Daily Forex News March 21st 2013 The US Dollar remains in range as the Fed repeated its recent message after the Federal Open Market Committee meeting overnight. Stocks strengthened with the DOW hitting a historical intraday high of 14,546 before closing firmly at 14,511. As expected the Fed left the policy rate unchanged and the asset purchases at 85 Billion Dollars Economic data released in the Asian session was also risk supportive. New Zealand GDP rose more than expected by 1.5% quarter on quarter in Q4, versus consensus of 0.9%. HSBC Chinese Manufacturing Purchasing Managers' Index rose more than expected to 51.7 in March versus consensus of 51.2. The data suggested that recovery in China is still underway even though the pace is modest. However, data from Japan was not too encouraging. Japan reported the eighth consecutive monthly trade deficit, at 1.1 Trillion Yen in February, worse than expectation of a 1 Trillion deficit. In the Eurozone Cyprus is working on a "plan B" to include a "structural investment fund", which would be reinforced by various provident funds and other sources. The fund could also link to a bond issue and natural gas prospects. Russia's Finance Ministry reported that Cyprus is seeking a 5 Billion Euro loan in addition to a five-year extension of a loan of 2.5 billion that matures in 2016, but no progress have been made so far.

1. Daily Forex News March 21st 2013
FCTOFX: The US Dollar remains in range as the Fed repeated its recent
message after the Federal Open Market Committee meeting overnight.
Stocks strengthened with the DOW hitting a historical intraday high of 14,546
before closing firmly at 14,511. As expected the Fed left the policy rate
unchanged and the asset purchases at 85 Billion Dollars. Policymakers
acknowledged improvements in economic developments since the January
meeting but indicated the still-high unemployment rate would be a
hindrance for the Fed to achieve its dual mandate. At the press conference,
Fed Chairman Bernanke stressed that "one thing we would need is to make
sure that this is not a temporary improvement". He also talked about the job
market and said that the "still-high unemployment rate in combination with
relatively low inflation, underscores the need for policies that will support
progress toward maximum employment in the context of price stability".
Economic projections were revised modestly lower, showing less growth and
inflation but a better job market.
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2. Daily Forex News March 21st 2013
The top end of the range for 2013 real GDP growth tightened to 2.3-2.8%,
compared to 2.3-3.0% as of December. The core inflation range eased to 1.5-
1.6%, from previous estimates of 1.6-1.9%. The unemployment rate was
revised lower to 7.3-7.5% from 7.4-7.7% previously. As in December, the
majority of meeting participants continue to expect the first rate hike to
come in mid-2015.The modest downgrade of staff projections was to reflect
restrictive fiscal policy and downside risks to growth.
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3. Daily Forex News March 21st 2013
Economic data released in the Asian session was also risk supportive. New
Zealand GDP rose more than expected by 1.5% quarter on quarter in Q4,
versus consensus of 0.9%. That's also much better than the prior quarter's
0.2% quarter on quarter rise. Also, it's nearly twice as strong as the Reserve
Bank of New Zealand’s forecast of 0.8%. It's believed that the data would
trigger the central bank to rethink their position of keeping rates unchanged
at least until next year. On the other hand, the HSBC Chinese Manufacturing
Purchasing Managers' Index rose more than expected to 51.7 in March
versus consensus of 51.2. The data suggested that recovery in China is still
underway even though the pace is modest. And, the weaker than expected
reading back in February was much likely a result of the lunar New Year
holiday. HSBC noted that the Chinese economy is "still on track" for a
"gradual growth recovery" and "inflation remains well behaved, leaving
room for Beijing to keep policy relatively accommodative".
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4. Daily Forex News March 21st 2013
However, data from Japan was not too encouraging. Japan reported the
eighth consecutive monthly trade deficit, at 1.1 Trillion Yen in February,
worse than expectation of a 1 Trillion deficit. Exports dropped 2.9% year on
year while imports rose 11.9% year on year. Exports to China dropped 15.8%
year on year while exports to Asia dropped 5.2% year on year, and exports to
the EU also dropped 9.6% year on year. Though exports to the US rose 5.7%
year on year, The overall picture indicates that the impact of the recent
depreciation of the yen is yet to be seen and will support the case for the
Bank of Japan to weaken the yen further to boost exports.
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5. Daily Forex News March 21st 2013
Cyprus has announced its banks will remain closed until at least Tuesday
after the parliament rejected the rescue plan with the bank deposit tax
proposal. It's reported that Cyprus is turning to a new "plan B" which would
be discussed today. The proposal might still include the controversial bank
levy. But would also include a "structural investment fund", which will be
reinforced by various provident funds and other sources. The fund could also
link to a bond issue and natural gas prospects. Russia’s Finance Ministry
reported that Cyprus is seeking a 5 Billion Euro loan in addition to a five-year
extension of a loan of 2.5 billion that matures in 2016, but no progress have
been made so far.
Looking ahead, PMIs from the Eurozone will be a major focus while the UK
will release retail sales and public sector net borrowing. Canadian retail sales,
US jobless claims, housing data and the Philly Fed survey will all be featured
in US session.
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6. Daily Forex News March 21st 2013
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The new retail forex trading offering from Forex Currency Trading Online
Ltd., www.FCTOFX.com, has been developed out of the retail customer’s
desire to profit from managed Forex trading, without having their capital
held, managed and controlled by an unknown or unregulated third-party.
Our Forex trading software is fully adaptable to suit your risk profile, with
daily weekly and monthly maximum drawdowns set from just 1% to 25%. We
currently have 14 co-existing strategies, trading over 17 currency pairs,
across all 3 trading sessions. This software system is designed to be fully
automated, however is manually monitored 24 hours a day, being upgraded
and modified to take full advantage of changing market conditions.
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