AceTrader 1-wk TRIAL
www.AceTraderFX.com 24-Hr Real-time Signals Consistent Performance Intra-day, Daily, Weekly. with Email Alerts Function Try 1-week for $25 USD
***********************************************************
Market Review - 09/11/2007 23:16 GMT
Japanese yen rallies broadly on credit concern and the selloff in global stocks markets
The Japanese yen rose broadly against major currencies on Friday on credit concern and the selloff in global stocks markets and investors continued to unwind higher-yielding assets. The greenback tumbled to 18-month low of 110.50 against the Japanese yen. Aussie and sterling also fell sharply versus the yen from 105.09 to 100.07 and from 238.05 to 231.07 respectively.
The British pound tumbled from a fresh 26-year high of 2.1162 to 2.0880 on speculation that British bank Barclays Plc was about to announce a $10 billion write-down. Barclays shares were temporarily placed into a so-called volatility auction on Friday. However, Barclays Chief Executive Officer John Varley wrote to employees later in the day to reassure them that the bank's ‘silence’ indicates speculation about possible write-downs is false.
Wachovia Corp., the fourth-largest U.S. bank, said it had incurred about $1.1 billion of further losses from the credit market crisis and expected to increase loan losses as much as $600 million in the fourth quarter. Fannie Mae, the biggest source of money for U.S. home loans, posted a third-quarter loss, saying profit in the first nine months of the year fell 57%.
Interest-rate futures on Friday showed a 98% chance (compared with 68% odds a week ago) that the U.S. central bank will cut interest rates by another quarter-percentage point to 4.25 percent on Dec. 11. Fed Chairman Ben S. Bernanke said in testimony to lawmakers on Thursday the U.S. economy will cool ‘noticeably’ in the fourth quarter. The University of Michigan preliminary consumer confidence index for November fell to a two-year low of 75 from 80.9 in October, adding credence to his view.
The single currency retreated from a fresh record high of 1.4753 to 1.4631 against the U.S. currency due to active cross selling in euro especially versus the Japanese yen. Euro tumbled from 166.00 to 162.15 versus the yen. The greenback weakened to multi-year low of 1.1188 against the Swiss franc. The Australian dollar and New Zealand dollar fell sharply against the U.S. currency from 0.9322 to 0.9103 and from 0.7822 to 0.7626 respectively.
The Chinese yuan posted the biggest weekly advance against the dollar in two years after Paulson said China is ‘out of step’ with calls to let its currency appreciate. The Chinese central bank set the reference rate at 7.4162 per dollar, the highest since 2005.
Next week will see the release of Japan’s trade balance and domestic CGPI, U.K. core PPI and DCLG house prices on Monday; Japan’s GDP, U.K. CPI and RPI, euro zone industrial production, German ZEW index and U.S. pending home sales on Tuesday; German GDP, U.K. ILO unemployment rate, euro zone GDP, U.S. core PPI, RPI and retail sales on Wednesday; Japan’s tertiary industry index, German CPI, U.K. retail sales, U.S. CPI, Empire state manufacturing, jobless claims and Philadelphia Fed survey on Thursday; and Japan’s leading indicators, U.S. capital flows, industrial production and capacity utilisation on Friday.
***********************************************************
Market Review - 09/11/2007 23:16 GMT
Japanese yen rallies broadly on credit concern and the selloff in global stocks markets
The Japanese yen rose broadly against major currencies on Friday on credit concern and the selloff in global stocks markets and investors continued to unwind higher-yielding assets. The greenback tumbled to 18-month low of 110.50 against the Japanese yen. Aussie and sterling also fell sharply versus the yen from 105.09 to 100.07 and from 238.05 to 231.07 respectively.
The British pound tumbled from a fresh 26-year high of 2.1162 to 2.0880 on speculation that British bank Barclays Plc was about to announce a $10 billion write-down. Barclays shares were temporarily placed into a so-called volatility auction on Friday. However, Barclays Chief Executive Officer John Varley wrote to employees later in the day to reassure them that the bank's ‘silence’ indicates speculation about possible write-downs is false.
Wachovia Corp., the fourth-largest U.S. bank, said it had incurred about $1.1 billion of further losses from the credit market crisis and expected to increase loan losses as much as $600 million in the fourth quarter. Fannie Mae, the biggest source of money for U.S. home loans, posted a third-quarter loss, saying profit in the first nine months of the year fell 57%.
Interest-rate futures on Friday showed a 98% chance (compared with 68% odds a week ago) that the U.S. central bank will cut interest rates by another quarter-percentage point to 4.25 percent on Dec. 11. Fed Chairman Ben S. Bernanke said in testimony to lawmakers on Thursday the U.S. economy will cool ‘noticeably’ in the fourth quarter. The University of Michigan preliminary consumer confidence index for November fell to a two-year low of 75 from 80.9 in October, adding credence to his view.
The single currency retreated from a fresh record high of 1.4753 to 1.4631 against the U.S. currency due to active cross selling in euro especially versus the Japanese yen. Euro tumbled from 166.00 to 162.15 versus the yen. The greenback weakened to multi-year low of 1.1188 against the Swiss franc. The Australian dollar and New Zealand dollar fell sharply against the U.S. currency from 0.9322 to 0.9103 and from 0.7822 to 0.7626 respectively.
The Chinese yuan posted the biggest weekly advance against the dollar in two years after Paulson said China is ‘out of step’ with calls to let its currency appreciate. The Chinese central bank set the reference rate at 7.4162 per dollar, the highest since 2005.
Next week will see the release of Japan’s trade balance and domestic CGPI, U.K. core PPI and DCLG house prices on Monday; Japan’s GDP, U.K. CPI and RPI, euro zone industrial production, German ZEW index and U.S. pending home sales on Tuesday; German GDP, U.K. ILO unemployment rate, euro zone GDP, U.S. core PPI, RPI and retail sales on Wednesday; Japan’s tertiary industry index, German CPI, U.K. retail sales, U.S. CPI, Empire state manufacturing, jobless claims and Philadelphia Fed survey on Thursday; and Japan’s leading indicators, U.S. capital flows, industrial production and capacity utilisation on Friday.
***********************************************************
