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11:23 2007/10/26
European Forex Recap
FX Solutions
European Forex Recap
Date: Friday October 26, 2007
??? The U.S. dollar is lower against the Euro, Swiss Francs and Canadian Dollar heading for a third weekly decline as an unexpected frop in U.S. durable goods orders yesterday combined with increased speculation about corporate losses linked to the housing slump. American International Group Inc. fell the most 12 weeks in New York on speculation it will write down assets linked to the collapse of the subprime- mortgage market. The dollar is suffering as well from fading or lower yields at a time when the market thinks that the Fed may have to cut interest rates again. The U.S. had experienced the worst housing slump in 16 years with borrowers defaulting on home loans that implicated losses in the banking industry.
??? The Japanese Yen headed for a 2 percent decline against the Australian and New Zealand dollars this week after government data showed Japan's consumer prices fell for an eighth consecutive month, damping the outlook for an increase in interest rates. Core consumer prices, which exclude fresh food, dropped 0.1 percent in September from a year earlier, matching economists' forecasts. Industrial production fell 1.4 percent in September from a month earlier, more than the median estimate for a 1.2 percent decline. The Bank of Japan might leave its benchmark rate unchanged at 0.5 percent and lower its growth and inflation forecasts when it meets Oct. 31, according to economists.
??? Crude Oil rocketed to all-time highs today above $92.00 per barrel as the dollar tumbled to record lows. Washington imposed new sanctions on Iran accused its Revolutionary Guard of spreading weapons of mass destruction. An attack on Nigerian Oil rigs as gunmen shut the oil production. Africa??™s biggest oil producer. Last on the NYMEX crude was 91.35 per barrel.
??? European Stocks were marginally lower led by retailers, after the dollar??™s decline against the euro and oil prices surged to an all time high. Royal Ahold NV, the Dutch owner of the U.S. Stop & Shop supermarket chain, dropped the most in two years on lower profitability at its American stores.
??? Asian Stocks rose after Sony Corp. and Honda Motor co. reported better than expected earnings signaling companies in Japan are weathering the economic slowdown and demand from the U.S. BHP Billiton Ltd and Cnooc Ltd gained as crude oil rose above $92.00 per barrel. Hang Seng rose the 30,000 mark, led by Sino Land Co. and property developers on speculation that borrowing costs will fall.
??? Dow Jones closed yesterday at -3.33 points (-0.02%)
??? Asian Stocks closed: Nikkei +221.46 (+1.36%), Hang Seng +550.73 (+1.84%), Australian S&P +76.30 (+1.15%)
??? European Stock Market: DJ Stoxx +0.66 (+0.01%), FTSE +8.60 (+0.13%), CAC -5.04 (-0.09%), DAX -0.16 (0.00%)
Upcoming Economic Data
10:00 am U.S.Michigan Consumer Sentiment (Oct)
11:00 am Canadian Budget Balance (Aug)
Trading Ranges 11:00 pm ??“ 7:00 am EST
11:00 pm HIGH LOW 7:00 am
GBP/USD 2.0511 2.0575 2.0505 2.0513
EUR/USD 1.4321 1.4315 1.4320 1.4371
USD/JPY 114.27 114.60 114.20 114.33
USD/CHF 1.1658 1.1665 1.1625 1.1630
AUD/USD 0.9102 0.9147 0.9095 0.9130
NZD/USD 0.7640 0.7670 0.7623 0.7644
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