Statistics announced by European Commission indicate that proposed by German economic data and the improvement of industrial sector, euro-zone economic sentiment index in July is better than expected, and is higher than the long-term average. Data shows that July euro-zone economic sentiment index rose to 2-year high at 101.3, higher than the expected 99.0.

EUR/USD maintained high order pattern at New York session on Thursday (July 29^th). At a earlier time, boosted by the favorable economic data, the euro forex rate broke through the milestone of 1.3100, and hit a 11-week high at 1.3105 against the US dollar at close on European forex market. But the quarterly report of US enterprises was mingled with both hope and fears, dragging US stocks from climbing to dropping. US index also started to rebound slightly from the 3-month low at 81.49.—-system forex

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Edited by Amanda

But forex analysts pointed out that time serves as an important element in investigations. Forex analysts warned that moods at the peak of the sovereignty debt crisis should not be excessively analyzed, and that the sovereignty crisis had got eased.

Two important German investigations also indicated that fears that credit tightness might hamper German economic recovery were weakening. Enterprises stated to be enjoying a broader channel to attain loans. Banks are also expected to raise loans.

However, demand is expected to climb in the future few months, indicating a possible loans shortage.—-Forex Demo

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Edited by Amanda

Forex Currency----Major British banks passed the EU bank stress test, promoting market confidence and the rise of the pound. British government announced on Monday that BOE would establish a powerful committee to get in charge of banking supervision.
The 2-quarter business performance report, which was better than expected, together with the announcement of European bank stress test on Friday helped to raise risk-preference, and to increase attractiveness to the pound from global forex investors. The fundamentals of the pound kept rising.
Technically speaking, the pound forex rate against the US dollar is at the ascending channel, facing a breakthrough at 1.55. MACD index took an intertwining rise. Although overbought is already the general situation, the trend of Pound forex against the US dollar is still in a trend of repeated rise.
 4-hour diagram shows some pressure of callback. Small dips after the call-back are suggested.----Forex Currency

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By Amanda  

 

[Forex Currency: The Euro Rose after the Stress Test] [Forex Currency: Japan Hopes Stress Test to RelieveDoubts] [Forex Currency: IMF Expects A Slight Depreciation of USD] [Forex Currency: Euro/Dollar rose to two-month High]

Forex Currency---- The euro rose against the US dollar on Monday at 1.30 US dollars, because fears against European bank stress test relieved, and European and American economic statistics went strengthened, reducing reasons for risk-aversion.
Some forex investors worried that the European bank stress test was not strict enough, and thus hesitated in betting on the euro on a large scale. However, the number of these forex investors became less and less, for the majority of them became more worried that they may miss the upward trend of the euro in these few days.
Recent positive European economic data also helped to boost the euro.
“Although the forex market is still focused on the result of stress test”, said Boris Schlossberg, director of GFT forex market research department in New York, “the more important topic lies in the unexpected strong economic data in euro-zone last week”.
On electronic trading platform EBS, EUR/USD rose to 1.3006 dollar high. The euro rose to 1.2992 US dollar at New York close, up 0.7%.
Observed from changes of the euro forex rate, the resistance of the euro options may lies on 1.3000 US dollars. Although forex analysts stated that the euro broke out this level respectively on July 16th and July 20th, they doubt about the existence of this resistance position. Anyway, 1.3000 US dollars may be a psychological milestone, for the euro has never closed above this level since early May.
Fears against the European debt crisis and its impact on European banks dragged the euro down to below 1.19 US dollars last month, which is the lowest since 2006. But the euro began a quick rebound in July----Forex Currency

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By Amanda  

 

Forex Currency---- Japanese Financial Minister expressed on Monday his hope that the result of European bank stress test would help to relieve forex investors’ doubts against European debt crisis.
Some investors and forex analysts hold that the EU’s test for the banks’ ability to understand financial impact is too lenient. The result released on Friday shows that out of the 91 banks who participated in the test, only 7 failed, including a Greek ATE Bank, a German Hypo Real Estate and 5 Spanish savings banks.
The initial reaction of the market was cautiously optimistic, which indicated that speculators might sell euro-denominated assets. Greek sovereignty debt crisis threw the market into fears, and the whole European banking system was at risk. Thus speculators sold euro-denominated assets.
The euro rose on Monday, while the Japanese yen slumped. Japanese, Korean and Australian stocks went up.
When asked whether European bank stress test was too loose, the Financial Minister told the Reuters, “I hope that the test result will continue to ease investors’ fears against Europe.”
Last week, before the announcement of the European bank stress test result, the market atmosphere pushed the yen up against the dollar. Japanese exporters faced threats of loss, which greatly troubled Japanese policy-makers.----Forex Currency

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By Amanda  

[Forex Currency: Japanese Credit Rating At Risk]

[Forex Currency: Yen Slumps After the Resignation of Prime Minister]

[Forex Currency: Euro/Dollar rose to two-month High]

[Forex Currency: Obama seeks to rally senate democrats ]

Forex Currency----According to Moody’s, Irish government is gradually losing its fiscal strength, and its national debt risk has significantly increased. In recent months, Irish governmental fiscal deficit has taken up an ever increasing proportion of GDP, leading to weakened debt sustainability.

Meanwhile, Moody’s also pointed out the gloomy GDP growth outlook. Statistics revealed the significant declining of Irish financial sector and real estate, as well as the continuously decreasing credit of private sectors. Worse more, a series of data concerning capital recombination showed that Irish banking system and governmental debt risk had been increasing with each passing day. Its state-owned assets management department has become a special vehicle created by the government to buy bad loans.
The euro was slightly affected by this negative news. It went down slightly before an immediate rebound. Until GMT 19:22, the euro forex rate rose against the US dollar to 1.2980 dollars.
A forex analyst from Commerz Bank predicted on July 19th that the euro forex rate against the dollar would encounter another resistance between 1.3000 to 1.3010 US dollars before hitting 1.3120 US dollars.----Forex Currency

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By Amanda  

 [Forex Currency: Japanese Credit Rating At Risk]

 [Forex Currency: Fitch Downgraded BNP Paribas Ratings; Euro Hit Bottom of the Day]

[Forex Currency: Greece rating was downgrade and euro suffered from decline ]

Forex Currency----US stocks declined sharply last Friday, because the 2nd-quarter earnings of Bank of America, Citigroup and General Electric were weaker than expectation and the decline of consumer confidence disappointed forex market again.

The Dow Jones industrial average index closed down 261.4 points to 10097.90 points, 2.52% down, highest daily drop for the month.

The slump of US stocks increased forex investors’ fears against risks, which lead to the excessive retracement of risk- currencies.

Imre Speizer, forex strategist of Westpac, stated that the psychological shadow on the stock market decline would pose impact on each market early this week.----Forex Currency

[Forex Currency: Spain’s Sell of Huge Bond Pushed up the Euro]

[Forex Currency: RMB/USD Central Parity Plummeted ]

[Forex Currency: Japanese Credit Rating At Risk]

[Forex Currency: IMF Expects A Slight Depreciation of USD]

Forex Currency---- Yesterday, Spain successfully sold its 15-year bond of 3 billion euro, reducing investors’ fears against its financing ability. The euro forex rate was encouraged to accelerate rebounding. at European trading session yesterday, the euro broke the milestone of 1.2800 against the dollar, setting a 2-month high.
Bank of Spain said that the bond yielding rate of this sale was 5.116%, higher than the 4.434% of the sale on April 22nd. Some forex market personnel commented that this bond sales cost even more, yet achieved nice results, which was effective in boosting market confidence.
The euro led European currencies to rise across the board. Following the rally of the euro, the Swiss Franc hit new high against the dollar in almost two and a half months. Forex analyst of German Commercial Bank, Jones, said that recent euro against the dollar forex rate was heading towards 1.3100.
Meanwhile, the yield spreads of Spain and German’s 10-year bond narrowed further. JP Morgan Chase announced performance data, which is better than expected, promoting the European Stocks to rebound.----Forex Currency

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By Amanda  

[Forex Currency: Euro/Dollar rose to two-month High] [Forex Currency: Euro/CHF About to Decline Further] [IKON Forex:BNP: Euro/USD Would Fall Below Parity Next Year] [Forex Currency: Fitch Downgraded BNP Paribas Ratings; Euro Hit Bottom of the Day]

Forex Currency---- China Foreign Exchange Trading Center, authorized by People’s Bank of China (PBC), announced that on July 13th interbank forex market, RMB/USD forex rate central parity hit 6.7802, 84 basis points lower than the previous day, offsetting the total increase of 72 basis points during the past 4 trading days. Meanwhile, USD/RMB 1-year overseas NDF rebounded to 6.6620 yuan, better than the closing price of the previous day, at 6.6560 yuan.

A forex dealer said, yesterday, RMB central parity unexpectedly went low, RMB offer on inquiry market also dropped at close at 6.7720, 9 basis points lower than the previous day. At the same time, USD NDF highest intraday rebound hit 6.6650 yuan. According to the forex dealer, NDF market believes RMB will experience a slow appreciation in medium and long terms. Thus yesterday, RMB shrank its declining range. He held that the boosting USD buying was strong yesterday on forex market, which reflected the effects of Chinese trading surplus in market.--Forex Currency

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By Amanda  

 

[Forex Currency: RMB Central Parity Drops in Two Consecutive Days] [Forex Currency: Both RMB Spot and NDF Weaken] [Forex Currency: RMB Appreciation Effects Slightly on Hong Kong Inflation] [Forex Currency: RMB Currency Reform will not Change]

Forex Currency---- Yesterday, Japan’s 22nd Senate election concluded with the defeat of Japanese ruling coalition, unable to attain a majority seats. The political variables led Japanese Stocks and Yen forex rate down. Standard& Poor’s pointed out that Japan’s political instability would become a crucial challenge faced by its fiscal consolidation.
The election seems to have brought Japan into another stage featured by political instability. Standard & Poor’s believes that a stable political background is the premise of Japan’s reasonable and sustainable fiscal consolidation, which is also an important factor for Japan to maintain its “AA” rating. Currently, it would be quite difficulty for Japanese government to formulate any major policy.
According to the manager of rating department of Standard& Poor’s, Naoto Kan has promised to reduce governmental expenditure to cope with the huge governmental debt. Yet the election failure brings tremendous difficulties to the government in the process of public department reinstruction and taxation reform. Japan’s sovereignty rating is now at the risk of being lowered.
Different from the overall rising of the majority of yesterday’s Asian-Pacific Stocks, Japanese political affairs led investors to sell off bonds. The Nikkei 225 Index closed at 9548.1 points yesterday, 0.39% down. Meanwhile, JPY/USD forex rate fell to the 2-week low.--Forex Currency

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By Amanda