| | Analysis by: Johan Ditz Lemche | Market Strategist
Partners at Saxo | | |  |
| | Forex Market Update | Tuesday, Jan 08, 2008, 07:37 GMT | USD bid ahead of Home Sales | |
A quiet Monday kept the FX markets fairly rangy and we expect this to continue ahead of the US Pending Home Sales at 15:00 GMT. USD remains bid, with AUD rallying after data. JPY still mixed.
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Overnight News Bullets - EC Sentix Investor Confidence Jan, out at 8.2 vs 10.5 exp.
- EC PPI Nov, out at 0.8% in line with exp. YoY out at 4.1% vs 4.0% exp.
- EC Unemployment Rate Nov, out at 7.2% in line with exp.
- EC Business Climate Indicator Dec, out at 0.92 vs 0.90 exp.
- EC Consumer Confidence Dec, out at -9 vs -8 exp.
- EC Economic Confidence Dec, out at 104.7 vs 104.3 exp.
- EC Indust. Confidence Dec, out at 2 in line with exp.
- EC Services Confidence Dec, out at 14 vs 13 exp.
- AU Building Approvals Nov, out at 8.9% vs 0.4% exp. YoY out at 14.6% vs a prior reading of 9.1%.
- AU Foreign Reserves Dec, out at A$30.5B vs a pror reading of A$32.7B.
O/N Data Heat map: | EU | US | JP | UK | SZ | AU | CA | NZ | NO | SE | FR | | (+) | 0 | 0 | 0 | 0 | + | 0 | 0 | 0 | 0 | 0 |
Calendar Today's Highlights: | 08:30 | SW | Riksbank release of minutes from last Central Bank meeting (Dec 18) | | | 09:00 | NO | Industrial Production MoM/YoY (NOV) | Prior 1.0% / 4.5% | | 09:00 | NO | Industrial Production Manufacturing (NOV) | 0.2% / 4.8% | | 09:00 | NO | Unemployment Rate – AKU (OCT) | 2.5% | | 10:00 | EC | E-Z Retail Sales MoM/YoY (NOV) | 0.5% / 0.5% | | 11:00 | GE | Factory Orders MoM/YoY (NOV) | -1.8% / 7.7% | | 15:00 | US | Pending Home Sales MoM (NOV) | -0.7% | | 15:00 | US | IBD/TIPP Economic Optimism (JAN) | 43.0 | | 20:00 | US | Consumer Credit (NOV) | $8.0B | | 22:00 | US | ABC Consumer Confidence (JAN) | -20 | This and Next Week’s Highlights: | 9 Jan | AU | Job Vacancies, Retail Sales | | 9 Jan | GE | Retail Sales, Trade Balance, Current Account, Imports, Exports, Industrial Production | | 9 Jan | SW | Budget Balance | | 9 Jan | NO | Retail Sales | | 9 Jan | EC | E-Z GDP, E-Z Household Consumption, E-Z Gross Fix Cap, E-Z Government Expend | | 9 Jan | US | MBA Mortgage Applications, DOE U.S. Gasoline Inventories | | 9 Jan | CA | Housing Starts |
What's going on? - The USD rebounded after the weak job report on Friday against the EUR on a quiet day and broke a seven-day losing streak against the JPY as risk willingness reentered the market. However the risk in the USD is still to the downside with pending home sales as the possible trigger.
- Pressure on the MPC to cut rates on Thursday has risen on expectations that tomorrow’s BRC retail sales is expected to show the weakest figure since March 2006.
- Bear Sterns CEO, James Cayne is expected to resign as a direct consequence related to the subprime losses.
| EUR | USD | JPY | GBP | CHF | AUD | CAD | NZD | NOK | SEK | PLN | | + | 0 | - | - | 0 | + | 0 | - | 0 | 0 | + | |
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