Acetrader-Daily Market Outlook 5-11-2010

Acetrader-Daily Market Outlook 5-11-2010

Acetrader-Daily Market Outlook 5-11-2010

Market Review - 04/11/2010 23:02 GMT

Dollar falls broadly on risk appetite after Fed decision

The greenback dropped against major currencies on Thursday as the Federal Reserve's bond-purchasing plan prompted investors to seek higher-yielding currencies and the Australian dollar rallied to a fresh 28-year high.

Dollar fell from 81.23 to 80.75 against the Japanese yen in Asian morning as Japanese exporters bought yen aggressively. Despite dollar's recovery on cross-selling in yen due to renewed risk appetite, the greenback dropped sharply to 80.58 after the release of worse-than-expected U.S. jobless claim (which came in at 457K, versus the expectations of 443K and the previous reading of 434K ) and then traded narrowly in NY session.

The single currency edged higher from 1.4103 and surged in European session due to broad-based buying by sovereign names. Later, euro rose further as ECB President Jean-Claude Trichet said after ECB rate decision that risks to the inflation were slightly tilted to the upside. The single currency eventually climbed to a fresh 9-month high of 1.4283 before retreating due to active cross selling in euro (eur/jpy, eur/gbp and eur/chf fell from 115.42 to 114.45, 0.8818 to 0.8718 and 1.3805 to 1.3585 respectively).

The European central bank left its benchmark interest rate unchanged at a record low of 1 %.

The British pound ratcheted higher from 1.6085 and rose above Wednesday's high of 1.6180 in European morning after U.K. Halifax house prices m/m for Oct came in at 1.8%, 3 times the market's forecast. Cable later rallied to a fresh 9-month high of 1.6300 in NY morning on cross buying in sterling versus euro after BOE made no change to its asset purchasing plan .

The Bank of England kept its asset purchasing program unchanged at 200 billion pounds and maintained its interest rate at a record low of 0.5%.

The commodity currencies rose strongly on Thursday as the Australian dollar rallied from 1.0020 to a fresh 28-year high of 1.0177. Nzd/usd surged from 0.7830 to 0.7976 while usd/cad sank from 1.0112 to 1.0010. Spot gold also rallied to a fresh record high of 1392.60.

DJI rallied on Thursday and it ended at 11435, up by 220 points or 1.96%. FTSE-100, CAC-40 and DAX also surged by 1.98%, 1.92% and 1.77% respectively.

Economic data to be released on Friday include:

Australia RBA's Quarterly Statement, Japan BOJ rate decision, U.K. PPI core, PPI input, PPI output, EU Retail sales , Germany Industrial prod'n , U.S. Avg. hourly earnings , Non-farm payrolls, Private payrolls , Unemployment rate, Pending home sales, Canada Employment change, Unemployment rate, Building permits.

http://www.acetraderfx.com

POST COMMENT

How to find yourself a wife in Russia or Ukraine and some recommendations of how to avoid scammers Winning Big in the Stock Market Seven Totally different Ways to Use RSS For Maximum Profits The 1000 Calorie Challenge Scam Online Marketing Tips And Tricks - The 4 Best Ways to Get Rich Bum marketing ( space ) several Robust Approaches to Buy your Reports Read Aan Tools Use Niche Market VS Big Market--Which is More Profitable? The Diet Solution Program Review - Is it A Scam !! Aiseesoft Creative Zen Video Converter For Mac Scam Categories in ClickBank for Higher Affiliate Profit Tips for Online but Local Marketing Make Forum Marketing Work The Study of Customer Behaviour – An Effective Marketing Move