{"id":8558,"date":"2010-04-14T09:12:50","date_gmt":"2010-04-14T13:12:50","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8558"},"modified":"2010-04-14T09:12:50","modified_gmt":"2010-04-14T13:12:50","slug":"forex-market-review-14042010","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/14\/forex-market-review-14042010\/","title":{"rendered":"Forex Market Review 14\/04\/2010"},"content":{"rendered":"

<\/strong><\/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><\/strong><\/p>\n

Past Events:
\n\u2022\u00a0USD Trade Balance out at -39.7B, versus expected -38.5B, prior -37.0B \t\t\t(revised)
\n\u2022\u00a0USD Import Prices m\/m out at 0.7%, versus expected 0.9%, prior -0.2% \t\t\t(revised)
\n\u2022\u00a0GBP Trade Balance out at -6.2B, versus expected -7.3B, prior -8.1B \t\t\t(revised)
\n\u2022\u00a0CAD Trade Balance out at 1.4B, versus expected 0.7B, prior 0.8B
\n\u2022\u00a0CAD NHPI m\/m out at 0.1%, versus expected 0.5%, prior 0.4%
\n\u2022\u00a0AUD Westpac Consumer Sentiments out at -1.0% versus 0.2%<\/p>\n

Upcoming Events:
\n\u2022\u00a0EUR Industrial Production m\/m (1000GMT)
\n\u2022\u00a0USD Core CPI m\/m (1330GMT)
\n\u2022\u00a0USD Core Retail Sales m\/m (1330GMT)
\n\u2022\u00a0USD Retail Sales m\/m (1330GMT)
\n\u2022\u00a0USD CPI m\/m (1330GMT)
\n\u2022\u00a0USD Fed Chairman Bernanke Testifies (1500GMT)
\n\u2022\u00a0USD Business Inventories m\/m (1550GMT)
\n\u2022\u00a0GBP Nationwide Consumer Confidence (tomorrow 0001GMT)
\n\u2022\u00a0AUD MI Inflation expectations (tomorrow 0200GMT)
\nMarket Commentary<\/strong>
\nIt is a very busy day for the United States, as the world\u2019s leading economic \t\t\t nation is set to release two sets of very important figures, the monthly CPI \t\t\tand monthly Retail Sales.<\/p>\n

At half past one this afternoon, the Census Bureau will release Retail Sales \t\t\tand Core Retail Sales for March. Economists predict retail sales will \t\t\tincrease by as much as 1.1%, the biggest increase in four months as better \t\t\t weather and hiring pick up. The market also predicts that core retail sales \t\t\twill increase by 0.5%. Published at the same time as retail sales, the Bureau \t\t\tof Labor Statistics will release the CPI and core CPI for March. Inflation is \t\t\tthe key to raising the interest rate, and boosting the value of a currency; \t\t\thowever, economists predict that CPI will increase by 0.1%, after remaining \t\t\t\"\"<\/a>unchanged last time. Core CPI, which is closely watch by the Fed, is \t\t\tpredicted to increase by 0.1%- exactly like last month.<\/p>\n

Later today, Fed Chairman Ben Bernanke will testify before the Joint Economic \t\t\tCommittee on Capitol Hill. Last night, Bernanke addressed the National \t\t\tBankers Association. While the Fed Chairman did not comment on the current \t\t\t economic conditions or on the Fed\u2019s interest-rate policy in yesterday\u2019s \t\t\tspeech, today he is expected to discuss his economic outlook for the U.S, and \t\t\texplain why he is unwilling to raise the interest rates.
\nYesterday, the bureau of Economic Analysis reported that the U.S trade \t\t\tdeficit widened in February to $39.7 billion further adding to evidence of a \t\t\trebound in the country\u2019s economic growth. The trade gap, which surpassed \t\t\tmarket expectations of $38.5billion, increased 7.4% from a revised $37billion \t\t\tin January. Imports climbed 1.7% as Americans bought more computers and \t\t\ttelevisions abroad, while exports rose to its highest level since October \t\t\t2008. The need to replenish depleted inventories and gains in consumer \t\t\tspending mean purchases of goods and services from overseas will keep growing \t\t\tin coming months. Exports will probably also advance as global growth \t\t\taccelerates, giving companies across the board a boost.<\/p>\n

Also out yesterday, the Bureau of Labor Statistics reported prices of goods \t\t\timported into the U.S rose less than anticipated in March, indicating few \t\t\tsigns of building inflation pressures from abroad. While markets had expected \t\t \ta 0.9% increase, the report showed a 0.7% increase in the import-price index, \t\t\twhich follows a revised 0.2% drop in February.<\/p>\n

Following the release of the data, the U.S. dollar was down against the Yen, \t\t\twith USD\/JPY trading at 92.87, down 0.41% prior to the release. The USD also \t\t\tweakened against the Euro, falling to $1.3613.
\nAcross the border, Canada posted its fifth straight trade surplus in \t\t\t February, the longest series of reported surpluses since November 2008, \t\t\tadding to yet piece of evidence supporting a growing economic recovery. \t\t\tYesterday Canada\u2019s balance of goods beat market expectations as Stats Canada \t\t\treported a monthly trade surplus of C$1.40 billion ($1.39 billion), the \t\t\tlargest surplus since October 2008. Despite a rising Canadian Dollar, exports \t\t\tincreased 2.8% in February to C$34, led by a 7.2% gain in industrial goods \t\t\tand automatic products. Imports rose 0.9% to C$32.6 billion. However, despite \t\t\tthis positive news, the Loonie was little changed at C$1.0033 per U.S. dollar \t\t\tfollowing the report
\nThe recovery of the northern nation\u2019s trade surplus, comes after numerous \t\t\treports this year that have shown steady gains in housing and wholesale sales \t\t\t along with a drop in the unemployment rate. The BOC has reportedly stated \t\t\tthat both output and a key measure of inflation have been higher than \t\t\texpected, leading many economists to believe that the central bank will being \t\t\traising the benchmark interest rate from 0.25% in the third quarter \u2013 well \t\t\tahead of the U.S Fed.<\/p>\n

Released at the same time as the trade balance, the New House Price Index \t\t\t(NHPI) showed a 0.1% increase in the selling price of new homes for February. \t\t\tWhile smaller than the 0.5% increase the market had predicted, this increase \t\t\tin the NHPI is the eighth straight monthly increase in the selling price of \t\t\tnew homes. On a year-to-year basis, new home prices have increased 0.9% \t\t\tbetween February 2009 and February 2010.
\nThe Canadian Dollar was little changed by yesterday\u2019s close \u2013 appreciating \t\t\t0.11% against its American counterpart to end the day at C$1.00140. However, \t\t\tin the Asian trading session this morning, the Loonie crossed the parity \t\t\tline, to hit a session hit of C$0.99846.<\/p>\n

Canada was not the only country rejoicing a better than expected trade \t\t\tbalance. Across the channel the U.K\u2019s goods trade gap with the rest of the \t\t\tworld narrowed sharply in February to its smallest size since June 2006, \t\t\tafter exports rebounded sharply from a weather related weakness in January. \t\t\tThe office for National Statistics reported yesterday, that the Britain\u2019s \t\t \ttrade deficit lessened from January\u2019s 17 month high of \u00a38.1 billion to \t\t\t\u00a36.2billion in February. The decrease in the country\u2019s deficit can be \t\t\tattributed to a massive surge in overseas chemicals sales which pushed the \t\t\tnumber of exports to jump 9.5% from the previous month, the biggest increase \t\t\tsince January 2003.
\nAnalysts welcomed this news which indicates that euro-zone growth is finally \t\t\tpicking up after faltering at the beginning of this year \u2013 as the EU is the \t\t\tone of the U.K\u2019s biggest trading partners, U.K exporters are ardently hoping \t\t\tthat this continues.<\/p>\n

The unexpected news pushed the Pound to $1.5390, appreciating as much as much \t\t\tas 0.2% against the USD. During yesterday\u2019s trading session, the British \t\t\tcurrency reached as high as $1.54475; however, despite crossing the important \t\t\t1.54 mark, the Pound fell to close the day at $1.53858.<\/p>\n

Across the Channel, the Greek crisis seems near to an end. The \u20ac45billion aid \t\t\t package offered to Greece, sent helped eliminate some of the uncertainty \t\t\taround Greece, and helped the debt stricken nation in yesterday\u2019s bond sale. \t\t\tThe 52 week bills were sold at 4.85% while the 26 week bills were sold at \t\t\t4.55%, more than double what Greece paid in January for loans of the same \t\t\tmaturities.\u00a0 While it appears investors are willing to buy Greek debt, \t\t\tthey are doing so only if they are well compensated. Unfortunately for \t\t\tGreece, this may raise concerns about debt servicing, creating doubt about \t\t\twhether the psychological support provided by the EU is enough.\u00a0 \t\t\tInvestors are advised to continue to monitor news regarding the aid package. \t\t\tNew developments about Greece’s debts or aid plan would have an impact over \t\t\tthe euro against its major counterparts.<\/p>\n

After sharp moves on both Friday and Monday, the Euro seems to be \t\t\tstabilizing. While the single European currency depreciated 0.36% yesterday \t\t\tto close $1.35441, the EUR has already erased all of yesterday\u2019s losses, \t\t\tadvancing to a high of $1.36641 in this morning\u2019s Asian session.<\/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 – Later today, Fed Chairman Ben Bernanke will testify before the Joint Economic Committee on Capitol Hill. Last night, Bernanke addressed the National Bankers Association…<\/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-8558","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8558","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=8558"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8558\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}