{"id":8648,"date":"2010-04-19T09:15:49","date_gmt":"2010-04-19T13:15:49","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8648"},"modified":"2010-04-19T09:15:49","modified_gmt":"2010-04-19T13:15:49","slug":"forex-market-review-19042010","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/19\/forex-market-review-19042010\/","title":{"rendered":"Forex Market Review 19\/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><\/span><\/p>\n

Past Events
\n\u2022\u00a0USD Housing Starts, out at 0.63M versus expected 0.60M, prior 0.62M \t \t\t(revised)
\n\u2022\u00a0USD Building Permits, out at 0.69M versus 0.63M, prior 0.64M (revised)
\n\u2022\u00a0USD Prelim UoM Consumer Sentiment, out at 69.5 versus 74.7, prior 73.6 \t\t\t(revised)
\n\u2022\u00a0EUR CPI, out at 1.4% versus expected 1.5%, prior 1.5% (revised)
\n\u2022\u00a0EUR Core CPI, out at 1.0% versus expected 0.9%, prior 0.8%
\n\u2022\u00a0CAD Manufacturing Sales, out at 0.1% versus expected 1.0%, prior 1.8% \t\t\t(revised)<\/p>\n

Upcoming Events
\n\u2022\u00a0USD Fed Chairman Ben Bernanke to address Financial Literacy and \t\t\tEducation Summit in Chicago (1300 GMT)
\n\u2022\u00a0NZD CPI q\/q (2245 GMT)<\/p>\n

Market \t\t\t Commentary<\/strong>
\nUS Housing starts climbed to an annual rate of 626,000 last month, up 1.6% \t\t\tfrom February\u2019s 616,000 pace, according to Commerce Department figures \t\t\treleased Friday in Washington. Building permits, an indicator of future \t\t\tconstruction, climbed to the highest level since October 2008. An improvement \t\t\tin the housing market, after a crash that contributed \"\"<\/a>to the deepest \t\t\trecession since World War II ended signals a broadening of the economic \t\t\trecovery.<\/p>\n

New-home construction rose 20% in March from the same month last year. \t \t\tPermits were up 34% in the 12 months ended in March.\u00a0 Construction of \t\t\tsingle-family houses decreased 0.9% to a 531,000 rate in March, while permits \t\t\tincreased 5.6%. Work on multifamily homes, such as townhouses and apartment \t\t\tbuildings, climbed 19% to an annual rate of 95,000. The increase in starts was \t\t\tconcentrated in the South. New construction fell in the rest of the country.
\nA separate report showed consumer confidence unexpectedly slumped in April, \t\t\tindicating Americans are worried the expansion will be too slow to bolster \t\t\tthe labor market. The Reuters\/University of Michigan preliminary index of \t\t \tconsumer sentiment unexpectedly dropped to 69.5 this month from a final \t\t\treading of 73.6 in March. The gauge was projected to rise to 75.<\/p>\n

A measure of current conditions, which reflects Americans\u2019 perceptions of their \t\t\tfinancial situation and whether it\u2019s a good time to buy big-ticket items like \t\t\tcars, dropped to the lowest level this year. The index of expectations six \t\t\tmonths from now, which more closely projects the direction of consumer \t\t\tspending, posted its weakest reading since March 2009.<\/p>\n

Stocks fell on Friday, halting a six-day rally, after the Securities and \t\t\tExchange Commission charged Goldman Sachs Group Inc. with fraud. The Standard \t\t\t& Poor\u2019s 500 Index declined 1.6% to close at 1,192.13. As a result Friday \t\t\tsaw the US Dollar climb against the Euro for the second day, the Dollar \t\t\t gained 0.50% to close at EUR 1.35011. The US Dollar also climbed against the \t\t\tPound for the second day in a row, appreciating 0.65% to close at GBP \t\t\t1.53607.<\/p>\n

\"\"
\nGold was steady on Friday, as safe-haven buying related to worries about \t\t\tGreece’s debt crisis helped the metal defy pressure from a rising U.S. \t\t\tDollar.<\/p>\n

In the Euro zone annual inflation was revised downwards in March, with energy \t\t\tcosts continuing to fuel year-over-year price growth, while the core rate \t\t\tinched up after an upward revision in February’s figure, Eurostat reported on \t\t\tFriday.
\nOn the year, the consumer price index rose 1.4%, revised down from the \t\t\tinitial 1.5% figure. In monthly terms, inflation accelerated to 0.9% \t\t\tfollowing February’s 0.3% increase. Excluding energy, food, alcohol and \t\t\ttobacco costs consumer prices increased 1.0% on the year, up from February’s \t\t \trecord low of 0.9%, which was revised upward from 0.8%. The core inflation \t\t\trate followed by the European Central Bank, which excludes both energy and \t\t\tunprocessed food costs, was up 0.9% on the year, from the record low of 0.8% \t\t\tin February.<\/p>\n

Transport costs registered the strongest jump among the larger components, \t\t\tgaining 1.5% due to a 4.4% rise in fuel prices, while housing maintenance \t\t\t costs rose 0.5% over the same period. Boosted by a 20.2% year on year rise in \t\t\tfuel prices, transport costs also registered a strong annual gain, rising \t\t\t6.1% compared to March 2009. Conversely, food prices were 0.6% lower on the \t\t\tyear.<\/p>\n

For 2010 as a whole, the European Commission confirmed its initial \t\t\tforecast of 1.1% inflation for the Euro zone, while the latest ECB’s staff \t\t\tprojections suggest inflation ranging between 0.8% and 1.6% this year.
\n“The outcome of the monetary analysis confirms the assessment of low \t\t\tinflationary pressures over the medium term,” ECB President Jean-Claude \t\t\tTrichet said earlier this month.\u00a0 However, ECB Executive Board member \t\t\tJuergen Stark, speaking at an event in Washington D.C., stressed the need to \t\t \tkeep an eye on the price situation, both within the Euro zone and beyond.<\/p>\n

“We need to monitor price developments in the more dynamic regions of \t\t\tthe world very closely, as well as the evolution of commodity prices and \t\t\ttheir potential impact on global inflation,” Stark said. “Notably, \t\t\ta multi-speed recovery of the world economy, with some regions growing fast, \t\t\twhile the recovery in others remains rather slow, has the potential to exert \t\t\tupward pressure on prices,” he warned.<\/p>\n

The Euro fell against Sterling on Friday after posting gains the previous two \t\t\tdays. The single currency fell 0.14% to close trading before the weekend at \t\t\tGBP 0.87872.<\/p>\n

In Canada manufacturing sales edged up by a weaker than expected 0.1% in \t\t\t February from January as weakness in the energy and auto sectors partially \t\t\toffset gains across a dozen industries, Statistics Canada said on Friday. \t\t\tStatscan also revised down its January sales growth figure to 1.8% from the \t\t\t2.4% initially published.
\nFollowing the report the Canadian Dollar fell back to close down 1.06% \t\t\tagainst its American counterpart at CAD 1.01271.<\/p>\n

The disappointing numbers suggest the economy grew at a slower pace in \t\t\tFebruary than in the preceding five months. Still, analysts expect \t\t\tfirst-quarter growth to come in just as strong as the fourth quarter, at \t\t\tabout 5% annualized. That will keep pressure on the Bank of Canada to raise \t\t\t interest rates either in June or July.<\/p>\n

“We expect that, with evidence mounting that the economic recovery in \t\t\tCanada is on increasingly solid footing, the Bank of Canada will look to \t\t\tbegin tightening monetary policy,” Nathan Janzen, economist at Royal \t\t\tBank of Canada, wrote in a note to clients.<\/p>\n

“However, economic slack built up during the recent recession is \t\t\texpected to keep inflation subdued in the near term, allowing the pace of \t\t\ttightening to be undertaken at a gradual rate,” he said.<\/p>\n

The majority of primary dealers in Canada expect the first rate rise in July, \t\t\tbut markets have also priced in a hike as early as June 1st.<\/p>\n

February sales were strong in plastic and rubber products as well as in \t\t\tchemical products, partly the result of pharmaceutical and medical aid to \t\t\t Haiti following the recent earthquake. Much of the weakness came from a 3.9% \t\t\tdrop in sales by the petroleum and coal products industry due to lower oil \t\t\tprices and slowdowns caused by fires at two refineries. Transportation \t\t\tequipment sales fell 1.8%, the second straight monthly decline as a result of \t\t\ttemporary auto factory shutdowns and lower parts and aerospace sales.<\/p>\n

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

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By Finexo – Stocks fell on Friday, halting a six-day rally, after the Securities and Exchange Commission charged Goldman Sachs Group Inc. with fraud. The Standard & Poor\u2019s 500 Index declined 1.6% to close at 1,192.13…<\/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-8648","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8648","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=8648"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/8648\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=8648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=8648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=8648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}