USD Sharply Lower, ADB Raises China's Growth Forecast

Daily Forex Fundamentals | Written by Easy Forex | Sep 22 09 12:29 GMT |

FX Highlights USD is trading sharply lower as the Asian Development Bank raises China's growth forecast equity markets trade higher and risk appetite returns, EUR trades at a one-year high versus the USD and a five month high versus the GBP, gold rises above $1000 an ounce and crude oil prices trade higher, CHF supported by report of rising Swiss exports and upgrade of Swiss GDP forecast, New Zealand dollar trades at a 13 month high versus USD and an 11 month high versus the JPY after the release of report that New Zealand's current account deficit shrank to its narrowest in more than four years and dairy giant Fonterra raises its payout to farmers, USD is also pressured by speculation that the Fed will maintain accommodative monetary policy well into 2010 and that G-20 may call for reduction of global trade imbalances that may cause further USD weakness Focus turns to today's release Canada's retail sales and the start of the FOMC meeting, G-20 meeting set for September 24th and 25th focus on proposed new financial market regulation and global imbalances The Asian Development Bank sees China's 2009 GDP at 8.2% in 2009 and 8.9% in 2010 raises developing Asia's growth forecast to 6.4% from 6%, warns that withdrawing stimulus to early could lead to a double dip recession The New Zealand dollar surged in reaction to report that New Zealand's current-account fell to 5.9% of GDP, trade expected GDP debt ratio of -7.2% and Fonterra Dairy raised its payout to farmers by 12% The Swiss government forecasts 2009 GDP at -1.7% compared to the original forecast of -2.7%, expects GDP to expand in 2010, Swiss July trade surplus widens as exports rise 2%, imports fell 2.5%, CHF higher UK PM Brown says continued stimulus is needed for the global recovery and he does not see a quick exit strategy, GBP higher ECB Weber says interest rates are appropriate and FX not out of line with stronger EU data, EUR higher Pay-Net says that Canada's commercial lending is healthier than the US, CAD higher US equity markets set to open higher, European equities 1% higher, Nikkei closed 73 points lower Upcoming Events US - Tuesday, no major US economic data is due for release, FOMC begins a two day policy meeting CAN - Tuesday, July retail sales will be released expected at 0.6% compared to 1% last month 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.