Market Review April 12 2012
Economic events scheduled for today
02:30 | AUD | Employment Change | 6.0K -15.4K
02:30 | AUD | Unemployment Rate | 5.3% 5.2%
Employment Change measures the change in the number of people employed. Job creation is an important indicator of consumer spending. The Unemployment Rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month.
06:30 | EUR | French CPI (MoM) | 0.4%
The French Consumer Price Index (CPI) measures the changes in the price of goods and services purchased by consumers.
08:30 | EUR | Dutch Retail Sales (YoY) | 0.80%
Retail trade is a form of trade in which goods are mainly purchased and resold to the consumer or end-user, generally in small quantities and in the state in which they were purchased (or following minor transformations).
09:30 | GBP | Trade Balance | -7.7B -7.5B
Trade Balance measures the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported.
10:00 | EUR | Industrial Production (MoM) | -0.2% 0.2%
Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
10:00 | EUR | Portuguese CPI (MoM) | 0.10%
The Consumer Price Index (CPI) measures the rate of price change of goods and services purchased by households. It measures changes in the average level of prices over a period of time. In other words, prices indicator of what is happening to prices consumers are paying for items purchased. With a given starting point or base period which is usually taken as 100, the CPI can be used to compare current period consumer prices with those in the base period. Consumer Price index is the most frequently used indicator of inflation and reflect changes in the cost of acquiring a fixed basket of goods and services by the average consumer. The weights are usually derived from household expenditure surveys.
10:00 | EUR | Greek Unemployment Rate | 21.00%
The definition for an unemployed person is: Persons (16-65 years) who were available for work (except for temporary illness) but did not work during the survey week, and who made specific efforts to find a job within the previous 4 weeks by going to an employment agency, by applying directly to an employer, by answering a job ad, or being on a union or professional register. The percentage number is calculated unemployed / (employed + unemployed).
13:30 | CAD | Trade Balance | 2.0B 2.1B
The Trade Balance measures the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported.
13:30 | USD | Core PPI (MoM) | 0.2% | 0.2%
13:30 | USD | PPI (MoM) | 0.3% 0.4%
The Core Producer Price Index (PPI) measures the change in the selling price of goods and services sold by producers, excluding food and energy. The PPI measures price change from the perspective of the seller. When producers pay more for goods and services, they are more likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation. The Producer Price Index (PPI) measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation.
13:30 | USD | Trade Balance | -52.0B -52.6B
The Trade Balance measures the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported.
13:30 | USD | Initial Jobless Claims | 355K 357K
13:30 | USD | Continuing Jobless Claims | 3335K 3338K
Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. Continuing Jobless Claims measures the number of unemployed individuals who qualify for benefits under unemployment insurance.
Euro Dollar
The euro is trading at 1.3085 levels. The common currency with a weak bias is trading range bound mainly supported by the strong psychological support at 1.30 although the fundamentals still reflects core weakness in the Euro area. Spanish and Italian 10yr government bond yields rose over 20bps respectively triggering risk aversion among market participants. Support is seen at 1.3000 levels while strong resistance is seen at 1.3193 levels (21 and 55 days daily EMA).
The Sterling Pound
GBPUSD is trading at 1.5874. The cable is trading strong vs. the greenback and the Euro as uneasiness about the Euro zone debt crisis prompted investors to switch to the UK currency. BRC Retail Sales Monitor y/y data came out better this morning. Support is seen at 1.5821 levels (200 days daily EMA) while resistance is at around 1.5906 levels. Exporters cover GBP/USD pair on upticks.
Asian –Pacific Currency
The Australian dollar is currently trading at 1.0280 levels. The currency weakened taking some clues from the Asian stocks as global weakness is seen amid concern of Europe’s debt crisis reducing demand for riskier assets Support is seen at around 1.0224 levels and resistance is seen at 1.0374 levels (200 days daily EMA). Target 1.0 (parity). USD/JPY is currently trading at 80.764 levels. Support is seen at 79.90 levels (100 days daily EMA) while Resistance is at 81.64 levels (200 days 4 hourly EMA). Short Term maintain Bullish for the pair Target 85 levels.
Gold
Gold is currently trading at 1654.70 levels, inching upwards as capital markets melted away yesterday across the globe. China’s demand for gold remains robust as shown by Imports in February rising 20% from previous month. Near term support is seen close to 1647.042 (21 days 8 hourly EMA) while the immediate resistance is seen near 1677.788 (55 days Daily EMA). Overall sell on rallies.
Crude Oil
Crude Oil is currently trading at 102.28 levels, after rising substantially in February, consolidating in March and finally giving way in April. The recent correction can largely be attributed to slowdown signals among large developed nations. France showed no growth in all of the first quarter of the year and will remain that way for coming months as reported yesterday. These issues as well as excess capacities will put pressure on global oil prices in the near term. Support comes at 98.328 levels (200days daily EMA) and resistance is seen near 103.558 levels (55 days daily EMA). Overall range bound between 100-105 dollars.
« Forex And Commodity Roundup Spain Weighs On Investors Nerves »
