The euro reached an 11-month high versus the U.S. dollar
Today’s Reports and Announcements of Significance to the Market
Today’s Major Economic Events: Below you will find the top tier economic events for today. These events have the ability to move the markets. If you want to learn more about understanding these reports and the economics calendar, contact iOption live chat and asked to be enrolled for our webinar about trading the economics calendar.
|
Date |
Time |
Currency |
Event |
|
Jan. 28 |
07:00 |
GBP |
Nationwide HPI (MoM) |
|
|
13:30 |
USD |
Core Durable Goods Orders (MoM) |
|
|
13:30 |
USD |
Durable Goods Orders (MoM) |
|
|
15:00 |
USD |
Pending Home Sales (MoM) |
|
|
21:45 |
NZD |
Trade Balance |
|
Jan. 29 |
00:30 |
AUD |
NAB Business Confidence |
|
|
07:00 |
EUR |
GfK German Consumer Climate |
|
|
15:00 |
USD |
CB Consumer Confidence |
|
|
21:45 |
NZD |
Building Consents (MoM) |
|
|
23:50 |
JPY |
Retail Sales (YoY) |
|
Jan. 30 |
08:00 |
CHF |
KOF Leading Indicators |
|
|
20:00 |
NZD |
Interest Rate Decision |
|
|
23:50 |
JPY |
Industrial Production (MoM) |
|
Jan. 31 |
07:00 |
GBP |
Nationwide HPI (MoM) |
|
|
07:45 |
EUR |
French Consumer Spending (MoM) |
|
|
08:55 |
EUR |
German Unemployment Change |
|
|
13:30 |
CAD |
GDP (MoM) |
|
Feb. 01 |
00:30 |
AUD |
PPI (QoQ) |
|
|
01:00 |
CNY |
Chinese Manufacturing PMI |
|
|
08:30 |
CHF |
SVME PMI |
Global Markets
US MARKETS
For nearly the past two weeks, the Standard & Poor’s 500-stock index has been slowly moving up — always by less than a percent— which has been the greatest string of gains going as far back as 2004. A new milestone was cleared on Friday, having closed above 1500 for the first time in 5 years. In the meantime, the Dow Jones Industrial Average has recorded six advances in a row and is moving closer to reaching record highs. The Dow advanced 70.65 points, or 0.5%, to 13895.98 Friday. It remains just 269 points from its record high, reached in October 2007, of 14164.53. The S&P 500 tacked on 8.14 points, or 0.5%, to 1502.96.
EUROPEAN MARKETS
The Stoxx Europe 600 was up 0.3% closing at its highest level since February 2011, while European markets were broadly higher. Reports about the business climate in Germany rose higher than economist expected, which suggests that the contraction in euro-zone’s largest economy might be over with. Also, the euro-zone banks have signified that that they would pay back a larger- than- expected portion of their loans to the ECB, two years early.
ASIAN MARKETS
The benchmark index in Japan, Nikkei Stock Average, jumped 2.9% reaching its highest level since April 2010, while a drop in the yen had raised exporter’s shares. The Nikkei pushed forward 0.1% on the week, making it the 11th consecutive week of gains, which is the longest streak dating back to 1986. Australia’s S&P/ASX 200 rose 0.5%, which is its highest mark since April 2011; it increased 1.3% for the week.
Global Currency
EURO DOLLAR
On the financial front, the rate of sales of new homes in the United States has fallen greater than expected in December for November’s upwardly revised data, which has been reported by the Commerce Department. With growing optimism that the euro region has turned the corner on their debt crisis, the euro rallied broadly during Friday’s trading. The yen was pointed in the direction of hitting an 11th straight week of losses versus the dollar. The euro reached an 11-month high versus the U.S. dollar as well as reaching an 21-month high point compared to the yen, after the ECB said that banks would be paying back a greater portion than was initially expected by 137 billion euros in loans for the next week, which is a sign that shows that at least some of the financial system is on the mend. The euro rose 0.6% to $1.3453, after rising to $1.3479, which is its highest mark since late February 2012.
THE STERLING
The British economy had shrunk more-than-expected by the end of the 2012 year with the a oil production slump from North Sea, lowered factory output, and the hangover left from the 2012 London Olympic Games which all are pushing the U.K. economy dangerously close to a “triple-dip” recession. The sterling has drifted to being traded at 1.5799. If there is further contraction during the early part of 2013 that would mean there’s a renewed recession, which would lead to a buildup of more pressure on the Conservative-led government to soften its budget cuts and tax raising, which many economist and voter view accountable as the reason that there has been deterred spending and investments. Three high-street retail chains hit the rocks with the during the first couple of weeks within the new year, as a toxic mix of austerity, as there are troubles in the euro-zone and the depletion of real earnings which have weighed on the economy. Governor of the Central Bank, Mervyn King said that he expects no more than a “gentle recovery” for this year, while this week the IMF will cut its 2013 forecast for the British growth and has asked that the government to step up and slow the pace of budget cuts.
ASIAN CURRENCIES
The dollar has risen as high as 91.19 yen, which is the strongest holding since June 2010. It has risen past its reported options barrier at 90.75 and 91 yen. It was last seen up 0.6% at 90.88 yen. For the week, the U.S. dollar rose around 1% compared the JPY, and has seen gains every week versus the yen since the week ended on Nov. 11th. The expectations that the new Japanese P.M., Shinzo Abe, will force the Bank of Japan to aggressively ease the monetary policy has caused the yen to lose more than 10% of its value versus the dollar going back to mid-November 2012, and many expect more declines in the future. For the second straight month in the year dating to December, Japan’s core consumer prices have slipped, which signals that the nation’s economy is still in deflation and which is adding more pressure on the BoJ to adopt more stimulus in order to achieve its new inflation target.
Metals and Energy
GOLD
Gold has moved down on the Comex division of the New York Mercantile Exchange this past Friday as equities closed out a four-week winning streak. Gold was being traded at 1,688.80 per troy ounce four weeks ago on the NYMEX. On Friday the closing price was $1,657.90, which gold had lost an additional $12 or 0.72 percent on the day. While the US debt ceiling is temporarily under control the eurozone is beginning to show some signs of recovery by markets that are moving from risk off mode to risk on.
CRUDE OIL
Crude oil had fallen a bit on Friday as there was a report that had shown a cooling off in new home sales which offset the positive influence of ebullient U.S. stock markets. WTI crude oil fell 7 cents to close at $95.88 in trading on the New York Mercantile Exchange. It ended the week with a gain of 32 cents. New home sales fell 7.3% last month due to a seasonally adjusted annual rate of 369,000, according to reports from the Commerce Department. This total is down from last November’s rate, which is the fast drop in 2 ½ years. Even with that, the sales for the entire 2012 year were the best since 2009. Confident investor’s mood has supported oil prices, reflected by rising indexes in global stock markets and gains that the euro has had versus the dollar. A weakened dollar makes crude oil cheaper and a more attractive investment for speculators that hold other currencies.
written by: .
English
French 
German 
Spanish 
Arabic 
Portuguese (Brazil) 
Turkish 
