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Daily Review 11/12/2009

Discussion in 'Forex Daily News & Outlook' started by UFXBank research, Dec 11, 2009.

  1. UFXBank research

    UFXBank research New Member

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    USD Dollar (USD)


    The Dollar traded with a narrow range versus most majors as mixed data was released in the US. The initial Jobless claims rose by 17K coming at 474K but the trade balance deficit in the U.S. unexpectedly narrowed in October to -32.9B as rebounding economies overseas and a weaker dollar pushed exports up for a sixth consecutive month. NASDAQ and Dow Jones rose by 0.33% and 0.67% respectively, following the trade balance. Crude oil decreased by 0.2% closing at 70.54$ a barrel. The oil traded the first time this month below 70$. Gold (XAU) rose by 0.5% closing at 1125.7$ an ounce. Today, Retail Sales is expected at 0.6% vs. 1.4% previously and Michigan Consumer Sentiment is expected at 69.1 vs. 67.4.

    EURO (EUR)


    The Euro rose slightly versus the Dollar after European Central Bank President Jean- Claude Trichet said he will withdraw stimulus measures in a faster pace than economists anticipated, clearing the way for higher interest rate next year. Overall, EUR/USD traded with a low of 1.4682 and with a high of 1.4760. Today, ECB President Trichet Speaks.

    EUR/USD - Last: 1.4725

    Resistance 1.4760 1.4866 1.4900
    Support 1.4675
    [​IMG]

    British Pound (GBP)


    The Pound stayed almost unchanged versus the Dollar and the Euro after The Bank of England stuck to its plan to buy as much as 200 billion pounds in bonds and held the interest rate at a record low of 0.5%. Overall, GBP/USD traded with a low of 1.6213 and with a high of 1.6346. Today, PPI Input is expected at 0.6% vs. 2.6% prior.

    GBP/USD - Last: 1.6312

    Resistance 1.6346 1.6472 1.6660
    Support 1.6230 1.6167
    [​IMG]

    Japanese Yen (JPY)


    The Yen declined against the Dollar and Euro, as U.S. continuing claims for unemployment benefits fell to a nine-month low, encouraging demand for higher-yielding assets. Overall, USD/JPY traded with a low of 87.73 and with a high of 88.45.No important data is expected today.

    USD/JPY-Last: 88.70

    Resistance 89.17 89.60
    Support 87.72 87.36
    [​IMG]

    Canadian dollar (CAD)


    The Canadian Dollar strengthened for a second day versus the Dollar, touching the strongest level this week as stocks gained and the nation unexpectedly posted a trade surplus. Trade Balance came out better than expected at 0.4B vs. -0.6B forecast. Overall, USD/CAD traded with a low of 1.0478 and with a high of 1.0582. Today, NHPI the previous data came out at 0.5%.

    CAD/USD - Last: 1.0512

    Resistance 1.0550 1.0590 1.0648
    Support 1.0482 1.0433
    [​IMG]

    UFX Bank Research
     
  2. Rider

    Rider New Member

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    The House passed legislation Friday aimed at preventing the next big financial crisis, ushering in the most sweeping set of changes to the banking regulatory system since the New Deal.

    The bill, which passed 223-202, imposes more oversight and stronger capital cushions for the largest banks and Wall Street firms. It forces them to pay a total of as much as $150 billion into an emergency fund that could be tapped when a troubled company needs to be taken over and broken up.

    The legislation also calls for the regulation of some derivatives and creates a new Consumer Financial Protection Agency to regulate products such as credit cards and mortgages.

    "We are sending a clear message to Wall Street, the party is over. Never again will reckless behavior on the part of the few threaten the fiscal stability of our people," said House Speaker Nancy Pelosi during a press conference after the bill passed. "The legislation will finally protect Main Street from the worst of Wall Street."

    On the Senate side of Capitol Hill, the bill is moving much more slowly and final passage is likely months away.

    As chairman of the House Financial Services committee, Rep. Barney Frank, D-Mass., has spearheaded the financial reform package since last Spring -- especially the part that creates the Consumer Protection agency.

    "The bailouts of AIG and Bear Stearns would be not possible -- made illegal -- under this bill," Frank said. "If a company fails, it'll be put to death."
     
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