Although Deficit Still Persists In Some Asian Countries The Trade Balance Is Improving

Daily Forex Fundamentals | Written by ecPulse.com | May 26 09 07:36 GMT |

Philippine and New Zealand released today their trade balance as well as the exports and imports, as it indicated that although deficit still persists in both countries the trade balance is improving therefore confirming that the worst part of this economic crisis might of ended and that its time for stability and recovery to take place. New Zealand's economy is still suffering from the worst global crisis since the Great Depression as global demand has dropped significantly in recent months since consumption worldwide was badly hurt determining commodities prices to fall by 30% in April from the same month last year. The report has shown that the deficit in the trade balance of goods during the month of April witnessed a slight contraction to 4108, compared to the previous revised reading which showed a deficit of 4676. This resulted from a decline in both exports and imports as the exports reached to 3.65 billion New Zealand dollars compared to the month of March when exports reached to 4.04 billion New Zealand dollars, therefore exports fell 4.6% from the same period last year. Weak global demand had a considerable affect on New Zealand's economy being one of the first countries that fell into the spiral of global recession since New Zealand's exports of raw materials such as oil and aluminum declined, but imports also fell as in April they reached to 3.37 billion New Zealand dollars compared to the month of March when imports reached to 3.72 billion New Zealand dollars and also less than the expected 3.53 billion New Zealand dollars. With the decline in business confidence in New Zealand during the first quarter of this year to its lowest levels since 1974 have increased rates of layoffs and the unemployment rate which was reflected on the behavior of consumers determining them to reduce spending that dropped driving imports to decline by 18% compared to the same period last year the highest decline since records began in 1962. Philippine today also released its report on the trade balance during the month of March where the actual reading showed the deficit narrowed to 363 million dollars compared with the month of February when it showed a deficit of 552 million dollars. On the other hand imports fell in March to 3269.4 million dollars declining by 36.2% compared with the previous value of 3058.8 million dollars recorded during the previous month when it declined by 31.9%. However since export levels are still near their lowest levels as global demand has not seen enough improvement we cant confirm that the economic crisis had ended yet most probably the worst part of this economic crisis might of ended and that its time for stability and recovery to take place. China's economy is expected to be one of the first to recover from this economic crisis since economic indicators showed some stability therefore the Chinese government predicted a growth rate of 8% at the end of this year, and the recovery of such a huge economy the third largest in the world will have a significant role in supporting the global demand and could be the real starting point for the Asian region In more economic data South Korea announced its consumer confidence index during the month of May coming at 105.0 which is better than the previous reading of 98.0, and the reason behind the improvement in consumer confidence is the government stimulus plan which aimed to support internal growth by reducing taxes and supporting companies by provide liquidity through banks, in addition to the reduction in interest rates by the central bank attracting more investments to the country. Ecpulse disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk

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Morning Forex Overview

Daily Forex Fundamentals | Written by Dukascopy Swiss FX Group | May 26 09 07:33 GMT |

Previous session overview The euro fell against the yen and dollar in Asia Tuesday after a report in the U.K.'s Daily Telegraph about Germany's bad loan problems added to worries over the gloomy economic outlook in Europe, causing Japanese investors to sell the European currency. The Daily Telegraph reported that Germany's financial regulator, BaFin, has warned that the toxic debts of the country's banks will blow up "like a grenade" unless they take advantage of the government's bad bank plans to prepare for the next phase of the crisis. The report grabbed the attention of Japanese investors who had until then been focused on the U.S. economy, dealers said. They pushed the euro down by four-fifths of a yen to JPY132.05 from its levels in New York late Monday. Tuesday's Asia session got off to a slow start, with many pairs continuing to trade in a tight consolidation range following the US holiday. But risk would quickly come off the table, as traders took the opportunity to take profits on recent gains. EURUSD felt the heat, with the pair barreling back through the USD1.40 handle to deal below USD1.3950. The Pound was little changed with the market recovering from Asian losses during a quiet day of trade. Reports that China FX managers were вЂ˜negative' on the Pound did little to dent the bullish tone the pair has recently developed. The Australian dollar was weaker in Asian trade late Tuesday as the U.S. currency selloff of the past week eased to a halt amid thin volumes in foreign exchange markets. Market expectation The euro is lower with some U.S. dollar bids before a scheduled U.S. Treasury sale of two-year notes Tuesday. Traders paused in the sharp selling of the dollar last week, which was prompted in part by worries about the longer-term sustainability of the U.S.'s triple-AAA credit rating. For EURUSD Support seen placed toward USD1.3950, with stops positioned on a break of USD1.3940. A break here can open a deeper move toward USD1.3920 ahead of USD1.3900/1.3890. Offers USD1.3995/05, a break above may allow for a move back toward USD1.4020/25 ahead of USD1.4050/60. Looking ahead, traders said the U.S. unit could face further downward pressure against the yen and the euro if demand for U.S. government bonds proves weak in the coming auctions. Such results could fuel worries over Washington's ability to keep financing its ballooning budget deficit, dealers said. Concern could also grow that long-term U.S. interest rates - which move in the opposite direction from bond prices - would rise to the detriment of the nation's economy if demand for U.S. bonds falls, dealers said. The greenback could then fall to a three-month low of JPY93.00. It may also slide as much as to USD1.4050 per euro, dealers said. Dukascopy Swiss FX Group Legal disclaimer and risk disclosure This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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