Forex News

ANKARA, Oct 25 (Reuters) - Turkey's central bank said on Monday it would buy up to a maximum additional $300 million in foreign exchange auctions between October 25-27 CBTQ . The bank looks to build its dollar reserves and contain a strengthening lira IYIX= and it purchased a total of $700 million last week from the market including an additional $500 million. No auctions will be held on Thursday and Friday due to a national holiday. ((selcuk.gokoluk@thomsonreuters.com; +90 312 292 7012; Reuters messaging: selcuk.gokoluk.thomsonreuters.com@reuters.net))

The main moving sentiment in the market this week is the weekend G20 meeting and the new pledges from member nations which all sided to the disadvantage of the dollar. The Group of 20 finance leaders in South Korea pledged to avoid intervening in the market to weaken their currencies to gain trade advantages, which gave the dollar the bearish bias on expectations in the market that nations will refrain from unilaterally selling their currencies versus the dollar at least into next month when the nations’ leaders meet. This sentiment worked against the dollar and weakened it further adding to the quantitative easing prospects and weakening recovery outlook. The pledges rather calmed markets and eased the jitters seen recently over prospects for a new round of currency wars, and adding to that it supported expectations for China to move faster on the yuan revaluation which will also be good support for global trade and the recovery. The dollar was moving bearishly since this...

The main moving sentiment in the market this week is the weekend G20 meeting and the new pledges from member nations which all sided to the disadvantage of the dollar. The Group of 20 finance leaders in South Korea pledged to avoid intervening in the market to weaken their currencies to gain trade advantages, which gave the dollar the bearish bias on expectations in the market that nations will refrain from unilaterally selling their currencies versus the dollar at least into next month when the nations’ leaders meet. This sentiment worked against the dollar and weakened it further adding to the quantitative easing prospects and weakening recovery outlook. The pledges rather calmed markets and eased the jitters seen recently over prospects for a new round of currency wars, and adding to that it supported expectations for China to move faster on the yuan revaluation which will also be good support for global trade and the recovery. The dollar was moving bearishly since this...

The euro area continues to experience steadying recovery when compared to other nations, which comes ironically as the area suffers strong downside pressures from the debt crisis and adopted austerity measures.  According to reports today, the third quarter recovery seemingly continued to be witnessed in the area despite the expected slowing when compared to the second quarter. Industrial New Orders in August surged 5.3% higher by 24.4% from a year earlier. The rally reversed the previous month's drop of 2.4% and extended beyond the expected rise of 2.2% and 19.3% on the year. 

UK reported a slightly less than anticipated weakening in the housing market for September, where BBA loans for house purchases dropped slightly less than anticipated to 31104 from the previously revised 31781 which was revised to the upside from the original estimate of 31767. The data was though still weak and reflected the decelerating pace of recovery in the sector it was still stronger than the expected decline to 31000. 

The Australian economy issued its producers price index for the three months ending September 30, which rose 1.3%, compared with a previous reading of 0.3% in the previous three months, whereas the anticipations referred to 0.5%.  Moreover, the annualized producers price index rose 2.2% in the third quarter of the year, compared with a previous 1% a year earlier, while the actual reading came betters than expectations that estimated of 1.4%. 

Wells Fargo & Company reported today its third quarter earnings for the year 2010 where managed to beat analysts' estimations by reporting better than expected diluted earnings per share at $0.60. The company reported total revenues of $20.87 lower than both previous quarter of $21.39 Billion and year earlier quarter of $22.47 Billion, yet the company managed to record net income of $3.34 or $0.60 diluted earnings per share which is higher than both prior and year earlier quarters' net income, and also higher than the estimated $0.564 diluted earnings per share. Wells Fargo & Company's Tier 1 Capital ratio is 10.9% higher than year earlier of 10.6% and quarter earlier of 10.5%, while its Tier 1 Common Equity ratio is 8.0% higher than year earlier of 5.2% and quarter earlier of 7.6% while its current Price/Earnings stands at 10.36.

BEIJING, Oct 24 (Reuters) - U.S. Treasury Secretary Timothy Geithner on Sunday discussed economic ties with Chinese Vice Premier Wang Qishan in a brief meeting in eastern China. Geithner and Wang, who are designated as special representatives of their respective presidents on U.S.-China economic issues, met at Qingdao airport, a stop-off for Geithner after Group of 20 meetings in South Korea. "The two sides exchanged views on U.S.-China economic relations and the preparation for the (G20) Leaders' Summit in Seoul," according to a statement emailed by the U.S. embassy in Beijing. It did not elaborate. The airport meeting in China came at the end of Geithner's trip to the Group of 20 finance ministers and central bank governors meetings in Gyeongju, South Korea, where officials agreed to refrain from competitive currency devaluations and reduce current account imbalances.  The United States has been pressuring China to allow its yuan to rise more rapidly in response to market forces. Last week, Geithner delayed a semi-annual report to U.S....

Oct 24 (Reuters) - The Group of 20 major economies vowed to avoid competitive currency devaluations and shifted more power to emerging economies at the IMF, taking steps that analysts viewed as important for averting trade wars and promoting flexible exchange rates. Following is a summary of reserves reports issued by analysts about the G20 communique and outcomes following the gathering of finance ministers and central bankers.  --------------------------------------------------------- THOMAS STOLPER, CHIEF CURRENCY STRATEGIST, GOLDMAN SACHS, LONDON "The outcome of the G20 meeting clearly shows progress in the global rebalancing policy debate. In particular the FX relevant sections have become a lot more prominent and all the key issues have found some mention, including current account positions, protectionism, capital controls and exchange rate flexibility. "At the same time, this is not a Plaza-style statement that signals a broad agreement on the role currencies have to play in the global rebalancing. Just taking the first sentence of the FX bullet, the language is not tight enough to...

(Reuters) - Several U.S. lenders including JPMorgan Chase and Bank of America, and their legal advisers, have started talks with state attorneys general to resolve a probe of foreclosure practices, the Wall Street Journal said. Executives and lawyers of JPMorgan and Bank of America have separately met with the Florida Attorney General last week, the Journal said, citing people familiar with the matter. JPMorgan and Bank of America could not immediately be reached for comment by Reuters outside regular U.S. business hours. All 50 U.S. states have started a joint investigation of the mortgage industry, focusing on allegations that for years banks have not reviewed documents properly or have submitted false statements to evict delinquent borrowers. (Reporting by Sakthi Prasad in Bangalore; Editing by Dhara Ranasinghe)