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[Darika]

The dollar was mixed versus other major currencies Wednesday morning in New York, holding most of its recent gains versus the euro while coming under modest pressure against the yen. With little first-tier economic data for traders to consider, attention will turn to how equities markets behave amid the release of another flurry of key corporate earnings results.

Boeing, AT&T, Wells Fargo and McDonalds are just out with quarterly earnings. US stock futures continued to point to a lackluster open as traders weighed those results.

In news from the housing sector, mortgage applications in the U.S. rose last week as lower interest rates encouraged refinancing. The Mortgage Bankers Association's index of applications rose 5.3 percent to 1,172.2 in the week ended April 17, from 1,113.2 the week before.

On Tuesday, Treasury Secretary Tim Geithner said that the "vast majority" of U.S. banks have enough capital and hinted that the credit markets may be thawing following their deep freeze.

Geithner will again take center stage this morning, speaking about the recession at 9 am ET.

The dollar was range-bound versus the euro Wednesday morning, clinging to its gains from a recent run-up. The buck hovered between 1.2900 and 1.3000 in early dealing, moving to the lower end of that range approaching 8 am ET. On Monday, the dollar hit a monthly high of 1.2887.

Meanwhile, the dollar was weaker against the sterling this morning as traders reacted to the release of the minutes of the latest Bank of England policy meeting. The dollar slipped to 1.4650, giving back its gains from the previous session and moving back towards last week's multi-month low near 1.5000.

Wednesday, the minutes of the Monetary Policy Committee meeting of the Bank of England held on April 8 and 9 showed that policymakers voted unanimously to hold the Bank Rate at a historical low of 0.5%.

The minutes also revealed that all the nine members of the MPC stood united while deciding to continue with the initial asset purchase plan worth GBP 75 billion.

Also, the jobless rate in the UK was 6.7% for the three months to February 2009, up from revised 6.1% in the previous quarter, the Office for National Statistics said Wednesday. That was in line with economists' expectations.

The dollar eased a bit versus the yen this morning, slipping to 97.73 before finding support near Monday's 3-week low of 97.64. The buck has leveled off since hitting a 3-month high of 101.43 earlier this month.

Export-driven Japan's trade balance for fiscal 2008 suffered its first annual deficit in nearly three decades, data released Wednesday showed. The Ministry of Finance said Japanese exports plunged a record 16.4% to Y71.14 trillion during the fiscal year ended in March.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

News are provided by InstaForex in partnership with RTT.

[jeff15]

China’s economy to improve in second quarter enhanced by increasing investment and a slower decline in exports, a leading government economist remarks on Friday.

According to latest Forex updates the annual growth in GDP slows down in the first quarter from 6.8% to 6.1%, but economists said this marked a development in sequential, quarter-on-quarter increase.

This trend will continue, according to Zhang Liqun an economist with the Development Research Centre, a think tank under the China’s cabinet, the State Council, as demand and supply come into balance.

In March export declined by 17.1% from earlier year, improving from 25.7% decrease recorded in February. Zhang said that he expected exports for all of 2009 to reduce 10-15%.

The pace of investment, which rose up sharply in the first quarter will continue to gather momentum all through the year, Zhang said, without giving any estimate.

Fixed-asset investment expanded 28.8% in the first three months as compared with past years as the first stage of Beijing’s 4 trillion Yuan ($585 billion) stimulus planned break down.

The economist said that he expected a development in overall domestic demand, determined in part by real estate markets.

[jeff15]

On Friday, overall, although durable goods orders and new home sales coming in greater than had been expected, the USD declined in the board market as US equities posted strong gains on the last day of the week in response to higher than expected earnings. Traders’ appetite for risk continue to rise, as stocks continue to increase, hurting the USD because demand for safer assets turndown. According to Forex updates the USD end the day weaker against all the major currencies, excluding the Pound, which lost ground after it was reported the UK economy contracted much more than predicted in the first quarter of 2009. US goods orders fell down by 0.8% while the core number fell down by 0.6%.

Source- and CNBC

[jeff15]

On Monday, the USD and the JPY rose and the Mexican Peso fell on concern about the increase of swine flu, which has killed 103 people in Mexico and infected people in the Canada and US. The WHO declared the flu a “public health emergency of international concern” that can become a deadly disease or global occurrence of serious disease.

[jeff15]

The COT Index is the percentile of the dissimilarity between net approximate positioning and net marketable positioning calculated over an exact number of weeks (either 52 or 13). A reading close to 0 proposes that a bottom is forming and an interpretation close to 100 suggests that a top is forming. The readings are for the authentic currency, not the currency pair.

[Darika]

Extending morning deal's downtrend, the Mexican peso weakened against its US counterpart during New York afternoon trading on Monday. At present, the peso is trading near a 26-day low of 13.9755 versus the greenback, compared to Friday's North American session close of 13.3398. The next downside target level for the Mexican currency is seen at 14.20. The peso plummeted on concern that the outbreak of the swine flu will deepen the country's economic slump.

The flu outbreak may slow dollar flows from tourism and curb consumer spending at restaurants, theaters and other venues where crowds gather. Suspected deaths in Mexico have risen to 103 from the 81 announced earlier, Health Minister Jose Cordova said yesterday.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

News are provided by InstaForex in partnership with RTT.

[Darika]

The euro showed mixed trading against its major counterparts after a preliminary report from the German statistical office showed that consumer price annual inflation rose to 0.7% in April from 0.5% recorded in March. While, the euro gained slightly against the pound it moved sideways against the rest of majors. As of now, the euro is trading at 0.8916 against the pound, 1.3076 against the greenback and 126.26 versus the yen.

On a monthly basis, the consumer price index, or CPI, was flat. Economists had forecast the CPI to climb 0.8% annually and 0.1% month-on-month.

The harmonized index of consumer prices, or HICP, climbed 0.7% year-on-year after rising 0.4% in March, while the consensus forecast was for a 0.8% increase. Compared to March, the HICP was flat.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

News are provided by InstaForex in partnership with RTT.

[Darika]

The German government is expected to slash its economic forecasts for 2009, reports said Wednesday, citing sources close to the government.

Gross domestic product, or GDP, is expected to decline 6% in 2009, the worst contraction since the World War II. The forecast was cut from a 2.25% fall predicted in January. Economy Minister Karl-Theodor zu Guttenberg will announce the latest set of forecasts at 7.00am ET.

Last week, a group of German economic think tanks jointly lowered their forecast for the biggest Eurozone economy. They now expect Germany to contract 6% in 2009, quicker than a 2.25% fall estimated previously. For 2010, the forecast group does not expect a dramatic recovery. GDP should decline 0.5%. Unemployment was forecast to rise to an average of 3.7 million this year and to 4.7 million next year.

In March, seasonally adjusted unemployed persons in Germany rose 69,000, bigger than 50,000 increased in February.

The International Monetary Fund forecasts the German economy to contract 5.6% in 2009 and 1% in 2010. Meanwhile, the Commmerzbank expects Germany to shrink 6%-7% this year.

On April 27, European Central Bank Governing Council member Axel Weber told German newspaper Franfurter Allgemeine that the German economy is unlikely to grow before the second half of the next year.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

News are provided by InstaForex in partnership with RTT.

[jeff15]

Asian stocks gain a 7th time in eight weeks, sending a regional index to the uppermost level in four months, as earning figures and production raised confidence the region’s economies have on track to recover.


Canon Inc., the world’s leading seller of digital cameras, increased 8.1% after cost cuts helped the company to boost its profit predict and Japan’s production levels augmented for the first time in six months. Li & Fung Ltd., the largest supplier of toys and clothes to Wal-Mart Stores Inc., added 10% ahead of a report that China’s manufacturing companies increased for a 5th month. Lion Nathan Ltd. soared 41% after getting a takeover offer.
The MSCI Asia Pacific Index added 1.6% this week to 90.91, a level not seen since January. Asian markets have rallied 29% since the MSCI benchmark goes down to an almost 6-year low on March 9.


Japan’s Nikkei 225 Stock Average surged 3.1% to 8, 977.37. Indonesia’s Jakarta Composite Index placed the region’s largest gain with an 8.3% advance after companies with PT Bank Rakyat Indonesia, the country’s second largest financial services provider, reported increasing profits.

[Darika]

The Monster Employment Index for the U.S, which measures online job availability in the country, increased to 120 in April from 118 in March, the online job-advertising agency Monster Inc. said Thursday. The rise in the index indicates that there was a slight increase in online job opportunities. However, on a yearly basis, the index was down 31% in April.

Jesse Harriott, senior vice president and chief knowledge officer at Monster Worldwide said, "April's rise in online recruitment activity was in line with seasonal expectations and suggests that the pace of slowdown in the U.S. labor market is moderating."

During the month, protection service occupations showed the largest monthly gain. Accommodation and food service as also the art and entertainment industries showed an increase in online job demand in April. Transportation and warehousing industries also showed a strong rise in online job opportunities.

Meanwhile, online job recruitment activity in the mining and extraction sector fell further in April, reflecting the impact of the current recession on commodity demand, which lowered business expansion. Legal, architecture and engineering occupations also experienced declines in online job opportunities in April.

Region-wise, 19 out of the top 28 major U.S metros recorded gains in online recruitment activity in April.

The Monster Employment Index is a broad and comprehensive monthly analysis of U.S. online job demand conducted by Monster Worldwide, Inc, with data being collected since October 2003.


Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

News are provided by InstaForex in partnership with RTT.

[Darika]

In early European deals on Thursday, the dollar slipped to new multi-month lows against its European and Swiss counterparts as fresh concerns about the strength of global recovery resurfaced.

Yesterday, the Federal Reserve lowered its forecast of U.S. economic growth for the next three years. Minutes from its April meeting showed the Fed projected the world's biggest economy to contract by up to 2 percent this year with the unemployment rate rising to as high as 9.6 percent.

They also showed that Fed policymakers had considered buying more securities to spur recovery, a move that would inject more dollars into the market.

At the April meeting the FOMC voted unanimously to keep the target range between 0 and 0.25 percent. In the accompanying statement the FOMC noted that "the economy has continued to contract, though the pace of contraction appears to be somewhat slower."

"Although the economic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions, economic activity is likely to remain weak for a time," the statement read.

Once again, the FOMC said that interest rates will remain exceptionally low for some time, adding that they will "employ all available tools to promote economic recovery and to preserve price stability."

A disappointing 2009 outlook from Hewlett-Packard, the world's biggest PC maker, also fanned concerns about corporate profits in a slowing economy.

The dollar, which closed yesterday's trading at 1.1003 against the Swiss franc, fell to a new multi-month low of 1.0962 during early deals on Thursday. The next downside target level for the U.S. currency is seen at 1.07.

In early trading on Thursday, the dollar weakened to 1.3840 against the euro. This set the lowest point for the dollar since January 05. On the downside, 1.40 is seen as the next target level for the dollar. At Wednesday's close, the euro-dollar pair was quoted at 1.3781.

At 4:55 am ET Thursday, the dollar spiked up to 1.5518 against the pound, moving from a new multi-month low of 1.5819 hit in early Asian deals today. If the dollar gains further, it may likely target the 1.535 level. The pound-dollar pair was worth 1.5755 at Wednesday's close.

The pound plummeted after the Standard & Poor's revised the outlook on the U.K. to negative from stable. The rating agency affirmed 'AAA' long-term and 'A-1+' short-term sovereign credit ratings.

Standard & Poor's credit analyst David Beers said, "We have revised the outlook on the U.K. to negative due to our view that, even assuming additional fiscal tightening, the net general government debt burden could approach 100% of GDP and remain near that level in the medium term."

Rating outlooks assess the potential direction of a rating, typically over a period of up to two years.

In economic news, U.K.'s retail sales rose 0.9% in April from the previous month, larger than the expected increase of 0.5%. On a yearly basis, sales grew 2.6%, while economists were looking for a 2.4% rise.

Against the Japanese yen, the dollar is presently trading at 94.97, up from a new multi-month low of 94.31 hit at 9:25 pm ET Wednesday. The next upside target level for the dollar-yen pair is seen at 95.5.

An index measuring tertiary industrial activity in Japan fell a seasonally adjusted 4.0 percent in March compared to the previous month, the Ministry of Economy, Trade and Industry said today, posting a score of 100.8.

That was sharply lower than analyst expectations that had called for a 1.5 percent monthly decline following the revised 1.3 percent monthly easing in February.

Investors are now likely to focus on the North American session, in which the U.S. leading indicator for April, Philadelphia Federal Reserve's manufacturing survey data for May and the weekly jobless claims report for the week ended May 16 are expected.


Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

News are provided by InstaForex in partnership with RTT.

[hyiperz]

it will be great if you also give recommendation of buying certain pairs based on the news you published

[Darika]

You can get all the recommendations regarding the whole trading and also certain currency pairs, visiting the Forex Analysis review page at our website: http://instaforex.com/articles/?lang=en]Instaforex

Hope it will be useful information.

[Darika]

Monday, German Ifo business confidence survey is the only major report due from the European economies.

At 2.00am ET, the Statistics Estonia is scheduled to release the foreign trade data for March. The trade deficit stood at EEK 1.1 billion in February, smaller than the EEK 1.57 billion deficit in January.

At 3.00am ET, a slew of statistical reports are due. Hungarian retail sales are forecast to drop 3.5% annually in March, larger than the 3.2% decline seen in February. Meanwhile, Czech consumer confidence and Spanish PPI are also due.

At 4.00am ET, a monthly business confidence survey is due from the Munich-based Ifo Institute for Economic Research. German business confidence is seen at 84.9 in May, up from 83.7 in April. Meanwhile, the expectations index is forecast to rise to 85.4 from 83.9 and current assessment to improve to 84.5 from 83.6.

The Hungarian Central Bank is set to announce the interest rate decision at 8.00am ET. The central bank is widely expected to hold the base rate at 9.5%.


Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

News are provided by InstaForex in partnership with RTT.

[hyiperz]

darika, it will be great if you also provide forex signal based on the fundamental news you've provided