FOREX NEWS | CURRENCY NEWS BY FOREXLIVE

China ForMin: Important to implement G20 consensus to ensure ample IMF funds to cope with crisis

Meanwhile elsewhere

Japanese govt official:

• Japan has not made any commitment regarding contribution to IMF’s new fund raising
• Japan will consider suport for Europe’s efforts to stabilise markets, inc via bilateral loans to IMF

Slow growth, shrinking trade surplus, dollar demand will slow yuan’s rise – China Center for forecasting science

Shock horror, who would have thunk it…..

• Yuan will rise about 3% in 2012

EU Greece task force’s Reichenbach: Sees some progress in implementation of structural funds

• Clear that the Greeks have sacrificed much and demonstrations are not surprising
• Credit crunch is such that it could bring problems for companies in Greece
• Don’t expect miracles in Greece

 

ECB’s Asmussen: Monetary policy cannot be overburdened, responsibility for fighting debt crisis with government

• ECB’s bond buying programme cannot last forever
• No inflation risk from bond buying programme
• ECB has many unconventional measures at its disposal like liquidity measures
• ECB’s extraordinary measures are only temporary solutions
• We’re supporting strenghtening of ESM and it should be activated as soon as possible
• ESM has many advantages over EFSF
• Basic set-up of ESM is considerably more stable and better than EFSF
• All members of ESM and not only Germany should be ready to contribute more capital to ESM
• We need stable and high firewalls in ESM
• A lot more needs to happen in Greece, both fiscal side and structural reforms
• Fiscal compact is a first, cautious step towards a fiscal union
• Fiscal union has to be quickly implemented without any watering down (yer good luck with that one)

Reuters reporting,

European stocks seen opening firmer

Financial bookies see FTSE opening up around +0.2%, DAX up around +0.7% and CAC 40 up around +0.8%.

Ideas Corner/January 19th

Got any ideas you’d like to share with your fellow readers, then here’s where to stick ‘em.

ForexLive Asian market wrap: AUD and NZD fall on jobs, CPI respectively

• New Zealand Q4 CPI -0.3% QoQ, +0.4% expected
• Australian economy loses over 29,000 jobs, +10,000 expected; participation rate slipped to 65.2% thereby keeping the unemployment rate steady at 5.2%
• Fears rise over fate of two big European banks
• Brazil lowers interest rates by 50bps to 10.50%
• UK consumer confidence dips again, now near record lows
• Japanese press: Nowotny expresses tolerance for EUR fall
• China considers relaxing capital control rules for banks
• Oil prices rises 1% as stockpiles fall, contrary to expectations
• Regional stockmarkets +1% on average; Gold $1664/oz

Fairly quiet session compared with earlier in the week. The NZD and AUD fell after economic data and the EUR/USD tried and failed to take out an important resistance level.

NZD/USD was the first mover, falling sharply from .8070 to .8020 on the release of much lower than expected CPI data which will have many analysts reassessing their rate expectations. AUD/USD traded quietly during this phase but also fell sharply, from 1.0430 to 1.0380, after the release of jobs data which was worse than expected but not as bad as the headline number might suggest. This is because part-time work was replaced by full-time. Ranges: 1.0378/1.0437

EUR/USD traded quietly near its 1.2860 NY closing level for much of the morning. It tried the downside after the Aussie jobs data but rebounded quickly. An attempt to take out large stops above 1.2880 failed in afternoon trade, after the buyers ran into very solid corporate selling interest. Ranges: 1.2840/78

Cable 1.5421/45; USD/JPY 76.70/84; EUR/CHF 1.2070/85

Stops = stop-loss orders

If you’re going to spend some time and money in the FX market, then it’s advisable to get used to the lingo. ‘Stops’ are stop-loss orders and if there are stops above the market, that obviously means that there are stop-loss buy orders above the market; stops below the present spot rate implies stop-loss sell orders.

For other useful lingo please use the Forex Jargon link at the top of the page.

EUR/USD: Stops sitting just above 1.2880

An investment bank now tells me that there are large stops directly above 1.2880. I’m guessing that they are already long in anticipation The corporate offers were very solid and have rebuffed the raiders so far.

EUR/USD: Corporate sellers noted near 1.2875

Dealers report some solid corporate selling interest near 1.2875. Last week’s high was at 1.2878. Large trailing stops are expected to sit right above 1.2900.