Chronicles

July 31, 2008

Fed Announcement and ADP Helps to Lift the Dollar

Filed under: Forex Trading — WPOMATIC @ 2:44 pm

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Positive economic data has continued to drive the US dollar higher. Payroll provider ADP reported a 9k rise in jobs this month. As one of the leading indicators for non-farm payrolls, this along with stronger consumer confidence numbers is good news going into this Friday’s non-farm payrolls report. However don’t expect positive [...]
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Dollar Rally Could Just Be Beginning….

Filed under: Forex Trading — WPOMATIC @ 2:44 pm

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The recovery in the US dollar and in equities has been very impressive. In yesterday’s Daily Fundamentals, I said that “despite today’s move, the dollar’s rally may not be over.” Gold continues to provide a strong indication of the market’s risk appetite and dollar sentiment. If you want to figure out if [...]
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Currency Trader Wins CNBC Challenge

Filed under: Forex Trading — WPOMATIC @ 2:44 pm

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CNBC has officially announced the winner of their Million Dollar Portfolio Challenge and GUESS WHAT, the number 1 currency trader is the winner of the entire contest!
I am thoroughly excited because it certainly adds an extra ounce of credibility to the market that I love the most!
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In the Financial Papers: Today’s Top Forex News 07.29.08

Filed under: Forex Trading — WPOMATIC @ 2:44 pm

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Here is the “In the Financial Papers Radio Broadcast” (Length: 3:47 minutes). The player should load automatically. Please let me know if you like it. Contact Kathy
Read my Daily report on DailyFX.com
In the Financial Papers:

 
Podcast Covers:
Dollar Rallies on Stronger Consumer Confidence
Merrill to Sell $8.5 Billion of Shares as Thain Unloads Money-Losing CDOs
Home Prices in 20 [...]
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Strong ADP Pushed the Greenback Up

Filed under: Forex Trading — WPOMATIC @ 2:44 pm

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Yesterday, the greenback saw mainly volatile sessions against its currency counterparts. After the significant appreciation the USD went through on Tuesday, it managed to preserve its relatively high rates.

The USD kicked off yesterday’s trading session with an unexpected boost, as Automatic Data Processing announced that July’s Nonfarm Employment Change report showed a gain of 9,000 jobs in the private sector, well above expectations for a loss of 58,000 jobs. The USD then rose to a 4 week high against the EUR, as the EUR/USD dropped to 1.5523. However, soon after, a dramatic rebound in Crude Oil prices took place. Oil rose by $4 a barrel, crossing the $127 level, and drove the USD back to its original rate before the Employment Change publication.

Today has the makings for a huge news day in the US and for the Greenback. At 12:30 GMT we will likely see strong volatility, as 4 different leading indicators are due. The most important of the events will be the Advanced Gross Domestic Product, which is forecasted to reflect a 2.2% raise as opposed to the same time last year. Another significant indicator will be the U.S Unemployment Claims that are expected to decrease from 406K in the previous week, to 395K.

As most of today’s U.S data is expected to give positive figures, traders must keep in mind that tomorrow the Nonfarm Unemployment Change, one of the most influencing USD indicators, is forecasted by analysts to show an increase of 75,000 jobless individuals. Such results should outcome in a massive volatile session in the next couple of days as markets should experience large fluctuation which could deliver some fantastic opportunities to gain profits. Traders are well advised to take advantage of it and end this week with nice profits.

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ADP Nonfarm Payrolls on Tap

Filed under: Forex Trading — WPOMATIC @ 2:44 pm

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Yesterday was an amazing trading day for the USD. The USD saw bullish trends against all its currency counterparts. The increase in the greenback’s value was most notable against the EUR as the cross feel from above 1.57 to under 1.56 and against the GBP as the cross fell from the midd 1.99’s to under 1.98. The Dollar’s rally was sparked by the better than expected S&P/CS HPI Composite-20 and Consumer Confidence Index. Simultaneously, the Crude Oil prices fell sharply, which also helped the USD gain strength.

The two economic releases that were announced yesterday both helped the bullish trends by the USD. The S&P/CS HPI Composite-20, which measures the change in the price of single-family homes in 20 metropolitan areas did drop but less than expected. More assurance was sparked by the Consumer Confidence Index which was forecasted to be lower than the previous reading, but was actually higher at 51.9.The greenback also took advantage of the drop in Crude Oil prices that occurred because of beliefs that record prices are eroding the world’s thirst for energy. The strength in the American economy was shown by the Dow Jones and S&P 500 gains of over 2% yesterday.

On tap from the US today, all eyes will be on the very important ADP Nonfarm Employment Change. This estimate by ADP, which measures the estimated change in the number of employed people during the previous month, excluding the farming industry and government, was off last month and was valued at a very low -79K. Today’s release is expected to be negative, but not as low as the previous reading and should help strengthen the USD. The other impactful release today will be the Crude Oil Inventories, which are expected to remain negative, but not as low as last week, which will be very interesting for the Crude Oil prices that are on a continuous bearish trend.

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Fed Losing Control Over Monetary Policy

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China May Dip Into Reserves

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Ramos is Building Towards a Champions League Push, but is this the Year for a Top Four Finish?

Filed under: Sports-Soccer — WPOMATIC @ 2:44 pm

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juande-ramos1 Ramos is Building Towards a Champions League Push, but is this the Year for a Top Four Finish?

It was only four months ago that the disciples of White Hart Lane were celebrating in their thousands at Wembley after a glorious Carling Cup Final triumph over London neighbours Chelsea, but already the eleven heroic warriors who battled to victory on that day have depleted into a number which will be able to be counted on just one hand after this week’s transfer activity is done with.

Of the fourteen players who played some part in staging a highly memorable comeback to topple Avram Grant’s Blues’ on the club’s special day at the national stadium in March, five have already departed to fellow Premier League clubs in seek of further opportunities, whilst Dimitar Berbatov and Younes Kaboul look set to follow suit this summer.

Those who have already left are inspirational forward Robbie Keane, attacking midfielder Steed Malbranque and flying full-back Pascal Chimbonda, as well as midfielder Teemu Tainio and goalkeeper Paul Robinson. Kaboul is being courted by Sunderland, and is expected to complete a move either there or elsewhere this week, whilst Berbatov has attracted significant interest from Manchester United as well as telling his current employees that he wants to move on.

The Bulgarian will leave a huge void up front at the club if his dream transfer does materialise in the next month, after dazzling his way to being a fans favourite with some sublime goals and mesmerizing trickery in his two years there, but so far the sad departure of fellow striker Robbie Keane has had the most impact on the team’s morale.

The Irish forward has been one of the most praised strikers in the Premier League in the last few years, and his favoured creative role of playing just off the front man is sure to add to Liverpool’s attacking threat in this coming campaign. But Liverpool’s gain will be Tottenham’s massive loss. Keane was their captain, and his consistent goalscoring record may be heavily missed if Darren Bent struggles to handle the burden of being the club’s only senior recognised striker. With Berbatov also seeking a summer move to a more established club, Daniel Levy and his fellow board members need to sort out a significant signing in that area of the pitch very soon.

But whilst Tottenham have been waving goodbye to some of their star performers from the past few seasons, Juande Ramos has been quietly shaping a squad of players who he believes will challenge the dominance of the big four in the future. And if he managers to capture one or two quality strikers to supplement the quality attacking midfield players he has already bought this summer, his ambitions have every chance of becoming reality, especially with Arsenal looking threadbare and Liverpool struggling for signings.

Luka Modric, who performed excellently for Croatia during June’s European Championships, arrived before the tournament for a hefty fee, but after watching his terrific displays it looks like Tottenham moved at exactly the right time - when the player hadn’t yet proven his class to the onlookers of Europe, which would have resulted in a price increase. Tottenham may well have got Modric on the cheap.

And Barcelona’s young prodigy, Giovani Dos Santos, has also arrived, though for a smaller fee, but his potential is undoubted by close followers of the Spanish leagues. He scored a hat-trick in his farewell appearance for the Catalan club, and Spurs supporters will be hoping for more of the same when he begins playing competitively for them against Middlesbrough on the opening day of the campaign.

Both of these starlets are widely renowned as exciting players who have the ability to light up the Premier League, but this season may not be the moment for that to happen. Foreign imports often need a few months, or even an entire season, to fully settle into their new life and surroundings in England. And that’s not even to mention how tough settling into the league itself can be. Class players always make the jump eventually though.

So Tottenham fans should not expect immediate impacts from their two new flair players, but in the future they could well become two of the most dangerous attacking threats to opposition defences. They are two more pieces which have been added to Ramos’ jigsaw, and quite big ones at that.

The puzzle is not yet complete though. Because whilst Ramous has bought in the experienced PSV Eindhoven goalkeeper Heurelho Gomez, whose proudest moment was saving numerous penalties in a Champions League quarter-final shoot-out victory over Lyon in 2005, quality defenders and forwards must be a serious priority for Ramos at this stage.

Pascal Chimbonda has left for Sunderland, so a right-back replacement is needed for him. And whilst the midfield may carry startling quality, the overall defending of the team has been heavily questioned throughout recent campaigns. Ledly King should steady the ship on his arrival from a frustratingly lengthy injury problem, and Jonathan Woodgate showed the necessary signs of promise in his debut season to suggest he could be an excellent partner for the club captain.

If those two stay fit for the majority of the time then the defence should leak nowhere near the amount of goals it did last season. It looks as though the talented but clumsy centre-back Michael Dawson may have to play a bit-part role in the upcoming campaign though.

Ramos’s era is already taking significant shape now. He won the clubs’ first trophy since 1999 with somebody else’s squad, and now he is carefully building his own to achieve success in the most important competition of all – the league. Whether his attacking signings will spark a major challenge on the top four this season is still in question, but with a bit more reassurance in the defence and at least two new arrivals in the striking department there is no reason why this season can be another successful one for Tottenham and their Spanish headmaster.

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Wayne Rooney To Star In Hovis Advert

Filed under: Sports-Soccer — WPOMATIC @ 2:44 pm

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wayne-rooney-puppet2 Wayne Rooney To Star In Hovis Advert

Sometimes you can’t make this stuff up. Wayne Rooney has signed an advertising deal to be the new face of Hovis, an English bread company.

Hovis is better known for its TV commercial than its actual bread. Its “The Boy On The Bike” commercial is the most popular TV advertisement in British history. Created in 1973, there are millions of Brits around the world (myself included) that remember the dulcet tones of the commercial sweeping across the living room as a northern lad pushed his bike up the cobbled street.

For many, it’s the quintessential image of northern England right up there with TV soap operas (and institutions) such as Coronation Street and Emmerdale and the classic radio serial, The Archers, which has been on radio since 1950 and incredibly has published more than 15,500 episodes.

So along comes Wayne Rooney, the quintessential northern lad of English football, to evoke memories of the Boy On His Bike by being featured in a new commercial set in Liverpool. The new advert will be in the spirit of the 1973 classic with a storyline that’ll include key moments in British history over the last 100 years.

Rooney will be paid £150,000 for the advert, which is much more than what the boy on his bike originally got, I’m quite sure.

Let’s hope the Hovis advertising deal sparks some great ideas for a future episode of I’m On Setanta Sports!

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