Month: January 2011

By Anton Eljwizat

The pair has recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the 8-hour chart signals that a bearish reversal is imminent. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.

• Below is the 8-hour chart of the EUR/USD currency pair.

• The technical indicators used are the Slow Stochastic, Williams Percent Range, and Relative Strength Index (RSI).
• Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The Relative Strength Index (RSI) signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.

• Point 4: The Williams Percent Range has peaked near at the 0 marker, which means that there may actually be a strong level of downward pressure.

EUR/USD 8-Hour Chart

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

USD

The lack of newsflow during the Asia session ensured the price action was fairly subdued. Yesterday’s powerful euro advance has finally come to a halt, and the euro weakened slightly as the session wore on. EURUSD traded 1.3323-1.3373, USDJPY 82.49-82.86. Fed Chairman Bernanke, speaking at an FDIC forum on small business lending, said the risk of deflation has “receded considerably”. A disappointing U S jobless claims print helped the dollar claw back some ground against the Canadian dollar. Initial jobless claims jumped unexpectedly to 445k but claims data can be especially volatile around this time of year, reflecting huge seasonal swings as well as the impact of inclement weather. So a hint of caution may be needed with this latest weekly print, despite the slight pick-up in the key 4-week average. In other data releases, the nominal trade deficit was little changed at $38.3bn, but our analysts acknowledge some resulting upside risk to their 3.5% Q4 real GDP estimate. Today’s CPI report for December will provide the latest verdict on the efficacy of the Fed’s QE program. Our analysts are in line with the consensus, and expect the core print to fall to +0.7% y/y (prev. +0.8%). Retail sales, industrial production and University of Michigan confidence are also due, and our US economists are above consensus for all three reports. We expect the dollar will continue to respond favourably to improving US economic figures
EUR

The euro’s stronger rally yesterday led us to close out our short EURUSD trade recommendation, but we retain our bearish view on the currency.
ECB President Trichet’s comments at the policy press conference were slightly hawkish, suggesting that the ECB’s governing council is growing more concerned about inflationary pressures inside the Eurozone. This was not entirely surprising given that December’s initial CPI estimate came in above the ECB’s medium-term target of “below, but close to, 2%”. The final CPI estimates for December are due for publication today, and any upward revisions are likely to be euro-supportive.
Trichet acknowledged the risk that the ECB could revise up its inflation outlook, but said that stronger inflation has so far not impacted the ECB’s assessment. He stressed that inflation expectations are still anchored, but sounded a vigilant note saying that the ECB “are never precommitted not to move interest rates” and reminded the audience that the ECB hiked in July 2008.
ECB Executive Board member Stark did not appear to be in any hurry to tighten monetary policy. Referring to yesterday’s ECB meeting he said “we will monitor developments closely and the question is whether the upside risks that we spoke of today will materialise&we must wait and see.” ECB Governing Council member Liikanen added that Eurozone interest rates are appropriate in the current situation.
French President Sarkozy said he believes EURUSD is too high. There were further comments from Eurozone policymakers regarding the rescue fund, with a German government spokesperson stating that increasing the size of the EFSF is “not on the agenda”. German Finance Minister Schaeuble said any extension of the current rescue mechanism would send the wrong signal and said the German government continues to oppose a Euro-bond proposal. He also said the Eurogroup meeting next week is unlikely to yield any results and the goal is to get a permanent safety net by March.
JPY

Prime Minister Kan has reshuffled his cabinet. Kaoru Yosano takes over from Kaeida as Minister for the Economy and Fiscal Policy. Our JGB rates strategist notes that Yosano lies on the hawkish side of the fiscal debate, and is not an advocate of further monetary easing. Noda stays on as Finance Minister, which implies no change in FX intervention policy.
GBP

There was no change in MPC policy and we will wait for the minutes on Jan. 26 to see if sustained inflation levels are affecting MPC policymaker thoughts.
Industrial production was slightly softer than expected at +0.4% m/m

TECHNICAL OUTLOOK
GBPUSD breaks 1.5822 resistance
EURUSD NEUTRAL As long as key resistance at 1.3500 holds, view recovery as correction. Initial support at 1.3089 while resistance is at 1.3433.
USDJPY NEUTRAL Downside potential with break of 82.63; 83.67 and 82.31 mark the near-term directional triggers.
GBPUSD BULLISH Rise through 1.5822 has exposed 1.5911 ahead of 1.5965; support at 1.5719 yesterday’s low.
USDCHF BULLISH Focus is on 0.9784; a break here would expose 0.9852. Support is at 0.9605.
AUDUSD BEARISH The pair found support at 0.9804 ahead of 0.9753; resistance at 1.0020.
USDCAD BEARISH Bear trend remains; eyeing 0.9849/25, a break here would expose 0.9712. Resistance is at 0.9951.
EURCHF NEUTRAL Push above 1.2871 has exposed 1.3004; initial support at 1.2686.
EURGBP BEARISH Sharp rise through 0.8427 has exposed 0.8489; broader focus is on the downside with initial support defined at 0.8313 yesterdays’ low.
EURJPY NEUTRAL Break of 110.24 due to heavy intraday upward movement has exposed 111.13 Fibonacci level; support lies at 108.69.

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

By Yan Petters

On January 10, after the EUR/USD pair saw a third failed attempt to fall below the 1.2870 support level, a bullish correction took place, and the pair gained about 580 pips within four trading days. Is it possible to predict such turn of events? Let’s try to answer this using technical analysis.

First, please observe the EUR/USD 4-hour chart below; this will be the main tool we’ll work with in this article.

Now, let’s look for all the signs that could have driven us to suspect that a bullish reversal is about to take place.

• As written on the opening paragraph, the bullish correction only took place after the pair saw several failed attempts to fall below the 1.2870 level. When a currency pair sees such a strong support level – traders must question whether the market actually desires to see the pair traded below this level. It is no coincidence that the pair’s bearish move is blocked over and over again at the exact same level.

• Look at the Slow Stochastic indicator. First, a bullish cross was completed below the 20-line. This often means that a bullish correction might be impending. In addition, no less than three additional bullish crosses took place afterwards, all within a very short period of time. The first bullish cross has signaled that a bullish move might take place, the other bullish crosses that followed have signaled that the market is reluctant to let the pair resume to a down-trend.

• The MACD is probably the easiest to analyze. A bullish cross at the bottom of the section is very likely to predict a bullish reversal. As you can see, the MACD has never switched its indication, and continues to provide bullish signals.

• The Relative Strength Index (RSI) has provided two significant bullish signals. First, it rose above the 30-line, reaching out of what is referred to as the over-sold area. When the RSI crosses the 30-line and continues to point up, it usually mean that the currency pair will follow its lead. The second signal was given once the RSI failed to fall below the 70-line. If the RSI would have fallen below this level, it should have warned us that the bullish move might have reached its end. However, once the RSI reversed its direction, and once again pointed upwards – it signaled that there is still significant bullish pressure on the pair.

• The timing of the bullish correction could have been predicted using the Bollinger Bands. When the Bollinger Bands are tightening, it’s a clear signal that a sharp movement is likely to take place. Considering all the bullish signals written above, traders could have suspected that the Bollinger Bands are signaling that the bullish correction will take place soon.

• Last but not least – sophisticated traders could have noticed that a double top pattern has begun forming on the chart. Once the pair crossed the 1.3020 resistance level, the beginning of the pattern could have been observed by traders, and once the pair crossed the 1.3200 resistance level – traders could have seen it as a signal that the pattern will be completed, meaning that the pair will reach the 1.3450 level.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Although the euro had a very positive day on Thursday, the currency peaked against most of its main currency rivals in overnight trading and is currently in the middle of a bearish trend once again. The EUR/JPY is down almost 50 pips since last night, while the EUR/USD has dropped more than 30 pips in the same amount of time. Analysts are saying that the single currency is likely to drop further in trading today, as there are still significant doubts regarding the euro-zone economic situation.

Economic News

USD – USD Gains Forecasted for Today

The cycle of positive news out of the US came to an end yesterday, when the most recent unemployment figure showed a jump in the number of new people filing for unemployment insurance from the previous week. The greenback turned bearish following the report, and took losses against virtually all of its main currency rivals. The GBP/USD went up close to 140 pips yesterday, and peaked at the 1.5883 level. Meanwhile, the EUR/USD shot up over 260 pips, reaching as high as 1.3380.

While the dollar had an unusually bearish day yesterday, there are already signs that the currency is recovering. Investors are still concerned with exactly how far reaching the euro-zone debt crisis is and have returned to the safe haven buck as a precaution. The EUR/USD has fallen some 30 pips in overnight trading, while the GBP/USD has tumbled close to 60 pips since yesterday afternoon.

Today, investors will be paying attention to a batch of significant US news, set to be released at 13:30 and 14:55 GMT. The US Retail and Core Retail Sales figures as well as the Prelim UoM Consumer Sentiment report all promise to generate high levels of market activity before we close out the week. At the moment, analysts are predicting a slight decline in the Core Retail Sale figure and an improvement in Consumer Sentiment. How this will affect the greenback is yet to be seen, but traders can count on some dramatic price shifts to occur this afternoon.

EUR – Euro Hits Strong Resistance and Turns Bearish Once Again

The euro had an unusually positive day yesterday, as a positive Portuguese debt sale and a strong Spanish bond auction drew investors to the 17-nation common currency. Strong gains were recorded against practically all of the euro’s main currency rivals throughout the day yesterday, including the US dollar and yen.

The currency was not able to maintain its upward momentum past evening trading, as investors once again determined that the euro-zone economic recovery is still anything but certain. The EUR encountered strong resistance against the greenback at around the 1.3400 level, and is currently dropping toward 1.3300. Similarly, the EUR/JPY was not able to move past 110.70 yesterday, and is currently approaching the 110.00 level.

Turning to today, euro traders will want to pay careful attention to the euro-zone CPI and Core CPI figures, set to be released at 10:00 GMT. The Consumer Price Index is a measurement of the change in price of goods and services in the euro-zone, and is considered a key gauge of economic health. A positive figure may help the EUR turn around once again and close out the week on a positive note.

JPY – Yen Bullish Following Poor US Employment Figure

The yen was able to capitalize on its status as a safe-haven refuge yesterday, after a disappointing US unemployment figure led to investor doubts regarding the pace of the US economic recovery. Since yesterday afternoon, the USD/JPY has tumbled more than 40 pips, officially putting to an end what had been an impressive run by the dollar. Currently the pair is trading close to the 82.70 level. The yen has also recorded gains against its other currency rivals, including the euro and UK pound.

Today, yen traders will want to pay attention to the main economic indicators coming out of the US. Publications like the US Core Retail Sales figure and the Prelim UoM Consumer Sentiment are likely to be the deciding factors regarding whether investors turn to higher yielding or safe-haven assets to close out the week. Positive figures out of the US may cause the USD/JPY to turn bullish, but would still likely lead to more gains for the yen against the European currencies.

Crude Oil – Crude Oil Retreats to Below $91 a Barrel

The price of crude oil dropped to below $91 a barrel in overnight trading, as investors began to shy away from higher yielding assets in overnight trading. In addition, the disappointing US unemployment figure yesterday led to skepticism that demand in the US will increase, driving prices down further.

Still, there is hope that the price of oil will bounce back before the end of the week. Another winter storm that has blanketed a sizeable portion of the United States is likely to increase the usage of crude oil by US customers. Furthermore, should any of today’s US or euro-zone economic indicators come in above expectations, investors are likely to return to the higher yielding commodity. It appears entirely possible that prices could rise above $92 a barrel before the day’s end.

Technical News

EUR/USD

Most technical indicators are currently showing this pair in overbought territory, indicating that a downward correction is likely to occur today. The Williams Percent Range on the daily chart and the RSI on the 8-hour chart are both showing the pair in the overbought region. Traders are advised to go short with tight stops today.

GBP/USD

The Stochastic Slow on the 8-hour chat has formed a bearish cross, indicating that downward movement is likely to occur today. This theory is supported by the Relative Strength Index on the 4-hour chart, which is currently in overbought territory. Going short may be the wise choice today.

USD/JPY

Most technical indicators currently show this pair trading in neutral territory. That being said, the Bollinger Bands on the 8-hour chart are currently tightening, indicating that a price shift is likely to occur in the near future. Still, traders will want to pay attention to the hourly charts in order to better determine the direction the pair is taking today.

USD/CHF

Technical indicators are providing mixed signals for this pair. On the one hand, a bullish cross appears to be forming on the 4-hour chart’s Slow Stochastic. On the other hand, the RSI on the daily chart is approaching overbought territory. Taking a wait and see approach is likely the preferred strategy for the pair today.

The Wild Card

EUR/JPY

Technical indicators are providing us with strong signals that this pair is likely to face heavy downward pressure today. A bearish cross on the 8-hour chart’s Slow Stochastic and the Williams Percent Range on the daily chart are just two examples showing a likely downward correction will occur. Forex traders have an excellent opportunity to short their positions at a great entry price, before the correction takes place.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

On January 10, after the EUR/USD pair saw a third failed attempt to fall below the 1.2870 support level, a bullish correction took place, and the pair gained about 580 pips within four trading days. Is it possible to predict such turn of events? Let’s try to answer this using technical analysis.

First, please observe the EUR/USD 4-hour chart below; this will be the main tool we’ll work with in this article.

Now, let’s look for all the signs that could have driven us to suspect that a bullish reversal is about to take place.

• As written on the opening paragraph, the bullish correction only took place after the pair saw several failed attempts to fall below the 1.2870 level. When a currency pair sees such a strong support level – traders must question whether the market actually desires to see the pair traded below this level. It is no coincidence that the pair’s bearish move is blocked over and over again at the exact same level.

• Look at the Slow Stochastic indicator. First, a bullish cross was completed below the 20-line. This often means that a bullish correction might be impending. In addition, no less than three additional bullish crosses took place afterwards, all within a very short period of time. The first bullish cross has signaled that a bullish move might take place, the other bullish crosses that followed have signaled that the market is reluctant to let the pair resume to a down-trend.

• The MACD is probably the easiest to analyze. A bullish cross at the bottom of the section is very likely to predict a bullish reversal. As you can see, the MACD has never switched its indication, and continues to provide bullish signals.

• The Relative Strength Index (RSI) has provided two significant bullish signals. First, it rose above the 30-line, reaching out of what is referred to as the over-sold area. When the RSI crosses the 30-line and continues to point up, it usually mean that the currency pair will follow its lead. The second signal was given once the RSI failed to fall below the 70-line. If the RSI would have fallen below this level, it should have warned us that the bullish move might have reached its end. However, once the RSI reversed its direction, and once again pointed upwards – it signaled that there is still significant bullish pressure on the pair.

• The timing of the bullish correction could have been predicted using the Bollinger Bands. When the Bollinger Bands are tightening, it’s a clear signal that a sharp movement is likely to take place. Considering all the bullish signals written above, traders could have suspected that the Bollinger Bands are signaling that the bullish correction will take place soon.

• Last but not least – sophisticated traders could have noticed that a double top pattern has begun forming on the chart. Once the pair crossed the 1.3020 resistance level, the beginning of the pattern could have been observed by traders, and once the pair crossed the 1.3200 resistance level – traders could have seen it as a signal that the pattern will be completed, meaning that the pair will reach the 1.3450 level.

The US dollar has edged just slightly higher against the Indian rupee in the forex market today as the USD/INR currency pair has traded in a tight range.

The USD/INR currency pair opened the day at the 45.60 exchange rate, registering a high for today at the 45.73 exchange rate while touching a low of 45.47. The pair currently trades near the 45.62 exchange rate at the end of the US session, according to currency data from Oanda.

USD/INR Forex Chart – The Dollar/Rupee currency has not made much movement today after the pair tested and hit resistance at the 200-day simple moving average (red line) and was rejected lower in yesterday’s trading. The USD/INR is currently trading between the 21-day and 50-day moving averages.

About the Author

FxNewsIndia.com – Indian Rupee Forex News

By CountingPips.com

The US dollar has been mostly on the defensive against the other major currencies in forex trading action today. The American currency has been losing ground to the European common currency for a fourth consecutive day as the EUR/USD reached its highest level since January 4th above the 1.3350 exchange rate. The dollar has been also trading lower versus the British pound sterling, Japanese yen, Australian dollar, Swiss franc and the New Zealand dollar while the greenback has gained some ground versus the Canadian dollar, according currency data by Oanda.

The US stock markets had a losing session today with the Dow falling by approximately 23 points, the Nasdaq decreasing 2.04 points and the S&P 500 down by 2.20 points.  Oil has traded lower to $90.97 per barrel while gold futures have lost $11.80 to level at the $1,373.90 per ounce threshold.

Economic news out of Europe today saw the European Central Bank and the Bank of England hold their respective interest rates in place as widely expected by market watchers. The ECB kept their interest rate at 1.00 percent while the BOE held their rate at 0.50 percent despite fleeting rumors the bank may raise rates due to inflation.

Earlier this morning, Australian employment data saw just 2,300 jobs created in the month of December following a robust increase of 54,600 workers in November. The jobs data was worse than expected as market forecasters were looking for approximate gain of 25,000 jobs for the month.

US economic data today showed that initial jobless claims for the week ending January 8th increased by the largest one-week increase in almost 6 months and stood at their highest level since October. Jobless claims rose by 35,000 workers to a total of 445,000 and surpassed economic forecasts expecting 410,000 new claims. The 4-week moving average rose by 5,500 jobless claims while workers seeking continuing unemployment benefits fell by 248,000 workers as of January 1st.

US producer prices rose by 1.1 percent in December following a 0.8 percent rise in November and surpassed forecasts looking for a 0.8 percent climb. On an annual basis, producer prices are 4.0 percent higher than the December 2009 level.

The US trade deficit edged lower in November to a total of $38.3 billion from a total of $38.4 billion in October, according to data from the US Commerce Department.

EUR/USD Chart – The euro continued its ascension today versus the dollar in forex trading as the EUR/USD pair reached a high today of 1.3382 before retreating lower to currently trading at the 1.3350 level.  The euro has increased four straight days against the American currency and has put the 200-day moving average behind it for the time being (red line) and currently trades right at the 50-day moving average (blue line).

To understand what’s a greater threat to the U.S. economy — inflation or deflation — it helps to understand what role the U.S. Federal Reserve plays

By Elliott Wave International

Despite so much focus on the policies of the Fed, its operations remain somewhat of a mystery to most investors — in no smaller measure, due to their complexity.
So, we put together a free resource for our Club EWI members: a 35-page report that explains the Fed, its goals and, very importantly, its limitations in layman’s terms.

Enjoy this excerpt — and for details on how to read the 35-page free report in full now, look below.

Jaguar Inflation
Excerpted from Robert Prechter’s February 2004 Elliott Wave Theorist

I am tired of hearing people insist that the Fed can expand credit all it wants. Sometimes an analogy clarifies a subject, so let’s try one.

It may sound crazy, but suppose the government were to decide that the health of the nation depends upon producing Jaguar automobiles and providing them to as many people as possible. To facilitate that goal, it begins operating Jaguar plants all over the country, subsidizing production with tax money. To everyone’s delight, it offers these luxury cars for sale at 50 percent off the old price. People flock to the showrooms and buy. Later, sales slow down, so the government cuts the price in half again. More people rush in and buy. Sales again slow, so it lowers the price to $900 each. People return to the stores to buy two or three, or half a dozen. Why not? Look how cheap they are! Buyers give Jaguars to their kids and park an extra one on the lawn. Finally, the country is awash in Jaguars. Alas, sales slow again, and the government panics. It must move more Jaguars, or, according to its theory — ironically now made fact — the economy will recede. People are working three days a week just to pay their taxes so the government can keep producing more Jaguars. If Jaguars stop moving, the economy will stop. So the government begins giving Jaguars away. A few more cars move out of the showrooms, but then it ends. Nobody wants any more Jaguars. They don’t care if they’re free. They can’t find a use for them. Production of Jaguars ceases. It takes years to work through the overhanging supply of Jaguars. Tax collections collapse, the factories close, and unemployment soars. The economy is wrecked. People can’t afford to buy gasoline, so many of the Jaguars rust away to worthlessness. The number of Jaguars — at best — returns to the level it was before the program began.

The same thing can happen with credit.

It may sound crazy, but suppose the government were to decide that the health of the nation depends upon producing credit and providing it to as many people as possible. To facilitate that goal, it begins operating credit-production plants all over the country, called Federal Reserve Banks. To everyone’s delight, these banks offer the credit for sale at below market rates. People flock to the banks and buy. Later, sales slow down, so the banks cut the price again. More people rush in and buy. Sales again slow, so they lower the price to one percent. People return to the banks to buy even more credit. Why not? Look how cheap it is! Borrowers use credit to buy houses, boats and an extra Jaguar to park out on the lawn. Finally, the country is awash in credit. Alas, sales slow again, and the banks panic. They must move more credit, or, according to its theory — ironically now made fact — the economy will recede. People are working three days a week just to pay the interest on their debt to the banks so the banks can keep offering more credit. If credit stops moving, the economy will stop. So the banks begin giving credit away, at zero percent interest. A few more loans move through the tellers’ windows, but then it ends. Nobody wants any more credit. They don’t care if it’s free. They can’t find a use for it. Production of credit ceases. It takes years to work through the overhanging supply of credit. Interest payments collapse, banks close, and unemployment soars. The economy is wrecked. People can’t afford to pay interest on their debts, so many bonds deteriorate to worthlessness. The value of credit — at best — returns to the level it was before the program began.

See how it works?

Is the analogy perfect? No. The idea of pushing credit on people is far more dangerous than the idea of pushing Jaguars on them. … I hate to challenge mainstream 20th century macroeconomic theory, but the idea that a growing economy needs easy credit is a false theory. Credit should be supplied by the free market, in which case it will almost always be offered intelligently, primarily to producers, not consumers. Would lower levels of credit availability mean that fewer people would own a house or a car? Quite the opposite. Only the timeline would be different. Initially it would take a few years longer for the same number of people to own houses and cars — actually own them, not rent them from banks. Because banks would not be appropriating so much of everyone’s labor and wealth, the economy would grow much faster. Eventually, the extent of home and car ownership — actual ownership — would eclipse that in an easy-credit society. Moreover, people would keep their homes and cars because banks would not be foreclosing on them. As a bonus, there would be no devastating across-the-board collapse of the banking system, which, as history has repeatedly demonstrated, is inevitable under a central bank’s fiat-credit monopoly.

Jaguars, anyone?

Marathon Oil Corporation (MRO) said today its board has approved plans to spin off its downstream business to create two independent companies. Marathon Petroleum Corporation will be the fifth-largest US refiner with assets concentrated in the Midwest, Gulf Coast and Southeastern US It is expected to trade on the New York Stock Exchange under the ticker symbol MPC.

AT&T (T) said today it will take a $2.7 billion charge in the fourth quarter as it makes changes to its financial reporting. AT&T said it has changed its method of recognizing actuarial gains and losses for pension and other postretirement benefits.