USD Lower Despite Weaker Asian Equity Market Trade

Daily Forex Fundamentals | Written by Easy Forex | Aug 25 09 12:18 GMT |

FX Highlights USD is trading mixed to lower despite an uptick in risk aversion, the Shanghai Index traded 5% lower, the Shanghai Index was pressured by a rumor of Chinese bank capital adequacy shortfalls, USD demand was limited by firmer equity trade in Europe and anticipation of higher opening for US equities, UK mortgage approvals rise sharply in August, Swiss nonfarm payrolls fall in Q2 along with consumption, ECB officials warn about uncertain outlook for EU recovery, oil prices decline as Asian equity markets are hit by news from China and by uncertainty about the global recovery, China's Premier says the recovery faces many uncertainties Focus turns to today's release of Case-Shiller home price index and consumer confidence Rumors circulated in Asian trade that a Chinese bank may need to raise capital to meet the recent change in China's bank capital requirements, JPY higher Japans Finance Minister Yasano warns that the current fiscal conditions in Japan will not allow the Democratic Party to carry out its spending plans if elected, Japan's election is August 30th and polls suggest a victory for the Democratic Party UK mortgage approvals rise to 38,181 from 35,564 in July, GBP lower Swiss Q2 nonfarm payrolls fall 0.4%, this marked the first fall in six years, UBS July Swiss consumption indicator falls to 0.766 from 0.951 last month, CHF higher ECB's Gonzalez-Paramo says EU economic outlook remains uncertain, ECBs Mersch said that EU recovery depends on global demand and he warned about succumbing to optimism about the recovery, German final Q2 GDP expanded by 0.3%, EUR higher President Obama will re-appoint Bernanke as chairman of the FOMC Midwest factory index for July rose for the first time in over a year powered by a surge in auto production US equity markets set to open mixed, European equities fractionally higher, Nikkei closed 84 points lower Upcoming Events US- Tuesday, Case-Shiller home price index will be released expected at -16.6 compared to -17.1 last month along with August consumer confidence expected at 48 compared to 46.6 last month CAN- Tuesday, no major Canadian economic data is due for release today By Michael J. Malpede Easy Forex Michael J. Malpede is Chief Market Analyst with Easy-Forex® and has previously been featured on Bloomberg TV, Bloomberg radio, Reuters, MarketWatch, Wall Street Journal, Chicago Tribune, Chicago Sun Times, Toronto Star and Nikkei press. In analyzing the markets, he draws from 29 years of Foreign Exchange Research as a Foreign Exchange Analyst. Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. This report is provided by Easy- Forex® for informative purposes only. In no way it is a recommendation by Easy-Forex® for you to engage in any trade. It is your sole responsibility and you will have no claims with regards to this report against Easy-Forex®. If you do not agree to this, you are strongly advised not to use this report. Hence, Easy-Forex® shall not be held responsible for any outcome of trading decisions, in regards with this report or similar reports.