The Forex Daily Digest – July 14, 2009
A more relaxed global risk environment caused the USD to suffer moderate losses against most currencies except the JPY, although currency markets remained lightly traded. They continue to be marked by a trend toward uncertain, sideways trading. The U.S. and most other major stock exchanges strengthened yesterday, a typical indicator of better overall risk appetites which increased the demand for the other currencies, as investors set up for a series of important earnings reports from major corporations later this week.
On Monday, the European Central Bank President, Jean-Claude Trichet, urged European banks to accelerate their efforts to clean up their balance sheets and start lending again. But regardless of the action by the ECB or the euro-zone governments, the supply of credit to the European economy has decelerated as banks fear adding any more risky loans to the toxic securities and bad loans already on their books. The ECB anticipates them to have to write down at least an additional EUR280 billion, mainly in loan losses, by the end of 2010.
The JPY and the USD increased for a second day against the EUR as Asian stocks declined, building demand for the virtual safety of the Japanese and U.S. currencies. The JPY rose against all 16 most-traded currencies after news reports said Lloyds Banking Group Plc may announce further losses of as much as 13 billion pounds ($20.9 billion) and the Wall Street Journal said major U.S. airlines may have to file for bankruptcy.
Losses in the euro were also tempered on conjecture that European Central Bank policy makers will refrain from cutting interest rates. The ECB said in its monthly report last week that interest rates are “appropriate” and the euro-area’s economy will gradually emerge from recession in 2010. The central bank left its benchmark lending rate unchanged at 1 percent on July 2nd to revive economic growth in the region.
The U.S. economic calendar looks like this for the day. At 8:30 am (Eastern Time) look for the Producer Price Index and the Core PPI to be released. Also at 8:30, the Retail Sales report for June will hit the street and at 10 am, the Business Inventories report is scheduled to be released.
Major earnings for the day that could affect trading include Goldman Sachs, AAR Corp, Intel, Johnson & Johnson, and Yum Brands.
Let me urge you to check into the educational opportunities that are available through JDfn and PremiereTrade. Whether its in-house classroom study from the finest Forex traders in the business or personal coaching sessions, you will be doing yourself a big favor if you get involved in the educational process. You’ll definitely become a better trader and that’s why you started trading in the first place. Give us a call today and find out what would work best for you and your lifestyle. Also, check into the new alerts we are offering….just go to www.JDForexAlerts.com and sign up for a free 30 day trial today.
Happy Trading,
James Dicks
On Monday, the European Central Bank President, Jean-Claude Trichet, urged European banks to accelerate their efforts to clean up their balance sheets and start lending again. But regardless of the action by the ECB or the euro-zone governments, the supply of credit to the European economy has decelerated as banks fear adding any more risky loans to the toxic securities and bad loans already on their books. The ECB anticipates them to have to write down at least an additional EUR280 billion, mainly in loan losses, by the end of 2010.
The JPY and the USD increased for a second day against the EUR as Asian stocks declined, building demand for the virtual safety of the Japanese and U.S. currencies. The JPY rose against all 16 most-traded currencies after news reports said Lloyds Banking Group Plc may announce further losses of as much as 13 billion pounds ($20.9 billion) and the Wall Street Journal said major U.S. airlines may have to file for bankruptcy.
Losses in the euro were also tempered on conjecture that European Central Bank policy makers will refrain from cutting interest rates. The ECB said in its monthly report last week that interest rates are “appropriate” and the euro-area’s economy will gradually emerge from recession in 2010. The central bank left its benchmark lending rate unchanged at 1 percent on July 2nd to revive economic growth in the region.
The U.S. economic calendar looks like this for the day. At 8:30 am (Eastern Time) look for the Producer Price Index and the Core PPI to be released. Also at 8:30, the Retail Sales report for June will hit the street and at 10 am, the Business Inventories report is scheduled to be released.
Major earnings for the day that could affect trading include Goldman Sachs, AAR Corp, Intel, Johnson & Johnson, and Yum Brands.
Let me urge you to check into the educational opportunities that are available through JDfn and PremiereTrade. Whether its in-house classroom study from the finest Forex traders in the business or personal coaching sessions, you will be doing yourself a big favor if you get involved in the educational process. You’ll definitely become a better trader and that’s why you started trading in the first place. Give us a call today and find out what would work best for you and your lifestyle. Also, check into the new alerts we are offering….just go to www.JDForexAlerts.com and sign up for a free 30 day trial today.
Happy Trading,
James Dicks
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