Daily Market Review 11 of December

OVERVIEW


According to an opinion of the head of the Bank of England Mervyn King the group of the G20 countries has to activate their efforts in order to resolve global imbalances. Otherwise there will be more countries which will start to use rates as a part of their monetary and credit policy. From the moment of reaching agreement about stimulating measures in 2009 the G20 only made a step back in King’s Opinion. He is concerned that in 2013 we’ll see more actions on the currencies’ market as an alternative to the monetary policy measures. He made this statement at recent gathering of economic club in New York. As for the situation with financial imbalance in the USA King expressed confidence that American legislators will succeed in reaching an agreement. Mervyn King will leave the post of the head of the Bank of England in July 2013. His position will be taken by Mark Carney the head of the Bank of Canada.


CURRENCIES


EUR/USD


Yesterday the Euro appreciated against the US Dollar from 1.2885 to 1.2946 with further dip to 1.2936. There is no much interest for risky assets on the market. Analysts worldwide continue to assume that the Euro is able to get above 1.3100 and stay there. But the time Euro will be able to stay there is limited. The boundary above remains at 1.3130.


GBP/USD


The Pound grew against the US Dollar from 1.6013 to1.6095. The background of the Pound trading could’ be called positive. Analysts mark that in order to weaken the pressure of sellers the pair needs to get back above 1.6060. Otherwise the probability of testing of the level of 1.600 is quite high. The break below latter level will most probably make the position of buyers worse and will open the way to decline to the levels of. 1.5980, 1.5960 and perhaps even 1.5920.


USD/JPY


Yesterday the US Dollar depreciated against the Yen from 82.63 to 82.11. The interest for accumulating short positions in the Yen remains meanwhile. Analysts assume that in light of recent signals from the officials it is quite possible that after election of December 16 the government might aim at unlimited monetary stimulation of economy. In the short and midterm the picture of the Yen looks bearish.


MARKET DATA


1:30pm CAD Trade Balance

1:30pm USD Trade Balance

3:00pm USD IBD/TIPP Economic Optimism

3:00pm USD Wholesale Inventories m/m

11:30pm AUD Westpac Consumer Sentiment

11:50pm JPY Core Machinery Orders m/m

11:50pm JPY Tertiary Industry Activity m/m