Non Farm Payrolls

Non Farm Payrolls and Unemployment Rate
The Non Farm Payroll is scheduled to be released on this Friday.

Economists and market players are expecting the unemployment rate to creep higher to 9.8%, up from 9.7% a month earlier.

There is a fantastic improvement in the Non Farm Payrolls for September. There is a loss of 188k jobs compared with 216k jobs shed in Aujavascript:void(0)gust.

US Dollar Interest Rate

The Federal Reserve will be among the last major central banks to raise interest rates, putting a recovery of the dollar at risk.
Foreign investors will be reluctant to invest more in the U.S., and the government deficit will keep widening.

Selling of US Dollar

Traders sold off the dollar sharply following the FOMC's monetary policy announcement, in which the Fed held interest rates unchanged by unanimous decision at 0.0%-0.25%. The greenback relinquished the 1.48-level against the euro and slumped to its session lows versus the British pound at 1.6467.

Unemployment Benefits Dropped

U.S. applications for unemployment benefits dropped by 12,000 to 545,000 in the week ended Sept. 12, from a revised 557,000 the week before, Labor Department data showed today. Economists forecast weekly claims would rise to 557,000 from a previously reported 550,000.

Dollar Fell

Sept. 16 (Bloomberg) -- The yen and dollar fell against most of their major counterparts as an increase in America’s industrial output last month encouraged investors to sell the U.S. and Japanese currencies and buy higher-yielding assets.

Japan GDP

Japan’s gross domestic product expanded an annualized 3.7 percent in the second quarter, following an 11.7 percent decline in the three months ended March 31, the Cabinet Office reported in Tokyo today. The median forecast of analysts surveyed by Bloomberg News was for a 3.9 percent increase.

US Unemployment

Fed and the US Unemployment

NY Fed President Dudley expressed optimism over the economy, saying he expects moderate growth in the second half of this year, albeit considerably slower than in past recoveries. Dudley said "the balance of risks is still tilted toward weakness in growth and employment and not toward higher inflation", suggesting that the Fed will likely maintain low interest rates for some time to come. Lastly, he said that "if the recovery does, in fact, turn out to be lackluster, the unemployment rate is likely to remain elevated and capacity utilization rates unusually low" in the near-term.

The Fed's Beige Book revealed the pace of economic decline had moderated or stabilized at a low level in most districts adding that the manufacturing sector remained subdued but slightly more positive than in the past. The Fed said there was still slack in the labor markets, with most sectors reducing jobs or holding steady and net employment falling.

BOE Meeting for Cheaper Pound

Cheaper Pound

The Bank of England’s Monetary Policy Committee will stick tomorrow with its current plan to spend as much as 125 billion pounds in newly printed money to boost the economy, according to a Bloomberg News survey of economists.

Economic Recovery

The British Chambers of Commerce, a business lobbying group, said an economic recovery “is not guaranteed” and the central bank should extend its quantitative-easing program to the full 150 billion pounds ($243 billion) and seek permission to spend more. BOE policy makers will next meet July 9.

Economic Calendar

Weekly Jobless Claims
The US economic calendar this week is light, consisting of weekly jobless claims, wholesale sales, wholesale inventory, trade deficit and the July University of Michigan consumer confidence report. Weekly jobless claims are estimated to ease slightly to 610k from 614k in the previous week.

Trade Deficit
The trade deficit for June is seen expanding to $30.0 billion versus $29.16.

USD Buoys

Confidence Hits Stocks, Buoys USD
by Korman Tam


Safe-haven moves dictated movements in the foreign exchange market, with the dollar strengthening against most of its counterparts and pushing the euro back toward the 1.40-figure. The US equity market slumped on economic reports released earlier in the session, with the Dow Jones and S&P 500 losing over 1%.

The data this morning included the April Case-Shiller home price index, the NY NAPM index, the June Chicago PMI and the June consumer confidence index. The April Case-Shiller home price index declined by less than anticipated, falling by 0.6% versus a 2.2% drop in the previous month and lower by 18.1% on the year, improving from an 18.8% decline a year prior. The Chicago PMI report for June was inline with consensus estimates at 39.0, albeit up from the May reading at 34.9. The employment component of the PMI increased to 28.9 versus 25.0 while new orders rose to 41.6 from 37.3 previously. The key element in today's data that drove the markets lower was a disappointing report in the Conference Board's June consumer confidence survey, which missed expectations for a marginal improvement to 55 from 54.9 in May, instead falling beneath the 50-level to 49.3 from a downwardly revised reading of 54.8 a month prior.

The economic calendar for the remainder of the holiday-shortened week includes the June ADP private sector payrolls report, May pending home sales, May manufacturing ISM, durable goods orders and on Thursday, the key June non-farm payrolls report, and the June unemployment rate. Tomorrow's ADP private sector payrolls report will be closely scrutinized as a proxy for Thursday's non-farm payrolls, with ADP estimated to improve to -411k versus the previous month at -532k. Meanwhile, the government report on Thursday will likely reveal a larger amount of jobs loss in June at -368k from 345k in May and the unemployment rate is expected to creep up further to a new multi-decade high at 9.4% from 9.2%. ( More.. )

How Does A Debt Consolidation Loan Help You?

How Does A Debt Consolidation Loan Help You?

Many people do not have a clear understanding what a debt consolidation loan is. A debt consolidation loan is a form of personal loan that enables you to consolidate or combine numerous other debts into one. A debt consolidation loan is always a good choice to get rid of your credit card debts. For instance, if you carry three or more credit cards, then you might get rid of your credit card debts through securing a debt consolidation loan that would repay all your credit cards. Therefore, you just have to make a single payment every month rather than making three or four separate payments.

Benefits of a Debt Consolidation Loan

Following are the salient benefits of a debt consolidation loan:

 A debt consolidation loan might carry a lesser interest rate in comparison to the rates of your credit cards. Hence, this loan would lower your interest payments and ultimately help you get rid of your credit card debts.
 With the reduced interest rates and stretched out repayment terms offered by a debt consolidation loan, you can lower your overall monthly payment.
 You are substituting multiple payments every month with just one payment, which must make your household budget simpler.

Are You Eligible for a Debt Consolidation Loan?

In order to become eligible for a debt consolidation loan, you have to fulfill the following criteria:

 The bank/lender would ask for a copy of your monthly budget in order to ascertain whether you can make your loan payments.
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 To fulfill requirements established by the lenders or banks that provide debt consolidation loans, you might require a cosigner or security (like a home or a car).

Dollar Slumps

Dollar Slumps

by Korman Tam

The Dollar relinquished gains against the euro and Aussie on the Tuesday session as UK and US markets returned from holiday. The US equity bourses lauded earlier upbeat economic reports, with a sharp unexpected rise in the Conference Board's May consumer confidence survey to its highest level in 8 months at 54.9, versus a revised 40.8 a month earlier - triggering a sharp rally in the Nasdaq, up 3.45% and the Dow Jones, advancing by over 2.5%. The Richmond Fed manufacturing survey reversed some of its previous month's declines, as the composite index edged up to 4 in May versus -9 in April, while the manufacturing shipments component improved to 9 from -3 and the services index held steady at -29.

However, not all the reports were positive, with the S&P Case-Shiller home price survey reinforcing current downward pressure on the housing market. The S&P Case-Shiller index in March slumped by 2.2% on a monthly basis and plunged by 18.7% on an annualized basis.

Bloomberg Forex News

Euro Declines as Economy Contracts Most in at Least 13 Years

May 15 (Bloomberg) -- The euro fell against the dollar and extended a weekly loss versus the yen as the economy of the 16- nation region contracted the most in at least 13 years, raising concern the pace of recovery will be slow.

The U.S. currency pared its loss against the yen as manufacturing in the New York region contracted this month the least since August and the six-month outlook improved for a third straight month. The euro was headed for its first weekly decline versus the dollar in a month on Europe’s contraction.

“It’s a really bad piece of data, and it’s going to get worse because the European Central Bank has only come up with half-hearted measures,” said Geoffrey Yu, a strategist in London at UBS AG, the world’s second-largest currency trader. “This is going to be bad for the euro.”

The euro slid 0.5 percent to $1.3573 at 10:15 a.m. in New York, from $1.3639 yesterday, and was headed for a weekly decrease of 0.4 percent. The euro lost 1.1 percent to 129.27 yen from 130.67, for a 3.5 percent decline this week. The dollar dropped 0.6 percent to 95.25 yen, from 95.80, after earlier decreasing 1.1 percent.

The yen gained this week versus all of the 16 most actively traded currencies tracked by Bloomberg as reports indicating the global economic recovery may be slow reduced demand for higher- yielding assets. The yen rallied 7.6 percent to 11.06 against the South African rand and increased 5.7 percent to 14.70 versus Norway’s krone.

Yen Falls as Signs of U.S., Chinese Recovery Pare Safety Demand

Yen Falls as Signs of U.S., Chinese Recovery Pare Safety Demand

May 1 (Bloomberg) -- The yen fell to a two-week low against the euro while the dollar dropped as signs of recovery in manufacturing in the U.S. and China sapped demand for the currencies as a refuge.

Australia’s dollar rose for a ninth week against the greenback as the rand gained today versus all of the other major currencies on speculation investors will buy higher-yielding assets. The dollar advanced against the yen as the yield premium of 10-year Treasuries over comparable Japanese debt increased this week to the highest level since November.

“There’s renewed optimism about the global economy,” said Samarjit Shankar, director of strategy for the global markets group in Boston at Bank of New York Mellon, the world’s largest custodial bank, with about $20 trillion in assets under administration. “Money is coming from the sidelines. For now, risk appetite is weighing on the yen, and the dollar remains on its back foot.”

The euro rose 1.1 percent to 131.98 yen at 10:05 a.m. in New York, from 130.52 yesterday, and reached 132.35, the highest level since April 14. The yen declined 0.9 percent to 99.47 against the dollar, from 98.63. It touched 99.58, the weakest level since April 17. The euro appreciated 0.3 percent to $1.3273 from $1.3230.

Trade GBPUSD

GBPUSD

Long Position at: 1.4268
Stop Loss at: 1.4168
Take Profit at: 1.4380 / 1.4484

OP, SL & TP at YOUR OWN RISKS

Short Position at: 1.4220
Stop Loss at: 1.4320
Take Profit at: 1.4100 / 1.4030 / 1.3952

OP, SL & TP at YOUR OWN RISKS