Nov 3, 2011

Forex Crunch EUR/USD Nov. 3 – Depressed by Greek Referendum Certainty

Forex Crunch EUR/USD Nov. 3 – Depressed by Greek Referendum Certainty

EUR/USD Nov. 3 – Depressed by Greek Referendum Certainty

Posted: 03 Nov 2011 05:14 AM PDT

Euro dollar is settling in a lower range after the meetings that preceded the G-20 meetings made it clear that the Greek referendum will go through on December 4th/5th. Greece’s euro-membership is on the cards. Today we have the euro-zone first rate decision by Mario Draghi and quite a few important US events.

Here's a quick update on technicals, fundamentals and what's going on in the markets.

Read the rest of the article EUR/USD Nov. 3 – Depressed by Greek Referendum Certainty

Meltdown

Posted: 03 Nov 2011 05:14 AM PDT

The significance of yesterday's events is historic.  Even before the start of the single currency, it was presented as irrevocable, with no way for a country to leave once it is a member.  That has also been part of the problem. Without the ultimate sanction of expulsion, member states have been free to ride roughshod, binging on low interest rates and easy credit.  Of course, Greece was not the only culprit.  

But yesterday, the French and German leaders recognised that the Greek referendum, even if not worded that way, was ultimately a choice of whether to remain in or leave the euro.  Whilst this is a monumental shift away from doing all they can to support Greece, there is also an air of inevitability around it.  Since the crisis started, the choice has always been a degree of fiscal integration or some sort of break-up. Germany has vehemently opposed the former, so we are now seeing the latter.

Read the rest of the article Meltdown

USD/CAD: Trading the Canadian Employment Change

Posted: 03 Nov 2011 03:15 AM PDT

The Canadian Employment Change is an important leading indicator which tends to be a market-mover. Analysts and traders closely examine this indicator together with the Unemployment Rate reading, which are released at the same time and provided critical employment data. A reading that is higher than the market forecast is bullish for the Canadian dollar.

Here are the details and 5 possible outcomes for USD/CAD.

Read the rest of the article USD/CAD: Trading the Canadian Employment Change

ECB Set to Reverse Policy? Preview

Posted: 03 Nov 2011 01:00 AM PDT

The first euro-zone rate decision under the new ECB president Mario Draghi comes at a bad timing of a slowdown in the zones’ economies. There’s a significant chance that Draghi will reverse the last rate hike of his predecessor. ECB Preview.

Jean-Claude Trichet held the helm for 8 years and proved to be very tough with the interest rate. In July 2011, Trichet raised the rate for the second time since the 2008 financial crisis erupted to 1.50%, in a decision that was heavily criticized. Draghi will likely take one step backwards.

Read the rest of the article ECB Set to Reverse Policy? Preview

Forex Daily Outlook – November 3 2011

Posted: 02 Nov 2011 03:00 PM PDT

ISM Non-Manufacturing PMI in the US and Services PMI in the UK are the main events lined up.  Let’s see what awaits us today.

G20 Meetings (Day 1), the Group of Twenty (G20) is an important global policy-making figure effective at the uppermost level, which impact the cash markets.

Read the rest of the article Forex Daily Outlook – November 3 2011

Ben Bernanke Press Conference Live Blog

Posted: 02 Nov 2011 11:05 AM PDT

Ben Bernanke spoke to the press following the recent decision by the FOMC. In the press conference he explained the decision, provided an overview of the economy and answered reporters’ questions.

Wrap up: All in all, Bernanke didn’t add a lot of news to the statement. Here are key notes, the live blog transcript follows:

Read the rest of the article Ben Bernanke Press Conference Live Blog

Fed Makes No Policy Changes – Dollar Rises

Posted: 02 Nov 2011 09:34 AM PDT

The FOMC released its statement, and it contains no changes in policy: Operation Twist will continue as planned, and the conditional commitment to keep interest rates low up to mid 2013 remained in place.

EUR/USD dropped before the release to 1.3775, within levels seen during the day. Earlier in the day it climbed and challenged resistance at 1.3838. It extends these drops after the release of the statement but doesn’t go too far. The press conference is awaited.

Read the rest of the article Fed Makes No Policy Changes – Dollar Rises

ADP Non-Farm Payrolls Gain 110K

Posted: 02 Nov 2011 05:16 AM PDT

The ADP report for the private sector has show a gain of 110K jobs in October, similar to gains seen in previous months. Early expectations stood on a gain of 102K.

EUR/USD reacts with a small rise and approaches minor resistance at 1.38. This is a classic “risk on” behavior” on a positive indicator. The moves are limited due to the European debt crisis, the small surprise and the anticipation towards the Federal Reserve meeting.

Read the rest of the article ADP Non-Farm Payrolls Gain 110K
posted by

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)