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Predict NFP and win!!! Dear clients! Take part in “Predict NFP” contest, guess the non-farm payrolls indicator, which will be published at 12:30 GMT 07.10.11, and win an exclusive and stylish T-shirt from FBS! First one to post the right number or the closest one will be the winner of the contest and get an exclusive T-shirt from FBS. T-Shirt from FBS You may enter your guesses in the special topic of our group in Facebook http://www.facebook.com/topic.php?uid=137183862987521&topic=537 We wish all the participants Good Luck! Contest rules: http://www.fbs.com/contest/nfp You may find some tips in our economic calendar: http://www.fbs.com/analytics/economic_calendar Work with FBS , be friends with FBS and be successful! (Best mini Forex Broker of 2010) Stay connected with FBS because its all about you!

"Credit Suisse about the possibility of euro collapse"(2011-09-23) Analysts at Credit Suisse estimate the possibility of the euro area break up by only 10%. In their view, it would be much cheaper for the member nations to stay in the monetary union bailing out the indebted peripheral economies. If euro collapses and the euro area disintegrates, the peripheral currencies would fall by around 50% pushing net foreign liabilities to 200%-250% of GDP for the periphery ex Italy, resulting in a 40% default on both sovereign and private loans. The economies will contract by about 9%. The bank proposes to boost the EFSF for a TARP-like facility. According to them, the ECB has to keep purchasing peripheral bonds. In addition, Credit Suisse thinks that soft quantitative easing and weaker euro are also needed. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/8746

"MIG Bank: EUR/USD will keep declining"(2011-09-23) Technical analysts at MIG Bank claim that as the single currency went down below $1.3800 and then slid even lower getting under $1.3495, it will keep falling. In their view, EUR/USD is poised down to $1.2860. The specialists note that there’s large bearish flag on the daily chart. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/8744

"BarCap: Canadian dollar is down versus the greenbackl"(2011-09-23) Canadian dollar slumped yesterday to 11-month minimum versus its US counterpart – the pair USD/CAD got above the parity and surged to 1.0361. Loonie was affected by the discouraging US economic prospects and the sings of China’s and Germany’s slowdown. As a result, investors were actively using American debt and currency as a refuge. Canada’s economy has performed rather well in comparison with other developed nations, but it won’t be able to keep showing bright dynamics while the US economy, it biggest trading partner, is weakening. Technical analysts at Barclays Capital claim that the trend for the pair is ready to switch upwards. In their view, the greenback will be able to rise to 1.0675. Support for US dollar lies at 1.0140. If the pair falls below this level, the outlook will turn bearish. Chart. Daily USD/CAD Comment here http://www.fbs.com/analytics/news_markets/view/8742

"Barclays, Citi: comments on USD/JPY"(2011-09-23) The Federal Reserve has announced this week the Operation Twist – the measure aimed to lower long-term rates and spur US economy. Some analysts say that now it’s the turn of the European Central Bank to do something referring to the quantitative easing. Currency strategists at Bank of New York Mellon think that there are strong odds that the ECB cuts its benchmark interest rate again returning the borrowing costs to the 1% level where they were six months ago reversing April and June increases by 25 basis points each. Economists at the Royal Bank of Scotland are looking forward to 50-basis-point cut already at the next ECB meeting on October 6 and, if not, then by the central bank's November 3 meeting at the latest. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/8739

"G20 spurred risk-on sentiment for some timel"(2011-09-23) The Group of 20 has managed to encourage the markets: the nations pledged “strong and coordinated” response to the problems of the global economy, among which G20 named such factors as “heightened downside risks from sovereign stresses, financial system fragility, market turbulence, weak economic growth and unacceptably high unemployment”, says the statement released in Washington. The comments of the world’s largest economies have improved investors’ confidence and risk sentiment. The single currency advanced from the 10-year minimum versus Japanese yen. Euro has also risen from the 8-month minimum versus the greenback on the rumors that Asian central banks bought EUR/USD. Australian and New Zealand dollars found support and rebounded encourages by rising Asian stocks. At the same time, analysts at Standard Chartered point out that no concrete steps were actually announced, so the market’s optimism might soon fade. In their view, there has to be some kind of mechanism that will allow European Financial Stability Facility (ESFS) to expand, which seems unlikely at the moment. Now it’s necessary to watch the IMF-World Bank Annual Meetings take place on September 23-23. Chart. Daily EUR/JPY Comment here http://www.fbs.com/analytics/news_markets/view/8737

"Mizuho: pound renewed minimum versus yenl"(2011-09-23) British pound dropped versus Japanese yen and renewed the record minimum hitting 117.00. The previous all-time low of 118.78 was set in January 2009. Technical analyst at Mizuho Corporate Bank note that GBP/JPY is currently trading at two standard deviations below the average level of the past 10 years at 182.00, but above the 40-year mean regression at 107.00. According to the bank, sterling may lose more sliding to 115.00 and 110.00. Chart. Daily GBP/JPY Comment here http://www.fbs.com/analytics/news_markets/view/8735

"Greece keeps tightening belts"(2011-09-23) Greece announced that it plans to accelerate budget cuts in order to obtain the next tranche of bailout. Additional austerity measures announced yesterday include a 20% cut in pensions of more than 1,200 euro ($1,627) a month and lower wages for 30,000 state employees. Greek government pledged yesterday to complete the 28-billion-euro cuts in June by 2014 instead of 2015. Talks on the Greek aid payments resumed after IMF and EU monitors suspended the negotiations earlier in September after the data showed that Greece’s budget deficit this year through August widened to 18.9 billion euro exceeding the 18.1-billion-euro target. Greece aims to cut its budget shortfall from 10.5% in 2010 to 7.5% in 2011. According to IMF forecast, Greek economy will contract by 5.5% this year and by 2.5% in 2012. Comment here http://www.fbs.com/analytics/news_markets/view/8732

"AUD/USD fell below the parity level"(2011-09-23) Australian dollar has slumped today below the parity versus the greenback for the first time in more than 6 weeks. Aussie was affected by HSBC Manufacturing PMI preliminary data that declined from 49.9 in August to 49.4 in September – a reading below 50 signals a contraction in the nation’s manufacturing. Australia & New Zealand Banking note that concerns about the global economic growth make serious negative pressure on AUD. The currency is especially vulnerable to lower Chinese figures as China is Australia’s largest trading partner, the main buyers of Australian commodities. The International Monetary Fund revised downwards its economic growth forecasts this week. In addition, analysts at Westpac claim that the Federal Reserve’s yesterday statement sounded pessimistic and the central bank didn’t surprise the market. The pair AUD/USD went down from Friday minimum at $1.0398 to the levels in the $0.9825 area. Chart. Daily AUD/USD Comment here http://www.fbs.com/analytics/news_markets/view/8730

"Barclays, Citi: comments on USD/JPY"(2011-09-23) Yesterday the greenback tested the levels in the 76 yen area – the lowest since it hit the record minimum of 75.95 yen on August 19. Early today USD/JPY rose almost to 77 yen as the Federal Reserve announced the Operation Twist and not the quantitative easing. In addition, the market’s wary that the Bank of Japan’s may once again step in to weaken the national currency. Then the pair erased its advance returning down to 76.15/30. Resistance levels are situated at 77.00 (September 19 maximum/today’s maximum), 77.35 (September 15 spike high) and 77.85 (September 9 maximum). Analysts at Barclays note that investors become more risk-averse after the Fed’s statement as the central bank sounded pessimistic. According to FOMC, there are serious risks to the US economic prospects partly caused by the turmoil associated with the euro zone’s debt crisis. The specialists note that the talk about the possible BOJ intervention has set floor for USD/JPY. Japanese Finance Minister Jun Azumi reiterated yesterday that the nation’s closely watching markets and will act decisively if needed. At the same time, analysts at Citi don’t worry much about the potential Japan’s action noting that Japanese officials got used to treat the effects of strong yen through exports subsidies. In addition, the nation is unlikely to make too sharp moves ahead of G20 meetings on Thursday and Friday. Chart. Daily USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/8728

"The Fed conducts Operation Twist"(2011-09-23) The Federal Reserve announced yesterday that it will conduct an Operation Twist or, in other words, lengthen the average maturities of the Treasuries in its portfolio from 75 to 100 months (8 1/3 years) by the end of 2012 by buying $400 billion of long-term debt (with maturities of 6-30 years) through June, while selling an equal amount of shorter-term securities maturing in 3 years or less. In addition, the central bank will reinvest maturing mortgage debt into mortgage-backed securities instead of Treasuries in order to improve the situation in the mortgage market. The Fed’s goal is to lower longer-term borrowing costs making financial conditions more accommodative. The Federal Open Market Committee (FOMC) reiterated its pledge to keep the benchmark interest rate near zero until the middle of 2013 as the US suffers from high unemployment and the inflation outlook is subdued. At the same time, it’s necessary to note that the rates are already pretty low – the yields on 10-year Treasuries fell from 2011 maximum of 3.74% reached in February to 1.86%. Analysts at Barclays Capital regard Fed’s actions as a modest step. In their view, this may be only the beginning of easing and the central bank may become more aggressive if they don’t see the economic growth improving. However, Richard Fisher, Narayana Kocherlakota and Charles Plosser – the heads of the federal banks of Dallas, Minneapolis and Philadelphia – voted against the FOMC decision for the second time in a row as they are against of additional monetary stimulus. Comment here http://www.fbs.com/analytics/news_markets/view/8726

[B][COLOR="black"] "Mizuho: pound renewed minimum versus yen"(2011-09-22) [CENTER][IMG]http://img513.imageshack.us/img513/34/fbsana.png[/IMG][/CENTER] British pound dropped versus Japanese yen and renewed the record minimum hitting 117.00. The previous all-time low of 118.78 was set in January 2009. Technical analyst at Mizuho Corporate Bank note that GBP/JPY is currently trading at two standard deviations below the average level of the past 10 years at 182.00, but above the 40-year mean regression at 107.00. According to the bank, sterling may lose more sliding to 115.00 and 110.00. [CENTER][img]http://img687.imageshack.us/img687/8097/22165810lurabl9k.jpg[/img] [COLOR="red"]Chart. Daily GBP/JPY[/COLOR][/CENTER] Comment here http://www.fbs.com/analytics/news_markets/view/8735[/COLOR][/B]

"Greece keeps tightening belts"(2011-09-22) Greece announced that it plans to accelerate budget cuts in order to obtain the next tranche of bailout. Additional austerity measures announced yesterday include a 20% cut in pensions of more than 1,200 euro ($1,627) a month and lower wages for 30,000 state employees. Greek government pledged yesterday to complete the 28-billion-euro cuts in June by 2014 instead of 2015. Talks on the Greek aid payments resumed after IMF and EU monitors suspended the negotiations earlier in September after the data showed that Greece’s budget deficit this year through August widened to 18.9 billion euro exceeding the 18.1-billion-euro target. Greece aims to cut its budget shortfall from 10.5% in 2010 to 7.5% in 2011. According to IMF forecast, Greek economy will contract by 5.5% this year and by 2.5% in 2012. Comment here http://www.fbs.com/analytics/news_markets/view/8732

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"AUD/USD fell below the parity level"(2011-09-22) Australian dollar has slumped today below the parity versus the greenback for the first time in more than 6 weeks. Aussie was affected by HSBC Manufacturing PMI preliminary data that declined from 49.9 in August to 49.4 in September – a reading below 50 signals a contraction in the nation’s manufacturing. Australia & New Zealand Banking note that concerns about the global economic growth make serious negative pressure on AUD. The currency is especially vulnerable to lower Chinese figures as China is Australia’s largest trading partner, the main buyers of Australian commodities. The International Monetary Fund revised downwards its economic growth forecasts this week. In addition, analysts at Westpac claim that the Federal Reserve’s yesterday statement sounded pessimistic and the central bank didn’t surprise the market. The pair AUD/USD went down from Friday minimum at $1.0398 to the levels in the $0.9825 area. Chart. Daily AUD/USD Comment here http://www.fbs.com/analytics/news_markets/view/8730

"Barclays, Citi: comments on USD/JPY"(2011-09-22) Yesterday the greenback tested the levels in the 76 yen area – the lowest since it hit the record minimum of 75.95 yen on August 19. Early today USD/JPY rose almost to 77 yen as the Federal Reserve announced the Operation Twist and not the quantitative easing. In addition, the market’s wary that the Bank of Japan’s may once again step in to weaken the national currency. Then the pair erased its advance returning down to 76.15/30. Resistance levels are situated at 77.00 (September 19 maximum/today’s maximum), 77.35 (September 15 spike high) and 77.85 (September 9 maximum). Analysts at Barclays note that investors become more risk-averse after the Fed’s statement as the central bank sounded pessimistic. According to FOMC, there are serious risks to the US economic prospects partly caused by the turmoil associated with the euro zone’s debt crisis. The specialists note that the talk about the possible BOJ intervention has set floor for USD/JPY. Japanese Finance Minister Jun Azumi reiterated yesterday that the nation’s closely watching markets and will act decisively if needed. At the same time, analysts at Citi don’t worry much about the potential Japan’s action noting that Japanese officials got used to treat the effects of strong yen through exports subsidies. In addition, the nation is unlikely to make too sharp moves ahead of G20 meetings on Thursday and Friday. Chart. Daily USD/JPY Comment here http://www.fbs.com/analytics/news_markets/view/8728

"The Fed conducts Operation Twist"(2011-09-22) The Federal Reserve announced yesterday that it will conduct an Operation Twist or, in other words, lengthen the average maturities of the Treasuries in its portfolio from 75 to 100 months (8 1/3 years) by the end of 2012 by buying $400 billion of long-term debt (with maturities of 6-30 years) through June, while selling an equal amount of shorter-term securities maturing in 3 years or less. In addition, the central bank will reinvest maturing mortgage debt into mortgage-backed securities instead of Treasuries in order to improve the situation in the mortgage market. The Fed’s goal is to lower longer-term borrowing costs making financial conditions more accommodative. The Federal Open Market Committee (FOMC) reiterated its pledge to keep the benchmark interest rate near zero until the middle of 2013 as the US suffers from high unemployment and the inflation outlook is subdued. At the same time, it’s necessary to note that the rates are already pretty low – the yields on 10-year Treasuries fell from 2011 maximum of 3.74% reached in February to 1.86%. Analysts at Barclays Capital regard Fed’s actions as a modest step. In their view, this may be only the beginning of easing and the central bank may become more aggressive if they don’t see the economic growth improving. However, Richard Fisher, Narayana Kocherlakota and Charles Plosser – the heads of the federal banks of Dallas, Minneapolis and Philadelphia – voted against the FOMC decision for the second time in a row as they are against of additional monetary stimulus. Comment here http://www.fbs.com/analytics/news_markets/view/8726

"UBS: bullish outlook for EUR/CHF"(2011-09-21) Analysts at UBS are bullish on the single currency versus Swiss franc. In their view, the outlook for EUR/CHF has become positive as the pair broke yesterday above resistance at 1.2191. The specialists expect euro to rise to 1.2346 and then to 1.2469. Support for the European currency lies at 1.2051. Chart. H4 EUR/CHF Comment here http://www.fbs.com/analytics/news_markets/view/8724

"Commerzbank: technical comments on USD/CAD"(2011-09-21) US dollar rebounded this week versus its Canadian counterpart using support provided by the 200-day MA at 0.9777 reaching the parity level. Technical analysts at Commerzbank note, however, that USD/CAD’s advance will be limited by resistance in the 1.0000/58 zone. According to the specialists, this area contains 50% retracement of the decline in 2010/2011 and January maximum. If the greenback eventually manages to overcome 1.0058 and close above this level in New York for 2 times, it will be able to rise to 1.0109/1.0139. The bank says that support for the pair is found at 0.9742/26 (55-day MA and late August minimum). Chart. Daily USD/CAD Comment here http://www.fbs.com/analytics/news_markets/view/8722

"Bank of Canada isn’t concerned about inflation"(2011-09-21) According to the data released today, annual Canadian CPI growth speeded up from 2.7% in July to 3.1% in August, while the economists were looking forward to only 2.9% increase. Bank of Canada Governor Mark Carney said yesterday that the central bank may keep the borrowing costs low until full output is restored. According to Carney, Canada’s recovery will be affected by economic weakness of the United States, its biggest trade partner. The head of the central bank didn’t express any concerns about inflation. Analysts at TD Bank believe that August burst of inflation will prove to be only temporary. Canadian GDP contracted by 0.4% in the second quarter. The IMF lowered yesterday the nation’s 2011 economic growth forecast from 2.9%, according to June’s estimate, to 2.1%. Canadian dollar is weakening versus its American counterpart for the third day in a row on the declining oil price. The pair USD/CAD rose from Monday minimum at 0.9778 approaching the parity level. Chart. Daily USD/CAD Comment here http://www.fbs.com/analytics/news_markets/view/8721

"IMF lowered economic forecasts"(2011-09-21) The International Monetary Fund lowered US economic growth forecast for 2011 and 2012 from 2.5% and 2.7% (June’s estimate) to 1.5% and 1.8%. The outlook for the euro area was reduced from 2% this year and 1.7% the next to 1.6% and 1.1% respectively. The world’s GDP will increase by 4% as in 2011, as in 2012 versus 4.3% and 4.5% advance seen earlier. According to the organization, global economy is entering a “dangerous new phase” and the policymakers are to act decisively reducing deficits in order to improve prospects and reduce risks. Comment here http://www.fbs.com/analytics/news_markets/view/8718

"Credit Agricole: pound’s declining after MPC minutes"(2011-09-21) British pound fell to the 8-month minimum versus the greenback at $1.5612. It happened after the Bank of England’s Monetary Policy Committee’s September meeting minutes showed that the policymakers are regarding the possibility of embarking on additional monetary stimulus. The MPC members point out that UK GDP growth in the second half of 2011 may be significantly weaker than it was thought last month. Analysts at Commerzbank note that the central bank has made it clear that if the situation worsens, it’s going to ease it policy. In their view, Britain’s economic prospects are very uncertain and the nation is vulnerable to substantial downside risks. The officials voted 8-1 to maintain the current size of the asset purchase program and were unanimous in keeping the benchmark rate at the record minimum of 0.5%. Currency strategists at Credit Agricole claim that sterling will go down to test $1.55. In their view, the currency will remain under pressure during the next few weeks as the as market shifts expectations for a UK QE2 to the November meeting. Analysts at Morgan Stanley keep being bearish on GBP/USD expecting the pair to fall to $1.53 by the end of the year and to $1.51 at the beginning of the next year. Chart. Daily GBP/USD Comment here http://www.fbs.com/analytics/news_markets/view/8716

"Westpac: commodity currencies are seen declining"(2011-09-21) Analysts at Westpac note that the ongoing euro zone’s debt crisis is seriously hurting investors’ risk sentiment bringing their attention to Greece and Italy. In their view, the risky currencies currently seem to be very vulnerable. The specialists recommend selling commodity currencies. In particular, the bank prefers shorts on Australian dollar versus its US counterpart targeting 1.0000 and stopping above 1.0335. Chart. Daily AUD/USD Comment here http://www.fbs.com/analytics/news_markets/view/8714

"BarCap: ECB will cut rates in October"(2011-09-21) The International Monetary Fund claimed that the European Central Bank should lower its benchmark interest rate from the current 1.5% level if the euro zone’s economic growth remains at risk. Analysts at Barclays Capital expect the ECB to reduce the borrowing costs by 25 basis points the next month to 1.25% and to widen the interest rate “corridor” back to +/-100 basis points which would make the deposit facility decrease by 50 basis points to 0.25%. Taking into account the excess bank reserves, that would let the EONIA (overnight) rate to trade significantly lower. According to the bank, things remain like that until there’s need for policy normalization. The specialists believe that it may happen in the second half of 2013. Chart. Daily EUR/USD Comment here http://www.fbs.com/analytics/news_markets/view/8712

"Commerzbank: USD/CHF is gaining on the SNB talk"(2011-09-21) The greenback went up versus Swiss franc from the day’s minimum at 0.8692 getting above 0.8940 on the speculation that the Swiss National Bank has imposed a tighter peg for the national currency. There’s talk that the SNB has removed the EUR/CHF target up to 1.25 per euro. The central bank didn’t confirm the information, but franc is experiencing general weakness. Technical analysts at Commerzbank note that USD/CHF has broken up important resistance at 0.8850/0.8950 (double Fibonacci retracement, 200-day MA and May minimum). In their view, US dollar is on its way up to 0.9103 (55-week MA) and 0.9340/0.9400 (March maximums and double Fibonacci retracement). According to the bank, support for the pair is found at 0.8640/0.8462 (23.6%/38.2% retracement of dollar’s advance in September). Chart. Daily USD/CHF Comment here http://www.fbs.com/analytics/news_markets/view/8710