Category: Forex News
Growing Divide Between Stability of US and European Banks
Among the 28 officially identified Systemically Important Financial Institutions (SIFIs), there is a clear divide between the relatively low leveraged US banks, and some of their European peers, which are highly leveraged. European banks are still in the process of deleveraging. They received significant help from the European Central Bank via the LTRO, and are expected
EUR/AUD Plunges to All Time Low on Non-Farm Payrolls
The US Non-Farm Payrolls have the strongest impact on pair not involving the dollar: EUR/AUD. The rise of commodity currencies and the drop of majors, especially the troubled euro, are sending EUR/AUD to 1.22 – a new all time low. The US printed superb Non-Farm Payrolls: a gain of 243K jobs, and a drop in
EUR/USD Plunges After Non-Farm Payrolls, Commodity Currencies Rally
EUR/USD plunges after the superb US Non-Farm Payrolls. The lower chances of QE3 in the US send the dollar higher against the majors, including against the yen, which sometimes acts differently. Yet with commodity currencies the story is totally different, with gains seen in AUD, CAD and NZD. The US gained 243K jobs in January,
Excellent NFP Lowers Chance for QE3
The US job market gained 243K jobs and the unemployment rate stood on 8.3% in January. Early expectations stood on a gain of around 150K jobs and a steady unemployment rate of 8.5%. So, this is a huge upside surprise, totally unexpected. Another piece of good news comes from an actual rise in the labor
Canadian Unemployment Rate Rises – USD/CAD Jumps Above Parity
Canada gained only 2300 jobs (employment change) , much less than expected. Early expectations stood on a gain of 23.3K after last month’s 17.5K gain. The unemployment rate rose from 7.5% to 7.6%. It was expected to remain at 7.5%. It’s also important to note that full time jobs actually decreased by 3.6. So the
British Economy Doing Better Than Expected, But Pound Printing Still Coming
Purchasing managers’ indices in the UK were generally better than expected and pointed to growth in January. The chances of an official recession are now lower. Nevertheless, even if Britain escapes another quarter of contraction, the QE train seems unstoppable. The numbers The most important sector is services, which was the last to be released.
US Jobless Claims at 367K – Gradual Drops Continue
US weekly unemployment claims are at 367K. Early expectations stood on 373K. The initial report for last week’s numbers stood on 377K and was now revised to 379K. The gradual positive trend continues. The four week moving average slid from 377,750 to 375,750. It will likely slide more when the 402K number will drop off the average next week. EUR/USD
Deutsche Bank More Leveraged than Lehman
A new document published by Deutsche Bank shows that in Q4 2011, the large German bank was leveraged at a ratio of 40:1 according to the International Financial Reporting Standards (IFRS). This is higher than Lehman Brothers had. Deutsche Bank is Germany’s largest bank, and the biggest foreign exchange dealer in the world. There has been significant
ADP Non-Farm Payrolls Rose by Only 170K
ADP Non-Farm Payrolls Rose by only 170K. This is an independent figure for the private sector in the US job market. Early expectations stood on a gain of 189K. Currencies aren’t getting overexcited with this small miss of predictions. ADP surprised last month with an initial report of a 325K gain in the Non-Farm Payrolls
EUR/USD Loses Channel Support – 4 Reasons
EUR/USD failed to break a line of resistance within the uptrend channel, and the downfall was sharp. It eventually lost uptrend support and is now struggling on lower ground. The never ending Greek troubles are the main reason among 4: EUR/USD tackled uptrend resistance earlier in the week but couldn’t break above this line. The