FOREX DROP :- FOREX-Euro drops versus dollar as debt worries persist

* Geithner urges end to loose talk about euro break-up

* Bank of Portugal cites unreported debts at Madeira

* Funding strains ease after central banks move (Updates prices)

NEW YORK, Sept 16 (Reuters) - The euro dropped on Friday, hurt by a spate of negative news out of Europe ranging from the German chancellor's rejection of a euro zone bond to unexpectedly low private participation in Greece's debt program.

Analysts, however, were unsure as to where the euro is headed going into next week, seeing vulnerability in both directions.

The weak trend could persist, some said, as no new policy initiatives to deal with the euro zone debt crisis came out of the European Union Finance Ministers' meeting on Friday.

On the other hand, other analysts said, it seemed all efforts are being undertaken by individual euro zone governments to ease the region's fiscal problems. The euro, they argued, could stabilize next week and trade above the seven-month lows beneath $1.35 hit on Monday.

"The market probably senses that even though there is no comprehensive solution in the immediate offing, the risks that had been factored in at the beginning of the week have not been prevalent," said Bob Lynch, head of G10 FX strategy at HSBC in New York.

Shares in BNP Paribas (BNPP.PA) and Credit Agricole (CAGR.PA) slumped on Friday, with traders citing talk that ratings agency Moody's could downgrade Italy after the market close on Friday. BNP Paribas and Credit Agricole are the two French banks most exposed to Italy.

The euro was last down 0.7 percent at $1.37851 EUR=EBS, off a one-week peak of $1.39370 hit on Thursday but held above a seven-month trough below $1.35 plumbed on Monday. The euro has gained around 1.6 percent so far this week, its best weekly performance since the week of July 24 on trading platform EBS.

It fell to a session low of $1.37530, with traders saying it extended losses after stop-loss orders were triggered on the break of $1.37700, with more stops at $1.37500.

German Chancellor Angela Merkel's reiteration on Friday of her objection to the introduction of euro bonds, and an unexpectedly low 75 percent participation in Greece's debt initiative, below the 90 percent target, added pressure to the euro. [ID:nB4E7K901L] [ID:nWEA4691].

U.S. Treasury Secretary Timothy Geithner is taking part told EU finance ministers on Friday they should end loose talk about a euro zone break-up and work more closely with the European Central Bank to tackle the debt crisis. [ID:nL3E7KG0KC]

The euro had hit a one-week high after a coordinated move by central banks on Thursday to provide dollars. Funding strains, evident through the cross currency basis swap market, which had hit some euro zone banks, appeared to be easing.

The three-month euro/dollar cross currency basis swap EURCBS3M=ICAP, or the relative premium for swapping euro LIBOR for dollar LIBOR, tightened to minus 88 basis points on Friday, a day after the central banks acted. It narrowed from as wide as minus 115 basis points on Monday.

FED MEETING AHEAD

While investors remain wary of the euro, they are also reluctant to take long positions in the dollar ahead of a Federal Reserve meeting next week, where policymakers may flag another round of quantitative easing to boost the economy.

That move should weigh on the dollar and help riskier assets rally, although analysts said some market players thought "Operation Twist" was the more likely outcome.

In such a scenario the Fed would buy longer-dated Treasury bonds and sell shorter-dated ones to keep rates at the longer end lower without expanding the balance sheet.

The ICE Futures' dollar index was last up 0.5 percent at 76.633 .DXY. Against the yen, the dollar was up 0.2 percent at 76.870 yen JPY=EBS. The threat of Japanese intervention has helped keep dollar/yen in a tight range and above its all-time low of 75.94 yen. (Reporting by Gertrude Chavez-Dreyfuss and Wanfeng Zhou; Editing by Chizu Nomiyama )

SOURS :- reuters.com

I FOREX NEWS :- US Dollar ends week lower

 Greenback finished the week mostly lower in the market with moderate losses weakened by risk appetite and by the announcement of major central banks. The Aussie and the Pound were also among the worst performs.

The US Dollar started the week on a strong note, rising sharply to fresh monthly highs but it bounced sharply and turned to the downside, falling in the next days. The EUR/USD bottomed at 1.3497 on Monday, jumped to 1.3935 on Thursday and finished the week around 1.3780/90.

The GBP/USD moved all week in a small range of less than 200 pips and finished the week just 50 pips below the price it opened Monday’s Asian session. “The pair finished the week lower after the latest jobs report which braded ‘unwelcome’ by the Employment Minister Chris Grayling prompted market participants to speculate over the potential need for an additional monetary policy easing by the BoE; in addition to that, BoE's Weale said that risk of recession increased since July and that growth prospects have worsened in the last few weeks,” the Talking-Forex.com analysis team affirmed.


The USD/CHF ended slightly lower while USD/JPY failed to hold above 77.00 despite risk appetite and fell back below 77.00. The Aussie and the Kiwi posted gains versus the US Dollar and the Aussie finished with small losses.
SOURS :- FXstreet.com

FOREX TRADE NEWS :- Forex - GBP/USD up in Asian trade

The British Pound was higher against the U.S. Dollar on Friday.

GBP/USD was trading at 1.5810, up 0.06% at time of writing.

The pair was likely to find support at 1.5707, Wednesday's low, and resistance at 1.5885, Monday's high.

Meanwhile, the British Pound was up against the Euro and the Japanese Yen, with EUR/GBP shedding 0.10% to hit 0.8773 and GBP/JPY rising 0.14% to hit 121.37.


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SOURS :- MONYCONTROl

I FOREX NEWS :- Dollar Broadly Lower After EBC Announcement, U.S. Data

 The U.S. dollar was broadly lower against its major counterparts on Thursday, after the European Central Bank announced that it was launching a coordinated action to offset liquidity shortages at European banks and following the release of a slew of broadly worse-than-expected U.S. data.

During U.S. morning trade, the greenback was lower against the euro, with EUR/USD advancing 0.77% to hit 1.3859.

The ECB announced that it “has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three U.S. dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year.”

The announcement eased concerns over funding shortages among European lenders, who have been finding it difficult to borrow dollars as a result of the region’s debt crisis and have had to depend more heavily on the ECB for loans.

The greenback was also lower against the pound, with GBP/USD adding 0.40% to hit 1.5832.

Earlier Thursday, official data showed that retail sales in the U.K. declined in line with expectations in August, slipping 0.2%.

Meanwhile, the greenback was higher against the yen but was down sharply against the Swiss franc, with USD/JPY easing up 0.14% to hit 76.73 and USD/CHF tumbling 0.78% to hit 0.8692.

The Swiss National Bank left its benchmark interest rate unchanged at zero for September earlier in the day and reiterated its commitment to defend the minimum exchange rate of 1.20 per euro” with utmost determination.”

The greenback was also lower against its Canadian, Australian and New Zealand cousins, with USD/CAD shedding 0.28% to hit 0.9866, AUD/USD inching up 0.04% to hit 1.0286 and NZD/USD easing up 0.08% to hit 0.8239.

Earlier in the day, the Reserve Bank of New Zealand left its benchmark interest rate unchanged at 2.5% and indicated that rates are likely remain on hold in the coming months, amid risks that the global recovery could slow “sharply.”

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.55% to hit 76.96.

The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits rose by 11,000 to a seasonally adjusted 428,000 last week, confounding expectations for a decline to 410,000.

Meanwhile, government data showed that U.S. core consumer price inflation rose in line with expectations August, rising 0.02%, while consumer prices including food and energy costs rose 0.4%, above expectations for a 0.2% gain.

Also Thursday, official data showed that manufacturing activity in the Philadelphia region improved less-than-expected in September, remaining in negative territory for the second consecutive month, while an index of manufacturing conditions in New York fell unexpectedly.

sours :- daily marketers