market alert
Article
Previous Articles
Print
- Nov, 20 USD Graphic Rewind
- Nov, 20 Opening Comment
- Nov, 20 Overnight Interest Rate Update 11.19.09
- Nov, 19 Japanese Yen Benefits on Risk Aversion, New Zealand Dollar Falters
- Nov, 19 U.K. Public Budget Posts Highest Short-Fall Since 1993
- Nov, 19 Overnight Interest Rate Update 11.19.09
- Nov, 18 Swiss Franc Strengthens on U.S. Dollar Weakness, British Pound Falters
- Nov, 18 Canadian Consumer Prices Expand for the First Time in 5 Months
- Nov, 18 Opening Comment
- Nov, 18 Overnight Interst Rate Update 11.18.09
- Nov, 17 British Pound Remains Bid, Canadian Dollar Underperforms
- Nov, 17 U.K. Inflation Tops Forecast
- Nov, 17 Overnight Interest Rate Update 11.17.09
- Nov, 17 USD Graphic Rewind
- Nov, 16 Canadian Dollar Outperforms, Japanese Yen Lags Behind
- Nov, 16 Euro-Zone Consumer Prices Weaken For Fifth Month in October
- Nov, 16 Overnight Interest Rate Update 11.16.09
- Nov, 13 US Confidence Falls for Second Month
- Nov, 13 Overnight Interest Rate Update 11.13.09
- Nov, 13 German GDP Posts 2nd Quarterly Advance; Rises to 0.7%
OPENING COMMENT
While the equity sell-off into the US close following the FOMC decision has been the initial catalyst for some paring back of risk, setbacks have accelerated into Asia, with the commodity currencies getting hit the hardest. So far, Kiwi is the biggest loser on the day with some weaker than expected employment data (9 year high for unemployment rate at 6.5%) fueling additional liquidation of the higher yielding currency, while some very downbeat comments from RBNZ Bollard have not helped matters. The governor has said that the market is not recognizing New Zealand’s dull recovery and that the smaller economy can not be compared to its much more diverse Australian cousin. Meanwhile in Australia, while the headline trade balance numbers were slightly better, market participants were not happy with the downward revision to the previous print and deterioration in the data series. Also weighing on the Australian Dollar was the news that the country plans on imposing a 16% provisional dumping duty on Chinese aluminum extrusions.
Elsewhere, in the UK, ex-BOE ultra-dove Blanchflower is not holding back ahead of this morning’s BOE rate decision after saying that the MPC’s “feeble six” need to shape up and increase QE today by at least GBP50B. Blanchflower has been very critical of the MPC’s decision making and contends that the central bank has not been accommodating enough and has put the economy at risk as a result.
Volatility and price action should only pick up from here with the rest of the week loaded with key event risk and economic releases, highlighted with today’s BOE and ECB rate decisions, and Friday’s US NFPs. There is still plenty of other data ahead of the central bank decisions in Europe, with Swiss SECO consumer climate (-38 expected) and Swiss CPI (-0.7% expected) kicking things off at 8:15GMT. RBA Stevens speaks at 8:55GMT, followed by some UK data at 9:30GMT in the form of industrial production (1.2% expected) and manufacturing production (1.0% expected). Eurozone retail sales (0.2% expected) then caps things off at10:00GMT, ahead of the highly anticipated respective BOE and ECB rate decisions at 12:00GMT and 12:45GMT respectively.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail jskruger@fxcm.com and you will be added to the "distribution" list.
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.
Resources
