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Daily FX Market Outlook by AceTrader-9-12-2010

Discussion in 'Forex Daily News & Outlook' started by acetraderfx, Dec 8, 2010.

  1. acetraderfx

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

    Dec 15, 2008
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    Market Review - 08/12/2010 21:21 GMT

    Dollar rises against yen as higher Treasury yields flag growth

    The dollar surged against the Japanese yen on Wednesday due to speculation that the early proposed extension of tax cuts would bolster the US economy, leading to a selloff in Treasury securities and driving the corresponding yields higher.

    The greenback extended Tuesday's rally in Tokyo morning against the Japanese yen due to renewed tension on the Korean peninsular, price penetrated 83.66 and continued to edge higher. The pair eventually rose to 84.31 in NY session before stabilizing.

    In other news, S. Korean Yonhap News reported North Korea fired artillery shells near the disputed western border while Washington Post reported that U.S. New Mexico Governor Bill Richardson may travel to N. Korea next week to speak with the officials about the country's nuclear program.

    Euro remained under heavy selling pressure as Asian traders sold the single currency after initial recovery to 1.3280, several layers of stops were triggered when price penetrated minor sup at 1.3236 made in Australia and the pair edged lower to 1.3180 in Europe before staging a rebound. Euro was supported by the release of better-than-expected German industrial production which came in at a 2.9% rise versus the economists' forecast of 1.0% rise.

    The British pound remained under pressure initially and fell to 1.5668 in tandem with euro, however, cable rebounded strongly and climbed above Tuesday's 1.5823 high to 1.5837 in NY morning before stabilizing. Cable was helped by the release of stronger-than-expected U.K. CBI orders data which came in at -3 versus the forecast of -15.0.

    RBNZ left its official cash rate unchanged at 3.00% as expected and said it expected rates to rise less than it had previously predicted. The central bank added it would be prudent to keep rates low until recovery becomes more robust and this pressured the nzd/usd pair to fall sharply.

    The economic indicators to be released on Thursday include:

    Japan GDP , Australia Unemployment change n employment change, Germany CPI, U.K. Trade Balance, BOE rate decision, U.S. jobless claims n wholesale inventories.

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