Since Standard & Poor’s cut the ratings of 9 Eurozone countries, the euro has done nothing but rally. One of the main reasons why the EUR/USD has been so resilient is because the downgrades had very little impact on European bond yields. French and Spanish bond yields have increased but by less than a tenth of a percent while Italian bond yields decreased since the S&P announcement. The following table compares the 10 year bond yield and 5 year CDS spreads of key EZ nations today vs. before S&P’s announcement. Five year credit default spreads rose, representing an increase in risk premium but the uptick was nominal. The
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How Goldman Sachs sees 2012
Influential US investment bank says the year ahead will be a journey from despair to hope
Goldman Sachs expects the oil price to rise next year, but not to the $150-per-barrel level it forecast before the collapse of Lehman Brothers in 2008. Photograph: Bernadett Szabo/REUTERS
Wall Street investment bank Goldman Sachs, which is also one of the worlds biggest commodity trading firms, has issued its predictions for 2012 as markets brace themselves for a new year slump.
Goldmans clients – which range from vast businesses to governments and wealthy individuals – are being advised to prepare for a rollercoaster ride in the first half of the year, but that a gradual recovery should take hold from the summer.
Investors tend to hang on the banks words because its views are regarded as among the most influential in global financial markets. Gol
Scaling In and Out of a Position Gives You the Needed Flexibility to Manage a Forex Trade
The ideal way to enter into a trade is to do it gradually. This is also known as Scaling In A Position. In the same manner, it is best to exit the trade in a gradual manner. This is also known as Scaling Out Of A Position. Trying to figure out the perfect entry and exit is only going to make you more confused and hinder you in making your trading decisions. There is no perfect entry or exit. You will never be able to catch the top or the bottom at the precise moment.
Let’s make it clear with an example. Suppose, you are trading EUR/USD. If you have been following the currency market, EUR/USD is hovering at its lowest level of 1.2700 in 16 months in the last few days. I
European Market Update: IMF set to again propose increasing lending resources by $1.0T by the next G20 Summit
***Economic Data***
– (EU) ECB: €2.3B borrowed in overnight loan facility vs. €1.6B prior; parked in deposit facility (fresh record highs) vs. €501.9B prior
– (ZA) South Africa Dec CPI (all items) M/M: 0.3%e v 0.3% prior; Y/Y: 6.3% v 6.1% prior
– (MA) Malaysia Dec CPI Y/Y: 3.0% v 3.1%e
– (IT) Italy Nov Total Trade Balance: -€1.6B v -€1.1B prior; Trade Balance EU: -€386M v -€195M prior
– (ZA) South Africa Dec Kagiso PMI: 49.451.6e
– (ES) Spain banks November bad loans ratio 7.51% vs. 7.42% prior m Read more…
TradeTheNews.com European Market Update: Fitch noted that France seen holding onto AAA rating for this year aids risk appetite; Euro nations sovereign review likely to be resolved by end of January
Economic Data
ECB: €1.5B borrowed in overnight loan facility v €1.4B prior; €481.9B parked in deposit facility €463.6B prior
Finland Oct GDP Indicator: 1.1% v 1.4%e
Finland Nov Industrial Production M/M: +0.5% v 0.1%e; Y/Y: 3.5% v 3.4%e
Bank of France Dec Business Sentiment: 96 v 95e
France Nov Manufacturing Production M/M: +1.3% v 0.4%e; Y/Y: +2.2% v 0.1%e
France Nov Industrial Production M/M: +1.1% v 0.2%e; Y/Y: +0.9% v 0.4%e
Denmark Nov Retail Sales M/M: 0.5% v 0.0%e; Y/Y: 1.8% v 3.6% prior
Denmark Dec CPI M/M: 0.0% v 0.0%e; Y/Y: 2.5% v 2.5%e
Denmark Dec CPI EU Harmonized M/M: 0.0% v 0.0%e; Y/Y: 2.4% v 2.4%e
Spain Nov House transactions Y/Y: 14.4% v 18.0% prior
Philippines Nov Bank Lending Y/Y: 19.3% v 21.1% prior; Net of RRPs Y/Y: 22.5% v 22.2% prior
Sweden Dec Budget Balance :90.8B B v +5.5B prior
Sweden Nov Industrial Production M/M: 1.9% v 0.8%e; Y/Y: 0.2% v 2.5%e
Sweden Nov Industrial Orders M/M: 4.8% v 1.8% prior; Y/Y: 8.4% v 5.0% prior
Norway Dec CPI M/M: 0.1% v 0.3%e; Y/Y: 0.2% v 0.5%e
Norway Dec CPI Underlying M/M: 0.2% v 0.2%e; Y/Y: 1.0% v 1.0%e
Norway Dec Producer Prices M/M: 0.2% v 0.3%e; ; Y/Y: 8.2% v 12.9%
South Africa Dec SACCI Business Confidence: 99.1 v 97.4 prior
South Africa Dec Naamsa Vehicle Sales Y/Y: 11.0% v 8.5%e
Fixed Income:
South Africa sold total ZAR2.1B vs. ZAR2.1B