{"id":8588,"date":"2010-04-15T09:15:29","date_gmt":"2010-04-15T13:15:29","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8588"},"modified":"2010-04-15T09:15:29","modified_gmt":"2010-04-15T13:15:29","slug":"forex-market-review-15042010","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/15\/forex-market-review-15042010\/","title":{"rendered":"Forex Market Review 15\/04\/2010"},"content":{"rendered":"

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

Past Events:
\n\u2022\u00a0EUR Industrial Production m\/m out at 0.9%, versus expected 0.2%, prior \t\t\t1.6% (revised)
\n\u2022\u00a0USD Core Retail Sales m\/m out at 0.6%, versus expected 0.5%, prior \t\t\t1.0% (revised)
\n\u2022\u00a0USD Retail Sales m\/m out at 1.6%, versus expected 1.1%, prior 0.5% \t\t\t (revised)
\n\u2022\u00a0USD Core CPI m\/m out at 0.0%, versus expected 0.1%, prior 0.1% \t\t\t(revised)
\n\u2022\u00a0USD CPI m\/m out at\u00a0 0.1%, versus expected -0.1%, prior 0.0%
\n\u2022\u00a0USD Business Inventories m\/m out at 0.5% versus expected 0.3%, prior \t\t\t0.2% (revised)
\n\u2022\u00a0USD Crude Oil Inventories out at -2.2M, versus expected 1.4M, prior \t\t\t2.0M
\n\u2022\u00a0GBP Nationwide Consumer Confidence out at 72, versus expected 81, \t\t\t prior 81 (revised)
\n\u2022\u00a0AUD Inflation Expectations out at 4.1%, versus prior 3.2%<\/p>\n

Upcoming Events:
\n\u2022\u00a0EUR ECB monthly bulletin (0900GMT)
\n\u2022\u00a0USD Unemployment Claims (1330GMT)
\n\u2022\u00a0USD Empire State Manufacturing Index (1330GMT)
\n\u2022\u00a0USD TIC Long-Term Purchases (1400GMT)
\n\u2022\u00a0USD Capacity Utilization Rate (1415GMT)
\n\u2022\u00a0USD Industrial Production m\/m (1415GMT)
\n\u2022\u00a0USD Philly Manufacturing Index (1500GMT)
\nMarket Commentary<\/strong>
\nThe U.S dollar suffered losses against its major counterparts yesterday as a \t\t\tbigger-than-expected increase in U.S. retail sales last month spurred demand \t\t\tfor riskier assets and the Federal Reserve Chairman repeated that interest \t\t\trates will remain low for an \u201cextended period\u201d.<\/p>\n

U.S retail sales rose 1.6% in March, marking the fifth gain in the past six \t\t\tmonths. Yesterday the U.S Census Bureau reported that sales totaled $363.2 \t\t\tbillion, as demand increased for autos, building materials and new clothes. \t\t\tExcluding autos and trucks, core retail sales for March rose slightly more \t\t\tthan expected- increasing 0.6% to $300.5billion. At the same time as the \t\t\t release of the retail sales report, the U.S Bureau of Labor Statistics \t \t\treleased the Consumer Price Index \"\"<\/a>(CPI) for March. While CPI was in line with \t\t\tmarket expectations of a 0.1%, the Core rate (excluding food and fuel) held \t\t\tsteady after rising 0.1% in February- reflecting cheaper rents and clothing. \t\t\tFollowing the release of these reports, the USD increased by its largest \t\t\tamount versus the Japanese Yen in more than a week. The greenback appreciated \t\t\tas much as 0.6% to 93.72, resulting in the pairs biggest intra day gain since \t\t\tApril 2nd. Moreover, following the release of these reports, the EUR\/USD \t\t\ttumbled below the 1.3600 mark, hitting a fresh intra-day low of 1.3595. \t\t\t However, shortly after, the USD reversed all of these prior gains, declining \t\t\t0.3% to reach $1.3658 per euro.<\/p>\n

The Greenback continued to fall throughout the day, nearing its weakest level \t\t\tin almost a month versus the Euro as Federal Reserve Chairman Ben S. Bernanke \t\t\ttestified to the Joint Economic Committee that policy makers have \u201cstated \t\t\tclearly\u201d that interest rates will be very low for an \u201cextended period,\u201d \t\t\tcontingent on low inflation and other economic trends. Yesterday Bernanke \t\t\tsaid the U.S. expansion will remain moderate as the economy contends with \t\t\tweak construction spending and high unemployment. \u201cOn balance, the incoming \t\t\tdata suggest that growth in private final demand will be sufficient to \t\t\tpromote a moderate economic recovery in coming quarters,\u201d Bernanke said when \t\t\the testified in front of on Capitol Hill. He went on to say that \u201csignificant \t\t\trestraints on the pace of the recovery remain, including weakness in both \t\t\tresidential and nonresidential construction and the poor fiscal condition of \t\t\tmany state and local governments.\u201d Currently U.S. central bankers are \t\t\tdebating how and when to pull back monetary stimulus as the economy recovers \t\t\tfrom the worst slump since the Great Depression. The Fed chairman\u2019s remarks \t\t\tdidn\u2019t include a discussion of the path of interest rates, and his outlook doesn\u2019t \t\t\t suggest officials are ready to alter their guidance that rates will remain \t\t\tlow \u201cfor an extended period\u201d. Policy makers have held the benchmark interest \t\t\trate at zero to 0.25% since December 2008. Fed officials will next meet on \t\t\tApril 27th and 28th.\u00a0 The Dollar Index traded near a four-week low on \t\t\tprospects that Fed officials will reiterate they expect to keep interest \t\t\trates near zero. The index, which tracks the dollar against the currencies of \t\t\tsix major U.S. trading partners, bought 80.250 from 80.190 yesterday when it \t\t\t declined to 80.031, the lowest level since March 18.<\/p>\n

Yesterday evening the U.S Federal Reserve released the Beige Book \u2013 a \t\t\t compilation of anecdotal evidence on economic conditions from each of the \t\t\ttwelve Fed districts regarding local and economic conditions that covers \t\t\tapproximately the six week period from the end of February through early \t\t\tApril. According to the Beige Book eleven of the twelve Fed districts \t\t\texperienced growth since the last report. The St. Louis district was the lone \t\t\texception, as it reported “softened” economic conditions. The U.S \t\t\tDollar remained steady after the release of the Federal Reserve Beige Book \t\t\twith the EUR\/USD holding steady above 1.3650; the GBP\/USD traded above \t\t\t1.5460. USD\/JPY managed to rise to 93.20 from 93.00.<\/p>\n

The USD closed \t\t\t the day down 0.30% against the Euro at $1.36541, down 0.54% against the GBP \t\t\tat $1.54695 and down 0.14% against the Yen at 93.181Y\/USD.<\/p>\n

\"\"
\nEarly this afternoon, the Department of Labor will release the number \t\t\tof unemployment claims for the week of April 5th. While last week saw \t\t\tdisappointing rise to 460K, breaking the previous few week\u2019s trend of steady \t\t\t improvement, this week the market predicts that the number of jobless claims \t\t\twill fall back down to 439K. Also out this afternoon, the U.S Department of \t\t\tTreasury will release the February\u2019s TIC Long-Term Purchases \u2013 a report that \t\t\trepresents the difference in value between foreign long-term securities \t\t\tpurchased by US citizens and US long-term securities purchased by foreigners \t\t\tduring the reported period. After leaping $126.8billion three months ago, \t\t\tthis figure has been steadily increasing \u2013 jumping $19.1billion last month. \t\t\tThis time around, the market predicts that the TIC Long-Term Purchases will \t \t\tincrease by $39.2billion. The U.S\u2019s numerous reports today will end with the \t\t\tPhilly Fed Manufacturing Index (1500GMT). This important gauge of production \t\t\thas been on the rise in the past three months, ticking up to 18.9 points last \t\t\ttime. It\u2019s now predicted to take the next step and rise to 20.3 points (a \t\t\tlevel above 0.0 indicates improving conditions, below indicates worsening \t\t\tconditions).<\/p>\n

Across the Atlantic, Greek government bonds dropped as some of the world\u2019s \t\t\tbiggest investors said the European Union\u2019s \u20ac45 billion bailout plan for the \t\t\tdebt stricken nation failed to make the securities attractive. The declines \t\t\tpushed the yield on the two-year note up for a second day after Pacific \t\t\tInvestment Management Co., which runs the world\u2019s biggest bond fund, said \t\t\tit\u2019s too early to buy Greek debt and BlackRock Inc. said EU states planning \t\t\tto participate in a bailout must show they can withstand a \u201cbacklash\u201d from \t\t\ttheir citizens. Moreover, Portuguese bonds declined after the EU said the \t\t\t government needs to do more to tackle its budget deficit. \u201cThe aid package is \t\t\ta safety net, but it doesn\u2019t change the fiscal situation in Greece,\u201d said \t\t\tLuca Jellinek, a senior interest-rate strategist at ANZ Banking Group Ltd. in \t\t\tLondon. \u201cYields are not going to fall straight away. They need to show they \t\t\tare successfully cutting the deficit.\u201d
\nYesterday, the Eurostat released Europe\u2019s Industrial Production for February. \t\t\tWhile markets had expected a slight increase of 0.2%, the report showed a \t\t\tsharp increase of 0.9% in industrial production between February and March \u2013 \t\t\tindicating that the EU\u2019s recovery in the manufacturing sector remains firmly \t\t\ton track.<\/p>\n

Later today, the ECB will publish its monthly bulletin. Released one week \t\t\tafter the central bank\u2019s rate interest decision, this report exposes the \t\t\tfigures that the ECB used to make its rate decision \u2013 generally the report \t\t\tincludes hints about future policies.<\/p>\n

In regards to \t\t\tthe commodity based currencies, Canada\u2019s dollar appreciated to the strongest \t\t\tlevel in 22 months versus its U.S. counterpart as a rise in global stocks and \t\t\tcommodities burnished the appeal of currencies tied to growth. For the first \t\t\ttime this week, the Loonie dipped below the parity line with its American \t\t\t counterpart, to hit C$0.99590, its strongest value since June 2nd of last \t\t\tyear.<\/p>\n

\"\"
\nIn Australia, consumer expectations of inflation rose in April with a drop in \t\t\tthe proportion of people predicting that price increases would fall within \t \t\tthe central bank’s target band, a survey says. The Melbourne Institute (MI) \t\t\tsurvey of consumer inflationary expectations said the median expectation for \t\t\tinflation rose 0.9% point to 4.1% in April. Australia’s rate of headline \t\t\tinflation was an annual 2.1% in the year to December 2009, according to \t\t\tAustralian Bureau of Statistics figures. The proportion of consumers \t\t\texpecting inflation to be within the Reserve Bank of Australia’s (RBA) two to \t\t\tthree per cent target band fell in April for the second consecutive month, \t\t\tdown to 15.9% from 18.6% in March. “This month’s report indicates \t\t\tinflation pressure is mounting after a relatively stable period,” \t\t\tMelbourne Institute research fellow Michael Chua said in a statement. \t\t\t“For the first time since February 2009, the proportion of consumers \t\t\texpecting inflation to be within the RBA’s 2-3 per cent band, is below its \t\t\t 12-months moving average.”The jump in the median inflation rate is significant \t\t\tand suggests that consumers expect demand to grow at a faster rate than \t\t\tchanges in production.” The Aussie rose 0.85% against the U.S Dollar \t\t\tyesterday, closing at $0.93567.<\/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 – The U.S dollar suffered losses against its major counterparts yesterday as a bigger-than-expected increase in U.S. retail sales last month spurred demand for riskier assets and the Federal Reserve Chairman…<\/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-8588","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8588","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=8588"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8588\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}