Finotec News Archive - January 21 2010
Sterling continue upward as claimant count and inflation show a positive trend
The GBP/USD is currently trading at $1.6280 as of 19:50pm, GMT, with a bullish trendTammy Wally 
21 January 2010
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| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
|---|---|---|---|---|
Resistance | 1.4335(M) 1.4293(M) 1.4215(M) | 92.43(M) 92.19(M) 92.05(M) | 1.6485(M) 1.6400(M) 1.6326(M) | 1.0600(M) 1.0528(S) 1.0509(M) |
Support | 1.4045(M) 1.3965(S) 1.3875(M) | 90.79(M) 90.30(M) 90.15(M) | 1.6210(M) 1.6195(M) 1.6166(M) | 1.0358(M) 1.0311(M) 1.0230(M) |
The British pound rose against a broadly weaker euro on Wednesday after a jump in consumer inflation the previous day bolstered expectations the central bank's quantitative easing would pause next month. Bank of England Governor Mervyn King said on Tuesday the latest consumer price data did not change the central bank's forecasts that the spike in inflation should prove temporary.
In his first major speech of the year, he issued a warning on the UK fiscal situation and said the Monetary Policy Committee had yet to decide on the future path of the central bank's asset purchase program because its members were waiting for "conditions to become clearer". Most analysts expect the BoE to halt its asset buying program once the current target has been met in the next few weeks but remain split over when policy might be tightened. The GBP/USD is currently trading at $1.6280 as of 19:50pm, GMT, with a bullish trend.
The greenback and yen rose against most of their major counterparts as global stocks slid on corporate earnings and steps by China to limit bank lending, reducing demand for higher yielding assets. The euro fell to a five-month low versus the dollar as Greece’s bonds tumbled. The dollar was buoyed today versus the euro after Republican Scott Brown won a U.S. Senate seat in Massachusetts and vowed to stop health-care legislation in Congress, easing concern that the cost of the proposal would lead to bigger debt sales as the government finances a record budget deficit. “The market interpreted the health-care legislation would have added to the deficit, without bending the cost curve,” said Andrew Busch a global currency strategist at Bank of Montreal in Chicago. “Once you stop that, for a fiscal situation, it’s a positive.” The EUR/USD is currently trading at $1.4110 as of 20:13pm, GMT, with a bullish trend.
Canada’s dollar dropped by the most in almost three months as oil fell and a report showed inflation rose less in December than forecast, reducing the chance the central bank will raise interest rates before the second half. “The numbers are suggesting people are getting nervous,” said David Watt, senior currency strategist in Toronto at Royal Bank of Canada, the nation’s biggest lender. “The Bank of Canada is heading to a tightening campaign in the third quarter -- now the debate is will they go in July or September.” The USD/CAD is currently trading at 1.0475 as of 20:30pm, GMT, with a bullish trend.
Finotec Analysis Team
21 January 2010
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Today's Economic Events
Time  |
Event |
Currency/Country
|
Period | Previous | Forecast |
Significance
|
Actual | |
|---|---|---|---|---|---|---|---|---|
| 21-01-2010 15:30 | EIA Natural Gas Inventory (Cubic Feet) | United States | 2852 |  | ||||
| 21-01-2010 15:30 | Monetary Policy Meeting Minutes | Canada | | |||||
| 21-01-2010 15:00 | Philly Fed's Mfr Index - Business Condition | United States | 22.5 | 18 | | 15.2 | ||
| 21-01-2010 15:00 | Philly Fed's Mfr Index - Prices Paid | United States | 33.8 |  | ||||
| 21-01-2010 15:00 | Philly Fed's Mfr Index - Prices Received | United States | -1.8 | | ||||
| 21-01-2010 15:00 | Coincidence Index | United States | 0.2 | | ||||
| 21-01-2010 15:00 | Lagging Index | United States | -0.4 |  | ||||
| 21-01-2010 15:00 | Leading Index | United States | 1.0 | 0.7 | | 1.1 | ||
| 21-01-2010 13:30 | Wholesale Sales (M-o-M) | Canada | Monthly | 0.5 | 0.4 | | 2.5 | |
| 21-01-2010 13:30 | Initial Jobless Claims | United States | 446 | 441 | | 482 | ||
| 21-01-2010 13:30 | Continuing Claims | United States | 4617 | 4600 | | 4599 | ||
| 21-01-2010 11:00 | CBI Quartely Industrial Trends | UK | -42 | -39 | | -39 | ||
| 21-01-2010 10:00 | ZEW Survey (Expectations) | Switzerland | 54.0 | | ||||
| 21-01-2010 09:30 | Retail Sales (M-o-M) | UK | Monthly | -0.3 | | |||
| 21-01-2010 09:30 | Retail Sales (Y-o-Y) | UK | Yearly | 3.1 | | |||
| 21-01-2010 09:30 | Public Finances (PSNCR) | JPY/UK | 14.6 | 25 | | 23.6 | ||
| 21-01-2010 09:30 | Public Sector Net Borrowing | JPY/UK | 18.7 | 19.0 | | 15.7 | ||
| 21-01-2010 09:30 | M4 Money Supply (M-o-M) | UK | Monthly | 0.1 | 0.9 | | -1.1 | |
| 21-01-2010 09:30 | M4 Money Supply (Y-o-Y) | UK | Yearly | 9.2 | 8.9 | | 6.4 | |
| 21-01-2010 09:00 | PMI Manufacturing | Eurozone | 51.6 | 52.1 | | 52.0 | ||
| 21-01-2010 09:00 | PMI Services | Eurozone | 53.6 | 54.1 | | 52.3 | ||
| 21-01-2010 09:00 | PMI Composite | Eurozone | 54.2 | 54.4 | | 53.6 | ||
| 21-01-2010 08:30 | PMI Manufacturing | Germany | 52.7 | 53.1 | | 53.4 | ||
| 21-01-2010 08:30 | PMI Services | Germany | 52.7 | 53.1 | | 51.2 | ||
| 21-01-2010 08:00 | M3 Money Supply (Y-o-Y) | Switzerland | Yearly | 7.6 | | |||
| 21-01-2010 05:00 | Leading Index | Japan | 89.4 | | ||||
| 21-01-2010 05:00 | Coincidence Index | Japan | 94.3 | | ||||
| 21-01-2010 05:00 | Lagging Index | Japan | 83.7 | | ||||
| 21-01-2010 00:30 | New Motor Vehicle Sales (M-o-M) | Australia | Monthly | 5.5 | | |||
| 21-01-2010 00:30 | New Motor Vehicle Sales (Y-o-Y) | Australia | Yearly | 15.8 | |
