Finotec News Archive - January 27 2010
Sterling falls after a lower than expected GDP figure
GBP/USD is currently trading at $1.6140 as of 7:10am, GMT, with a bullish trendTammy Wally 
27 January 2010
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| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
|---|---|---|---|---|
Resistance | 1.4220(M) 1.4195(M) 1.4107(M) | 90.62(M) 90.25(M) 89.73(M) | 1.6313(M) 1.6300(M) 1.6285(M) | 1.0557(M) 1.0509(M) 1.0497(M) |
Support | 1.4030(M) 1.4007(M) 1.3965(S) | 88.83(M) 88.58(M) 87.35(S) | 1.6077(M) 1.5900(M) 1.5832(M) | 1.0432(M) 1.0368(M) 1.0358(M) |
The British pound fell sharply against the dollar on Tuesday after keenly anticipated growth data showed Britain emerged from recession in the fourth quarter but at a much slower pace than expected. Gross domestic product expanded by 0.1 percent between October and December, well below analysts' forecasts for growth of 0.4 percent.
"While its good news that the UK is out of recession, it is clear the economy is not out of the woods yet," said David Tinsley, UK economist at National Australia Bank. "It's not impossible to imagine the first quarter returning to negative growth on the basis of today's data. And further out, the economy has to pick its way across the minefield of consumer deleveraging, constrained bank balance sheets and the forthcoming squeeze of public sector spending," he said. Most analysts still predicted the Bank of England would halt its 200 billion pound asset buying program next month, but the GDP figures reinforced expectations any interest rate would stay at the current record low of 0.5 percent for some time. The GBP/USD is currently trading at $1.6140 as of 7:10am, GMT, with a bullish trend.
The yen rose to a nine-month high against the euro and strengthened versus the dollar as speculation the global economic recovery is slowing spurred demand for Japan’s currency as a refuge. The yen advanced against all of its 16 major counterparts as the Greenback weakened for a second day against the yen on concern the Federal Reserve will maintain its pledge to keep interest rates near zero for an “extended period” when it ends a two-day policy meeting today. “Risk aversion is strong globally, making it easy for the yen to be bought,” said Masahide Tanaka, a senior strategist in Tokyo at Mizuho Trust & Banking Co., a unit of Japan’s second- largest lender. “The yen will remain vulnerable to ups and downs in risk sentiment.” The USD/JPY is currently trading at 89.22 as of 7:25am, GMT, with a bearish trend.
The Australian dollar rose against the greenback after a government report showed consumer prices gained more than some economists had forecast, giving the central bank more reason to raise interest rates next week. The Aussie dollar also climbed against 14 of the 16 most active currencies as the International Monetary Fund said yesterday Australia will outpace other advanced economies and expand 2.5 percent in 2010 and 3 percent next year. The AUD/USD is currently trading at 0.8980 as of 7:50am, GMT, with a bearish trend.
Finotec Analysis Team
27 January 2010
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Today's Economic Events
Time  |
Event |
Currency/Country
|
Period | Previous | Forecast |
Significance
|
Actual | |
|---|---|---|---|---|---|---|---|---|
| 27-01-2010 23:50 | Large Retailers' Sales | Japan | -9.6 | -5.7 |  | |||
| 27-01-2010 23:50 | Retail Trade (M-o-M) | Japan | Monthly | 0.2 | | |||
| 27-01-2010 23:50 | Retail Trade (Y-o-Y) | Japan | Yearly | -1.0 | 0.3 | | ||
| 27-01-2010 23:50 | Foreigners Buying Japan Stocks (Yen) | JPY/Japan | 611.9 | -0.8 | | |||
| 27-01-2010 23:50 | Foreigners Buying Japan Bonds (Yen) | JPY/Japan | -152.2 | | ||||
| 27-01-2010 23:50 | Japan Buying Foreign Stocks (Yen) | JPY/Japan | -122.6 |  | ||||
| 27-01-2010 23:50 | Japan Buying Foreign Bonds (Yen) | JPY/Japan | -11.9 | | ||||
| 27-01-2010 19:15 | Interest Rate Decision | United States | 0 | 0.25 | | 0 | ||
| 27-01-2010 18:00 | EIA Crude Oil Price | USD/United States | 80.59 | | ||||
| 27-01-2010 16:00 | EIA Crude Oil Inventory (Barrels) | United States | 330.6 | | ||||
| 27-01-2010 16:00 | M3 Money Supply (Y-o-Y) | New Zealand | Yearly | -2.0 | | |||
| 27-01-2010 15:00 | New Home Sales - Median Prices | USD/United States | 217.4 | | ||||
| 27-01-2010 15:00 | New Home Sales - Units | United States | 370 | 370 | | 342 | ||
| 27-01-2010 12:00 | MBA Mortgage Applications | United States | 9.1 | | ||||
| 27-01-2010 11:00 | CBI Distributive Trades Report | UK | 13 | 11 | | -8 | ||
| 27-01-2010 09:00 | Leading Index | Eurozone | 0.7 | | ||||
| 27-01-2010 09:00 | Coincidence Index | Eurozone | -0.1 |  | ||||
| 27-01-2010 05:00 | CPI (M-o-M) | Germany | Monthly | 0.8 | -0.4 | | -0.6 | |
| 27-01-2010 05:00 | CPI (Y-o-Y) | Germany | Yearly | 0.9 | 1.0 | | 0.8 | |
| 27-01-2010 05:00 | CPI - EU Harmonised (M-o-M) | Germany | Monthly | 0.9 | -0.4 | | -0.7 | |
| 27-01-2010 05:00 | CPI - EU Harmonised (Y-o-Y) | Germany | Yearly | 0.8 | 0.9 | | 0.7 | |
| 27-01-2010 05:00 | Official Foreign Reserves | USD/United States | 131.99 | | 131.26 | |||
| 27-01-2010 00:30 | CPI (Q-o-Q) | Australia | Quarterly | 1.0 | | |||
| 27-01-2010 00:30 | CPI (Y-o-Y) | Australia | Yearly | 1.3 | | |||
| 27-01-2010 00:30 | Trimmed Mean (Q-o-Q) | Australia | Quarterly | 1.3 | | |||
| 27-01-2010 00:30 | Weighted Median (Q-o-Q) | Australia | Quarterly | 0.8 | | |||
| 27-01-2010 00:30 | Weighted Median (Y-o-Y) | Australia | Yearly | 3.8 | |