• Home ::
• Technical ::
• Market View ::
• Wakeup Call on Forex Markets

• Send
• Print
• Add To
• Rss

Wakeup Call on Forex Markets

Weekly US ABC Consumer Confidence hits 17−year low

Wed, May 7 2008, 06:57 GMT
by David Karsbøl

Saxo Bank

UK Consumer Confidence also quite weak. Hawkish comments from Fed's Thomas Hoenig has supported USD.

Overnight News Bullets

• SZ CPI MoM/YoY (Apr), out at 0.8%/2.3% vs. 0.9%/2.4% exp 0.3%/2.6% prior.

•  E-Z PMI Services (Apr F), out at 52.0 vs. 51.8 exp. 51.8 prior.

• UK PMI Services (Apr), out at 50.4 vs. 51.7 exp. 52.1 prior.

• E-Z Euro-Zone PPI MoM/YoY (Mar), out at 0.7%/5.7% vs. 0.7%/5.6% exp. 0.6%/5.3% prior.

• CA Building Permits MoM (Mar), out at -4.5% vs. 1.2% exp. -1.0% prior.

• CA Ivey Purchasing Managers Index (Apr), out at 57.6 vs. 54.0 exp. 59.0 prior.

• US ABC Consumer Confidence (May 4), out at -46 vs. -41 exp. -41 prior.

Markets

• FX: USD still ranging. AUD edging higher ahead of tonight’s labor market data.

• Fixed income: JGB’s still under pressure. Treasuries and Bunds slightly lower.

• Stocks: Negative European session, US And Asia somewhat positive, energy sector the leading mover

• Commodities: Crude Oil forcefully breaking $120, and recorded a new high of $122.73 now resting just shy of $122 at $121.75.

O/N Data Heat map:

Calendar

Today's Highlights:

This and Next Week’s Highlights:

What's going on?

• Rice prices have surged for a forth day as already tight supply levels are further exasperated by the prospect of Myanmar turning into a net importer from a net exporter after the cyclone disaster.

• ABC Consumer Confidence has hit lowest level since February 1992, coming out at -46 for the month of May. On the break down of index factors, the state of economy has fared the worst of all.

• The USD has risen against euro following the comments by Fed Kansas City President Thomas Hoenig that serious inflation pressures may cause the bank to hike rates.

• The double effect from weakening housing market and higher living costs on UK economy is becoming clearer, now with the consumer confidence falling to a lowest in 4 years, or a to an index value of 70, from the prior reading of 77 points.

FX

Break-Out Trade in USDJPY

FX Trading Strategies

Published on  Wed, May 7 2008, 07:29 GMT

Archive

• Strong Japanese GDP figures lifting JPY higher
  Published On Fri, May 16 2008, 07:40 GMT
• Lower than expected CPI leads stocks higher
  Published On Thu, May 15 2008, 06:49 GMT
• Watch out for CPI today
  Published On Wed, May 14 2008, 07:14 GMT
• Some Optimism Ahead of the Retail Sales
  Published On Tue, May 13 2008, 07:14 GMT
• Signs of Risk-Aversion Re-entering the Market
  Published On Fri, May 9 2008, 07:00 GMT

[ View All ]

• More Reports from this Author
• More Reports from this Contributor

Saxo Bank  | Smakkedalen 2, DK-2820 Gentofte
http://www.saxobank.com/ | info@saxobank.com