free fridayâ€™s forex

Free Friday’s Forex

By Rita Lasker

January, 06 - 13


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Free Friday’s Forex – is the short review of the past trading events.

Usually any price moves are the results of the economic data releases or/and the

actions of most important politicians or other influential persons.

Reports and statements given by economists, data releases are the main factors

leading to the changing price. Once you see the way the Forex reacts to these factors,

you will be able to learn how to forecast the market.

Most valuable economic calendar is also included into the each edition of “FFF” to

help you stay always informed if any data releases are expected.

Nothing compares to seeing the actual effects of the news.

Anyone can talk about it hours, but it can be more

interesting to see the real trading days in terms of news.

That’s what our Free Friday’s Forex is about.

In this edition you will find:

* Top Forex News

Page 5 * Free Forex Profiles

Page 6 * Free Forex Dictionary

Page 7 * Free Forex News of the last week

Page 12 * January Holidays calendar for the next week

Page 13 * Economic calendar for the next week

*TOP FOREX NEWS

*Meeting in Berlin

German Chancellor Angela Merkel and French

President Nicolas Sarkozy were meeting in Berlin

to discuss steps to improve the financial situation in

the European Union and to foster better fiscal

consolidation among the countries of the Union.

Merkel explained that among the discussed topics

was plan to make the bailout fund “more efficient”.

The euro was gaining among other majors after the meeting ended.


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*Britain and the European Union

The United Kingdom walked away from the

last year’s discussion of the EU consolidation

because the UK desired to preserve its

independence. The future of Britain’s economy is

unclear as forecasts are mixed.

Deputy Prime Minister Nick Clegg worried that Prime Minister David Cameron‘s

veto of a new European Union treaty left Britain isolated from the rest of Europe.

Cameron refused to sign the treaty, which imposed hefty financial regulations, and

would have impact London quite a bit.

Concerns that the European Union would exclude Britain from further planning

were raised by Clegg. Cameron, however, insists that the members of the European

Union won’t be able to go behind their backs, and that Britain can remain vigilant in

ensuring that the European Union remains on task.

*Chairman of the Swiss Nation Bank resigned from his post

Philipp Hildebrand, Chairman of the Swiss Nation Bank,

resigned from his post after currency trades of his wife

compromised his credibility as a central bank’s chief.

Transactions of Hildebrand‘s wife on the foreign-currency

exchange market led public to believe that Chairman’s family used

an inside information for profit. Hildebrand said he hasn’t known

about the activity of his wife. He disclosed the private financial

transactions that occurred in August 2011, but explained he has “come to the

conclusion that it is not possible to provide conclusive and final evidence” that

his wife “did indeed initiate the foreign exchange transaction on the 15th August

without” his knowledge.

Vice President Thomas Jordan was appointed as a

temporary head of the central bank. Analysts think that the SNB

won’t change its policy regarding the franc. Indeed, the bank said:

The SNB’s current monetary policy with a minimum

exchange rate of CHF 1.20 against the euro remains

unchanged. This policy will be pursued further with the

utmost determination.


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*Fitch Comments affect Euro

The euro declined after Fitch Ratings spoke

about possible worsening of Europe’s credit crisis and

potential disintegration of the Eurozone.

Fitch said the European Central Bank should

ramp up its bond purchases, otherwise the euro risks

collapsing. (EUR/USD fell from 1.2776 to 1.2696 and

EUR/JPY slipped from 98.19 to 97.75 as a result of

that speech).

*ECB Sees Stabilization

The European Central Bank left the main interest rate unchanged and ECB

President said he sees signs that the European economy is stabilizing.

Europe’s central bank kept its minimum bid rate at 1.0

percent as was expected by economists.

Mario Draghi, President of the ECB, said at the press-

conference after the decision:

As expected, ongoing financial market tensions

continue to dampen economic activity in the euro area,

while, according to some recent survey indicators,

there are tentative signs of stabilization in activity at

low levels.

In addition, Spain managed to exceed its maximum

target at bond auction, adding to the strength of the euro.

*The Bank of England Keeps Policy Unchanged

The Bank of England decided to keep its official Bank Rate

unchanged at 0.5 percent and maintained the asset purchase

facility at £275 billion. Such move was predicted by analysts,

but that hasn’t deterred traders from talking about more easing

in the future. The minutes of the previous monetary policy

meeting suggested that some of policy makers indeed talked

about such measure:

Some members continued to note that the balance of risks to inflation in

the November Inflation Report projections meant that a further expansion of the


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asset purchase program might well become warranted in due course. Of those

members, some thought that the outlook had deteriorated somewhat on the

month, and noted the further weakening in the labor market and increased

concerns for credit supply arising from the continuing strains in bank funding

markets.

*FOREX PROFILES

Often we hear different names while economic news, and

sometimes it is surprising why the report of the one person may

change the situation at Forex in just no time. They are not just the

persons… But the most influential and famous people.

Who are they?

Angela Dorothea Merkel (born 17 July 1954) is the Chancellor of Germany and

Chairwoman of the Christian Democratic Union (CDU).

In 2007, Merkel was also President of the European

Council and chaired the G8. She played a central role in the

negotiation of the Treaty of Lisbon and the Berlin

Declaration. In domestic policy, health care reform and

problems concerning future energy development have thus

far been major issues of her tenure.

Merkel is the first female Chancellor of Germany. In

2007, she became the second woman to chair the G8, after

Margaret Thatcher. In November 2011 she became the

longest-serving leader of a G8 country. Forbes has named

her the fourth most powerful person in the world as of 2011.

Nicolas Sarkozy (born 28 January 1955) is the 23rd and current President of the

French Republic and ex officio Co-Prince of Andorra. He

assumed the office on 16 May 2007 after defeating the

Socialist Party candidate Ségolène Royal 10 days earlier.

Before his presidency, he was leader of the Union for a

Popular Movement (UMP). Under Jacques Chirac's

presidency he served as Minister of the Interior in Jean-

Pierre Raffarin's (UMP), then was appointed Minister of

Finances in Raffarin's last government and again Minister of

the Interior in Dominique de Villepin's government.


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Nicholas "Nick" Clegg (born 7 January 1967) is a British Liberal Democrat

politician who is currently the Deputy Prime Minister,

Lord President of the Council and Minister for Constitutional

and Political Reform in the coalition government of which

David Cameron is the Prime Minister.

Clegg has been the Leader of the Liberal Democrats

since 2007, and a Member of Parliament (MP) representing

the constituency of Sheffield Hallam since 2005. He was

previously a Member of the European Parliament (MEP)

representing the East Midlands from 1999 to 2004.

Christine Lagarde, (born 1 January 1956) is the managing director of the

International Monetary Fund since July 5, 2011.

Previously, she held various ministerial posts in the French

government: she was Minister of Economic Affairs, Finances and

Industry and before that Minister of Agriculture and Fishing and

Minister of Trade in the government of Dominique de Villepin.

Lagarde was the first woman ever to become minister of

Economic Affairs of a G8 economy, and is the first woman to

ever head the IMF.

Now, you will get a better idea about these people and will know exactly what

their connection with the Forex market is.

our easy Forex glossary for you

LIBOR - The Libor is the average interest rate that leading

banks in London charge when lending to other banks.

It is an acronym for London Interbank Offered Rate.

Banks borrow money for one day, one month, two months, six


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months, one year, etc., and they pay interest to their lenders based on certain rates.

The Libor figure is an average of these rates. Many financial institutions, mortgage

lenders and credit card agencies track the rate, which is produced daily at 11 a.m. to

fix their own interest rates which are typically higher than the Libor rate. As such, it is

a benchmark for finance all around the world.

Risk appetite - The level of risk that an organization is

prepared to accept, before action is deemed necessary to reduce it. It

represents a balance between the potential benefits of innovation and

the threats that change inevitably brings.

Interest rate - An interest rate is the rate at which interest is paid

by a borrower for the use of money that they borrow from a lender. For

example, a small company borrows capital from a bank to buy new

assets for their business, and in return the lender receives interest at a

predetermined interest rate for deferring the use of funds and instead

lending it to the borrower. Interest rates are normally expressed as a percentage of the

principal for a period of one year. Interest rates targets are also a vital tool of

monetary policy and are taken into account when dealing with variables like

investment, inflation, and unemployment.

of the last week:


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January, 06 - UK Pound Lower as Concern about Isolation Grows

UK pound is lower on a combination of risk aversion, as well as concerns as British

politicians consider the effects of British isolation from the rest of the Eurozone.

For now, the UK pound is down against other majors, falling against low beta

currencies like the US dollar and the Japanese yen, as well as dropping against the

euro. Concerns about Britain’s exposure to European troubles, especially since

yesterday’s French bond auction failed, UniCredit shares had to stop trading, and

Spain’s government is demanding a high level of bank capitalization, is a factor in a

lower sterling.

At 14:22 GMT GBP/USD is lower at 1.5437, down from the open at 1.5495.

GBP/JPY is down to 119.0485 from the open at 119.5150. EUR/GBP is higher at

0.8259, up slightly from the open at 0.8253

January, 06 – Euro Struggles Continue on Bank Capitalization Concerns

Bank capitalization concerns are the main focus today, especially after the debacle

involving UniCredit. Worries about bank capitalization, and a continuation of the

sovereign debt crisis in many Eurozone states, has the euro heading lower again today.

Even better news out of the United States, with the news that the December

unemployment rate dropped to 8.5% can’t boost risk appetite. There’s just too much

focus on the Eurozone, and the debt problems in the region.

At 15:34 GMT EUR/USD is down to 1.2714 from the open at 1.2788. EUR/JPY is

lower at 77.0970, down from the open at 77.1160. EUR/GBP is a little higher, though,

at 0.8259, up from the open at 0.8253.

January, 07 – US Dollar Posts Gains in First Week of 2012

The US dollar advanced this week, reaching a 17-month high against the euro, as

concerns about the debt crisis in Europe persisted, while the economy of the United

States continued to recover.

Next week is also expect to demonstrate positive developments in the USA,

including rising retail sales, improving consumer sentiment and falling unemployment

claims.

EUR/USD fell from 1.2929 to 1.2718 this week, following the advance to 1.3075.

The weekly low was 1.2696 — the lowest price since September 2010. USD/JPY ended

the week at the opening level of 76.95. USD/CHF climbed from 0.9405 to 0.9550 after

touching the weekly low of 0.9303.


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January, 09 – Euro Rises as Merkel & Sarkozy Meet

The euro rebounded as German Chancellor Angela Merkel and French President

Nicolas Sarkozy meet today to discuss measures for rescuing Europe from its troubles.

Merkel and Sarkozy meet in Berlin to discuss additional rules to foster tighter fiscal

discipline among the countries of the European Union.

EUR/USD advanced from 1.2693 to 1.2747 and EUR/JPY climbed from 97.62 to

97.96 as of 13:31 GMT today.

January, 09 – US Dollar Edges Lower Against Other Majors

US dollar is edging lower against other major currencies. Losses aren’t too big,

though, since there is still a great deal of uncertainty in the markets right now. A

meeting between Nicolas Sarkozy and Angela Merkel is said to have made “progress”

toward a euro agreement, but no major announcements were made.

Meanwhile, better news it the United States lately has been giving rise to some

optimism that the recovery is underway. As a result, risk appetite is making a bit of an

appearance and helping high beta currencies like the euro and the Great Britain pound.

Additionally, since no real details for a plan to save the Eurozone, and fix the

sovereign debt and banking crises, have emerged, the current modest gains for the

euro could easily be erased.

At 16:29 GMT EUR/USD is modestly higher at 1.2737, up from the open at 1.2696.

GBP/USD is a very little higher at 1.5429, up from the open at 1.5425. USD/JPY is a

little lower at 76.8777, down from the open at 76.8950.

January, 09 – Pound Retreats Against Euro, Higher vs. Dollar & Yen

The Great Britain pound ticked down against the euro after the leaders of

Germany and France have met today in order to find a way out of the dangerous

situation with the European debt. The UK currency was higher versus the US dollar and

the Japanese yen.

EUR/GBP was up from 0.8227 to 0.8256 as of 21:25 GMT today, while it reached

the lowest level since September 2010 of 0.8219 earlier. GBP/USD rose from 1.5421 to

1.5454 and GBP/JPY went higher from 118.58 to 118.73.

January, 09 – Franc Gains After Hildebrand Resigns

The Swiss franc climbed after Philipp Hildebrand, Chairman of the Swiss Nation

Bank, resigned from his post. Vice President Thomas Jordan was appointed as a

temporary head of the central bank. The bank said that the SNB’s current monetary


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policy with a minimum exchange rate of CHF 1.20 against the euro remains unchanged.

This policy will be pursued further with the utmost determination.

USD/CHF slipped from 0.9573 to 0.9491 and EUR/CHF went down from 1.2149 to

1.2115 as of 23:13 GMT today. CHF/JPY advanced from 80.28 to 80.93

January, 10 – JPY Drops vs. EUR

The Japanese yen dropped today against the euro as Germany’s leader meets the

head of the International Monetary Fund to discuss the ongoing issues of the European

Union and possible ways to resolve the credit problems.

Angela Merkel, German Chancellor, meets Christine Lagarde, Managing Director of

the IMF, in Berlin. Merkel explained that Greece will be the main theme of the

discussion. Analysts said that short-covering made the euro strong against other

currencies, particularly safer ones.

EUR/JPY was up from 98.09 to 98.34, while USD/JPY traded near its opening level

of 76.82 as of 13:28 GMT.

January, 10 – Euro Manages to Hold On to Gains

Euro is managing to hold on to some of its gains for now. Euro saw some small

success against the US dollar and is working to keep those gains. For now, the euro is

receiving some help from European leaders, but Forex traders will need to get on board

if the euro is expected to see any real advances anytime soon.

At 14:14 GMT EUR/USD is higher at 1.2793, up from the open at 1.2766. EUR/GBP

is higher at 0.8265, up from the open at 0.8257. EUR/JPY is up to 98.3120 from the

open at 98.1050.

January, 10 – US Dollar Lower as Risk Appetite Makes an Appearance

Risk appetite is making an appearance as investors show optimism through higher

stocks. As a result, the US dollar is mostly lower against other majors today. US Dollar

is lower against the euro, pound and yen today.

The difference isn’t terribly large at this point. For the most part, major currencies

have been rangebound. Even though good news in the United States is giving a boost,

there are still plenty of concerns about Europe.

At 15:38 GMT EUR/USD is slightly higher at 1.2771, up from the open at 1.2766.

GBP/USD is also only a little higher, rising to 1.5470 from the open at 1.5458. USD/JPY

has moved slightly lower and is trading at 76.8400, down from the open at 76.8575.


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January, 11 – Euro Down on Fitch Comments

The euro declined after Fitch Ratings spoke about possible worsening of Europe’s

credit crisis and potential disintegration of the Eurozone.

EUR/USD fell from 1.2776 to 1.2696 and EUR/JPY slipped from 98.19 to 97.75 as

of 13:38 GMT.

January, 11 – Pound Lower on Speculation

The Great Britain pound went down after trade balance deficit widened retail price

inflation slowed.

Seasonally adjusted trade deficit rose to £8.6 billion in November from £7.9 billion

in October. There are talks that the BoE may expand its asset purchases program, but

most economists think that the target for bond purchases will remain the same.

GBP/USD slumped from 1.5482 to 1.5378 and GBP/JPY tumbled from 118.96 to

118.38 as of 14:29 GMT.

January, 12 – US Dollar Falls as Libor Drops

US dollar is lower across the board as the Libor falls for borrowing dollars and

euros. The London interbank market also saw a narrowing in the spread of three-month

dollar Libor and overnight index swaps. However, the latest US jobs data might change

things; the US dollar is only slightly lower and could easily gain strength if risk aversion

rises.

On top of that US retail sales didn’t rise as much as expected in December. The

situation brings back worries that the US economic recovery is going to remain woefully

stagnant, and that risk appetite is going to fade.

At 14:19 GMT EUR/USD is slightly higher at 1.2772, up from the open at 1.2708.

GBP/USD is higher at 1.5336, up from the open at 1.5329. USD/JPY is slightly lower,

down to 76.8300 from the open at 76.8570.

January, 12 – Euro Jumps as ECB Sees Stabilization

The euro climbed, erasing its yesterday’s losses versus the US dollar and the

Japanese yen, after the European Central Bank left the main interest rate unchanged

and ECB President said he sees signs that the European economy is stabilizing.

Spain managed to exceed its maximum target at bond auction, adding to the

strength of the euro.

EUR/USD jumped from 1.2705 to 1.2820 and EUR/JPY climbed from 97.65 to

98.36 as of 15:13 GMT.


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January, 12 - Pound Drops, BoE Keeps Policy Unchanged

The Great Britain pound fluctuated against the US dollar and slumped versus the

euro on speculations that the UK central bank will boosts its asset purchase program.

The bank left the program and its main interest rates unchanged.

The Bank of England decided to keep its official Bank Rate unchanged at 0.5

percent and maintained the asset purchase facility at £275 billion.

GBP/USD was near its opening price of 1.5325 as of 16:57 GMT. EUR/GBP surged

from 0.8287 to 0.8358 and touched 0.8366 — the highest rate since January 3.

January, 13 -Yen Fluctuates Ahead of US Reports, Looks Down

The Japanese yen fluctuated, demonstrating a downside bias, as today’s reports

from the United States are expected to be mixed. The yen slid versus the euro today on

signs of stabilizing economic situation in Europe.

On the negative side for the yen, Michigan Sentiment Index is expected to rise

from 69.9 to 71.2 this month. On the positive side, growth of import prices is predicted

to stall in December. Yesterday’s reports were worse than expected, adding strength to

the yen.

The USA adds support for the Japanese currency, but Europe holds the yen from

rallying as outlook for the European economy unexpectedly improved. Yesterday’s

report weren’t bad. Today, analysts say that Eurozone trade balance surplus is

expected to increase.

USD/JPY traded near its opening rate of 76.75, while EUR/JPY rose a little from

98.36 to 98.41 as of 3:14 GMT today. GBP/JPY was higher from 117.66 to 117.75.

Well, and what should we expect from the coming week?

NEXT WEEK SCHEDULE:

International Holidays calendar

Date COUNTRY HOLIDAY

Jan. 16 United States New York Stock Exchange

Martin Luther King,

Jr. Day

Jan. 23 Hong Kong Hong Kong Stock Exchange Lunar New Year

Singapore Singapore Stock Exchange Lunar New Year

Jan. 24 Hong Kong Hong Kong Stock Exchange Lunar New Year

Singapore Singapore Stock Exchange Lunar New Year

Jan. 25 Egypt Egypt Stock Exchange Police Day


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Hong Kong Hong Kong Stock Exchange Lunar New Year

Jan. 26 Australia Sydney Stock Exchange Australia Day

Economic events calendar

DATE EVENT GMT EST5EDT

15-Jan

Sun JPY Domestic Corporate Goods Price Index (YoY) 23:50 18:50

CNY Actual FDI (YoY)

AUD Investment Lending

GBP Rightmove House Prices (YoY) 00:01 19:01

16-Jan

Mon CHF Producer & Import Prices (YoY) 08:15 03:15

EUR Italian Consumer Price Index - EU

Harmonized (YoY) 09:00 04:00

EUR Italian General Government Debt 10:00 05:00

JPY Tertiary Industry Index (MoM) 23:50 18:50

GBP Nationwide Consumer Confidence

NZD Non Resident Bond Holdings 02:00 21:00

CNY Real GDP (QoQ) 02:00 21:00

CNY Real GDP (YoY) 02:00 21:00

CNY Real GDP YTD (YoY) 02:00 21:00

17-Jan

Tue JPY Machine Tool Orders (YoY) 06:00 01:00

GBP Retail Price Index (YoY) 09:30 04:30

GBP Retail Price Index Ex Mort Int.Payments

(YoY) 09:30 04:30

GBP Consumer Price Index (YoY) 09:30 04:30

GBP Core Consumer Price Index (YoY) 09:30 04:30

EUR Euro-Zone Consumer Price Index - Core

(YoY) 10:00 05:00

EUR Euro-Zone Consumer Price Index (YoY) 10:00 05:00

CHF ZEW Survey (Expectations) 10:00 05:00

EUR Euro-Zone ZEW Survey (Economic

Sentiment) 10:00 05:00

EUR German ZEW Survey (Economic

Sentiment) 10:00 05:00

USD Revisions: Empire State Manufacturing

Activity Index 13:30 08:30

CAD Bank of Canada Rate Decision 14:00 09:00

AUD Westpac Leading Index (MoM) 23:30 18:30

GBP CBI Business Optimism

JPY Industrial Production (YoY) 04:30 23:30

18-Jan

Wed EUR Italian Trade Balance (Total) (euros) 09:00 04:00


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GBP Jobless Claims Change 09:30 04:30

EUR Euro-Zone Construction Output w.d.a. (YoY) 10:00 05:00

EUR Italian Current Account (euros) 10:00 05:00

USD MBA Mortgage Applications 12:00 07:00

USD Producer Price Index Ex Food & Energy (YoY) 13:30 08:30

USD Producer Price Index (YoY) 13:30 08:30

NZD Consumer Prices Index (YoY) 21:45 16:45

JPY Japan Buying Foreign Bonds (Yen)/Stocks

(Yen) 23:50 18:50

JPY Foreign Buying Japan Bonds (Yen)/Stocks

(Yen) 23:50 18:50

NZD ANZ Consumer Confidence (MoM) 00:00 19:00

AUD Employment Change 00:30 19:30

AUD Unemployment Rate 00:30 19:30

CNY Conference Board China November Leading

Economic Index 02:00 21:00

19-Jan

Thu EUR ECB Publishes Jan. Monthly Report 09:00 04:00

USD Consumer Price Index (YoY) 13:30 08:30

USD Consumer Price Index Ex Food & Energy

(YoY) 13:30 08:30

CNY MNI January Flash Business Sentiment

Survey 01:35 20:35

JPY All Industry Activity Index (MoM) 04:30 23:30

20-Jan

Fri JPY Coincident Index 05:00 00:00

EUR German Producer Prices (YoY) 07:00 02:00

EUR Italian Industrial Sales n.s.a. (YoY) 09:00 04:00

EUR Italian Industrial Orders n.s.a. (YoY) 09:00 04:00

GBP Retail Sales (YoY) 09:30 04:30

GBP Retail Sales Ex Auto Fuel(YoY) 09:30 04:30

CAD Consumer Price Index (YoY) 12:00 07:00

CAD Bank Canada Consumer Price Index

Core (YoY) 12:00 07:00

GBP Retail Sales w/Auto Fuel (YoY) 12:00 07:00

USD Existing Home Sales (MoM) 15:00 10:00

In conclusion

While European leaders insist that progress is being made, they have yet to

present a plan that appears effective in resolving short-term sovereign debt and

banking issues, as well as a feasible long-term plan for preventing another crisis in the

future.

All of this means that Forex traders aren’t yet on board, and it will be some time

before they feel comfortable with the situation.


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If you have any questions, please feel free to ask our support team by sending an Email to: [email protected] We will do our best to help you.

Yours,

Rita Lasker & Green Forex Group

Any additional information: http://www.ritalasker.com

Contact Information: http://www.ritalasker.com/contacts.htm

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