Market news
17.02.2011, 09:11

Asian session:

 

The dollar traded near a one-week low against the euro before reports forecast to show European consumer confidence rose and an index of U.S. leading indicators gained, adding to signs the global recovery is strengthening.
The yen was close to two-week low versus the euro as Asian stocks extended a rally in shares around the world and commodity prices gained, reducing demand for safer assets. Australia’s dollar traded about 0.2 percent below a nine-month high against the yen as investors bet the South-Pacific nation will keep its yield advantage over Japan. South Korea’s won rose as overseas investors boosted their stock holdings.
The dollar weakened yesterday as minutes of the U.S. Federal Reserve’s January meeting showed policy makers took a more optimistic view of the U.S. economy, while maintaining their dissatisfaction with job growth as they pressed forward with monetary stimulus.
Losses in the yen were tempered on speculation civil unrest will keep spreading in the Middle East, boosting demand for the relative safety of Japan’s currency.

 

EUR/USD: the pair shown high in the field of $1.3600 then decreased.
GBP/USD: the pair bargained within the limits of $1.6080-$ 1.6120. 
USD/JPY: the pair bargained within the limits of Y83.50-Y83.70.

 

At 1100GMT UK CBI Industrial Trends survey is released.
A busy US calendar starts at 1330GMT, with the release of 12 Feb week Jobless Clains and the January CPI data. Initial jobless claims are expected to rise 22,000 to 405,000 in the February 12 employment survey week after falling in the previous two weeks. Claims were at a level of 403,000 in the January 15 employment survey week.  Consumer prices are 
expected to rise 0.3% in January. Core CPI is forecast to rise only 0.1% as pricing power remains very weak, keeping the annual rate soft.
At 1500GMT, the February Philly Fed survey is released, along with the January leading indicator data. The Philadelphia Fed index is expected to rise to a reading of 21.0 in February after falling slightly in January. The index of leading indicators is forecast to rise only 0.1% in January. Positive contributions are expected from slower deliveries, higher stock prices, a steeper yield curve, and rising expectations. These should be offset by the negative impact of higher jobless claims and the shorter manufacturing workweek. Also at 1500GMT,  Federal Reserve Chair Ben Bernanke is to testify before the Senate Banking Committee on Dodd-Frank reforms, with other regulators. 




 

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