Tuesday, Dec 16, 21:08 GMT
ASIA-PACIFIC Trading Newsletter
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- All the events of the day in our Economic Calendar
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Forex Blogs
The Advisor Blog: FOMC Decision
The Federal Reserve has slashed the funds rate not just with a 0.75 basis points but in fact to a range between 0.00% and 0.25% to combat recession, starting a new phase for economic policy, keeping rates "exceptionally low" and with lending programs financed by the Fed's ballooning balance sheet.
Live Sessions Schedule
FX Instructor Live Trading Room
Expert: Mark De La Paz
Start: Wed, Dec 17, 10:00 GMT
Sponsored by: 
Type of Session: Webinar
Trading Break Out's And Other Market Views
Expert: Phil Newton
Start: Wed, Dec 17, 11:00 GMT
Sponsored by: 
Type of Session: Webinar
| Sponsored by | ||||
| Wed, Dec 17, 10:00 GMT | FX Instructor Live Trading Room | Mark De La Paz | WBN | |
| Wed, Dec 17, 11:00 GMT | Trading Break Out's And Other Market Views | Phil Newton | WBN | |
| Wed, Dec 17, 12:00 GMT | Tracking the forex market together / Part I  | Dr.S.Sivaraman | WBN |  |
| Wed, Dec 17, 14:00 GMT | Main Fundamental theme in the Currency market | Terri Belkas | WBN |  |
| Wed, Dec 17, 15:00 GMT | Tracking the forex market together / Part II | Dr.S.Sivaraman | WBN | |
Current Session: U.S.
EUR/USD
The Federal Reserve has slashed the funds rate not just with a 0.75 basis points but in fact to a range between 0.00% and 0.25% to combat recession, starting a new phase for economic policy, keeping rates "exceptionally low" and with lending programs financed by the Fed's ballooning balance sheet. In the meanwhile majors rose against greenback and become closer to probable break levels, (except by GBP that by the way, gave the expected 100 pips rally).
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GBP/USD
GBPUSD is in a consolidation after the last bullish movement by Mataf.net
The volatility is low. ForexTrend 1H (Mataf Trend Indicator) is in a bullish configuration. 1H, 4H ForexSto (Modified Stochastic) indicate a bullish pressure on GBP USD. The price should find a resistance below 1,5380 (23 pips). The consolidation should continue. If the resistance is broken then the target will be 1,5700 (343 pips). We are waiting for a break of the resistance to take a long position.
New Fed Strategy Should Weaken the U.S. Dollar by ForexHound.com
The U.S. Dollar is trading weaker ahead of the FOMC meeting today. Traders know the Fed has to figure out a way to get more cash into circulation. One tool that is being considered is using its own balance sheet as a weapon. This action would include continuing to buy its own financial instruments. Traders are anticipating the Fed to be more aggressive in the Treasury market over the near term and are selling Dollars ahead of the FOMC announcement.
Analyst Sentiment Index (ASI)
Analysts Sentiment Index - EUR/USD
**Source : ActionForex.com, CMS Forex, Danske Bank A/S, FXstreet.com, i-knowindices.com, Mizuho Corporate Bank, MolFX - Management
[ View ASI page ] [ View EUR/USD page ]
Charting the Market Movers
GBP USD, Hourly
EUR USD, Hourly
Top Market Movers Preview
EMU CONSUMER PRICE INDEX
| Date (GMT) | Event | Cons. | Previous | |
| Dec 17 | 10:00 | Consumer Price Index − Core (YoY) | 1.9% | 1.9% |
| Dec 17 | 10:00 | Consumer Price Index (MoM) | -0.5% | 0.0% |
| Dec 17 | 10:00 | Consumer Price Index (YoY) | 2.1% | 2.1% |
Friday Notes - Let's talk about European deflation by HVB Group
Eurozone inflation slowed more than expected in November, coming in at 2.1% versus the previous 3.2%. We see the risk of a moderate upward revision in the final release. Certainly, energy was the main driver of the inflation deceleration, thanks also to a positive base effect.
[ Full Story ]Top Market Movers Review
US FED INTEREST RATE DECISION
| Date (GMT) | Event | Actual | Cons. | Previous | |
| Dec 16 | 19:15 | Fed Interest Rate Decision | 0.25% | 0.50% | 1.00% |
US: FOMC Instant Insight − Fed Cuts Interest Rates to 0.25% and Formally Enters QE by GFT (Global Forex Trading)
The Federal Reserve cut interest rates by 75bp to a range of 0 to 0.25 percent, the lowest level that this generation has ever seen. In our FOMC preview, we talked about how the Fed may consider adopting a BoJ style rate cut that takes interest rates somewhere between 0.25 and 0 percent. Although that was exactly what we saw today, we expected it to happen in March and not December.
[ Full Story ]- TREASURIES−US yields hit record lows after Fed axes rates (Thomson Financial News)
- TREASURIES−US yields hit record lows after Fed axes rates (Thomson Financial News)
- US STOCKS−Stocks rally on Fed's rate cut, financials (Thomson Financial News)
US: FOMC December Meeting − To Boldly Go… by Wachovia
Zero−Bound Fed Breaks Dollar by CMC Markets
Mid−Day Forex Technical Report − Dollar Lower after Poor CPI and Housing, FOMC Next by ActionForex.com
US CONSUMER PRICE INDEX
| Date (GMT) | Event | Actual | Cons. | Previous | |
| Dec 16 | 13:30 | Consumer Price Index (MoM) | -1.7% | -1.3% | -1.0% |
US consumer prices post second record drop in Nov (Thomson Financial News)
U.S. consumer prices plunged at a record rate for a second straight month during November, according to a government report on Tuesday that is likely to fan fears that economic recession is rapidly heightening risks of deflation.
[ Full Story ]- Consumer Price Index: November 2008 at US Department of Labor
- WRAPUP 2−US consumer prices, housing fan new economic fears (Thomson Financial News)
- INSTANT VIEW 5−US consumer prices, housing starts sink in Nov (Thomson Financial News)
- INSTANT VIEW 4−US consumer prices, housing starts sink in Nov (Thomson Financial News)
Mid−Day Forex Technical Report − Dollar Lower after Poor CPI and Housing, FOMC Next by ActionForex.com
Economic Events
| Date (GMT) | Country | Event | Actual | Cons. | Previous | |
| Dec 16 | 13:30 | US | Consumer Price Index Ex Food & Energy (MoM) (Nov) | 0.0% | 0.1% | -0.1% |
| 19:15 | US | Fed Interest Rate Decision | 0.25% | 0.50% | 1.00% | |
| 22:00 | US | ABC/Washington Post Consumer Confidence (Dec 14) | -52 | |||
| 23:30 | AU | Westpac Leading Index (MoM) (Oct) | -1% | |||
| Dec 17 | 05:00 | JP | Coincident Index (Oct) | 100.9% | ||
| 05:00 | JP | Leading Economic Index (Oct) | 89.4 | |||
| 07:00 | DE | Consumer Price Index (MoM) (Nov) | -0.5% | -0.2% | ||