Dec 12, 2011

Forex Crunch A necessary but insufficient ‘compact’

Forex Crunch A necessary but insufficient ‘compact’

A necessary but insufficient ‘compact’

Posted: 12 Dec 2011 04:36 AM PST

Looking beyond the headlines with regards to the UK's (and others') participation or otherwise in the proposed changes to the EU Lisbon Treaty, the "fiscal compact" that emerged on Friday was, at the very least, a step in the right direction.  The question is whether it will be seen as enough by the rating agencies and in particular Standard & Poor's, which put much of the eurozone on review a week ago.

The need for closer fiscal and economic coordination has been recognised for a long time – it is just that leaders have always been too busy fire-fighting to do much about it. The issue we have raised continually, and which still appears to stand, is that the changes proposed do not go far enough. Much of what has been proposed is based on the pillars of the stability and growth pact, which was shown to be severely flawed. Video:

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EUR/USD Dec. 12 – Sliding Down on Fear of Bond Auctions, S&P Action

Posted: 12 Dec 2011 01:20 AM PST

Euro dollar is sliding in range in the new week. The EU Summit resulted in general ideas for preventing a future debt crisis, but didn’t address the current one. The real response will be seen in Italian and Spanish bond auctions. Also S&P is awaited: it warned all euro-zone countries and said that the outcome will be decisive for the credit rating of the zone’s nations, including AAA rated giants. Will the pair fall out of range?

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

Read the rest of the article EUR/USD Dec. 12 – Sliding Down on Fear of Bond Auctions, S&P Action

EUR/USD: Trading the German ZEW Economic Sentiment Index

Posted: 12 Dec 2011 12:17 AM PST

The German ZEW Economic Sentiment Index is based on a monthly survey of institutional investors and analysts regarding their views on the outlook for the German economy. A reading that is higher than the market forecast is bullish for the Euro.

Here are all the details, and 5 possible outcomes for EUR/USD.

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Forex Daily Outlook December 12 2011

Posted: 11 Dec 2011 02:00 PM PST

We start the week with some interesting events like Federal Budget Balance in the US and BOE Gov King Speech as the main highlight on today’s outlook. Let’s see what awaits us today.

In the US, Federal Budget Balance, measures the difference between government’s income and expenses over the past month, further reduce is expected from -98.5B on November down to -138.0B now.

Read the rest of the article Forex Daily Outlook December 12 2011

Potential Trade Set-ups For The Week Ahead (Dec 12)

Posted: 11 Dec 2011 12:27 PM PST

Hello traders! Despite some action on the FX market in the past week, provided by the ECB rate decision and EU summit most of the major pairs remained trapped in a range, sideways market. As such, we decided to take look on some FX crosses, such as Eur/Chf  and Eur/Aud for potential trade set-ups.

We will pay a very close action to Eur/Chf, which is forming a very nice clean triangle pattern from where we expect a bullish breakout in the coming week.

Read the rest of the article Potential Trade Set-ups For The Week Ahead (Dec 12)

USD/CHF Outlook Dec. 12-16

Posted: 11 Dec 2011 12:15 PM PST

The Swiss franc was up slightly against the dollar, and was at the 0.9250 level for most of the week. The upcoming week has six important indicators, and the market continues to closely watch the latest developments in the eurozone debt crisis. Here is an outlook for the Swiss events, and an updated technical analysis for USD/CHF.

Swiss economic growth slowed to its lowest level in two years in the third quarter, primarily due to declines in exports and investment, and the global debt crisis. GDP, was up only 0.2 percent in the third quarter, significantly lower than the 0.5 percent expansion in the second quarter. The ECB cut interest rates, but there was no real relief for the countries drowning in debt.

Read the rest of the article USD/CHF Outlook Dec. 12-16

AUD/USD Outlook December 12-16

Posted: 11 Dec 2011 12:06 PM PST

The Australian dollar had a roller coaster week, climbing close to 1.04 US, and then dropping near parity on the last trading day of the week, before recovering nicely. The upcoming week is quite busy in terms of economic indicators. Here is an outlook for the Australian events, and an updated technical analysis for AUD/USD.

After a sluggish 2011, the Australian economy is expected to post a respectable growth rate of  4 per cent in 2012. The news from down under is not all good however, as the debt crisis in Europe will wipe out $20 billion from expected revenue over the next four years.

Read the rest of the article AUD/USD Outlook December 12-16

GBP/USD Outlook December 12-16

Posted: 11 Dec 2011 11:54 AM PST

The British pound showed some movement against the US dollar, but ended the week close to where it started.  Highlights for the week include CPI and employment figures. Here is an outlook for the upcoming events, and an updated technical analysis for GBP/USD.

Britain's trade balance deficit fell to 7.6 billion pounds in October, which was significantly better than the  9.5 billion deficit  that was expected. This figure is bullish for the pound, which has been inching up against the dollar.

Read the rest of the article GBP/USD Outlook December 12-16
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