 |
home sitemap contactOzForexNZForexTranzfers |
|
 Add to your favorites |
||
|
||
Weekly Market Watch - Monday, 29 September 2008
Subscribe to our weekly "Market Watch" newsletter. Last Week RecapGlobal financial markets began the week with the knowledge that U.S treasury had embarked on a bold plan to step in as a buyer of last resort for mortgage-linked assets that few other financial institutions in the world want to buy. All eyes were on whether or not congress would approve the massive 700 billion U.S dollar relief package with economic data seemingly going unnoticed. The big dollar rebounded throughout the week trading higher against the Euro and Yen with spurts of risk appetite emerging and commodities bouncing late in the week. The Aussie dollar benefited during early trade rallying on Monday and Tuesday to exchange above 85 cents, a 9.2% gain from the previous week’s low of 78 cents. The second half of the week saw investors nervous about the prospect of the relief package not getting through congress and the apparent lack of detail triggering a pullback to finish the week slightly above 83 cents.Across the Tasman the Kiwi dollar also benefited to post a high of 0.6950 early in the week before some negative N.Z economic data trimmed back the gains to finish at 0.6850. The New Zealand economy is now officially in a recession with Friday’s announcement of the second successive quarter of negative economic growth. The Pound Sterling continued its rebound against the Greenback to post a high of 1.8670 last week, 7% above its September low of 1.7445. However once news emerged that the U.S treasury plan was likely to get approved GBP/USD fell sharply to 1.8300. The GBP/AUD cross rate arrested the massive selloff that began the previous week from highs over 2.3100 to find some support at 2.1800 on Tuesday and bounce back to 2.2300 midweek. The Week AheadUSD: With the market looking to digest the impact of the U.S Treasury relief package the volatility is expected to continue and data of out of the US is likely to add fuel to the fire. It all kicks off today with the release of the Index for Personal Consumption Expenditures which gives an indication of the average increase in prices for all domestic personal consumption. On Tuesday is the release of Septembers Consumer Confidence. Consumer Confidence levels are generally linked with consumer spending; we should see some volatility with the USD upon this data release. On Wednesday is the release of ISM Manufacturing and ISM Prices Paid reports. Finally on Friday is the release of US Change in Non Farm Payroll which is one of the most widely anticipated reports on the US economic calendar with the unemployment Rate for September also coming under close scrutiny. This data should provide some interesting trading patterns for the Big Dollar against the other majors.AUD: There are 2 key local events this week that will provide direction for the Aussie Dollar. It will all start on Tuesday with the release of the Retail Sales Figures for August (expected to remain the same as the previous month or possibly fall slightly). Thursday is the release of Trade Balance report which does tend to move markets on release. Topside resistance for the Australian dollar is expected between 0.8450 and 0.8500 with current support levels at 0.8150 and the psychological 80 cent mark. To view live charts follow these links: AUD/USD AUD/EUR AUD/GBP AUD/JPY AUD/NZDNZD: The main significant data out of New Zealand this week which will have an impact on the Kiwi Dollar will be Mondays Trade Balance figures. Trade data can give critical insight into developments in New Zealand’s economy and provide direction for the New Zealand Dollar. Tuesday’s release of NBNZ September Business Confidence may also influence the Kiwi a fairly pessimistic outlook expected given official; statistics point towards a recession in N.Z. To view live charts follow these links: NZD/USDGBP: On the data front this week in the UK begins with the GFK Consumer Confidence Survey. On Tuesday is the release of the Gross Domestic Product an indicator for broad overall growth in the United Kingdom which is expected to remain unchanged at an annualised rate of 1.4%. The Housing sector is likely to come in for a bit more of a mention later in the week. Thursday is the release of the Nationwide House Prices data for the month of September; this data is a good indicator for the current housing market conditions. Also on Thursday is the release of Bank of England Credit Conditions Survey and Purchasing Manager Index for the month of September. To view live charts follow these links: GBP/USDEUR: The data front in the early part the week is fairly light with no significant releases due until mid to late in the week. The first key Data release will be Thursdays European Central Banks Rate Decision. Because rate changes are usually well anticipated and no change is expected on this occasion, the actual decision may not impact the market. As always though the accompanying rhetoric is likely to move the Euro somewhat as the market is hoping for the central bank to shed some light on their thoughts of future economic direction. On Friday is the release of Euro Zone Retail Sales. This data is expected to be better than previous with an increasing number of sales which will indicate economic growth. To view live charts follow these links: EUR/USDJPY: On the data front this week in Japan we start with some high key releases, beginning on Monday with the release of Japanese Retail Trade for the month of August. The report serves as a direct indicator of consumption and consumer confidence. On Tuesday is the release of both Nomura/JMMA Manufacturing Purchasing Manager Index and Japanese Household Spending. On Thursday is the release of Tankan Surveys for Large Manufactures Index, Large Manufacturers Outlook, Large Non-Manufacturers Index and Large All Industry Capex. To view live charts follow these links: JPY/USDCAD: Canadian data is fairly thin this week and the Canadian Dollar will no doubt take direction from offshore events and announcements. Tuesdays Gross Domestic Product data for the month of July is the only real significant data to come out of Canada this week. This data release is not expected to move the market in any dramatic fashion, reports that lead to Canadian GDP are released before the official GDP number, and thus results can be already anticipated by the market. To view live charts follow these links: CAD/USD
|
 |
|
| Home Page |  |
Regulation | |
Privacy Policy | |
Complaints | |
Website Terms | |
Contacts & Support |
 |
|
IMPORTANT: Use of this website is subject to the Website Terms. Use of the Services
of the UKForex Limited is subject to the Client Agreement. Nothing on this website constitutes
or should be construed as financial advice. This information has been prepared for distribution
over the internet and without taking into account the investment objectives, financial situation and
particular needs of any particular person. UKForex Limited makes no recommendations as to the
merits of any financial product referred to in this website, emails or its related websites.
© Copyright UKForex Limited. All rights reserved worldwide.
Money Laundering Regulation Number (MSB): 12219180.
Issued by HM Revenue & Customs (HMRC)
Money Laundering Statement
|