The Forex Daily Digest – February 3, 2010
The USD continued to extend its gains against the JPY after data showed the U.S. private sector shed fewer jobs than expected in January. Copper declined in New York as the dollar erased losses against a basket of six major currencies, easing demand for the metal as an alternative investment. The ADP Employment report showed the private sector eliminating 22,000 jobs in January, the 24th decline in a row but it was the fewest number of jobs lost since 22,000 jobs were added in January 2008.
And USD strength continued after the Institute of Supply Management’s index on the state of the U.S. services sector rose to 50.5 in January from 49.8 in December, crossing the threshold to indicate expansion in the sector.
Australia’s central bank Governor Glenn Stevens' unexpected decision to keep borrowing costs steady gives his nation’s economy an opportunity to absorb a series of rate increases and allow global counterparts to catch up. Australian traders are betting there is only a 28 percent chance of a quarter-point move when policy makers meet on March 2.
The Bank of China has raised mortgage rates for first-home buyers. First-home buyers will now be able to obtain mortgages at a 15 percent discount to benchmark lending rates. The Bank of China had been offering 30 percent discounts, in line with government policy that is intended to sustain the property sector and motivate domestic consumption.
President Obama warned that high U.S. budget deficits could have immediate economic effects and were not simply a concern for the future. In prepared remarks, the president said that the deficits won't just encumber our children and grandchildren in the future - they could also harm our markets, push interest rates higher, and endanger the U.S. economic recovery.
U.S. Treasury Secretary Timothy Geithner said that the Obama administration is prepared to enforce fees on financial organizations for as long as necessary to ensure that every cent spent on bailing out banks is repaid. In testimony before the Senate Finance Committee, Geithner said a proposed Financial Crisis Responsibility fee that is projected to raise $90 billion over the next decade could be extended if the cost of the bailout exceeds that amount.
On tomorrow’s economic calendar watch for the Initial Jobless Claims, preliminary Productivity for the fourth quarter, and Factory Orders for December. Scheduled earnings are Northrop Grumman, CIGNA, Avon Products, Lennox International, Flowers Foods, Kellogg, MasterCard, Royal Dutch Shell, Sony, Dun & Bradstreet, and Pitney Bowes.
Happy Trading,
James Dicks
And USD strength continued after the Institute of Supply Management’s index on the state of the U.S. services sector rose to 50.5 in January from 49.8 in December, crossing the threshold to indicate expansion in the sector.
Australia’s central bank Governor Glenn Stevens' unexpected decision to keep borrowing costs steady gives his nation’s economy an opportunity to absorb a series of rate increases and allow global counterparts to catch up. Australian traders are betting there is only a 28 percent chance of a quarter-point move when policy makers meet on March 2.
The Bank of China has raised mortgage rates for first-home buyers. First-home buyers will now be able to obtain mortgages at a 15 percent discount to benchmark lending rates. The Bank of China had been offering 30 percent discounts, in line with government policy that is intended to sustain the property sector and motivate domestic consumption.
President Obama warned that high U.S. budget deficits could have immediate economic effects and were not simply a concern for the future. In prepared remarks, the president said that the deficits won't just encumber our children and grandchildren in the future - they could also harm our markets, push interest rates higher, and endanger the U.S. economic recovery.
U.S. Treasury Secretary Timothy Geithner said that the Obama administration is prepared to enforce fees on financial organizations for as long as necessary to ensure that every cent spent on bailing out banks is repaid. In testimony before the Senate Finance Committee, Geithner said a proposed Financial Crisis Responsibility fee that is projected to raise $90 billion over the next decade could be extended if the cost of the bailout exceeds that amount.
On tomorrow’s economic calendar watch for the Initial Jobless Claims, preliminary Productivity for the fourth quarter, and Factory Orders for December. Scheduled earnings are Northrop Grumman, CIGNA, Avon Products, Lennox International, Flowers Foods, Kellogg, MasterCard, Royal Dutch Shell, Sony, Dun & Bradstreet, and Pitney Bowes.
Happy Trading,
James Dicks
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