Finotec News Archive - March 01 2010
Sterling crashes as polls show a hung parliament and traders selling big...
The GBP/USD is currently trading at $78.55 as of 20:06pm, GMT, with a bullish trend..Tammy Wally 
01 March 2010
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| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
|---|---|---|---|---|
Resistance | 1.3679(M) 1.3665(M) 1.3585(M) | 90.33(M) 89.76(M) 89.50(M) | 1.5205(M) 1.5181(M) 1.5095(M) | 1.0935(M) 1.0899(S) 1.0880(M) |
Support | 1.3451(S) 1.3405(S) 1.3345(M) | 88.70(M) 88.55(S) 88.25(S) | 1.4880(M) 1.4781(M) 1.4702(M) | 1.0765(M) 1.0691(M) 1.0609(M) |
The British pound sank against the greenback on Monday and looked set to post its biggest one day drop in more than a year after polls showed a growing chance that an upcoming general election may result in a hung parliament. Having broken through the key $1.50 level, the pound at one point dropped roughly 3 percent on the day, with traders citing selling by a UK bank after AIG said it would sell its Asian life insurance business to UK insurer Prudential Plc. Analysts said negative sterling sentiment snowballed in London trade, leading to frantic selling in the UK currency after it broke through key technical levels against the dollar. "Sentiment on sterling is very bad at the moment. Given half a chance, people will just sell it," said Paul Robinson, chief sterling strategist at Barclays Capital in London. The GBP/USD is currently trading at $78.55 as of 20:06pm, GMT, with a bullish trend.
The euro may fall further in the near term to $1.3451, where buy orders may be clustered, according to Mizuho Corporate Bank Ltd. Europe’s currency has lost 5.5 percent against the dollar this year on concern nations including Greece and Portugal will struggle to contain their budget deficits. “There are absolutely no signs on the monthly candles that the sell-off in the last three months may be coming to an end,” said Nicole Elliott, a London-based senior analyst at the bank. “What we are seeing now is a deeper correction in the euro than I’ve expected. We will need some dramatic shifts in a weekly chart to be able to say the trend is reversing.” The EUR/USD is currently trading at $1.3560 as of 20:30pm, GMT, with a bullish trend.
Canada’s dollar gained after a report showed the nation’s economy expanded in the fourth quarter more than economists forecast. The lonne gained as the nation’s economy expanded. The Bank of Canada will hold its overnight lending rate at 0.25 percent at its meeting tomorrow, according to all 21 economists in a survey. “We expect the Bank of Canada to turn more hawkish as the economy grew much faster than the Bank of Canada expected,” Sebastien Galy, a currency strategist at BNP Paribas in New York wrote in an email. “Some evidence that liquidity is creating already excesses in parts of the Canadian economy should force it to tighten much faster than the Fed.” The USD/CAD is currently trading at 1.0418 as of 20:43pm, GMT, with a bearish trend....
Finotec Analysis Team
01 March 2010
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Today's Economic Events
Time  |
Event |
Currency/Country
|
Period | Previous | Forecast |
Significance
|
Actual | |
|---|---|---|---|---|---|---|---|---|
| 01-03-2010 23:50 | Monetary Base (Y-o-Y) | Japan | Yearly | 4.9 |  | |||
| 01-03-2010 23:30 | Unemployment Rate | Japan | 5.1 |  | ||||
| 01-03-2010 23:30 | Household Spending (Y-o-Y) | Japan | Yearly | 2.1 | | |||
| 01-03-2010 23:30 | Job-To-Applicant Ratio | Japan | 0.46 | 0.47 | | 0.46 | ||
| 01-03-2010 23:15 | PMI Composite | Japan | 46.8 | | ||||
| 01-03-2010 15:00 | Construction Spending - Residential | United States | -2.7 | | ||||
| 01-03-2010 15:00 | Construction Spending - Total | United States | -1.24 | -0.5 | | -0.6 | ||
| 01-03-2010 15:00 | ISM Manufacturing Survey | United States | 58.4 | 57.8 | | 56.5 | ||
| 01-03-2010 13:30 | GDP (Q-o-Q) | Canada | Quarterly | 0.1 | | |||
| 01-03-2010 13:30 | GDP (Y-o-Y) | Canada | Yearly | 3.2 | | |||
| 01-03-2010 13:30 | GDP (M-o-M) | Canada | Monthly | 0.4 | 0.4 | | 0.6 | |
| 01-03-2010 13:30 | Industrial Product Price (M-o-M) | Canada | Monthly | 0.1 | 0.5 |  | 0.3 | |
| 01-03-2010 13:30 | Industrial Product Price (Y-o-Y) | Canada | Yearly | -0.8 | | |||
| 01-03-2010 13:30 | Raw Materials Price Index (M-o-M) | Canada | Monthly | -1.7 | 2.0 | | 3.3 | |
| 01-03-2010 13:30 | Raw Materials Price Index (Y-o-Y) | Canada | Yearly | 26.7 | | |||
| 01-03-2010 13:30 | Personal Income (M-o-M) | United States | Monthly | 0.3 | 0.4 | | 0.1 | |
| 01-03-2010 13:30 | Personal Spending (M-o-M) | United States | Monthly | 0.3 | 0.4 | | 0.5 | |
| 01-03-2010 13:30 | Personal Consumption Expenditure Deflator (Y-o-Y) | United States | Yearly | 2.1 | 2.2 | | 2.1 | |
| 01-03-2010 13:30 | Core Personal Consumption Expenditure (Y-o-Y) | United States | Yearly | 1.5 | | |||
| 01-03-2010 10:00 | Unemployment Rate | Eurozone | 10.0 | 10.1 | | 9.9 | ||
| 01-03-2010 09:30 | M4 Money Supply (M-o-M) | UK | Monthly | -1.1 | | |||
| 01-03-2010 09:30 | M4 Money Supply (Y-o-Y) | UK | Yearly | 6.4 | | |||
| 01-03-2010 09:30 | Net Consumer Credit | JPY/UK | 0.3 | -0.1 | | 0.5 | ||
| 01-03-2010 09:30 | Net Lending Sec. on Dwellings | JPY/UK | 1.2 | | ||||
| 01-03-2010 09:30 | Mortgage Approvals | UK | 58.2 | 49 | | 48 | ||
| 01-03-2010 09:30 | M4 Money Supply (M-o-M) | UK | Monthly | -1.1 | | |||
| 01-03-2010 09:30 | M4 Money Supply (Y-o-Y) | UK | Yearly | 6.4 | | |||
| 01-03-2010 09:30 | PMI Manufacturing | UK | 56.6 | 56.5 | | 56.6 | ||
| 01-03-2010 09:00 | PMI Manufacturing | Eurozone | 52.4 | 54.1 | | 54.2 | ||
| 01-03-2010 08:55 | PMI Manufacturing | Germany | 53.7 | 51.7 | | 57.2 | ||
| 01-03-2010 08:30 | PMI Manufacturing | Switzerland | 56 | 56.8 | | 57.4 | ||
| 01-03-2010 07:00 | Import Price Index (M-o-M) | Germany | Monthly | 0.5 | 0.7 | | 1.7 | |
| 01-03-2010 07:00 | Import Price Index (Y-o-Y) | Germany | Yearly | -1.0 | 0.4 | | 1.4 | |
| 01-03-2010 05:30 | RBA Commodity Index (Y-o-Y) | Japan | Yearly | 11.7 | | |||
| 01-03-2010 05:30 | RBA Commodity Index (Y-o-Y) | Australia | Yearly | 11.7 | | |||
| 01-03-2010 05:00 | Vehicle Sales (Y-o-Y) | Japan | Yearly | 36.8 | | |||
| 01-03-2010 05:00 | Official Foreign Reserves | USD/United States | 128.06 | | 129.43 | |||
| 01-03-2010 02:00 | ANZ Commodity Price | New Zealand | 0.4 | | ||||
| 01-03-2010 00:30 | Current Account Balance - BoP | AUD/Australia | -16.18 | | ||||
| 01-03-2010 00:30 | Company Operating Profit (Q-o-Q) | Australia | Quarterly | -2.1 | | |||
| 01-03-2010 00:01 | Hometrack Housing Survey (M-o-M) | UK | Monthly | 0.1 | | |||
| 01-03-2010 00:01 | Hometrack Housing Survey (Y-o-Y) | UK | Yearly | -0.8 | |
