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11:16 2007/10/25
European Forex Recap
FX Solutions
European Forex Recap
Date: Thursday October 25, 2007
??? Euro and Sterling were higher in the European session as the yen crosses have been once again the main market driver as the weaker yen went lower giving support as well with the higher Australian and New Zealand dollars.
??? The Japanese Yen fell against the major currencies overnight as rising European stocks while investors buy higher-yielding assets with loans from Japan. Trades in credit- default swaps showed the risk of owning the debt of European companies fell today, making carry trades more attractive to investors. Higher oil prices being another factor since Japan is one of the largest importer of crude oil.
??? German IFO Business Climate for October was marginally higher than expected at 103.90 versus the median forecast of 103.80. No reaction to Euro.
??? Dollar is lower against the Swiss Francs and Canadian Dollars. Traders look to the SNB vice chairman Hildebrand in Switzerland at 15:30 GMT (11:30est) at the Bern Trade & Indus Asso. On the topic of financial market turbulence and economic development.
??? Derivative markets are showing that it's cheaper to exchange fixed- for floating- interest-rate payments over a two-year period in the U.S. than in Europe for the first time since April 2004. The rate on a U.S. two-year interest-rate swap, used by companies and investors to hedge against changes in interest rates, fell below its counterpart in Europe by 0.01 percentage points yesterday. The two-year U.S. swap rate was one percentage point more than those in Europe at the start of the year.
??? Crude oil rose near $89 in New York after the biggest drop in U.S. imports since March caused an unexpected decline in inventories. Brent futures rose to a record in London. Stockpiles fell 5.3 million barrels last week to their lowest since Jan. 5 as imports fell 13 percent, the Energy Department said yesterday.
??? European stocks rose after France Telecom SA and ABB Ltd., the world's largest builder of electricity networks, reassured investors that earnings in the region will keep growing
??? Asian stocks rose, led by Posco and Hyundai Heavy Industries Co., after South Korea reported the fastest economic growth in almost two years. Cheung Kong (Holdings) Ltd. paced gains by Hong Kong's real-estate developers on expectations borrowing costs will fall and spur home demand. Canon Inc. led Japanese exporters lower after the yen rose against the dollar
??? Dow Jones closed yesterday at -0.98 points (-0.01%)
??? Asian Stocks closed: Nikkei -74.22 (-0.45%), Hang Seng +520.96 (+1.78%), Australian S&P -10.10 (-0.15%)
??? European Stock Market: DJ Stoxx +40.85 (+0.94%), FTSE +69.40 (+1.07%), CAC +54.50 (+0.96%), DAX +84.92 (+1.08%)
Upcoming Economic Data
8:30 am U.S. Durable Goods Orders
8:30 am U.S. Weekly Jobless Claims
10:00 am U.S. Help Wanted Index
10:00 am U.S. New Home Sales
11:30 am Swiss National Bank vice president Hildebrand press conference at at the Bern Trade & Indus Asso. On the topic of financial market turbulence and economic development.
Trading Ranges 11:00 pm ??“ 7:00 am EST
11:00 pm HIGH LOW 7:00 am
GBP/USD 2.0471 2.0530 1.4246 2.0503
EUR/USD 1.4270 1.4310 2.0451 1.4304
USD/JPY 114.05 114.40 113.87 114.39
USD/CHF 1.1716 1.7528 1.1666 1.1674
AUD/USD 0.9023 0.9069 0.9010 0.9063
NZD/USD 0.7531 0.7592 0.7523 0.7585
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