Forex Daily

We are still awaiting the economic impact of market turmoil that began in August. Miguel Ordonez who is the European Bank Governing Council member said that the impact of such change is unclear.

World economic growth has never been certain but now it seems even less so. Miguel has said that data from confidence surveys does not show any great market change.

Guilts are maturing with a healthy yield, well this is the prediction of the UK DMO:

Management for the Uk’s Debts are to auction 2.25 bln Gilts from the treasury at the auction on the 2nd of October.The Treasury Gilts will mature in 2030 with over a 4.60 yield.

Copper has now risen above the 8,000 USD a tonne price, stocks are falling and some supply problems in the American region has caused speculative buying. This has occurred with the weak dollar price.

The dollar has fallen to a new low against the Euro, following pressure from the 50 percent cut in rates by the US Federal Reserve who are trying to make the US economy more stable.

The weaker the dollar the cheaper the prices of metal such as copper, which is priced in dollars.

It is thought that US economic growth may well slow in the next few months. The tightening of credit markets will have impact on the broader economy.

Time is certainly of the essence at the moment as the Federal Reserve are expected to make some major decisions later today. Traders are betting upon the fact that the central bank will take action and indeed cut rates.
Really the decision could go either way and we may find a surprise decision that the Fed leave rates unchanged.
We watch with anticipation to see who will be proved right, will it be the market players or the economics experts ?

It’s hoped that efforts will be improved to make the 2010 deadline for deficit well this is after a statement from Christine Lagarde (French finance Minister) who says France will be pulling out all the stops to make the date.

Two days of loss brought minimal change to European Government bonds. The Euro has regained strength against the dollar so lowering the chances that the European Central Bank will reduce borrowing costs.

With the Euro being strong it could add to the pressure of economic growth particularly with current volatility in the financial market and inflated oil prices.

The USD is once again expected to take a beating this week when the market positions itself ahead of the Fed meeting which will take place on September 18th.

The USD which is week has helped the USDCHF. It is likely that the Swiss National Bank will take action this Thursday.

Economists expectation levels were not met when the retail trade in the euro-zone for the month of July had not grown as anticipated.

Sales of non- food products are thought to be the reason for the rather disappointing volume rise of sales coming in at 0.1%. This has been in sharp contrast to last year which saw a retail sales growth of 0.5% for the month of July.

Economists had expected a better growth for retail when shops offered discounts and because of warm weather.

No overnight change for Canada BoC