Canada's Currency Is Not

UK PMI Manufacturing comes in below expectations but holds above the 50 level Economic Data (AU) Reserve Bank of Australia (RBA) cuts Cash Target by 50bps to 3.75%; more than expected (PE) Peru Apr Consumer Price Index M/M: 0.5% v 0.4%e; Y/Y: 4.1% v 3.9%e (JP) Japan Apr Vehicle Sales Y/Y: 92.0% v 78.2% prior (IN) India Mar Trade Balance: -$13.9B v -$13.9Be; Exports Y/Y: -5.7% v + 4.3% prior; Imports Y/Y: 24.3% v 20.7% prior (IE) Ireland Apr NCB Manufacturing PMI: 50.1 v 51.5 prior (AU) Australia Apr RBA Commodity Price Index Au: 99.5 v 99.1 prior; Commodity Index SDR Y/Y: -4.2% v 2.1% prior (DK) Denmark Mar Retail Sales M/M: 0.2 v 0.1% prior; Y/Y: +1.2% v -0.2% prior (UK) Apr PMI Manufacturing: 50.5 v 51.5e (lowest since Dec 2011) (DK) Denmark Apr PMI Survey: 61.8 v 53.0 prior (12-month ...

(Reuters) - The yen held at two-month highs against the dollar on Tuesday, having rallied across the board overnight as investors snapped up the safe-haven currency after disappointing economic news from Canada to Spain tempered risk sentiment. Data showing Spain slipping into recession, Canada's economy unexpectedly shrinking in February and business activity in the U.S. Midwest falling sharply gave markets the green light to cash in on recent gains in risk assets. The dollar fell as deep as 79.73 yen, bringing the 100-day moving average at 79.58 in focus. It last stood at 79.85. The euro skidded to a two-week low at 105.47 yen, before steadying at 105.74. Traders said final month-end positioning on Monday also contributed to the choppy price action. The market is now bracing for the ...

The last 24 hours have heaped even more pressure on Madrid. First there was Standard & Poor's two notch rating downgrade for Spain from A to BBB+ with a negative outlook. Second, was a further deterioration in the unemployment rate in the first quarter. S&P's rationale for the downgrade was down to 1, the possibility that the government will need to provide further fiscal support to the banking sector and 2, the deterioration in the budget deficit trajectory for 2011-2015. S&P also mentioned the significant risks to Spain's economic growth, which could weigh on the country's creditworthiness. Spain now has the same rating as Ireland after S&P affirmed Ireland's rating at BBB+ with a negative outlook. It sounded fairly impressed with the Irish government's 'proactive and substantive' ...

Keep Selling The Euro Rallies China's decision to widen its currency band will tend to dominate markets at the Asian open on Monday. The move will be seen as a vote of confidence by China's leadership in the prospects for a controlled economic landing which should also boost risk appetite and as a by-product support the Euro as defensive dollar demand fades. The more confident mood surrounding the Euro and risk appetite is unlikely to be sustained for long as economic and political pressures will intensify during the week and, again, selling Euro rallies remains the best strategy. Confidence in the peripheral economies has taken another beating and the most likely outcome is for a further deterioration during the forthcoming week. The Euro-zone is continuing to suffer both net capital ...

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 ...

Dukascopy Fundamental Analysis EUR European governments urged Spain to implement larger budged deficit cuts to prevent debt crisis from returning to the region. 10 days ago Spanish PM Rajoy unilaterally increased Spain's deficit target to 5.8% of GDP for year 2012 and claimed the country will aim to attain region's common target of maximum 3% in 2013. The announcement was not praised by region's officials who recently signed fiscal discipline treaty. USD US federal budget deficit widened more than expected in February, reported Department of the Treasury. The US federal budget balance declined to minus 231.7 billion US Dollars on a seasonally adjusted basis in February as compared to minus 27.4 billion US Dollars in January. Experts predicted the deficit to attain 229.3 billion US ...

Fundamental Analysis EUR Germany's factory orders unexpectedly slipped in January as overseas demand for machinery and similar investment goods fell. Factory orders lost 2.7% compared to a 1.6% gain in December, said Economy Ministry. Economists questioned by Bloomberg earlier predicted an 0.6% increase. On yearly basis orders have dropped 4.9%. Euro erased morning gains on report. USD Republican Mitt Romney, ex-governor of Massachusetts won the primary presidential election in Ohio. Romney gained 38% of votes, followed by former Senator of Pennsylvania Rick Santorum with 37%, Speaker of US house Newt Gingrich with 15% and US Representative Ron Paul with 9% support. GBP After a rapid drop of 1.9% in previous session, British FTSE 100 index retreated and climbed 0.5% on Wednesday as ...

Fundamental Analysis EUR Germany's factory orders unexpectedly slipped in January as overseas demand for machinery and similar investment goods fell. Factory orders lost 2.7% compared to a 1.6% gain in December, said Economy Ministry. Economists questioned by Bloomberg earlier predicted an 0.6% increase. On yearly basis orders have dropped 4.9%. Euro erased morning gains on report. USD Republican Mitt Romney, ex-governor of Massachusetts won the primary presidential election in Ohio. Romney gained 38% of votes, followed by former Senator of Pennsylvania Rick Santorum with 37%, Speaker of US house Newt Gingrich with 15% and US Representative Ron Paul with 9% support. GBP After a rapid drop of 1.9% in previous session, British FTSE 100 index retreated and climbed 0.5% on Wednesday as ...