Forex Signals » Economic

ZEW Report Gouges Swiss Economic Outlook

admin — Fri, 26 Aug 2011 03:12:10 +0000

Source: ForexYard

The Swiss economy has outperformed most of its regional neighbors and its currency, the franc (CHF), has undergone a meteoric rise over the past two years. Rumblings from within Switzerland, however, seem to show an economy teetering on the brink of a downturn.

The Swiss National Bank (SNB) recently debated ways to curb the franc’s rising strength, to no avail. Traders now see reports being published which show the Swiss economy getting gouged by their currency’s penalizing strength and appeal. The ZEW report from this morning was the latest in a series of data which showed Switzerland’s economy taking a beating. How much longer can the SNB hold out before it moves against the crushing weight of its own currency?

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2011 Jackson Hole Economic Policy Symposium: The Facts

admin — Mon, 22 Aug 2011 03:14:58 +0000

The key event in central banking, and certainly the mind of the markets, for this week will be Ben Bernanke’s “Jackson Hole speech” scheduled to take place Friday the 26th of August at 10am ET. The regular event is where US Federal Reserve Chairman, Ben Bernanke, in 2010 introduced the idea of a second round of quantitative easing (aka QE2). Naturally this has driven a lot of speculation about what he may say this time; certainly if nothing else, it will provide an insight into what the FOMC (Federal Open Market Committee) is thinking about the US economy, and how it is factoring that into its policy making. Listed below are some of the key facts that have been released on the 2011 symposium so far:

What: Economic Policy Symposium

Where: Jackson Lake Lodge, Jackson Hole, Wyoming, USA

When: Ben Bernanke will speak at 10am ET on Friday the 26th of August (the Symposium runs from 25th-27th of August)

Who is attending: Central Bankers, Finance Ministers, Academics, Financial Market Participants (see 2010 attendance list)

What is the theme: The theme has not been released yet, there will likely be due emphasis on sovereign debt and alternative policy tools

When is the next FOMC meeting: 20 September 2011 (the 9th of August FOMC meeting minutes are scheduled for release on the 30th of August)

The History of Jackson Hole:

“Each year since 1978, the Federal Reserve Bank of Kansas City has sponsored a symposium on an important economic issue facing the U.S. and world economies. Symposium participants include prominent central bankers, finance ministers, academics, and financial market participants from around the world. The participants convene to discuss the economic issues, implications, and policy options pertaining to the symposium topic. The symposium proceedings include papers, commentary, and discussion.”

www.CentralBankNews.info

Hearing a Lot of Bad Economic News? Ignore It

admin — Mon, 01 Aug 2011 00:02:39 +0000

Lindsay Lohan: An Economic Indicator?

admin — Fri, 08 Jul 2011 23:59:08 +0000

Stocks: Losing streak meets economic reports

admin — Mon, 13 Jun 2011 00:20:35 +0000

Happy 2nd Birthday, U.S. Economic Recovery!

admin — Mon, 30 May 2011 00:02:18 +0000

Stock Market Videos: Markets Spike Then Fall On Economic Worries

admin — Tue, 17 May 2011 03:22:05 +0000

The markets started the day lower and rallied sharply higher as the Dollar fell. However, continued fear over Europe and the global economy has sent many buyers into hiding.

CAD Lower as Canadian Economic Data Flat this Week

admin — Fri, 13 May 2011 03:14:49 +0000

Source: ForexYard

The Canadian dollar (CAD) has been stagnating this week with much of the economic news out of Canada appearing flat. Today’s New House Price Index (NHPI) released by Statistics Canada, as an example, revealed 0% growth in the price of new homes purchased this past month by Canadians.

The data did not represent market contraction, per se, but rather a slowing down, or stagnation. The CAD was hard-pressed to make gains following this week’s reports, with the USD/CAD moving from its recent low of 0.9440 to its current price near 0.9650. Safe haven currencies like the Japanese yen (JPY) also made gains this past week, with the CAD/JPY moving to 83.80 from a recent high of 89.50.

Monday’s housing starts figure was below expectations, but not enough to warrant a rapid sell-off for Canada’s currency. Yesterday’s trade balance figures out of Canada also revealed not shrinkage, but stability. The C$0.6B growth in the northern giant’s surplus was not enough to awe investors and generate a buy-in for the Loonie.

Overall, Canada is not in a bad spot economically. It has undergone a wave of growth unmatched in most other countries and its job sector is in good shape. This past week’s short period of stagnation represents either a slow-down in line with a global faltering among industry and manufacturing, or a sluggish period as many provinces adjust from winter to summer schedules. Either way, traders reading this forex blog should note the CAD’s recent weakness brought on by this sluggish data. Such weakness does not appear systemic, though, and such bearishness will likely not last.

Forex Market Analysis provided by ForexYard.

Daily Economic Roundup – May 11, 2011

admin — Thu, 12 May 2011 01:28:10 +0000

What’s on the Economic Horizon

BOE to Downplay Rising Prices in Inflation Report
U.S. Continues Trade Deficit
CAD Trade Figures On Tap

United States

With forex markets mostly in consolidation mode yesterday, the dollar found itself on the losing end against most of its major counterparts. European currency pairs like EUR/USD and GBP/USD edged slightly higher, while the comdolls made a run for it. AUD/USD closed above the 1.0800 handle, while USD/CAD closed 57 pips lower to end at .9579. More…

Euro zone

The euro managed to sneak in some gains against the Greenback and the yen amidst the resurfacing Greek debt concerns. EUR/USD ended almost 50 pips higher than its 1.4352 open price while EUR/JPY closed 40 pips above the 116.00 handle. Can the euro hold on to its gains today? More…

United Kingdom

Proving that Monday’s price action was no fluke, pound bears took control over the pound and held it down again yesterday. The pound was one of the few currencies that weakened against the Greenback, as Cable slid 36 pips down to 1.6358. More…

Japan

Were those BOJ officials I saw drinking shots of sake with Big Pippin last night? After all, the yen was the biggest loser in yesterday’s trading action, which is exactly what the BOJ wants! USD/JPY made a nice run up the charts, gaining 63 pips on the day to finish at 80.83. Meanwhile, EUR/JPY soared higher by 128 pips before ending at 116.39. More…

Canada

The Loonie scored its third consecutive day of wins against the Greenback as USD/CAD closed almost 60 pips below its open price of .9636. Let’s take a look at the upcoming data from Canada to find out whether the Loonie can keep up its winning streak. More…

Australia

Thanks to some positive data and stronger commodities trading, the Aussie got a nice boost up the charts, with AUD/USD gaining a decent 48 pips to finish at 1.0836. For those of you counting at home, that makes three consecutive days of gains. Will today make it four? More…

New Zealand

Talk about dodging a bullet! The Kiwi narrowly escaped defeat against the Greenback as NZD/USD bounced back up from an intraday low of .7889 to end the day 2 pips higher at .7947. More…

Switzerland

There she goes again! After posting nice gains on Monday, the Swissy went back to sliding down the charts on bad data and improved risk appetite. It lost out against its two biggest counterparts as USD/CHF rose 89 pips and EUR/CHF leapt 168 pips. More…

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together. In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis. Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!

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Daily Economic Roundup – May 10, 2011

admin — Wed, 11 May 2011 01:34:33 +0000

What’s on the Economic Horizon?
Greek debt gets downgraded
Australian trade surplus exceeds forecasts
Swiss CPI on deck

United States

The dollar may have ended last week with a grand finale, but the way it started this week was anything but amazing! Except against the euro, it retreated against ALL of its counterparts! How weak sauce is that?? EUR/USD slipped 14 pips to 1.4351 while USD/JPY fell 40 pips to 80.21. More…

Euro Zone

As my mama always said, everything can change on a whim! After it looked like the euro was heading to new lows, good data helped give the currency a nice boost. After trading as low as 1.4255, EUR/USD bounced back up to close at 1.4351, marking just a 14-pip loss for the day. More…

United Kingdom

Traders showed no mercy for the pound as they pushed the currency lower against its counterparts despite the risk rallies yesterday. GBP/USD dipped to a low of 1.6270 before recovering to close at 1.6394 while GBP/JPY struggled to stay above the 131.50 area. More…

Japan

Someone’s been pumping iron! The yen was downright monstrous on the charts as it demolished its two biggest rivals yesterday. It rose 40 pips against the dollar while posting a 73-pip win against the euro. More…

Canada

Just like its comdoll siblings, the Loonie came out on top in yesterday’s rumble. After opening at .9670, USD/CAD crawled slowly down the charts, ending the day at .9633, down 37 pips for the day. More…

Australia

Make that back-to-back, baby! The Aussie followed up its awesome performance last Friday with an equally impressive performance yesterday. After gapping up to start the week, AUD/USD continued to rally, eventually ending the day 69 pips higher at 1.0788. More…

New Zealand

Not bad! The Kiwi put up a good fight against the Greenback yesterday as risk aversion started to ease. Although NZD/USD ended the day 20 pips lower than its open price, it was able to find support at the .7900 handle. More…

Switzerland

And the Swissy’s back in the game! After a couple of days of losing against the Greenback, the Swiss franc got back on its feet and erased some of its recent losses. USD/CHF opened at .8791, dropped to a low of .8717, then closed at .8719. More…

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