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Mike Conlon | September 21, 2010
Morning, U.S. housing 10.5% increases begins one an expectation vs..7% Increase in handily beat estimates and posting the largest gains in nearly four months. While this is a good start in the morning and does no trend make further encouraging risk-taking, a data point.
This comes before the FOMC meeting today at 2 pm EST where the Fed will have to decide what, if monetary policy, to promote economic recovery must be done.
Across the pond in the euro zone Ireland and Spain had fears bond auctions that market be resolved successfully helped, markets and the movement of euro later. how I mentioned yesterday, "Play the new" seems, rise fear that this caused evaluates surrounding next debt offers to promote, in an attempt to increase borrowing costs and thus investors zurückgibt.Es is bond auction shocking, for all the "fear" around the Ireland that the offer by an order of magnitude of was five times oversubscribed!
In the United Kingdom, the budget deficit higher than expected increased pressure on the pound and shows the need for increased spending cuts.
Finally diplomatic tensions between China and Japan have caused some Yen strength and the concern that can further facilitate FOMC monetary policy has contributed.
In the Forex market:
Aussie (AUD):The Australian is usually higher than the RBA rate policy meeting minutes showed, that you are committed to increase prices if the economy at his current pace or faster development. This has pushed the Aussie, 2-year highs vs USD.
Kiwi (NZD):Will the Kiwi mostly lower this morning before tomorrow night's release of GDP numbers is expected to be lower due to the earthquake which the RBNZ reason to rate hikes investigates front to interrupt.
Loonie (CAD):The Loonie is lower this morning, as CPI data showed that prices increased an expectation of 1.9% vs. 1.7%, as less energy costs suggest that inflation can be dampened and at the same time the pressure on the BOC continue with interest rate increases going forward.
Euro (EUR):The euro is in all areas as successful bond auctions market showed trust that both Spain and Ireland not bailout may need money and you take the steps necessary to meet their budget woes, the nonsense in Greece despite higher.
Pound (GBP): the pound is lower than borrowing higher than expected the largest August deficit since 1993, posting, came costs.This clearly demonstrates the need for less borrowing and reduces expenditure to the UK receive fiscal house in order.
US dollar (USD):The dollar is usually weaker today morning as mild risk-taking due to better than expected housing picked up hat.Der dollar continued numbers, if the FOMC meeting brings further easing of monetary, but my guess at this point is that Bernanke has the "longer" language and does nothing to weaken.
Yen (JPY):The yen is strong this morning despite the mild risk-taking as diplomatic tensions with China uncertainty cause. in addition to the fear, the FOMC meeting brings further monetary relaxation in response to Yen intervention lead a showdown between central banks; one that can not win the Japanese.
So all eyes and ears on the FOMC meeting later today, wait always volatility on the market, enough to justify a fed move at this time; brings non-negative as dealer was recent economic data before the report to place Yen intervention and more Chinese currency manipulation but could a threat for US economic recovery.
It is more apparent that the market believes, that road to recovery is entangled by reducing deficits by reducing spending, despite the fact that it not popular ist.Beide here and abroad need politicians this sooner than later to detect or permanently lose market confidence is a prolonged economic decline which through economic stagnation, high unemployment, falling prices and angry deficits.
Not a pretty picture if you me questions! so you see carefully for the heading of volatility in FOMC today and trade!
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