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Wednesday, 2 May 2012
The
Canadian dollar climbed today after a report showed that
the US manufacturing sectors was expanding last month with faster pace than was anticipated by analysts, bolstering positive market sentiment.
Bank of Canada Governor
Mark Carney suggested in today’s speech that higher interest rates “may become appropriate”.
Canadian Finance Minister Jim Flaherty said that fundamentals are supportive for Canada’s currency. Manufacturers reacted positively for the appreciation of the currency and Canadian policy makers have no reason to take measures for weakening the loonie.
USD/CAD was down from 0.9874 to 0.9855 and EUR/CAD slid from 1.3068 to 1.3046 as of 22:02
GMT today. CAD/JPY climbed from 80.79 to 81.23.
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US dollar is moving higher today, gaining now, even as it lost some ground earlier. It’s true that US dollar has been somewhat flat today against other majors, but it was falling against the euro at one point. Now, though, the greenback has the upper hand again as uncertainty takes center stage and
Forex traders begin looking for a little safety.
US dollar index is higher right now, off the day’s low at 78.603. The dollar index is gaining as
the US dollar heads higher against the euro and pound, as well as the yen. Greenback has slipped somewhat against the loonie, but the US dollar is holding its ground against the Aussie — thanks to an unexpectedly deep rate cut from the RBA.
Helping the greenback find stability is the fact that the latest
ISM data shows that manufacturing is expanding. The index was up to 54.8% in April from the March 53.4%. The news provides some evidence that the US economy remains in recovery, albeit a somewhat sluggish recovery. This is being contrasted with the political upheaval expected in Europe over the next month due to elections, as well as concerns about the rest of the
global economy.
At 14:32
GMT the US dollar index is at 78.943, up from the open at 78.782. EUR/USD has slipped to 1.3216 from the open at 1.3239. GBP/USD is down to 1.6188 from the open at 1.6234. USD/JPY is up to 80.2680 from the open at 79.8200. USD/CAD is a little lower at 0.9854 from the open at 0.9871.
Category:
Canada
,
Dollar
,
EUR/USD
,
GBP/USD
,
Great Britain
,
ISM
,
Japan
,
Pound
,
United States
,
USD/CAD
,
USD/JPY
,
YEn
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The market remains locked in a multi-day consolidation and should continue to chop between the 9,600-10,100 area. Overall, we do retain a bullish outlook given the broader recovery structure out from a major base in 2011 and therefore recommend looking to buy on dips in favor of an eventual break above 10,100.
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Thursday, 26 April 2012
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9. The data reflects
contracts but not closings.
The index is now at the highest level since April 2010 when it reached 111.3.
Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said.
“The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means
home prices will be rising in more areas as the year progresses,” Yun said.
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The RBNZ(Reserve Bank Of New Zealand ) this morning escalated its concern about the currency, stating
that "should the exchange rate remain strong without anything else
changing, the Bank would need to reassess the outlook for monetary
policy settings".
This is undoubtedly, according to ANZ Research
Analysts Richard Yetsenga and David Croy, more dovish than comments
made in March, when the Bank said "sustained strength in the New Zealand
dollar would reduce the need for future increases in the OCR".
"We
would expect the RBNZ to take every opportunity to "talk down" the NZD,
which could dent sentiment around such commentary. However the hurdle
for following up on their apparent threat to cut seems very high indeed,
and we would expect the main drivers of recent NZD price action - being
global rather than local - to continue to drive the currency. That
suggests remaining bullish the kiwi medium term" ANZ Analysts added.
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The confidence report provided by the European Commission has pointed to
weakening figures in consumer, industrial and economic confidence, more
than expected by analysts. The European indexes, that were climbing
ahead of the data release, erased gains and are now edging lower.
The
German DAX 30 loses -0.55%, the French CAC 40 falls by -0.85%, the
British FTSE 100 sheds -0.12%, while the peripherals Italian FTSE MIB
and Spanish IBEX 35 lose the most, by -1.20% and -2.00%.
BoE’s
Weale stated that chances of an extension of the asset purchase program
in the UK are higher after yesterday’s GDP data. However, inflation
reports must be taken in account.
Crude oil fell from gains and is now losing -0.13%, slightly below $104.00. Gold is now up by 0.30%, at $1648.
Futures of the S&P500, Nasdaq 100 and Dow Jones 30 are signaling a lower open between -0.10% and -0.20%.
CPI report in Germany and jobs report in the US are due at 12:30 GMT.
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FXstreet.com (Barcelona) - The EUR/USD rallied ahead of EMU’s confidence data
to print its high at 1.3263, but very poor figures saw risk sentiment
clearing out. The pair tumbled down, retracing its daily gains back to
the opening price at 1.3218 first.
A new wave of selling
pressure threw the cross towards the psychological level at 1.3200,
where the EUR/USD is now currently testing as support.
On the
upside, double-Fibonacci barrier at 1.3230/40 zone and daily high at
1.3263 might be seen as resistance. “On the downside, 1.3170/50 zone
offers good support, with break here to weaken short-term structure”,
wrote Windsor Brokers analyst Slobodan Drvenica.
EUR/USD
Apr 26 at 12:08 GMT
1.3221/26 (0.05%)
H1.3266 L 1.3201
| S3 |
S2 |
S1 |
R1 |
R2 |
R3 |
| 1.3148 |
1.3181 |
1.3214 |
1.3221 |
1.3254 |
1.3287 |
| Trend Index [?] |
OB/OS Index [?] |
| Data updated on Apr 26 a 11:45 GMT (15-minute timeframe)
|
| Strongly Bearish |
Overbought |
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The Great
Britain pound rose today against the US dollar after a report showed
that confidence of Britons unexpectedly improved last month, muting
speculations about quantitative easing from the Bank of England.
The currency was down against the Japanese yen.
Nationwide Building Society reported
that the index of consumer confidence rose to 53 in March from 44
in February. The median forecast was 42. The report warned that
the improvement of sentiment may be short-lived. Nevertheless, analysts
started to speculate that the BoE would refrain from stimulating
the economy. Tomorrow’s report from GfK is also expected to show an improvement of confidence.
GBP/USD climbed from 1.6162 to 1.6207 before trading at 1.6184 as of 11:45 GMT today. GBP/JPY fell from 131.47 to 130.96.
