{"id":8619,"date":"2010-04-16T08:34:57","date_gmt":"2010-04-16T12:34:57","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8619"},"modified":"2010-04-16T08:34:57","modified_gmt":"2010-04-16T12:34:57","slug":"forex-market-review-16042010","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/16\/forex-market-review-16042010\/","title":{"rendered":"Forex Market Review 16\/04\/2010"},"content":{"rendered":"

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

Past Events:
\n\u2022\u00a0USD Unemployment Claims out at 484K, versus expected 439K, prior 460K
\n\u2022\u00a0USD TIC Long-Term Purchases 47.1B, versus expected 34.2B, prior 15.0B (revised)
\n\u2022\u00a0USD\u00a0 Empire State Manufacturing Index out at 31.9 versus expected24.0, prior 22.9
\n\u2022\u00a0USD\u00a0 Philly Fed Manufacturing Index out at 20.2 versus expected 19.8, prior 18.9
\n\u2022\u00a0USD\u00a0 Capacity Utilization Rate out at 73.2%, versus expected 73.3%, prior 73.0% (revised)
\n\u2022\u00a0USD\u00a0 Industrial Production m\/m out at 0.1%, versus expected 0.6%, prior 0.3% (revised)<\/p>\n

Upcoming Events:
\n\u2022\u00a0CHF PPI m\/m (0815GMT)
\n\u2022\u00a0EUR CPI y\/y (1000GMT)
\n\u2022\u00a0EUR Core CPI y\/y (1000GMT)
\n\u2022\u00a0CAD Manufacturing Sales m\/m (1330GMT)
\n\u2022\u00a0USD Building Permits (1330GMT)
\n\u2022\u00a0USD Housing Starts (1330GMT)
\n\u2022\u00a0USD Prelim UoM Consumer Sentiment (1455GMT)<\/p>\n

Market Commentary<\/strong>
\nThe Euro snapped five days of gains against the greenback as concerns begin to grow that the European Union\u2019s latest rescue plan for Greece- a \u20ac45billion bailout package \u2013 won\u2019t be enough to restore the single currencies value. The European Union\u2019s single currency fell sharply against all but 2 of its 16 most traded currency counterparts, as the extra yield investors demand to hold Greek 10-year bonds instead of benchmark German bunds rose above 400 basis points \"\"<\/a>for the first time since Greece\u2019s bailout package was announced last Sunday. The EUR\/USD hit a fresh weekly low of $1.3515.<\/p>\n

The yield on Greece\u2019s 10-year notes advanced 0.02 percentage point to 7.09% on concern Greece\u2019s won\u2019t get the fund it needs to fund a deficit that is 12.9% of gross domestic product, the biggest in the Euro\u2019s history. The Parliaments of Germany, France and Ireland must first vote on whether to contribute their share of the EU loans.<\/p>\n

This morning (1000GMT), Eurostate will release the annual Consumer Price Index for the entire continent. The market expects that the annual adjusted inflation will continue to increase at 1.5%, and that core CPI is expected to be revised from 0.8% to 0.9% – however, only a substantially rise in this figure will push the ECB to contemplate a rate hike.
\nThe British Pound rose 0.6% to 87.77 pence against the euro after a survey showed the Conservative Party has extended its lead over the reigning Labour Party, easing concerns that next month\u2019s election won\u2019t produce a clear winner. The Sterling appreciated for a second day in a row against the single European currency after Britain\u2019s Daily Telegraph published a poll showing that the Conservative party was in the lead with 43% support rate, compared to the Labour party\u2019s 31% support. This poll signals that the U.K turbulent political situation is beginning to stabilize, which, according to analysts, is particular good news for the country\u2019s currency which has recently suffered on concerns that U.K will not have a majority government following the next election. While early in the day during the European trading session, the pound dipped as low as $1.53840. However, the British currency managed recover during the U.S trading session, to reach a high of $1.5509. The GBP\/USD closed the day at $1.55002.<\/p>\n

Across the Atlantic, the number of Americans filing claims for jobless benefits unexpectedly increased last week, indicating the improvement in the labor market will take time to unfold. Labor Department figures showed yesterday that Initial jobless applications rose by 24,000 in the week ended April 10; however a Labor Department spokesman said the rise in claims was due more to administrative factors reflecting volatility around Easter than economic reasons. None the less, the number of jobless names passed the market predicted vale of 439K, to reach 484K \u2013 the highest level since February 20th. Reluctances among some companies to hire is among one of the biggest challenges facing the economy as it recovers from what is considered the worst recession since the Great Depression. Employment gains are needed to help stimulate consumer spending, which accounts for about 70% of the economy. This disappointing figure comes one day after Fed Chairman Ben S. Bernanke told congress that high unemployment and weak construction are among the \u201csignificant restraints\u201d on the pace of growth. However despite a worse than expected result, the U.S Dollar was up against the euro following the release of the joblessness claims, with the EUR\/USD shedding 0.82% to reach 1.3441.
\nManufacturing production in the U.S. accelerated in March as factories spearheaded the recovery from the recession. Output at factories rose 0.9% after a 0.2% gain in February that was revised from a previously estimated decline, Federal Reserve figures showed yesterday. Warmer weather caused utility use to drop by the most in four years, limiting the overall gain in industrial production to 0.1%, less than anticipated. Manufacturing activity in the New York region improved at its fastest pace since May 2004 this April, as the Empire State Manufacturing Index soared to 31.9 from 22.9 in March.\u00a0 According to the New York Federal Reserve Bank, new orders and shipment indexes increased and the inventory index rose to a record high. Moreover, the index for the number of employees rose to its highest level in more than two years and the price index increased to its highest level since late 2008. The index is close to its recent high of 33.4 hit in October. Business conditions improved for the eighth straight month at manufacturing firms in the Philadelphia region, according to the monthly survey issued Thursday by the Federal Reserve Bank of Philadelphia. The Philly Fed index rose to 20.2 in April from 18.9 in March, slightly better than expectations of an increase to 20.0. Any reading over zero in the diffusion index indicates growth, with higher readings indicating more firms reporting better conditions<\/p>\n

The U.S Dollar moved little against the majority of its currency counterparts following the mixed results a worse than expected jobless claims but better than expected manufacturing results. The EUR\/USD closed the day at 1.35757, down 0.58% from the day’s open; while the USD\/JPY closed at 93.318, up 0.31% from the day’s opening price.<\/p>\n

\"\"
\nThis afternoon, the U.S Census Bureau will release the number of Building Permits issued during March. While last month the number of building permits issued increased to 0.64M, this time around, the market predicts that they will slip back down to 0.63M. The complementary figure, Housing Starts, is expected to increase slightly to 0.60M, from last month 0.58M. Also out this afternoon, the University of Michigan\u2019s Prelim Consumer Sentiment. After a few stable months, this survey of about 500 consumers is expected to increase to 74.7 points, the highest level since January 2008.<\/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 Euro snapped five days of gains against the greenback as concerns begin to grow that the European Union\u2019s latest rescue plan for Greece- a \u20ac45billion bailout package \u2013 won\u2019t be enough to restore the single currencies value…<\/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-8619","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8619","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=8619"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8619\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}