Week's News ( 16 Apr - 20 Apr )

binary — Tue, 10 Apr 2012 09:44:26 +0000

Recent economic situation in U.S has fretted investors about the future of economy and there is a wait and see trend prevailing the markets. Investors are reluctant to take any bold steps to stimulate recovery process in US economy that would certainly take away the worlds from perils of hunger and strife in global economies. However the weekly job data on Friday of this week would lead the market rally in next week.
The easing of sanctions on Iran would also positively impact markets in Europe, as a tense situation in the region due to recent conflict on Tehran’s nuclear program. A meeting has been scheduled on 14 April in Istanbul to discuss the situation.
China is replacing US presence in Brazil and more involvement in economy could be judged by its presence in different segments of Brazilian economy. Its developing power resources are an alluring factor for economic giants. However, Brazilian government now wants to strengthen its ties with US government. Economic growth is very effective in Brazil and wants to get help from US to enhance its skilled labor no.
In Scotland labor market is performing well and a steady growth in economy is also being experienced. New business inflow is positively affecting the overall scenario.
The US, Japan and European Union has filed a case at WTO against Chinese restriction over its rare earth bodies. China is producing 95% of it and any move by Chinese government could severely affect global market.
Inflation rate in China is more than expected and consumer prices are also going higher due to higher oil prices in global energy resources market.

EUR/USD

Next week is also going to have a positive trend for US dollar, as there are some sure earnings expected this week, positively influencing Forex market. Euro is also expected to remain in bullish activity. We are in favor of bullish activity for this pair in next wee.

USD/JPY

U.S dollar is expected to perform well in Forex markets but the poor economic activity in Japanese economy has given a negative trend to Japanese Yen. We favor a cautious mode of trade for this pair.

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Week's market (9 Apr - 13 Apr )

binary — Tue, 10 Apr 2012 08:55:13 +0000

The unexpected job data in U.S has negatively influenced world markets and markets have gone in negative trend in U.S, however Europe is unaffected by this job data for March. Asian markets are also moving in the negative trend in response to Chinese developments. American investors are waiting for the out break of expected earning season but negative performance in job market has severely changed the trading scenario in financial markets.
U.S payrolls has risen less than expected heights and further more a stress is in the market with realization that 70% of jobs were created in low wage categories. This fact has placed a question mark on the possible role U.S economy growth on global economies. Europe is struggling hard to get out of its financial problems but there is not a strong indicator of revival. Japan has not escaped from its stagnation, emerging markets cannot perform any leading role. The only strong position remains for China in global economies to support the world, from getting back to recovery road.
In Germany, retail sales have unexpectedly fallen 1.1% in February. Its economy shrank 0.2% in the last quarter of 2011. However growth is expected during this year and the unemployment rate has fallen to 6.7% in March. Business confidence has also risen in the German economy and in February sales were also up to 1.7%.
In France public sector debt deficit has shrunk as compared to the last year and French officials are working out plans to eliminate this deficit until 2016. French debt has expanded alarmingly in 2011, now it is 86% of the GDP.
Spain is going to cut 27 bn Euros from its budget to meet the austerity measures. There is a prediction that European economies in 2012 would shrink.

EUR/USD

U.S dollar is performing well in Forex markets, a strong earning season is being expected that has influenced positively. The Euro is also going through a transitional period, so we are expecting a bullish trend for this in Forex market.

USD/JPY

U.S dollar is performing well in Forex markets but the poor economic activity in Japanese economy has given a negative trend to Japanese Yen. We favor a slightly bearish activity for this pair in Forex market.

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Week's market (9 Apr - 13 Apr )

binary — Mon, 02 Apr 2012 07:38:53 +0000

The global economic outlook for next week remains in the bullish boundaries, unless any major event takes place to rally the markets towards a bearish zone, as there is confidence in the markets and investors are now taking their part to help the capitalism to maintain its sustainability in the global economy. U.S government has been successful to keep its economy away from stagnation, just like Japan. The investors and investment strategists are now optimistic about the future of the American economy. There are still problems in European countries but overall European economic performance has now faded the shadows of EU collapse.
After sanctions on Iran, Obama has approved the sanctions on the Iranian oil buyers, to further pressurize Iranian government to persuade its terms, it would make possible for U.S government to take action against banks that are still dealing with the Iranian government.
In Germany, retail sales have unexpectedly fallen 1.1% in February. Its economy shrank 0.2% in the last quarter of 2011. However growth is expected during this year and the unemployment rate has fallen to 6.7% in March. Business confidence has also risen in the German economy and in February sales were also up to 1.7%.
In France public sector debt deficit has shrunk as compared to the last year and French officials are working out plans to eliminate this deficit until 2016. French debt has expanded alarmingly in 2011, now it is 86% of the GDP.
Spain is going to cut 27 bn Euros from its budget to meet the austerity measures. There is a prediction that European economies in 2012 would shrink.

EUR/USD

U.S dollar is performing well in Forex markets , positive data about job sector would also influence positively on the market. The Euro is also going through a transitional period, so we may expect a bullish activity in the fores market for this pair in next week.

USD/JPY

There is a strong positive economic activity is in the Forex market for this pair. While, on the other hand in Japan, a fundamental change in Japanese trade balance is being expected in the running year. So, we are expecting a bullish activity for this pair in next week.

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Week's Market (2 Apr - 6 Apr)

binary — Mon, 02 Apr 2012 07:20:04 +0000

Financial markets are in a positive mood in global scenario. U.S markets are performing well as the economy is going on a recovery road. European markets are also in positive zone, as positive moves in economies have sabotaged recently rising issue of Spain. However Asian markets are facing a bearish trend due to some Asian issues.
In U.S The Labor Department report is also due on April 6. The U.S job sector has performed significantly during the month of March, the employment has increased by 205,000, as the private sector is now more optimistic about the economic future of the country. It has also boosted consumer confidence that is further strengthening the economy.
In Europe, governments have urged on the creation of a bigger global financial emergency fund to cope with any financial emergency arising in European and other contributing countries. They have decided to contribute 500
The Spanish government is also facing a recession in their economy and a contraction of 1.7% has also been predicted. The public deficit is also soaring up to 68% of national GDP and borrowing cost for Spain has also been rising in basis points.

EUR/USD

The housing sector is going through a transitional period but unemployment is decreasing continuously to sustain their position in the market. The European economies are also in good position for this week we are expecting a bullish activity in the market for this currency pair in this week.

USD/JPY

The U.S dollar is going to stabilize its position in the Forex market, as there is a strong positive economic activity being awaited in the market. While, on the other hand in Japan, a fundamental change in Japanese trade balance is being expected in the running year. So, we are expecting a bullish activity for this pair in next week.

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Week's market ( 2 April - 6 April)

binary — Wed, 28 Mar 2012 07:28:20 +0000

The release of bailout package for Greece has removed the stressful situation from EU economies but the bad news can again in the headline for European countries, as there is a problem of the budget deficit in more European countries. The Spanish government is also facing a recession in their economy and a contraction of 1.7% has also been predicted. The public deficit is also soaring up to 68% of national GDP and borrowing cost for Spain has also been rising in basis points. The day by day worsening condition of the Spanish economy could result in a new catastrophe for European economies.
US housing sector is facing an unexpected situation in new home sector and a decline of 1.6% has been filed during last month. But due to continuous positive activity in this market during last some months, a positive move after correction is also being expected in the next month.
For the last month in the UK, there has been a decline of 0.8% in the retail sales volume, representing the negative prevailing situation in the economy. It is representing a squeeze on consumers for the last month, and the unemployment rate has also been decreased .

EUR/USD

The housing sector is going through a transitional period but unemployment is decreasing continuously to sustain their position in the market. The European economies are also in good position for this week but due to the present financial situation of Spain, we are expecting a bearish activity in the market for this currency pair in the next week.

USD/JPY

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Week's market (26 Mar - 30 Mar)

binary — Wed, 28 Mar 2012 07:24:01 +0000

The Financial scenario in global markets is representing a mix of positive and negative trends. The U.S markets DOW, NASDAQ, and S&P 500 index are in positive trade sessions and continuity is predicted to remain in the market during this week. The European markets DAX and FTSE 100 are in the positive zone but the STOXX 50 is experiencing a negative trend due to recent financial developments. While Asian markets are following a negative trend during this week, as there is prevailing a negative trend in major Asian financial markets.

U.S durable good manufacturers have received continuous growing orders for their products since last couple of weeks. An increase of 3% was noted for long lasting goods in the last month and the continuity is expected to remain there. Personal spending are also rising and 0.6% rise has been seen during the last couple of weeks. Job growth is still a stimulating factor for these positive indicators.
The Bank of England has warned to raise capital to cope with unpredictable global economic future, as the global financial system is not in a stable condition, so take your steps, as soon as it is feasible and possible.
In Asia Chinese factory activity has been shrinking for the last couple of months, which has created an alarm in the financial circles of Asia. Slowing down Chinese economy could serve the American economy, which is in recovering phase.

EURO/USD

The USD is going to stabilize its current position during this week., while EURO is also expected to perform well as bailout package is being settled, so, we are bearish about this pair in the Forex market.

USD/JPY

The US dollar is having a strong position in Forex market due to the start of a correction phase in Forex markets. JPY would be also in a good situation during this week, as a fundamental change in Japanese trade balance is being expected in the running year. So, we are neutral for this pair in this week.

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Week's Market ( 26 Mar - 30 Mar )

binary — Mon, 19 Mar 2012 13:12:02 +0000

European markets are at the moment in positive zone and they are expected to carry on this session even until next week, the resolution of the Greece bailout issue has injected positive trend in European markets. However in Asian markets mixed trend is prevailing in economic scenario and any break out of an event or news would definitely carry the rally into its direction.
In USA job sector is continuously performing well and it is giving rise to consumer earnings plus spending. The housing sector is fully thrilled by lower interest rates and consumer spending, showing a very positive market trend. These factors are collectively playing a positive inter dependent role to take away economy from stagnation and pushing it to a road of auto recover trend.

The U.K’s government has indicated to cut off 50% of the tax that was imposed on businessman and wealthy people on more than $235,500. The basic income tax threshold is being worked out to rise up to 50%.
The oil and gas discovery in Falkland has made this place controversial islands. U.K government and Argentina official have proclaimed that this region comes under their jurisdiction.
In Spain housing sector is going through a negative trend and in last year at a rate of 11.2% housing prices fell down. There has been same situation for used housing sector and it is experiencing a 9.6% downfall in the last quarter of the year. The unemployment rate is 22.8% in the country, it is creating a very negative economic scenario.
EURO/USD

USD is going to stabilize its current position in the next week., while EURO is also expected to perform well as bailout package is being settled, so, we are neutral about this pair in the forex market.

USD/JPY

The negative trend of US dollar in forex market is due to the start of correction phase in forex markets. JPY would be also in a good situation during this week and we are slightly bullish for this pair in next week.

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Week's Market (19Mar - 23 Mar)

binary — Mon, 19 Mar 2012 13:02:34 +0000

IMF has rubber stamped the bailout package for Greece and a contribution of 28 billion in the European proposed package, clearing the way for Greece to escape from bankruptcy. This move has significantly released the tension from European Union economies, gaining them time to get their economic issues solved. However this year would be a tough time for Greece, taking hard decisions and maintaining the provisions of the package fulfilled. There is another major achievement of collecting $1.3bn `in back taxes, however it is a fraction of total possible revenue that can be generated through this policy.
U.S economy is now in easing run, however production and consumer price are rising simultaneously. In February, there has been 0.4% rise in Consumer prices, the major factor behind this phenomenon was the petrol price hike due to recent tension with Iran.
U.K’s labor unions have severely condemned the proposal of reducing public sector pay in some regions, according to treasury officials in some regions of U.K salaries of the government sector are almost 18% high than the salaries of private sector in the same region.
Australian GDP growth was 0.4%, less than expected 0.8%, it is resulted due to the less business spending. The Australian economy is largely dependant on the mining sector for its positive growth. However growth is expected in following months.

EURO/USD
USD is in a correction stage after touching its hikes during last couple of days and going to retain its position in next few days, while EURO is also expected to perform well as bailout package is being settled, so, we are neutral about this pair in the forex market.

USD/JPY
The negative trend of US dollar in forex market is due to the start of correction phase in forex markets. JPY would be also in a good situation during this week and we are neutral for this pair in this week.

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Next Week's Market (19 Mar - 23 Mar)

binary — Mon, 12 Mar 2012 09:27:10 +0000

Global financial markets are following a positive worldwide trend. US, Asia, and European markets are looking forward for a better economic situation in global scenario. The decisions over Greek bailout package release have eased the tension in the markets about the future of Europe, which has left a very strong rally in the markets.

The recovery process in US economy continues to grow in a modest way to take the economy above recession affects. The US growth rate is at 3% more than expected due to the massive consumer spending on durable goods. Economists are taking this development as an indicator for a strong positive growth during this year. The service sector is also expending at a steady rate. All these things have contributed to 5% tumble in Gold price.

Australian GDP growth was 0.4%, less than expected 0.8%, it is resulted due to the less business spending. The Australian economy is largely dependant on the mining sector for its positive growth. However growth is expected in following months.

Brazil has become the sixth largest economy of the world by overtaking UK economy. According to the officials, the Brazilian economy is worth 2.5tn.

Sarkozy has shown a strict attitude to migrants in France and Europe, he has threatened to get out of Schengen accord. He wants to make sure that illegal immigrants must be stopped to act on a borderless Europe. Sarkozy is also trying to impose buy European act, to restrict European countries to buy European manufactured goods.

EURO/USD

USD is in a stable position and going to retain its position in next few days, while EURO is also expected to perform well as bailout package is being settled, so, we are slightly bullish about this in the forex market.

USD/JPY

The strong position of US dollar in forex market is due to positive economic indicators. JPY would be also in a good situation during the next week and we predict for a slightly bullish activity in this pair for next week.

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This Week's News (12 Mar - 16 Mar )

binary — Mon, 12 Mar 2012 08:59:11 +0000

Greece has restructured its debt, the largest restructuring in the history, with banks and private lenders to bear up to 74% loses. The Greek government has issued bonds, which have less value and more interest, to successfully meet the creditors’ requirements.
The Eorogroup is meeting on Monday to give final approval of Greece bailout package. IMF is going to take its decision on 15 March about their contribution in the bailout package. Furthermore, Greece is also ready to implement austerity measures, fulfilling EU and IMF demands.

While Moody’s has declared this debt swap as a default for Greece and its ratings are now going to be decided in the next few days after some results of Greek’s debt swap.
U.S economy is lumbering out of recessional period and labor market is leading the rally towards recovery to take U.S economy up to a strong position. In February 227,000 jobs have been created and more people are now streaming in labor market to get a job.
Tension between UK and Iran and demand pull has buoyed oil prices to their record level. Petrol has touched 137.44p liter and diesel is selling at 144.7. The Bank of England has decided to keep the interest rate 0.5 unchanged, it has been on the same level for successive three years and next year it is also expected to remain at the same level.

Inflation rate in China has fallen to 3.5% in February, depicting a sluggish economic condition prevailing in the investment market. The Chinese government wants to stimulate the economy to retain their global economic status.

EURO/USD

The USD is in a stronger position than the EURO but there is positive development s taking place in Europe. It would definitely strengthen the European currency in forex market but we can expect a slightly negative trend as the outcome has to play very important role in deciding the future of EURO. So we are inclined to a bearish trend about this currency pair during the starting days of this week.

USD/JPY

Japan is in a static condition but not in a recession, so the Yen is at a stable position in forex markets. Euro is also retaining its positive position in the market and Good news about EU crisis in the financial markets is also playing its part in the market. We predict a bullish activity for this pair in the market during this week.

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