ZuluTrade Blog

EURUSD and USDCHF continue to hold below/above their 200 day moving averages...

Market View | Tuesday, November 20, 2012 2:36 AM GMT

Good Morning,

 

- Bank of Japan left rates unchanged as expected. USDJPY traded in a narrow 81.14-81.435 range. EURUSD and USDCHF continue to hold below/above their 200 day moving averages at 1.2806, resp. 0.9409.

- Stocks: Nikkei -0.12 %, Hang Seng +0.69 %, Shanghai Composite Dow Jones +1.65 %, S+P500 +1.99 %

- Moody's stripped France of its prized triple-A badge on Monday, cutting the sovereign credit rating on Europe's No. 2 economy by one notch to Aa1 from Aaa, citing an uncertain fiscal outlook and deteriorating economy. The downgrade, which follows a cut by Standard & Poor's in January, was widely expected but is still a blow to Socialist President Francois Hollande as he strives to convince the world he can fix France's public finances and stalled economy. Moody's said it was keeping a negative outlook on France due to structural challenges and a "sustained loss of competitiveness" in the country.

- Finland's Fin Min Urpilainen on Greece: Impossible to say if an agreement will be reached on Tuesday

- Greek Prime Minister Antonis Samaras and the leaders of the two political parties supporting his govt won’t accept a demand from creditors for 20,000 state employees to be fired in 2014, party official told reporters in Athens. * Official from Pasok party asked not to be identified * Official says troika demand for sackings is new * Official says three parties supporting Samaras’s govt to form committee to coordinate govt policy, implementation

- The Fiscal Cliff could trigger a second recession, a 2% decline in GDP to flat 0.4% growth, and increased unemployment to upwards of 10%, all which would dramatically affect demand for U.S. transportation assets, according to a new report by Fitch Ratings.

 - The Bank of Japan kept monetary policy steady on Tuesday, standing its ground for now in the face of calls from the country's likely next prime minister to pursue "unlimited" easing to revive an economy widely seen in recession. (Asset-purchase fund kept at 66t yen, credit-lending program kept at 25t yen, key overnight rate maintained at 0-0.1%)

- China's foreign direct investment is on track to top $100 billion in 2012 even as the longest run of year-on-year declines in inflows since 2009 extended into October, dragged down by an uncertain outlook for corporate spending as global trade sags. The Commerce Ministry said on Tuesday that China drew $91.7 billion in foreign direct investment between January and October, down 3.45 percent on the same period a year ago, marking the 10th month that aggregate year-to-date flows fell compared with the previous period.

- The Reserve Bank of Australia said more interest-rate reductions may be appropriate to spur economic growth as a mining boom wanes, minutes of its Nov. 6 policy meeting showed. “Members considered that further easing may be appropriate in the period ahead,” according to the minutes released. “While a gradual recovery in both dwelling and other business investment was anticipated, assisted in part by the lower level of interest rates, there was also uncertainty about the timing and magnitude of this pick-up.”

- Norway central bank Governor Oeystein Olsen spike in Frankfurt.£ * Says activity is high, particularly in the oil industry and the construction sector. * Says unemployment remains low and stable. * Says Norwegian economy is not unaffected by the turbulence abroad as weak demand from Europe and a strong krone exchange rate hold back some areas of the Norwegian export industry. * Says key policy rate in Norway is low because inflation is low and interest rates abroad are very low, limiting how quickly the key policy rate in Norway can be raised.

 

14:30

US Housing Starts Oct

14:30

US Building Permits Oct

15:00

Fed Lacker

18:15

Fed Bernanke

08:00

Germany PPI Oct

10:00

ECB Nowotny

10:00

Bank of Portugal Costa

11:30

ECB Coeure

14:30

Bank of Spain Linde

11:00

Bank of England liquidity review authors Winters and Plenderleith

testify

to the U.K. House of Commons Treasury Committe

08:00

Switzerland Trade Balance Oct

10:00

Norway GDP Q3

14:30

Canada Whole Sales mom Sep

 (CET)

Have a nice day !

 

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