Friday, October 22, 2010
Previous session overview
The dollar fell slightly against the euro and gained slightly on the yen Thursday as positive data from China and Germany nudged investors toward embracing risk.
The euro continued its recent strong run, but gave back some gains following a better-than-expected U.S. jobless claims report for the week ended Oct. 16.
But overnight, most economic data pointed to global growth outside the U.S., luring investors to take riskier positions, said analysts.
China's gross domestic product slowed from 10.3% growth in the second quarter, but the 9.6% mark in the third quarter was slightly above the consensus forecast of 9.5% as Beijing continued to withdraw stimulus and took measures to cool sectors such as the property market.
German data showed its private sector expanded at a stronger pace in October than in September as both the manufacturing and services sectors posted a rise in activity.
The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 77.124 from 77.212.
Market expectation
The widely anticipated resumption of a bond purchasing program by the Fed which would flood the market with dollars and devalue the currency remains the strongest force guiding investors. But investors are looking at U.S. data to gauge the size of such a program.
Investors will be looking for more clues on the U.S. economic recovery and possible quantitative easing with the Philadelphia Fed survey due at 10 a.m. EDT.
In case of EURUSD further retreat, below the mentioned USD1.3975, the pair might find support at USD1.3925/30 (intra-day support) and USD1.3875 (session low). On the upside, immediate resistance lies at USD1.4050 (session high), and above here, USD1.4115/25 (Oct 14 highs) and then USD1.4155 (Oct 15 high).
Most important events of the day
| Oct 21 | Count. | Event | For | Unit | Imp. | Act. | Cons. | Prev. |
|---|---|---|---|---|---|---|---|---|
| 00:00 |  US | Federal Reserve Bank of St. Louis President Bullard speaks on "Frictions in Financial and Labour Markets" at an Economic Policy Conference |  | |||||
| 00:00 |  WLD | G-20 FinMins meet (21st-23rd Oct) | | |||||
| 00:00 | WLD | G-20 Deputy FinMins and Deputy Central Bank Governors meet | | |||||
| 02:00 |  NZ | Credit Card Statistics | Sep | % m/m (sa) | | 0.9 | 0.6 | |
| 02:00 | NZ | Westpac Consumer Confidence | Oct | index | | |||
| 02:00 | NZ | ANZ Consumer Confidence | Oct | index | | 113.6 | 116.4 | |
| 04:30 |  JP | METI All industry Activity | Aug | % m/m | | -0.4 | -0.4 | 1.1 |
| 06:58 |  FR | Flash Manufacturing PMI | Oct | index | | 55.2 | 55.5 | 56 |
| 06:58 | FR | Flash Services PMI | Oct | index | | 55.3 | 57.5 | 58.2 |
| 07:00 |  CH | SNB monthly statistical bulletin | | |||||
| 07:30 |  NL | Unemployment (sa) | Sep | % rate | | 5.3 | 5.3 | 5.3 |
| 07:30 |  DK | Consumer Sentiment | Oct | Index | | 1.8 | 2.3 | |
| 09:00 | CH | Credit Suisse ZEW Survey | Oct | Survey | | -27.5 | -5.1 | |
| 09:15 |  GB | BoE member Posen speaks at the Austrian National Bank | | |||||
| 11:45 |  EU | ECB hold non-rate setting meeting | | |||||
| 12:30 | US | Initial Claims | 16-Oct | k |  | 452 | 455 | 475 |
| 12:30 |  CA | Leading indicator | Sep | % m/m |  | -0.1 | 0.2 | 0.5 |
| 14:00 | US | Leading Indicators | Sept | % m/m | | 0.3 | 0.3 | |
| 14:00 | US | Philadelphia Fed Survey | Oct | index | | 2 | -0.7 | |
| 14:00 | EU | EC Flash Consumer Sentiment | Oct | index | | -11 | -11 | |
| 14:30 | CA | Business Outlook Future Sales | Q3 | index | | 25 |
0 comments:
Post a Comment