2000 consumers who are asked to rate the current economic climate based on their personal views of the current financial situation.

The main news out later is in the US with the release of the unemployment claims followed by final GDP figures along with the GDP price index.  The first of these is expected to come in at around 650k and is the number of people filing for unemployment insurance on the week.  Although generally considered a lagging indicator it is, nevertheless, an important indicator of economic health.   Week on week figures suggest little change.  The final GDP figures are the least important of GDP results with the Advance being the most important.  Those released today are simply a confirmation of what the market already knows and therefore tend to have less of an impact.  The forecast is for -6.6% against a previous of -6.2%.  The GDP Price Index is also released at the same time and represents the change in price of all goods and services which are included in the GDP data.  Forecast is as for the last quarter at 0.5%.

At 14.00 GMT we have an appearance by Mr Geithner before the House Financial Services Committee where he is due to testify on “Financial Market Regulation” (ha ha) – the words horses, stables and doors spring immediately to mind.  Quite what market reaction will be is anyone’s guess given his less than stellar performances to date – Mr Geithner is rapidly turning into Henry Paulson Mark II.  Later in the afternoon we have yet more speeches, this time from Jeffrey Lacker, an FOMC member who is speaking at a Chamber of Commerce conference in Charleston.

You can keep up to date with all the latest currency news, economic news, live currency charts, live news and details on how to choose an ECN broker by simply following the relevant links.