Weekly Forex Market Followup (December 5th - December 9th 2011)

Key Fundamental Forex Events for the Week of December 5th
through December 9th The following table lists the key economic
data and other events that came out during the week of December 5th
through December 9th, with release times displayed for the GMT time
zone. The list also indicates how much each release deviated from
the market consensus forecast upon release, as well as what the
affected major currency pair or pairs did after each event or set
of events. Monday, December 5
^th 12:30am AUD ANZ Job Advertisements 0.0% versus last
-0.7%. The AUD rose. 9:30am GBP Services PMI 52.1 versus 50.6
expected. The GBP rose. 3:00pm USD ISM Non-Manufacturing PMI 52.0
versus 53.6 expected. The USD mostly fell. Tuesday, December 6
^th 3:30am AUD Cash Rate 4.25%, as expected. 3:30am AUD
RBA Rate Statement. Governor Glenn Stevens noted that, "The
sovereign credit and banking problems in Europe, to which European
governments are still seeking to craft a full response, are likely
to weigh on economic activity there over the period ahead.
Financial markets have experienced considerable turbulence, and
financing conditions have become much more difficult, especially in
Europe. The AUD fell. 8:00am CHF Foreign Currency Reserves 229.3B
versus last 242.7B. 8:00am GBP Halifax HPI -0.9% versus last 1.2%.
The GBP fell. 8:15am CHF CPI -0.2% versus 0.1% expected. The CHF
fell. 1:30pm CAD Building Permits 11.9% versus 3.2% expected.
2:00pm CAD BOC Rate Statement noted that, "In Canada, the economic
expansion is proceeding largely as projected, although the expected
rotation of demand is somewhat slower than had been anticipated.
Household spending remains solid and business investment robust.
Net exports remain weak, reflecting modest U.S. demand and ongoing
competitiveness challenges, particularly the persistent strength of
the Canadian dollar. Despite increased global risk aversion,
financial conditions in Canada remain very stimulative and private
credit growth is strong." 2:00pm CAD Overnight Rate 1.00%, as
expected. 3:00pm CAD Ivey PMI 59.9 versus 55.1 expected. The CAD
rose. Wednesday, December 7
^th 12:30am AUD GDP 1.0% versus 1.2% expected. The AUD
rose. 9:30am GBP Manufacturing Production -0.7% versus -0.1%
expected. The GBP rose. 8:00pm NZD Official Cash Rate 2.50%, as
expected. 8:00pm NZD RBNZ Press Conference. Deputy Governor Grant
Spencer said that, "Covered bonds can provide banks with access to
a stable funding source, which helps support system stability
during times of severe disruption in international markets." 8:00pm
NZD RBNZ Rate Statement. Governor Alan Bollard noted that, Global
developments are having some negative impact on New Zealand, though
to date it has been limited. Business confidence has declined and
investment spending is likely to remain weak for some time." The
NZD was unchanged. Thursday, December 8
^th 12:30am AUD Employment Change -6.3K versus 10.6K
expected. 12:30am AUD Unemployment Rate 5.3% versus 5.2% expected.
The AUD fell. 12:00pm GBP Asset Purchase Facility 275B, as
expected. 12:00pm GBP Official Bank Rate 0.50%, as expected. The
GBP fell. 12:45pm EUR Minimum Bid Rate 1.00%, as expected. 1:15pm
CAD Housing Starts 181K versus 203K expected. The CAD fell. 1:30pm
EUR ECB Press Conference. President Mario Draghi stated that, "The
intensified financial market tensions are continuing to dampen
economic activity in the euro area and the outlook remains subject
to high uncertainty and substantial downside risks. In such an
environment, cost, wage and price pressures in the euro area should
remain modest over the policy-relevant horizon." The EUR fell.
1:30pm USD Weekly Initial Jobless Claims 381K versus 397K expected.
The USD rose overall. Friday, December 9
^th 1:30am CNY CPI 4.2% versus 4.6% expected. All Day EUR
EU Economic Summit. German Chancellor Merkel stated that, "This is
a breakthrough to a union of stability. The fiscal union will be
developed step by step. We will use the crisis as a chance for a
new beginning." The EUR rose. 9:30am GBP PPI Input 0.1% versus 0.3%
expected. The GBP rose slightly. 1:30pm CAD Trade Balance -0.9B
versus 0.8B expected. The CAD rose slightly. 1:30pm USD Trade
Balance -43.5B, as expected. 2:55pm USD Preliminary University of
Michigan Consumer Sentiment 67.7 versus 65.6 expected. The USD
fell. Technical Recap for the Majors This Week EURUSD:
Forecast: Mildly LowerActual: Mildly lower from a 1.3422 open to a
1.3352 close. USDJPY: Forecast: Mildly HigherActual: Mildly lower
from a 78.03 open to a 77.65 close. GBPUSD: Forecast: Mildly
LowerActual: Mildly lower from a 1.5624 open to a 1.5623 close.
AUDUSD: Forecast: Mildly LowerActual: Mildly lower from a
1.0252 open to a 1.0172 close. USDCAD: Forecast: Mildly
HigherActual: Mildly higher from a 1.0165 open to a 1.0222 close.
NZDUSD: Forecast: Mildly LowerActual: Mildly lower from a
0.7809 open to a 0.7720 close.