| Forex Weekly Review and Outlook Dollar to Draw Further Strength ...
Dollar staged a broad based rebound last week after solid data as well as weakness in other majors. The greenback will look forward to a busy economic schedule that feature a series of important US economic data including GDP, ISM and NFP as well as FOMC meeting to draw further strength to extend the rebound that started early this year. On the other hand, Sterling tumbled across the board last week after a much less hawkish than expected MPC meeting minutes and vote outcome. Yen was volatility on G7 rumors. Australian dollar fell sharply after disappointing Q4 inflation data that dimmed hope for a Feb hike. The US economic calendar was light last week but nevertheless, dollar was supported by solid durable goods orders report and housing data. Dec headline durable goods orders were up 3.1% on a year-to-year basis, much better than consensus expectations of 2.5% growth, and far outpaced Nov's upwardly revised 2.2% gain.
Currencies: Yen slips on comments from Japanese official
The yen dropped more against the dollar on Wednesday than it had in about a month after a Japanese Finance Ministry official said foreign exchange would not be a major topic at this weekend's Group of 7 meeting, suggesting the government would spurn European calls to encourage a stronger currency. The yen also posted its biggest one- day loss since December against the euro after the official, who spoke in Tokyo on condition of anonymity, said the meeting of representatives from the G-7 industrialized countries probably would not have a "big" debate about currencies when they meet in Essen, Germany, on Friday and Saturday. The U.S. Treasury secretary, Henry Paulson Jr., signaled Tuesday that he did not share European officials' concern over the Japanese exchange rate. "There is no broad consensus," said Christian Dupont, a senior currency trader at Société Générale in Montreal.
ECB and BoE meeting Review
As broadly expected ECB as well as the BoE, have both left their interest rate unchanged at 3.50% and 5.25% respectively. However, at the post meeting press conference, Jean-Claude Trichet, indicated that the ECB would raise rates on its March 8th meeting. Check the effect that the result of the meetings is having over the pairs in our Rates and Charts Section or compare the movements of the different banks in our World Interest Rates Table. You can also express your opinion in the FOREX FORUM polls: ECB leaves rates unchanged as expected and BoE leaves rates at 5.25% Monetary policy decisions at ECB Bank Rate Maintained at 5.25% at BoE Review the opinion of our Forex Guru Tony Juste at The Advisor Blog. In-Depth Analysis The ECB can afford to wait by FX Solutions ECB Confirms Interest Rates to Rise in March by KBC Bank ECB: Trichet indicates March hike by Danske Bank A/S Morning Report - Euro remains firm following Trichet comments by Westpac Institutional Bank European and US summary - The euro rallies across the board after ECB signaled a possible rate hike in March by Forexnews.com Daily Fx Strategy - ECB Helps Euro, BoJ Hurts Yen by CMC Markets NY Mid-Day Forex Technical Report - Euro Still in Range after "Vigilance" from Trichet by ActionForex.com Forex Trading Strategies - BoE kept Rates at 5.25% by Saxo Bank Related News ECB leaves Key Interest Rates unchanged (FXstreet.com) Trichet issues strong call for wage moderation (AFX News) ECB Q&A:Inflation This Year "Already Done" In ECB Thinking -3 (Dow Jones) Trichet says still believes yen level should reflect Japanese economic recovery (AFX News) Trichet says ECB must exercise 'strong vigilance' on inflation risks UPDATE (AFX News) “Strong vigilance" on prices needed, according to Trichet (FXstreet.com) Euro steady, pound softer after ECB, BoE leave rates unchanged (AFX News) Euro Climbs Further On Trichet Comments (Dow Jones) BoE keeps key repo rate unchanged at 5.25 pct (AFX News) BoE skips Feb but spring rate hike stays firmly in view (AFX News) Analysts' Comments Ian McCafferty, chief economic adviser at CBI:"The Bank has decided that last month's surprise increase is enough for now and needs to assess the impact on inflation and the economy before deciding the next move.
MasterCard Incorporated Reports Fourth-Quarter and Full-Year 2006 ...
PURCHASE, N.Y., Feb. 9 /PRNewswire-FirstCall/ -- MasterCard Incorporated (NYSE: MA) today announced financial results for the fourth quarter and full-year 2006. For the fourth quarter, the company reported net income of $41 million, or $0.30 per share. Excluding the impact of litigation settlements, net income for the quarter was $42 million, or $0.31 per share. Net revenues for the quarter were $839 million, a 17.2% increase versus the same period in 2005. Currency fluctuations (driven by the movement of the euro relative to the US dollar) contributed approximately 1.9% of the increase in revenues for the quarter. For the fourth quarter 2006, total net income, earnings per share and total operating expenses, each of which excludes litigation settlements, are non-U.S. GAAP financial measures that are reconciled to their most directly comparable U.S.
Brazilian Stocks Lure Investors From Mexico as Price Gap Widens
Feb. 7 (Bloomberg) -- Brazilian stocks are trading at their cheapest prices relative to Mexican shares in more than three years. Rochdale Investment Management's Audrey Kaplan is buying in Sao Paulo and selling in Mexico City to profit from the gap. Kaplan, whose $274 million Rochdale Atlas Portfolio outperformed 95 percent of similar international funds last year, sold all her Mexican shares by the end of 2006 and added to holdings in Brazil on the view that falling interest rates will boost the economy and corporate profits. ``Looking at earnings, Mexican stocks have reached their value,'' she said in a phone interview. ``Brazil is one of the few markets expecting an interest rate decline.'' UBS AG, Europe's largest bank, singled out Brazil as its top Latin American country for investment and stripped Mexico of the distinction in a Jan.
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