The Forex Daily Digest - June 15, 2009
It’s the start of another busy week with a great deal of news and economic reports that will surely influence the Forex trading this week.
The USD improved ahead of this past weekend’s G8 Finance Minister’s meeting in Italy, with Japan’s Finance Minister Yosano using his influence to push the USD higher. In light of recent speculation among Chinese and Russian government officials soliciting the need for a new global currency, Yosano expressed confidence in US Treasuries – calling Japan’s trust in US debt “absolutely unshakeable.”
The dollar has increased the most in a week against the euro after the Russian Finance Minister, Alexei Kudrin, said his nation also has full confidence in the U.S. currency. The USD was up against 14 of its 16 major counterparts as Kudrin said that it was premature to speak of an alternative to the world’s main reserve currency. The euro extended losses after Britain’s Telegraph newspaper quoted a German industrial group as saying the nation’s credit conditions are worsening.
The GBP fell against the USD for a second day after the Confederation of British Industry reported the nation’s economy won’t grow until sometime in 2010. A drop on the British stock market also dampened the demand for the GBP. The pound dropped against the JPY as the FTSE 100 fell the most in eight days and investors ran to the safety of government bonds. And the CBI said that the Bank of England may need to print more money to boost growth. They expect Gross domestic product will fall 0.3 percent in the second quarter and 0.1 percent in the third, before stalling in the final three months of the year.
The G8 finance ministers began creating plans for rolling back budget deficits and bank bailouts as the global economy begins to show signs of recovery and investors start to concern themselves about the possibility of inflation. The officials said it’s practical to consider what exit strategies to install once global growth is secured and they asked the International Monetary Fund to scrutinize how to do so without reigniting the two-year crisis. At the same time, they said it was too early to pull back more than $2 trillion in stimulus packages.
Meantime, the University of Michigan consumer confidence survey, released on Friday, climbed to its highest level in 9-months but was mixed against the consensus estimates. The June preliminary conditions index sharply beat expectations, coming in at 74.5, versus the expectations for an improvement to 68.5 from 67.7.
This week we start with the New York Empire State Index which was expected to come in at a negative 5.1 but it surprised everyone by reporting a negative 9.4. Tuesday it is the May Building Permits report, the May Producer Price Index, Capacity Utilization and Industrial Production. Wednesday, the May Consumer Price Index and Crude Oil Inventories. Then on Thursday it’s Initial Jobless Claims, Leading Indicators and the Philly Fed Index.
As usual, make sure you are paying close attention to the events of the day and follow the daily setups offered by our traders on the James Dicks Forex Network. Every morning and throughout the day, our seasoned traders will guide you through what they are seeing and explain how the various currency pairs are trading. Make sure you take advantage of their years of experience and make sure the pips come your way this week.
Happy Trading –
James Dicks
The USD improved ahead of this past weekend’s G8 Finance Minister’s meeting in Italy, with Japan’s Finance Minister Yosano using his influence to push the USD higher. In light of recent speculation among Chinese and Russian government officials soliciting the need for a new global currency, Yosano expressed confidence in US Treasuries – calling Japan’s trust in US debt “absolutely unshakeable.”
The dollar has increased the most in a week against the euro after the Russian Finance Minister, Alexei Kudrin, said his nation also has full confidence in the U.S. currency. The USD was up against 14 of its 16 major counterparts as Kudrin said that it was premature to speak of an alternative to the world’s main reserve currency. The euro extended losses after Britain’s Telegraph newspaper quoted a German industrial group as saying the nation’s credit conditions are worsening.
The GBP fell against the USD for a second day after the Confederation of British Industry reported the nation’s economy won’t grow until sometime in 2010. A drop on the British stock market also dampened the demand for the GBP. The pound dropped against the JPY as the FTSE 100 fell the most in eight days and investors ran to the safety of government bonds. And the CBI said that the Bank of England may need to print more money to boost growth. They expect Gross domestic product will fall 0.3 percent in the second quarter and 0.1 percent in the third, before stalling in the final three months of the year.
The G8 finance ministers began creating plans for rolling back budget deficits and bank bailouts as the global economy begins to show signs of recovery and investors start to concern themselves about the possibility of inflation. The officials said it’s practical to consider what exit strategies to install once global growth is secured and they asked the International Monetary Fund to scrutinize how to do so without reigniting the two-year crisis. At the same time, they said it was too early to pull back more than $2 trillion in stimulus packages.
Meantime, the University of Michigan consumer confidence survey, released on Friday, climbed to its highest level in 9-months but was mixed against the consensus estimates. The June preliminary conditions index sharply beat expectations, coming in at 74.5, versus the expectations for an improvement to 68.5 from 67.7.
This week we start with the New York Empire State Index which was expected to come in at a negative 5.1 but it surprised everyone by reporting a negative 9.4. Tuesday it is the May Building Permits report, the May Producer Price Index, Capacity Utilization and Industrial Production. Wednesday, the May Consumer Price Index and Crude Oil Inventories. Then on Thursday it’s Initial Jobless Claims, Leading Indicators and the Philly Fed Index.
As usual, make sure you are paying close attention to the events of the day and follow the daily setups offered by our traders on the James Dicks Forex Network. Every morning and throughout the day, our seasoned traders will guide you through what they are seeing and explain how the various currency pairs are trading. Make sure you take advantage of their years of experience and make sure the pips come your way this week.
Happy Trading –
James Dicks
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