Forex Blog by Greg Secker

Yesterday – notes Greg Secker – the FTSE closed up 84 points at 4,631, and the Dow closed up 82 points at 9,154. In forex news, the dollar fell against the euro as the market sought higher yielding currencies.  There is increased sentiment from positive economic data and rising stocks that the world is recovering from the recession which is increasing risk appetite. The yen also fell against Australian dollar on the strength of global equities, encouraging investors to seek higher yielding assets.   In data releases today there is the CHF KOF economic barometer at 10.30am; CAD GDP and USD advance GDP at 1.30pm.

Yesterday – notes Greg Secker – the FTSE closed up 18 points at 4,547 and the Dow closed down 26 points at 9,070. In forex news the yen declined against the euro after a government report showed Japanese manufacturers boosted production for a fourth month, reducing demand for safe-haven currencies.  The euro traded near a one-month high versus the Swiss franc before a European report that may show executive and consumer confidence rose to an eight-month high, adding to signs the recession in the 16- nation region may be receding. New Zealand’s dollar fell the most in three weeks against the US dollar after the nation’s central bank kept interest rates unchanged for a second month. In data releases today the GBP Nationwide HPI figure released this morning was better than expectations at 1.3%. At 1.30pm there is the USD unemployment claims to look out for.

In forex news, the yen and the dollar rose versus the euro before a report economists said will show orders for durable goods in the U.S. fell last month, curbing demand for higher-yielding assets.
The Japanese currency also advanced due speculation domestic investors are repatriating earnings from European government bonds that mature tomorrow. The Australian dollar fell from near its highest level this year against the greenback. In major data releases today to look out for is the USD core durable orders m/m at 1.30pm and the NZD official cash rate at 10.00pm. The FTSE, writes Greg, closed yesterday down 57 points at 4,528.

The US dollar traded at seven week lows against the euro as Asian equity markets continued the global rally. Investors are focusing on higher yielding assets.  The Aussie dollar rose against the US dollar after the Reserve Bank of Australia said the nation’s economy may rebound faster then it forecast six months ago.  In data releases today to watch out for we have the GBP CBI realized sales at 11.00am. Then at 3.00pm there is the USD CB consumer confidence and for those trading later on into the evening, the NZD building consents m/m at 11.45pm. Yesterday – notes Greg Secker – the FTSE closed up 9 points at 4,586 and the Dow closed up 14 points at 9,108.

On Friday the FTSE closed up 16 points and closed at 4,576, making the 10th consecutive buyers bar on the chart. The Dow closed up 23 points at 9,093 and the S&P closed up just 3 points at 979. Both of the major US indices appear comfortable trading above their 200ema and have broken recent level of resistance. In forex news, the dollar fell further on Friday and tested seven week lows against the euro together with a drop in the yen as US company profit announcements were better then expectations, and thereby fuelling risk appetite in lieu of safety.   The euro appreciated for the second week after assessments reported that the rate of contraction in European manufacturing and service industries slowed more then forecast, in addition to a rise in German business confidence. The Canadian dollar also saw healthy rises on the back of oil price increases and the central bank statement that the nation’s recession is coming to an end. In major data releases watch out for the USD new home sales at 3.00pm.

Yesterday – notes Greg Secker – the FTSE closed up 65 points at 4,559 and the Dow closed up 187 points at 9,069 based on good earnings by a variety of companies. In forex news the euro headed for a second weekly advance against the dollar and the yen as Asian stocks extended a global equity rally, increasing the appetite for higher-yielding investments. The pound rose against the dollar before a government report that economists said will show the contraction of the U.K. economy slowed. The Aussie and Kiwi dollars also advanced after the DOW yesterday exceeded 9,000 for the first time since January.  In data releases today, at 9.00am for the Euro the German Ifo business climate is released. At 9.30am there is the GBP prelim GDP and then at 3.30pm USD Fed Chairman Bernanke testifies.

Yesterday – notes Greg Secker – the FTSE closed up 65 points at 4,559 and the Dow closed up 187 points at 9,069 based on good earnings by a variety of companies. In forex news the euro headed for a second weekly advance against the dollar and the yen as Asian stocks extended a global equity rally, increasing the appetite for higher-yielding investments. The pound rose against the dollar before a government report that economists said will show the contraction of the U.K. economy slowed. The Aussie and Kiwi dollars also advanced after the DOW yesterday exceeded 9,000 for the first time since January.  In data releases today, at 9.00am for the Euro the German Ifo business climate is released. At 9.30am there is the GBP prelim GDP and then at 3.30pm USD Fed Chairman Bernanke testifies.

Yesterday – notes Greg Secker – the FTSE closed up 12 points at 4,493 and gained resistance on the key level of 4,500. The Dow closed down 34 points at 8,881. In forex news the yen weakened against the euro after 3 days of rises as investors chased higher yielding assets.  The benchmark interest rate is 0.1% in Japan compared to 2.5% in New Zealand and 3.0% in Australia.  Risk appetite has been fuelled by the eight day of rises in equities.  In data releases today there is the GBP retail sales figure at 9.30am. USD unemployment claims at 1.30pm and then existing home sales at 3.00pm.  At 3.30pm there is the CAD BOC monetary policy report.

Yesterday – notes Greg Secker – the FTSE closed up 37 points at 4,481 and the Dow closed up 67 points at 8,916. In forex news, the yen and the dollar strengthened for a second day against the euro on concern the recovery of the global banking industry from the financial turmoil will be delayed, boosting demand for safer assets. The Aussie and Kiwi dollars dropped for the first time in three days against the greenback after Fed Chairman Bernanke said financial markets remained “stressed,” spurring demand for safer assets. In data releases today watch out for the MPC minutes at 9.30am that could impact GBP. At 1.30pm we have CAD retails sales and then at 3.00pm exercise caution as Fed Chairman Bernanke testifies.

Yesterday – notes Greg Secker – the FTSE closed up 54 points at 4,443 and the Dow closed up 103 points at 8,848. In forex news the yen and dollar rose the most against higher-yielding currencies such as the Australian and New Zealand dollars after Fed Chairman Bernanke signalled the central bank may eventually have to withdraw its expansionary policy to prevent inflation. In data releases to watch out for today today we have the CAD official cash statement at 2.00pm and at 3.00pm Fed Chairman Bernanke speaks.