South Korean wonThe South Korean won continued its decline against the U.S. dollar today despite the other Asian stocks rebound caused by the U.S. government’s intentions to bail-out Citigroup.
The won almost renewed its decade low level, set on November 20th, and extended its monthly drop against the greenback today. The currency lost 38 percent this year and is currently the worst-performing one among the 16 most-traded world currencies.
There are speculations on the equity and Forex market that South Korea will soon enter the worst recession since 1998. The banks expect that almost half of the country’s biggest construction companies will have to search for the liquidity support this year.
USD/KRW rose from 1493.2 to 1513.0 as of 6:00 GMT today, reaching the daily maximum at 1515.5, which is slightly below the record high level of 1515.9 set on November 20th.
Friday, December 5, 2008
Yen Gains after Two Days of Losses
Japanese yenThe Japanese yen rose today against the major currencies after losing for two days as the U.S. macroeconomic reports will show the worsening of the crisis, according to the analysts’ expectations, and the investors will cut the amount of assets funded in the Japanese currency.
The yen experienced one of the worst days yesterday as the stocks surged in U.S. on the revealing of the Barack Obama’s administration’s economic team and the bail-out plan for Citigroup. The demand for the high-yielding assets rose and the yen declined more than any other currency.
The advance report for the third quarter U. S. GDP showed a decline of 0.3 percent almost a month ago. Today, the preliminary report is released and the analysts expect that the decline will be revised to 0.5 percent. The extended contraction of the world’s largest economy will surely hurt the high-yielders and benefit the Japanese yen.
On one hand, the today’s growth of the yen may be just a correction, but on the other hand the overoptimism of the last two trading days was probably just predating a deep worsening of the situation and the further yen’s gains.
USD/JPY dropped from 97.06 to 96.46 as of 8:29 GMT today. EUR/JPY declined from 125.68 to 124.29 and GBP/JPY went down from 147.42 to 145.98.
The yen experienced one of the worst days yesterday as the stocks surged in U.S. on the revealing of the Barack Obama’s administration’s economic team and the bail-out plan for Citigroup. The demand for the high-yielding assets rose and the yen declined more than any other currency.
The advance report for the third quarter U. S. GDP showed a decline of 0.3 percent almost a month ago. Today, the preliminary report is released and the analysts expect that the decline will be revised to 0.5 percent. The extended contraction of the world’s largest economy will surely hurt the high-yielders and benefit the Japanese yen.
On one hand, the today’s growth of the yen may be just a correction, but on the other hand the overoptimism of the last two trading days was probably just predating a deep worsening of the situation and the further yen’s gains.
USD/JPY dropped from 97.06 to 96.46 as of 8:29 GMT today. EUR/JPY declined from 125.68 to 124.29 and GBP/JPY went down from 147.42 to 145.98.
British Pound Declines before GDP Report
Great Britain poundThe British pound fell today against the U.S. dollar and the yen, following the three days of growth, as the traders expect the GDP report to confirm a decline of the economy today.
The traders expected that the today’s Q3 GDP report will confirm the 0.5 percent decline seen in the advance report a month ago. The report will be released today at 9:30 GMT. Although it won’t mean a recession in U.K. yet, the continuing decline in the fourth quarter will turn the year-to-year GDP change to negative.
The elevated optimism during the first two days of this week and last Friday brought the 4.9 percent growth to the pound versus the greenback. From this point of view, the today’s slight decline is just a temporal correction.
GBP/USD fell from 1.5455 to 1.5354 as of 8:36 GMT today, while GBP/JPY declined from 147.32 to 145.74.
The traders expected that the today’s Q3 GDP report will confirm the 0.5 percent decline seen in the advance report a month ago. The report will be released today at 9:30 GMT. Although it won’t mean a recession in U.K. yet, the continuing decline in the fourth quarter will turn the year-to-year GDP change to negative.
The elevated optimism during the first two days of this week and last Friday brought the 4.9 percent growth to the pound versus the greenback. From this point of view, the today’s slight decline is just a temporal correction.
GBP/USD fell from 1.5455 to 1.5354 as of 8:36 GMT today, while GBP/JPY declined from 147.32 to 145.74.
Thai Baht Declines on Political and Civil Crisis
Thai bahtThe Thai baht continued its decline against the U.S. dollar today and touched its lowest level in the last 21 months as the political protests and the civil unrest raged through the country.
The political turmoil in the country is caused by the demands of the opposition and the military leaders for the current Prime Minister Somchai Wongsawat to resign. He still rejects these demands despite the fact that the opposition has already captured the two country’s most important airports.
Analysts don’t see anything positive for the baht for as long as the situation in the country remains at such a dangerous level. And there are no signs that it will end soon, causing the baht to depreciate further.
The Thailand’s baht falls under the double pressure — the currencies of the Asian region fall because of the recession in the developed countries and the foreign capital outflow and also because of the current political crisis, which doesn’t add optimism to the investors and the currency traders.
USD/THB rose from 35.26 to 35.32 as of 10:00 GMT today after reaching as high as 35.51 during the early trading session — a level not seen since February 2007.
The political turmoil in the country is caused by the demands of the opposition and the military leaders for the current Prime Minister Somchai Wongsawat to resign. He still rejects these demands despite the fact that the opposition has already captured the two country’s most important airports.
Analysts don’t see anything positive for the baht for as long as the situation in the country remains at such a dangerous level. And there are no signs that it will end soon, causing the baht to depreciate further.
The Thailand’s baht falls under the double pressure — the currencies of the Asian region fall because of the recession in the developed countries and the foreign capital outflow and also because of the current political crisis, which doesn’t add optimism to the investors and the currency traders.
USD/THB rose from 35.26 to 35.32 as of 10:00 GMT today after reaching as high as 35.51 during the early trading session — a level not seen since February 2007.
Dollar to Post Weekly Decline against Euro
U.S. dollarThe measures proposed by the U.S. government to support the national financial system and the optimism that followed the announcement of Obama’s economic team caused the U.S. dollar to decline against the euro this week as the money risks decreased world-wide.
The U. S. dollar is currently heading for the second negative week against the euro and the British pound and for the third one against the Japanese yen. The developed and emerging countries (including China) showed commitment to continue spending their foreign reserves (denominated mainly in dollars) to boost the economy during the crisis.
The reason behind the growth of the dollar during the recent months lies in the repatriation of the investments during the liquidity crisis. The currency analysts believe that the end of this process is near and the dollar may start to depreciate as the investors will be willing to enter the emerging markets backed by the local government’s stimulus.
EUR/USD rose from 1.2899 to 1.2929 as of 7:38 GMT today to the total of 2.5 percent weekly growth. GBP/USD went up from 1.5387 to 1.5424 or 3.1 percent on the weekly scale. USD/JPY declined slightly today — from 95.33 to 95.24, while the weekly drop is currently at 0.7 percent.
The U. S. dollar is currently heading for the second negative week against the euro and the British pound and for the third one against the Japanese yen. The developed and emerging countries (including China) showed commitment to continue spending their foreign reserves (denominated mainly in dollars) to boost the economy during the crisis.
The reason behind the growth of the dollar during the recent months lies in the repatriation of the investments during the liquidity crisis. The currency analysts believe that the end of this process is near and the dollar may start to depreciate as the investors will be willing to enter the emerging markets backed by the local government’s stimulus.
EUR/USD rose from 1.2899 to 1.2929 as of 7:38 GMT today to the total of 2.5 percent weekly growth. GBP/USD went up from 1.5387 to 1.5424 or 3.1 percent on the weekly scale. USD/JPY declined slightly today — from 95.33 to 95.24, while the weekly drop is currently at 0.7 percent.
Chinese Yuan Depreciates to July’s Levels
Chinese yuan The Chinese yuan fell to the weakest level since August today as the country’s government continued to manipulate its currency before the scheduled meeting with the U. S. Treasury Secretary.
The reference rate, set by the People’s Bank of China, allows 0.5 percent deviation in the either side during the daily yuan trading session. Today the rate was set to the lowest level since August 2008 and the daily trading led the currency below that level as the traders expected further depreciation.
China’s economic growth is declining; it reached the lowest rate since 2003 as the government tried to decrease the inflation with the strong yuan in the first half of this year. Financial crisis brought another stress factor for the Chinese export-orientated economy — developed countries decreased their demand for the China-produced goods, pressing on the production growth in the country.
According to many analysts the yuan will continue its decline, directed by the People’s Bank of China, as the currency rate manipulation is seen as one of the most effective method to stimulate growth.
U.S. Treasury Secretary Henry Paulson will try to convince the Chinese officials to tolerate more freedom for the yuan’s rate during the meeting on December 4th and 5th. U. S. President-elect Barack Obama also called for a stronger and more loose yuan control. Despite the pressure from the United States, it’s unlikely that China will refrain from using its currency as an economy’s growth locomotive.
USD/CNY reference rate was set to 6.8505 today and currency pair rose from 6.8330 to 6.8802 as of 9:06 GMT today, reaching the daily high at 6.8830.
The reference rate, set by the People’s Bank of China, allows 0.5 percent deviation in the either side during the daily yuan trading session. Today the rate was set to the lowest level since August 2008 and the daily trading led the currency below that level as the traders expected further depreciation.
China’s economic growth is declining; it reached the lowest rate since 2003 as the government tried to decrease the inflation with the strong yuan in the first half of this year. Financial crisis brought another stress factor for the Chinese export-orientated economy — developed countries decreased their demand for the China-produced goods, pressing on the production growth in the country.
According to many analysts the yuan will continue its decline, directed by the People’s Bank of China, as the currency rate manipulation is seen as one of the most effective method to stimulate growth.
U.S. Treasury Secretary Henry Paulson will try to convince the Chinese officials to tolerate more freedom for the yuan’s rate during the meeting on December 4th and 5th. U. S. President-elect Barack Obama also called for a stronger and more loose yuan control. Despite the pressure from the United States, it’s unlikely that China will refrain from using its currency as an economy’s growth locomotive.
USD/CNY reference rate was set to 6.8505 today and currency pair rose from 6.8330 to 6.8802 as of 9:06 GMT today, reaching the daily high at 6.8830.
Pound Loses for Third Day Despite Correction
Great Britain poundThe U.K. pound continued to fall against the U.S. dollar and the Japanese yen today, despite the correction seen in some other dollar- and yen-based currency pairs, as the traders expect a major rate cut by the Bank of England.
Traders bet that the Bank of England will have to cut the interest rate by 100 basis points down to 2.00 percent on December 4th to protect economy from falling down even faster amidst the recession and the global financial crisis. While positive to the economy such a rate cut will definitely eliminate one of the main advantage of the British pound — its high yield.
Currency analysts believe that the pound is still viewed as the high-risk and high-yield currency and behaves according to the respective market patterns. But if the BoE’s interest rate decreases continues at the current pace, the pound may soon join the dollar and the yen in their «club» of the currencies with the rate close zero.
GBP/USD declined from 1.4886 to 1.4829 as of 10:16 GMT today. GBP/JPY dropped only slightly today — from 138.42 to 138.03, while EUR/GBP rose from 0.8473 to 0.8527.
Traders bet that the Bank of England will have to cut the interest rate by 100 basis points down to 2.00 percent on December 4th to protect economy from falling down even faster amidst the recession and the global financial crisis. While positive to the economy such a rate cut will definitely eliminate one of the main advantage of the British pound — its high yield.
Currency analysts believe that the pound is still viewed as the high-risk and high-yield currency and behaves according to the respective market patterns. But if the BoE’s interest rate decreases continues at the current pace, the pound may soon join the dollar and the yen in their «club» of the currencies with the rate close zero.
GBP/USD declined from 1.4886 to 1.4829 as of 10:16 GMT today. GBP/JPY dropped only slightly today — from 138.42 to 138.03, while EUR/GBP rose from 0.8473 to 0.8527.
Swedish Krona Near 5-Year Low on Rate Cut
Swedish kronaThe Swedish krona advanced it’s yearly low levels against the U.S. dollar today as the country’s central bank surprised the market participants with the biggest rate cut in the last 16 years to prevent the economy from contracting.
The official repo rate was reduced from 3.75 percent to 2 percent by 175 basis points today. It exceeded the traders’ expectations that were aimed on 1 percent cut. The Riksbank announced its decision today — 3 months after it has raised the interest rate to 4.75 percent.
The krona will definitely become a victim of such unexpectedly huge rate cut. Analytics believe that the Sweden’s government will have a hard time balancing between the target inflation rate and stimulating the economy growth to keep the unemployment as low as possible. The krona will have to continue its decline both against the dollar and the euro.
USD/SEK rate went up from 8.1871 to 8.3470 as of 9:53 GMT today after falling for two consecutive days before. The local maximum was set at 8.5234 on November 21 and if the currency pair goes above that level, it will set a new record high rate since August 2003.
The official repo rate was reduced from 3.75 percent to 2 percent by 175 basis points today. It exceeded the traders’ expectations that were aimed on 1 percent cut. The Riksbank announced its decision today — 3 months after it has raised the interest rate to 4.75 percent.
The krona will definitely become a victim of such unexpectedly huge rate cut. Analytics believe that the Sweden’s government will have a hard time balancing between the target inflation rate and stimulating the economy growth to keep the unemployment as low as possible. The krona will have to continue its decline both against the dollar and the euro.
USD/SEK rate went up from 8.1871 to 8.3470 as of 9:53 GMT today after falling for two consecutive days before. The local maximum was set at 8.5234 on November 21 and if the currency pair goes above that level, it will set a new record high rate since August 2003.
Russian Ruble Near 3-Year Low vs. Dollar
Russian rubleThe Russian central bank widened the trading band for the ruble today as the Russia’s main exports — crude oil and metals continued to depreciate on the global markets.
The Bank of Russia allowed the ruble to depreciate by 30 kopecks today at the beginning of the currency trading session. It was the fourth time since November 11 when the central bank allowed the ruble to decline against benchmark currency basket, which consists of 45% euro and 55% U.S. dollar.
The Urals crude oil, which is Russia’s main export commodity, fell to $39.34 per barrel yesterday — the lowest level since 2005. The Bank of Russia continues to spend the national foreign reserves to keep the currency from depreciating too fast, meanwhile, lowering its benchmark rate stepwise.
Currency analysts don’t believe that the Russian ruble may return to appreciation while the oil prices decline. The current price levels are already critical and they will certainly continue to press on the Russian currency.
USD/RUR rose from 27.820 to 28.061 as of 10:50 GMT today after reaching 28.110 — the new yearly high since February 2006. EUR/RUR went up from 35.637 to 35.799 and reached 35.920 during the trading session — the highest rate since October 8.
The Bank of Russia allowed the ruble to depreciate by 30 kopecks today at the beginning of the currency trading session. It was the fourth time since November 11 when the central bank allowed the ruble to decline against benchmark currency basket, which consists of 45% euro and 55% U.S. dollar.
The Urals crude oil, which is Russia’s main export commodity, fell to $39.34 per barrel yesterday — the lowest level since 2005. The Bank of Russia continues to spend the national foreign reserves to keep the currency from depreciating too fast, meanwhile, lowering its benchmark rate stepwise.
Currency analysts don’t believe that the Russian ruble may return to appreciation while the oil prices decline. The current price levels are already critical and they will certainly continue to press on the Russian currency.
USD/RUR rose from 27.820 to 28.061 as of 10:50 GMT today after reaching 28.110 — the new yearly high since February 2006. EUR/RUR went up from 35.637 to 35.799 and reached 35.920 during the trading session — the highest rate since October 8.
Daily Report: Dollar at Critical Point ahead of Non-Farm Payroll
Short term outlook of the dollar is at a critical point ahead of non-farm payroll today. Dollar index's sharp retreat from 87.68 argues that rebound from 84.78 might be completed and turned intraday outlook neutral for the moment. More importantly, the lack of decisive momentum is now raising the possibility that dollar index is completing a head and shoulder top formation (ls: 87.87, h: 88.46, rs: 87.68). However, we must emphasize that it's not advisable to jump ahead before the pattern is formed. Firstly, any rise above 87.68 will dampen the chance of this head and shoulder top scenario and indicate that recent up trend is still intact. Secondly, break of the neckline support at 85.38 will be be an important alert that such head and shoulder pattern has completed. While one could enter short in such case, this should not be taken as the confirmation that a medium term top is formed yet. Sustained break of 83.11 is still needed to be the confirmation. Thirdly, any strong rebound above 83.11 will argue that dollar index could indeed be just unfolding as in triangle consolidations. In any case, head and shoulders look-alikes are always tricky to trade. The non-farm payroll report to be released today could be the trigger.
Dollar Index 4 Hours Chart - Forex Newsletters, Forex Outlook, Forex Review, Forex Signal
Elsewhere, the themes in the forex markets are pretty much unchanged. Yen remains firm against dollar and in crosses. EUR/USD's consolidation continues with the support from Euro's strength in EUR/GBP which hit record high of 0.8723. Commodity currencies are mixed with clear weakness seen in the Canadian dollar as crude oil dived to as low as 43.36. AUD/USD, on the other hand, continues to trade in tight range.
Dollar Index 4 Hours Chart - Forex Newsletters, Forex Outlook, Forex Review, Forex Signal
Elsewhere, the themes in the forex markets are pretty much unchanged. Yen remains firm against dollar and in crosses. EUR/USD's consolidation continues with the support from Euro's strength in EUR/GBP which hit record high of 0.8723. Commodity currencies are mixed with clear weakness seen in the Canadian dollar as crude oil dived to as low as 43.36. AUD/USD, on the other hand, continues to trade in tight range.
Euro Session: What to Expect
The economic calendar is noticeably uneventful in European hours, with German Factory Orders the only data set to print. Expectations call for orders to lose -0.5% from the preceding month, pointing to a -11.2% decline in the year to October. This will amount to the second-worst reading ever recorded for the metric and the lowest since at least 1993. Industrial output is an important part of the Euro Zone’s largest economy, contributing over 30% to overall growth. Looking ahead, manufacturing can be expected to remain under pressure: industrial goods dominate Germany’s top export commodities and sluggish economic performance around the world is sure to trim demand. That said, some stimulus may be had from continued currency depreciation, making German goods relatively cheaper for overseas buyers. DailyFX Chief Strategist Antonio Sousa expects the Euro to continue to lose value through 2009.
Asia Session Highlights
Australia’s AiG Performance of Construction Index dropped for the ninth consecutive month in November as a sluggish economy and scarce access to lending kept consumers away from big ticket purchases. Spreading expectations that Australia will experience recession in 2009 have seen the RBA slash interest rates by a whopping 3% since early September. That said, Reserve Bank Governor Glenn Stevens noted earlier this week that the “major easing in monetary policy…together with spending measures announced by the Government and a large fall in the Australian dollar” will support demand over the year ahead (albeit, Stevens said this as the RBA cut interest rates by another full percentage point). Still, traders continue to price 15-100 basis points in easing over the next 12 months.
Key Overnight Developments
Critical Levels
The Euro corrected lower overnight to find support at 1.2732, the 38.2% Fibonacci retracement of the 300-pip intraday rally that took the pair as high as 1.2846 in New York hours. The pullback in the British Pound was more pronounced: sterling retraced 50% (1.4642) of the intraday rally to 1.4814 and then turned range-bound between this and the 38.2% Fib level (1.4683). Technical positioning points to the likelihood of a bullish correction in EURUSD and GBPUSD in the near term before broad bearish trends regain momentum.
The Euro corrected lower overnight to find support at 1.2732, the 38.2% Fibonacci retracement of the 300-pip intraday rally that took the pair as high as 1.2846 in New York hours. The pullback in the British Pound was more pronounced: sterling retraced 50% (1.4642) of the intraday rally to 1.4814 and then turned range-bound between this and the 38.2% Fib level (1.4683). Technical positioning points to the likelihood of a bullish correction in EURUSD and GBPUSD in the near term before broad bearish trends regain momentum.
Forex Traders to Look Past European Data, Focus on Non Farm Payrolls (Euro Open)
Written by Ilya Spivak, Currency Analyst
Forex traders are likely to look past a noticeably uneventful economic calendar to focus on the upcoming US Non Farm Payrolls release late into the session. German Factory Orders data is the only scheduled release, with expectations calling for a -11.2% decline in the year to October. The Euro and British Pound retraced lower in overnight trading to consolidate gains in New York hours.
US Dollar: Non-Farm Payrolls(NFPs) May Fall by the Most Since 1982
The US dollar continues to consolidate within wide ranges, but remains relatively strong across the majors. However, on Friday morning, US non-farm payrolls are anticipated to fall by a whopping 330,000, which would be the worst decline since 1982, while the unemployment rate is forecasted to reach a fresh 15-year high. Will this news trigger a sharp decline in the greenback, or will the forex market consolidation continue?
The Swiss National Bank and the franc
The Swiss National Bank and the franc
Amid the main factors distinguishing the Swiss franc from other hard currencies, is its lasting tendency to serve as a safe haven asset, representing the currency of small, albeit open economy.To access this research, assessing the role of the franc in today's fx markets while shedding light on the part of the Swiss National Bank, please see "Foreign Exchange Markets: A Practical Guide", an innovative approach to covering FX fundamental and technical analysis.
USD, JPY Drift Lower, RBA Cuts 100-bp
The dollar relinquished ground against the majors, slipping to 1.2765 versus the euro and near the 0.65-handle against the Aussie. Crude oil extended its losses amid decelerating demand as a result of the sharp slowdown in global economic growth, dropping to its lowest level in 3 ½ years to $46.82. Global equity bourses rebounded in the Tuesday session, prompting currency traders to jump back into higher-yielding currencies and sending both the greenback and the yen lower.
The Bank of Japan held an emergency policy meeting, leaving policy unchanged but moved to further alleviate tightening credit conditions, announcing it would broaden the range of collateral to accept for up to 3-months. With the BoJ’s benchmark lending rate hovering near zero, the Bank continues to explore alternative methods to jumpstart the economy.
The key highlights for the remainder of the week will be the policy decisions from the ECB and the BoE, as well as the labor report from the US on Friday. Both the ECB and BoE are anticipated to cut rates aggressively near the end of the week, with markets expecting 50-basis point rate cuts. We look for the greenback to remain buoyed heading into the end of the year and expect the recent strength in the euro and Aussie to be short-lived.
This article contains the following sections:
The Bank of Japan held an emergency policy meeting, leaving policy unchanged but moved to further alleviate tightening credit conditions, announcing it would broaden the range of collateral to accept for up to 3-months. With the BoJ’s benchmark lending rate hovering near zero, the Bank continues to explore alternative methods to jumpstart the economy.
The key highlights for the remainder of the week will be the policy decisions from the ECB and the BoE, as well as the labor report from the US on Friday. Both the ECB and BoE are anticipated to cut rates aggressively near the end of the week, with markets expecting 50-basis point rate cuts. We look for the greenback to remain buoyed heading into the end of the year and expect the recent strength in the euro and Aussie to be short-lived.
This article contains the following sections:
Tuesday, December 2, 2008
Short-Term Forex Technical Outlook: GBP/CHF
The GBPCHF plunged 750+ pips to end the previous session at 1.7953, and the pair may face increased selling pressures over the week as investors continue to curb their appetite for risk.
Currency Pair: GBP/CHFChart: 60 Min ChartsShort-Term Bias: Bearish
Analysis
The GBPCHF plunged 750+ pips to end the previous session at 1.7953, and the pair may face increased selling pressures over the week as investors continue to curb their appetite for risk. After reaching a high of 1.8976 at the beginning of November, the pair slipped to a low of 1.7436 on 11/13, and has held within the broad range over the last two weeks. Fading demands for carry trades paired with the interest differential between the Swiss franc and the British pound continues to favor a bearish outlook for the pair. Over the remainder of the trading session, we may see the pair work its way down towards yesterday’s low of 1.7855, but the divergence from the 120 SMA suggest that may see a slight retracement over the next two trading sessions. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
Currency Pair: GBP/CHFChart: 60 Min ChartsShort-Term Bias: Bearish
Analysis
The GBPCHF plunged 750+ pips to end the previous session at 1.7953, and the pair may face increased selling pressures over the week as investors continue to curb their appetite for risk. After reaching a high of 1.8976 at the beginning of November, the pair slipped to a low of 1.7436 on 11/13, and has held within the broad range over the last two weeks. Fading demands for carry trades paired with the interest differential between the Swiss franc and the British pound continues to favor a bearish outlook for the pair. Over the remainder of the trading session, we may see the pair work its way down towards yesterday’s low of 1.7855, but the divergence from the 120 SMA suggest that may see a slight retracement over the next two trading sessions. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
JPY Rallies of Safe-Haven Flows
The yen was the biggest gainer at the start of the week as safe-haven flows propped up the Japanese currency, pushing it to 138.12 against the sterling and 117.45 versus the euro. The greenback also edged higher against the majors, surging versus the pound to 1.4805 while edging up toward the 1.26-region against the euro. With revelations from the NBER that the US economy has been in a recession since December 2007, the major US stock bourses collapsed as the Dow Jones sank by 7.7%, and both the Nasdaq and S&P 500 plunging by nearly 9%. The selling accelerated following comments from both Fed Chairman Bernanke and US Treasury Secretary Paulson. Bernanke acknowledged the predicament the Fed finds itself in and expressed further pessimism over the economic outlook. He said, ¡°Although further reductions from the current federal funds target of 1% are certainly feasible, at this point the scope for using conventional interest-rate policies to support the economy is obviously limited¡±. Moreover, he expects the economy to remain weak for some time. Bernanke also suggested the Fed could purchase longer-term Treasuries or agency securities on the open market in substantial quantities in an effort to ¡°spur aggregate demand¡±. This article contains the following sections: You need to be logged in to Forexnews to view the remainder of this article. Please login with your username and password at the top left corner of the site, or Request Free username and password to receive full access.
Forex news 1
Past history indicates a relationship between the background of the US Treasury Secretary and the direction of the US dollar. Treasury chiefs who spent a considerable part of their carreer in the private sector, particularly in banking an finance, have led through a strong dollar period. For complete assessment of this relationship, please see "Foreign Exchange Markets: A Practical Guide", an innovative approach to covering FX fundamental and technical analysis.
Forex news
As the Internet operation arm of Trendsetter Financial Markets Limited, AceTrader provides 24-hour realtime forex trading recommendations and market commentaries to online traders through our website. These trading recommendations and market commentaries were originally available to institutional traders through Reuters network only. Now it's available to all individual online traders.
We provide genuine real-time forex market commentaries and trading recommendations to both Reuters and Internet users. Led by world renowned technical analyst, Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day. Wilson Leung has over 20 years of experience in forex market. He is a regular speaker at Technical Analysis seminars all over the world and has conducted over 100 such seminars with Reuters for forex traders in Asia, Continental and Eastern Europe, Scandinavia, CIS and the Middle East. Our key strengths are:
Precise RecommendationsNo-nonsense clear-cut recommendations that include specific entry, stop, target levels.
Full coverage of the marketAs long as the market is open, we're there providing insights to you.
Real-time updatesForeign exchange is a fast market, with real-time being the vital ingredient for success; analysis from an hour ago can sometimes become useless.
Multi time-frame recommendationsTo profit from the market, one needs to know the short term, medium term and long term trend. Providing intra-day, daily, weekly and medium term analysis and recommendations is our unique feature.
We provide genuine real-time forex market commentaries and trading recommendations to both Reuters and Internet users. Led by world renowned technical analyst, Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day. Wilson Leung has over 20 years of experience in forex market. He is a regular speaker at Technical Analysis seminars all over the world and has conducted over 100 such seminars with Reuters for forex traders in Asia, Continental and Eastern Europe, Scandinavia, CIS and the Middle East. Our key strengths are:
Precise RecommendationsNo-nonsense clear-cut recommendations that include specific entry, stop, target levels.
Full coverage of the marketAs long as the market is open, we're there providing insights to you.
Real-time updatesForeign exchange is a fast market, with real-time being the vital ingredient for success; analysis from an hour ago can sometimes become useless.
Multi time-frame recommendationsTo profit from the market, one needs to know the short term, medium term and long term trend. Providing intra-day, daily, weekly and medium term analysis and recommendations is our unique feature.
Thursday, November 20, 2008
Mobile Small Form Factor Processors Inspire New Designs
How did Lenovo and Apple develop laptops that fit in an envelope? Intel introduced eight small form factor processors that reduced the insides of a PC by about 60 percent while reducing power consumption.
Introducing Intel® Core™ i7 Processors
On November 17th, Intel introduced the world's fastest processor on the planet for desktop PCs and unique features such as Intel Turbo Boost Technology and Intel Hyper-threading Technology. The Core i7 processor family will ultimately scale to an 8-core chip, adding another 8 threads for 16 separate engines to handle a consumer or company's most grueling computing needs. Intel Turbo Boost technology shifts the processor into a higher gear for mind-blowing performance without a heat penalty.
8 year old boy confessed to murder
(CNN) -- The third-grader's legs dangle at times from an overstuffed chair as he answers the questions of two female police officers. His manner and voice are casual, even helpful, but his words are shocking.
Police say an 8-year-old boy confessed to murder. Legal analysts say the questioning crossed the line.
And so, legal analysts say, were the methods police used to obtain them.
By the time the boy was finished talking, say police in St. Johns, Arizona, he'd confessed to a premeditated double murder.
The 8-year-old is charged in juvenile court with killing his father, Vincent Romero, 29, along with Tim Romans, 39, a man who rented a room in Romero's home. Police have said the boy confessed to shooting the men. He has not entered a plea.
He will be allowed to leave a juvenile jail for 48 hours to spend Thanksgiving with his mother, a judge ruled Wednesday.
The furlough will start at noon November 26 and end at noon on November 28, Apache County court administrator Betty Smith told CNN.
Legal analysts who spoke with CNN were united in their opinion that the police questioning was improper and that any incriminating statements the boy made shouldn't stand up in court.
A review of the tapes shows that the boy's demeanor was more suitable for a session of show-and-tell than for a soul-baring confession as he describes the carnage he saw inside his home. He does not appear to be depressed, scared or sorrowful. Watch police interrogate the boy »
The body of his father's roommate was sprawled downstairs, he says. He ran through the house, shouting, "Daaaad! Dad!" His father was lying dead upstairs.
"There was blood all over his face, I think, and I think I touched it," he tells the officers. He showed them how he prodded his father's body with his foot, checking "to see if he was a little bit alive."
Police say an 8-year-old boy confessed to murder. Legal analysts say the questioning crossed the line.
And so, legal analysts say, were the methods police used to obtain them.
By the time the boy was finished talking, say police in St. Johns, Arizona, he'd confessed to a premeditated double murder.
The 8-year-old is charged in juvenile court with killing his father, Vincent Romero, 29, along with Tim Romans, 39, a man who rented a room in Romero's home. Police have said the boy confessed to shooting the men. He has not entered a plea.
He will be allowed to leave a juvenile jail for 48 hours to spend Thanksgiving with his mother, a judge ruled Wednesday.
The furlough will start at noon November 26 and end at noon on November 28, Apache County court administrator Betty Smith told CNN.
Legal analysts who spoke with CNN were united in their opinion that the police questioning was improper and that any incriminating statements the boy made shouldn't stand up in court.
A review of the tapes shows that the boy's demeanor was more suitable for a session of show-and-tell than for a soul-baring confession as he describes the carnage he saw inside his home. He does not appear to be depressed, scared or sorrowful. Watch police interrogate the boy »
The body of his father's roommate was sprawled downstairs, he says. He ran through the house, shouting, "Daaaad! Dad!" His father was lying dead upstairs.
"There was blood all over his face, I think, and I think I touched it," he tells the officers. He showed them how he prodded his father's body with his foot, checking "to see if he was a little bit alive."
Big Three auto CEOs flew private jets to ask for taxpayer money
CNN) -- Some lawmakers lashed out at the CEOs of the Big Three auto companies Wednesday for flying private jets to Washington to request taxpayer bailout money.
Chrysler CEO Robert Nardelli, left, and Ford CEO Alan Mulally testify on Capitol Hill on Wednesday.
"There is a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hand, saying that they're going to be trimming down and streamlining their businesses," Rep. Gary Ackerman, D-New York, told the chief executive officers of Ford, Chrysler and General Motors at a hearing of the House Financial Services Committee.
"It's almost like seeing a guy show up at the soup kitchen in high hat and tuxedo. It kind of makes you a little bit suspicious."
He added, "couldn't you all have downgraded to first class or jet-pooled or something to get here? It would have at least sent a message that you do get it."
The executives -- Alan Mulally of Ford, Robert Nardelli of Chrysler and Richard Wagoner of GM -- were seeking support for a $25 billion loan package. Later Wednesday, Senate Majority Leader Harry Reid reversed plans to hold a test vote on the measure.
An aide told CNN that Reid decided to cancel the test vote when it became clear the measure would fall well short of the 60 votes needed. Reid did, however, make a procedural move that could allow a vote on a compromise, which several senators from auto-producing states were feverishly trying to craft.
At Wednesday's hearing, Rep. Brad Sherman, D-California, pressed the private-jet issue, asking the three CEOs to "raise their hand if they flew here commercial."
Chrysler CEO Robert Nardelli, left, and Ford CEO Alan Mulally testify on Capitol Hill on Wednesday.
"There is a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hand, saying that they're going to be trimming down and streamlining their businesses," Rep. Gary Ackerman, D-New York, told the chief executive officers of Ford, Chrysler and General Motors at a hearing of the House Financial Services Committee.
"It's almost like seeing a guy show up at the soup kitchen in high hat and tuxedo. It kind of makes you a little bit suspicious."
He added, "couldn't you all have downgraded to first class or jet-pooled or something to get here? It would have at least sent a message that you do get it."
The executives -- Alan Mulally of Ford, Robert Nardelli of Chrysler and Richard Wagoner of GM -- were seeking support for a $25 billion loan package. Later Wednesday, Senate Majority Leader Harry Reid reversed plans to hold a test vote on the measure.
An aide told CNN that Reid decided to cancel the test vote when it became clear the measure would fall well short of the 60 votes needed. Reid did, however, make a procedural move that could allow a vote on a compromise, which several senators from auto-producing states were feverishly trying to craft.
At Wednesday's hearing, Rep. Brad Sherman, D-California, pressed the private-jet issue, asking the three CEOs to "raise their hand if they flew here commercial."
Sunday, November 16, 2008
'Quantum of Solace' No. 1 at box office
LOS ANGELES, California (AP) -- James Bond's quantum of the weekend box office: $70.4 million.
"Quantum of Solace" topped the previous opening-weekend record for a Bond flick.
"Quantum of Solace," with Daniel Craig returning as Bond for the first direct sequel in the spy franchise, pulled in nearly $30 million more over opening weekend than its predecessor, 2006's "Casino Royale," according to studio estimates Sunday.
The debut also topped the previous opening-weekend record for a Bond flick, $47 million for 2002's "Die Another Day."
Adjusting for inflation, Sony's "Quantum of Solace" easily drew a bigger audience than that installment, the last Bond adventure featuring Pierce Brosnan. Based on 2002 admission prices, about 8.1 million tickets were sold for "Die Another Day" in the first weekend, compared to 9.8 million for "Quantum of Solace."
Two years ago, Craig was an unknown quantity as Bond, a stage-trained actor with little action experience and a resume that tended toward small, artsier films. Many fans were unhappy with the casting choice, but the critical and commercial success of "Casino Royale" silenced the critics.
Don't Miss
EW.com: 'Quantum' stirs up a win
Craig: Being Bond is a pain
"Quantum of Solace" picks up where "Casino Royale" left off, with Bond seeking to avenge the death of his lover.
"With 'Casino Royale,' people were rediscovering the franchise in a way with Daniel Craig as James Bond," said Rory Bruer, head of distribution for Sony. "Quite frankly, they loved it. They loved the movie, and they loved him in the role, so I think by the time 'Quantum of Solace' was ready, audiences in the U.S. as well as the world audience was way ready."
"Quantum of Solace" topped the previous opening-weekend record for a Bond flick.
"Quantum of Solace," with Daniel Craig returning as Bond for the first direct sequel in the spy franchise, pulled in nearly $30 million more over opening weekend than its predecessor, 2006's "Casino Royale," according to studio estimates Sunday.
The debut also topped the previous opening-weekend record for a Bond flick, $47 million for 2002's "Die Another Day."
Adjusting for inflation, Sony's "Quantum of Solace" easily drew a bigger audience than that installment, the last Bond adventure featuring Pierce Brosnan. Based on 2002 admission prices, about 8.1 million tickets were sold for "Die Another Day" in the first weekend, compared to 9.8 million for "Quantum of Solace."
Two years ago, Craig was an unknown quantity as Bond, a stage-trained actor with little action experience and a resume that tended toward small, artsier films. Many fans were unhappy with the casting choice, but the critical and commercial success of "Casino Royale" silenced the critics.
Don't Miss
EW.com: 'Quantum' stirs up a win
Craig: Being Bond is a pain
"Quantum of Solace" picks up where "Casino Royale" left off, with Bond seeking to avenge the death of his lover.
"With 'Casino Royale,' people were rediscovering the franchise in a way with Daniel Craig as James Bond," said Rory Bruer, head of distribution for Sony. "Quite frankly, they loved it. They loved the movie, and they loved him in the role, so I think by the time 'Quantum of Solace' was ready, audiences in the U.S. as well as the world audience was way ready."
Endeavour docks with space station
(CNN) -- The international space station's three crew members Sunday welcomed aboard space shuttle Endeavour's seven astronauts, who arrived to help install more living areas and upgrade amenities.
The space station's three crew members (wearing dark blue) greet members of Endeavour's crew Sunday.
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"We understand that this house is in need of an extreme makeover, and that you're the crew to do it," station commander Mike Fincke told Endeavour's astronauts after they entered the station. "We're really glad to see you. ... Welcome to space."
The shuttle, which also brought mission specialist Sandra Magnus to replace station flight engineer Greg Chamitoff, had docked with the station just after 5 p.m. ET about 212 miles above northern India.
Two hours after the docking, the crews opened their vehicles' hatches and exchanged hugs and handshakes as Endeavour's astronauts entered the station.
"We're looking forward to working on your house and making it looking a little bit better when you're done," shuttle commander Chris Ferguson said. The greetings were shown live on NASA TV.
Chamitoff, who has been on the space station for nearly six months, greeted his ride home enthusiastically
The space station's three crew members (wearing dark blue) greet members of Endeavour's crew Sunday.
1 of 2
more photos »
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"We understand that this house is in need of an extreme makeover, and that you're the crew to do it," station commander Mike Fincke told Endeavour's astronauts after they entered the station. "We're really glad to see you. ... Welcome to space."
The shuttle, which also brought mission specialist Sandra Magnus to replace station flight engineer Greg Chamitoff, had docked with the station just after 5 p.m. ET about 212 miles above northern India.
Two hours after the docking, the crews opened their vehicles' hatches and exchanged hugs and handshakes as Endeavour's astronauts entered the station.
"We're looking forward to working on your house and making it looking a little bit better when you're done," shuttle commander Chris Ferguson said. The greetings were shown live on NASA TV.
Chamitoff, who has been on the space station for nearly six months, greeted his ride home enthusiastically
Obama and McCain set to meet in Chicago
WASHINGTON (CNN) -- Call it a meeting of the bipartisan minds.
Barack Obama and John McCain attended the 9/11 memorial service together in New York City this year.
President-elect Barack Obama will meet with former GOP presidential candidate John McCain Monday in Chicago, Illinois.
The meeting will take place at the Obama transition headquarters.
"It's well-known that they share an important belief that Americans want and deserve a more effective and efficient government, and will discuss ways to work together to make that a reality," Obama transition spokesman Nick Shapiro said in a statement Sunday.
Obama and McCain will be joined in the meeting by Sen. Lindsey Graham, R-South Carolina, and Obama's new chief of staff, Rahm Emanuel.
Meanwhile, the man who steered Obama's Senate office will now move over to the White House with the incoming president.
The Obama transition office announced Sunday that Peter Rouse, Obama's chief of staff in his Senate office, will serve as a senior adviser to the president.
Before joining Obama in December 2004, Rouse was chief of staff for 19 years to former Senate Democratic Leader Tom Daschle of South Dakota. Before that, he was chief of staff to then-Rep. Dick Durbin of Illinois.
Meanwhile, Republicans praised the prospect of Sen. Hillary Clinton becoming secretary of state. Sources told CNN on Friday that Obama has spoken about that job with Clinton and New Mexico Gov. Bill Richardson, another former rival for the presidential nomination.
Former Nixon and Ford Secretary of State Henry Kissinger said Clinton would be an "outstanding" selection, Bloomberg News reported.
GOP Sen. Jon Kyl of Arizona told Fox News: "She's got the experience; she's got the temperament for it." And California Gov. Arnold Schwarzenegger told ABC it would be a "great move."
Barack Obama and John McCain attended the 9/11 memorial service together in New York City this year.
President-elect Barack Obama will meet with former GOP presidential candidate John McCain Monday in Chicago, Illinois.
The meeting will take place at the Obama transition headquarters.
"It's well-known that they share an important belief that Americans want and deserve a more effective and efficient government, and will discuss ways to work together to make that a reality," Obama transition spokesman Nick Shapiro said in a statement Sunday.
Obama and McCain will be joined in the meeting by Sen. Lindsey Graham, R-South Carolina, and Obama's new chief of staff, Rahm Emanuel.
Meanwhile, the man who steered Obama's Senate office will now move over to the White House with the incoming president.
The Obama transition office announced Sunday that Peter Rouse, Obama's chief of staff in his Senate office, will serve as a senior adviser to the president.
Before joining Obama in December 2004, Rouse was chief of staff for 19 years to former Senate Democratic Leader Tom Daschle of South Dakota. Before that, he was chief of staff to then-Rep. Dick Durbin of Illinois.
Meanwhile, Republicans praised the prospect of Sen. Hillary Clinton becoming secretary of state. Sources told CNN on Friday that Obama has spoken about that job with Clinton and New Mexico Gov. Bill Richardson, another former rival for the presidential nomination.
Former Nixon and Ford Secretary of State Henry Kissinger said Clinton would be an "outstanding" selection, Bloomberg News reported.
GOP Sen. Jon Kyl of Arizona told Fox News: "She's got the experience; she's got the temperament for it." And California Gov. Arnold Schwarzenegger told ABC it would be a "great move."
Wednesday, November 12, 2008
How Obama should fix the economy Real people across the country answer the question: How will Obama affect your wallet? And what do you think the new
Cliff Hilton, 51, restaurant owner, Beaumont, Texas
President-elect Obama, I work 14 hours a day, seven days a week. Since I work that much, I can make a living. I employ 14 workers.
If I am to be taxed for working hard, make everyone that receives my money work as hard and as long as me. If they work seven days a week, they'll have less time to spend and want.
I live in a small apartment and drive a five-year-old car. I don't have cable TV or Internet at home. I keep the temperature at 80 degrees in the summer and never turn the heat on in the winter. My debt is a very small fraction of my net worth. I have cash to pay off my debt. I have lived a frugal life. If someone is to receive my money, they should be required to stay out of debt themselves.
I have chosen to eat good food and maintain my health. I don't take drugs of any kind. If someone is to receive my money, they should be required to maintain their health to the level of not needing health care. I worked two years before I could afford to purchase medical insurance with a $5,000 deduction. Some of my workers do not take care of themselves and want me to get them insurance for free. I could not imagine being required to do so.
I do not and will not support free public health insurance, retirement, protection, etc.
If I consider a plot of land, prepare the land (remove rocks, trees, weeds), plow the rows, plant the seeds, and pray to God for sunshine and rain, am I required to give the [harvest] to someone who never put their hands to help nor their money and health at risk for failure or success? Don't dilute my expectation. If I fail, I fail alone. No one wants to help pay for my failure. If I succeed, you should not want to take my money and give it to one who has failed.
Since you are now the President-elect, you must have worked pretty hard to get there. Others who supported you must have seen something in you that inspired them to give your campaign hard-earned money. Please do not require less from every single American that is receivingPaulson says Treasury will broaden reach to include non-bank financial firms and seek out private capital to match U.S. funds. EMAIL | PRINT | S
Paulson says Treasury will broaden reach to include non-bank financial firms and seek out private capital to match U.S. funds.
Photos
Real people across the country answer the question: How will Obama affect your wallet? And what do you think the new President and Congress needs to do to right the economy - both in the short run and the long term?
NEW YORK (CNNMoney.com) -- Treasury Secretary Henry Paulson said Wednesday that the government would broaden the reach of its $700 billion bailout plan to support non-bank financial institutions that provide consumer credit, such as credit cards and auto loans.
In this second stage of the bailout, officials also hope to attract private capital, possibly through matching investments, to give the government's injections more heft.
Paulson also said the government is no longer planning to buy troubled mortgage assets, the original goal of the plan. Therefore, it must come up with new ways to help homeowners and slow the tide of foreclosures, which it had hoped to do once it owned the troubled loans.
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