Month: October 2012

By Central Bank News
    The central bank of Serbia raised its key policy rate by another 25 basis points to 10.75 percent, its fourth increase this year, to push down inflation, already significantly above the bank´s target range.
    The National Bank of Serbia (NBS) also held out the prospect of further interest rate rises, saying the “degree of future monetary policy restrictiveness in the coming period will depend on the success in containing inflation expectations, the impact of external factors and the effects of fiscal consolidation.”
    Inflation in August of 7.9 percent was above the central bank´s upper tolerance range of 5.5 percent and said the forces driving up inflation was higher food prices from a bad harvest, higher administered prices and VAT and duties.
    “In view of higher than expected growth in food and administered prices and elevated inflation expectations, the Executive Board decided to raise the key policy rate to prevent the spillover to other prices,” the bank said after a meeting of its executive board.
    Nevertheless, the bank acknowledged that inflation was being fueled by one-off factors and low demand should have disinflationary influence in the future, along with expected fiscal consolidation.
    The central bank expects inflation to peak in the first half of 2013 and then decline to within the bank´s target range of 4 percent, plus/minus 1.5 percentage points.
    The bank has earlier said it expects inflation of 9-10 percent at the end of 2012.
    The NBS raised rates in June, July and August for a total of 100 basis points.
    www.CentralBankNews.info

By The Sizemore Letter

Back in April, I wrote favorably about Molson Coors ($TAP) (see “Beer Stocks: Crack One Open”), noting that the brewer was significantly cheaper than Anheuser Busch InBev ($BUD) and SABMiller (SBMRY) and that it paid the best dividend of any major brewer.  At 3.1%, its dividend yield at the time was nearly double that of Anheuser Busch InBev.

Since then, Molson Coors is up a modest 10%, more or less in line with the S&P 500.  Meanwhile, BUD has rallied by more than 20%.

But looking longer term, we see an even starker contrast.  Since the beginning of 2010, Molson Coors has trailed its “Big Beer” peers by a wide margin.  Anheuser Busch InBev, SABMiller and Heineken (HINKY) are up 66%, 50%, and 30%, respectively.

But Molson Coors?

TAP has been flatter than a three-week-old keg, actually showing a slight loss over the past two years.

So, what gives?  What explains the lack of investor interest in Molson Coors?

It’s really quite simple.  Molson Coors missed the party in emerging markets.

Prior to its June acquisition of Eastern European brewery StarBev, Molson Coors had negligible exposure to emerging markets.  Its business was limited almost exclusively to North America and the UK, where beer brewing is a slow-growth business.  And outside of its trendy Blue Moon brand, Molson Coors had also largely missed out on the one promising growth outlet for the North American market: upscale premium microbrews.

The company found itself selling low-margin, mass-market beer to an aging and shrinking North American and British market.  Molson Coors faced relentless competition from both Budweiser and Miller at the mass-market level, and from innumerable up-and-coming foreign and premium brands at the higher end.  Not the sort of scenario that would make investors thirsty for more.

Even after the StarBev merger, Molson Coors will only sell about 14% of its volumes outside of North America and the UK.

Meanwhile, take a look at BUD.  Anheuser Busch InBev sells more beer in Latin America (34% of volumes) than it does in North America (32% of volumes).  Overall, emerging markets make up more than half of all beer sold.

And BUD isn’t even the best positioned of the group.  Heineken is a long-term recommendation of the Sizemore Investment Letter precisely because of its exposure to emerging markets and specifically to Africa, the next great growth market.  Heineken gets 21% of its profits from Africa already, and this figure is set to skyrocket as African incomes rise and millions of Africans join the ranks of the middle classes.  Rival SABMiller is also a major player in Africa, and particularly in South Africa.

Heineken also made a major expansion into Southeast Asia this year with its purchase of Asia Pacific Breweries.

So, where does all of this leave Molson Coors?

With the global beer market already well on its way to consolidation, there are not a lot of attractive acquisition targets left to snag, and those that do come up are not likely to go cheaply.  Realistically, Molson Coors will be primarily a North American seller of suds for the foreseeable future.

This isn’t all bad.   While the Echo Boomers—the large generation of Americans in their 20s and very early 30s—do not slosh the stuff as enthusiastically as previous generations (they tend to prefer vodka-based mixed drinks), there are signs of life in the domestic market.  U.S. beer shipments are actually up this year, after falling slightly for the past three years in a row.  Mass-market brewing may no longer be a growth business in the United States and Canada, but it is generally pretty stable.  We don’t have to worry about any of the major brewers facing financial distress any time soon.

Looking at Molson Coors’ financials, I continue to believe the stock has value as a cheap income stock.  TAP trades for just 11 times expected 2013 earnings and pays a dividend of 2.9 percent—the highest of all major beer brewers.  This isn’t a “home run” stock, but it’s one that is priced to offer decent returns going forward.

Bottom line: If you want growth, Heineken remains my favorite brewer.  But I consider Molson Coors a worthwhile choice for a long-term dividend-focused portfolio.

This article first appeared on InvestorPlace.  Sizemore Capital is long HINKY.

SUBSCRIBE to Sizemore Insights via e-mail today.

Related posts:

• Charles Sizemore Discusses His Favorite Beer Stocks on Bloomberg TV
• Beer Stocks: Crack One Open
• Whiskey and Beer Better Long-Term Bets than Wine

By OilPrice.com

As America’s clean energy industry takes up position in a no-man’s land between subsidies and sustainability, the idea of “Green Banks” is being touted as a life-line that will push the industry into maturity, but it’s an idea that will only work on a state level and by empowering states to make their own clean energy decisions.

Green Banks are essentially clean energy finance banks formed at the federal or state level that operate as public-private financing institutions with the power to raise capital to support clean energy projects through loans and loan guarantees. These banks can issue bonds and sell equity and they can often offer cheap loans.

In the US, it is the state level that would likely take the lead in forming Green Banks, and the state of Connecticut has already taken the plunge with the establishment of the Clean Energy Finance and Investment Authority (CEFIA). Launched last year, CEFIA merges several clean energy funds whose revenues come from a utility system benefit fund and the Regional Greenhouse Gas Initiative, among others, with a financing authority repurposed as a clean energy investment bank. Presently, CEFIA is talking with solar photovoltaic stakeholders to boost the bundle, and according to the Brookings Institute, is close to making its first loans.

In Germany and the United Kingdom, the idea of the Green Bank has also taken hold, with a clean energy development bank already boasting success in Germany, while the UK’s is only just getting off the ground. The UK’s version, however, is experiencing some setbacks in and a recession and deficit that is not falling as planned, the UK Green Investment Bank is behind on gaining borrowing powers.

The idea is being put forward by the Brookings Institute, which issued an in-depth report on Green Banks last week as part of the Brookings-Rockefeller Project on State and Metropolitan Innovation.

But the idea is not entirely new. In fact, the Export-Import Bank of the United States (Ex-Im Bank) and the Overseas Private Investment Corporation are similar endeavors that have successfully raised capital for energy and infrastructure in the past. The difference this time around is that Green Banks would be the purview of state governments rather than the federal government.

But the idea is not entirely new. In fact, the Export-Import Bank of the United States (Ex-Im Bank) and the Overseas Private Investment Corporation are similar endeavors that have successfully raised capital for energy and infrastructure in the past. The difference this time around is that Green Banks would be the purview of state governments rather than the federal government.

State budgets are challenged financially, so Green State Banks would be a sound solution that would allow states to leverage public money with private sector funds and, importantly, private sector experience. The overall effect will be to cut clean energy’s dependence on federal subsidies and tax credits, which in turn will make them more competitive and hopefully push development into full maturity, all the while allowing states to make their own decisions. It is also much easier for states to forge public-private relations than it is for the federal government.

There is no single model that could work across states, however, so it is up to each state to design their own form of green banking. There are at least three models of banks that states could choose from depending on their specific circumstances and needs. The Connecticut model is a semi-public corporation that merges funds the state already has for clean energy with private investment in the bank. They could also take an existing infrastructure bank and add on a Green Bank to its services, or transform a grant authority into a lending authority in partnership with the private sector.

More to the point: How will this affect the consumer? According to Bill Ritter, Director of the Center for the New Energy Economy (CNEE) at Colorado State University, consumer purchased energy resources “have never fit well without our existing utility model” because “utilities charge consumers for energy on a monthly basis, having financed their investments over time. Yet, when a consumer purchases efficiency or generation resources, traditionally they need to make a one-time, large up-front expenditure and then see their savings accrue over time through a reduction in their utility bill.”

Green Banks, he argues, would give consumers more and better options. Specifically, they would allow consumers to replace a portion of their monthly utility payment with a payment for energy efficiency or solar power and thus “protect themselves against rising utility bills and increase the value of their home or business while lowering their utility costs at the same time.”

The bottom line is that green banking is a good idea, as long as it remains the purview of state governments rather than the federal government. At a time when clean energy is under attack and only on the cusp of maturity, state green banks could be the first feasible plan out there, and it’s likely to be attractive to a host of governors. The idea will gain even more traction if Congress fails to extend the production tax credit (PTC) this year. Without green banking, the PTC is the only way the clean energy industry will survive. Green banking is a more viable alternative that extending the PTC.

Source: http://oilprice.com/Alternative-Energy/Renewable-Energy/Money-A-New-Decentralized-Shade-of-Green.html

By. Jen Alic of Oilprice.com

London Gold Market Report
from Ben Traynor
BullionVault
Tuesday 9 October 2012, 07:45 EDT

SPOT MARKET prices for buying gold eased to just above $1770 an ounce during Tuesday morning London trading, around ten Dollars below where they started the week, while stocks and commodities were broadly flat despite major economies seeing their growth forecasts downgraded by the International Monetary Fund.

Prices to buy silver dropped below $34 an ounce – down more than 2% on the week so far.
US Treasury bond prices gained this morning, in contrast with those for UK and German government debt, which fell along with the Euro.

A day earlier, the volume of gold held to back SPDR Gold Shares (GLD), the world’s biggest gold ETF, hit a new all-time high at 1340.5 tonnes.

“Though the market conditions are still favorable for gold, liquidation of long positions may push the metal lower,” says the latest note from refiner Heraeus.

“The demand for investment bars continues to be steady,” it adds.

Last Tuesday saw the net long position of bullish minus bearish Gold Futures and options contracts on the Comex hit its highest level since August 2011, weekly data published by the regulator show.

On the currency markets this morning, the Euro fell almost 1¢ against the Dollar, the fall coinciding with an appearance by the European Central Bank president at the European Parliament.

“The return of Dollar strength has stalled the move in gold,” says Deutsche Bank analyst Michael
Lewis.

“But it’s very temporary; we’re still on track to see more gains.”

Eurozone economies will contract more than previously expected, while a number of European governments are set to miss deficit targets next year, according to the latest World Economic Outlook from the IMF, published Monday.

The Eurozone as a whole will shrink by 0.4% in 2012 – down from 0.3% forecast in July – and will grow by only 0.2% in 2013, compared to 0.7% projected three months ago.

Germany and France, the two largest Euro area economies, are expected to see slower growth than previously forecast this year and next.  Italy and Spain, the third and fourth largest Eurozone economies respectively, will contract more sharply this year and next than previously projected, the IMF said.

“There is no chance that Spain will hit its targets,” says Megan Greene, director of European economics at research firm Roubini Global Economics.

“The deficit targets are economic suicide.”

Spain’s deficit target for 2012 is 6.3% of GDP and 4.5% for next year. The IMF says it expects the actual deficit to be 7% of GDP this year and 5.7% next.

“Attention should be paid to meeting structural fiscal targets, rather than nominal targets that will likely be affected by economic conditions,” the IMF report said.

In addition, “the ECB should keep its policy rate low for the foreseeable future or reduce it even further,” it said.

“The ECB should also continue to provide ample liquidity to banks.”

The ECB “stands ready” to buy distressed sovereign bonds under its Outright Monetary Transactions program, ECB chief Mario Draghi told the European Parliament Tuesday.

But the central bank “cannot undertake monetary financing and cannot replace what other member states should do,” Draghi added.

“It’s too easy to think that the ECB can replace governments’ action or lack of it [by] printing money. That’s not going to happen.”

Elsewhere in Europe, German chancellor Angela Merkel visits Athens today for talks with prime minister Antonis Samaras, who is seeking an extra two-years for which to implement austerity measures.

“Merkel’s primary constituency is Germany, not Greece,” says Ralph Brinkhaus, a member of parliament from Merkel’s CDU party.

“She knows what millions of voters back home expect her to say…Merkel is on a carrot and stick exercise: show support and hope for the plight of Greeks with the reminder that there has to be a quid pro quo.”

Ratings agency Moody’s has downgraded Cyprus from Ba3 to B3, citing exposure of the countries’ banks to Greek debt. Moody’s maintains its negative outlook on Cyprus.

Britain meantime has also had its growth forecasts for this year and next cut by the IMF last night, which said that “countries with room for maneuver should smooth their planned adjustment over 2013 and beyond”.

“What we need in Britain is not ‘Plan B’,” countered British prime minister David Cameron.

“[That] is more borrowing. How can you borrow your way out of a debt crisis?”

Cameron instead called for a “Plan A+”.

Over in China, the world’s second-biggest gold buying country last year, the central bank “will make policy more pre-emptive, targeted and effective”, its governor Zhou Xiaochuan wrote in an article for the latest edition of central bank-published magazine China Finance.

“The external environment for our country’s economic growth is very grim,” wrote Zhou,” and downward pressure on the domestic economy remains relatively big.”

Ben Traynor
BullionVault

Gold value calculator   |   Buy gold online at live prices

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK’s longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. Ben writes and presents BullionVault’s weekly gold market summary on YouTube and can be found on Google+

(c) BullionVault 2012

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Article by AlgosysFx Forex Trading Solutions

On positive indications that improved consumer confidence could provide a boost to the world’s largest economy, the US dollar is deemed to gain ground opposite the Swiss franc today. After the encouraging Non-Farm Payrolls report for September, another report today is seen to reveal that Americans are ready to spend. Meanwhile, market jitters are likely to hamper the Franc as German Chancellor Angela Merkel visits Greece today for the first time since the debt crisis began.

Last Friday, the US Labor Department reported that the Unemployment Rate fell from 8.1 percent to 7.8 percent last month, its lowest level since January 2009, even as more Americans looked for jobs. Although only 114,000 positions were added in September, a combined 86,000 more jobs were created in July and August than previously estimated, indicating a more robust picture of the jobs sector. Average hourly earnings also exceeded forecasts and inclined by 0.3 percent last month to register its largest increase since June. Taken together, economists deem that the report suggested a healthier labor market as the employment-to-population ratio increased to its highest level since May 2010.

Such advances in the jobs market is likely one reason American consumer confidence has been steadily improving. The IBD/TIPP Economic Confidence report is estimated to increase from 51.8 points to 52.3 points in October, potentially its highest reading since September 2009. Apart from brighter job prospects, the continuing housing recovery and rising stock prices likely shored up sentiment among consumers. Household purchases account for approximately 70 percent of economic activity, and improved sentiment likely suggests that the US economy could recover in the second half of the year after expanding by only 1.3 percent in the June quarter.

Meanwhile, all eyes will likely be on Greece today as German Chancellor Angela Merkel, seen as a hate figure to many Greeks amid the crisis, is set to visit the Mediterranean nation in what observers call a show of solidarity and recognition. Merkel is expected to experience hostile reception from a people worn down by years of recession and austerity. Although Greek police have banned protests in most of central Athens, some teachers, doctors and other public employees vowed to stop work today. Trade unions and opposition political parties also expressed that they would march in the streets, risking confrontation with the police.

Athens is currently in talks with its troika of lenders on yet more austerity needed to secure the next tranche of its loan package, much to the disgust of many Greeks. Without the 31.5 Billion-Euro tranche, Greece says it will go bankrupt by the end of November. Although the visit likely highlights Merkel’s resolve to keep Greece in the Euro Zone, the ensuing turmoil her visit would bring is seen to keep the Euro and consequently, the Swissie under pressure. Considering these, a long position favoring the US dollar is advised for the USD/CHF today.

For more news, analysis, technical charts and candlestick analysis, visit AlgosysFx

Source: ForexYard

Higher-yielding assets took moderate losses to start off the week yesterday, as investor fears regarding the pace of the global economic recovery outweighed positive US employment data from last Friday. Specifically, the Spanish debt crisis and concerns about an economic slowdown in China led to a shift back to safe-haven currencies. Today, a lack of significant news out of the US means that traders will want to continue monitoring announcements out of the euro-zone to determine the level of risk appetite in the marketplace. Any positive news could help the euro recover some of yesterday’s losses.

Economic News

USD – Risk Aversion Boosts USD

The US dollar recovered some of its losses from last week during yesterday’s trading session, as investors shifted their funds to safe-haven currencies amid fears regarding the global economic recovery. The USD/CHF was able to gain more than 60 pips over the course of the day before peaking at 0.9356 during mid-day trading. By the end of the European session, the pair was at 0.9335. The GBP/USD fell more than 80 pips throughout the day, eventually reaching as low as 1.6020.

Turning to today, a lack of significant US news means that traders will want to pay attention to announcements out of the euro-zone to gauge risk appetite in the marketplace. Any signs that Spain is getting ready to request a bailout from the ECB could lead to risk taking, which may weigh down on the greenback. Later in the week, traders will not want to forget to pay attention to the US trade balance, unemployment claims, PPI and Prelim UoM Consumer Sentiment figures, as they all have the potential to create serious volatility for the dollar.

EUR – Spanish News Continues to Drive Euro Movements

Fears regarding Spanish and Greek debt, combined with a slowing down of China’s economy caused the euro to take losses during trading yesterday. The EUR/USD tumbled close to 100 pips during overnight and morning trading, eventually reaching as low as 1.2936. A slight upward correction later in the day brought the common currency to 1.2970. Against the Japanese yen, the euro fell more than 90 pips during the first part of the day to trade as low as 101.11 before bouncing back to the 101.30 level.

Today, euro-zone news is likely going to continue being the driving force behind movements in the marketplace. In particular, any announcements regarding the euro-zone bailout fund and a possible future Spanish bailout request may cause investors to shift their funds to riskier assets. At the same time, if it appears that Spain will continue delaying its request for a euro-zone bailout to help recapitalize its banks, the euro could extend its bearish run against the dollar and yen.

Gold – Gold Continues to Fall

The price of gold extended its downward trend throughout the day yesterday, as a strengthened US dollar resulted in reduced demand for the precious metal. Prices fell by close to $14 when markets opened for the week, eventually reaching as low as $1766.34, before bouncing back to the $1775 level toward the end of European trading.

Today, analysts are warning that the price of gold could continue falling if fears regarding the euro-zone and Chinese economies continue to boost the safe-haven dollar. A strong dollar often leads to reduced prices for gold, as it becomes more expensive for international buyers. Any negative announcements out of Europe today may result in gold taking further losses.

Crude Oil – Euro-Zone Fears Weigh Down on Oil

Euro-zone growth fears combined with slightly reduced tensions between Iran and western nations caused the price of oil to extend its recent downward trend when markets opened for the week. The commodity fell close to $1.50 during the Asian session to trade as low as $88.19. That being said, crude was able to recover some of its losses during the afternoon session, and eventually bounced back to the $89.60 level.

Turning to today, crude traders will want to continue monitoring how euro-zone news is affecting the US dollar. The greenback saw steady gains when markets opened for the week, which in turn made oil more expensive for international buyers. Should the dollar continue its bullish trend today, oil could once again start moving downward.

Technical News

EUR/USD

The weekly chart’s Slow Stochastic appears close to forming a bearish cross, signaling the possibility of a downward correction in the coming days. In addition, the Williams Percent Range on the same chart has crossed into overbought territory. This may be a good time for traders to open short positions.

GBP/USD

While the Williams Percent Range on the daily chart has dropped into oversold territory, indicating that an upward correction could occur shortly, most other long term technical indicators show this pair range trading. Traders may want to take a wait and see approach for this pair, as a clearer picture is likely to present itself in the near future.

USD/JPY

Most long term technical indicators, including the daily chart’s Relative Strength Index which remains steady at the 60 level, show this pair range trading. With a defined trend difficult to determine at this time, traders may want to take a wait and see approach for this pair.

USD/CHF

The daily chart’s Relative Strength Index is approaching oversold territory, while the same chart’s MACD/OsMA appears close to forming a bullish cross. Traders will want to keep an eye on both of these indicators, as they may point to a possible upward correction in the near future.

The Wild Card

AUD/JPY

A bullish cross on the daily chart’s Slow Stochastic indicates that this pair could see an upward correction in the near future. Furthermore, the Williams Percent Range and Relative Strength Index on the same chart are close to the oversold zone. This may be a good time for forex traders to open long positions for this pair.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By TraderVox.com

Tradervox.com (Dublin) – The US dollar has continued to decline against major currencies. However, last week’s Non-Farm Payrolls and renewed hope in the euro zone have weakened the attractiveness of safe haven currencies like the dollar and the yen. The dollar is gaining on the yen as speculators choose the greenback over the Japanese currency.  Here is a brief outlook and analysis of major pairs.

EUR/USD: the pair opened the month with a climb but could not break above the resistance line at 1.2960. As the week progressed, the pair broke above the important line of 1.30. This week, the pair has started low dropping to 1.2977 at the start of trading in London. The outlook for the week remains bearish as uncertainty still remains in Europe. However, the pair will test the 1.30 line and probably break above as Angela Merkel, the German Chancellor, is expected to show support for the continued participation of Greece in the monetary union.

GBP/USD: the pair traded within range last week, when it opened that week at 1.6122. It dropped slightly to 1.6058 before rebounding to 1.6217.  It retreated to close the week at 1.6132. The outlook for this week remains neutral as the market turn focus to Europe. We expect the pair to trade within range this week without major breaks of resistance of support levels.

USD/JPY: The pair sprout above downtrend as it reversed its course to move upward. The pair battled with the 78 line as the week started and finally emerged above it to test the resistance line at 78.80. The cross retreated to close the week at 78.66. With Tokyo and US market closed for public holiday today, the pair dropped a bit at the start of the London session to 78.32. However, with cross trading above downtrend, the outlook for the week remains bullish.

USD/CHF: the pair started the week with a move up above the 0.9434 it closed the previous week to touch a high of 0.9438. The cross the dropped to 0.9275 but closed the week above the important level of 0.93 at 0.9391. This week’s outlook is bullish but it is expected to trade within range.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox

By TraderVox.com

Tradervox.com (Dublin) – There are some signals of success in the euro region as optimism starts to creep in. However, the market is still concerned about the situation in Spain as Spanish Prime Minister continues to refrain from asking for help from the ECB. The US data is encouraging giving the dollar advantage over the yen as a safe haven currency. Here is a brief overview of eight major events this week that will shape the market.

Tuesday 9

The main event on this day will be the speech by the ECB President Mario Draghi. After clarifying that the Outright Monetary Transaction is ready to buy bond from governments in the region, Mario Draghi is expected to add more pressure on Spain to request for bailout and sign the contract.

Thursday 11

The other major reports will be on Thursday, with five reports expected on the day. The first one will be the Australian employment data which will be released at 0030hrs GMT. Unemployment in August dropped to 5.1 percent against the market expectation of an rise of 0.1 percent. The data from the labor department will spark speculation about the RBA move on its monetary policy. The market is expecting a 0.2 percent rise in unemployment. On the same day, the G7 meeting will commence with the exchange rate one of the major topics to be discussed.

The third major event of the day will be the US Trade Balance report which will be released at 1230hrs GMT. The trade deficit expanded in July to $42 billion which was lower than the market expectation of $44.2 billion. The market is expecting a further expansion to 43.9 billion this time round. At the same time, the US Unemployment Claims data will be released. The figures were less than projected last week, coming in at 367k against an expectation of 371k. This time, the market is expecting a drop to 366k. Lastly, the US Federal Budget Balance at 1800hrs will be the final major report for the day. The Federal budget is expected to decline to $4 billion.

Friday 12

Two major reports on this day are expected –the US PPI and the US UoM Consumer Sentiment. At 1230hrs GMT, the US PPI report will be published and the market is expecting a rise if 0.8 percent. The US UoM Consumer Sentiment will be released on Friday at 1355 where a decline from 78.3 reached last time is expected to 77.9.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox

Source: ForexYard

After making slight gains during Asian trading against the US dollar, the euro once again turned bearish during the early morning session today as concerns regarding Spanish debt continue to weigh down on the common currency. The EUR/USD advanced more than 20 pips to reach as high as 1.2989 before falling to its current level of 1.2940. Gold also advanced slightly last night, gaining more than $5 to trade as high as $1779.45 an ounce, before dropping back to its current level of $1774.

Main News for Today

UK Manufacturing Production- 08:30 GMT
• The manufacturing indicator is forecasted to come in at -0.6%, well below last month’s 3.2%
• Any worse than expected news could result in the British pound extending its current bearish trend against the US dollar and Japanese yen

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

FUNDAMENTAL OVERVIEW

INTERESTING PAIRS OF THE WEEK

USD/JPY

EUR/AUD

EUR/USD