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Daily Review 02/12/2009

Discussion in 'Forex Daily News & Outlook' started by UFXBank research, Dec 2, 2009.

  1. UFXBank research

    UFXBank research New Member

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    USD Dollar (USD)


    The Dollar weakened versus most majors as better than expected housing data was released and the Dubai effect fades away. Pending Home Sales came out surprisingly positive with 3.7% versus -0.4% decline expected. ISM Manufacturing PMI was released with 53.6 weaker than 54.8 forecasted. NASDAQ gained by 1.46% and Dow Jones reached new yearly highs with 1.23% change. Crude gained by 0.75% closing at 77.86$ a barrel and Gold (XAU) gained by 1.25% closing at new record highs with 1195.9$ an ounce after reaching the 1200$ mark. Today, ADP Non Farm Employment Change is expected with -149K versus -203K prior. FOMC Member Lacker will speak and the Fed\'s Beige Book will be released giving more information on future monetary policy decisions. Crude Oil Inventories are expected with -0.4M decrease versus 1M prior, and could result volatile prices.

    EURO (EUR)


    The Euro continued to climb versus the Dollar as Dubai\'s effect fades off and equity markets continue rising. Euro Zone Unemployment Rate came out 9.8% as expected and German Unemployment Change came out better with -7K decrease versus 5K increase expected. Overall, EUR/USD traded with a low of 1.4971 and with a high of 1.5117. Today, PPI is expected with 0.1% versus -0.4% prior.

    EUR/USD - Last: 1.5090
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    British Pound (GBP)


    The Pound rose versus the Dollar after Housing Prices showed an increase of 0.4% higher than 0.3% expected and Dubai\'s crisis concerns eased. Manufacturing PMI came out weaker with 53.6 versus 54.1 expected. Overall, GBP/USD traded with a low of 1.6390 and a high of 1.6646. Today, Construction PMI is expected with 46.9 versus 46.2 prior. MPC Member Dale will speak today at Es***.

    GBP/USD - Last: 1.6620
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    Japanese Yen (JPY)


    The Yen weakened versus the Dollar and the Euro after BOJ announced it will provide 115 billion Dollars for 3 month loans at 0.1%. Monetary Base came out weaker with 3.8% versus 4.7% expected. Overall, USD/JPY traded with a low of 86.16 and a high of 87.53 and EUR/JPY traded with a low of 129.32 and a high of 131.27. Today, Capital Spending is expected with -15.8% versus -21.7% prior.

    USD/JPY-Last: 86.70
    [​IMG]

    Canadian Dollar (CAD)


    The Canadian Dollar rose versus the Dollar as investors shift back to higher yielding assets. Australian government raised its overnight interest rate by 0.25% supporting other commodity linked currencies such as the Canadian Dollar. Overall, USD/CAD traded with a low of 1.0405 and a high of 1.0576. No economic data expected today.

    CAD/USD - Last: 1.0465
    [​IMG]

    UFX Bank Research
     
  2. Rider

    Rider New Member

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    Gold prices fell for the third day in a row on Tuesday as the U.S. dollar continued to strengthen.

    February gold was down $15.50 to $1,148.5 an ounce. Gold prices have tumbled nearly 6% since hitting an all-time high of $1,218.30 on Thursday.

    The retreat came as the U.S. dollar regained ground against rival currencies, undermining demand for gold as an alternative investment.

    "The dollar is strong today and gold has been trading against the dollar," said Joe Foster, portfolio manager for the Van Eck Global International Investors Gold Fund. He said prices could continue to decline for the next few weeks before climbing anew next year.
     
  3. Rider

    Rider New Member

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    Bank of America (BAC, Fortune 500) said it funded the repayment through a combination of cash and the sale of $19.29 billion of securities that would convert into common stock. The stock sale still remains subject to shareholder approval.

    As a result of the announcement, however, Bank of America will no longer be beholden to government demands that have been imposed on the company over the past year, including caps on pay for its top executives.

    Such restrictions are believed to have posed a serious stumbling block to the company's ongoing search for a new chief executive.

    Bank of America's board of directors had originally hoped to select a successor for outgoing CEO Lewis by Thanksgiving. But several candidates are believed to have spurned offers, given the level of oversight the Charlotte, N.C.-based lender faced from the Obama administration's so-called "pay czar," Kenneth Feinberg.

    Paying back TARP funds will save Bank of America from having to make any further dividend payments on aid it received from the government. So far this year, the company has paid out $2.54 billion to the Treasury Department.

    But exiting the controversial program won't come without a cost. The company said the payment will reduce its fourth-quarter net result by $4.1 billion. The company is now expected to report a loss of $2.8 billion in the current quarter as a result, according to Thomson Reuters.
     
  4. Rider

    Rider New Member

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    Under the president's plan, delinquent borrowers are put into trial modifications for several months to make sure they can handle the new payments and to give them time to submit their financial paperwork. Once the modification becomes permanent, servicers, investors and homeowners are eligible to receive thousands of dollars in incentive payments.

    If they qualify for a long-term modification, borrowers can keep making the lower payments for five years, after which time the interest rate is set at the rate at the time of the adjustment, or about 5% today. Borrowers in modifications are saving an average of more than $550 a month.

    Loan servicers, however, say they are having trouble getting the necessary documents from borrowers, while homeowners maintain that their financial institutions are repeatedly losing the paperwork.

    Some 375,000 people should be eligible to receive long-term relief by year's end. But only one-third of homeowners who have made at least three trial payments have submitted all the needed forms, Treasury officials have said. Some 20% have not submitted any paperwork. Banks and government agencies have hired outside companies to knock on borrowers' doors to assist them with completing the paperwork.
     
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