20.11.2008 12:45

FOREX. Wednesday summary [M]

The following data were published:
09:30 UK BoE meeting minutes (05-06.11)
13:30 USA Building permits (October), mln 0,708
13:30 USA Housing starts (October), mln 0,791
13:30 USA CPI excluding food and energy (October) Y/Y 2.2%
13:30 USA CPI excluding food and energy (October) -0.1%
13:30 USA CPI (October) Y/Y 3.7%
13:30 USA CPI (October) -1.0%
19:00 USA FOMC meeting minutes (28-29.10)
23:50 Japan Trade balance (October) unadjusted, trln -0.064

The yen advanced against the dollar and the euro as traders speculated a global drop in stocks will prompt investors to sell higher-yielding assets and pay back low-cost loans in Japan's currency. The Standard & Poor's 500 Index lost 2.7 percent.
``Everything is correlated to equities,'' said Firas Askari, head currency trader at BMO Capital Markets in Toronto. ``I don't believe risk appetite will recover any time soon, so the yen will still appreciate. The market seems fragile.''
The yen advanced 14 percent versus the dollar, 33 percent against the euro and 53 percent against the Australian dollar in the past three months as the global economy headed toward a recession.
Japan's currency reached a 13-year high of 90.93 per dollar last month, threatening exporters' earnings and reducing the value of Japan's U.S. government debt holdings.
``I would recommend a continuation pattern of buying the yen,'' said David Bloom, the London-based global head of currency strategy at HSBC Plc, Europe's biggest bank by market value. ``Don't throw your coin in the well and wait around listening for the bottom of the market. This financial crisis is not over.''

EUR/USD having begun session in the field of $1,2620, the rate has established high slightly above a mark $1,2800 then has sharply fallen in area $1,2485.

GBP/USD positions of pound in relation to dollar for yesterday's session again practically have not changed: having begun session at a level $1,4960, the pair has finished Tuesday on a mark $1,4950.

USD/JPY having established a session high at level Y97,10, the pair has decreased in area Y95,65 where and for managed session of environment.

UK data at 0930GMT sees retail sales and the public finance releases for October.
US data starts at 1330GMT with the weekly jobless claims, which are expected to fall 10,000 to 506,000 in the November 15 employment survey week after surging 32,000 in the previous week to a seven-year high. Claims were at 479,000 in the October 18 employment survey week.
Further US data at 1500GMT sees the Philly Fed Business Outlook Survey for November and leading indicators for October. The Philadelphia Fed index is expected to improve to a still pessimistic reading of -35.0 in November after the October plunge. The leading indicators index is expected to fall 0.5% in October. Negative contributions are expected from falling stock prices and consumer confidence. These are expected to be offset by a sharp rise in the real money supply.
The weekly natural gas stocks data is due at 1535GMT. At 1900GMT, Treasury Secretary Henry Paulson is due to speak at the Reagan Presidential Library, in Simi Valley, California. Late data sees the 2130GMT release of the M2 money supply.