Currency Headlines
Foreign Demand for U.S. Assets Rises on Global Slowdown
International purchases of U.S. stocks, bonds and other financial assets rose more than forecast in December as investors sought shelter from slowing global growth.
Net buying of long-term financial assets totaled $64.2 billion during the month, up from net purchases of $52.4 billion in November, the Treasury Department said today in Washington. Economists surveyed by Bloomberg projected net buying of $35 billion of long-term assets, according to the median estimate.
The significant increase in December is a reflection of the heightened concern among global investors about the U.S. economy being pushed into a recession by the fiscal cliff,” Millan Mulraine, senior U.S. strategist for TD Securities Inc. in New York, said after the report was released. “Investors who feared the adverse impact of a U.S. economic slowdown on global activity fled to the safe haven of Treasuries.”
In December, President Barack Obama and Republicans in Congress were at a standoff over tax increases and spending cuts that threatened growth in the world’s biggest economy. The U.S. House of Representatives on Jan. 1 passed legislation that avoided what had been called the “fiscal cliff.”
Pound Declines as King Says Inflation to Stay Above 2%
The pound had its biggest weekly drop against the dollar since June after Bank of England Governor Mervyn King said inflation will stay above the Bank’s 2 percent target for the next two years even with weak growth.
The pound declined against all of its 16 major peers this week as the Confederation of British Industry, the U.K.’s biggest business lobby group, lowered its 2013 growth projection to 1 percent from 1.4 percent. King said on Feb. 13 that the economy faces “big challenges” and there were “limits” to what policy makers could achieve. Gilts fell, with the 10-year yield climbing to the highest level since April.
The pound dropped 1.8 percent last week to $1.5521 at 5:10 p.m. in London yesterday, the steepest decline since the period ended June 1. It fell to $1.5462, the lowest since July 25. Sterling depreciated 1.8 percent from Feb. 8 to 86.06 pence per euro. That’s the fifth weekly drop against the single currency in seven.
Data last week added to evidence that the U.K. economic expansion is slowing. Retail sales unexpectedly fell in January for a second consecutive month. Sales including fuel declined 0.6 percent from December, when they dropped a revised 0.3 percent, the Office for National Statistics said yesterday. The median forecast of 24 economists in a Bloomberg News survey was for an increase of 0.5 percent.
TECHNICAL INSIGHT USDINR FEB 2013
The pair has shown strong momentum on upside. Some Cool-Off can be expected after sharp up move in past few sessions.
Buy near 54.20 SL 54.05 TGT 54.40/54.60 OR Sell near 54.60 SL 54.75 TGT 54.40/54.20
EURINR FEB 2013
Impact of weak EURUSD is seen in EURINR also. Buy can be considered of supports.
Buy near 72.20 SL 71.80 TGT 72.20/72.40/72.60 OR Sell near 72.60 SL 72.80 TGT 72.45/72.20
GBPINR FEB 2013
The pair has shown strong recovery from lower levels.
Buy near 83.98 SL 83.80 TGT 84.25/84.40
JPYINR FEB 2013
Given uncertainty in USDJPY globally, the pair can have Gap up OR Gap down open. Its better to take any call after watching the 1st hour of trade in USDINR
Foreign Demand for U.S. Assets Rises on Global Slowdown
International purchases of U.S. stocks, bonds and other financial assets rose more than forecast in December as investors sought shelter from slowing global growth.
Net buying of long-term financial assets totaled $64.2 billion during the month, up from net purchases of $52.4 billion in November, the Treasury Department said today in Washington. Economists surveyed by Bloomberg projected net buying of $35 billion of long-term assets, according to the median estimate.
The significant increase in December is a reflection of the heightened concern among global investors about the U.S. economy being pushed into a recession by the fiscal cliff,” Millan Mulraine, senior U.S. strategist for TD Securities Inc. in New York, said after the report was released. “Investors who feared the adverse impact of a U.S. economic slowdown on global activity fled to the safe haven of Treasuries.”
In December, President Barack Obama and Republicans in Congress were at a standoff over tax increases and spending cuts that threatened growth in the world’s biggest economy. The U.S. House of Representatives on Jan. 1 passed legislation that avoided what had been called the “fiscal cliff.”
Pound Declines as King Says Inflation to Stay Above 2%
The pound had its biggest weekly drop against the dollar since June after Bank of England Governor Mervyn King said inflation will stay above the Bank’s 2 percent target for the next two years even with weak growth.
The pound declined against all of its 16 major peers this week as the Confederation of British Industry, the U.K.’s biggest business lobby group, lowered its 2013 growth projection to 1 percent from 1.4 percent. King said on Feb. 13 that the economy faces “big challenges” and there were “limits” to what policy makers could achieve. Gilts fell, with the 10-year yield climbing to the highest level since April.
The pound dropped 1.8 percent last week to $1.5521 at 5:10 p.m. in London yesterday, the steepest decline since the period ended June 1. It fell to $1.5462, the lowest since July 25. Sterling depreciated 1.8 percent from Feb. 8 to 86.06 pence per euro. That’s the fifth weekly drop against the single currency in seven.
Data last week added to evidence that the U.K. economic expansion is slowing. Retail sales unexpectedly fell in January for a second consecutive month. Sales including fuel declined 0.6 percent from December, when they dropped a revised 0.3 percent, the Office for National Statistics said yesterday. The median forecast of 24 economists in a Bloomberg News survey was for an increase of 0.5 percent.
TECHNICAL INSIGHT USDINR FEB 2013
The pair has shown strong momentum on upside. Some Cool-Off can be expected after sharp up move in past few sessions.
Buy near 54.20 SL 54.05 TGT 54.40/54.60 OR Sell near 54.60 SL 54.75 TGT 54.40/54.20
EURINR FEB 2013
Impact of weak EURUSD is seen in EURINR also. Buy can be considered of supports.
Buy near 72.20 SL 71.80 TGT 72.20/72.40/72.60 OR Sell near 72.60 SL 72.80 TGT 72.45/72.20
GBPINR FEB 2013
The pair has shown strong recovery from lower levels.
Buy near 83.98 SL 83.80 TGT 84.25/84.40
JPYINR FEB 2013
Given uncertainty in USDJPY globally, the pair can have Gap up OR Gap down open. Its better to take any call after watching the 1st hour of trade in USDINR
No comments:
Post a Comment