 |
|
" Markets tense after North and South Korean incident .."
"Tension in the region has let to knee-jerk reaction in currencies and stocks... "
World
stocks fell on Tuesday while the dollar rose across the board after
tensions in the Korean peninsula prompted investors to trim risky
assets, and the euro stayed under pressure as Ireland’s debt crisis
raged on. North Korea fired dozens of artillery shells at a South
Korean island, killing two soldiers and setting houses ablaze in one of
the heaviest attacks on its neighbour since the Korean War ended in
1953. The incident soured sentiment in global financial markets
already rattled by concerns that a rescue package for Ireland may not
stop problems from spreading to other indebted euro zone countries. In Korea, stock futures and the won tumbled in a late selloff and more downside was expected on Wednesday. “Tension
in the region has led to a knee-jerk reaction in currencies and
stocks,” said Paul Robson, currency strategist at RBS Global Banking. “Focus
will shift back to the euro and we believe euro zone peripheral issues
have some more time to run. Investors will go after Portugal and then
Spain after Ireland is done.” The MSCI world equity index and the
Thomson Reuters global stock index both fell 0.6%. The
FTSEurofirst 300 index lost more than half a per cent while U.S. stock
futures fell around 0.7%, pointing to a weaker open on Wall Street. In
Korea, December index futures fell 2.4% while the dollar rose more than
4% against the won in offshore trade before trimming gains. Emerging stocks dropped 1.7%. U.S. crude oil fell 0.5 % to $81.27 a barrel. IRISH JITTERS Bund futures attracted in safe-haven demand to rise 40 ticks. Irish
and other peripheral government bond yield spreads widened and the cost
of insuring higher-yielding eurozone sovereign debt against default
rose as markets fretted over whether Ireland’s embattled government
would be able to pass a budget. The Irish Prime Minister on Monday
defied pressure to quit ahead of the unveiling of an austerity plan
later this week and a 2011 budget on Dec. 7, but said he would then call
an early election. “Given that this political uncertainty puts at
risk the four-year budget plan, this is definitely not helping the
market to move on and look forward,” said Michael Leister, strategist at
WestLB.
|
"USD- GDP & Personal Consumption rose in 3Q.."
"CAD- CPI rises for the month of October.."
|
The U.S. economy grew at a 2.5
percent annual rate in the third quarter, more than previously
calculated, as companies increased shipments abroad and Americans
boosted their spending.
The revised increase in gross domestic product compares with
a 2 percent estimate issued last month and a 1.7 percent rise in
the second quarter, figures from the Commerce Department showed
today in Washington. Corporate profits grew last quarter at a
slower pace and an increase in employee wages in the prior three
months was almost twice as much as initially reported.
While gains in earnings are giving companies the wherewithal
to hire, the pace of growth is failing to bring down a jobless rate hovering near 10 percent. Unemployment along with a cooling
of inflation as retailers such as Wal-Mart Stores Inc. reduce
prices underscore the Federal Reserve’s decision to inject more
money into the economy.
“We’re going to see moderate growth, positive but not
really strong enough to push the unemployment rate down,” Scott
Brown, chief economist at Raymond James & Associates Inc. in St.
Petersburg, Florida, said before the report. “There’s still a
number of headwinds we’re facing.”
Today’s report showed consumer spending, which accounts for
about 70 percent of the economy, increased at a 2.8 percent
annual rate in the third quarter, the fastest since the final
three months of 2006.
The gain compares with a previously reported 2.6 percent
rise, and 2.2 percent in the second quarter. The revision
reflected an increase in purchases of used automobiles, the
Commerce Department said. Consumer prices were up 2.4% in October from a year earlier, Statistics Canada said Tuesday. That
marks the highest inflation rate since October 2008. It surpassed
economists’ expectations for 2.2% inflation last month after September’s
price gains of 1.9%. Statistics Canada said gasoline prices were
8.8% more in October compared with a year earlier. Excluding gasoline,
inflation would have been 2.1% last month. Energy prices, overall,
were up 9.1% last month. This also factored in a rise of 8.1% in
electricity prices and 10.6% in natural gas prices. Core
inflation for October, which strips out volatile items such as energy
and certain foods, was 1.8%. Economists expected 1.5%, unchanged from
September.
Want to manage currency risk and increase revenue? Learn more about
Risk Management
|
| Currency Commentary
EUR, USD, CAD, GBP & JPY
|
EUR: The Euro, weighed under debt contagion fears among Eurozone countries
and risk aversion triggered by war echoes in the Korean peninsula,
remains weak, rejected at 1.3600 on its second attempt, and turned
lower, approaching 1.3525 day low.USD: Strong U.S. data could not weaken the USD/CAD, continual Eurozone problems and geopolitical issues have markets strengthening the USD. Tomorrow's Durable goods, Personal Income and Initial Jobless claims data will cause further movements. The question is...will the bullish trend continue and prop the pair into the higher 1.0300 levels...?
CAD: CPI numbers earlier gave strength to the CAD, the USD/CAD had dipped to the mid 1.0100 levels. Since then, commodities has fallen andwe have seen a reversal on the pair...will this trend continue once North American equity markets open?
Overall a good day for buyers...and sellers of the USD.
Expected range for the USD/CAD ..mid 1.0100 to possible higher 1.0200 levels.
GBP: The Pound's decline from 1.6085 high yesterday has found support at 1.5900
area yesterday, and the pair, capped on the upside at 1.5965, has gone
through nervous consolidation between 1.5900 and 1.5950 during European
session.
JPY: Dollar rally on risk aversion after news of shelling between North and
South Korea, has been capped at 83.85, and, unable to confirm breach of
83.80 resistance area, the pair has giving away gains, and eased to
83.30 area.
Want to lock in an exchange rate for the future? Learn more about
Forward Contracts
Follow our "tweets" and get up-to-date currency movements daily on Twitter @ http://twitter.com/taheriexchange
|
| Technical Ranges
CAD, USD, EUR, JPY & GBP
|
 USD/CAD
Support: 1.0140 Resistance: 1.0270
CAD/JPY
Support: 81.11 Resistance: 82.42
EUR/CAD
Support: 1.3656 Resistance: 1.3874
EUR/USD
Support: 1.3353 Resistance: 1.3568
GBP/USD
Support: 1.5837 Resistance: 1.5970
Want us to monitor the market 24 hours for your target rate? Learn more about
Overnight Orders
|
|
This email contains confidential information, is intended only for the named recipient and is privileged. Distributing or copying this email without express consent of Taheri Exchange (TE) is prohibited. If you are not the named recipient, notify us immediately and permanently destroy this email and all copies. Email is not private, secure, or reliable. TE is not liable for any errors or omissions in the content or transmission of this email. The information, opinions, estimates, projections and other materials contained herein are provided as of the date hereof and are subject to change without notice. Some of the information, opinions, estimates, projections and other materials contained herein have been obtained from numerous sources, and, notwithstanding TE. TE makes efforts to ensure that the contents thereof have been compiled from sources believed to be reliable and to contain information and opinions which are accurate. TE has not independently verified and makes no representation or warranty, express or implied, in respect thereof and takes no responsibility for any errors and omissions which may be contained therein. TE shall not be liable for any loss arising from any use of or reliance on the information, opinions, estimates, projections and other materials contained herein whether relied upon by the recipient or user or any other third party (including, without limitation, any customer of the recipient or user). The information, opinions, estimates, projections and other materials contained herein shall not be considered as investment advice or as a recommendation to enter into any transaction. TE, its affiliates, and/or their respective shareholders, directors, officers and/or employees may from time to time have long or short positions in any products.
unscribe/subscribe to: rick@taheriexchange.com
5775 Yonge Street
Toronto, ON Canada
M2M 4J1
T: 416-488-8822
F: 416-488-4022
T: 1-888-712-999
|
|
|
| Main USD/CAD data today: |
|
1. USD- GDP, Personal Consumption & Existing Home Sales data.
CAD - CPI and Retail Sales data.
|
|
| Customized Service. |
| Taheri understands your business, and can tailor foreign exchange services that satisfy your unique needs |
|
|
