FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Mar. 13, 2010 (Allthingsforex.com) – In the week ahead, traders around the world will focus on the outcome of the monetary policy meeting of the Federal Open Markets Committee for clues of the Fed’s outlook on the economy, monetary policy and interest rates that could serve as the catalysts driving the future direction for equities, currencies and commodities. In preparation for the new trading week, here is a quick look at the most important economic events that every currency trader should

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

The day's economic data was mixed, the volume was light and the market was directionless. According to our sources on the CME floor, most of the locals had left for the day by mid-session and this made for extremely quiet market conditions. The S&P has never settled higher 11 days in a row (cash or futures) but came close to doing so today. The cash S&P 500 index settled down a quarter, just under positive territory. The June futures contract traded sideways into the close but

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Forex traders, join the daily All Things Forex broadcast- a live one hour program covering Forex and major economic events, trend developments, research, analysis, ideas, education, live traders forum, interviews with some of the most respected names in the trading world, and much more.. In the broadcast today: Why USD & JPY will be the Currencies to Watch Next Week? In preparation for a trading week filled with important economic data and events, we make the case for why the USD and the

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

What’s more important: A jump in retail sales data that you’d have bet the bank would decline amid February’s winter snowstorms, or the proposed appointment of a dove as number two at the Fed? With the dollar apparently weakening ahead of the report on rumors that San Francisco Fed President would be nominated as vice chairman to Ben Bernanke, investors began to wonder if ever short term interest rates will rise. Ms. Yellen is a firm proponent of a “lower for longer� approach to monetary

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Key News LONDON, March 12 (Reuters) - World oil demand this year will be slightly higher than previously expected, the International Energy Agency (IEA) said on Friday, because of growth in developing countries. The agency lifted its absolute demand estimates for 2009 and 2010 by 70,000 barrels per day (bpd) from its estimate in February. It now expects world demand to average 86.57 million bpd this year. TORONTO, March 12 (Reuters) - Canada's unemployment rate fell to 8.2 percent in February

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Overview Improbably tiny ranges for many instruments this week, especially stock indices where for example the Dow Jones Industrial Average held within just 130 points. This effect was seen across the board and while there is nothing about this in textbooks candle theory hints that this is probably due to low volume and is symptomatic of a market that has lost its way and/or is gathering energy for the next move. Again a handful of indices posted new highs for this year, FTSE100, Helsinki,

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

The U.S. economy released its retail sales showing that they surpassed estimates, yet the dollar is declining as a result of anticipations that the Federal Reserve Bank will leave interest rates near zero throughout most of this year, therefore discouraging investors to buy the dollar. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently traded at 79.90 while recording a high of 80.32 and a low of 79.68.  There are anticipations in the markets

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

FX Highlights The USD and JPY are trading lower pressured by improving risk appetite as equity markets rally and in reaction to a Nikkei report that the BOJ may double the size of its quantitative ease, European currencies firm in cross trade to the JPY, EUR supported by report of a possible French/German $55bln rescue plan for Greece, GBP supported by report of a jump in UK house prices, USD was also pressured by report that President Obama will nominate Janet Yellen as vice chair of the

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

The U.S. dollar slipped against a basket of major currencies on Friday ahead of U.S. retail sales and confidence reports. Retail sales are expected to show decline in February, while Michigan confidence to show improvement. The dollar index plunged today to 79.80 from the day's opening at 80.25 after breaching strong support at 80.07 which may open the door for further decline till getting support at 78.80. With regard to the euro-dollar pair, it is inclining on the daily charts with upside

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Headlines Currencies: Czech GDP revised sharply upwards Fixed Income: Polish dovish talk continues Czech Republic The Czech koruna outperformed other regional currencies, notably the zloty, as the Czech statistical office revised GDP figures. The Statistical Office revised its GDP growth figure for the fourth quarter of last year from a preliminary quarter-on-quarter negative growth rate of 0.6% to a positive 0.7%. The statistics bureau delayed the announcement by five hours so it could

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

London, 12 March 2010 - The precious complex remained in a volatile mood Thursday as gold led the sector lower initially; as Chinese inflation data triggered speculation the People’s Bank may soon take further steps to cool the nation’s rapid expansion, before recovering later in the day as the PGM’s rallied. But, despite the firmer finish in precious metals and also in base following a further tremor in Chile the overall tone in commodities was negative with the CRB Index closing down almost

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Previous session overview The yen fell against the dollar and euro in Asia Friday as Japanese Prime Minister Yukio Hatoyama's comments favoring a weaker yen prompted non-Japanese players to sell the currency. Growing expectations for further monetary easing by the Bank of Japan also weighed on the Japanese currency, dealers said. While many market players didn't interpret his remarks as a signal of imminent dollar-buying intervention, the comment sparked yen-selling by non-Japanese players,

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

FX crosses remain range-bound Fears over UK debt levels and the election keep sterling low US retail sales and Canadian unemployment rate due today It was yet again a quiet day on the markets yesterday. The data calendar is unusually quiet this week and has left traders lost without data to influence their decisions. The dearth of noise we have seen currencies trade within their most recent ranges (GBPEUR - 1.0950 to 1.11, GBPUSD - 1.4870 to 1.5030 and EURUSD - 1.3630 to 1.3750). Hopefully the

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Market Brief New Zealand Jan retail sales m/m 0.8% vs. 0.5% exp, y/y 2.3% vs. 3.6% exp, ex-autos 0.3% m/m vs. 0.9% exp. New Zealand Feb median house prices unch m/m, 6.1% y/y, sales 37.2% and -3.8%, residential house price index 0.4% m/m According to Bloomberg US President Obama is to nominate SF Fed President Yellen to be FOMC ViceChair Japanese Prime Minister Hatoyama states will respond to yen rise if not reflecting fundamentals and that the BoJ and government must work together BoJ lis

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Overnight News Asia: JGB futures edged down as Tokyo’s Nikkei stock average (+0.8%) hit a seven-week high, while the yield curve flattened slightly with superlong yields dipping after a well-received US 30-year bond sale. JGBs were trading at 138.87 (-0.28) at 0618 GMT. In economic data of note, Japan Industrial Production (Jan F) M/M 2.7% vs. Prev. 2.5%; Y/Y 18.5% vs. Prev. 18.2%.Nikkei rose, with exporters helped by speculation that the JPY may weaken if the Bank of Japan takes additional

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

News and views Risk markets took a breather last night. US equities fell at the open, but then rebounded, as they digested the earlier China infl ation report which raised the prospect of tightening there, as well as the US trade report showing imports fell. The S&P500 is down 0.1% currently. European equities earlier also lost ground, the Eurostoxx down 0.5%. The CRB commodities index fell 0.5%, weakness mainly in the softs. US treasuries drifted a few bp higher until the 30yr auction

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

The US dollar remains largely range bound against a basket of currencies despite weaker than expected economic data. The Commerce Department said the nation’s trade gap shrank 6.6% to $37.3 billion in January as oil imports fell to their lowest since February 1999. Data from the Labor Department indicated initial claims for state unemployment benefits slipped 6,000 to 462,000 last week. The market is a touch more volatile today as investors’ appetite for risk interchanges. Also weighing on the

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

The euro and the pound consolidated against the dollar in today's Asian session, after they gained yesterday, while the yen fell slightly. The USDIX that tracks the dollar's strength against a basket of major currencies is trading between a high of 80.32 and a low of 80.20, while the index is currently trading around 80.25. The euro dollar pair is trading between the 1.3710 levels and 1.3650 levels recording a high of 1.3696 and a low of 1.3669, having the union currency trading around 1.3695.

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Although commodities initially plunged amid concerns over rate hike in China, prices managed to recover in NY session. However, probably dragged by static stock market movement, energy prices traded generally within a tight range. WTI crude oil price ended the day flat at 82.11. Recent price movement suggests that the trading range of the front -month contract has shifted up to 75-84 from 70-80, reflecting positive demand expectations from the market. We did not find much industry-specific

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

The dollar weakened slightly against the Euro and others after US data painted a mixed picture of the economic recovery. The trade deficit shrank but exports and imports both fell, while jobless claims showed a second week of declines. Trading was mostly choppy, with major pairs staying well within their recent well-worn ranges.

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

3/11/2010 4:30 am: EUR/$..1.3651 $/JPY..90.46 GBP/$..1.5003 $/CHF..1.0696 AUD/$..0.9164 $/CAD..1.0260 China Recovery Heats Up Asian markets were mixed today as more data out of China suggests the economy may be 'overheating,' fueling concerns that the government may begin scaling back stimulus measures. With better than expected reports on GDP, CGPI, and inflation, investors fear increasing pressures for the government to slow growth by possibly raising reserve requirements for the third time

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

EURO The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.3620 level and was capped around the $1.3685 level.  There are ongoing themes that are driving trading flows now.  First, Greece’s fiscal problems continue to plague the common currency.  Greece continues to assert that it will not require financial assistance to manage its mountain of maturing debts.  If a bailout is required, the most likely candidates include

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Euro was able to stage a technical recovery during the day EUR/USD The Euro again dipped to test support below 1.3550 against the dollar on Wednesday and the US currency was also unable to sustain a break below this level for the second day. The Euro was able to stage a technical recovery during the day, bolstered by the ability to hold support and there was also some easing of tensions surrounding the Greek debt situation. The Euro pushed to highs above 1.3650 during the New York session as

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Dollar declines as trade balance signal easing recovery   Despite the narrowed deficit witnessed in the Trade Balance report for the world’s leading economy, coming in at -$37.3 billion from the previous deficit of -$39.9 investors focused on the slump witnessed in U.S exports thus signaling that global recovery might stall as demand around the globe is still weak. In addition, the labor sector in the U.S provided the market with mixed signals where the jobless claims dipped slightly from

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Forex traders, join the daily All Things Forex broadcast- a live one hour program covering Forex and major economic events, trend developments, research, analysis, ideas, education, live traders forum, interviews with some of the most respected names in the trading world, and much more.. In the broadcast today: The CFTC Proposal, the Fed and the USD Outlook. With the CFTC proposal for additional regulation of retail Foreign Exchange trading still heavy on the minds of Forex traders and

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Ahead of another heavy U.S. Treasury auction, with today the turn of the 30-year maturity, dealers have sold bonds ahead of time bowing to slightly more favorable economic data. Strong industrial production, retail sales and bank lending data emerging overnight from the Chinese economy coupled to a report indicating a rise in its inflationary pressures, also helped pressure global bond prices lower in turn lifting yields. The distant stench of a possible Greek sovereign debt default also

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

FX Highlights The USD is trading mixed to lower as a temporary boost from report of a surprise rise in China's inflation and strong Chinese industrial production and retail sales data fades, strong Chinese economic data raises the risk of earlier rate hike from China and stocks drifted lower save for the Nikkei, the Chinese economic data dampened risk appetite, JPY is trading lower pressured by report of a downward revision in Japan's Q4 GDP and BOJ ease speculation, GBP gains in reaction to a

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Key News • China Inflation, Production Accelerate, Adding Pressure for Stimulus Exit (Bloomberg) • Greece Paralyzed by Strikes as Unions Protest Against Plan to Cut Deficit (Bloomberg) • LONDON, March 11 (Reuters) - Britons' expectations for inflation over the next 12 months rose slightly to 2.5 percent in February from 2.4 percent in November, a quarterly survey from the Bank of England showed on Thursday. • ZURICH, March 11 (Reuters) - The Swiss National Bank will likely leave interest rates

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

As the stock markets are declining from the continued pessimism in the markets therefore causing investors to sell higher-yielding assets and buying lower yielding assets which therefore boosts the dollar in markets, as currently we see the dollar rising. The Dollar Index, which measures strength of the dollar versus six major currencies, is currently traded at 80.46 while recording a high of 80.56 and a low of 80.23.  The euro zone today released its March Monthly Report not mentioning

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Currency markets are tranquil today where movements are in narrow range ahead of the release of jobless claims and trade balance in the US. Markets, yet there was movement during the Asian session where the yen strengthened against majors after a Chinese report showed that inflation rose to the highest in 16 months, which may prompt the Chinese central bank to unwind stimulus measures faster than expected. However, currently major pairs are consolidating except the pound that advanced against

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Overnight News Asia: JGB’s were trading down 23 ticks to 139.15 at 0623 GMT reversing two days of gains as the Nikkei rose 1%. In other news, Japan government is to upgrade its economic view for the first time in 8 months. (Nikkei) In terms of economic data, Japan GDP Annualised (Q4 F) Y/Y 3.8% vs. Exp. 4.0% (Prev. 4.6%) (BBG) In other news, China is not witnessing inflationary pressure yet, deputy central bank governor Su Ning said. (RTRS) China Producer Price Index (Feb) Y/Y 5.4% vs. Exp.

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

London, 11 March 2010 - A combination of stale speculative and technical selling pressured gold to its lowest in over a week Wednesday, dragging the rest of the complex lower. In contrast risk appetite underpinned equities and kept the dollar under pressure as the Euro gained 0.35% against the greenback and 0.9% versus the Yen. The Euro was also lifted after Romano Prodi, former European Commission President, said the worst of Greece's financial crisis was over and that other European nations

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Overnight data released in China showed better than expected growth in factory output, and consumer inflation rose to a sixteen month high. CPI rose to 2.7% in February. This has raised concerns that the Chinese central bank may increase monetary tightening, and possibly raise interest rates. There is a school of thought that gradual tightening may not be enough to curb the robust growth levels. Eyes will now turn to the USD to see how it reacts. Market News The rate of unemployment rose to

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Headlines Currencies: Czech GDP should be revised upwards Fixed Income: Polish governor speaks against strong zloty Czech Republic The Czech koruna gained slightly on modestly improving sentiment on the global equity markets. The pair touched 25.52 EUR/CZK without any significant domestic impetus on the table. Today the Czech GDP should be revised upwards. We expect the positive developments in the inventory cycle and export recovery to offset weaker domestic demand. Nevertheless we are

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Previous session overview The yen rose against the dollar and euro, bouncing back from Thursday's disappointing Japanese economic-growth revision, after Chinese economic data raised investors' concerns that interest rates would rise. China's February consumer-price index accelerated from the year-earlier month, to a greater-than-expected pace of 2.7%. Fixed-asset investment, bank lending and industrial-production data also beat most expectations. The greenback weakened against its Japanese

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Manufacturing output falls unexpectedly Fears over exports continue RBNZ keep rates at 2.5% It never rains, it pours in currency land for sterling at the moment with yesterday seeing yet more weak data published and dragging the pound lower. The manufacturing sector had been one of the few bright spots on the UK data scene in 2010 with strong Purchasing Manager Indices and good confidence levels. Yesterday’s news that output had dipped by 0.9% when the market had expected a 0.2% rise kicked

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

The seizing of financial markets that followed Lehman Brothers’ failure caused the global economy to fall into its deepest recession in decades. By the spring of 2009 industrial production (IP) in the 30 countries that comprise the Organisation for Economic Cooperation and Development (OECD) had plunged more than 15 percent from year-earlier levels (Figure 1). Incredibly, it could have been far worse. The governments of the world’s major countries averted catastrophe at the height of the

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

Market Brief Japan’s Tsumura sees signs of self-sustained recovery in domestic demand. Japan’s Hirano was more pessimistic; saying economy still in severe state despite positive growth Japan Q4 GDP was revised to +0.9% q/q, +3.8% annualized (1.0%/4.0% expected, 1.1%/4.6% prior) Reports that the China Statistics Bureau sees mild inflation in the coming year, but no signs of overheating. China CPI (Feb) +2.7% y/y, PPI +5.4%, +2.3% and +5.2% eyed, +1.2% and +0.4% m/m. China industrial production

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

News and views Equities are modestly fi rmer, currencies little changed, and commodities are lower. US wholesale inventories fell, but the equity market focused more on the detail which said companies’ sales rose. The S&P500 is up 0.4%, just shy of its one year high (set in Jan) and banks are 2.1% higher. The CRB commodities index is down 0.4% (oil a notable exception at +0.1%), copper -1.4%, and gold -1.3%. US treasuries are 2-3bp higher in yield, but were even weaker prior to the 10yr

FXstreet.com: Fundamental: Fundamental Market View
FXstreet.com: Market View. Have access to the latest market reports that will help you in your trading decisions.

The US dollar weakened against most major currencies except for the British pound. After a growth spurt at the end of 2009, speculation that the US economy will slow in the months ahead and keep the Federal Reserve from raising borrowing costs until Q4 pushed the dollar down. Data from the Mortgage Bankers Association reported its seasonally adjusted index of mortgage applications increased 0.5% last week. The euro recouped some of its losses seen yesterday after stronger than expected