TODAY Oct 12-2012 FOREX IN REVIEWS

Even though Greek unemployment touched new highs, optimism was high across European markets yesterday. The Group of 7 (G7) Meeting in Tokyo cordially discussed European banking woes and the possibility of adding stimulus if the recovery falters. The topic of extending the time frame for meeting fiscal targets was also floated during the meeting. Meanwhile in France, Francois Hollande's tax increases are being met with disdain as businesses refuse to invest in a rising tax environment. This is contrary to Hollande's plans to grow the economy by avoiding austerity. European equities bounced back from losses earlier in the week, rising across the board. The French CAC 40 added 1.42% while the Italian MIB rose 1.26% and the Euro Stoxx 50 climbed 1.24%. EURUSD popped back above the 1.29 handle to 1.2928.

Markets have been buzzing with rumors of further stimulus measures from China, but a turning point in inflation is tying the hands of policymakers. Cutting the reserve rate ratio for banks is not on the table especially with rising food prices as the government also tries to contain the housing market. One positive point is that reconciliation efforts are underway between Japan and China over the Senkaku Islands. This is highly relevant as bilateral trade is estimated at $340 billion. Optimism over U.S. employment is also buoying equity indices as the Hang Seng strengthens 0.50% followed by a 0.16% rise in the Australian ASX. The Nikkei is marginally weaker, falling -0.07%. The yen is also weakening, with USDJPY climbing to 78.380. NZDUSD is outperforming, adding 0.23%.

U.S. jobless claims surprised markets following last week's improved unemployment number. Initial jobless claims fell to a four year low and beat even the most optimistic of analyst expectations. Although seasonal adjustments are expected to be a factor in the results, this could mark a significant turning point in the U.S. economy. One important point though, was that a major state did not report claims in the latest data which could have affected the headline figure. Equity indices were mostly lower, as the Dow Jones declined -0.14% trailed by a -0.08% drop in the Nasdaq. The S&P 500 outperformed peers, rising a meager 0.02%. Gold rose modestly to $1770.70 while WTI crude oil continues to march higher, trading at $92.24 per barrel. No major economic data is expected today.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id