DR Congo rebels 'advance on Goma'

19:34 Publié par News First !

DR Congo rebels 'advance on Goma'

The government of the Democratic Republic of Congo has expressed alarm as rebel forces advance towards the country's main eastern city of Goma.

Witnesses told the BBC that rebels of the M23 group were 40km (25 miles) from the city, near the Rwandan border.

They said rebels appeared to be taking towns and villages with ease, with government troops usually melting away.

The Congolese government and the UN say Rwanda is backing the rebels, a claim Rwanda denies.

DR Congo has accused its neighbour of wanting to keep it unstable so it can exploit its rich mineral wealth.

The Congolese government has called on the international community to condemn Rwanda.

On Sunday, rebels were reported to have seized the strategic town of Rutshuru, 70km north of Goma.

A senior official at a national conservation park speaking on Monday just 40km north of Goma, told the BBC that "the rebels are very much in control of this area".

Flexing muscles

BBC international development correspondent Mark Doyle says it is not clear if the rebels intend to attack the city.

If they do, there will be a new and massive humanitarian crisis, he says.

However, the rebels may only be flexing their muscles to strengthen their negotiating position with the government, our correspondent adds.

The rebels - who took up arms in April - named themselves the M23 after a failed peace agreement signed on 23 March three years ago.

They are supporters of renegade Gen Bosco Ntaganda, who is wanted for war crimes by the International Criminal Court (ICC).

Gen Ntaganda is an ethnic Tutsi - like the majority of Rwanda's leadership - and a recent UN report accused Rwanda of backing the rebels.

Kikaya Bin Karubi, the Congolese Ambassador to the UK, told the BBC: "The United Nations Group of Experts last week published a report that says clearly that the so-called M23 are using Rwandan soldiers - and that's the United Nations talking, not us."

Rwanda has vehemently denied the accusations.

The M23 rebels defected from the army amid pressure on the government to arrest Gen Ntaganda.

An estimated 200,000 people have fled their homes since April, with about 20,000 crossing the border to Uganda and Rwanda.

Eastern DR Congo has been plagued by years of fighting.

In 1994, more than a million Rwandan ethnic Hutus crossed the border following the genocide in which some 800,000 people - mostly Tutsis - were slaughtered.

Rwanda has twice invaded its much-larger neighbour, saying it was trying to take action against Hutu rebels based in DR Congo. Uganda also sent troops into DR Congo during the 1997-2003 conflict.

Egypt military 'warns' President Mursi over parliament decision

19:31 Publié par News First !

Egypt military 'warns' President Mursi over parliament decision

Egypt's military council has said the decision to dissolve the country's parliament must be upheld, after new President Mohammed Mursi ordered the assembly to reopen.

The military closed parliament last month after a court ruling.

Its latest intervention is seen by some as a challenge and warning to the president, sworn in barely a week ago.

The military council said it was confident "all state institutions" would respect the law and constitution.

The BBC's Jon Leyne, in Cairo, says the political truce in Egypt appears over.

Crowds were gathering in Tahrir Square ahead of a parliamentary meeting called for 10:00 (08:00 GMT) on Tuesday, in defiance of the military's decision.

'Binding and final'

The statement from the Supreme Council of the Armed Forces (Scaf) will infuriate the Muslim Brotherhood, our correspondent says.

Members of the Brotherhood believe it was the military that failed to respect the law by giving itself new powers after dissolving parliament last month, he says.

Earlier on Monday, the Supreme Constitutional Court rejected the decree issued by Mr Mursi the day before to reconvene the Muslim Brotherhood-dominated parliament.

The court said its 14 June ruling - that part of last year's parliamentary election was unconstitutional - was binding and final.

But army units posted outside the parliament building had already left and some MPs had gone in for the first time since the assembly was dissolved.

As the court had not itself ordered the dissolution of parliament, Mr Mursi was not directly challenging a court order, our correspondent says.

No mention was made of the court's ruling in the decree. And presidential spokesman Yasir Ali argued that Mr Mursi had been quite legitimate in suspending the dissolution until new parliamentary elections took place within 60 days of a new constitution being ratified.

Despite the apparent tensions, the president and Field Marshal Hussein Tantawi, who heads Scaf, appeared together at a military cadet graduation ceremony on Monday.

'Waste of authority'

The president's order has not, however, been welcomed by political rivals.

Former presidential candidate Abdul Moneim Aboul Fotouh was said to have denounced his move as unconstitutional while another, Hamdin Sabbahi, was quoted as saying it was a "waste of legal authority".

Liberal MP Mohammed Abu Hamed urged Scaf to challenge what he called "this constitutional coup".

The constitutional court is due to hear a number of appeals against the decree on Tuesday, reports say.

Mr Mursi won the country's first free presidential election last month, and army chiefs formally handed over power on 30 June.

Before Mr Mursi's inauguration, the military granted itself sweeping powers.

The commanders' constitutional declaration stripped the president of any authority over the military, gave military chiefs legislative powers, and the power to veto the new constitution, which has yet to be drafted.

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Japanese Yen Strength Persists; EURUSD Consolidates

19:24 Publié par News First !

Japanese Yen Strength Persists; EURUSD Consolidates

The carry trade continued to unwind on Monday as the Australian and New Zealand Dollars continued to shed ground against the safe havens, the Japanese Yen and the US Dollar. Pressure has been on high beta currencies and risk-correlated assets as Asian investors react to Friday’s disappointing US Nonfarm Payrolls report for June, as well as some discouraging Chinese data in the overnight that suggests deflation may be becoming a concern for policymakers in one of the world’s most important economies.

With the issues raised thus far on Monday firmly rooted in Asia, the Euro has had a chance to consolidate slightly to the downside against the Japanese Yen and the US Dollar. As the technical notes show below, it’s evident that the EURUSD is deeply oversold, with these extreme technical conditions saturating even the 8-hour charts. It’s of my opinion that, without a significant catalyst, the EURUSD is primed to consolidate if not rebound in the coming periods before the next leg of the sell-off hits.

For now, we continue to watch European credit markets as our guide. The Italian 2-year note yield has risen to 4.067 % (+34.4-bps) while the Spanish 2-year note yield has risen to 4.877% (+15.3-bps). The Italian 10-year note yield has risen to 6.094% (+10.0-bps) while the Spanish 10-year note yield has risen to 6.995% (+12.5-bps); higher yields imply lower prices.

RELATIVE PERFORMANCE (versus USD): 10:28 GMT

JPY: +0.11%
CHF: +0.09%
EUR: +0.09%
CAD: -0.03%
GBP: -0.06%
AUD:-0.38%
NZD: -0.41%
Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): +0.03% (+1.08% past 5-days)

ECONOMIC CALENDAR

The economic docket is rather dry in the coming hours, with perhaps the most important event being the US Consumer Credit report for May. Beyond today’s docket, we continue to look for headlines out of Europe as the ECOFIN Council meets to discuss further measures to stem the crisis.

TECHNICAL OUTLOOK

EURUSD: The Symmetrical Triangle on the daily chart has broken to the downside, and we have traded into our first level of support at 1.2285/90. The new yearly lows set on Friday and today at 1.2255/90 suggest further losses ahead; though with the pair significantly oversold even up to the 8-hour chart, it’s likely that, without a catalyst, the EURUSD consolidates or rallies in the periods ahead. Given the measured move and Fibonacci extensions, we are looking for a move towards 1.1695-1.1875 over the next eight-weeks. Resistance now comes in at 1.2440/80, former support on the Symmetrical Triangle.

USDJPY: The USDJPY is working on an Inverted Head & Shoulders pattern off of the June 1 low, with the neckline coming in at 80.60/70. Only a daily close above this level will signal the commencement of this pattern. With the Head at 77.60/70, this suggests a measured move towards 83.60/70 once initiated. Near-term support comes in at 78.90/95 (200-DMA). Price action to remain range bound as long as advances are capped by 80.60/70.

GBPUSD: Fresh news lows on Friday at 1.5460 have yielded little follow-through thus far on Monday, and it appears that we have the early stages of a Doji daily candle (also an Inside Day) at work on the daily chart. This would signal a near-term reversal and clear the way for some GBPUSD strength over the next few sessions. Resistance comes in at 1.5600/05 (20-DMA) then the monthly high at 1.5720/25. Near-term support comes in at 1.5460 then 1.5425 (Bollinger Band).

AUDUSD:The pair has settled back below the crucial 1.0250/60 area (100-DMA, 200-DMA) and has since pulled back below the pivotal 1.0210/15 level. It thus appears, now that there was a new low set on Friday, that prices have reversed and further losses are ahead. Near-term resistance comes in at 1.0250/60 and 1.0325/30 (monthly high); a break above 1.0325/30 would signal a reversal and point to more gains towards 1.0365/85. Support now comes in at 1.0120/25 (20-DMA), 1.0080 (former intraday swing highs), and 1.0005/10 (50-DMA, Bollinger Band).

— Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com. Follow him on Twitter at @CVecchioFX

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Jordan Says Cap Enforcement is Appropriate for Economy

06:28 Publié par News First !

Jordan Says Cap Enforcement is Appropriate for Economy

Tradervox.com (Dublin) – The SNB president Thomas Jordan in an interview to be released later that the enforcement of the currency ceiling imposed last year is appropriate to avoid deflation. He added that the bank is determined to keep the minimum exchange rate since it is the right monetary policy for the country’s economy. The remarks by the SNB President were echoed by the SNB Spokesman Walter who said the bank is doing all it can to hold the cap.

According to Swiss National Bank data, the foreign-currency reserves climbed by 20 percent in the first five months of the year as policy makers defended the 1.20 ceiling which has been beneficial to exporters and has reduced deflation. The strain on the currency increased since investors are buying it as a safe haven currency with the crisis in Europe continuing to escalate. However, the recent EU decision will help the in the SNB’s fight against deflation.

Jordan indicated that the expansion of the bank’s balance sheet is in accordance with the monetary policy and despite the risks associated with that the bank will be able to bear them. Reports from the SNB indicated that the foreign reserves climbed to 306.1 billion francs in May from April’s 247.2 billion francs.

The Swiss National Bank is buying euros which are increasing the number of francs available to the Switzerland lenders. In a statement released by the SonntagsBlick newspaper prior to publishing the full interview, SNB forecasts a safe sail in terms of inflation throughout next year. In the month prior to the introduction of the cap, the franc had increased by 17 percent against the euro causing losses in the export industry. The franc was trading at 1.20120 against the euro at the close of last month. The Swiss currency traded at 94.94 centimes against the dollar.

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British Pound, Euro Consolidate Ahead of Key Central Bank Meetings

06:26 Publié par News First !

By Christopher Vecchio, Currency Analyst for DailyFX.com

There’s been little follow-through by high beta currencies and risk-correlated assets from Friday, when the Australian Dollar and the Euro had their strongest days against the US Dollar since November 30, 2011. Quizzically, the lack of follow-through in FX markets has occurred alongside some further strength in the commodity complex, where Crude Oil and Gold have posted gains of +1.79% and +0.81% thus far on Tuesday.

As noted yesterday, until the European Central Bank meeting on Thursday, the key indicators to watch are Italian and Spanish debt in the wake of the Summit. Thus far on Tuesday, both sovereigns have seen their short-term and long-term debt improve slightly further. The Italian 2-year note yield has fallen to 3.266% (-6.0-bps) while the Spanish 2-year note yield has fallen to 4.008% (-4.3-bps). The Italian 10-year note yield has fallen to 5.660% (-4.8-bps) while the Spanish 10-year note yield has fallen to 6.258% (-4.3-bps). As always, lower yields imply higher prices.

RELATIVE PERFORMANCE (versus USD): 10:42 GMT

CAD: +0.16%
AUD: +0.09%
EUR: +0.01%
CHF: -0.04%
GBP: -0.10%
NZD: -0.17%
JPY: -0.39%
Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): +0.08%

ECONOMIC CALENDAR

An overall quiet session in New York coming up, with no data out of Europe expected the rest of the day. Of interest: the Factory Orders report for May (14:00 GMT / 10:00 EDT), in which domestic manufacturers are expected to show a slight increase in activity. However, we could see a surprise here, given the divergence between recent Durable Goods Orders and the ISM Manufacturing report.

TECHNICAL OUTLOOK

EURUSD: The EURUSD’s consolidation and failure to set fresh highs in the wake of the Euro-zone Summit play into the budding Symmetrical Triangle on the daily chart. For now, we are looking for a pullback towards 1.2480 before the direction of the triangle is determined. Resistance to the upside comes in at 1.2700/15 (Bollinger Band, 50-DMA), and a break above suggests a test of 1.2745/50 (June high) then 1.2820. Triangle support comes in at 1.2480, and a move lower points to 1.2405/20.

USDJPY: The USDJPY is working on an Inverted Head & Shoulders pattern off of the June 1 low, with the neckline coming in at 80.60/70. Only a daily close above this level will signal the commencement of this pattern. With the Head at 77.60/70, this suggests a measured move towards 83.60/70 once initiated. Near-term support comes in at 78.85/90 (200-DMA). Price action to remain range bound as long as advances are capped by 80.60/70.

GBPUSD: The GBPUSD remains constructive in the near-term but advances look to be capped by the confluence of key moving averages around 1.5750. Furthermore, a retest of 1.5775/80 when considered in context of the moving averages in the area should see some sellers return to the market. Advances should be capped by 1.5745/50 (200-DMA) and then 1.5775/85 (June high, 50-DMA). Support comes in at 1.5595/1.5600 then 1.5480/1.5500.

AUDUSD: While our fundamental outlook for the AUDUSD is bearish long-term, we respect the recent rally off of the June 1 low and identify the move as impulsive (we can identify 5 waves up from the June 1 low). With that said, this advance thus appears to be in its final stages, and the confluence of resistance in close proximity to current price should hinder gains. 1.0265/90 (Bollinger Bank, 100-DMA) should attract sellers as should the budding RSI divergence on the 4-hour charts. Price remains supported above 1.0125.

Devon’s finest Charlotte Holmes crowned as Miss England 2012

06:23 Publié par News First !

Anyone who has had the pleasure of spooning an entire tin of Ambrosia custard into their gobs, or has seen the natural beauty of Dartmoor, will know that Devon is a pretty special county.

And so it will probably come as little surprise to learn that Charlotte Holmes, aka Miss Devon, has been crowned Miss England 2012.

The Devonian was one of 60 of the nation’s most beautiful women who gathered in Leicester this week to battle it out for the illustrious title

miss-england-2012-miss-devon-charlotte-holmes-swimsuit-sexy

Holmes – a former contestant on Britain’s Next Top Model – faced stiff competition in the shape of runners up Anastasia Smith (Miss North Yorkshire) and Tamzin Cummings (Sunderland People’s Choice), but eventually came out on top.

The 23-year-old beauty queen won herself a trip to Mauritius, as well as the chance to represent England at the Miss World final in August.

miss-england-2012-miss-devon-charlotte-holmes-full-length

English rose Holmes was overjoyed when judges announced her victory, but she managed to utter a few words through her tears of joy. She said: “I am so happy to have won the crown and my ambition is to give young girls the message they can achieve.”

So girls of England take heed: if you’re incredibly bloody attractive, then one day you too could follow in Holmes’ sexy footsteps..

Syria-Turkey tension: Assad 'regrets' F-4 jet's downing

06:12 Publié par News First !

Syria-Turkey tension: Assad 'regrets' F-4 jet's downing

Syrian President Bashar al-Assad is quoted as saying he regrets "100%" that a Turkish jet was shot down after entering Syrian airspace.

In an interview with Turkey's Cumhuriyet newspaper, he argues that the plane was flying in an area previously used by Israel's air force.

The plane went down in the Mediterranean last month and the two pilots have not been found.

The incident has heightened tensions between the two countries.

Last week, Turkish PM Recep Tayyip Erdogan condemned Syria's action and described the neighbouring country as a "clear and present threat".

Turkey's border areas were reinforced with rocket-launchers and anti-aircraft guns on Friday.

It has also emerged that the Turkish air force scrambled fighter jets on three consecutive days after Syrian helicopters were said to have approached the border.

In his Turkish interview, Mr Assad appears to try to cool the dispute, saying Syria had not and would not bolster its military presence, regardless of the actions of Mr Erdogan's government.

"We will not allow (the shooting down) to turn into open combat between the two countries," President Assad is quoted as saying.

In other developments:

Turkish media reported late on Monday that another 85 Syrian soldiers, including 14 senior officers, had defected across the Turkish border. It is one of the biggest groups of army defections since the March 2011 uprising in Syria began
Syria is practising a widespread policy of state-sanctioned torture with an "archipelago of torture centres", a Human Rights Watch report says
UN human rights chief Navi Pillay has said that both Syrian government forces and the opposition have been involved in operations that harmed civilians
At least 78 people were killed in violence throughout Syria on Monday, opposition activists reported
Clashes were reported on Tuesday in suburbs of Damascus and government forces were operating in the cities of Deraa and Deir al-Zour, the Local Co-ordination Committees (LCC) activist group said
UN observers visited the Damascus suburb of Douma on Tuesday, after it was recaptured days earlier by government forces
A picture released by activists purportedly showed the burial of more than a dozen people killed by Syrian forces in Douma

Cumhuriyet says that during its interview - carried out over two-and-a-half hours in Damascus on Sunday by Ankara bureau chief Utku Cakirozer - the Syrian leader was adamant that the plane's identity had become clear only after it was brought down.

"We want to think of it as a pilot's error and we would consider this an isolated incident," he is reported as saying. "I say 100% 'if only we had not shot it down'."

The soldier who opened fire on the F-4 Phantom had no access to radar, he says, pointing out that the same route was used in the 2007 Israeli bombing of a site in north-eastern Syria.

The UN's nuclear agency later said the site was very likely a nuclear reactor under construction.