Forex News, Advices, Strategies
EUR/USD: The Euro bounces up and intraday bias is on the upside
Tue, 7 Oct 2008 7:32:00 CDT
FXstreet.com (Barcelona) – The Euro declined yesterday to its lowest level since August 2007, at 1.3440. According to the E-Forex Team, intraday bias is now on the upside: “The intraday studies are now bullish and the current rebound may extend towards resistance levels at within the 1.37-1.38 region.”
Support levels, according to the E-Forex Team, stands as follows: “Near term support is eyed at 1.3500 and 1.3440/50. Minor resistance at 1.3650 is on focus now and a potential break will most likely encourage further gains towards the mid 1.37 region, filling yesterday's gap. Current quote is 1.3576.”
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Panic in stock markets produce a global sell-out
Tue, 7 Oct 2008 6:41:00 CDT
FXstreet.com (Barcelona) – Last Friday’s approval of the U.S. financial rescue plan has not been enough to calm stock markets, quite the contrary, panic seems to have spread over stock markets overseas creating a global sell-of that accelerated yesterday, to give shape to yet another “Black Monday”.
Stock markets in Europe posted historical losses, with London's FTSE 100 Index falling 7.85%, or Germany's DAX Index dropping 7.07%. In the U.S. te Dow Jones Industrial Index fell below 10.000 points for the first time since 2004, and in Asia, the Nikkei average fell 4.25%.
Today, Asian markets have opened mixed, the Nikkei has already posted a 1.5% decline its fourth consecutive day of losses. In Australia, however, the S&P/ASX 200 rose 2% after the reserve Bank of Australia cut rates by 1% to 6%, tjhhe largest curt since the 1992 crisis.
It seems that the world’s economy stars to feel the effects of a financial crisis that started in the U.S, American investors have spent years shifting money into overseas stock markets, and now, the turmoil in the U.S. financial markets has produced an enhanced chain reaction in overseas stock markets.
On the other side, European Union’s lack of a coordinated plan to safeguard failing financial institutions, unlike the U.S. Congress which approved a $700 billion bailout, has added panic in the European stock markets fearing the worst consequences of the crisis hitting European Banks.
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Rally
Tue, 7 Oct 2008 2:34:31 CDT
The move up from todays low in the eminis at 1009 has developed very high volume...
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Eurozone In Crisis And Euro In Trouble
Tue, 7 Oct 2008 2:07:27 CDT
AP - Adding to their woes, mortgage finance giants Fannie Mae and Freddie Mac are facing a federal grand jury investigation into their accounting practices.
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Global recession can be avoided, says former IMF chief
(AFP)
Tue, 7 Oct 2008 2:06:46 CDT
Bank of England left rate unchanged at 5%. ECB left rate unchanged at 4.25%.
The Euro took a deep loss after the Chairman of euro zone finance ministers, Jean-Claude Juncker, said the currency was still effectively overvalued despite its recent fall. Euro zone economic uncertainty was "particularly high," ECB president Jean-Claude Trichet said on Thursday. But he cautioned inflation remains high and risks are to the upside. The ECB staff now forecasts growth in the euro zone for 2008 at between 1.1 and 1.7%. For 2009 it forecasts growth between 0.6 and 1.8%.
Investors will have a better idea of how the US labor market is weathering the economic slowdown on Friday when the Labor Department releases its August nonfarm payrolls report.
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ECB's Noyer Calls for G8 Meeting as Financial Crisis Spreads
Tue, 7 Oct 2008 2:04:40 CDT
ECB's Noyer calls for G8 meeting on financial turmoil. Noyer said such a meeting would be a good idea, as governments "need to show they are acting together"...
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Post of the Day: GBP/USD
Tue, 7 Oct 2008 1:19:53 CDT
Student’s Question: Retracement to break the 38.2 Fibonacci at 197.00. Resistance at that level adds further confirmation of short trade entry. Stop placed...
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ECB President Trichet Attempts to Calm Financial Fears, Euro-Dollar (EURUSD) Holding At 1.3560
Tue, 7 Oct 2008 1:06:46 CDT
Trichet stressed ECB ready to provide liquidity as long and as much as needed. Speaking after yesterday's Ecofin meeting Trichet said that the central...
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Japanese Leading Index Slips to Six Year Low, Fueling Recessionary Concerns
Tue, 7 Oct 2008 0:34:42 CDT
The leading index for Japan fell to a six year low of 89.3 from 91.4 in July, indicating that economic activity has deteriorated considerable since the...
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EUR/JPY Short-Term Technical Outlook
Tue, 7 Oct 2008 0:13:15 CDT
Fading risk sentiment has certainly pushed the Japanese yen higher against its counterparts, and may continue to strengthen over the following weeks as...
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Pimco???s Gross Urges Fed To Take Dramatic Measures To Unclog Credit Markets
Tue, 7 Oct 2008 0:10:59 CDT
The Euro has been declining against most major currencies at a breathtaking rate of decline. There are two main reasons. First, there’s a monetary crisis which is similar to what we’ve been going through here in the states. Second, there’s a “unity” problem in 15 countries that use the Euro currency. The Euro countries are [...]
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Overnight Interest Rate Update 10.07.08
Tue, 7 Oct 2008 0:07:21 CDT
Current Yesterday USD 2.36875 1.99625 GBP 5.08125 5.00000 EUR 4.27375 4.10500 JPY 0.91875 0.92500 CHF 3.83333 4.31667 AUD 7.25000 7.40000 CAD 3.75000 3.65000 NZD 9.00000 8.75000
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Chart of the Day: AUD/USD
Mon, 6 Oct 2008 23:49:43 CDT
An updated AUD/USD chart from last week shows how the AUD broke down through support and sold off dramatically.
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Bank of Japan Holds Rate Steady at 0.50%
Mon, 6 Oct 2008 23:33:32 CDT
BoJ policy board left its target overnight call rate steady at 0.50% at its meeting Tuesday. The decision, by unanimous vote, had been widely expected....
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Japanese Yen Gives Back as Asian Stocks Recover
Mon, 6 Oct 2008 23:29:49 CDT
EUR-JPY has rallied as Asian stock markets recover in response to the RBA move. The deep rate cut is seen fostering growth with carry trades supported...
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Reserve Bank of Australia Doubles Down, Cuts Rates by 1%
Mon, 6 Oct 2008 23:18:59 CDT
The Reserve Bank of Australia shocked the markets, issuing a full 100 basis point interest rate cut, the largest since 1992, to bring borrowing costs to...
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Cramer’s Video And Paulson’s Words Of Wisdom
Mon, 6 Oct 2008 23:07:52 CDT
The unprecedented disruptions in the credit markets have caused major problems in the crucial asset-backed commercial-paper market ??? where firms raise cash through the issuing of short-term debt. The current stagnancy of the commercial-paper market, which provides the short-term fuel that keeps corporate America running, is now widely affecting even creditworthy co.???s. Most of them [...]
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Fed To Pay Interest On Depository Institutions
Mon, 6 Oct 2008 23:01:18 CDT
First, have to post the video of the Cramer capitulation:
It is amazing he is … [visit site to read more]
Article Published On GraceCheng.com - visit Grace Cheng Financial News & Opinions for more great content.
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Reserve Bank of Australia Doubles Down, Cuts Rates by 1%
Mon, 6 Oct 2008 22:58:07 CDT
The Reserve Bank of Australia shocked the markets, issuing a full 100 basis point interest rate cut, the largest since 1992, to bring borrowing costs to...
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Focusing On The Long Side For Tuesday
Mon, 6 Oct 2008 22:49:56 CDT
With conditions in U.S. and global financial markets remaining persistently strained, the Federal Reserve announced Monday that it will begin to pay interest on depository institutions??? required and excess reserve balances.
According to Fed the payment of interest on excess reserves will permit the Federal Reserve to expand its balance sheet, give it greater scope to [...]
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Stock Picks And Trade Ideas For Tuesday - EBAY, GOOG, RFMD
Mon, 6 Oct 2008 22:07:48 CDT
We ended Monday above the support lines I drew in Monday morning’s post. Many traders will be looking for a rally on Tuesday, given the extreme action Monday and end-of-day buying that took place. Perhaps some value investors will be looking for (what they consider to be) bargains as well. It may not happen, but [...]
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Crazy Day: Dow Falls 800 Points Then Rebounds And Bank Of America Cuts Forecasts
Mon, 6 Oct 2008 22:00:14 CDT
Chart courtesy of stockcharts ( click to enlarge )
EBAY (EBAY) - The stock is out of control. Not a pretty picture. In downtrend mode. The technical chart shows very bearish sign with the stock below its major moving averages. … [visit site to read more]
Article Published On GraceCheng.com - visit Grace Cheng Financial News & [...]
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Is The Government Playing The Short-Squeeze Game With Your Tax Dollars?
Mon, 6 Oct 2008 21:54:57 CDT
Crazy day on Wall Street once again today; the Dow Jones fell almost 800 points during intra-day trading due to growing fears over the financial crisis and a possible recession. Nearly six out of ten Americans believe another economic depression is likely, according to a poll released by The CNN/Opinion Research Corp. The Dow recovered [...]
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Is Fear Of Crisis Affecting Consumer Spending More Than The Crisis Itself?
Mon, 6 Oct 2008 21:44:59 CDT
This market is oversold in a big way. Get ready for more bear market rallies coupled with a healthy dose of cheerleading and denial by the financial media.
No doubt some talking heads will be describing today???s action as capitulation. Cramer was his consistently confusing self as his reverse course sell [...]
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Monday’s Charting Of S&P 500
Mon, 6 Oct 2008 21:42:13 CDT
While much of the recent focus has been on??constipated credit markets, crumbling share prices and grotesque machinations by the Washington-Wall Street nexus??to prevent white-shoed Ponzi-schemers — er, friends and “supporters” — from choking on their own synthetically-created excrement, developments in the real economy have been anything but sanguine.
In fact, based on the following New York [...]
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Ascending Triangle May See Euro/Swiss Franc Reversal
Mon, 6 Oct 2008 21:36:51 CDT
Using a very short termed 30-minute chart, our eyes have spotted an ascending triangle pattern on EURCHF. After selling off over the last few weeks, the...
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Panic Selling Continues Post-Bailout, World Markets Plunge
Mon, 6 Oct 2008 21:36:08 CDT
The market has an extremely high chance of having hit capitulation, although I do not like how the day formed. I wanted to see an extremely sharp decline, and now a leveled decline that just drifts throughout the day. Nonetheless, buyers did swoop in in the last hour of the day, taking the market to [...]
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Credit Crunch To Defer New Oil Capacity
Mon, 6 Oct 2008 21:34:34 CDT
No Hibernation for these economic bears even after the US Congress passed the $700Billion bailout plan, the second time through. ??Fear spread throughout the world markets as Europe had to act in the wake of its own financial problems with big banks.
When the American Senate added a few popular tax incentives to the bailout bill [...]
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Bank Of America’s Earnings Drop 68%, Cuts Dividend
Mon, 6 Oct 2008 21:32:10 CDT
A Financial Post article, below, reports that tightening credit conditions will force some Canadian companies to defer expansion plans, particularly in the oil sands.?? There has been an expectation that the oil sands will add some 2 mb/d of capacity by 2015.???? It appears such growth will be scaled back.?? If oil prices go lower [...]
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Market Summary: Bailout Bill Does Not Soothe The Market
Mon, 6 Oct 2008 21:21:32 CDT
Today was one of the wildest days that I can remember. ??After the close, Bank Of America (BAC) came out and cut their dividend in half. ??They also saw their net income drop 68%. ?? The stock was off sharply in after hours trading (see chart below)…trading around 29.00 level.
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US Dollar Rockets Higher on Demand for Treasuries, Will the FOMC Minutes Trigger a Sell-off?
Mon, 6 Oct 2008 20:40:12 CDT
The US dollar continued its extensive rally on Monday, but it had little to do with fundamentals given the plunge in US non-farm payrolls for the ninth...
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Japanese Yen the Strongest Currency of Them All?
Mon, 6 Oct 2008 20:38:00 CDT
The Japanese yen was easily the biggest gainer of the day, surging 3.32 percent against the US dollar, nearly 5 percent versus the Canadian dollar, British...
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Commodity Dollars Hit Hard On Broad Deleveraging, Aussie Faces RBA Rate Decision
Mon, 6 Oct 2008 20:33:21 CDT
A broad drop in carry trades along with falling commodity prices weighed heavily on currencies like the Australian dollar, New Zealand dollar, and Canadian...
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Japan: BoJ Leaves Interest Rates Unchanged as Expected
Mon, 6 Oct 2008 20:27:06 CDT
The Bank of Japan (BoJ) as expected left its leading O/N target rate unchanged at 0.5% in a unanimous decision. The statement on monetary policy was broadly unchanged compared to its September statement. BoJ believes growth will remain sluggish for the time being but will eventually recover as the impact...
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Why Defensive Currencies are Still your Friends
Mon, 6 Oct 2008 20:21:54 CDT
FX markets have experienced pronounced shifts on the back of the worsening financial crisis. From implied volatilities we note that investors expect FX movements to remain substantial in the coming months. In this note we answer two essential FX related questions: 1) How should we inter-pret the approval of the...
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AUDJPY Dropped As Much As 13% Yesterday
Mon, 6 Oct 2008 20:21:33 CDT
Surely yesterday was some kind of short-term capitulation across markets: we certainly hope so, as AUDJPY was down as much as 13%+ on the day before the big bounce overnight. The RBA cut a surprise 100 bps - which really shouldn't be surprising considering the market action of late and...
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Forex Carry Rates May Stabilize As Fed Uses New Policy Tool
Mon, 6 Oct 2008 20:20:43 CDT
Under authority granted to the Federal Reserve under the provisions set forth by the $850 billion rescue package, the central bank may now begin paying...
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Carry Trades Overcome Markets
Mon, 6 Oct 2008 20:17:12 CDT
As the dollar inclined yesterday as a result of the major sell-off we witnessed in the markets when the U.S. session opened boosted the greenback, today we are seeing the opposite of that as the currency is losing its strength ahead of Federal Reserve Chairman Ben Bernanke speaking on the...
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DIA - A Little Elliott Wave Into The Close
Mon, 6 Oct 2008 20:04:33 CDT
No, the passage of the TARP did not, so far, lend confidence to the markets.?? Borrowing rates between banks (LIBOR) hit new highs and credit markets are still not functioning properly.?? There have been rumors, and pleas, for a virtual global rate cut.?? I don???t know if enough central banks are on board with the [...]
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British Pound Breaking Below Multi-Year Bullish Channel (Candlestick Weekly Update)
Mon, 6 Oct 2008 19:40:46 CDT
Yesterday, we wrote that the British Pound was positioned “at the bottom of a multi-year bullish channel that has guided the pair since 1999. A daily close...
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Momentum Trading Signal Goes Long AUD/US Dollar
Mon, 6 Oct 2008 19:16:34 CDT
Our Forex Automated Trading Signals bought the Australian Dollar versus the Greenback using the Momentum2 strategy. By looking at the image provided below,...
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Japanese Leading Index Slips to Six Year Low, Fueling Recessionary Concerns
Mon, 6 Oct 2008 19:14:28 CDT
The leading index for Japan fell to a six year low of 89.3 from 91.4 in July, indicating that economic activity has deteriorated considerable since the first half of the year. Furthermore, the coincident index fell in line with expectations as the index slipped to 100.7 from 103.5, which suggests...
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Asia Session Recap
Mon, 6 Oct 2008 19:10:38 CDT
The RBA rate decision is significant as it calls out to other central banks to follow the lead and cut rates in an aggressive manner. It would be wise to keep an eye on the possibility of some type of coordinated cut now that the gauntlet has been thrown to...
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Ebay Announces Two New Acquisitions, Cuts Workforce By 10%
Mon, 6 Oct 2008 19:08:09 CDT
Just when you thought the trading day couldn’t get any weirder… price gaps down strongly (and likely unexpectedly) in the morning, forms a trend day virtually all trading day long, and then destroys the trend-day down structure into the close.?? Let’s look at the intraday 5-minute structure and the sneaky Elliott Wave pattern that formed [...]
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Green Jobs Are Booming
Mon, 6 Oct 2008 19:00:24 CDT
Online auction provider eBay (EBAY) announced Monday two new acquisitions that according to the co. will significantly extend its leadership position in online payments and classifieds.
In payments, the company is acquiring the U.S.-based online payments business Bill Me Later Inc., a leader in the digital payments industry, for $820 million in cash plus approx. $125 [...]
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Euro Open: Forex Markets Reward Australian Interest Rate Cut - Who's Next?
Mon, 6 Oct 2008 18:58:21 CDT
The Australian Dollar rallied to test 0.7300 having traded as low as 0.6985 in US hours as the Reserve Bank of Australia shocked the markets, issuing a full 100 basis point interest rate cut. The market cheered on the announcement: US stock futures rose while Treasuries and the Japanese Yen...
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Trichet Promises the Liquidity Necessary to Grease Credit Markets
Mon, 6 Oct 2008 18:39:49 CDT
European Central Bank President Jean-Claude Trichet issued a statement assuring the public that the bank will indeed provide the liquidity necessary to...
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Bank of Japan Holds Rate Steady at 0.50%
Mon, 6 Oct 2008 18:06:19 CDT
BoJ policy board left its target overnight call rate steady at 0.50% at its meeting Tuesday. The decision, by unanimous vote, had been widely expected. The BoJ maintained its assessment of the economy as "sluggish," indicating in its statement that "while carefully monitoring movement in global financial markets, we will...
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FX Overnight Briefing
Mon, 6 Oct 2008 17:48:31 CDT
Australia's central bank cut its benchmark cash rate 100 basis points to 6.0 percent on Tuesday, a greater-than-expected cut as turmoil in global markets clouded the economic outlook while tightening financial conditions.
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Asian Market Update
Mon, 6 Oct 2008 17:35:55 CDT
Major FX pairs remained rangebound for much of the Asian session before Reserve Bank of Australia delivered a shot heard around the world. In what is rumored to mark the start of a coordinated global easing, Aussie central bank surpassed consensus estimates of a 50bps cut, slashing overnight lending rates...
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Trade Desk Thoughts - Japan Overnight Call Rate
Mon, 6 Oct 2008 17:31:45 CDT
The Bank of Japan has kept the Overnight Call Rate unchanged at 0.50%. It is the 23rd straight month the bank has kept rates on hold. In the banks words, the economy has now become 'sluggish' in the face of high commodity prices. In the past, the bank had announced...
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Euro, British Pound Plummet On European Financial Crisis Concerns, Intervention On the Way?
Mon, 6 Oct 2008 17:24:03 CDT
If you thought financial market conditions were bad in the US, take a look at Europe.
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Credit markets still tight as stocks plunge
(AP)
Mon, 6 Oct 2008 17:23:51 CDT
AFP - A global recession can be avoided with a coordinated plan to restore market confidence shattered by the US sub-prime mortgage crisis, the former International Monetary Fund chief said Tuesday.
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Stock Indices, ETFs Rebound Off Lows, But Fear Still Rules
Mon, 6 Oct 2008 17:18:02 CDT
“Job creation” is always a winning political phrase, but it’s especially powerful in tough times like these. And though the campaigns may vary on strategy, one thing is clear in the U.S. and around the world: green jobs are booming.
Last Thursday, the U.S. Conference of Mayors released a study predicting 4.2 million new domestic jobs [...]
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Reserve Bank of Australia Doubles Down, Cuts Rates by 1%
Mon, 6 Oct 2008 17:09:22 CDT
The Reserve Bank of Australia shocked the markets, issuing a full 100 basis point interest rate cut, the largest since 1992, to bring borrowing costs to 6.00%. RBA Governor Glenn Stevens said the move owed to "a material change" in the risk to expectations for growth and inflation as international...
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Forex Trading Commentary: Contagion Has Spread To European Financial Sectors
Mon, 6 Oct 2008 17:09:07 CDT
The major market indexes crumbled today in a continuation of the volatility we???ve seen for a few weeks now, and it seemed like there were few places for exchange traded fund (ETF) investors to go.
As an indicator of how things were today, the Volatility Index (^VIX)hit an all-time high. The index has been in existence [...]
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Trade Desk Thoughts - RBA Cash Rate
Mon, 6 Oct 2008 16:50:48 CDT
The Reserve Bank of Australia continues the cutting cycle as the economic expansion cools and the business cycle peaks. The central bank cut for a second time this year, after the bank cut at the beginning of September, 25 basis points to 7%. Despite the analyst expectations of a 50...
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US Stock Market Close
Mon, 6 Oct 2008 16:10:02 CDT
Euro
The euro depreciated sharply vis-??-vis the U.S. dollar today (Monday) as the single currency tested bids around the US$ 1.3470 level and was capped around the $1.3705 level. The common currency reached its lowest level since 22 August. European leaders convened over the weekend and decided not to compile a massive coordinated bailout [...]
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Waiting For The Two Central Banks
Mon, 6 Oct 2008 16:05:29 CDT
Overall, the market is now waiting for the two central banks to announce the interest rate policy. Both the Bank of Japan and Reserve Bank of Australia's actions will have a profound effect over the currency market in the following period. In the meantime in the Asian session, the currency...
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Yen, Gold ETFs Surge While Commodities Tumble
Mon, 6 Oct 2008 16:00:44 CDT
At 3:30ET, this is what the market internals looked like:
MARKET INTERNALS UPDATE AT 3:30PMET
-?? NYSE volume 1.4B shares, about 35% above its three-month average; decliners lead advancers by 13.8:1.
- NASDAQ volume 2.9B shares, about 60% above its three-month average; decliners lead advancers by 6.7:1.
Quite a day, with the VIX (^VIX) reaching 58, the TRIN going [...]
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Australia And Japan Inject Over $11 Billion
Mon, 6 Oct 2008 15:33:59 CDT
The central banks of Australia and Japan have pumped more than $11 billion into their financial systems to ease their money market rates, which were close to near record highs as banks hoard their cash reserves. The Bank of Japan has added approximately 1 trillion yen, or $9.8 billion dollars,...
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EUR/USD: The Euro, down to a 14-month low
Mon, 6 Oct 2008 15:09:00 CDT
FXstreet.com (Barcelona) – The Euro has been declining continuously for two weeks and is now reaching its 14 month-low, a level 14% below July’s highs , as Eurozone’s financial problems come to the forefront.
According to Cornelius Luca, economist at Global Forex Trading, Trichet’s speech last week opening the doors for a rate cut have weighed on the European Currency: “There was a fundamental shift in the outlook for the EUR/USD last week after ECB President Trichet signaled to the markets that he is ready to cut interest rates. At this point, it is realistic to expect that the ECB to ease monetary policy in November if not sooner.”
Ever since the European currency has been depreciating against the Dollar, ansd specuially sharp in the beginning of the week, the market wonders how low can the Euro go : “Based upon purchasing power parity, the Euro does not hit fair value until approximately 1.15. Purchasing parity has its flaws because it only compares the price of a specific good or basket of goods and it does not take into consideration the quality of the goods. Nonetheless, understanding what the PPP value of the EUR/USD is allows us to understand possible value points for the Euro,” affirmed Luca.
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US Dollar Rockets Higher On Demand For Treasuries, Will The FOMC Minutes Trigger A Sell-Off?
Mon, 6 Oct 2008 14:45:52 CDT
The US dollar continued its extensive rally on Monday, but it had little to do with fundamentals given the plunge in US non-farm payrolls for the ninth consecutive month on Friday. Instead, we've seen that the risk aversion pervading the market has led traders to sell assets like stocks for...
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New York Session Recap
Mon, 6 Oct 2008 14:32:34 CDT
It was all about stock market volatility in the NY session as a rout is US equities sent JPY crosses into the basement. US stocks ended the day -4% lower and this was a relief given that the Dow had plunged a whopping -800 points - or nearly -8% -...
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Another Black Monday Stock Crash, AUD Plummets
Mon, 6 Oct 2008 14:30:02 CDT
U.S. Dollar Trading (USD) with sentiment souring over the weekend Monday was always going to be a negative event. The market didn't disappoint with a record plunge in the Dow Jones causing mayhem in Commodities and FX markets. Huge deleveraging saw carry trades and commodities sharply lower. As a result...
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Forex Exchange Morning Report
Mon, 6 Oct 2008 14:25:10 CDT
Panic continued to grip global markets in London/NY trade, with cash hoarding and attempts to preserve capital proving positive for USD Index as it punched to new highs dating to Aug07. The falls in Asian equities Monday were easily exceeded in Europe and the US, with DJIA sitting -725pts/-7% in...
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JPY and USD Rally As Financial Markets Enter Panic Mood
Mon, 6 Oct 2008 14:20:47 CDT
In NY volatile trading Monday, the dollar and yen rallied against other key currencies, while international stocks and commodity prices tumbled as the credit-market crisis and debt deflation worsened. Gold prices rose as the financial markets entered panic mood with European stocks down the most since 1987 and credit spreads...
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Canada Ivey PMI increases strongly against expectations in September
Mon, 6 Oct 2008 14:12:00 CDT
FXstreet.com (Barcelona) – Canadian Ivey Purchasing Manager’s Index has posted a considerable increase in September, against expectations of a slight decline.
The Ivey Purchasing Manager’s Index has jumped 9.5 points to 61.0 from 51.5 in August, while market analysts had advanced a reading around 51.0 for September.
The employment index has dropped to 49.2 in September, while inventories declined to 50.8, and supplier deliveries rose to 44.6. Prices picked up to 74.6.
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NASDAQ Fibonacci Targets Hit
Mon, 6 Oct 2008 14:03:33 CDT
An hour left to go in this brutal day...every time theres a little uptick, the...
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Stretch Armstrong
Mon, 6 Oct 2008 14:03:33 CDT
God Almighty............the Dow down nearly 800 points.......... I think Im going...
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Canada Ivey Purchasing Managers Index up to 61.0 in September
Mon, 6 Oct 2008 14:00:20 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Canada building permits plunge in August
Mon, 6 Oct 2008 12:44:00 CDT
FXstreet.com (Barcelona) – Canadian housing sector’s activity seems likely to slow down severely over the next months, according to the latest building permits reading, which posted a well larger than expected decline, with lower levels in all provinces and in all sorts of buildings, according to data released by Statistics Canada.
The value of building permits has declined 13.5% from July to August, to a total $5.6 billion Euro, well below the 1.4% decline forecasted by the market analysts. Year on year, building permits declined 0.7%.
Permits in the residential sector have gone 9.3% down from July to August, weighed by a 17.5% drop in mult- family properties, single family houses declined 3.8% in August. Permits in the non-residential sector have fallen by 19.3%, its second decline in three months.
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Canada Building Permits plunge 13.5% in Aug
Mon, 6 Oct 2008 12:31:22 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Bank of America to spend up to 8.4 billion on Countrywide
(AFP)
Mon, 6 Oct 2008 11:57:22 CDT
AP - The jammed credit markets barely budged Monday as governments around the world scrambled to prop up their failing banks and investors waited for details on how, exactly, the Treasury will go about buying $700 billion of U.S. banks' mortgage assets.
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Unfinished Business on the Downside
Mon, 6 Oct 2008 11:56:21 CDT
While the cash SPX violated its 62 support level of the 20022007 bull phase,...
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Nanoviricides
Mon, 6 Oct 2008 11:56:20 CDT
Nanoviricides market cap has taken a beating in the past few days due to the global...
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PLENTY OF BLAME TO GO AROUND
Mon, 6 Oct 2008 11:56:11 CDT
The finger pointing has only just begun, and theres lots of targets to point at...
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Two Bond Blogs to Read
Mon, 6 Oct 2008 11:56:10 CDT
I joke about being a Your one stop VIXcentric view of the universe, but since...
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Euro at 1.35, USDJPY Breaks 103 Whats Going On
Mon, 6 Oct 2008 11:55:49 CDT
The US 700B bailout plan will not do the trick at least thats how the currency market feels this morning...
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A Replay Of 1929 Dont Count On It
Mon, 6 Oct 2008 11:55:46 CDT
Today some have questioned whether we could have another 1929style Depression...
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Mortgage Lessons From Down Under: US Politicians Were Wrong to Pimp The Homeownership Fraud
Mon, 6 Oct 2008 11:55:46 CDT
Lessons To Learn From Mortgage Lending in Australia: Maybe only a friendly foreigner...
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Thomas Vass: If Obama wins ... build infrastructure gains
Mon, 6 Oct 2008 11:51:09 CDT
Obama is expected to create a national infrastructure reinvestment bank to...
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Gregg Early: If McCain wins ... get defensive with Elbit
Mon, 6 Oct 2008 11:51:09 CDT
If John McCain becomes president, we would look to Elbit Systems NSDQ:...
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Good Greif
Mon, 6 Oct 2008 11:50:36 CDT
If you look at my post from a couple of weeks ago, youll see a variety of short...
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The Real Test
Mon, 6 Oct 2008 11:50:36 CDT
I am not reading any comments right now, so please dont expect any kind of response...
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Bank of America settles suits over bad mortgages
(AP)
Mon, 6 Oct 2008 11:49:07 CDT
AFP - Bank of America said Monday it was ready to spend up to 8.4 billion dollars to restructure the loan portfolio of mortgage giant Countrywide following settlement of a lawsuit targeting the firm's "predatory" lending practices.
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Different Fates: Stocks Plunge But US Dollar Surges On High Demand
Mon, 6 Oct 2008 11:40:46 CDT
The tide has turned for the Japanese yen as the credit market collapse is sending the currency way back up, and exchange traded funds (ETFs) will follow.
This same credit market collapse that sent Lehman Brothers down also sent borrowing costs sky high in Europe and is now beginning to unwind the carry trade.
Ye Xie for [...]
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One-Minute Elliott Wave Example On Monday???s DIA
Mon, 6 Oct 2008 11:19:16 CDT
Mayhem ensues in the financial markets again today (Monday). $700 billion bailout plan signed into law? That’s not reassuring to Main street anymore. Central banks working hard to inject liquidity into the markets? No visible effect. Governments to insure full bank deposits in some European countries? That’s nice but people are still nervous, so scared. [...]
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Dow, S&P, ETFs Plummet Amid Global Selloff
Mon, 6 Oct 2008 11:18:10 CDT
I know - probably the last thing you want to read on a day when the US Equity Indexes are down over 5% is an example of the Elliott Wave Theory applied to a one-minute chart of the DIA (DIA), but sometimes it helps to envision structure in an environment of perceived chaos and randomness.?? [...]
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No Market Bottom In Sight
Mon, 6 Oct 2008 11:17:16 CDT
Wall Street opened this morning and resumed its descent as stock and exchange traded fund (ETF) investors remain worried about the global credit crisis and what looks like a broad global selloff, despite the passage of a $700 billion bailout last week.
Fears center on the fact that the bailout effects aren???t going to be seen [...]
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S&P 500 Damage Done On Monthly Chart
Mon, 6 Oct 2008 11:16:37 CDT
I had plans to write a stock review today, but the current market conditions make that seem a little foolish. I sit here watching the stock market continue to crash, pulling down all stocks, regardless of value or prospects. At this point I see no reason to sell my stock holdings as the horse has [...]
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What’s The US Treasury Thinking?
Mon, 6 Oct 2008 11:15:35 CDT
Today’s equity decline undersay has stunning ramifications for the larger time-frame structure of the S&P 500 and other US Equity Indexes - we’re now at levels not seen since 2003.?? Let’s take a quick look at this structure to see where this takes us.
S&P 500 Monthly Chart:
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Financial Crisis: Painkillers Vs. Cures
Mon, 6 Oct 2008 11:01:46 CDT
Are there any firing neurons at the the US Treasury??? Ryan isn???t giving me any hope, and Paulson???s are gone, I???m sure.
TREASURY???S RYAN: LIQUIDITY PROBLEMS ARE AT THE HEART OF THE CURRENT CRISIS, CONFIDENT THE US WILL EMERGE FROM THE CRISIS WITH STRONGER MARKETS
- Policymakers have to use all of the tools at their disposal [...]
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Record High VIX Calling For A Market Bottom?
Mon, 6 Oct 2008 11:00:39 CDT
On Friday the markets fell despite (or in response to) the passage of the bailout bill, today (Monday) we’re experiencing a global sell off,, and domestically the Dow (^DJI) is down by about 4% (at the time I was writing this) and the S & P is down by about 5%.?? Meanwhile the credit [...]
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Short-Term Outlook Of Gold
Mon, 6 Oct 2008 11:00:22 CDT
Today the markets experienced fear levels only seen three other times since the crash of 1987. The CBOE Volatility Index (^VIX) hit an intraday high of 56.32 about one hour ago as the Dow (^DJI) crashed through 10,000 and the S&P 500 was in danger of breaking 1000. Since that time the markets have firmed [...]
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Earnings Preview For Oct 7 - 10
Mon, 6 Oct 2008 10:06:49 CDT
As speculators we are often very quick to impose our theories on the market - we think we know better. Yet, sometimes it is important to take a breath, look at the market, and see what it is telling us. Remember that the market prices in our expectations, not reality. Therefore, the best trades have [...]
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The financial crisis hits Europe
Mon, 6 Oct 2008 9:43:00 CDT
FXstreet.com (Barcelona) – European Governments are acting fast in order to prevent the worst consequences of the global financial crisis hitting their economies, among fears of negative news from several banks in Europe, stock markets have already been affected by gloomy perspectives and the Euro is dropping to long term lows against the Dollar and the Yen.
Asian Markets have been the first ones to feel the impact, with the Nikkei 225 index has closed the day with a 4.25% fall, Shangai’s stock exchange has declined 2.78% in the first hour after the opening. In Australia, the Standard & Poor’s/Australian Stock exchange 200 in Sydney has posted a 3.3% decline.
In Europe the session seems to be heading for another “Black Monday”, as the London FTSE stock market plummeted 5% in the first minutes of trading, dropping 475 points to 4375, Frankfurt’s stock exchange has also opened with a 4.40% decline, Paris stock market has plunged 4.82% and Milan posted a 3.13% decline minutes after the opening.
Banks, as expected, have been dragging down the markets, in England HBOS’ stocks fell 16%, while the Bank of Scotland posted a 12% decline, while in Brussels and Amsterdam, stocks from the Fortis Bank have been suspended to evaluate the banks acquisition by BNP Paribas.
The Euro has also followed the tide, and has continued running down slope against the Dollar, posting the 14-month low against the Dollar, and a two year low against the Yen, in a signal that the market does not feel at ease with the lack of a common economic plan for the whole European Union
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Volatility Index VIX Sets New Record Of 50.75
Mon, 6 Oct 2008 9:39:03 CDT
Alcoa (AA) will “officially” kick off earnings season when it reports on Tuesday afternoon. The aluminum maker is expected to announce profits of 60 cents per share.
Joining AA throughout the week will be fellow S&P 500 members: Costco (COST), Chevron (CVX), General Electric (GE), Host Hotel & Resorts (HST), Monsanto (MON), … [visit site to [...]
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Gold: Safe Haven Or A False Idol?
Mon, 6 Oct 2008 9:20:29 CDT
Given market conditions, the levels of the VIX (^VIX) continue to suggest an orderly selloff, with the VIX still being held back by a strong gravitational pull.
If the DJIA (^DJI) fails to hold the psychologically important 10,000 level, we might see more in the way of anxiety.
Genuine panic should put 55 and perhaps 60 in [...]
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Will Index ETFs Bounce Off Support?
Mon, 6 Oct 2008 9:16:52 CDT
As the financial crisis continues, investors are searching for safety anywhere they can get it. Real estate is obviously out. Equities are getting hit. The currency markets are roiling.
Throughout history, gold has acted as a safe haven in times of economic stress.
Should you be investing in it?
Investors around the world are flocking to the yellow [...]
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Buy, Sell Or Hold: Bank Of America
Mon, 6 Oct 2008 9:15:23 CDT
Looking at some of the index ETFs, we may have some support here. Or maybe not. At any rate, I have been getting out of remaining short positions and puts. Five year charts:
SPY (SPY):
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Credit Crisis Safety Plays: Three Steps To Take To Make Sure Your Bank Is Safe
Mon, 6 Oct 2008 9:09:19 CDT
The U.S. financial-services sector is undergoing the broadest restructuring of a single industry in the history of Corporate America, and Bank of America Corp. (BAC) has positioned itself to emerge as one of three clear frontrunners. Indeed, along with Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM), Bank of America could [...]
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Ignore The Economic Reports, Even If You Can???t Ignore The Pain
Mon, 6 Oct 2008 9:00:31 CDT
Seeing banks such as Wachovia Corp. (WB) get sold or Washington Mutual Inc. fail is scary for retail banking customers. But there are simple steps you can take to protect your bank assets.
Our reader recently wrote to say:
???I???m panicked. After watching the news and several banks fail, how can I know [...]
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Active Mutual Funds Getting Beat Up Compared To Indices
Mon, 6 Oct 2008 9:00:10 CDT
The economic releases now (and for the immediate future) will be weak ??? that???s a given. Therefore, investors should give them a passing glance, evaluate the consequences and potential remedies, and move on.?? In fact, the bigger picture should focus on how to correct these assorted problems.
Expect plenty of over-analysis of the provisions of [...]
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EU Sentix Investor Confidence Index dips to -27.8 in Oct vs -20.2 in Sept
Mon, 6 Oct 2008 8:33:33 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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A Replay Of 1929? Don’t Count On It
Mon, 6 Oct 2008 8:30:30 CDT
Actively managed mutual funds sound like less and less of a good idea in the wake of the financial mess, and it could wind up driving investors to exchange traded funds (ETFs).
Matthew Hougan for Index Universe says that fund managers can sidestep the blow-ups in the market, and can pull out and take cash if [...]
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Expected US Inflation At A Six-Year Low (Unadjusted)
Mon, 6 Oct 2008 8:15:57 CDT
Today some have questioned whether we could have another 1929-style Depression. The answer is no - at least, it shouldn’t happen.
Then we had over 25% unemployment; now it’s 6% and could move … [visit site to read more]
Article Published On GraceCheng.com - visit Grace Cheng Financial News & Opinions for more great content.
[...]
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German Government will bailout bank deposits
Mon, 6 Oct 2008 7:11:00 CDT
FXstreet.com (Barcelona) – German Chancellor Angela Merkel is moving fast in order to avoid the worst consequences of the financial turmoil hitting German private banking, and she has assured her determination to guarantee bank deposits.
After a meeting of the prime minister’s of the largest European economies, UK, Italy, France and Germany, the leaders committed themselves to act locally in order to shore up failing financial institutions and banks, rather than signing a common plan for the whole European Union. Nevertheless, a global economic summit has been scheduled to examine the international financial system’s health.
Merkel made public her commitment to work in a bailout plan after the announcement of the approval of a EUR 50 Billion package to save Hypo Real State Bank, after the criticism against Ireland for having announced similar intentions few days ago.
European governments are rushing to approve measures to safeguard their economies from the contagion of the banking failure, as fears of European Banks suffering the same problems US banks have gone through, are increasing by the Minute. After Hypo Real State’s case in Germany, banks and financial institutions from France, Italy, Belgian and Iceland are expected to shake the markets today.
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The Bailout: What Does Paulson Do Now?
(BusinessWeek Online)
Mon, 6 Oct 2008 7:08:43 CDT
AP - Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. is agreeing to pay more than $8 billion to modify hundreds of thousands of loans to keep people from losing their homes.
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Citi Left Deserted As Wachovia Falls For Fargo
Mon, 6 Oct 2008 7:00:37 CDT
10-year TIPS-derived expected inflation
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U.S. Morning Call for Monday, October 6, 2008
Mon, 6 Oct 2008 6:42:06 CDT
The European DJ Stoxx 50 this morning is trading 5.23 on increased concern about the credit crisis in Europea...
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Weekly Review of Stock Charts
Mon, 6 Oct 2008 6:30:24 CDT
After a quiet 2 weeks of market action its time to catch up to what the...
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The Fallen Mighty
Mon, 6 Oct 2008 6:30:06 CDT
Im going to pull an all nighter again because I want to be fully prepared...
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Seasonality And Other Indicators Are In Favor of The Bulls
Mon, 6 Oct 2008 6:25:16 CDT
This past week has been chaotic for the markets, for investors and for Citigroup (C). Announced on Monday, Wachovia???s (WB) operations excluding Wachovia Securities and Evergreen Asset Management were sold to Citigroup. The deal was brokered by the FDIC over the weekend of September 28th and 29th to prevent any further shockwaves in the financial [...]
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Today’s Weakness In European Stocks Is Relatively Controlled
Mon, 6 Oct 2008 5:32:53 CDT
The markets put together one of the worst weeks in recent history and it is now time for a fresh five trading days to begin. Monday also marks the beginning of the first full trading week of the final quarter and of October. As you may already know, October is often referred to as the [...]
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This Week's Data and Events
Mon, 6 Oct 2008 5:11:52 CDT
The demand for funding out of Europe and ongoing liquidation of yen crosses pushed the dollar sharply higher versus the European currencies last week. While profit taking should be seen this week, the outlook for the currency remains strong. The risk to it is the equity markets, which have fallen...
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October 6 Break Out Video List Market Technical Analysis
Mon, 6 Oct 2008 5:01:29 CDT
This Stalking Stocks commentary video shows several candidates for break out or short sales for at least short term gains by buying the break or selling the break down on good volume and closing at least some on the first day. Today including: SBUX, STE, AUDC, RIMM, BXS, NILE, CEG, TWM, SDS, DUG.
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For How Long, Fed and ECB Will Hold Rates Steady?
Mon, 6 Oct 2008 4:51:07 CDT
The U.S. Congress has finally approved the economic recovery plan, but more time is needed to have the economy moving again in the United States. In effect, consumes are fading, while the number of unemployed is increasing. In Europe, at the same time, the financial crisis is just worsening, as...
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MrSwing Lite Swing Trade Picks
Mon, 6 Oct 2008 3:15:20 CDT
Some Potential Swing Trading Opportunities for today...
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Weekly Review keep bailing, this market is sinking fast
Mon, 6 Oct 2008 3:00:38 CDT
Another week for the record books. Congress failed to pass a bailout bill on Monday...
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Sunday Night Observations
Mon, 6 Oct 2008 3:00:38 CDT
Its Sunday night and Ive just gone through my charts. My bearish stance of...
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Bookkeeping: Weekly Changes to Fund Positions Year 2, Week 9
Mon, 6 Oct 2008 3:00:17 CDT
Year 2, Week 9 Major Position ChangesFund positions of 1.0 or greater can be found...
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Financial Geekery Minilinkfest
Mon, 6 Oct 2008 3:00:03 CDT
When the market is frustrating or weird or mostly untouchable, we find thats usually the best time to geek out...
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Lesson of I35W Bridge: Private Enterprise Works
Mon, 6 Oct 2008 2:59:54 CDT
So what is the primary lesson of the St. Anthony Bridge I35W bridge in...
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GMI: 0; GMIR: 0; Current financial mess predicted in NYT in 1999; T2108 at extreme low: 6; My GMI indicators kept me out of this declinehow about you
Mon, 6 Oct 2008 2:59:35 CDT
On September 30, 1999, the New York Times printed an article about pressure from the Clinton Administration on Fannie Mae...
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Are We Still Sure Were Not in a Recession More on the Employment Situation
Mon, 6 Oct 2008 2:59:34 CDT
I hate to pile on, perhaps in a repetitive fashion given Jims post, but a mere...
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Long Term review
Mon, 6 Oct 2008 2:59:19 CDT
Everyone agrees that the 1929 top ended a Supercycle, a multidecade bull market...
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Where and How am I Investing in EarlyStage Today
Mon, 6 Oct 2008 2:59:12 CDT
Much has been written recently about VC and startup angst in the wake to todays and likely tomorrows poor market conditions...
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S&P Futures Drop As Credit Crisis Deepens
Mon, 6 Oct 2008 2:48:12 CDT
“Proprioception” is a word that Macro Man has only ever heard inside of a gym, usually in the context of balancing on some sort of ball or hemisphere. It refers to the body’s sense of itself, and how different areas of the body relate to each other. You can get a sense of your own [...]
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US Economic Indicators Preview
Mon, 6 Oct 2008 1:51:54 CDT
The FOMC minutes might show an intense discussion on the consequences of the financial market turmoil and the potential collapse of major financial institutions. Although the risk assessment in the last FOMC statement was balanced, more emphasis was put on the economic risks. And despite indicating that the inflation outlook...
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EMU Economic Indicators Preview
Mon, 6 Oct 2008 1:47:11 CDT
The German trade balance might have rebounded somewhat in August, after it had declined unexpected heavily in July. However, the German current account is likely to have continued deteriorating in August. French industrial production is expected to have suffered a setback in August, because all correlated indicators deteriorated. Italian industrial...
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Weekly Technical Commentary
Mon, 6 Oct 2008 1:41:56 CDT
We have completely underestimated the need for US banks and funds to repatriate all forms of non-dollar holdings to shore up creaking edifices at home. Adding to the woe is the realisation of Eurozone citizens that their financial institutions are not immune to the global meltdown. One wonders where they...
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Weekly Forex Signals: GBP/USD
Mon, 6 Oct 2008 1:27:34 CDT
The U.K. currency declined to 1.7587 and we can see the drop of 4 percent. Technically the market trend is still clear downtrend as we can see strong supply in the market, based on technical indicators like RSI, which is in a bearish direction, MACD crosses the signal line and...
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Economics Weekly: Bank of England Faces Tough Decision
Mon, 6 Oct 2008 1:16:19 CDT
The Bank of England Monetary Policy Committee (MPC) arguably faces its toughest test this week, facing rising pressure to lower interest rates at a time when inflation, its official remit, is at decade highs and still to peak. We expect a close decision but for the MPC to ultimately decide...
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AIG to sell Thai bank, consumer finance units
(Reuters)
Sun, 5 Oct 2008 23:36:54 CDT
BusinessWeek Online - With the House of Representatives' Oct. 3 passage of the Treasury's $700 billion plan to stabilize the financial markets by buying up troubled mortgage-related assets, you could almost hear the sigh of relief spreading throughout Washington and Wall Street. After two weeks of nearly nonstop negotiations in which the bill repeatedly appeared to flounder, it was quickly passed on to President George W. Bush, who signed it into law within hours.
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Waiting For The Counter-Trend Stock Rally
Sun, 5 Oct 2008 22:44:22 CDT
From all accounts of news we are seeing cross the wires tonight the credit situation is still worsening. Confidence is quickly deteriorating in not only the US markets, but global markets as well.
Europe is scrambling to prevent bank runs by issuing statements that the bank deposits will be guaranteed by the Government. This following the [...]
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Bank Of America Agrees In $8 Billion Settlement Over Bad Mortgages
Sun, 5 Oct 2008 22:26:55 CDT
The nature of Friday’s sell-off, coming as it did after a morning rally and House passage of the bailout bill, indicates we have more downside before we hit bottom. At the same time, oversold conditions make it difficult to find good short entries. To review a few charts:
- Russell2000 index ETF IWM (IWM) broke decisively [...]
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700 To 1000 Hedge Funds May Disappear By Year-End
Sun, 5 Oct 2008 22:23:47 CDT
In a deal that could be worth more than $8.6 billion, Bank of America (BAC) according to WSJ, has agreed to settle claims brought by state attorneys general regarding certain risky loans originated by Countrywide. The settlement applies to borrowers who obtained their mortgages through Countrywide, which Bank of America acquired on July 1 at [...]
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Wells Fargo, Wachovia Deal Temporarily Suspended By Judge???s Order
Sun, 5 Oct 2008 22:02:35 CDT
The lightly-regulated hedge fund sector is known for its lack of transparency and liberal use of borrowed money. Given that, most people would naturally have assumed that these operators would be at the forefront of the kind of epic financial disaster that has unfolded over the past year or so.
Yet up until recently, that has [...]
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Time To Go Long On The Ultra S&P500 ProShares?
Sun, 5 Oct 2008 21:45:49 CDT
Wachovia Corporation (WB) is currently at the centre of a fierce legal fight brewing between Wells Fargo (WFC) and Citigroup (C) over the argument of who has the right to buy the beleaguered bank.
In a deal arranged by the FDIC on Sept.29, Citi agreed to acquire Wachovia???s banking operations for $2.2 billion, or $1 a [...]
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IMM Positioning - Net Long JPY Positions Are Built Further
Sun, 5 Oct 2008 21:41:52 CDT
The latest IMM data covers the week from September 23 to September 30 and were consequently gathered on the day following last weeks rejection of the US bailout plan by Congress, and thereby at a time when there was still uncertainty about the plan.
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Where Did I Go Wrong With SoundBite Communications?
Sun, 5 Oct 2008 21:02:55 CDT
It looks as though the Ultra S&P500 ProShares (SSO), 2x Long the SP500 is completing wave 3. It looks as though it’s ready to test 43 level. I then think it … [visit site to read more]
Article Published On GraceCheng.com - visit Grace Cheng Financial News & Opinions for more great content.
[...]
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Shorting Opportunity In Cellcom Israel
Sun, 5 Oct 2008 21:02:50 CDT
It’s been about two months now since I advocated selling your full position, if you had one, in??SoundBite Communications (SDBT), a provider of on-demand customer contact solutions.
In those couple of months I’ve had time to reflect upon what went wrong with my investment thesis in SoundBite, what I learned from the debacle, … [visit site [...]
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The Uncertainty Principle
Sun, 5 Oct 2008 19:23:29 CDT
If markets are forced to choose between a known negative and an uncertainty they will favor the negative. The sub-prime debacle and its dire effects on the American financial system have been on full display for more than a year. The attempts of the Federal Government and private investment to...
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Stock Trading Ideas For The Week Ahead
Sun, 5 Oct 2008 19:05:00 CDT
A reader just made me aware of a perfect shorting opportunity in Cellcom Israel (CEL). Now would actually be a perfect time to enter a short position to be held for at least 3-5 days. Using the … [visit site to read more]
Article Published On GraceCheng.com - visit Grace Cheng Financial News & Opinions for [...]
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State Budgets Collapsing; Funding Absent
Sun, 5 Oct 2008 19:00:45 CDT
Last week I mentioned here in one post that some countries were about to enter into recession. On Friday, we have received the confirmation that France is the first one. The gross domestic product of the second largest economy of the euro zone will have fallen 0.1% in the third quarter, having recorded a contraction [...]
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Weekly Commodities Summary
Sun, 5 Oct 2008 19:00:34 CDT
Massachusetts has joined California in approaching the federal government for emergency funds to deal with cash flow problems.?? In the case of MA, the state indicated a possible need for $7B in emergency loans.?? Massachusetts faces a $233M shortfall in revenue for its first fiscal quarter due to a slower economy according to a brief [...]
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Regulator says Fannie, Freddie might sell bad assets
(Reuters)
Sun, 5 Oct 2008 13:43:47 CDT
Reuters - American International Group Inc (AIG) is to sell its Thai consumer finance businesses, including AIG Retail Bank and AIG Card, the head of the bank said on Monday.
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Mortgage forgiven for woman, 90, who shot herself
(AP)
Sun, 5 Oct 2008 9:23:04 CDT
Reuters - Fannie Mae and Freddie Mac may sell some bad assets to the Treasury Department but a decision has not yet been made, the regulator of the two mortgage finance companies said on Sunday.
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Weekly Technical Strategist
Sun, 5 Oct 2008 3:10:55 CDT
EUR's medium term downside pressure continues to be supported by negative closes recorded by its quarterly, monthly and weekly charts and the fact that a fresh leg of decline was triggered by a loss of its YTD low at 1.3882 on Friday following the completion of its nearer term recovery...
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Euro Can You Spare a Dime?
Sat, 4 Oct 2008 7:50:18 CDT
This week US government debt breached the $10 Trillion barrier for the first time in history of the republic. Non Farm payrolls lost 159K jobs. The Congress passed the biggest boondoggle against the will of 9 out of 10 the voters it represents. And yet the dollar rallied to yearly...
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Allianz, others consider buying AIG's Japan units: reports
(AFP)
Sat, 4 Oct 2008 2:52:04 CDT
AP - Mortgage finance company Fannie Mae said it is forgiving the mortgage debt of a 90-year-old woman who shot herself in the chest as sheriff's deputies attempted to evict her.
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AIG to sell Japanese life insurance units
(Reuters)
Sat, 4 Oct 2008 1:14:39 CDT
AFP - Germany's Allianz Group and other major insurers are considering buying American International Group's three life insurance units in Japan, news reports said Saturday.
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Forex Trading Weekly Forecast
Fri, 3 Oct 2008 20:00:01 CDT
The US dollar ended the week on a rather strong note despite the release of disappointing non-farm payrolls, as the Treasury's Troubled Asset Relief Program (TARP), better know as the bailout bill, was finally approved by both the House and Senate. Looking ahead to next week, there will be limited...
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This Week's Market Outlook
Fri, 3 Oct 2008 19:50:40 CDT
After an ugly balk on Monday, the US Congress has passed the Troubled Asset Relief Program (TARP). The main thrust of the legislation is to allow the US Treasury to buy illiquid mortgage-backed securities (MBS) from banks and other financial institutions, removing the problematic assets from their balance sheets. The...
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Market Week Wrap-up
Fri, 3 Oct 2008 19:43:29 CDT
In currencies the focus has remained on the credit freeze in the US as money flows to the relative safety of shorter-dated Treasuries. The curve is steeper with the US two-year yield falling to 1.85%. The US three-month TED spread traded briefly traded above 350 basis points for the first...
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2 firms selected for mortgage securities program
(AP)
Fri, 3 Oct 2008 17:39:51 CDT
Reuters - American International Group Inc, plans to sell its three Japanese life insurance businesses, an AIG spokesman said on Saturday, in sale Japanese media estimated could top $9.5 billion.
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US House approves modified bailout plan
Fri, 3 Oct 2008 17:27:00 CDT
FXstreet.com (Barcelona) – The US House has approved Bush’s $ 700 Billion Bailout Plan to save the US financial market in the second attempt after some modifications, including tax cuts, were introduced to it, in a improvised reaction to revive it after it was rejected on Monday.
The plan has been approved by 263 votes to 171, with Democrat representatives voting massively for it while iin the republican side the “Nay” won over the “Yea” by a narrow margin.
The Plan, mainly consisting in a $700 billion bailout to buy toxic mortgage-related securities from failing financial institutions has arisen quite a deal of controversy among citizens as well as among congressmen who were not convinced by the idea of paying wall-street risk-takers wrongdoing with taxpayers money.
After Monday’s refusal, backers of the plan modifies it slightly in order to make it more palatable for dissenting congressmen, a package of tax-breaks totalling about $ 110 more billion as well as subsidies for alternative energy companies, were added to the plan before sending it back to the senate, where it approved with a large majority of votes.
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AIG to keep core insurance, sell assets to pay U.S. loan
(Reuters)
Fri, 3 Oct 2008 15:00:07 CDT
AP - The Treasury Department has picked two financial institutions to manage a program it unveiled last month to provide support for beleaguered mortgage-backed securities.
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US Non-Manufacturing ISM declines to 50.2 in September
Fri, 3 Oct 2008 14:11:00 CDT
FXstreet.com (Barcelona) – Economic activity in the US services sector has grown in September, although at a slower pace than in August, against the market expectations to fall into the critical zero-growth level, according to the latest ISM Non-Manufacturing report on Business.
September’s services PMI has declined 0.4 points to a 50.2 level, showing expansion of the sector’s activity for the second consecutive month, against the market expectations of a decline to the 50.0 level, the line between growth and contraction.
The business activity index has increased 0.5 points to 52.1, while the new orders index has grown 1.1 points to 50.8, and the prices index has fallen 2.9 points to 70. On the negative side, the employment index has dropped 1.2 points to 44.2.
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US ISM Non-Manufacturing declines to 50.2 in Sep vs 50.6 in Aug
Fri, 3 Oct 2008 14:00:16 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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US September Non-Farm payrolls post the largest decline in five years
Fri, 3 Oct 2008 12:52:00 CDT
FXstreet.com (Barcelona) – US Non farm payrolls have posted a largest than expected decline in September, although the unemployment rate has remained unchanged, according to the latest Employment Situation Report by the US Labor Department.
The total amount of non farm payrolls has declined by 159,000 in September, well above the -95,000 expected. With September’s decline, payroll employment has been declining for the last eight months, and at a remarkably fast pace in the last two months.
The Unemployment rate however, has not changed from the previous month, and remains at 6.1%.
The average workweek has declined to 33.6 hours in a seasonally adjusted basis, from the 33.7 average hours in August. Average hourly earnings have increased 0.2% to $18.17, following a 0.3% rise in August, average weekly earnings have increased 3.4% to $610.51.
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US Unemployment Rate unchangedat 6.1% in Sep
Fri, 3 Oct 2008 12:33:58 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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US Nonfarm Payrolls udecline by 159K in Sep; -95K expected
Fri, 3 Oct 2008 12:30:26 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Weekly Economic and Financial Commentary
Fri, 3 Oct 2008 9:18:34 CDT
The incredible volatility in the financial markets has eclipsed virtually everything else, including the underlying economy, the presidential race and the start of Major League Baseball playoffs. For those that missed it last night, the Cubs are down two games to none. The Cubs troubles are the only thing this...
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Euro Zone retail sales pick up in August
Fri, 3 Oct 2008 9:09:00 CDT
FXstreet.com (Barcelona) – Retail sales volume has posted better then expected results in August while sales for the previous month have been revised to a slight increase, according to the latest report by Eurostat.
From July to August, retail sales have increased 0.3% in the countries belonging to the European Monetary Union, while July’s reading has been revised to a 0.1% increase from the 0.4% decline previously estimated.
Year on year sales have posted a better than expected 1.8% decline, since market analysts had advanced a decrease by around 2.4%. July’s year on year figure has been revised up to -1.8, from the previously estimated 2.8% fall.
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EU Retail Sales increased 0.3% in Aug; 1.8% down year on year
Fri, 3 Oct 2008 9:00:23 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Week Ahead in U.S. Financial Markets
Fri, 3 Oct 2008 8:41:48 CDT
The week of October 6-10 will see a light week of economic data that will be dominated by the Tuesday FOMC minutes from the September 16 meeting and Fed Chair Ben Bernanke speech that same day. Other data to be released during the week will be the Wednesday pending home...
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United Kingdom Housing Equity Withdrawal decreases by -2.8B in the 2Q vs 5.04B rise in 1Q
Fri, 3 Oct 2008 8:41:12 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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UK Services PMI declines lower than expected in September
Fri, 3 Oct 2008 8:39:00 CDT
FXstreet.com (Barcelona) – Economic activity in the UK’s services sector has contracted at a well faster than expected pace in September, making the fifth consecutive month into contraction levels, according to the latest Purchasing Managers’ Index services.
In September, the services PMI has declined to a level of 46.0 in September from 49.2 in August. September’s reading has beaten the already pessimistic expectations of a softer decline to 48.5. This latest PMI index shows the fifth month with levels below the critical 50 level, the boundary between expansion and contraction of the sector’s activity.
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The Weekly Bottom Line
Fri, 3 Oct 2008 8:36:55 CDT
It's been said that September 2008 was a long year and it certainly felt like it. The month that changed Wall Street finally ended this week and what a ride it was. Monday started the ball rolling with a vote in the House on the $700 billion Troubled Asset Relief...
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Weekly Focus: Money, Money, Money
Fri, 3 Oct 2008 8:31:08 CDT
A key issue in the financial crisis at the moment is the tensions in the money markets. This is evident in the sharp rise in money market rates seen in recent weeks around the world - not least in the US. The trigger for the renewed tensions was the bank-ruptcy...
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United Kingdom Purchasing Manager Index Services down to 46 in Sep vs 49.2 in Aug
Fri, 3 Oct 2008 8:30:36 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Weekly Foreign Exchange Insights
Fri, 3 Oct 2008 8:22:00 CDT
A recession is spreading rapidly across industrialized economies. Trade flows account for only part of this contagion. All regions were exposed to a rapid rise in commodity costs, especially for energy and food. The breakdown of the U.S. sub-prime mortgage market created a liquidity shortage in most money markets that...
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Euro Zone services PMI contracts further in September
Fri, 3 Oct 2008 8:09:00 CDT
FXstreet.com (Barcelona) – Economic activity in the Euro Area’s services sector has contracted further in September, following three months of contraction, according to September’s Purchasing Managers’ Index services.
Services PMI has eased to 48.4 in September from 48.5 in August, posting the fourth consecutive month into contraction levels, even though the decline has been slightly softer than the 48.2 forecasted by market analysts.
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Germany Purchasing Manager Index Services falls to 50.2 in Sep from 51.4 in Aug
Fri, 3 Oct 2008 7:55:59 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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CORRECTION - EU Purchasing Manager Index Services, down to 48.4 in Sep from 48.5 in Aug
Fri, 3 Oct 2008 7:52:14 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Australian & New Zealand Weekly: RBA to cut by 50 bp's to ensure market stability
Fri, 3 Oct 2008 7:35:24 CDT
The Reserve Bank meets next Tuesday - decision at 2:30pm. Up until this week we had been questioning market pricing that the Bank would ease by a full 50 bp's. However, this week financial markets have turned decidedly uglier. With the collapse of Washington Mutual and the bail out of...
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EUR/USD: Biggest weekly fall for the Euro
Fri, 3 Oct 2008 7:35:00 CDT
FXstreet.com (Barcelona) – The Euro has gone through the sharpest weekly drop ever, and according to Nicole Elliot, senior technical analyst at Mizuho Corporate Bank a reversal could be ahead: “The biggest weekly fall for the Euro, and something similar for most major currencies against the US dollar, has seen implied volatility soar to record or close to record highs. This smacks of capitulation and/or a desperate attempt to repatriate US dollars to shore up crippled balance sheets. Needless to say the USD is more overbought than it has been in a long time and we are looking for a dramatic reversal imminently. Wait and watch for something very dramatic.”
Strategywise, Elliott advices: “Possibly attempt tiny longs at 1.3895; stop below 1.3700. Short term target 1.4100, then 1.4400.”
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Swiss CPI edges up in September
Fri, 3 Oct 2008 6:09:00 CDT
FXstreet.com (Barcelona) – Consumer prices have posted a slight increase in Switzerland in September after two consecutive declines, according to data released by the Swiss Confederation’s statistic office.
Inflation at consumer level has posted a 0.1% increase in September, following two consecutive declined, by 0.3% and 0.4% in August and July respectively. Year on year, prices have increased 2.9% in September, the same increase as in August.
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Toyota announces zero-percent financing
(AP)
Fri, 3 Oct 2008 5:59:42 CDT
Reuters - American International Group Inc , crippled by losses on bad mortgage bets, said on Friday it will focus on its main insurance operations and put the rest of its businesses up for sale to repay up to $85 billion borrowed from the U.S. government.
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Switzerland Sep Consumer Price Index edges up 0.1%; 2.9% up on the year
Fri, 3 Oct 2008 5:54:36 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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EUR/USD: The Euro dives further on Trichet's speech
Thu, 2 Oct 2008 15:06:00 CDT
FXstreet.com (Barcelona) – The Euro has dropped to a year low after the ECB decided to hold rates, the ActionForex technical team advances further decline: “EUR/USD's break of 1.3851 key medium term support indicates that whole decline from 1.6038 should have resumed. At this point, intraday bias remains on the downside as long as 1.3936 minor resistance holds. Further decline is expected to 61.8% projection of 1.6038 to 1.3881 from 1.4867 at 1.3543 next.”
On the upside, the ActionForex team forecasts: “On the upside, above 1.3936 will indicate that a short term bottom might be formed and bring consolidation. But recovery should be limited well below 1.4574 resistance and bring fall resumption.”
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Factory orders decline more than expected in August
Thu, 2 Oct 2008 14:12:00 CDT
FXstreet.com (Barcelona) – New orders for manufactured goods have posted in August the largest decline of the last two years, following five consecutive months of increase, according to data released by the US Commerce Department.
Factory orders have posted a 4.0% decline in August, following a 0.7% increase in July, downwardly revised from the 1.3% rise previously estimated. August’s decline has been larger than expected, as market analysts had advanced a 3.0% fall.
Durable goods orders have posted a 4.8% decline, while non-defence capital goods excluding aircraft, a gage related to capital spending by businesses, have declined 2.4% after a 0,3% increase in July, non durable goods orders have fallen 3,3% following a 0,8% rise in the previous month.
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US Factory Orders fall by 4% in Aug
Thu, 2 Oct 2008 14:00:26 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Trichet: Downside risks for economy have increased, upside risks still high
Thu, 2 Oct 2008 13:06:00 CDT
FXstreet.com (Barcelona) - The President of the European Central Bank, Jean Claude Trichet has admitted that economic uncertainty remains extraordinary high after the latest effects of the financial market turmoil, and that downside risks risks to economy have outbalanced inflationary pressures.
Although CPI has moderated somewhat, Trichet advances that prices will remain at a high level in tie forthcoming months to moderate gradually through 2009. nevertheless, according to the ECB President, downside risks to economy have increased considerably on the back of weakening economic activity in the Euro Area.
Trichet has committed again to monitor “very closely” all developments, as the high level of uncertainty complicates the assessment.
Once again Trichet has affirmed the need to monitor wage devts with particular attention, and he adviced to abolish CPI-linked wage schemes.
Trichet’s words have weighed on the Euro and the Euro Dollar has reached a yeat low at 1.38.
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US Initial Jobless Claims increase slightly in Sep 27 week
Thu, 2 Oct 2008 12:44:00 CDT
FXstreet.com (Barcelona) – The total amount of unemployed workers applying for jobless benefits has posted a slight increase in Sept 27 week reaching the highest level since September 2001, partially influenced by hurricanes Gustav and Ike.
Initial jobless claims have increased by 1,000 in September 27 week to 497,000, against the experts’ forecasts of a 18,000 decline. Claims for the previous week have been revised up to 496,000 from the initially estimated 493,000. The four week moving average has risen by 11,500 to 462,500.
The government affirmed that 45,000 claims have been due to the hurricanes, excluding hurricane effect, jobless claims would have declined to 440,000.
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US Initial Jobless Claims edge up 1K to 497K in Sep 27 week
Thu, 2 Oct 2008 12:30:27 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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ECB keeps Refi rate unchanged at 4.25%
Thu, 2 Oct 2008 11:47:00 CDT
FXstreet.com (Barcelona) – The European Central Bank Monetary Policy Committee has decided to keep interest rates on hold at 4.25% after their monthly policy meeting.
The European Central Bank, as usual did not give any further explanation, so all the eyes are set on the press conference Mr. Trichet will hold later at 12.30 GMT.
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ECB maintains Refi Rate unchanged at 4.25%
Thu, 2 Oct 2008 11:45:33 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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UBS turns a corner, predicting profits for the third quarter
(AFP)
Thu, 2 Oct 2008 11:44:21 CDT
AP - Rates on 30-year mortgages have risen for a second straight week, climbing to the highest level in a month.
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30-year mortgages rise to 6.10 percent
(AP)
Thu, 2 Oct 2008 11:18:24 CDT
AP - Toyota Motor Corp. has announced zero-percent financing on 11 models as it tries to woo would-be buyers sidelined by the consumer credit crunch.
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United Kingdom PMI Construction falls to 38.8 in Sep from 40.5 in Aug
Thu, 2 Oct 2008 9:12:59 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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Euro Zone producer prices moderate in August on lower energy prices
Thu, 2 Oct 2008 9:09:00 CDT
FXstreet.com (Barcelona) – Inflation at producer level seem to have peaked some months ago and is starting to withdraw, as oil and energy prices moderate, as the latest Producer Price Index by Eurostat shows.
For the first time in almost two years, producer prices have declined on the month. From July to August, producer prices have declined 0.5%, following a 1.1% increase in July. The monthly decline has been lead by the 2.5% fall in energy prices.
Month on month, p4roducer prices have increased 8.5%, following a 9.0% yearly increase in July, with energy prices 22.5% above the level in August 2007.
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EU Producer Price Index declines 0.5% in Aug; 8.5% up year on year
Thu, 2 Oct 2008 9:00:33 CDT
FXstreet.com (Barcelona) For more information, read our latest forex news.
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BoE Credit Conditions Report: Availability of credit has tightened on concerns over crisis
Thu, 2 Oct 2008 8:52:00 CDT
FXstreet.com (Barcelona) – Lenders have reduced the availability of credit to households and companies more than expected, in the third quarter, and the restrictions are to be increased in the next months among concerns over the economic outlook, according to the latest Credit Conditions Report by the Bank of England.
The Bank’s survey observes that default on secured lending to households have increased in the last three months to September, and further rise is expected in the last months of the year.
Demand for secured lending for home purchases and private non financial corporations has declined sharply in the third quarter, and it is expected to continue declining in the next three months.
Overall spreads on secured lendings for households have been reported unchanged in the three months to September, while non- price terms on secured lending have tightened. Lenders have also reported further widening spreads for corporate lending, and they advance further increase of spreads in the coming months.
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EUR/JPY: US Senate approves Bailout Plan; Euro dives
Thu, 2 Oct 2008 8:14:00 CDT
FXstreet.com (Barcelona) – Euro extended weakness after the Bailout plan was approved by the US Senate, and ahead of the ECB’s Rate decision, the Euro, according to the ActionForex Team, remains on the downside: “EUR/JPY's break of 147.03 low confirms that sharp fall from 169.96 has resumed. At this point, intraday bias remains on the downside as long as 148.09 minor resistance holds. Further fall should be seen to next target of