Yen Drops This Week as Japan’s Inflation Slows, Output Declines

The yen posted its first weekly decline against the dollar in two months as Japan’s inflation slowed and industrial production slumped, adding to bets the central bank will pump cash into the economy at a faster pace.

Japan’s currency depreciated for a third week versus the euro as Bank of Japan policy board member Hidetoshi Kamezaki said officials may consider “extraordinary steps” to improve access to funding for companies. The dollar fell for a fifth week against the euro as reports showed U.S. holiday-season spending declined.

“The economic outlook for Japan remains dark,” said Gareth Sylvester, senior currency strategist in San Francisco at HiFX Plc, a U.K.-based foreign-exchange brokerage firm, in an interview on Bloomberg Television. “That should be reflected in yen weakness.”

Japan’s currency fell 0.5 percent to 90.81 per dollar at 4:54 p.m. in New York, from 90.38 yesterday. It slid to 90.99 on Dec. 23, the weakest level since Dec. 15. The yen may decline to 92 per dollar in three weeks before strengthening to 85 in the first quarter of 2009, according to Sylvester. The yen fell 0.6 percent to 127.40 per euro from 126.67. The euro was little changed at $1.4023 from $1.4025.

The ruble declined to a record against the euro as Russia’s central bank extended devaluation to compensate for falling crude oil prices. The ruble dropped as much as 1.6 percent to 40.8931 per euro, the weakest level since the European currency was introduced in 1999. It touched a four-year low of 29.0577 against the dollar, dropping 19 percent since early August.

Weaker Pound

Sterling moved closer to parity with the euro yesterday, sliding to a record 97.32 pence. The pound was quoted at 96.03 pence and $1.4634 today.

The yen fell 1.7 percent this week versus the dollar, the first weekly decline since the five days ended Oct. 31, and weakened 2.5 percent versus the euro. Japan’s currency also slid 2.2 percent against the Australian dollar and 1.8 percent versus New Zealand’s currency. The U.S. dollar decreased 0.8 percent versus the euro from Dec. 19.

Japan’s consumer price index excluding fresh food rose 1 percent last month, after increasing 1.9 percent in October, the government said today in Tokyo. Factory output tumbled 8.1 percent in November from the previous month, the fastest pace in 55 years.

The central bank lowered the overnight lending rate on Dec. 19 to 0.1 percent from 0.3 percent, the second cut in two months, and decided to buy corporate debt for the first time to pump money into the ailing economy.

BOJ Policy

Room for cutting borrowing costs further is “limited,” and the bank’s next policy steps should focus on improving funding for companies and influencing longer-term borrowing costs, Kamezaki told reporters.

“Additional policy easing isn’t likely to focus on the benchmark rate,” Masafumi Yamamoto, head of foreign-exchange strategy for Japan at Royal Bank of Scotland Plc in Tokyo and a former BOJ currency trader, wrote in a research note today. “A sudden decline in the inflation rate could push nominal long- term yields lower and become a reason to sell the yen.”

Japan’s currency gained 28 percent against the euro and 23 percent versus the dollar this year as the global recession and $1 trillion in losses on mortgage-related securities worldwide prompted Japanese investors to sell higher-yielding assets and repatriate overseas earnings. It was on course for a 57 percent advance against the Australian dollar and a 67 percent increase versus the British pound.

Yen and Exports

The surge of the yen, which reached a 13-year high of 87.14 per dollar on Dec. 17, is amplifying the woes of exporters including Toyota Motor Corp., Honda Motor Co. and Sony Corp. Japan’s overseas sales declined a record 27 percent in November from a year earlier, the Finance Ministry reported on Dec. 22.

The yen may weaken as the drop reduces demand for the currency, according to Boris Schlossberg, director of foreign- exchange research in New York at GFT Forex, an online currency brokerage.

“Japan is really losing a lot of its ability to generate surplus from its trade,” said Schlossberg in an interview on Bloomberg Television. “That’s really changed the mind of the market as far as the safe-haven status of the yen goes.”

The U.S. greenback declined for the week against the euro as the recession led consumers to trim spending. U.S. retail sales fell as much as 4 percent this holiday season as consumers limited purchases to necessities, according to SpendingPulse.

“The dollar looks vulnerable and may fall by the middle of next year,” said Akifumi Uchida, deputy general manager of the marketing unit at Sumitomo Trust & Banking Co. in Tokyo. “The state of the U.S. economy suggests the dollar will weaken.” The dollar may reach its post-World War II low of 79.75 yen next year, he said.

Dollar May Decline to 84 Yen, Bank of Tokyo-Mitsubishi UFJ Says

The dollar may fall to around 84 yen based on trading patterns, according to Masashi Hashimoto, a currency analyst at Bank of Tokyo-Mitsubishi UFJ Ltd. in Tokyo.

The currency may weaken to 84 yen on a decline below so- called support at the five-day moving average of 90.27 yen, Hashimoto said. The currency also may extend its 19 percent loss against the yen this year after a failure to rise above so- called resistance at the 21-day moving average of 91.59. The greenback triggered a triangle formation in December that targets the 84 yen level, he said.

“The 21-day moving average has been weighing on dollar-yen since yesterday, so it may break below” 90.27 yen, Hashimoto said. “The target of the triangle that had been triggered is around 84 yen.”

The dollar traded at 90.42 yen as of 2:05 p.m. in Tokyo from 90.38 yen late in New York yesterday. The 84 yen level was last traded in July 1995. The U.S. currency reached a record low of 79.75 yen in April 1995.

In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Resistance is where sell orders may be clustered, while support is where there may be buy orders.

Holiday Sales in U.S. Fell as Much as 4%, SpendingPulse Says

U.S. retail sales fell as much as 4 percent this holiday season as consumers limited purchases to necessities and cut back on clothing, electronics and jewelry, according to SpendingPulse.

Spending figures are the lowest since MasterCard Advisors started tracking data in 2002 to provide the SpendingPulse service, said Michael McNamara, vice president of research and analysis. He estimates sales, excluding autos and gasoline, fell 2 percent to 4 percent from Nov. 1 through yesterday.

Consumers facing a recession, tightening credit and the highest unemployment rate in 15 years shortened their gift lists and spent less. Retailers including Macy’s Inc. and AnnTaylor Stores Corp. responded by increasing markdowns, which stand to hurt profit margins in what may be the weakest holiday season in four decades.

“Overall this has been one of the most challenging holiday seasons on record,” McNamara said today in an interview.

The SpendingPulse figures follow forecasts of falling sales from other industry groups. Sales at stores open at least a year may drop as much as 2 percent in November and December, the International Council of Shopping Centers said on Dec. 23, more than the previously projected 1 percent decline.

Apparel, Luxury

From Nov. 1 through Dec. 24, women’s clothing sales dropped 23 percent and men’s fell 14 percent, according to SpendingPulse.

Combined electronics and appliance sales tumbled 27 percent, with purchases over $1,000 suffering the most, according to SpendingPulse data. Luxury sales, including jewelry, plunged 35 percent, the data showed.

Purchases over the Internet fared better, with a 2.3 percent decline. E-commerce may have been helped by inclement weather at the end of the holiday shopping season, McNamara said. Historically Web sales have posted 15 percent to 20 percent year- over-year sales gains.

The SpendingPulse data service calculates its sales estimates based on MasterCard Inc. network transactions and adjusts for cash, checks and other payment forms. MasterCard is the world’s second-biggest credit-card company.

Deeper Recession

The U.S. economy shrank in the third quarter at a 0.5 percent annual pace, the worst since 2001, according to the Commerce Department. Consumer spending fell the most in almost three decades and forecasters project an even deeper slump in the final three months of this year. Jobless claims rose yesterday to a 26-year high.

Retail sales declined 5.3 percent Dec. 19 to 21 because of inclement weather and a slowing U.S. economy, Chicago-based research firm ShopperTrak RCT Corp. said yesterday in a statement.

“It’s a terribly challenging environment for retailers,” Scott Krugman, a spokesman for the National Retail Federation, a Washington-based trade group, said in a Dec. 24 Bloomberg Television interview. “The week after Christmas is going to be more crucial for retailers than ever. The Friday after Christmas, with the discounts we’re hearing about, is going to be like another Black Friday.”

The Standard & Poor’s 500 Retailing Index has shed 34 percent this year, with only two of its 27 companies gaining.

The index doesn’t include Wal-Mart Stores Inc., the world’s largest retailer, which rose 15 cents to $55.44 yesterday in New York Stock Exchange composite trading. Wal-Mart shares have gained 17 percent this year.

The U.S. stock market was closed today for the Christmas holiday.

USD Slumps as Oil Spikes

The dollar tumbled across the board in the Thursday session on the heels of a rally in oil, which jumped to its highest level in 2 ½-weeks to $121.94 per barrel. The spike higher in crude prices was prompted by a combination of heightened geopolitical uncertainty stemming from Russia's decision to halt cooperation with NATO and warnings that Saudi Arabia may scale back its recent increase in production amid declining prices. The move higher in oil sent the greenback lower, falling near the 1.49-level against the euro and 108.10 versus the yen.

The US economic reports released today saw improvements in both weekly jobless claims and the Philadelphia Fed manufacturing survey. Weekly jobless claims improved to 432k, down from 450k a week earlier. Meanwhile, the Philadelphia Fed manufacturing survey was better than expected at -12.7 in August, versus calls for an improvement to -14.0 from -16.3 in the previous month. The July leading indicators deteriorated to -0.7%, compared with -0.1% from June.

Traders will look ahead to tomorrow's speech by Fed Chairman Ben Bernanke slated for 10:00 AM. His speech will be closely scrutinized for hints on future policy moves and any indications of support for troubled Fannie Mae and Freddie Mac.

GBP Bounces on USD Weakness

Cable rallied to 1.8780 amid weakness in the greenback. The sterling rally will likely be short-lived particularly heading into the Friday session with the 2nd release of UK GDP due out. The data are seen revealing further downward revisions to the growth rate of the UK economy in Q2, down to 0.1% from 0.2% in the previous quarter and at 1.5% versus 1.6% in the year prior. The sluggish figures will likely reinforce sentiment that the UK economy is headed toward a recession and that the Bank of England's next move may be a rate cut. The recently released minutes from the BoE's last meeting offered a dovish stance, acknowledging that inflation momentum may have eased given lower oil and commodity prices. We expect the sterling to continue to extend losses, with our interim target at 1.84.

USD Eases on Data, Oil

The dollar continued to relinquish its gains versus the majors in Tuesday trading, falling to 1.4791 against the euro and giving back the 110-handle versus the yen. Rebounding oil and commodity prices, combined with more evidence of deterioration in the US housing market prompted further profit taking in the greenback. Crude oil edged up to a session high of 116.12 but closed at 114.31 while spot gold recovered above the $800-level to $810/oz.

The economic reports released earlier in the session saw housing starts slump by 11% to 965k units for July, down from 1.066mln units a month prior. Building permits reversed the16.4% increase from June, sinking by 17.7% to its lowest level in 17-years at 937k units, down sharply from 1.138mln units previously. Meanwhile, producer prices firmed in July as core PPI increased to 0.7% up from 0.2% a month earlier and 3.5% compared with 3.0% from the previous month. Headline producer prices shot up to 9.8% versus 9.2% from a year earlier.

The next batch of US data are slated for release on Thursday, including weekly jobless claims, leading indicators, and the Philadelphia Fed manufacturing survey. Weekly jobless claims are seen easing slightly to 433k, down from 450k, while July leading indicators are estimated to worsen to -0.2% from -0.1%. The Philadelphia Fed manufacturing survey is expected to improve to -14.0, from -16.3 from July.

JPY Recovers Despite BoJ

The yen regained footing against the dollar, recovering to a session high at 109.53 despite a bleak outlook from the Bank of Japan. The BoJ, as expected, left monetary policy unchanged. However, in the Bank¡¯s economic outlook, it described the economy as ¡°sluggish¡± with BoJ Governor Shirakawa adding that ¡°the timing of an economic recovery is likely to be delayed slightly longer than initially expected¡±. The economic assessment was also downgraded to ¡°weakening¡± by the Cabinet Office, stressing that ¡°attention should be given to further downside risks that could stem from developments in the US economy, the stock and currency exchange markets and oil prices¡±.

USDJPY trades near 109.70, with support seen at 109.50, followed by 109 and 108.50. Subsequent floors will emerge at 108, followed by 107.70 and 107.45. On the topside, interim resistance starts at 110, followed by 110.30 and 110.70. Additional ceilings will emerge at 111 and 111.50.

GBP Pounded by Inflation Report

The greenback relinquished some of its recent gains against the majors, slipping to 108.39 against the yen and 1.4978 versus the euro. Nonetheless, the dollar continues to benefit from the sharp retreat in oil and commodities prices. In the coming session, traders will look ahead to retail sales for July, which are expected to fall by 0.1% reversing the 0.1% increase a month earlier while the excluding automobiles reading is seen lower at 0.5% from 0.8%.

Sterling Pounded by Inflation Report

The pounded fell sharply following the release of the Bank of England’s inflation report, selling off to its lowest level since November 2006 at 1.8867. Further, UK futures markets immediately priced in a 60% probability for a December BoE rate cut, versus a 10% chance prior to the release. The Bank’s inflation report highlighted the growing risks for a possible recession, stating that risks to GDP are on the downside, with the slowdown sharper than seen in May. While it added that inflation risk remains to the upside, it expects CPI to be below the 2% target in two years if interest rates hold steady at 5%. As such, the next rate move by the Bank of England will more likely be a cut rather than a hike in order to jumpstart the lackluster UK economy.

The jobs report from the UK released earlier bodes poorly for the economy with the unemployment claimant count shooting up to its highest level in 15-years at 20.1k in July versus an upwardly revised 20k reading from June. The ILO unemployment rate also rose by more than expected at 5.4% in June, up from 5.2% a month earlier.

Yen Advances Despite Data

The yen recovered against the majors, rising to 108.39 versus the dollar and 161.62 against the euro. However, data released earlier in the Tokyo session revealed a larger than anticipated contraction in economic growth as Q2 GDP fell by 2.4% compared with 4.0% growth a year earlier and down 0.6% versus 1.0% growth in the previous quarter. The report reinforces sentiment expressed by government officials last week, raising fears that a recession may be looming for Japan.

Amid widespread losses in the global equity bourses, traders unwound the carry trades – prompting the euro/yen pair to sell-off to its lowest level since May 13th at 161.62. EURJPY has since recovered back above the 162-handle with interim resistance seen at 163, followed by 163.30 and 163.75. Additional ceilings will emerge at 164, backed by 164.40 and 164.80. On the downside, support begins at 162.20, followed by 162 and 161.60. Subsequent floors are eyed at 161.30, followed by 161 and 160.50.

U.K. Retail Business Administrations Fall by 30%, Deloitte Says

July 30 (Bloomberg) -- The number of U.K. retail businesses placed in administration in the first half of 2008 has fallen by 30 percent as the worst effects of competition from Internet sales subsides, research by Deloitte & Touche LLP shows.

Book, music, DVD, gift and toy retailers contributed to the change, the business advisory company said today in an e-mailed statement. Administration figures are generally ``skewed'' toward smaller businesses, Deloitte said. Administration in the U.K. is a procedure for troubled companies, comparable to Chapter 11 in the U.S.

Clothing, fashion and cosmetics companies had a 21 percent increase in administrations, the only sector to have a rise.

``The drop-off in figures in these sectors this year shows that the worst effects of this maturing market may have been felt,'' Lee Manning, a spokesman for Deloitte said in the statement. ``We would expect furniture and household-related retailers to experience an increase in failures next quarter.''

FX Consolidates ahead of Key Data Week

The foreign exchange market consolidated at the start of the week amid little fresh economic data for traders to digest. The dollar was mixed early in the New York session, edging up slightly toward 1.5735 against the euro while easing off its overnight high versus the yen just above the 108-level to 107.56. A barrage of key US economic reports are due out this week , providing markets with further insight on the state of the economy as well as enable traders to better assess the prospects for a Fed rate hike over the coming months.

In an interview with the Financial Times, Minneapolis Fed President Stern offered a somber assessment for the US economic outlook, expressing his view that the fallout from the credit crunch would continue to weigh on the economy “over the next year or more”. He said the worst has yet to pass, adding that “the headwinds” may be gaining impetus. Stern also highlighted the quandary facing the Fed in deliberating policy as he stressed increased uncertainty over inflation, describing headline inflation as “rapid”.

The Fed meets to deliberate monetary policy next Tuesday with no change in rates expected. The Fed’s outlook for the economy has deteriorated somewhat since the June meeting, highlighted by Chairman Bernanke’s Congressional testimony two weeks ago in which he expressed concern over the “significant downside risks to the outlook for growth”, which also marked a shift from the previous policy statement. While it remains clear the Fed is stuck between a rock and a hard place, the recent sharp declines in oil and commodities have provided some respite in burgeoning inflationary fears but persistently soft economic figures continue to point toward further deterioration in economic fundamentals – which downplays the likelihood for the FOMC to tighten policy in the near-term.

US data in focus

Traders will closely scrutinize the data releases this week, which pick up tomorrow with the Conference Board’s consumer confidence survey and is expected to drift to 50 in July, down from 50.4 in June. On Wednesday, the July ADP private sector payrolls are seen improving to reveal a loss of 55k jobs versus a loss of 79k jobs in June.

The key pieces of data are slated for release in the latter half of the week, with Q2 GDP and Chicago PMI due out on Thursday. Friday will see the July labor report and manufacturing ISM. The advanced reading for Q2 GDP is expected to improve to 2.0% from 1.0% in the previous quarter while the employment cost index is seen unchanged at 0.7%. Meanwhile, Chicago PMI is seen remaining beneath the key 50-level for the sixth consecutive month at 49.0 in July from 49.6 a month earlier. Friday’s manufacturing ISM will also reflect similar contraction, with the July figure at 49.6 versus 50.2 from June.

Consensus estimates for the July labor report bode poorly for the greenback with calls for the unemployment rate to creep up to 5.6% from 5.5% a month earlier. The data is also seen revealing a loss of 65k in jobs, extending June’s loss of 62k jobs.

Dollar Snaps Two-Day Drop on Rising Bets for Fed Rate Increase

By Bo Nielsen and Ye Xie

May 22 (Bloomberg) -- The dollar snapped two days of declines against
the euro, rallying from the lowest level in a month, as traders added
to bets the Federal Reserve will raise interest rates by year-end and
oil retreated.

The U.S. currency also gained versus the yen after minutes of the
Fed's April meeting yesterday showed most policy makers viewed the cut
in the target rate to 2 percent as ``a close call,'' indicating the
central bank has gone on hold to stem inflation. The New Zealand
dollar rose against all of the major currencies after tax cuts reduced
the need to lower rates.

``The Fed is telling us to not think in terms of easing,'' said Alan
Ruskin, head of international currency strategy at RBS Greenwich
Capital Markets in Greenwich, Connecticut. ``That is the most
important feature behind the dollar comeback today.''

The U.S. currency strengthened to $1.5710 per euro as of 12:18 p.m. in
New York, from $1.5795 in New York yesterday. It earlier touched
$1.5814, the lowest level since April 24. The dollar rose to 104.03
yen, from 103.05 yen. The euro traded at 163.43 yen, up from 162.76
yen.

The dollar extended its gains as the price of crude oil fell to
$131.85 after surpassing $135 earlier. A decline in the price of oil
can lighten the financial burden on consumers.

U.S. house prices fell less than expected in the first quarter. The
Office of Federal Housing Enterprise Oversight said its house price
purchase index declined 0.2 percent, after rising 0.3 percent the
previous quarter. The median forecast in a Bloomberg News survey of 13
economists was for a drop of 1.3 percent.

Kiwi Climbs

The New Zealand dollar rose after Finance Minister Michael Cullen cut
taxes, easing pressure on the central bank to lower interest rates to
support the economy. The kiwi, as it is known, climbed to 78.96 U.S.
cents, the highest level since May 7, before trading at 78.46 cents,
from 77.70 yesterday.

The Australian dollar yesterday touched the highest since being
allowed to trade freely in 1983 as investors sought the nation's
higher-yielding debt. The currency, which climbed to as high as 96.54
U.S. cents yesterday, was at 95.51 cents today, from 96.25. The Aussie
has risen about 10 percent this year, the second-biggest gain among
the 16 most-traded currencies.

The Aussie will climb to equal value with the U.S. currency for the
first time since 1982 as the central bank considers raising interest
rates, say banks that include RBC Capital Markets Inc. and ABN Amro
Holding NV.

Interest-Rate Bets

Futures on the Chicago Board of Trade show traders see a 92 percent
likelihood the Fed will keep its target rate for overnight lending
between banks at 2 percent on June 25, up from odds of 88 percent
yesterday. Traders also see a 32 percent probability the Fed will lift
the rate in September to 2.25 percent, up from a 21 percent chance
yesterday.

``The Fed has a more balanced view on inflation and growth,'' said
Matthew Strauss, a senior currency strategist at RBC Capital Markets
in Toronto, a unit of Canada's biggest bank by assets. The dollar
decline has ``lost momentum.''

The dollar has fallen 2 percent against the euro since May 8, after
European Central Bank President Jean-Claude Trichet said inflation
remains the bank's top priority. That signaled policy makers won't cut
the 4 percent benchmark interest rate soon.

The dollar advanced to $1.9786 against the British pound, from
$1.9732, and was at 1.0324 versus the Swiss franc, from 1.0250.

The Dollar Index traded on ICE futures in New York, which tracks the
dollar against currencies of six trading partners, rose to 72.231,
from 71.938 yesterday.

Downgraded Estimate

Gains for the dollar may be limited as the market starts to focus on
the Fed's downgrade of its 2008 economic growth estimate, which
accompanied the minutes yesterday, wrote Derek Halpenny, head of
currency research at Bank of Tokyo-Mitsubishi in London, in a note to
clients today.

The central bank cut its growth projections to a range of 0.3 percent
to 1.2 percent from its January forecast of 1.3 percent to 2 percent.
The Fed's interest-rate reductions this year, a total of 2.25
percentage points, were the most aggressive in almost two decades.

``We expect the dollar to remain under selling pressure as market
participants' optimism over a notable upturn in economic activity
gradually fades,'' Halpenny wrote.

The euro climbed versus the dollar yesterday after German business
confidence unexpectedly rose, bolstering speculation the ECB won't cut
interest rates. Germany is the biggest economy in the euro region.

Charts

The European single currency may rise to $1.5850 against the dollar in
one week, based on charts used to predict price movements, said
Masashi Hashimoto, a senior currency analyst at Bank of
Tokyo-Mitsubishi UFJ Ltd.

The currency has held above so-called support at the five- and 21-day
moving averages of $1.5663 and $1.5553, respectively, signaling
further gains in the near term, Tokyo-based Hashimoto said. Support is
where buyers are expected to outweigh sellers.

Buoyed by gains in the Standard & Poor's 500 Index, the yen fell 2.2
percent against the New Zealand dollar and 1.8 percent against the
South African rand. The two currencies are popular in the so-called
carry trade in which investors borrow money cheaply to invest in
assets where rates are higher.

The Japanese borrowing cost of 0.5 percent compares with 11.5 percent
in South Africa and 8.25 percent in New Zealand. The allure of the
trade falls when currency volatility rises as it jeopardizes returns
on the interest rate spread. The S&P rose 0.1 percent after two days
of decline.

Dollar Snaps Two-Day Drop on Rising Bets for Fed Rate Increase

By Bo Nielsen and Ye Xie

May 22 (Bloomberg) -- The dollar snapped two days of declines against the euro, rallying from the lowest level in a month, as traders added to bets the Federal Reserve will raise interest rates by year-end and oil retreated.

The U.S. currency also gained versus the yen after minutes of the Fed's April meeting yesterday showed most policy makers viewed the cut in the target rate to 2 percent as ``a close call,'' indicating the central bank has gone on hold to stem inflation. The New Zealand dollar rose against all of the major currencies after tax cuts reduced the need to lower rates.

``The Fed is telling us to not think in terms of easing,'' said Alan Ruskin, head of international currency strategy at RBS Greenwich Capital Markets in Greenwich, Connecticut. ``That is the most important feature behind the dollar comeback today.''

The U.S. currency strengthened to $1.5710 per euro as of 12:18 p.m. in New York, from $1.5795 in New York yesterday. It earlier touched $1.5814, the lowest level since April 24. The dollar rose to 104.03 yen, from 103.05 yen. The euro traded at 163.43 yen, up from 162.76 yen.

The dollar extended its gains as the price of crude oil fell to $131.85 after surpassing $135 earlier. A decline in the price of oil can lighten the financial burden on consumers.

U.S. house prices fell less than expected in the first quarter. The Office of Federal Housing Enterprise Oversight said its house price purchase index declined 0.2 percent, after rising 0.3 percent the previous quarter. The median forecast in a Bloomberg News survey of 13 economists was for a drop of 1.3 percent.

Kiwi Climbs

The New Zealand dollar rose after Finance Minister Michael Cullen cut taxes, easing pressure on the central bank to lower interest rates to support the economy. The kiwi, as it is known, climbed to 78.96 U.S. cents, the highest level since May 7, before trading at 78.46 cents, from 77.70 yesterday.

The Australian dollar yesterday touched the highest since being allowed to trade freely in 1983 as investors sought the nation's higher-yielding debt. The currency, which climbed to as high as 96.54 U.S. cents yesterday, was at 95.51 cents today, from 96.25. The Aussie has risen about 10 percent this year, the second-biggest gain among the 16 most-traded currencies.

The Aussie will climb to equal value with the U.S. currency for the first time since 1982 as the central bank considers raising interest rates, say banks that include RBC Capital Markets Inc. and ABN Amro Holding NV.

Interest-Rate Bets

Futures on the Chicago Board of Trade show traders see a 92 percent likelihood the Fed will keep its target rate for overnight lending between banks at 2 percent on June 25, up from odds of 88 percent yesterday. Traders also see a 32 percent probability the Fed will lift the rate in September to 2.25 percent, up from a 21 percent chance yesterday.

``The Fed has a more balanced view on inflation and growth,'' said Matthew Strauss, a senior currency strategist at RBC Capital Markets in Toronto, a unit of Canada's biggest bank by assets. The dollar decline has ``lost momentum.''

The dollar has fallen 2 percent against the euro since May 8, after European Central Bank President Jean-Claude Trichet said inflation remains the bank's top priority. That signaled policy makers won't cut the 4 percent benchmark interest rate soon.

The dollar advanced to $1.9786 against the British pound, from $1.9732, and was at 1.0324 versus the Swiss franc, from 1.0250.

The Dollar Index traded on ICE futures in New York, which tracks the dollar against currencies of six trading partners, rose to 72.231, from 71.938 yesterday.

Downgraded Estimate

Gains for the dollar may be limited as the market starts to focus on the Fed's downgrade of its 2008 economic growth estimate, which accompanied the minutes yesterday, wrote Derek Halpenny, head of currency research at Bank of Tokyo-Mitsubishi in London, in a note to clients today.

The central bank cut its growth projections to a range of 0.3 percent to 1.2 percent from its January forecast of 1.3 percent to 2 percent. The Fed's interest-rate reductions this year, a total of 2.25 percentage points, were the most aggressive in almost two decades.

``We expect the dollar to remain under selling pressure as market participants' optimism over a notable upturn in economic activity gradually fades,'' Halpenny wrote.

The euro climbed versus the dollar yesterday after German business confidence unexpectedly rose, bolstering speculation the ECB won't cut interest rates. Germany is the biggest economy in the euro region.

Charts

The European single currency may rise to $1.5850 against the dollar in one week, based on charts used to predict price movements, said Masashi Hashimoto, a senior currency analyst at Bank of Tokyo-Mitsubishi UFJ Ltd.

The currency has held above so-called support at the five- and 21-day moving averages of $1.5663 and $1.5553, respectively, signaling further gains in the near term, Tokyo-based Hashimoto said. Support is where buyers are expected to outweigh sellers.

Buoyed by gains in the Standard & Poor's 500 Index, the yen fell 2.2 percent against the New Zealand dollar and 1.8 percent against the South African rand. The two currencies are popular in the so-called carry trade in which investors borrow money cheaply to invest in assets where rates are higher.

The Japanese borrowing cost of 0.5 percent compares with 11.5 percent in South Africa and 8.25 percent in New Zealand. The allure of the trade falls when currency volatility rises as it jeopardizes returns on the interest rate spread. The S&P rose 0.1 percent after two days of decline.

Euro Down Against Pound, Higher Versus Rest Of Majors [EUR/USD]

Euro Down Against Pound, Higher Versus Rest Of Majors [EUR/USD]
Thursday morning, the European currency showed mixed trading against its major counterparts. The euro was higher against the greenback, the franc and the yen but was down against the sterling.

US Dollar Drops To New Multi-year Low Versus Czech Koruna [USD/CZK]
Thursday morning, the US dollar showed weakness against most of its East European counterparts. The greenback declined to new multi-year low versus the Czech koruna, while it hit new multi-day lows against the Estonian, Slovakian and Hungarian counterparts.

FTN Finacial: Jobless Claims Near Dangerous Range []
FTN Financial's Lindsey Piegza commented on Thursday that US initial jobless claims were reported at 349k this morning, down slightly from the previous week which was revised up to 358k. The 4-week moving average has moved from 350k to 360k.

Aussie Eases From 2-day High Against Yen [AUD/JPY]
In early European deals on Thursday, the Australian dollar traded down against its major counterparts. The Aussie eased from a 2-day high hit in early deals against the yen.

Swiss Currency Mostly Mixed On Thursday [USD/CHF]
The Swiss franc was mixed against its world counterparts on Thursday morning in New York. The currency moved as watch export data was released from the area.

Buck Sets 2-day Low Versus Russian Ruble [USD/RUB]
The US dollar edged down against its Russian counterpart in early deals on Thursday. The pair hit a 2-day low of 24.5178 by about 4:50 am ET, compared to yesterday's New York close of 24.5948. Currently the dollar-Ruble pair is worth 24.53.

Chinese Yuan Sets New Highs Against Greenback [USD/CNY]
The Chinese Yuan strengthened against its US counterpart in early deals on Thursday. At about 4:55 am ET, the Yuan hits 7.1420 against the buck, which set a fresh record high for the former.

US Dollar Edges Down Against Hong Kong Currency [USD/HKD]

US Dollar Edges Down Against Hong Kong Currency [USD/HKD]
The US dollar edged down against the Hong Kong dollar Monday during early deals. The pair remained range-bound around 7.806 in Asian deals today, but the Hong Kong currency gained ground in early European hours. The greenback is now worth 7.8036 Hong Kong dollars.

European Markets Fall, Led By Food And Beverage Stocks - European Commentary []
The European markets fell on Friday, as shares of food and beverage companies dropped after analysts warned that slowing consumer spending and higher commodity prices would hurt the sectors' earnings.

New Zealand Shares Look To Rebounc []
New Zealand Stocks open the week looking to avoid the down-side lead-in provided by Wall Street.

China Market Due For Correction []
Bucking the global trend, the China stock market has now finished higher in seven of eight sessions in 2008 - but the volatility in Friday's session suggests that the Shanghai Composite Index might be in for a minor correction when the market opens for business on Monday.

More Record Territory For Malaysian Stocks? []
The Malaysian stock market has posted record closes in each of its last five sessions, and analysts say that the potential for more upside remains as the Kuala Lumpur Composite Index prepares to kick off trade on Monday. The KLCI advanced more than 3 percent in four trading days last week.

Pound Extends Weakness Against Majors [GBP/USD]
The British sterling extended its weakness against its major counterparts by about 7.47 am ET. As of now, the pound is trading near 0.7596 against the euro, 2.1414 against the Swiss franc and 1.9599 against the US dollar.

Support Seen For Thai Market []

Support Seen For Thai Market []
The Thai stock market saw its modest two-day winning streak grind to a halt Thursday as the market dipped perilously close to the critical support level of 800 points. With positive global cues, the Stock Exchange of Thailand is expected to rebound, albeit in a tight range, when the SET opens for business on Friday.

New Zealand Shares Look For Week-Ending Rebound []
New Zealand shares look to close the week with a rebound off of another up-side lead from Wall Street.

Euro Mixed Versus Major Counterparts [EUR/USD]
The euro experienced mixed trading against the other major currencies Friday in New York. The euro reached a fresh all-time high versus the sterling but fell against the yen. Traders considered news that German wholesale prices rose less than expected last month.

Loonie Plunges To 4-week Low Versus Dollar As Oil Prices Fall, Canada Loses Jobs [USD/CAD]
The loonie plunged more than one Canadian cent versus the dollar Friday morning in New York, slipping to a 4-week low of 1.022 as the price of oil continued to pull back from its record highs.

European Markets Fall, Led By Retailers - European Commentary []
The European markets fell on Wednesday, as Marks & Spencer led retailers lower after reporting its first same-store sales decline in 2 1/2 years.

Swiss Franc Sees Little Direction Versus Pound [GBP/CHF]
In trading against its British counterpart on Friday, the Swiss franc saw little direction. By the mid morning, the franc had bounced between a low of 2.1615 and a high of 2.2106 versus the pound. In the UK, the Office for National Statistics stated that industrial production fell 0.1% in November, following a 0.5% growth registered in October.

Yen Advances Versus Pound And Euro [USD/JPY]
The yen rose against the euro and the sterling on Friday in New York but remained uncertain versus the greenback.

Australia Stocks Expected To Open Higher Off Wall Street Boost []
Australia stocks are poised to open higher on Friday, coming off of Wall Street's second straight day of triple-digit gains, and comments by Fed Chairman Ben Bernanke that make a U.S. interest rate reduction in January more likely.

More Record Territory For Malaysian Stocks? []
The Malaysian stock market has posted record closes in each of its last five sessions, and analysts say that the potential for more upside remains as the Kuala Lumpur Composite Index prepares to kick off trade on Monday. The KLCI advanced more than 3 percent in four trading days last week.

Stocks Remain Higher In Late Morning Trading - U.S. Commentary []

Stocks Remain Higher In Late Morning Trading - U.S. Commentary []
While they are well off their highs posted earlier in the day, stocks remain higher in late-morning trading on Wednesday. Concerns abound on the state of the economy and investors remain cautious going into earnings season. Today's gains are most likely coming from bargain hunters, as they buy up downtrodden tech stocks.

European Markets Fall, Led By Food And Beverage Stocks - European Commentary []
The European markets fell on Friday, as shares of food and beverage companies dropped after analysts warned that slowing consumer spending and higher commodity prices would hurt the sectors' earnings.

Indian Market Opens Sharply Higher []
Thursday, Indian shares opened sharply higher despite mixed cues from global markets. At 10:00 a.m. IST, the benchmark Sensex was up 180 points at 21,050 and the broader Nifty was adding 28 points to 6,300.

Dollar Holds Steady Versus Real Amid Release Of Brazilian Consumer Price Data [USD/BRL]

Dollar Holds Steady Versus Real Amid Release Of Brazilian Consumer Price Data [USD/BRL]
The greenback extended its run of choppy dealing versus the Brazilian real Friday morning in New York amid the release of data showing that Brazil's consumer prices rose in line with expectations in December.

European Markets To Open Lower Amid U.S. Recession Fears - European Commentary []
European futures are indicating a lower open as traders eye yet another fall in Asian equity prices and experts across the globe continue to worry about the state of the U.S. economy following Friday's disappointing jobs data.

Stocks Mixed In Late Morning Trading - U.S. Commentary []
In late-morning trading on Tuesday, stocks have pulled back off their highs after seeing earlier strength. The major averages have moved to the downside, with the Dow slipping into negative territory.

BMO Capital Examines US Trade Deficit Data []
Sal Guatieri of BMO Capital Markets Economics commented on Friday that the U.S. trade deficit increased the most in two years to a 14-month high of $63.1 billion in November, as soaring oil costs pumped imports 3.0%.

Stocks May Show A Lack Of Direction In Early Trading - U.S. Commentary []
After falling sharply in the latter part of the previous session, stocks may show a lack of direction in early trading on Wednesday. The major U.S. index futures are indicating a roughly flat open for the markets, as traders continue to express uncertainty about the outlook for the economy.

Stocks Close Higher After A Choppy Trading Session - U.S. Commentary []
Wall Street ended a choppy session on the positive side on Wednesday. The markets started the day positive, but moved below the unchanged line in late-morning trading. After trying to recover, the markets fell even further before changing course in the last two hours of the day.

US Stocks Poised For Modest Rebound Wednesday Morning After Slumping Into Correction Mode []
US stocks were set to open modestly higher on Wednesday morning after stocks plummeted into correction mode in the previous session.

Greenback Uncertain Versus Mexican Peso [USD/MXN]
The dollar traded in a range on Friday with the Mexican peso. The pair bounced between 10.9543 and 10.9146 through most of the day's trading. Investors considered a report released yesterday showing Mexican annual inflation jumped to a five-year high in December.

Weakness Persists On Wall Street On Mid-Afternoon Trading - U.S. Commentary []

Weakness Persists On Wall Street On Mid-Afternoon Trading - U.S. Commentary []
Wall Street continues to see considerable weakness in mid-afternoon trading on Friday. The major averages have remained below the unchanged line throughout the day thus far after closing higher in the two previous sessions.

Dollar Pauses Versus Majors On Friday [EUR/USD]
The greenback showed a lack of direction versus its major counterparts on Friday as investors weighed data showing that the US trade deficit widened more than economists had expected.

Stocks Turning In A Lackluster Performance In Early Trading - U.S. Commentary []
Stocks moved modestly higher at the start of trading on Wednesday, with the major averages edging back to the upside after ending the previous session at multi-month closing lows. Nonetheless, buying interest remained relatively subdued in the first few minutes of trading.

Loonie Falls For Sixth Consecutive Day Versus Greenback [USD/CAD]
The loonie fell for a sixth day in a row on Thursday against the greenback, as statistics showed Canadian employment unexpectedly declined last month. The dismal jobs report fueled expectations that the Bank of Canada will lower interest rates for a second month on January 22.

Recession Worries Contribute To Continued Weakness On Wall Street - U.S. Commentary []
Stocks are seeing considerable weakness in afternoon trading on Wednesday, with the major averages falling to new lows for the day. Investors are increasingly concerned about the U.S. economy, as economists speculate about the possibility of a recession.

Stocks Mixed In Late Morning Trading - U.S. Commentary []
In late-morning trading on Tuesday, stocks have pulled back off their highs after seeing earlier strength. The major averages have moved to the downside, with the Dow slipping into negative territory.

Dollar Range-bound Versus Mexican Peso Friday Morning [USD/MXN]
The dollar was little changed versus the Mexican peso Friday morning in New York as traders weighed data showing that the US trade deficit widened more than economists had expected.

Pound Shows Some Weakness Versus Majors; Now Worth 1.9575 Against Buck [GBP/USD]
Pound shows some weakness versus majors; now worth 1.9575 against buck.

Stocks Close Higher After A Choppy Trading Session - U.S. Commentary []
Wall Street ended a choppy session on the positive side on Wednesday. The markets started the day positive, but moved below the unchanged line in late-morning trading. After trying to recover, the markets fell even further before changing course in the last two hours of the day.

Stocks Seeing Notable Weakness In Mid-Morning Trading - U.S. Commentary []
Stocks have been trading mostly in negative territory throughout the first ninety minutes of Thursday's session amid concerns of a worsening economy. The losses come after choppy trading day in the previous session that ended with strong gains.

Japanese Market Falls On Economic Growth Concerns []

Japanese Market Falls On Economic Growth Concerns []
Tokyo shares fell Thursday on selling in real estate and shipbuilding stocks amid concern about a slowdown of Japanese economy. The market declined after a senior central bank official said that the pace of Japan's economic growth was slowing due to a big drop in housing investment.

Market Likely To Open Flat On Back Of Mixed Cues From Global Peers - Indian Commentary []
Thursday, the Indian market is likely to open flat on the back of mixed cues from global peers. The U.S. stocks rebounded Wednesday on bargain hunting in financial and technology stocks. The major Asian markets are trading mixed on Thursday. Crude oil prices have eased after gasoline stocks rose, making up for a decline in crude oil inventories.

Yen Advances Versus Pound And Euro [USD/JPY]
The yen rose against the euro and the sterling on Friday in New York but remained uncertain versus the greenback.

European Markets Rise; Led By Miners, Drugmakers - European Commentary []
The European markets rose on Tuesday, as mining stocks gained on higher copper prices, while pharmaceutical and telecom stocks rallied as investors sought out perceived safe-havens for their investments amid economic fears.

Support Seen For Thai Market []
The Thai stock market saw its modest two-day winning streak grind to a halt Thursday as the market dipped perilously close to the critical support level of 800 points. With positive global cues, the Stock Exchange of Thailand is expected to rebound, albeit in a tight range, when the SET opens for business on Friday.

Stocks May Show A Lack Of Direction In Early Trading - U.S. Commentary []

Stocks May Show A Lack Of Direction In Early Trading - U.S. Commentary []
After falling sharply in the latter part of the previous session, stocks may show a lack of direction in early trading on Wednesday. The major U.S. index futures are indicating a roughly flat open for the markets, as traders continue to express uncertainty about the outlook for the economy.

Stocks Turning In A Lackluster Performance In Early Trading - U.S. Commentary []
Stocks moved modestly higher at the start of trading on Wednesday, with the major averages edging back to the upside after ending the previous session at multi-month closing lows. Nonetheless, buying interest remained relatively subdued in the first few minutes of trading.

European Stock Traders Eye Gains In Asia, Disappointing U.K. Retail News - European Commentary []
European equity markets will open with bullish news from Asia for the first time in four days as the major Asian indices rose overnight following several days of declines.

US Dollar Falls To New Multi-year Low Against Chilean Peso [USD/CLP]
The US dollar fell against the Chilean peso in early New York trading on Friday. At about 9:05 am ET, the greenback, touched a new multi-year low of 478.25, compared to yesterday's close of 482.85. As of now, the dollar-peso pair is worth 479.75.

Stocks Lower In Early Afternoon Trading After Seeing Early Strength - U.S. Commentary []
Stocks have turned negative over the course of the trading session on Tuesday, with the major averages pulling back below the unchanged line after seeing some strength earlier in the session. The downturn reflected lingering uncertainty about the outlook for the economy.

Weakness Persists On Wall Street On Mid-Afternoon Trading - U.S. Commentary []
Wall Street continues to see considerable weakness in mid-afternoon trading on Friday. The major averages have remained below the unchanged line throughout the day thus far after closing higher in the two previous sessions.

Greenback Firms Versus Kiwi After Hitting Monthly Low [NZD/USD]
The dollar firmed up against its New Zealand counterpart in early afternoon dealing Friday after hitting a one-month low earlier in the session.

Stocks Showing A Lack Of Direction Following Bernanke's Comments - U.S. Commentary []
Continuing a recent trend, stocks have seen considerable volatility over the course of the trading session on Thursday. The major averages have had difficulty sustaining any significant moves as they digest comments from Federal Reserve Chairman Ben Bernanke.

Stocks Close Higher After A Choppy Trading Session - U.S. Commentary []
Wall Street ended a choppy session on the positive side on Wednesday. The markets started the day positive, but moved below the unchanged line in late-morning trading. After trying to recover, the markets fell even further before changing course in the last two hours of the day.

Market Likely To Open Flat On Back Of Mixed Cues From Global Peers - Indian Commentary []

Market Likely To Open Flat On Back Of Mixed Cues From Global Peers - Indian Commentary []
Thursday, the Indian market is likely to open flat on the back of mixed cues from global peers. The U.S. stocks rebounded Wednesday on bargain hunting in financial and technology stocks. The major Asian markets are trading mixed on Thursday. Crude oil prices have eased after gasoline stocks rose, making up for a decline in crude oil inventories.

Stocks Under Pressure Amid Renewed Credit Concerns - U.S. Commentary []

Stocks Under Pressure Amid Renewed Credit Concerns - U.S. Commentary []
Stocks are seeing significant weakness in morning trading on Friday, as concerns over the credit crunch continue to rattle investors. The drop in the markets comes after they closed strong in each of the two previous sessions.

Stocks Turning In A Lackluster Performance In Early Trading - U.S. Commentary []
Stocks moved modestly higher at the start of trading on Wednesday, with the major averages edging back to the upside after ending the previous session at multi-month closing lows. Nonetheless, buying interest remained relatively subdued in the first few minutes of trading.

Stocks May Give Back Some Ground In Early Trading - U.S. Commentary []
Stocks could see some weakness in early trading on Friday, with the major U.S. index futures indicating a lower open for the markets following the gains seen in the two previous sessions. The downward momentum is partly due to lingering concerns about the ongoing credit crisis.

European Markets Rise; Led By Miners, Drugmakers - European Commentary []
The European markets rose on Tuesday, as mining stocks gained on higher copper prices, while pharmaceutical and telecom stocks rallied as investors sought out perceived safe-havens for their investments amid economic fears.

Weakness Persists On Wall Street On Mid-Afternoon Trading - U.S. Commentary []
Wall Street continues to see considerable weakness in mid-afternoon trading on Friday. The major averages have remained below the unchanged line throughout the day thus far after closing higher in the two previous sessions.

European Markets Fall On U.S. Job Data - European Commentary []
The European markets fell sharply on Friday after a U.S. government report showed weaker than expected job growth and a much bigger than expected jump in the unemployment rate, raising concerns that the world's largest economy could be headed toward recession.

Market Likely To Open Higher On Positive Cues From Global Peers - Indian Commentary []

Market Likely To Open Higher On Positive Cues From Global Peers - Indian Commentary []
Friday, Indian shares are likely to open higher, tracking positive cues from global markets. Some degree of bargain hunting can also be anticipated following the sharp fall in late trade on Thursday.

European Markets Fall As ECB, BoE Hold Rates - European Commentary []
The European markets fell on Thursday after the European Central Bank and the Bank of England decided to leave benchmark rates unchanged, failing to allay concern that economic growth may slow.

Australia Stocks Expected To Open Higher Off Wall Street Boost []
Australia stocks are poised to open higher on Friday, coming off of Wall Street's second straight day of triple-digit gains, and comments by Fed Chairman Ben Bernanke that make a U.S. interest rate reduction in January more likely.

Japanese Market Slides To 26-Month Low On Renewed Subprime Worries []
Tokyo shares fell Friday to its lowest close since November 2005 amid fears about the Japanese economy and a report that Merrill Lynch will post larger than expected losses on the subprime mortgage crisis. The benchmark Nikkei 225 index closed down 277.32 points or 1.9% at 14,110.79.

Recession Fears Lead To Continued Weakness On Wall Street - U.S. Commentary []
Amid fears of an upcoming recession, stocks have stayed mostly in negative territory in late-morning trading on Thursday. Investors are jittery after several retailers reported disappointing same store sales for the month of December. Capital One Financial (COF) added to the nervousness by slashing their fourth quarter earnings forecast.

Japanese Market Falls On Economic Growth Concerns []
Tokyo shares fell Thursday on selling in real estate and shipbuilding stocks amid concern about a slowdown of Japanese economy. The market declined after a senior central bank official said that the pace of Japan's economic growth was slowing due to a big drop in housing investment.

European Markets To Open Lower Amid U.S. Recession Fears - European Commentary []
European futures are indicating a lower open as traders eye yet another fall in Asian equity prices and experts across the globe continue to worry about the state of the U.S. economy following Friday's disappointing jobs data.

European Markets Rise; Led By Miners, Drugmakers - European Commentary []
The European markets rose on Tuesday, as mining stocks gained on higher copper prices, while pharmaceutical and telecom stocks rallied as investors sought out perceived safe-havens for their investments amid economic fears.

Support Seen For Thai Market []
The Thai stock market saw its modest two-day winning streak grind to a halt Thursday as the market dipped perilously close to the critical support level of 800 points. With positive global cues, the Stock Exchange of Thailand is expected to rebound, albeit in a tight range, when the SET opens for business on Friday.

Stocks Turn In A Lackluster Performance Following Recent Weakness - U.S. Commentary []

Stocks Turn In A Lackluster Performance Following Recent Weakness - U.S. Commentary []
With little economic news to go on, stocks spent the day moving back and forth across the unchanged line on Monday. The choppy trading day saw some investors bargain hunting after the sharp decline on Friday, while other investors were setting their portfolios up for a recession.

Malaysian Stocks Open In Record Territory - Again []
After taking Thursday off for a public holiday, the Malaysian stock market is likely to pick up right where it left off on Friday after posting record closes in each of the four previous sessions. With broadly positive global cues, the Kuala Lumpur Composite Index is threatening the 1,500 point level.

Australian Market Declines On Weakness In Resources Sector []
Friday, Sydney shares were trading lower on weakness in the resources sector following a decline in commodity prices overnight. At 11:55 a.m. local time, the benchmark S&P/ASX 200 index was down 39.4 points or 0.6% at 6,039.3 and the broader-based All Ordinaries index was losing 39.3 points or 0.60% to 6,108.0.

Stocks On Pause Thursday Morning Ahead Of Bernanke Speech []
US stocks were poised for a lackluster start to Thursday's session as traders braced for a speech on the economy from Fed Reserve Chairman Ben Bernanke.

Stocks Move Back Near Unchanged Line - U. S. Commentary []
Wall Street remains negative in late morning trading on Monday, with the Nasdaq underperforming the Dow and the S&P 500 for a second session in a row. Investors started the trading day positive, but sentiment turned negative early on.

South Korean Market Rises On Wall Street Gains []

South Korean Market Rises On Wall Street Gains []
Thursday, Seoul shares were trading slightly higher, amid volatility, tracking Wall Street's overnight rebound on bargain hunting. The settlement of the options and futures contracts also weighed on market sentiment.

Indian Market Opens Flat []
Wednesday, Indian shares opened flat, tracking weak cues from global markets. At 10:04 a.m. IST, the benchmark Sensex was down 65 points at 20,807 and the broader Nifty was losing 19 points to 6,268.

Stocks On Pause Thursday Morning Ahead Of Bernanke Speech []
US stocks were poised for a lackluster start to Thursday's session as traders braced for a speech on the economy from Fed Reserve Chairman Ben Bernanke.

New Zealand Stocks Trade Weak []
Thursday, Wellington stocks were trading weak. The benchmark NZX 50 Index was losing 6.38 points or 0.16% to 3,905.78, while the NZX All Capital Index was declining 3.16 points or 0.08% to 3,970.67.

Stocks Seeing Considerable Strength In Mid-Morning Trading - U.S. Commentary []
Stocks are in positive territory in morning trading on Tuesday after a lackluster performance left the major averages mixed in the previous session. A variety of sectors have moved to the upside, with significant strength visible among resource stocks.

Stocks Come Under Pressure At The Start Of Trading - U.S. Commentary []
Stocks came under considerable selling pressure at the start of trading on Thursday, with the major averages moving back to the downside after showing a particularly strong upward move in the latter part of the previous session.

Stocks Mixed In Late Morning Trading - U.S. Commentary []
In late-morning trading on Tuesday, stocks have pulled back off their highs after seeing earlier strength. The major averages have moved to the downside, with the Dow slipping into negative territory.

New Zealand Shares Look For Week-Ending Rebound []
New Zealand shares look to close the week with a rebound off of another up-side lead from Wall Street.

Stocks Move Higher At The Start Of Trading - U.S. Commentary []
Stocks moved higher at the start of trading on Monday, with the major averages regaining some ground after falling sharply last week. Bargain hunting contributed to the initial upward move, with traders picking up stocks at reduced levels.

Loonie Weakens Versus Majors Amid November Economic Data [EUR/CAD]

Loonie Weakens Versus Majors Amid November Economic Data [EUR/CAD]
The Canadian dollar weakened against its major counterparts amid the release of the Canadian New Housing price data and Building permits data for the month of November The Canadian jobless claims down 15,000 to 322,000 and building permits fell 9.9% November.

More Gain Projected For Hang Seng []
The Hong Kong stock market closed higher Wednesday for just the second time in the last six sessions, but analysts have tipped the Hang Seng Index to continue its positive bounce when it kicks off trade on Thursday. In line with other regional gains, the Hang Seng could well regain 28,000 points.

South Korean Market Closes Sharply Lower []
Thursday, Seoul shares closed lower, amid volatility, on the day of settlement of options and futures contracts. The main index had gained more than 30 points in early trade, helped by Wall Street's rebound overnight on bargain-hunting. However, investor sentiment was impacted by Bank of Korea's decision to keep interest rate firm at 5.0%, concerns about domestic inflation and a global economic slowdown.

Japanese Market Falls On Economic Growth Concerns []
Tokyo shares fell Thursday on selling in real estate and shipbuilding stocks amid concern about a slowdown of Japanese economy. The market declined after a senior central bank official said that the pace of Japan's economic growth was slowing due to a big drop in housing investment.

Swiss Franc Strong Against Euro []
In trading against its European counterpart, the Swiss franc saw strength into Thursday morning action. The franc rose steadily to a mark of 1.6295 against the euro. The pair moved as the European Central Bank maintained its key interest rate at a six-year high of 4%.

Indian Market Opens Flat []
Wednesday, Indian shares opened flat, tracking weak cues from global markets. At 10:04 a.m. IST, the benchmark Sensex was down 65 points at 20,807 and the broader Nifty was losing 19 points to 6,268.

FTN Financial Examines Recent Jobless Claims []
Chris Low from FTN Financial commented on Thursday that initial claims for unemployment insurance fell by 15k in the holiday-shortened week ending January 5, a week that is typically volatile and difficult to seasonally adjust due to the New Year's holiday.

Dollar Falls To New Multi-year Low Against Chilean Peso [USD/CLP]
The US dollar fell against the Chilean peso in early deals on Thursday. Extending yesterday's downtrend, the US currency touched a multi-year low of 485.00 at about 7:25 am ET, compared to yesterday's close of 486.45. As of now, the dollar-peso pair is worth 485.35.

KOSPI Seen To Extend Gains []
The South Korean stock market rode a strong afternoon rebound Wednesday to snap a two-day losing streak, and analysts fully expect that bounce to continue positively when the KOSPI opens for business on Thursday. Trade is likely to remain volatile again, however, ahead of the settlement of futures contracts and the Bank of Korea's interest rate decision.

China Shares Close Higher, Led By Property Developers And Steelmakers []
Shanghai stocks closed higher Thursday, led by property developers and steelmakers. However, weakness in energy stocks, following a government announcement that it will hold electricity and fuel prices steady in the near term, capped gains. The benchmark Shanghai Composite Index closed up 20.73 points or 0.38% at 5,456.54.

Euro Moving Higher Against Swiss Franc [EUR/CHF]

Euro Moving Higher Against Swiss Franc [EUR/CHF]
the euro is advancing against the Swiss franc. The pair is trading at 1.6380, with the euro building on a rise that began in early afternoon New York Time, and breaking through short term resistance.

South Korean Market Slides Tracking Wall Street Slump []
Wednesday, Seoul shares were trading sharply lower, following an overnight plunge in U.S. markets. At 11:07 a.m. local time, the benchmark Korea Composite Stock Price Index or KOSPI was down 16.12 points or 0.88% at 1,810.10.

Amended: Market Likely To Open Lower On Weak Global Cues - Indian Commentary []
Amended: 'Asian Commentary' in headline corrected as 'Indian Commentary.'

US Dollar Gains To 2-day High Against Mexican Peso [USD/MXN]

US Dollar Gains To 2-day High Against Mexican Peso [USD/MXN]
The US dollar gained against the Mexican peso in early deals on Wednesday. Before hit a 2-day high of 10.9445 at about 9:00 am ET, the greenback slightly moved down in early European trading. As of now, the dollar-peso pair is worth 10.94.

Stocks Mixed In Late Morning Trading - U.S. Commentary []
In late-morning trading on Tuesday, stocks have pulled back off their highs after seeing earlier strength. The major averages have moved to the downside, with the Dow slipping into negative territory.

Stocks Turn Lower After Seeing Early Strength - U.S. Commentary []
After failing to sustain an early upward move, stocks have turned lower over the course of morning trading on Monday. The major averages have pulled back off their highs for the session and into negative territory.

Pound Declines Versus Other Major Currencies [GBP/USD]
The sterling fell against its major counterparts on Wednesday morning in New York, hitting an all-time low against the euro and a nine-month low versus the greenback. This came as investors weighed a report showing U.K. shop price growth slowed in December.

Market Likely To Consolidate At Current Levels On Mixed Cues From Global Peers - Asian Commentary []

Market Likely To Consolidate At Current Levels On Mixed Cues From Global Peers - Asian Commentary []
Tuesday, Indian shares are likely to consolidate at current levels on the back of mixed cues from global markets. Some degree of profit booking can also be expected following recent record gains. However, in intraday trading, the Sensex might touch the 21,000 mark.

Stocks May Move Higher In Early Trading - U.S. Commentary []
Stocks could see some strength in early trading on Tuesday, with the major U.S. index futures indicating a higher open for the markets following the lackluster performance that was seen throughout much of the previous session.

US Stocks Set To Snap Back Monday Morning - US Commentary []
US stocks were set to rebound from a dismal performance in the previous session Monday morning as the price crude extended its decline from last week's record highs.

Japanese Market Declines On Wall Street Losses []
Wednesday, Tokyo shares were trading sharply lower, tracking heavy losses on Wall Street overnight on the back of housing woes and U.S. economic conerns. At 10:41 a.m. local time, the Nikkei 225 index was down 106.04 points at 14,422.63 and the broader Topix index was down 10.84 points at 1,392.22.

China Market Due For Correction []
The four-day winning streak is over for the China stock market, and investors are bracing for a further correction when the Shanghai Composite Index opens for business on Wednesday. The SCI had finished higher every business day so far in 2008, picking up more than 120 points along the way.

Stocks Mixed In Late Morning Trading - U.S. Commentary []
In late-morning trading on Tuesday, stocks have pulled back off their highs after seeing earlier strength. The major averages have moved to the downside, with the Dow slipping into negative territory.

Stocks Turn In A Lackluster Session Ahead Of Employment Data - U.S. Commentary []
Stocks turned in a lackluster performance on Thursday, as investors looked ahead to the release of the Labor Department's Employment report on Friday. Investors were also jittery as the price of oil reached a new high, raising fears of increased inflation.

Stocks Turn Lower After Seeing Early Strength - U.S. Commentary []
After failing to sustain an early upward move, stocks have turned lower over the course of morning trading on Monday. The major averages have pulled back off their highs for the session and into negative territory.

Market Likely To Open Lower On Weak Global Cues - Asian Commentary []
Global cues are pointing towards a lower opening for the Indian market on Wednesday. Some degree of profit booking can also be expected following recent record gains. The U.S. stocks plunged Tuesday amid housing woes and discouraging news from AT&T.

Loonie Drops Further Versus Majors [EUR/CAD]

Loonie Drops Further Versus Majors [EUR/CAD]
The Canadian dollar further weakened against its major counterparts at about 3:26 pm Eastern Time on Tuesday. As of now, the loonie is trading as low as 108.70 against the Japanese yen, 1.4767 against the euro and 1.0037 versus the dollar.

Stocks Turn Lower After Seeing Early Strength - U.S. Commentary []
After failing to sustain an early upward move, stocks have turned lower over the course of morning trading on Monday. The major averages have pulled back off their highs for the session and into negative territory.

New Zealand Shares Get Soft Wall Street Lead []
New Zealand stocks are poised For a lower open, following another day of losses on Wall Street.

Kiwi Hits Multi-day Versus Greenback [NZD/USD]
The New Zealand dollar hit a multi-day high against the US dollar on Tuesday's mid-afternoon New York deals. The kiwi-dollar pair reached a 3-day high of 0.7734 by about 2:09 pm Eastern Time, up from yesterday's close of 0.7691. The pair is now trading near 0.7730

Stocks Move Higher At The Start Of Trading - U.S. Commentary []
After turning in a mixed performance in the previous session, stocks moved higher at the start of trading on Tuesday. The major averages all moved into positive territory, with the Nasdaq rebounding after ending Friday's trading at a four-month closing low.

Stocks Close Mixed; Japan Reverses Losses - Asian Commentary []

Stocks Close Mixed; Japan Reverses Losses - Asian Commentary []
Stock markets across the Asia-Pacific region closed mixed on Tuesday after the U.S. shares finished flat overnight amid economic growth concerns.

Loonie Drops Further Versus Majors [EUR/CAD]
The Canadian dollar further weakened against its major counterparts at about 3:26 pm Eastern Time on Tuesday. As of now, the loonie is trading as low as 108.70 against the Japanese yen, 1.4767 against the euro and 1.0037 versus the dollar.

Japanese Market Slides On U.S. Economic Growth Worries []
Monday, Tokyo shares settled sharply lower, following Wall Street's losses on Friday as a weaker-than-expected U.S. December jobs data raised concerns that the world's largest economy might slip into recession. The benchmark Nikkei 225 index closed down 190.86 points or 1.3% at 14,500.55, but off day's low of 14,438.61.

Franc Mixed Versus Majors Tuesday Morning [USD/CHF]
The Swiss currency was choppy in trading against its world counterparts in action on Tuesday morning in New York. The franc moved with little economic news from the area.

Yen Gains Momentum Against Majors [EUR/JPY]
Reversing the early losses, the Japanese Yen gained some ground against its major counterparts during the early New York deals on Tuesday. As of 8:47 am ET, the yen was trading near 109.38 versus the dollar, 216.00 versus the pound and 160.85 versus the euro.

Greenback Moves Back Towards Multi-decade Low Versus Aussie []
The dollar extended its early decline in late morning dealing versus its Australian counterpart on Tuesday, slipping to .8826 from an overnight level near .878. With the retreat, the dollar moved back towards a week-old multi-decade low of .8853.

Australia Stocks Expected To Open Lower []
Australian stocks are poised for a lower Tuesday open, following a luke warm lead from Wall Street.

European Markets Quiet Ahead Of U.S. ISM, European Manufacturing Reports - European Commentary []

European Markets Quiet Ahead Of U.S. ISM, European Manufacturing Reports - European Commentary []
European markets are quiet ahead of the first trading session of the new year, as traders will be looking towards a number of key economic reports for direction in what will likely be light trading.

Stocks Move Higher At The Start Of Trading - U.S. Commentary []
After turning in a mixed performance in the previous session, stocks moved higher at the start of trading on Tuesday. The major averages all moved into positive territory, with the Nasdaq rebounding after ending Friday's trading at a four-month closing low.

Stocks Likely To Come Under Pressure On Weak Employment Data - U.S. Commentary []
Stocks are likely to see considerable weakness in early trading on Friday, as traders react to a Labor Department report showing much weaker than expected employment growth. The major U.S. index futures are currently indicating a sharply lower open for the markets.

Stocks Move Off Their Lows But Remain Firmly Negative - U.S. Commentary []
Stocks have come well off their lows for the day, but they are still firmly planted in negative territory after weaker than expected economic news came out earlier today and the price of oil reached $100 a barrel.

Peter Boockvar Comments On Pending Home Sales: How Much Do Prices Need To Drop To Tempt Higher Demand? []
Peter Boockvar of Miller Tabak & Co. reported on Tuesday that November Pending Home Sales, the contract signings of existing homes, fell a greater than expected 2.6% month over month versus expectations of a decline of 0.7%.

European Markets To Open Lower Amid U.S. Recession Fears - European Commentary []
European futures are indicating a lower open as traders eye yet another fall in Asian equity prices and experts across the globe continue to worry about the state of the U.S. economy following Friday's disappointing jobs data.

Stocks Turn In A Lackluster Performance Following Recent Weakness - U.S. Commentary []
With little economic news to go on, stocks spent the day moving back and forth across the unchanged line on Monday. The choppy trading day saw some investors bargain hunting after the sharp decline on Friday, while other investors were setting their portfolios up for a recession.

Stocks Close Lower On Disappointing Economic Data - U.S. Commentary []

Stocks Close Lower On Disappointing Economic Data - U.S. Commentary []
Though the markets opened modestly higher, stocks dropped substantially after the Institute for Supply Management released its report on economic activity in the manufacturing sector in the month of December. The report showed that activity in the sector unexpectedly contracted, with the purchasing managers index falling to 47.7 in December.

Market Likely To Consolidate At Current Levels On Mixed Cues From Global Peers - Asian Commentary []
Tuesday, Indian shares are likely to consolidate at current levels on the back of mixed cues from global markets. Some degree of profit booking can also be expected following recent record gains. However, in intraday trading, the Sensex might touch the 21,000 mark.

Stocks Seeing Modest Strength In Early Trading - U.S. Commentary []
Stocks moved modestly higher at the start of trading on Thursday, with the major averages regaining some ground after falling sharply in the two previous sessions. Bargain hunting contributed to the initial upward move.

Merrill Lynch Economist Says US Has Entered Recession []
The US economy has entered into its first major recession in 16 years according to David Rosenberg, chief North American economist for Merrill Lynch. In a research note to clients released on Monday, Rosenberg wrote that "Friday's employment report confirmed our suspicions that the economy was transitioning into an official recession towards the end of last year."

Malaysian Stocks Due For Correction []
After two straight days of record high closes, analysts are calling for the Malaysian stock market to ease slightly on a bit of profit taking when the Kuala Lumpur Composite Index opens for business on Tuesday. Also likely to lead the index to the downside will be the plantation sector that had helped to set the record highs, since palm oil is viewed as an organic alternative for crude oil.

Market Likely To Open Sharply Lower On Back Of Weak Global Cues - Asian Commentary []
Global cues are pointing towards a lower opening for the Indian market on Monday. The U.S. stocks plunged on Friday after a weaker-than-expected jobs data fanned recession fears. The major Asian markets are sharply lower on Monday, tracking Wall Street's sell-off.

European Markets Fall On U.S. Housing Data - European Commentary []

European Markets Fall On U.S. Housing Data - European Commentary []
The European markets fell for the first time in four days on Friday after a report showed that sales of new homes in the U.S. fell much more than expected last month, stirring concern about the health of the world's largest economy.

Stocks Close Mixed On First Trading Session Of 2008 - Asian Commentary []
Wednesday, stock markets across the Asia-Pacific region closed mixed on economic growth concerns in the U.S as well as in the region. Government reports in South Korea and Singapore showed that the two countries' economies were slowing.

Stocks Continue To Move Lower In Early Afternoon Trading - U.S. Commentary []
Wall Street remains in negative territory in early-afternoon trading on Thursday, as investors take in mixed economic reports in this abbreviated holiday week. Some negative sentiment has been generated by news that Pakistani opposition leader Benazir Bhutto has been assassinated.

US Dollar Down Against Majors [EUR/USD]

US Dollar Down Against Majors [EUR/USD]
The US dollar showed weakness in action against its major counterparts in Asian trading on Wednesday.

Pound Falls To Record Low Versus Euro [EUR/GBP]
Wednesday during early deals, the pound weakened against its major counterparts, hitting a fresh record low against the euro. Against the franc and the yen, the pound touched lows since 2 � years and 4-� months respectively.

Stocks May Move Modestly Higher In Early Trading - U.S. Commentary []
After ending the previous session roughly mixed, stocks may move modestly higher in early trading on Monday. The major U.S. index futures are indicating a higher open for the markets, although buying interest is likely to remain somewhat subdued.

Canadian Dollar Falls To Multi-day Lows Against Majors [USD/CAD]
The Canadian dollar weakened to multi-day lows against its major counterparts in early deals on Wednesday. At about 2:20 am ET, the loonie touched 15-day lows of 0.8722 against the aussie and 1.4550 against the euro, compared to yesterday's close of 0.8654 and 1.4416, respectively.

Stocks Remain Mostly Negative In Late Morning Trading - U.S. Commentary []
While selling pressure has waned from earlier in the session, stocks are seeing continued weakness in late-morning trading on Wednesday. Worries about higher oil prices and weak holiday spending are contributing to the continued weakness.

Brazil's Trade Surplus Up In December But Narrows In 2007 [USD/BRL]
According to data released Wednesday morning at 7 am ET, Brazil's 2007 foreign trade surplus was down at $40.04 billion. However, Brazil's December trade surplus was up from November at $3.6 billion.

Loonie Declined Against Greenback And Sterling, Advanced Versus Euro [USD/CAD]

Loonie Declined Against Greenback And Sterling, Advanced Versus Euro [USD/CAD]
The loonie dropped against the greenback and the sterling but experienced uncertain dealings with the euro on Monday. The trading was quiet, with investors getting a head start on the New Year's holiday.

New Currency For Venezuela [USD/VEB]
President Hugo Chavez launched a new currency for Venezuela, with effect from New Year Day, as part of his fight against inflation in the country.

Euro Drops Versus Other Major Currencies [EUR/USD]
The euro fell against its major counterparts during Monday morning's dealings in New York. The trading was quiet, with investors getting a head start on the New Year's holiday.

Canadian Stocks End The Year With A Whimper Concerns About '08 - Canadian Commentary []
Amid lingering concerns that a major slowdown for the US economy will spill over into Canada, Toronto stocks finished 2007 on a lackluster note Monday.

Greenback Slips Versus Real [USD/BRL]
The dollar eased slightly against the Brazilian real on Monday. The greenback fell from its early morning high of 1.780 to 1.775 just after 10:00 am ET. The dollar has since stabilized at 1.7795 amid quiet trading, with investors getting an early jump on the New Year's holiday.

Dollar Adds To Early Gains Versus Euro [EUR/USD]
The dollar extended its early rally against the euro in mid-day dealing on Monday, soaring to 1.4580 from an overnight low near 1.4750. The dollar received a boost from the 10 am ET release of better than expected US existing home sales figures for November.

Yen Advanced Versus Euro And Pound, Uncertain Against Dollar [USD/JPY]
The yen rose against both the euro and sterling on Monday in New York, but traded with uncertainty versus the greenback. The trading was quiet, with investors getting a head start on the New Year's holiday.

FT Advisors Optimistic About US Economy In 2008 []
Brian S. Wesbury and Robert Stein, economist at FT Advisors remarked Monday that in the first few days of 2008, despite the holiday, the data flow will be pretty heavy, including the employment report on Friday, which they expect to be slightly on the weak side with just 65,000 new jobs.