Forex Trading News EU’s Almunia on the Wires

EU’s Almunia: Situation of credit market is ‘real problem’ that needs to be addressed

Forex Trading News UK Nationwide HPI Released

The UK Nationwide House Price Index came out at -1.3% from the previous -2.5%.  A rise to -1.8% was forecast. 

The GBP firmed up slightly initially as this number, still in the negative, did beat expectations. 

Forex Trading News BoJ Deputy Governor Nishimura

BOJ Deputy Gov Nishimura: Excessive policy intervention could hurt markets; 0.1% policy rate is ‘best’ for time being- Says not easy to set term rates as policy target

- To seek operations that impact long-term yields
- Need to diversify BoJ operations
- Notes quantitative easing had limited economic impact in the past
- Must consider risk of losses in asset purchases
- Malfunction in Japanese markets is not as severe as that in US
- Japan’s economy worsening sharply, expected to continue worsening in near term
- Need to watch for risk of Japan economy worsening further.
- Stock falls gradually affecting Japanese banks capital base.
- Watching Japan banks’ capital bases and their fund transmission mechanism.
- Japanese banks lending attitudes becoming more severe.
- Firms still facing difficulty in fundraising.
- Global economy is worsening very fast.
- Economic slowdown in emerging nations now clearer.
- Says crisis is extending to Latin America and the Middle East.
- Steps to stem crisis so far may not be enough.
- Uncertainty is high over the timing of the global economy’s recovery.
- Need to watch public’s long-term inflation expectations to gauge Japan’s price trends.
- Carefully watching risks of deflationary spiral.
- To finalize corporate bond operations as soon as possible.
- Crisis is extending to L America and Middle East, impact on emerging economies are clearer

Forex Trading News Economic Calendar (1/29/2009)

Thursday, January 29, 2009

Forex Usd/Jpy in a downward wedge

Usd/Jpy is trading in a downward wedge holding above 90.00 level trying to test the topside.

Forex Trading EUR/USD Feeling Some Pressure

After rallying the last few sessions on speculation further rate cuts out of the EU will be avoided, the EUR/USD pair has been unable to penetrate and sustain above any long-term resistance. The USD rallied against the Euro following the FOMC minutes and looks poised to make another run at the recent lows. On the retracement analysis below the important things to note is the triangle formation for the pair, the consolidating wedge and range between the 61.8% and full retracement levels. We will be watching these indicators closely over the next few sessions.

Forex Trading News Japanese Retail Trade Data

The Japanese Retail Trade numbers expected to be weaker in December than November came in worse than expectations. The Yen which was already trading weaker on the session against the USD is unchanged. The data was released as follows:

Retail Trade (YoY) – Survey: -1.6%  Actual:-2.7%   Prior:-0.9%

Retail Trade (MoM) – Survey: -0.8%   Actual: -2.0%   Prior:-0.1%

Large Retailer Sales – Survey: -5.2%  Actual: -6.3%  Prior:-3.2%

Forex Trading News New Zealand Trade Balance (Export / Imports)

The New Zealand’s December Trade Balance figures came in weaker than expected, speaking to Governor Bollard’s earlier comments in regards to a lower Kiwi benefiting the economy. The Kiwi is relatively unchanged on the release, the reading were as follows:

Trade Balance – Survey:-100M   Actual:-347M   Prior:-520M

Imports - Survey:3.8B  Actual:4.2B   Prior:4.21B

Exports - Survey:3.76B   Actual:3.85B   Prior:3.69B