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Daily FX Market Outlook by AceTrader-3-1-2011

Discussion in 'Forex Daily News & Outlook' started by acetraderfx, Jan 2, 2011.

  1. acetraderfx

    acetraderfx Content Contributor <img src="http://www.einvestor

    Dec 15, 2008
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    Market Review - 31/12/2010 20:50 GMT

    Dollar falls broadly and hits record low against Swiss franc

    The dollar weakened across the board on Friday as traders closed their books for 2010. Investors continued to buy the Swiss franc as safe-haven currency on lingering European debt worries. The greenback fell to a fresh all time low against the Swiss franc of 0.9301 while the dollar weakened to a 7-week low against the Japanese yen. The pair dropped from 81.53 and reached 80.95 in NY session before stabilizing.

    The single currency traded with a firm undertone on Friday in Asia and Europe. Price rallied to as high as 1.3391 ahead of European opening after triggering stops above 1.3315 and 1.3330 in thin market conditions. Euro later climbed to as high as 1.3425 in NY session before retreating on profit taking.

    In other notable news, Bloomberg reported earlier German Chancellor Angela Merkel said, in an advance text of a New Year's speech to the nation, vowed to defend the euro as 'the foundation' of Germany's economy and called for resolve to bolster the single currency. She said 'Europe is in the midst of a great test, we must strengthen the euro.'

    The British pound rose in tandem with euro and price was lifted by the release of stronger-than-expected U.K. housing data. Cable's intra-day rally picked up more upward momentum after penetrating Thursday's high of 1.5535 and later rallied to 1.5680 in NY session before easing.

    Cable was supported by the release of an unexpected increase in U.K. house prices which rose by 0.4% m/m and 0.4% y/y in December versus the expectation of -0.3% m/m and -0.4% y/y. Cross-buying in pound also lifted cable as eur/gbp fell from 0.8646 to 0.8559.

    Economic indicator to be released next week include:

    Swiss PMI, Germany Manufacturing PMI, EU Manufacturing PMI, US ISM Manufacturing and Construction spending on Monday (New Zealand, Australia, U.K. and Canada will be closed on Monday), Germany unemployment rate, U.K. Manufacturing PMI, Mortgage Approval, EU CPI, US Factory order and FOMC meeting minutes on (Market holiday in New Zealand ) Tuesday, Germany Services PMI, EU Service PMI and PPI and Industrial orders, U.K. Construction PMI, U.S. ADP employment and ISM Non-manufacturing on Wednesday, Swiss CPI, UK Service PMI, EU Business Climate, Economic Sentiment, Retail Sales, Germany Factory orders and US Jobless claims on Thursday, Swiss Unemployment rate, Germany trade data and Industrial production, EU GDP, US non-farm payrolls and jobs data on Friday.

    Happy New Year~:smile2:

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