forex news analysis

[FXtrading]

Housing Data Drags USD Lower
by Korman Tam

Trading in the currency market was mixed in the Wednesday session, with the greenback holding steady near recent levels against the majors. The dollar recovered in the afternoon versus the euro to hover beneath the 1.42-level while bouncing away from the 2.04-mark. Another bout of disappointing US economic data prompted renewed selling in the currency, pushing the dollar to a two-week low versus the yen at 116.20.

The data releases this morning included key gauges on inflation and the housing market. The September consumer price index was largely inline with expectations. The core CPI figure was unchanged at 0.2% m/m and 2.1% y/y. The headline inflation figure edged up to 0.3% m/m, compared with a 0.1% decline and 2.8% y/y. More importantly, were the release of sharply worse than anticipated housing starts data, which plunged by 10.2%, versus a 2.6% decline from August to 1.191 million units. The report provides no reprieve for rapidly deteriorating conditions in the housing market.

The Fed's Beige Book, however, provided little clues into the FOMC's policy decision at the end of the month. The Beige Book noted improved economic activity in early October, albeit at a decelerated pace since August. It remained upbeat on consumer spending, but acknowledged continued weakening in the housing markets. On inflation, the Fed said prices increased, in part due to the dollar decline. ( More.. )

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[FXtrading]

please provide feed back

[FXtrading]

I will be posting every new article that they issue

[FXtrading]

long term invesment, you get rid of the dollar.


short term, wait till the dollar takes a hit and then sell the base currency for a quick profit.


easy tips

[FXtrading]

JPY Buoyed Ahead of G7
by Korman Tam
10/19/2007 2:35:00 PM
The yen rallied across the board in the Friday session amid a slide in global equities, pushing the sterling beneath the 235-level and the euro under the 164-mark. The greenback, which initially tumbled against the euro and sterling, recovered amid profit taking heading into this weekend's G7 Finance Ministers meeting. We're not anticipating the G7 communiqué to single out dollar weakness, but do expect increased pressure on China to hasten currency flexibility. It will be important to focus closely on post-meeting commentary from Eurozone officials as there will be scope for criticism of recent euro strength impeding on trade competitiveness.

UK's Finance Minister Alistair Darling said that while there was a mix of views among the G7 on exchange rates, he reiterated that forex levels should be determined by markets. Meanwhile, Canada's Finance Minister Flaherty said he would not be surprised to see stronger language in the communiqué on China's foreign exchange policy. Further, he expects vigorous discussion on the topic at the meeting. We look for the yen to remain buoyed heading into the meeting, given the currency's characteristic to trade as a proxy to China's yuan.

The dollar's near-term direction will likely remain linked to sentiment over upcoming Fed policy decisions. Earlier in the session, Fed Funds futures were pricing in a 98% chance of a rate cut at the end of the month, up from over 70% yesterday and just over 30% a week earlier. Recent economic data continues to point towards further deterioration in the housing market, but have yet to reveal any spillover effects on the consumer. Next week's US economic calendar is light but will provide additional gauges on the housing market, with the releases consisting of existing home sales, new home sales, durable goods orders and weekly jobless claims.

Fed Chairman Bernanke said central bank predictability was important in making long-term rates respond to Fed actions. He reiterated that central banks should strive for transparency, predictability and avoid overreactions. However, he provided little insight into the FOMC's policy deliberations in the coming weeks.( More.. )

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[سمير صيام]

اخى الكريم
بارك الله فيك
الفت نظرك لامرين الاول ان اغلب الاعضاء لا يعرفوا انجليزى فلو تستطيع وضع ترجمتها يبىق جزاك الله خير
الامر التانى لا داعى لفتح موضوع جديد لكل تقرير واسمح لى بدمج كل المواضيع مع بعضها

تقبل ودى

[FXtrading]

I will do my best next time

[FXtrading]

من فضلك ، اتفضل.