Forex News | Currency News by Forexlive

Credit to the Australian private sector rose 0.5% in Jan versus Dec and rose 6.1% from a year ago.

Prospects for the European Investment Bank to issue bonds on behalf of eurozone rescues for eraker members of the EU as well as Eastern Europe are sending yields soaring, Ambrose Evans-Pritchard reports in The Telegraph.

The number for February, -35, was seen better than the expected forecast of -39 and better than the previous month of -37. Looks like UK consumers and feeling slightly happier…. if you can say that.

The Japanese Finance Minister, Yosano siad that the recent Yen weakness was partly because of investors unwinding Yen holds. Investors who have been holding Yen as a safe haven currency have been seen to unwind their positions as Japan’s economic conditions deteriorate.

This equated to a YoY fall of 2.4%. Industrial output was -10% for January, as expected. USD/JPY is trading at 98.30, on its session lows after trading as high as 98.60 earlier in the morning.

Old correlations are coming back into vogue today as EUR/JPY has linked up with equities from a directional basis today. Stocks have turned sharply lower in afternoon trade as health-care stocks in particular are dumped. The Obama budget with its big federal push into the health care sector has the market deeply spooked.

Both legs of the EUR/JPY cross are giving ground in fairly light trade as the market heads toward the close. EUR/USD trades in the high 1.2740s after stalling at 1.2780 at midday. USD/JPY is down at 98.30 from highs at 98.67.

Gold is rebounding as stocks slip, lending strength to the area of chart support around $931/933. Spot gold trades now at $944.00.

At the end of Q3 2008, the FDIC was keeping a close eye on 171 banks; at the end of 2008 they had 252 banks on their naughty radar.

Bank deposits grew by $307 in Q4, the largest rise in 10-years. The FDIC raised its limit on deposit insurance to $250,000 per account from $100,000 last fall. Amid trouble in money market mutual fund land, funds were likely pulled out of those funds and plunked in the bank.

In aggregate, the banking industry lost $26.2 bln, the fist loss since 1990.

Markets have gone quite quiet this afternoon with EUR/USD consolidating between 1.2740 and 80. USD/JPY is consolidating between 98.25 and 98.70.

Obama economic adviser Paul Volcker is on the Hill, downplaying the odds of bank nationalization, saying “I don’t think that’s at issue”. Volcker also advocates isolating toxic assets but does not say whether they would be on or off the bank’s balance sheets, i.e. in the government’s hands.

Stocks are firm and USD/JPY is marchinh higher along with it. It absorbed offers at 98.20/25 and is zeroing in on 98.50 where another crop of Japanese offers are seen. A break targets 98.90, the 50% retracement from last summer’s high at 110.70.

Obama’s budget is hitting the screens and the numbers are nothing short of staggering. The deficit is projected to reach $1.75 trn this year and and $1.2 trn next year. As a percentage of GDP, we will have the largest deficit in post-war history (by a long, long way). The debt/GDP ratio is Italian in its scope and will keep Treasury investors nervous until they see the green-shoots of economic growth.

EUR/USD is consolidating in the 1.2735 area while USD/JPY has run into offers at 98.20/25. One dealer describes them as “semi-decent” in size. Dealers ain’t the most articulate lot…

New sales of single family homes fell 10.2% in January to an annual rate of 309,000. The bright side? Sales in December only fell at a 9.5% rate, revised from -14.7% previously.

Inventories hit a record high as the few buyers there are are buying foreclosures at pennies on the dollar.

USD/JPY is rising back toward 98.00 with equities holding early gains.

• <
• 1
• ...
• 1380
• 1381
• 1382
• 1383
• 1384
• ...
• 1434
• >