Yen Gains on Dollar During NY Trading as Early Stock Gains Melt Away
Yen Gains on Dollar During NY Trading as Early Stock Gains Melt Away
JPN Core Machinery Orders Rise More Than Expected
In Japan, machinery orders, excluding the volatile ones such as those for ships and electric power companies, rebounded in the month of September climbing 5.5% on a monthly basis. The rise only partially offsets the major decline in the past 2 months.
AUS Home Loans Decrease 2.7% in September
The number of Australian home loans fell by 2.7% in September. The interest rate cuts by the RBA do not seem to have filtered down yest to the housing sector in any significant way to help and support new finance lending for home purchases.
AUD/JPY - Aussie Down As Earlier Gains as Stock Gains in Asia, Europe Give Way to Losses in US
Stocks in Asia rose today as China unveiled a plan to spend half a trillion dollars on a fiscal stimulus plan spanning over two years. The plan is expected to increase demand for commodities as much of its spending will go to infrastructure projects. The news helped boost carry trade pairs like the Aussie-Yen higher during the Asian session. However as trading entered the NY session, risk aversion came back to the forefront as the Aussie slid 380 pips from its high near 69.40.
EUR Sentix Investor Confidence Hits Record Low, SWZ Consumer Climate at 5-Year Low
In the Euro-zone the Sentix Investor Confidence survey dropped from -27.8 to a fresh record low of -36.4 for November. This is the 5th straight month the index has been negative. This weeks decline was a reflection of a weaker outlook in the auto industry which has cut back production and work hours and looks to shed jobs. In Switzerland, the consumer climate index for October fell 10 points to -27, a 5-year low. Future expectations fell as consumer believe the economic outlook will worsen in the coming year.
EUR/CHF - Euro Tests 1.5165 Before Turning Back in NY
Stocks in Europe were up as well, as mining companies led a rally. However, key indexes gave up some of their gains in later trading. The Euro-Swiss Franc pair, rose to test 1.5165, its high from last week, but was turned back in NY trading.
UK Producer Prices Decline More Than Expected
UK factory prices declined more than expected in October. Output prices fell 1% on the month as oil prices and scrap metal costs fell. On the year, prices were 6.8% higher, but this is was still a deceleration from September. The monthly decrease of 1% was the largest decrease since records began in1986.
Input prices were down 5.6%, but were 13.8% higher than in October of last year. That was also the largest monthly decrease and the sharpest slowdown in the in the rate of annual increase since comparable records began in 1986.
EUR/GBP - Euro Touches New All Time High vs Pound
The Euro-Pound pair has been very volatile the last 2 months. Today’s price action saw the pair set a new record high above the 0.82 level. With the Bank of England aggressively cutting rates last week, the Euro now has an interest-rate differential advantage against the Pound.
USD/JPY - Yen Gains on Dollar During NY Trading as Early Stock Gains Melt Away
US stocks opened higher, but were unable to maintain any of those gains with the Dow Jones index sliding into the red around noon. Risk aversion pushed the Dollar-Yen pair 180 pips lower than its intra-day high near 99.50.
CAN Housing Starts Fall to 212K, Better Than Forecast
In Canada, the annual rate of housing starts fell to 212K in October, but the number remains consistent with a relatively strong trend, compared to other developed nations such as the US and UK. Still, for the first 10 months of 2008, actual starts were down an estimated 1.6% compared to the same period last year.
CAN New Housing Price Index Up Slightly on Month
The new housing price index in Canada rose 0.1% in September, but slowed to a 2.1% pace in annual terms.
USD/CAD - Greenback Tests 1.1960 vs Loonie on Risk Aversion
The US Dollar-Canadian Dollar pair rose to the 1.1960 level in NY trading, retesting the level near Friday’s high. Oil prices though initially boosted by the Beijing stimulus plan, were close to $62 a barrel, similar to where it started the session. The turn to risk aversion in the NY session weakened the Loonie in today’s trading.
Tonight’s and Tomorrow’s Releases
Tonight, we get producer price data from New Zealand, the current account for Japan, the BRC retail sales monitor and RICS house price balance from the UK, and the NAB business confidence index from Australia.
Overnight, Germany releases its Wholesale price index, and along with the Euro-zone its ZEW Economic sentiment index. The UK reveals data on its trade balance and housing prices. The US and Canada will celebrate Veteran’s Day and Remembrance Day.
Capital Market Services, L.L.C.
www.cmsfx.com
©C2004-2005 Globicus International, Inc. and Capital Market Services, L.L.C. Any information in this report is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by Capital Market Services, L.L.C. with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgment at this date and time, and are subject to change without notice. Capital Market Services, L.L.C. accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this report. No part of this report may be reproduced or distributed in any manner without the permission of Capital Market Services, L.L.C.
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