Appreciation Of The Canadian Dollar

Yen at 2-month highs in the wake of disappointing BOJ and sluggish US GDP Economic Data (AU) AUSTRALIA MAR PRIVATE SECTOR CREDIT M/M: 0.4% V 0.3%E; Y/Y: 3.4% V 3.2%E (AU) AUSTRALIA MAR HIA NEW HOME SALES M/M: -9.4% V +3.0% PRIOR (multi-year low) (AU) AUSTRALIA APR TD SECURITIES INFLATION M/M: 0.3% V 0.5% PRIOR; Y/Y: 1.9% V 1.8% PRIOR (NZ) NEW ZEALAND MAR BUILDING PERMITS M/M: 19.8% V 6.0%E (NZ) NEW ZEALAND APR NBNZ ACTIVITY OUTLOOK: 36.1 V 38.8 PRIOR; BUSINESS CONFIDENCE: 35.8 V 33.8 PRIOR (8-month high) (NZ) NEW ZEALAND MAR TRADE BALANCE (NZ$) 134M V 417ME (KR) SOUTH KOREA MAR INDUSTRIAL PRODUCTION M/M: -3.1% V +0.2%E; Y/Y: 0.2% V 2.2%E (KR) SOUTH KOREA MAY BUSINESS SURVEY MANUFACTURING: 90 V 85 PRIOR; NON MANUFACTURING: 85 V 82 PRIOR (SI) SINGAPORE Q1 UNEMPLOYMENT RATE PRELIM: 2.1% V 2. ...

Fundamental Analysis EUR "We expect it to go higher, to reach 11 percent by the end of the year" - Raphael Brun-Aguerre, an economist at JP Morgan Euro zone unemployment rose to the highest since 1998, a sign the economy has slipped into recession. Unemployment increased to 10.8 per cent, said the European statistical agency on Monday. USD "We are seeing a broadening in the improvement across the economy" - Millan Mulraine, a senior U.S. strategist at TD Securities U.S. manufacturing growth accelerated in March, the latest evidence the economy is gaining momentum. GBP "UK manufacturing has made a brighter than expected start to 2012" - Rob Dobson, senior economist at Markit The U.K. manufacturing sector expanded at its fastest pace for 10 months in March, Markit data showed on Monday. ...

Fundamental Analysis EUR 17-country FMs voted in favour of a firewall package adding EUR 500 billion (USD 667 billion) fresh rescue cash to EUR 300 billion already provided to bailout programs. The overall firewall size now totals USD 1 trillion plus about EUR 1 trillion ECB aid to the region's lenders. Europe has met the requirements and now awaits talks with IMF on April 20 to get more support, French FM Francois Baroin said over the weekend. USD US car sales are likely to have remained strong last month, say auto producers. The sales are likely to have climbed at the fastest pace in the last four years in the March quarter amid improved outlook on the US economy. Strong US sales are likely to have offset weak demand from the Euro Zone, the auto makers added. GBP UK home prices ...

Dukascopy Fundamental Analysis EUR BMW AG, German car maker will recall 120,246 cars in China due to the difficulties with the automobile's batteries, nation's quality control agency reported on Tuesday. The recollection of the Coupe, BMW 6 Series Convertible, BMW 6 Series and BMW 5 Series, vehicles produced between year 2003 and 2010 will begin in May 10. An installation problem of the batteries can create safety risks, quality control agency claimed. USD US businesses project slower pace of revenue growth in China in 2012 amid rising operation costs and worries over global stagnation, according to survey of American Chamber of Commerce. About 43% of the firms surveyed expect increase in sales to approach 11% this year as compared to a 15% increase in 2011. The major contributors to ...

(Reuters) - The euro slid against the dollar and yen on Thursday after a fall in manufacturing in the euro zone's two largest economies and in China rekindled worries about global growth. Manufacturing in the euro zone unexpectedly fell in March, hit by a sharp fall in French and German factory activity, according to purchasing managers' surveys. In addition, PMI data from China showed factory activity there shrank in March for a fifth straight month, underscoring worries about risks to global growth and driving down risk-friendly currencies such as the Australian, Canadian, and New Zealand dollars. The reports contrasted with U.S. data showing new applications for unemployment benefits dropped to a four-year low in the latest week. "Today we have returned to the risk-off/risk-on ...

(Reuters) - The euro weakened against the dollar and yen on Thursday after a fall in manufacturing in the euro zone's two largest economies and in China rekindled worries about global growth. Manufacturing in the euro zone unexpectedly fell in March, hit by a sharp fall in French and German factory activity, according to purchasing managers' surveys. PMI data from China showed factory activity there shrank in March for a fifth straight month, underscoring worries about risks to global growth and driving down risk-friendly currencies such as the Australian, Canadian, and New Zealand dollars. The reports contrasted with U.S. data showing unemployment benefits dropped to a four-year low in the latest week. "Today we have returned to the risk-off/risk-on trading dynamic as a result of poor ...

The Weekly Bottom Line : 16/03/2012 HIGHLIGHTS OF THE WEEK United States Market participants are clearly trading on what everyone else seems to be feeling: the recovery is back. But the Fed, for its part, is not yet willing to admit that the economy has entered a new, stronger phase. Though the quickening pace of job growth is a positive sign, disposable income growth is still stagnant, and the recent run-up in commodity prices threatens to erode consumer spending growth. Europe's troubles haven't gone away. If market sentiment get's too far ahead of itself, the Fed may be tempted to fight back with another round of asset purchases. But if rising borrowing costs are a product of a stronger recovery then the Fed should be less concerned. Increased spreads may actually be ...

Weekly Economic and Financial Commentary U.S. Review “March Happiness” Tempered by Late Week Reports As March Mayhem arrives in the sports world, investors found much to be happy about with many of this week's economic releases. Retail sales improved for the second straight month thanks to a stronger labor market, rising consumer confidence and unseasonably warm weather across much of the country. Regional manufacturing indices also improved, while import and producer price growth slowed. However, Friday's reports tempered the enthusiasm as industrial production was unchanged, rising gas prices led to the biggest increase in consumer prices in 10 months, and consumer sentiment slipped. Signs of a Consumer Rebound Following a weak end to 2011, retail sales have bounced back, rising 0.6 ...

The Weekly Bottom Line : 28/01/2012 HIGHLIGHTS OF THE WEEK United States The Federal Reserve committed to keep rates on hold through the end of 2014 this week, while today's Q4 GDP released underscored the fragility of the economic recovery. Unfortunately, further monetary easing isn't what is going to provide the jolt the economy needs. What's holding the economy back right now isn't the price of credit; it's the lack of quality borrowers. The pool of potential borrowers willing and able to take advantage of lower interest rates is limited. And as long as aggregate demand remains depressed, businesses will continue to put off investing until the economic outlook improves. What the economy needs right now is more effective fiscal policy solutions. However, fiscal policy so ...