Investment of Mine

The following data were published:
00:01    Great Britain    Index of housing prices Rightmove, year/year    September    -7.1%
00:01    Great Britain    Index of housing prices Rightmove, month/month   October    -2.9%
00:30    Australia    Retail sales    3 quarter    0.1%
10:00    Е15    Balance of trade excluding season fluctuations, bln    September    5.6
10:00    Е15    Balance of trade including season fluctuations, bln    September    5.7
13:30    USA    Industry Index FRS New York    November    -25.4
14:15    USA Industrial production    October    1.3%
14:15    USA    Capacity utilization    October    76.4

Yen has suffered losses against dollar and euro in the course of the revival of the stock indices in the USA which caused the retardation of the rates of carry trades curtailing. The meeting of the heads of the “Great 20”, which took place at weekends in Washington, failed to catalyze the end of the current financial crisis and activation of the increase of the highly risky assets volumes by the investors. Concluding declaration of the summit makes one doubt about the real importance of the meeting: the document limits itself to the good resolves and noncommittal slogans.
The data about the industrial production whose volumes in October grew by 1.3% against 2.8% fall in September failed to support the dollar. The analysts have expected the reduction of the rate by 0.2%.
The pound has become the leader of growth against the dollar among the major currencies since the investors decided that the first fall of the GBP/USD for 6.5 years is unlikely to be very long.
Euro has been supported by the data release of the EU’s trading balance which, according to September’s results, had surplus in the amount of €5.7 bln against the deficit the month before.
EUR/USD having begun the session in the area of $1.2535, the pair managed to show session maximums at   $1.2740. After that it corrected itself to $1.2650, where it finished Monday trading session.
GBP/USD according to the session results, the pound consolidated more than 300 points against dollar. Having begun the session in the area of $1.4660, the pair managed to show confident growth and finished the trading in the area of $1.4975.
USD/JPY the pair traded rather unsteadily and in accordance with the session results, yen lost about 40 points against the dollar. The rate showed the session minimums in the area of Y95.90. After that the session maximum was set at Y97.56. Further the rate kept trading in terms of the levels achieved.
Significant interest today will be caused by the release of the index of the consumers’ prices in October in Great Britain at 09:30 GMT.
In the afternoon there will be released a string of data concerning the USA. At 13:30 GMT there will be released the index of the producers’ prices in October. At 14:00GMT the report of the USA Treasury about the international capital flows into American assets. At 17:00GMT there will be released November NAHB Housing Market Index. At 21:45 GMT New Zealand index of the producers’ prices will be released and at 23:50 GMT – release of Japanese activity index.

This entry was posted on Tuesday, November 18th, 2008 at 9:43 am and is filed under Finance Review. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.