ForexLive

Japan MOF’s Noda: BOJ has taken appropriate

Gerry Davies — Thu, 18 Mar 2010 07:58:05 +0000

Hopes they’ll take appropriate policy from now on
Policy steps up to BOJ
Wants China to understand global calls for flexible yuan
Would be wrong for US to take sanctions against China on yuan issue

JAPAN: Japan MOF official Noda adds it would be for..

Market News International — Thu, 18 Mar 2010 07:55:28 +0000

JAPAN: Japan MOF official Noda adds it would be wrong for US to take
sanctions against China over yuan issue.

JAPAN: Japan MOF official Noda says wants China to…

Market News International — Thu, 18 Mar 2010 07:55:27 +0000

JAPAN: Japan MOF official Noda says wants China to understand global
calls for a flexible yuan. (Rtrs)

Russia central bank moves floating rouble band boundary to 34.0 vs basket

Gerry Davies — Thu, 18 Mar 2010 07:24:34 +0000

You guessed it, after buying $700 mln.

EUR/USD slips little further

Gerry Davies — Thu, 18 Mar 2010 07:19:40 +0000

EUR/USD is down at 1.3669. Sovereign buy interest tipped down at 1.3650/60. If this zone doesn’t hold then stops seen just below 1.3650 and again through 1.3630.

CHINA: The Shanghai Composite Index ended down 0.14%.

Market News International — Thu, 18 Mar 2010 07:10:28 +0000

CHINA: The Shanghai Composite Index ended down 0.14% at 3,046.09.

CHINA: US demands on yuan are “unfair and harmful”,..

Market News International — Thu, 18 Mar 2010 07:10:27 +0000

CHINA: US demands on yuan are “unfair and harmful”, China’s foreign
minister is reported saying, adding a calm and rational approach is
needed to FX dispute. He says he is seeking a mutually beneficial
solution.

China says “calm and rational” approach needed to fx dispute, seeks mutually beneficial solution

Gerry Davies — Thu, 18 Mar 2010 07:02:40 +0000

I was listening to Goldman’s Jim O’Neil on Bloomberg yesterday. What a clever chap he is, somewhat surprisingly given his football allegiance. If I remember rightly he was saying a move to reval the yuan could be just weeks away.

Cable lower. Public finances data due

Gerry Davies — Thu, 18 Mar 2010 06:44:40 +0000

Cable has given back a chunk of yesterday’s gains, down about a full cent from recent high, presently at 1.5290.

Some event risk for sterling today in form of February public finances data. Will also be interesting to see mortgage approvals given the recent slowdown in the UK housing sector.

Release calender as follows:

09:30 GMT: UK major bank mortgage approvals for February expected 54k

09:30 GMT: PSNB for February expected 14 bln; PSNCR expected 11.0 bln

09:30 GMT: M4 money supppply for February expected +0.8% m/m

11:00 GMT: UK CBI industrial trends for March

09:30 GMT: UK

UK: UK data at 0930GMT sees Trends In Lending data…

Market News International — Thu, 18 Mar 2010 06:25:36 +0000

UK: UK data at 0930GMT sees Trends In Lending data from the Bank of
England and also CML Gross Mortgage Lending data, while at the same
time, Provisional M4 Lending and Money Supply data is due along with the
public finances data, where PSNB is expected to grow to stg13.4 billion
and PSNCR is seen st stg11.0 billion.

EUROPE: Events start at 0700GMT when the Riksbank….

Market News International — Thu, 18 Mar 2010 06:25:35 +0000

EUROPE: Events start at 0700GMT when the Riksbank Deputy Governor Lars
Svensson is due to deliver a speech on “Evaluating Monetary Policy in
Sweden 2009″, in Stockholm. In Europe today, the European Parliament
have a hearing on European economic governance and EU tools for economic
recovery, while the ECB also holds a Governing Council meeting, although
no monetary policy decision is scheduled at this meeting. EMU data
starts at 0900GMT with the January current account data. UK data at
0930GMT sees Trends In Lending data from the Bank of England and also
CML Gross Mortgage Lending data, while at the same time, Provisional M4
Lending and Money Supply data is due along with the public finances
data, where PSNB is expected to grow to stg13.4 billion and PSNCR is
seen st stg11.0 billion. At 1000GMT, the EMU trade balance is expected
to come in at +E1.0 billion for January.

EUR/USD opens lower, Greek worries never far from the surface

Gerry Davies — Thu, 18 Mar 2010 05:59:58 +0000

EUR/USD sits at 1.3676, down from a North American close Wednesday up around 1.3735.

Comments from Angela Merkel’s chief finance spokesman will have been noted, Michael Meister opining that Greece should turn to the IMF if it’s needs aid. Some see this as signalling a rift between Germany and other European Leaders. Oh-eh.

Eurozone data due today:

09:00 GMT: Italian trade for January expected 0.19 bln

09:00 GMT: Euro zone current account for January expected 2.9 bln

10:00 GMT: Euro zone trade balance for January expected 5.1 bln

UK PRESS: Nissan’s Sunderland site in northeastern…

Market News International — Thu, 18 Mar 2010 05:40:22 +0000

UK PRESS: Nissan’s Sunderland site in northeastern England is to
manufacture the Leaf, an electric vehicle described by the company as
the world’s first affordable, mass produced zero-emission car, the
company said on Thursday, the FT reports. The decision by Nissan to make
Sunderland its third global manufacturing location for electric vehicles
will, together with a previously announced lithium-ion battery plant at
the site, maintain around 2,250 UK jobs at Nissan and across the supply
chain, the paper says.

UK PRESS: The eurozones united front against the…..

Market News International — Thu, 18 Mar 2010 05:40:21 +0000

UK PRESS: The eurozones united front against involving the
International Monetary Fund in a rescue operation for Greece is
cracking, with at least three of the area’s 16 nations open to calling
in the IMF if needed, the FT reports. EU officials said Finland, the
Netherlands and Italy were all increasingly favourable to turning to the
IMF for financial aid if Athens was unable to meet its debt refinancing
at reasonable cost over the next two months, the paper says.

Selling of JPY crosses catches second wind

Sean Lee — Thu, 18 Mar 2010 05:13:35 +0000

Typical, within seconds of my pressing submit on my session ranges, the JPY crosses get hit by another wave of selling. EUR/USD has made a new intraday low at 1.3690, cable at 1.5280 and EUR/JPY at 123.45.

US PRESS: The NY Times says that across Europe, from.

Market News International — Thu, 18 Mar 2010 05:10:49 +0000

US PRESS: The NY Times says that across Europe, from profligate Greece
to newly strait-laced Ireland, countries are promising deep, painful
cuts in public spending even as they face the likelihood of a new
recession. To protect the value of the euro, satisfy investors and
appease Europe’s economic taskmaster, Germany, the regions most heavily
indebted nations consider that they have no choice but to slim down, the
paper says.

Asian FX market wrap: quiet consolidation of overnight moves

Sean Lee — Thu, 18 Mar 2010 05:05:55 +0000

Once again repatriation flows at Tokyo fix were the only highlight of a quiet session
Reuters Tankan survey suggests increased optimism among Japanese corporates
Increasing disquiet over European austerity measures
Regional stockmarkets flat on the session

Once again there has been very little to report from a quiet Asian session. Some JPY-buying flows around the time of the Tokyo fixing saw the JPY crosses dip but the volumes were not large enough to cause any lingering effect and most currency pairs will end the session close to where they started.

USD/JPY opened around 90.40, fell to 90.15 when the JPY buying was at its strongest, but has since recovered most of these small losses. Corporate sell orders at 91.10/20 are still live but much of the selling has already been done and the pressure should ease by mid next week. Ranges: USD/JPY 90.15/45, EUR/JPY 123.66/124.28.

The AUD/USD had hoped for a more exciting day after a bullish close in NY above it’s recent consolidation range but the follow through has been negligible here today. Range: .9210/42.

Cable slipped from its NY closing level at 1.5320 when some GBP/JPY flows hit the market but it has managed to claw back most of those losses. There have been no major sterling-related announcements and order books are light 100 pips either side of the market. Ranges: Cable 1.5290/1.5324, EUR/GBP .8957/73

The EUR has again been quiet in Asia despite increasing reports of major differences of opinion between the EU partners. It looks a bit like Germany versus the rest. EUR/USD range 1.3713/42.

Markets: Nikkei -0.25%, Kospi -0.1%, HK +0.1%. Gold steady at $1123/oz.

UK press takes a breather on sterling-bashing

Sean Lee — Thu, 18 Mar 2010 04:36:53 +0000

Unless I’ve missed something, it seems that London dealers will be getting off their commuter trains without an overly bearish GBP mindset. The UK press is concentrating on the upcoming election and on European woes. I have short term technical support/resistance levels in the cable at 1.5275/1.5380 with 1.5180/1.5425 outside of there.

UK PRESS: Angela Merkel has challenged Gordon Brown..

Market News International — Thu, 18 Mar 2010 04:25:28 +0000

UK PRESS: Angela Merkel has challenged Gordon Brown to drop his
objections to European regulation of the hedge fund and private equity
industry, the FT reports. The German chancellor called for greater
progress in agreeing new financial regulations at an international
level, and singled out UK opposition to the proposed European Union
hedge fund directive, the paper says.

Reuters Tankan survey shows increased optimism among Japanese corporates

Sean Lee — Thu, 18 Mar 2010 04:03:48 +0000

The most watched event on the Japanese economic calendar is the quarterly Tankan report and today’s release of the Reuters mini-Tankan suggests that next months BoJ Tankan will show a marked improvement in business confidence. Longer term JGB yields are on the rise as this and the spilt vote yesterday suggest that there will be no more policy easing in the months ahead. The JPY remains close to its session highs against the other major currencies.