Finotec News Archive - March 05 2010
The Euro slips as the ECB is set to keep interest rates low
The EUR/USD is currently trading at $1.3578 as of 20:12pm, GMT, with a bullish trendTammy Wally 
05 March 2010
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| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
|---|---|---|---|---|
Resistance | 1.3789(M) 1.3736(M) 1.3695(M) | 89.85(M) 89.51(M) 89.30(M) | 1.5327(M) 1.5205(M) 1.5136(M) | 1.0955(M) 1.0935(M) 1.0899(S) |
Support | 1.3475(M) 1.3433(M) 1.3405(S) | 88.55(M) 87.90(M) 87.35(S) | 1.4975(M) 1.4854(M) 1.4781(M) | 1.0771(M) 1.0735(M) 1.0685(M) |
The euro fell against the greenback on Thursday as comments by the European Central Bank reinforced the view interest rates in the region will remain low in the foreseeable future. The euro rose earlier in the session after Greece's sale of 10-year bonds drew solid demand. It later succumbed to selling pressure after European Central Bank President Jean-Claude Trichet stuck to his view euro zone economic recovery would be uneven and fragile. The ECB took a small step towards unwinding some extraordinary support for the economy it left much of its cash buffer for banks in place. "Although easing concerns over Greece have likely caused a reduction of short euro positions over the last couple of days, market enthusiasm for buying the euro remains limited," said Vassili Serebriakov, a currency strategist at Wells Fargo Bank. The EUR/USD is currently trading at $1.3578 as of 20:12pm, GMT, with a bullish trend.
Investors should use the U.K. pound to fund foreign-exchange bets instead of the Swiss franc or Japanese yen given those nations’ central banks are more likely than Britain to intervene in currency markets, UBS AG said. Mansoor Mohi Uddin, the chief currency strategist at UBS in Singapore, recommended selling the pound against the dollar if investors think global economic growth will be sluggish, and buying sterling if they want to bet on a stronger rally. “Investors should now consider trading directional views via the pound/dollar,” said Mohi-uddin in an interview. “In contrast to the Japanese yen or the franc, the U.K. authorities have stopped intervening unilaterally in the sterling market.” The GBP/USD is currently trading at $1.5030 as of 20:30pm, GMT, with a bullish trend.
Canada’s dollar traded in a range as stocks swung between gains and losses after an index of Canadian business activity rose less than forecast in February. The Ivey Purchasing Managers index rose to 51.9 last month, below the median forecast of 56 in a Bloomberg News survey, and Canadian building permits unexpectedly fell in January, a third straight decline, a separate report showed. “A lot of the good news is already priced into the Canadian dollar,” said Shaun Osborne, chief currency strategist in Toronto at Toronto-Dominion Bank, Canada’s second-largest lender. “Today’s numbers were not that impressive, but there’s other data that suggests the economy’s on strong footing.” The USD/CAD is currently trading at 1.0310 as of 20:51pm, GMT, with a bullish trend.
Finotec Analysis Team
05 March 2010
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Today's Economic Events
Time  |
Event |
Currency/Country
|
Period | Previous | Forecast |
Significance
|
Actual | |
|---|---|---|---|---|---|---|---|---|
| 05-03-2010 20:00 | Consumer Credit | USD/United States | -4.57 | -3.8 |  | 4.96 | ||
| 05-03-2010 13:30 | Non-Farm Payroll (M-o-M) | United States | Monthly | -26 | -20 |  | -36 | |
| 05-03-2010 13:30 | Avg Weekly Hours | United States | 33.3 | 33.7 |  | 33.1 | ||
| 05-03-2010 13:30 | Change in Manufacturing Payrolls | United States | 11 | | ||||
| 05-03-2010 13:30 | Unemployment Rate | United States | 9.7 | 9.8 | | 9.7 | ||
| 05-03-2010 13:30 | Avg Hourly Earnings (M-o-M) | United States | Monthly | 0.2 | 0.2 | | ||
| 05-03-2010 11:00 | Factory Goods Orders (M-o-M) | Germany | Monthly | -1.6 | 1.3 | | 4.3 | |
| 05-03-2010 11:00 | Factory Goods Orders (Y-o-Y) | Germany | Yearly | 8.4 | 15.4 | | 17.6 | |
| 05-03-2010 09:30 | PPI Input (M-o-M) | UK | Monthly | 2.0 | 0.2 | | 0.1 | |
| 05-03-2010 09:30 | PPI Input (Y-o-Y) | UK | Yearly | 8.4 | | |||
| 05-03-2010 09:30 | PPI Output (M-o-M) | UK | Monthly | 0.4 | 0.2 | | 0.3 | |
| 05-03-2010 09:30 | PPI Output (Y-o-Y) | UK | Yearly | 3.8 | 4.0 | | 4.1 | |
| 05-03-2010 09:30 | Core PPI Input (M-o-M) | UK | Monthly | 1.1 | | |||
| 05-03-2010 09:30 | Core PPI Input (Y-o-Y) | UK | Yearly | 1.8 | | |||
| 05-03-2010 09:30 | Core PPI Output (M-o-M) | UK | Monthly | 0.4 | 0.2 | | 0.3 | |
| 05-03-2010 09:30 | Core PPI Output (Y-o-Y) | UK | Yearly | 2.5 | | |||
| 05-03-2010 05:30 | Official Foreign Reserves | USD/Australia | 41.50 | | ||||
| 05-03-2010 05:00 | Official Foreign Reserves | €/Germany | 127.97 | |
