Daily Market Review US Opening 28/02/2013

The value of Forex on European stocks is currently trading above opening levels after better than expected data on the German unemployment as well as the common European CPI. Most recent information shows that German CPI numbers have disappointed Forex investors` expectations by 0.1%. Key representatives from the European market- FTSE 100, DAX 30 and CAC 40 are trading 0.33%, 0.54% and 0.06% higher. Vivendi and Danone are trading almost flat, while German representative are trading mixed. Allianz is up by almost 1% after the company` s CEO announced that their Brazilian Insurance unit has grown 12%, year- on- year basis. Deutsche Telekom is down by 1.49% after announcing worse than expected earnings. Key economic data for the region shows mixed results: Swiss GDP has increased by 0.2% considering investors` expectations of 0.3% negative change. French Consumer Spending has declined, while German data on CPI and Unemployment shows improved results, compared with previous publications. The value of the common euro currency relatively declined against the US dollar as news on the Italian elections weighted on investors` expectations.
The value of Forex on US stocks, closed at higher levels during yesterday` s trading sessions. Key representatives for the world` s largest securities market: DJIA, S&P 500 and NASDAQ closed 1.26%, 1.27% and 1.04% higher compared with opening levels. Key reason for the positive short term investors` expectations were the announcements of the Core Durable Goods, Pending Home Sales, Bernanke` s speech as well as FOMC member Fisher` s speech. Forex on the shares of Boeing closed 2.26% higher after a company` s spokesman announced that engineers are close to resolving 787 battery issues. Intel and Microsoft are trading 1.7% and 1.6% higher. Forex on Google` s stocks gained 1.22%, while Apple and Facebook lost 0.98% and 1.9% respectively. Current data shows that futures on the key benchmark trackers are all trading on the positive side. Key economic events for today` s trading sessions are the announcements of the US unemployment, GDP and Chicago PMI.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Overview of Deutsche Telekom 28/02/2013

The value of Forex on Germany` s largest mobile operator-Deutsche Telekom lost close to 1% after the company reported its fourth quarter earnings, which are below investors` expectations. The company said that the decline in earnings is due to higher spending costs to add new customers in Germany and to retain the current ones in the US. EBITDA fell 13% to 4.03bln euro compared with analysts` predictions of 4.16bln. Numbers on the holding company`s revenue, however, are better than expected at 14.7bln euro. December announcements of the company` s management were poised at lowering future dividends due to the increasing need to invest in upgrading European and US network infrastructure. Other disappointing Forex news is the fact that Deutsche Telekom` s T-Mobile USA has had net losses of 515000 contract customers in just the last quarter. The German mobile carrier`s attempts to acquire Metro PCS is about to be voted on by the company`s shareholders on 28 March, so Forex investors could take advantage of some long term trading strategies. Deutsche Telekom` s greatest competitor in the European market-Telefonica announced earnings that comply with analysts` estimates, causing the value of Forex on the rival company to make substantial gains. The graph clearly indicates the relative increase in the value of Forex on the shares of the company during yesterday` s trading. Today however, shares of company are currently trading 1.95% lower than yesterday. The several breaches of the Lower Bollinger Band suggests greater pushes by bearish Forex investors, so those with positive expectations should be careful when placing call orders. The short term support level is set at 8.11 and an eventual break of that level would signal a forthcoming continuation of the negative trend. On the other hand, the first resistance level is set high at 8.38 and passing that level would provide call options investors with great opportunities. The 50 and 200 Day Moving Averages` intersections coincide with the trend reversal, so technical analysts` have a solid ground for investment decisions. The Relative Strength Index reads in the neutral zone so Forex investors could possibly take advantage of some short term fluctuations.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

A Brief Overview of AUD/USD 28/02/2013

The value of Forex on the Australian dollar versus its US counterpart rallied during today` s trading sessions, erasing previous losses after data from the Royal Bank of Australia reveals that that it will cut its benchmark interest rate. The value of the Aussie dollar dropped significantly the moment figures revealed that capital spending has fallen during the last quarter. The yield on Australian bonds rose after reaching a five week low. Fluctuations of 0.8% were the main characteristic of early Asian currency trading. The negative change in capital spending came as a great surprise as analysts` expectations were set at 1% increase, compared with an actual decrease of 1.2%. Current data suggests that the value of the Australian dollar could be overvalued against its US counterpart by between 4 – 15%. RBA Governor Glenn Stevens said at a conference that the value of the currency “could be somewhat too high”, but he has to be confident that it is “seriously overvalued” in order to consider interventions to weaken it. The graph clearly indicates that the value of the Australian dollar rebounded after reaching a low of 1.018. The numerous breaches of the Lower Bollinger Band suggest that bearish Forex investors are to prevail over the bullish ones in the short to medium term. The intersections of the 50 and 200 Day Moving Averages provide reliability for using technical analysis. The first support level is set at a low of 1.018 and an eventual break of that level would signal Forex investors` consciousness considering an eventual Aussie overvaluation. On the other hand, the weak resistance is set at 1.0295 and an eventual break of that level would signal a forthcoming short term upward trend. The Relative Strength Index reads slightly below the overbought zone, so Forex investors should be careful when placing call orders.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

A Brief Overview of SONY 28/02/2013

The value of Forex on the shares of the world` s number one consumer electronic exporter-Sony gained 3.56% during the early Asian trading sessions this morning. A key event for the company is the fact that yesterday it was announced that Sony is acquiring Vivendi` s Universal Music. Details on the deal were not disclosed, but analysts` views value the transaction at about $60.5mln. The is the final step in order for Sony to be approved by the European regulators to purchase EMI group. This fact combined with a second consecutive month growth in Japanese industrial production, and the nomination of Haruhiko Koruda for BoJ` s governor caused the short to medium term improved economic outlook. Another important factor which favors Japanese exporters is the 11% decline in the value of the yen over the past three months. Koruda is expected to increase monetary stimulus, hence creating even greater opportunities for domestic exporters on the cheap yen. Data shows that shipments to China and the US have increased, causing 64% of the NIKKEI 225 components to announce better than expected earnings per share. The graph clearly indicates the relative increase in the value of Forex on Sony which originates from the middle of January. Current data shows that even the presence of a positive impulse, the 50 and the 200 Day Moving Averages have collided, with the 50 crossing the 200 towards the negative side, suggesting an eventual downward impulse. The fact that both Bollinger Bands have remained almost intact, provides proof of the lower volume hence the volatility of the company` s shares.  The weak support level is set at a low 1265 and an eventual break of that level would signal that the short term outlook for the company has not improved on the current positive news. On the other hand the resistance level is set at 1380. The Relative Strength Index is headed towards the overbought zone so Forex investors should be careful of eventual short term negative fluctuations.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

Daily Market Review 28/02/2013

The value of Forex on Asian stocks closed at significantly higher levels compared with opening values this morning, heading for a five month high, after the announcement of better than expected US data and the locally bolstered confidence by the change of the Bank of Japan` s governor. The broadest regional index MSCI Asia climbed 1.4% which represents the greatest daily increase since 14th September and the strong upward trend has poised the value of the index for a four consecutive month winning streak. The value of the Australian SPI 200 gained more than 1.3%, as did the South Korean KOSPI which added 1.12% to its value. The key representatives from the Japanese market: NIKKEI 225 and TOPIX 500 marked the largest increases gaining 2.71% and 2.3%, respectively. Data on Japanese industrial production has revealed better than expected numbers, a fact which caused Forex investors to place call orders on local stocks. This combined with the change of BoJ Governor-Prime Minister Abe nominated Kuroda for the position, appears to have greatly changed investors` future expectations for the economic development of the region and caused the value of Asian security deposits to increase. The value of Forex on Toyota gained 3.47% on the improved export outlook, due to the decline in the value of the Japanese currency. Honda added even more to its Forex` value as the company` s shares increased by more than 3.7% on the management` s announcement that a Japanese production plant is under serious consideration-an event which has not occurred for 50 years. The world` s largest consumer electronics exporter-Sony gained 3.56% after the company bought Vivendi` s European subsidiary Universal Music. Key economic indicators for the forthcoming trading sessions are the announcements of the Australian Manufacturing Index as well as the Japanese CPI, Unemployment Rate and Capital Spending. The value of Forex on European stocks also marked a positive change today as the key regional benchmark trackers-FTSE 100, DAX 30 and CAC 40 added 0.88%, 1.04% and 1.92% respectively. ECB President Mario Draghi announced that the bank has no intentions to further tighten monetary policy measures as the current target of 2% inflation is already met. The base interest rate for the union has been set to a record low of 0.75% in order to provide greater liquidity for local lenders. Events around the Italian elections appear to have comparatively settled down, as shown by the increase in the value of regional securities. The latest news on the matter is that Italian investors are to force a Bersani-Berlusconi coalition in order to cope with the controversial apprehensions of the leaders` intentions. Among the largest gainers from the French market is France Telecom, which added 3.4% to its Forex value as the company announced that it plans to expand its` business in countries such as Italy and South Africa. Shares of Deutsche Telekom declined after the company published worse than expected earnings for the fourth quarter. Deutsche Bank, Bayer and BMW are among the largest gainers form the German market, after all companies added more than 1% to their stocks value. Key economic events for today` s trading sessions are the announcements of the Swiss GDP, German unemployment and CPI numbers as well as the common European Consumer Price Index.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

Economic Events 27/02/2012

07:00 EUR Gfk German Consumer Climate

Forecast: 5.9 Previous: 5.8

Level of a composite index based on surveyed consumers. Survey among about 2000 consumers which asks respondents to rate the relative level of past and future economic conditions, including personal financial situation, climate for major purchases, and overall economic situation.

09:20 GBP MPC Member Bean Speaks

Bank Of England Deputy Governor Charles Bean. BOE MPC members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy

09:30 GBP Second Estimate GDP q/q

Forecast: -0.3% Previous: -0.3%

Change in the inflation-adjusted value of all goods and services produced by the economy. The ‘Previous’ listed is the ‘Actual’ from the Preliminary release and therefore the ‘History’ data will appear unconnected. There are 3 versions of GDP released a month apart -Preliminary, Second Estimate, and Final. The Preliminary release is the earliest and thus tends to have the most impact.

13:30 USD Core Durable Goods Orders

Forecast: 0.3% Previous: 1.0%

Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items. It’s a leading indicator of production -rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. Values above zero are considered for the stock market and the USD and values below 0 are accepted as bearish.

15:00 USD Fed Chairman Bernanke Testifies

As head of the central bank, which controls short term interest rates, he has more influence over the nation’s currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

15:00 USD Pending Home Sales

Forecast: 1.7% Previous: -4.3%

Change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

17:30 EUR ECB President Draghi Speaks

As head of the ECB, which controls short term interest rates, he has more influence over the euro’s value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

Daily Market Review 27/02/2013

Asian equity markets traded higher on Wednesday after Fed Chairman Ben Bernanke reassured markets that he will continue with the stimulus policy. Japanese markets, however, were down on a rising yen. The Nikkei was down by 1.27%, while the KOSPI and the S&P/ASX 200 were higher by 0.20% and 0.66%, respectively. In China, the Hang Seng Index was lower by 0.29%, while the Shanghai was up by 0.20%. In Japan, the yen which is viewed as a safe-haven currency, hit a one month high against the U.S. dollar on concerns about political turmoil in Italy. Hong Kong equities recovered from a 2-month low, boosted by a 3% gain in AIA after the insurance giant posted and 89 percent increase in 2012 earnings. In addition, the Chinese government pledged more public housing and land to tackle home affordability. In Korea, shares of Samsung jumped 1 percent after the electronics company signed a partnership agreement with company Movistar. In Australia, shares of AGL Energy jumped 5 percent after the company recorded a 20% rise in first-half net profit.
In Europe, the major indices are set to open higher as investors are looking for bargain buying. The FTSE is set to open higher by 3 points at 6,273, while the German DAX and the CAC are set to open higher by 29 and 11 points, respectively. In Italy, the political parties are trying to find a way out of the stalemate situation after none of them won enough votes to have a parliamentary majority.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Overview of EURUSD 26/02/2013

The value of Forex on the euro versus the US dollar reached a seven week low after the yield of Italian and Spanish bonds trimmed earlier losses which occurred due to worries over the eventual Italian refueling of the Eurozone economic crisis. The value of the common Euro currency appreciated against most of its 16 major counterparts. The yen weakened against the euro on speculation that Prime Minister Shinzo Abe will select Kuroda, who is a proponent of fighting deflation, as the next central bank governor. The value of the euro has declined by more than 0.9% against 10 developed nations` currencies, clearly indicating investors` fear over the future political and economic developments within the union. In case the Italian jitters remain present, investors` hesitation will be the key factor to persists in Forex trading. In case Berlusconi gets re- elected global investors could regard to the fact as a sign of disregarding current tight austerity measures and implementing an eventual controversial, loosened monetary policy, under the conditions of harsh financial surroundings. The graph indicates significant intraday and daily fluctuations. Even though the Bollinger Bands provide Forex investors with the relative boundaries within which the value of euro against the dollar should be positioned, investors should be careful when placing trades on the major pair. The weak support level is set at today` s low at 1.02350 and an eventual break of that level would indicate yet another drop in global investors` sentiment as to the future of the European monetary union. The first resistance is set at 1.03150- the top of a spike from yesterday` s sessions. The short term dynamics of the pair could hardly be explained by using either technical or fundamental analysis, key factor which greatly impacts investors` perceptions is the political situation in Italy. Even though the 50 and 200 day Moving Averages do provide consistent trend information, Forex investors should be careful when placing short term trades. The Relative Strength Index is in the neutral zone, providing no clear indication for an eventual future trend.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Overview of DAX 30 26/02/2013

The value of Forex on German stocks has declined following the global negative trend. The Italian inconclusive elections have managed to cause global Forex investors to diverge from the recent positive outlook and place investments which oppose the previously positive trend. The value of the main German market tracker index- DAX 30 declined by 1.88% so far. The volume of traded Forex on shares from the DAX 30 index is twice as much as the 30 day moving average. Deutsche Bank is among the largest losers as it currently trades 2% lower than yesterday. Commerzbank- the second largest lender after Deutsche Bank had declined by 3.11% as of 10 GMT. German representatives from most business spheres have reportedly marked negative fluctuations. The value of Forex on the shares of the world` s largest chemicals producers- BASF have declined by more than 1% after the company the announced that EBIT have increased by 18% to 1.8bln euro, which corresponds with investors` expectations. The reason behind the steep decline is actually the fact that the company` s management announced a dividend of 2.6 euro which is less than analysts` estimates. The graph clearly reveals the steep decline, noticeable from today` s trading. The numerous breaches of the lower and upper Bollinger Band suggest great volatility within the German securities market. Considering today` s negative news Forex investors could take advantage of some short term downward impulses. The weak support level is set just below the psychological 7600 and an eventual break of that level would suggest a forthcoming continuation of the trend. On the other side the short term resistance is set at the top at 7865. The short term trends coincide with the intersections of the 50 and 200 day Moving Averages hence Forex investors could potentially use technical charts as solid grounds for investments. The Relative Strength Index reads slightly above the oversold zone, so investors should bear in mind that ultra- short term, positive impulses might be present.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Overview of Vivendi 26/02/2013

The value of Forex on one of France` s largest mobile carriers- Vivendi is expected to appreciate as the company announced better than expected sales for the full 2012. Numbers show that sales have increased by 0.6% to 29bln euros, compared with analysts` estimates of 28.5bln. Vivendi, which is set to refocus on media and currently stresses on telecommunication, announced that better than expected numbers are due to an increase in music and video games revenue. The company` s portfolio consists of video game maker Activision Blizzard, Universal Group, Canal+ and mobile operators in France, Brazil and Morocco. Even though profitability for the fourth quarter fell 18%, sales rose by 5.9% to 8.24bln euro. The company reported an impairment cost of 760mln euro related to Canal+ goodwill. Analysts` expectations are that the company` s management will come to a clearer business model and strategy soon and it will be announced to Forex investors. Current events for the company are the eventual sales of the Brazilian GVT as well as the sale of the Moroccan Maroc Telecom. The graph clearly indicates the recent mixed trading of Forex on the shares of Vivendi. The relative decline coincides with the intersection of the 50 and the 200 Day Moving Averages and basing investment decisions on solely this indicator would signal a forthcoming continuation of the positive trend, considering the current convergence of the two average prices. The several breaches above and below the Bollinger Bands indicate that investors find it hard to place solid investments, before other company announcements. The first, weak support level is set at 15.25 and Forex investors could find a short to medium term barrier for the bearish investors. In case this level is breached the next support is set at 14.85. On the other side the weak resistance is set 16.18 and an eventual break of that level would signal a short to medium term continuation of the positive impulse. The Relative Strength Index reads in the neutral zone so the upward trend limitations could be regarded to as minimized.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.