November 10th, 2010 13:47:56 GMT

Mid-East, Asian accounts still buying EUR/USD dips

by

Traders report steady interest from a Middle Eastern account to soak up EUR/USD below the 1.3750 level. Asian central banks have been spotted as well.

There is a strong area of support in the 1.3700/35 area, so it looks as low the easy money has already been made on EUR/USD shorts.

That’s not to say that EUR/USD can’t fall further, it just has to work at it. Look at the 82.00 level in USD/JPY. It was not easy to surmount, but once the market worked through that level, it was off to the races. Consider 1.3700 to be the equivalent of 82.00 in USD/JPY, a key area.

12 Comments

November 10th, 2010 13:45:22 GMT

US BLS:Oct US Import Prices +0.9%; Higher Fuel,NonFuel Prices

by

By Brai Odion-Esene and Ian Mckendry

WASHINGTON (MNI) – The U.S. import price index rose in October, up
0.9% after edging down by a revised 0.1% in September, with higher fuel
and non-fuel prices feeding the increase, the Bureau of Labor Statistics
reported Wednesday.

The export price index rose for the third consecutive month in
October, the BLS said, up by 0.8%.

Import prices rose 3.6% year-over-year for October, a slight
increase over last month’s 3.5% year-over-year increase.

Aiding the increase in October import prices was a 3.0% jump in
fuel import prices — responsible for approximately two-thirds of the
overall increase, the BLS said. The rise in fuel import prices, the
largest since a 4.4% increase in January, was driven by a 3.3% rise
in petroleum prices, which offset a 2.3% decline in natural gas import
prices.

Year-over-year, petroleum import prices rose 7.6% and natural gas
prices rose 9.5%, pushing the overall fuel imports price index up 7.9%
for the same period.

Non-fuel import prices also rose in October, up 0.3% after a
increasing by the same level in September. Non-petroleum import prices
rose by 0.4% in October.

The BLS said the main contributor to the jump in nonfuel import
prices was the 1.9% rise in import prices for non-fuel industrial
supplies and materials, and the 1.1% jump in foods and beverages import
prices (up 9.8% y/y). Prices for finished goods were mixed, with
automotive vehicle prices rising 0.4% in October, while import prices
for consumer goods excluding autos fell by 0.5%.

The non-fuel import price index rose 2.5% over the past 12 months,
led higher by the 11.8% y/y rise in prices for non-fuel industrial
supplies and materials.

By region, prices for imports from China rose 0.4%, while prices
for imports from the European Union were down 0.1% in October.

Import prices from Mexico rose by 0.6%, Canada by 1.4%.

As mentioned earlier, the export price index rose last month, up
0.8%. The BLS attributed the increase to both the 0.7% jump in
non-agricultural export prices, and the 2.5% rise in agricultural
exports prices.

Export prices rose 5.8% year-over-year, the largest 12-month change
since a 7% increase between September 2007 and September 2008.

The report, the only one of its kind done in or out of government,
itself is largely but not entirely made up of monthly price changes
submitted voluntarily by firms, with some items priced quarterly. The
BLS also makes quality adjustments to the price quotes if the product
has been improved.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: MAUDS$,M$U$$$,MT$$$$]

Comments Off

November 10th, 2010 13:45:20 GMT

US Jobless Claims Fall 24,000 To 435,000 In November 6 Week

by

–Continuing Claims Fall 86,000 In October 30 Week; 2-Year Low

By Brai Odion-Esene and Ian McKendry

WASHINGTON (MNI) – Initial claims for U.S. state unemployment
benefits fell by a larger-than-expected 24,000 to 435,000 in the
November 6 week after seasonal adjustment, the U.S. Labor Department
reported Wednesday.

Economists surveyed by Market News International had expected
initial claims to rise to 450,000 in the current week, from the 457,000
level originally reported in the previous week. The October 30 week’s
level was revised up to 459,000.

A Labor Department analyst said that for the latest week, seasonal
factors expected unadjusted claims to increase by 12.7%, or about 53,000
to 54,000 claims. According to the analyst, normally this particular
week every year sees an increase in layoffs by seasonal industries such
as construction and landscaping.

Instead, unadjusted claims rose by a lesser 6.8%, or 28,808 claims,
to 449,905. Unadjusted claims were at a level of 531,743 in the
comparable week a year ago.

The initial claims seasonally adjusted 4-week moving average fell
by 10,000 to 446,500 in the November 6 week, the lowest level since
Sept. 13 2008 (444,500).

The analyst said there was nothing unusual in the state level data,
with only Alaska estimated.

In the October 30 week, continuing claims fell by 86,000 to
4,301,000, the lowest level since the November 22, 2008 week, when they
stood at 4,142,000.

Unadjusted continuing claims fell 13,638 to 3,745,901 in the
October 30 week, still well below the 4,961,610 level a year earlier.

The seasonally adjusted insured unemployment rate fell to 3.4% in
the October 30 week, after holding at 3.5% the prior week. The rate was
down sharply from the 4.3% rate reported in the comparable week a year
earlier.

The unemployment rate among the insured labor force is well below
that reported monthly by the Labor Department because claims are
approved for the most part only for job losers, not the job leavers and
labor force reentrants included in the monthly report.

The Labor Department said that the level of unadjusted Emergency
Unemployment Compensation benefits claims fell by 162,460 in the October
23 week, bringing that category to 3,815,914. Extended benefits claims
also declined, down by 123,464 to 911,239 not seasonally adjusted.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]

Comments Off

November 10th, 2010 13:45:19 GMT

US DATA: Oct U.S. import prices +0.9% (+3.6% y/y),…

by

US DATA: Oct U.S. import prices +0.9% (+3.6% y/y), non-fuel import
prices +0.3%, non-petro +0.4%. Oct fuel import prices +3.0%, petro
import prices +3.3%. Oct export prices +0.8%, non-agriculture exports
+0.7%; ag exports +2.5%. Ag exports +15.7% y/y, largest gain since
Sep’08. Import prices from Canada +1.4%, LatAm +0.8%, China +0.4%, Japan
+0.2%, Mexico +0.6% and the EU -0.1%.

Comments Off

November 10th, 2010 13:39:57 GMT

Middle East buying USD/JPY

by

USD/JPY continues to add to gains with Middle Eastern accounts said to be the latest buyers. We’ve traded as high as 82.65. Offers are seen toward 83.00, traders say.

Expect buyers on dips anywhere toward the 82.00 area. Looks like the bottom is finally in USD/JPY.

US yields are screaming higher this morning, giving the dollar a very strong boost.

10-year yields are at 2.73% from 2.66% yesterday (and 2.46% last week).

1 Comment

November 10th, 2010 13:35:30 GMT

ANALYSIS: US Sep Trade Bal -$44B; Imprts -$2B, Exprts +$0.5B

by

–US Civ Aircraft Exports +$698M; China NSA Sep Bal -$27.8B

By Joseph Plocek

WASHINGTON (MNI) – The U.S. September trade data surprised as
better than expected, with the overall trade balance reported at -$44.0
billion after a revised -$46.5 billion in August.

Imports fell $2 billion in a relief from demand, and exports
gained $0.5 billion in a virtuous combination that might also reflect
continuing need abroad for some products.

This improvement was better than the steady real trade gap the
Commerce Department had assumed for September in the Q3 GDP accounts and
will add to growth in the revision. The real trade balance collapsed by
$1.5 billion in September.

Imports included: -$1.9 billion consumer goods (pharmaceuticals,
apparel, and gems fell), -$1.4 billion autos and -$319 million in ‘other
goods’, offset by +$658 million for crude oil and +$1.3 billion in
capital goods (mainly computers).

Oil unit prices fell $1.11 per barrel on imports so this implies
more demand. The drops in imported goods could have come because holiday
sales stocking was completed earlier and imply fewer goods will make
their way into inventories.

In exports, civilian aircraft printed +$698 million and jewelry
+$228 million, but nonmonetary gold fell $652 million as an offset.
Looking ahead, Boeing Corp. has massive orders that should be delivered
overseas and will boost exports in coming months.

The unadjusted balances by country were: China -$27.8 billion after
-$28 billion in August, Japan -$5 billion (its lowest since July) after
-$5.8 billion, and OPEC -$8.9 billion after -$9 billion. U.S. exports to
China have averaged only about $7 billion a month this year.

Trade is recovering with growth as exports reached a new high and
imports of services reached a high since October 2008. But a bottom line
is that the trade gap remains too wide and is creating global imbalance
as China continues to export to a receptive U.S.

**Market News International Washington Bureau: (202)371-2121**

[TOPICS: M$U$$$,MU$$$$,M$$FI$,MT$$$$,MAUDS$]

1 Comment

November 10th, 2010 13:35:28 GMT

US DATA: Initial jobless claims -24k to 435k in Nov..

by

US DATA: Initial jobless claims -24k to 435k in Nov 6 wk, nowhere
near the 450k level expected. The Labor Dept analyst said seasonal
factors expected a 12.7% rise, or about 54,000, in unadjusted claims.
Actual NSA claims +6.8%, or +28,808, to 449,905. Alaska estimated. 4-wk
moving avg -10,000 to 446,500. Continuing claims -86k to 4.301 mln in
Oct 30 week.

US DATA: Oct U.S. import prices +0.9% (+3.6% y/y), non-fuel import
prices +0.3%, non-petro +0.4%. Oct fuel import prices +3.0%, petro
import prices +3.3%. Oct export prices +0.8%, non-ag exports
+0.7%; ag exports +2.5%. Ag exports +15.7% y/y, largest gain since
Sep’08. Import prices from Canada +1.4%, LatAm +0.8%, China +0.4%, Japan
+0.2%, Mexico +0.6% and the EU -0.1%.

Comments Off

November 10th, 2010 13:35:27 GMT

US DATA: Sept trade bal -$44.0b (vs rev -$46.5b Aug).

by

US DATA: Sept trade bal -$44.0b (vs rev -$46.5b Aug) as imports -$2b and
exports +$0.5b. This improvement was better than the steady real trade
gap the Commerce Dept assumed for Sept in the GDP accounts and will add
to growth. Imports incl: -$1.9b consumer goods (pharma, apparel, gems
fell) and autos -$1.4b, offset by +$658m crude oil (unit prices was
-$1.11/bbl so this implies more demand). In exports, civ aircraft +$698m
and jewelry +$228m but nonmonetary gold -$652m was an offset. NSA bal by
country: China -$27.8b vs -$28b Aug, Japan -$5b (lowest since July) vs
-$5.8b, OPEC -$8.9b vs -$9b. Trade is recovering with growth as exports
reached a new high and imports of services reached a high since Oct’08.
But a bottom line is that the trade gap remains too wide and is creating
global imbalances as China continues to export to the US.

Comments Off

November 10th, 2010 13:30:26 GMT

Trade gap narrows to $44 bln;claims fall to 435k

by

We don’t need no stink’ QE!

The slight narrowing in the trade deficit will add to the GDP calculation while the trend improvement in claims is a plus for the employment picture.

Also of note, US import prices rose less than expected, up 0.9% . The market had expected a 1.2% jump for October.

Canada posted a larger than expected C$2.5 bln trade deficit. The market expected a C$ 1.6 deficit.

7 Comments

November 10th, 2010 13:25:33 GMT

Update: Wise Men Fcast 2010 Germany GDP +3.7%, +2.2% In 2011

by

–Adds Detail, Comments From Press Conference To Story Sent at 09:45 GMT

BERLIN (MNI) – Germany’s council of independent economic advisers
– the so-called five wise men — expects German GDP growth of 2.2% next
year.

For the current year, the council sharply raised its GDP growth
forecast to 3.7% from the 1.6% it had projected last November.

“Current economic indicators signal that the upswing should
continue albeit at a somewhat slowing speed,” the council said in its
report. External impulses will be increasingly replaced by domestic
momentum, the wise men predicted.

“Some 90% of the growth impulse next year will come from domestic
demand,” council member Peter Bofinger said at a press conference to
present the forecasts. The council expects that 1.9 percentage point of
the 2.2% growth rate in 2011 will be due to domestic demand, he
explained.

Sinking unemployment will stimulate private consumption, as
investment spending is boosted by historically low interest rates, the
council’s chairman, Wolfgang Franz, elaborated. There is also leeway for
wages to increase, he said, adding that he did not see a danger of
excessive pay rises.

Last month the German government lifted its GDP forecasts for this
year and next to +3.4% and +1.8%, respectively, from the +1.4% and +1.6%
projected in April.

Because of the healthy economic recovery, Germany will meet the
deficit limit of 3% of GDP set under the EU Stability and Growth Pact by
next year. The wise men forecast a total public budget deficit as a
percentage of GDP of 3.7% this year and 2.4% next year.

German Chancellor Angela Merkel stressed at the press conference
that “we must continue on the path of budget consolidation.”

Current indicators show that the financing situation of German
businesses has improved somewhat, the wise men noted. “The danger of a
broad-based credit crunch, thus, seems mostly gone,” they reckoned.

Yet, the government advisers also eyed risks to the domestic
recovery, noting that heterogeneous developments around the world are
keeping the global economic environment uncertain.

In the assumptions underlying their forecasts, the wise men project
that the European Central Bank will leave interest rates unchanged until
the end of 2011.

Eurozone average HICP inflation is forecast at 1.6% in 2010 and
1.4% in 2011. The ECB’s price stability goal calls for inflation of
close to but below 2%. German inflation is predicted to be 1.1% this
year and 1.4% next.

The wise men assume an oil price of around $86 per barrel until the
end of the forecasting period. The euro-dollar exchange rate is assumed
at $1.40 until the end of 2011.

The government advisers cautioned that the widening differential
between the monetary policy in the US and in the Eurozone puts upward
pressure on the euro.

Depending on the degree to which other central banks intervene in
markets to “prevent an appreciation of their currencies,” the euro could
attract investment, thus putting upward pressure on the common currency,
the wise men suggested.

“This would have negative implications especially for an
export-orientated economy such as Germany,” they underlined.

They added, though, that the likelihood for a currency war is
rather low.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: MT$$$$,M$X$$$,M$G$$$,M$$EC$,M$$CR$,MFGBU$,MFX$$$,M$$FX$]

Comments Off

1 2 3 4 5 6 7 8 9 10

About Forexlive

Founded in 2008, ForexLive.com is the premier forex trading news site offering interesting commentary, opinion and analysis for true FX trading professionals. Get the latest breaking foreign exchange trade news and current updates from active traders daily. ForexLive.com blog posts feature leading edge technical analysis charting tips, forex analysis, and currency pair trading tutorials. Find out how to take advantage of swings in global foreign exchange markets and see our real-time forex news analysis and reactions to central bank news, economic indicators and world events.

Our authors have years of experience in financial markets and provide diverse, thought-provoking updates relating to news about global macro events and the worldwide forex economic calendar, with frequently updated content that is educational for traders at all levels from beginner to novice that can help traders make better decisions about forex trading. Our forex news focuses on G10 events, macroeconomic indicators, major equities indexes, treasury and bond yields from around the world, politics as it relates to forex trading and news from the FOMC as well as global central banks in, Europe and Asia.

Learn More About The Forex Live Authors Here and Follow us on Twitter, Facebook & Google+

Top

© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.