{"id":8518,"date":"2010-04-13T08:58:55","date_gmt":"2010-04-13T12:58:55","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8518"},"modified":"2010-04-13T08:58:55","modified_gmt":"2010-04-13T12:58:55","slug":"forex-market-review-13042010","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/13\/forex-market-review-13042010\/","title":{"rendered":"Forex Market Review 13\/04\/2010"},"content":{"rendered":"

<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong>Forex Market Ideas by Finexo.com<\/strong><\/a><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/p>\n

Past events:
\n\u2022\u00a0CAD Housing Starts out at 197K, versus expected 201K, prior 200K
\n\u2022\u00a0USD Federal Budget Balance out at -65.4B, versus expected -64.0B, \t\t\tprior -220.9B
\n\u2022\u00a0GBP BRC Retail Sales Monitor y\/y out at 4.4% versus expected 2.2%
\n\u2022\u00a0GBP RICS Housing Price Balance out at -1.3%, versus expected -1.1%, \t\t\tprior -1.6%
\n\u2022\u00a0AUD NAB Business Confidence out at 16, versus prior 19<\/p>\n

Upcoming Events:
\n\u2022\u00a0GBP Trade Balance (0930GMT)
\n\u2022\u00a0USD Trade Balance (1330GMT)
\n\u2022\u00a0USD Import Price m\/m (1330GMT)
\n\u2022\u00a0CAD Trade Balance (1330GMT)
\n\u2022\u00a0CAD NHPI m\/m (1330GMT)
\n\u2022\u00a0USD Fed Chairman Bernanke Speaks ( tomorrow 0000GMT)<\/p>\n

Market \t\t\t Commentary:
\nThe Euro strengthened yesterday to its highest level in more than three weeks \t\t\tversus the U.S Dollar after news broke that Greece would be receiving an \t\t\tinternational rescue package worth as much as \u20ac45 billion ($61 billion) to \t\t\thelp it avoid a default. Following the announcement of the of the \u201crescue \t\t\tplan\u201d the single currency rose to $1.36906, appreciating as much as 1.4%, its \t\t\tbiggest gain since last September. The Euro\u2019s gain, which was its third \t\t\t increase in the past three days, sent the Dollar Index tumbling 1.3% to its \t\t\tlowest level since March 18th.<\/p>\n

The 16-nation Euro-Zone finance ministers reported that they would offer \t\t\tGreece \u20ac30 billion in three-year loans in 2010 at about 5% interest. An \t\t\tadditional \u20ac15 billion would come from the International Monetary Fund, \t\t\tresulting in what could possibly be the largest multilateral financial rescue \t\t\t ever attempted. The Greek official said the government \"\"<\/a>would decide within a \t\t\tfew days whether to ask for the aid, depending on whether market interest \t\t\trates subside. For the time being, Athens will try and refinance its public \t\t\tdebt on the bond market. This week, the Greek government will hold another \t\t\tbond auction that will surely be a test if the Euro Zone\u2019s recent bailout \t\t\tplan has restored faith in the Greek bonds.<\/p>\n

By yesterday\u2019 close the single European currency has retreated from its near \t\t\tthree week high against the USD as Greece prepares to sell \u20ac1.2Billion in 26 \t\t\tand 52 week bills. The Euro closed at $1.35924, down 0.71% from the day\u2019s \t\t\thigh.
\nThe Japanese Yen rose, ending three days of losses versus the EUR, on \t\t\t speculation demand for Greece\u2019s short-term debt will be weak at an auction \t\t\ttoday. Japan\u2019s currency appreciated versus all 16 major counterparts after \t\t\tAsian stocks dropped, weakening demand for riskier investments. After closing \t\t\tyesterday at 126.119, the EUR\/JPY continued to fall throughout this morning\u2019s \t\t\ttrading session, touching on a low of 125.690. Similarly, the USD\/JPY fell \t\t\tduring this morning\u2019s Asian session- tumbling as much as 0.64% from \t\t\tyesterday\u2019s closing price of 93.161, to hit a session low of 92.563.<\/p>\n

Yesterday, the U.S posted a budget deficit for a record 18th straight month \t\t\tin March, reflecting gains in government spending to bolster the economy. The \t\t\texcess of spending over revenue declined to $65.4 billion last month, \t\t\tcompared with the $220.9 billion reported last month, according to Treasury \t\t\tDepartment figures released yesterday in Washington. A deficit that\u2019s \t\t\tforecast to reach a record $1.6 trillion this fiscal year illustrates the \t\t\tchallenges facing President Barack Obama and Congress as they struggle to \t\t\tstimulate the recovery while keeping the budget gap manageable. Deterioration \t\t\tin the government\u2019s balance sheet in coming years raises the risk of higher \t\t\t interest rates. Tonight, U.S Fed Chairman Ben Bernanke will speak. He will \t\t\tcontinue to speak tomorrow at the Joint Economic Committee where he will lay \t\t\tout his economic outlook.<\/p>\n

Later today, there will be a lot of action on both sides of the US Canadian \t\t\tborder, as both countries are set to simultaneously announce their trade \t\t\t balances (1330GMT). Last month, Canada reported a 0.8B surplus; however, the \t\t\tCanadian positive economic data was outshone by an unexpected decrease in the \t\t\tUS trade deficit \u2013 which narrowed to 37.3billion. This time around, the US \t\t\texpects its trade deficit to widen to 38.4billion, while north of the border, \t\t\tCanada predicts that their trade surplus will remain consistent at \t\t\t0.8billion. This double event usually causes a lot of volatility in the \t\t\tUSD\/CAD pair.<\/p>\n

Also out at 1330GMT, Stats Canada will announce the New Housing Price Index \t\t\t(NHPI) for February. Prices of new homes in Canada have steadily been rising \t\t\tfor the past seven months. January\u2019s rise of 0.4% is expected to be repeated \t\t\twith a 0.5% increase in February. This report follows yesterday\u2019s lower than \t\t\texpected Number of Housing Starts. Canadian housing starts dipped 1.5% in \t\t\tMarch to a seasonally adjusted annualized rate of 197,300 units from an \t\t\tupwardly revised 200,400 units in February, Canada Mortgage and Housing Corp. \t\t\treported yesterday. The number of starts in March was below average \t\t\t expectations of analysts who had called for 200,000 starts. Following the \t\t\trelease of this worse than expected news, the CAD neared a 2-day low against \t\t\tthe USD. The USD\/CAD rose 0.53% to reach 1.0083 during European afternoon \t\t\ttrade, close to the 2-day high of 1.0088 it hit earlier.<\/p>\n

However, the Canadian Dollar recovered, and resumed to trade near parity with \t\t\tits U.S counterpart after the Bank of Canada\u2019s quarterly business outlook, \t\t\tprovide further evidence that the country\u2019s recovery from the recession is \t\t\tfirmly taking hold. The Loonie traded at C$1.00095 per U.S Dollar after the \t\t\tsurvey showed that businesses are planning their fastest price hike in more \t\t\tthan a decade. A price hike will lead to increased inflation expectations, \t\t\t which is among the key details that the Bank of Canada looks at when setting \t\t\tthe benchmark interest rate. Last week, the Canadian dollar achieved parity \t\t\tversus its U.S counterpart for the first time in almost two years on \t\t\tspeculation that the nation\u2019s central bank will opt for a rate hike before the \t\t\tU.S Fed. The USD\/CAD closed at 1.00266.<\/p>\n

Over the in the U.K, a report by the British Retail Consortium (BRC) reported \t\t\tthat that total retail sales hit its highest level in almost four years in \t\t\tMarch. Total year-on-year sales growth spiked to 6.6% in March, up from 4.5% \t\t\tin February and the highest level since April 2006. Like-for-like sales rose \t\t\t4.4% in March, up from 2.2% the previous month. BRC said base effects had \t\t\t boosted year-on-year growth rates. Like-for-like sales fell 1.2% on the year \t\t\tlast March. The timing of Easter was one factor boosting growth, as Good \t\t\tFriday and Easter Saturday fell in the March trading period in 2010 but in \t\t\tApril 2009. Also out last night, a U.K house-price gauge for March reported \t\t\tthe fewest increases in values for eight months as more supply eroded \t\t\tmomentum in the property recovery market. The RICS House Price Balance \t\t\treported a 9%, versus a predicted 18% increase. The report also showed that \t\t\tmore respondents reported that prices are now falling in certain areas rather \t\t\tthan rising.<\/p>\n

The GBP which closed yesterday at $1.53710, hit a daily low of $1.53349 this \t\t\tmorning. Later today (930GMT), the UK will report its Trade Balance for \t\t\tFebruary- the bureau of National Statistics is expecting a deficit of 7.3B, \t\t\tversus January\u2019s 8.0B.<\/p>\n

Forex Market Ideas & Analysis by Finexo.com<\/strong><\/a><\/p>\n

Disclaimer: Trading the foreign exchange (Forex) carries a high level of risk, and may not be suitable for all investors. All information and opinions contained on this website are to be used for general informational purposes only and do not consitute investment advice.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Finexo – Over the in the U.K, a report by the British Retail Consortium (BRC) reported that that total retail sales hit its highest level in almost four years in March. Total year-on-year sales growth…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8518","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=8518"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8518\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}