| About CMS | Forex Services | Trading Software | Forex Education | Forex Resources | My Account |
 |
||||||||||||
    |
||||||||||||
 |
||||||||||||
|
||||||||||||
Video for May 12th, 2008 (4 min 04 sec): Pound Gains On Producer Inflation Data, Yen Down as Global Stock Recover, Helping To Boost Carry Trade
AUS Home Loans fall 6.1% in March, Business Confidence Deteriorates
In Australia, Home loans disappointed on the downside, falling 6.1% for March from a downwardly revised 6.8% in February. The NAB business confidence survey showed current conditions fell to -8 in April March's -4 reading. High borrowing costs, inflation, and global uncertainties are causing a drop in sentiment. AUD/USD - Aussie Gains Despite Fundamental Data
The Australian-US Dollar pair declined immediately following the releases,but found support near 0.9365. Overnight, the pair climbed 100 pips from that level as risk appetite returned to global stock markets and boosted carry trade. The Aussie with its high interest rate is a prime destination for carry trade flows. European and London Stocks Recover to Start the Week After a wave of risk aversion last week, European and London stocks recovered overnight. The DJ Stoxx 500 was up .3% and the London exchange was 0.3% higher as of 1:30 PM EST. US stocks opened higher, with the DOW gaining 100 points or .8%. EUR/JPY - European Stocks Boost Euro vs Yen
The Euro-Yen pair had a strong rally as a result. After retesting its Friday's low near 158.55, the pair climbed more than 250 pips. The Euro pared it losses from the last two sessions, but and how it behaves now will be an indication if the recent jump in a retraction from the recent downtrend, or the start of a new uptrend. UK Factory Gate Infaltion Surges to New Record Highs In the UK producer output prices rose 1.4% for the month of April, and 7.5% in annual terms. Both figures are the highest since records began being kept in 1986. Producer input prices, or prices of raw materials, were up 23.3% in annual terms, and climbed 2.4% on the month. Both were higher than economists' forecasts, and may imply that the central bank will have to ease interest rates at a more gradual pace than they earlier thought. UK Trade Balance Narrows as Imports Fall The UK global goods trade deficit narrowed from -£7.6 billion to -£7.4B. That is a seven month low. Imports declined 0.5% while exports were up 0.5%. The weaker pound may be helping the export sectors in the UK, while weakening consumer and business confidence and spending may continue putting a drag on imports. GBP/JPY - Carry Trade Returns, Pound Pares Friday's Losses
The higher inflation data and a rebound in stocks helped send the Pound-Yen pair 300 pips higher overnight, which wiped away the losses from Friday's session. The UK set to release consumer inflation data tomorrow and its quarterly inflation report on Wednesday. Traders will analyze whether the central bank will focus on inflation going forward despite a slowing economy. GBP/USD - Pound Boosted by Inflation Data, Stronger Stocks
The Pound-Dollar pair rallied 160 pips to climb above 1.96 after hitting an intra-day low at 1.9445. The Bank of England is more likely to take on a more gradual approach to lowering interest rates, which should help to support the Pound. EUR/USD - Euro Surges Overnight, Reaches 1.5550
The Euro-Dollar rallied overnight finding resistance near 1.5550. It started the global session falling below 1.54, but as European trading commenced, the pair surged 160 pips. CAN New Housing Prices Grow by Slower Rate In Canada, prices for new homes rose at a monthly rate of 0.2% down from 0.3% in February and 0.6% in January. Annual price growth slowed to 6.1%. Building permits were down in March, and housing starts declined in April. Tighter credit conditions are taking the steam of the Canadian housing market. USD/CAD - Loonie Continues Friday's Gains To Start the Week
The US Dollar - Canadian Dollar pair was lower today, falling below 1.0050, its support from Friday. The pair tested resistance near 1.01 overnight and headed towards parity. The weak Canadian housing data temporarily stalled the loonie's gains on the greenback. Upcoming Releases
Tonight the UK will post BRC retail sales, RICS housing
prices balance, and follow that overnight with its consumer and retail price
indexes.
|
||||||||||||
