5 Important Things Coming to New York Session

Factors Fueling U.S. stocks and CFDs, Wednesday, March 20:

Jitters Cyprus: Cyprus Tensions are moving towards bankruptcy continues after parliament rejected Cyprus EU bailout terms. So far, banks in Cyprus are still closed until the weekend, at the same time the ECB has threatened to end emergency aid to troubled banks in the country. However there is still hope that Russia will disburse funds as it had been given to Cyprus before.

BoE Minutes: Pound jumped after struck by the BoE minutes showed that one of the reasons why the central bank did not increase the stimulus is concern about inflationary pressures in the event of additional QE BoE officials feared would lead to further weakening pound sterling thus giving the perception that the central bank failed to maintain commitment to low inflation levels. 

Fed Statement: The focus of investors will be focused on the Fed's statement after the FOMC meeting, which is expected to continue to maintain the bond purchase program of $ 85 billion per month. In addition, the market participants will be waiting for the economy and interest rate projections the Fed, particularly the unemployment outlook, in December, forecast the U.S. unemployment rate was in the range 7.4% - 7.7%. If the Federal Reserve lowered its unemployment rate, it will signal the strengthening of the U.S. labor market.

FedEx Earnings: Investors can also measure the pulse of the economy through FedEx earnings are expected to shrink profit over the previous year, largely due to higher jet fuel prices. Share CFDs FedEx alone has risen 17% since the beginning of this year.

Lennar Results: Signal recovery housing sector is also expected to contribute to earnings Lennar. Home builders are expected to increase sales and profits and new orders surge. Share CFDs Lennar gained 57% so far in the last year.

Investors Focus This Week Asia focused on Japan Trade Data

Focus on Asian investors this week will be focused on Japan's trade data which will be a test of the new Japanese government policy, other than that attention will be focused on earnings reports China's energy giant, CNOOC and Sinopec.

Japan's trade data will provide additional evidence whether Japanese exporters benefit from PM Shinzo Abe added that maintaining the weakening Japanese yen. In addition, the investors will also see Japan's trade report as a measure of global demand.

Japanese Parliament finally approved the new management at the Bank of Japan and the government took measures to support monetary policy in an effort to push back the third largest economy in the world.

The upper house gave the green light to Haruhiko Kuroda as the Governor of the Bank of Japan, a former head of the Asian Development Bank (ADB) to undertake aggressive measures of monetary easing after its predecessor failed to change the fate of the Japanese economy.

The Star Online Friday (03/15/2013) that includes news, Japanese House of Representatives also approved Kikuo Iwata and Hiroshi Nakaso as deputy governor accompanied Kuroda, unanimously came despite warnings from the opposition who oppose Iwata.

After receiving approval from the parliament, the new management team of Bank of Japan will take their position next week to discuss the focus of their first policy next month.

Expectations decrease RBA Interest Rate Reduced Reference

At the end of last week, the Aussie managed to record the strongest weekly gain in 6-months ahead of the release of the meeting minutes Reserve Bank of Australia on 19 March that might provide clues about why the policy makers to keep interest rates unchanged for the 3rd time in a row.

While the data surge biggest job in 13 years, seen in the data on Thursday, has forced traders to trim expectations for RBA rate cuts.

'Expectations RBA rate cuts have reduced quite substantially, leading to a strong rebound in Aussie. I think the RBA will be more cautious, they do not want to lower interest rates too far and too fast. "Said Derek Mumford, a director at Rochford Capital in Sydney.

Data this week's data to be released from this kangaroo country is New Motor Vehicle Sales and Monetary Policy Meeting Minutes.

When this news was revealed, the AUD / USD traded higher at 1.0374 the highest price.

Bank of Cyprus Deposit Levies Applicable Early This Week

Levies on bank deposits in Cyprus will go into effect earlier this week Monday, March 18, 2013. Where Cyprus will take immediate measures to prevent the transfer of electronic money over the weekend.

'Contribution to financial stability Cyprus, seems only to require contributions from all holders of deposits, "said Dutch Finance Minister, Jeroen Dijsselbloem, who chaired the meeting in Brussels, as reported by Reuters (16/03/2013).

In return for emergency loans, Cyprus agreed to increase the tax rate by 2.5 percentage points institutions to 12.5 percent. And this is expected to be able to increase revenue Cyprus to limit the size of the loan required from the euro zone and keeping public debt.

And Dijsselbloem said under this program, the Mediterranean island nation's debt would fall to 100 percent of economic output in 2020.

Traded over the weekend euro hit one-week highs against the U.S. dollar after data showed a lack of U.S. inflation, which will make room for the Federal Reserve to keep QE3.

The euro was also supported by the results of the meeting of European leaders, who opened the way for finance ministers to preparing a bailout package for Cyprus.

While the size of the banking sector has complicated the Cyprus problem with the ratio of deposits that reach 8x GDP. Initial assessment needs help predict Cyprus € 17 billion which € 10 billion will be used to stabilize the banking sector. It's certainly big enough load for the Cyprus economy value only reached € 18 billion.

Along Mighty Dollar U.S. Economic Outlook Sunny


Market sentiment in the forex market today quite a mixed session from Asia and Europe as a short-term trading action amid lack of key economic data released Tuesday.

Republicans at the U.S. House of Representatives indicate an unveiled plans Sequester alternative tonight to make budget cuts of $ 4.6 trillion in the next decade, while the Democrats in the Senate will also give their own proposals on Wednesday tomorrow which is expected to provide an alternative plan of tax increases and spending cuts.

From the macroeconomic performance of the U.S. economy continued to surprise positively contributed to the positive catalyst the U.S. dollar, as the macroeconomic conditions in Europe and the UK is quite a contrast after the data reported British manufacturing production fell below estimates and the data indicate Q1 GDP growth will be burdened as acceleration contraction in industrial and manufacturing sectors. Riskier currencies like the euro are also vulnerable to a sell-imposed austerity policies as the euro zone indicate an hamper the pace of recovery from the recession of the European Union.

Observed so far the U.S. dollar index rose 0.15% at the level of 82.70, after reaching its highest point at 82.81 and an intraday low at 82.64 daily.

BoJ Governor Candidate Says No Need to Change Target Inflation

 
Candidate for Governor of the Bank of Japan (Bank of Japan/BoJ), Haruhiko Kuroda said the government does not need to change the inflation target of 2 percent or setting a target for consumer prices, excluding food and energy.

"Target price BoJ is currently focused on core prices, which exclude fresh food and energy costs," said the man aged 68, who decided to resign as president of the Asian Development Bank (ADB), as reported by Reuters on Monday (3/11/2013).


While the core of the Japanese consumer price excluding food and energy, similar to the size of the core consumer price used the United States.

As is known, Kuroda is a proponent of aggressive monetary easing. He often spoke to lawmakers in the upper house should be the policy of the central bank. Prime Minister Shinzo Abe hoped, a former top diplomat was doing radical easing now in control of the BoJ to end a nearly two-decade deflationary Japanese twist.

Meanwhile, Japan's machinery orders fell 13 percent in January 2013, the largest decline in eight months. This result is a signal to the upper limit of the company's investment business encourages Prime Minister Shinzo Abe's economic revival.

Japan returned to growth in the fourth quarter as the yen began to slide, strengthening Abe campaign to end 15 years of deflation and revive the third largest economy in the world.

"Going forward, we expect accelerating consumption, housing and public investment," Devalier said, as quoted by Bloomberg, on Monday (11/03/2013).

"But given the trend of exports is weak, it will take more time before we see a business environment driven by pelamahan yen and increased optimism producers translates into strong corporate investment," he added.
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