Acetrader-Daily Market Outlook 16-11-2010

Acetrader-Daily Market Outlook 16-11-2010

Market Review - 15/11/2010 23:10 GMT

Euro tanks to a 6-week low against dollar on concern over European sovereign-debt

The single currency sank to a 6-week low against dollar on Monday as worries about Irish sovereign debt prompted investors to buy the greenback as a safe-haven currency. The rising U.S. Treasury yield gave support to dollar as U.S. 10-year Treasury yields reached a three-month high.

Although euro rose initially to 1.3751 in Asian morning on hopes of a rescue package for Ireland, selling interest emerged there and the pair fell sharply on continued concerns over Irish bailout. Despite euro's brief rise to 1.3668 after mixed U.S. data (strong U.S. retails sales data was offset by much-weaker-than-expected Empire State manufacturing index), the pair dropped again as Portugal's Finance Minister said there was a high risk that Portugal would have to seek foreign financial aid. He added the country had no plans to request emergency foreign funding and there were no formal or informal talks on the matter. Euro eventually weakened to a 6-week low of 1.3563 ahead of NY closing.

The greenback edged higher from 82.40 versus the Japanese yen in Asian morning due to the rise in Japanese stock markets and U.S. 10-year yield and climbed to a 5-week high of 83.28 in NY morning. Despite dollar's retreat to 82.71, renewed buying interest sent dollar to 83.24 before NY closing.

The British pound fell from 1.6155 in tandem with euro in Asian morning and weakened to 1.6042 in European morning. However, cable recovered to 1.6124 in NY morning before retreating and then traded sideways in NY afternoon as cross buying in sterling versus euro cushioned cable's downside.

Economic data to be released on Tuesday include:

Japan Tertiary industry index, Machine tools orders ,U.K. CPI core, CPI, RPI, RPI X, DCLG house prices, Germany ZEW index, ZEW Current Situation (Nov), EU HICP final, ZEW survey, U.S. PPI , PPI core, Foreign treasury buys, Net LT TIC flows, Capacity utilisation, Industrial prod'n, NAHB housing mrkt index.

http://www.acetraderfx.com

POST COMMENT

Online Marketing Strategy Plan - 2 Tips To Help You Succeed Faster The Wealthy Affiliate Scam Urinary Incontinence - Pipeline Assessment And Market Forecasts To 2017 The Guru Code by David Saba Review. Is It a Scam or is it Worth the Money? Is YourNetBiz for Real or Scam? Plc Splitters Global Market Forecast And Analysis (2009-2014) Atopic Dermatitis - Pipeline Assessment And Market Forecasts To 2017 Acne - Pipeline Assessment And Market Forecasts To 2017 Millionaire Society Affiliate Marketing Tips For Beginners The Absolute Best Examples of Marketing Strategies Womens Infertility - Pipeline Assessment And Market Forecasts To 2017 Leds Used In Test Measurement Medical Science Devices Global Market Forecast And Analysis 2009 2016 Logo Designing - For Increased Profits