iOption’s Daily Asset Review – Wednesday May 22, 2013
|
Date |
Time |
Currency |
Event |
|
May 22 |
00:50 |
JPY |
Trade Balance |
|
|
01:30 |
AUD |
Westpac Consumer Sentiment |
|
|
09:30 |
GBP |
Retail Sales (MoM) |
|
|
09:30 |
GBP |
Retail Sales (YoY) |
|
|
10:30 |
EUR |
German 10-Year Bund Auction |
|
|
11:00 |
GBP |
CBI Industrial Trends Orders |
|
|
13:30 |
CAD |
Core Retail Sales (MoM) |
|
|
13:30 |
CAD |
Retail Sales (MoM) |
|
|
15:00 |
USD |
Existing Home Sales |
Global Markets
GLOBAL MARKETS
Tuesday saw a trio of Federal Reserve members gave public addresses. Chicago’s Evan and Bullard both support continuing the current course of asset purchases, while Mr Dudley went on step further. Federal Reserve Bank of New York President William Dudley, also warned it remains possible the Fed may in fact have to increase its purchases if the economy needs that support. It looks as though the FOMC has made its decision in the press before their upcoming meet. These words helped sent Wall Street back to record highs although the markets remain caustious ahead of Mr Bernanke’s testimony before Congress today and the release of FOMC minutes. Either one of these may paint a different picture. The Dow closed up 52.30 points to 15,387.58 points while the broad-based S&P 500 gained 2.87 points, or 0.17 per cent, to close at 1,669.16 points. The Nasdaq rose 5.69 points to 3,502.12 points. Global sentiment lifted European marktets which touched highs not seen since 2008, while Asian shares continue to trade on a positive note off the back of US exchanges.
Global Currency
EURO DOLLAR
The euro edged up this morning to trade at 1.3009 but has been virtually flat since Friday. There has been a lack of data as traders seem to be fairly complacent as of late. Today will see a great deal of important numbers from the eurozone. The rise in US The euro remains trapped below the 1.30 price responding to sentiment in the US after two days with little to no eco data and lite news flow except for FOMC speakers which have driven the greenback. Today’s major event will be Mr. Bernanke’s testimony before the US congress and the release of the FOMC minutes from its May 1st meeting. Once again today there is little data on the calendar except for US existing home sales. sales surprised speculators and gave support to the dollar. German data will have a lot of say in the direction of the euro today.
THE STERLING
Sterling continues to weaken after taking a nose dive of over 100 points this week to trade at 1.5155 when just a few weeks ago the currency was headed to 1.57 after a surprise GDP release. Data since then has been lackluster and the Bank of England remains sidelined. Traders are hoping that when Mr. King hands over the reins to Canadian Mr. Carney next month that we might see some supportive actions.
ASIAN CURRENCIES
The yen edged down in the early session today, trading at 101.61 as traders shifted in the market place. News flow and data have been very quiet this The JPY gained momentum ahead of this morning Bank of Japan meeting, moving up to trade at 102.49 and holding onto gains after the BoJ held rates and policy as expected. The bank did upgrade their economic outlook based on results from the aggressive stimulus programs launched on April 5, 2013. leaving traders a bit bored. The Bank of Japan said that Japan’s Corporate Goods Price Index rose to an adjusted annual rate of 0.0%, from -0.5% in the preceding month. Economists had expected Japan’s Corporate Goods Price Index to rise to -0.2% last month.
Metals and Energy
GOLD
Gold rebounded yesterday after a trio of US central members said that they did not foresee any reduction or change in monetary stimulus. The greenback had been trading on a positive note after stronger eco data supported the recovery and traders began to circulate rumors that the Fed might taper off stimulus, giving strength to the US dollar but weighing heavily on precious metals. Gold is trading at 1376 this morning
CRUDE OIL
Natural gas is outshining all the commodities this week recovering from a dip to 3.90 last week, natural gas is now at 4.1960 and climbing after the Department of Energy approved two projects opening the door to exporting of US natural gas. There are a total of 22 major projects that have been waiting on approval as governments around the world pushed the US to allow for exporting of natural gas, which is fast becoming a major energy commodity due to its cheap price. The EPA last week issued a report showing that fracking a way of mining natural gas was not as bad for the environment as reported by environmental groups.
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