The Forex Daily Digest – November 2, 2009
The USD gained against major counterparts at the end of last week for the sixth day in the past seven after a government report showed U.S. consumer spending fell in September, threatening the ability of the nation's economy to continue expanding and weighing on equities.
FOREX traders largely ignored a private report showing the Chicago purchasing managers index rose more than expected, to a reading of 54.2 in October from 46.1 in September. Levels over the 50 mark indicate more firms taking part in the survey said business was improving than said it was worsening. They also shrugged off the last revision in the University of Michigan/Reuters survey of consumer sentiment for October. It showed a reading of 70.6, up from its previous estimate of 64.4 earlier this month and a little higher than anticipated, but was still below the reading in September's survey.
The CAD fell for a second consecutive week, driving the currency to a loss for the month, after officials warned that it’s too strong and crude oil and stocks slumped. The Canadian currency fell the most against its U.S. counterpart over the past five days since June. A report yesterday showed the nation’s economy unexpectedly shrank in August, and Finance Minister Jim Flaherty said it proved the recovery is “fragile.” Canada’s unemployment rate rose last month as its job growth slowed, reports next week are forecast to show.
The JPY rose to its highest level in almost three weeks against the USD and the EUR after New York-based CIT Group Inc. filed for bankruptcy, boosting demand for Japan’s currency as a shelter from financial turmoil. CIT listed $71 billion in assets and $65 billion in debt, according to the bank’s filing. The AUD and NZD fell against the USD on concerns Asian stocks will extend last week’s rout in European and U.S. equities.
Australia’s government said the nation’s economy will grow faster than previously expected and the budget deficit will be in line with an earlier forecast. The nation will have a cash deficit in the year ending June 30, 2010, of A$57.7 billion ($51.8 billion), compared with A$57.6 billion forecast in May. Australia’s economy is growing faster and generating more jobs than the government forecast six months ago, after record interest-rate cuts and more than A$20 billion in cash handouts to consumers encouraged spending.
On the economic calendar this week look for Construction Spending, the ISM Manufacturing and Services Index, Factory Orders, Auto Sales, ADP Employment Report, Productivity, Intial Claims, the FOMC Rate Decision and the Non-Farm Payrolls report.
Scheduled earnings this week includes Ford, Dean Foods, Administaff, BMW, Gaylord Entertainment, Marathon Oil, Teva Pharmaceuticals, Cisco Systems, News Corp, Prudential Financial, Pulte Homes, BNP Paribas, CIGNA, Deutsche Bourse, NVIDIA, The NASDAQ OMX Group, Thompson Reuters, Time Warner Cable, Zurich Financial Services.
Happy Trading,
James Dicks
FOREX traders largely ignored a private report showing the Chicago purchasing managers index rose more than expected, to a reading of 54.2 in October from 46.1 in September. Levels over the 50 mark indicate more firms taking part in the survey said business was improving than said it was worsening. They also shrugged off the last revision in the University of Michigan/Reuters survey of consumer sentiment for October. It showed a reading of 70.6, up from its previous estimate of 64.4 earlier this month and a little higher than anticipated, but was still below the reading in September's survey.
The CAD fell for a second consecutive week, driving the currency to a loss for the month, after officials warned that it’s too strong and crude oil and stocks slumped. The Canadian currency fell the most against its U.S. counterpart over the past five days since June. A report yesterday showed the nation’s economy unexpectedly shrank in August, and Finance Minister Jim Flaherty said it proved the recovery is “fragile.” Canada’s unemployment rate rose last month as its job growth slowed, reports next week are forecast to show.
The JPY rose to its highest level in almost three weeks against the USD and the EUR after New York-based CIT Group Inc. filed for bankruptcy, boosting demand for Japan’s currency as a shelter from financial turmoil. CIT listed $71 billion in assets and $65 billion in debt, according to the bank’s filing. The AUD and NZD fell against the USD on concerns Asian stocks will extend last week’s rout in European and U.S. equities.
Australia’s government said the nation’s economy will grow faster than previously expected and the budget deficit will be in line with an earlier forecast. The nation will have a cash deficit in the year ending June 30, 2010, of A$57.7 billion ($51.8 billion), compared with A$57.6 billion forecast in May. Australia’s economy is growing faster and generating more jobs than the government forecast six months ago, after record interest-rate cuts and more than A$20 billion in cash handouts to consumers encouraged spending.
On the economic calendar this week look for Construction Spending, the ISM Manufacturing and Services Index, Factory Orders, Auto Sales, ADP Employment Report, Productivity, Intial Claims, the FOMC Rate Decision and the Non-Farm Payrolls report.
Scheduled earnings this week includes Ford, Dean Foods, Administaff, BMW, Gaylord Entertainment, Marathon Oil, Teva Pharmaceuticals, Cisco Systems, News Corp, Prudential Financial, Pulte Homes, BNP Paribas, CIGNA, Deutsche Bourse, NVIDIA, The NASDAQ OMX Group, Thompson Reuters, Time Warner Cable, Zurich Financial Services.
Happy Trading,
James Dicks
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