Forex news market:U.S. gross domestic product did not meet market expectations

While the U.S. gross domestic product did not meet market expectations for growth at a rate of 3.5% and showed only 3.2% compared with the previous quarter on an annualized basis, the report itself contains mixed data - both favorable and not. First, as we mentioned above, consumption grew by 4,4%. This, undoubtedly, the highest growth rate in this cycle recovery / recovery, which at full two percentage points higher than the previous best indicator of 2,4% recorded in the third quarter of 2010. Great contribution made durable goods, which increased by 21,6%. Also had great support net exports is mainly due to 13.6-percent decline in imports, which, in turn, was due to strong growth in the corresponding price deflator. Stocks have had a major negative impact on GDP of 3.7%.

Taking into account the rapid growth of the deflator of import prices, it seems surprising why the overall price index of GDP in the fourth quarter, according to estimates, fell to 0.3% compared to 2,1% in the previous quarter. It will be very interesting to see whether there will be a price index for the same low level in the upcoming revision.

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Forex news USD / CAD:Exchange rate could not confidently consolidate above parity

Currency exchange rate is above the moving averages with periods of 34, 55, 144 and 89, which are levels of support 0.9960/50 and 0.9940/30.
MACD histogram is located in the positive zone and above its signal line, continues to gradually rise, and thus sends a signal to buy USD / CAD.
Stochastic oscillator out of an overbought zone and forms the opposite signal, since the% K line crossed the line% D top-down and started to fall below it.
The contradiction in the signals that serve indicators, leads us to the fact that the most correct decision now - to stay out of the forex market and focus on the next strong support and resistance levels.
There are two options:
1. Break of 1.0030 resistance level and the growth of USD / CAD to the levels of 1.0070 and 1.0100/10.
2. Break of 0.9990/80 support level and lower USD / CAD to the levels of 0.9950, 0.9930 and 0.9900.
Resistance levels: 1.0030, 1.0050, 1.0070, 1.0100/10
Current Price: 1.0003
Support levels: 0.9990/80, 0.9960/50, 0.9940/30, 0.9900

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Forex news market:Rising food prices - the main threat to the developing world

Root incredibly strong protests in North Africa in recent weeks, without a doubt is the political plane, including the desire for more rights and freedoms. However, one must always bear in mind that question often lies in the plane of the economy, spurred by the recent acceleration of growth in food prices. The index of food prices, tracked the UN has reached a record level last month, surpassing the previous peak in the summer of 2008, this index has almost doubled since 2005.

For most developing countries, food prices are of great importance. For example, consumers in the top four BRIC countries spend around 19% of their income on food, according to EuroMonitor International, while U.S. consumers spend only 6%. In less developed countries, this proportion could easily passes for 50%.

This jump in prices for agricultural products on the demand side has reasons for the sharp increase in population and economy, and the supply side - a series of extraordinary events such as the horrific flooding in Australia and problems with the weather in Russia. In Asia, rice prices, the main product of the region, in some countries has reached record levels. Sugar prices have almost doubled during the year and rose more than fourfold since 2003. Wheat prices have risen 80% since the middle of last year. Egypt alone imported 60% of its needs for wheat last year, and could become the largest importer of wheat (it needs to feed 79 million mouths to feed).

To raise prices on products are the key to developing economies. In the near future there is potential for cross-flow of capital from developing economies in the developed world that was characteristic of the first month of this year. In respect of the forex market, it can serve as a supportive factor for the major reserve currencies in relation to non-redundant.

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Forex news Euro:Raising rates, the ECB can kill healing

Preliminary data for the January inflation rate (which may be revised) suggest an annual growth rate of prices by 2,4%, which is faster than 2.2% a month earlier. That was slightly above expectations (some polls from news agencies have assumed an increase of 2,3%), but it is not surprising, as December's original score, which is significantly higher than forecasts.
Nevertheless, the penultimate release in which inflation exceeded targets of 2%, providing a more hawkish tone of the central bank at a meeting in January. This has resulted in a stronger euro a month in conjunction with some of the factors that led to the abrupt closing of short positions as traders greatly mistaken about the fate of the single currency.
However, the reaction of the ECB a bit more complicated than usual. Not Peripherals pushes inflation. Inflation rate remains high here, especially in light of the significant fiscal measures, but there is still a good chance that inflation will slow down when one-time increase in consumer tax will cease to affect performance.

Meanwhile, inflation is going up in Germany (now 1.9%), that's where lies the main problem. On the one hand, it is not so bad. To regain some competitiveness, peripheral economies have seen their prices rise toward German levels. In Europe, in particular the rigidity of nominal wage levels mean that it is not so easy to achieve lower prices, so that high inflation in Germany - is another problem. The problem is that the response of the ECB (rate increase) may affect this process further weakening of economic activity in the periphery. Europe seems to be facing at the moment with the right type of inflation, but ECB will not allow it to develop.

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Forex news GBP:Growth is expected British inflation is not surprising

It is not surprising to see further growth in inflationary expectations in the UK, research YouGov / Citi said the growth of expected inflation for the year from 3.5% to 3.6%. In fact, you could say that this is a good result, given the headlines about the rise of VAT in January, has grown along with the price of fuel. Expected trends after the study is best correlated with inflation over the last month that it was appropriate, given that the CPI data are published with a delay of several months. In other words, it may not surprise anybody, but the greatest impact on inflationary expectations, providing the current level of inflation.

Thus, we can say that the Bank of England should not worry about rising inflationary expectations, given that they largely reflect the current high inflation. Like many others, you can in this situation, just watch. Currently, there are few real signs that earnings are going up, average weekly earnings rose by about 2% - half of the 4% rate recorded in the period between 2005-07. Pricing now - it's more the prerogative of corporations. That's where there is great danger in the coming year, as high inflation is increasingly taking root.

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Forex news:NZD/USD Currency drawn on a triple top, then began to be corrected

Exchange rate still is above the moving averages with periods of 34, 55, 89 and 144, which are the support levels 0.7675 and 0.7660.
MACD histogram is located in the positive zone, but below its signal line, continues to gradually decline, and thereby sends a signal to sell the New Zealand dollar.
Stochastic Oscillator is in the neutral zone and generates a similar signal as the% K line falls below the% D.
Therefore, we expect that the correction will continue and its potential targets are located at 0.7660/40 and 0.7610/00.
Resistance levels: 0.7740, 0.7765, 0.7790
Current Price: 0.7701
Support levels: 0.7675, 0.7660, 0.7640, 0.7610/00

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Forex news:Retail sales in Germany fell in December

Drop in sales in December at 0.3% m / m means that sales declined last four months out of five. In fact, sales disappoint markets are five times during this time. Much has been done in order to push Germany over the consumer economy, partly to help reduce the balance of payments surplus, but these data do not indicate any progress in this direction, at least at the end of the year.

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