Tag Archives: Japanese Yen

Dollar Holds Longest Yen Gains Since 2005 Following U.S. GDP

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

WHAT WE’RE WATCHING TODAY

Dollar Holds Longest Yen Gains Since 2005 Following U.S. GDP

There are clear signs that the U.S. economy is strengthening as the dollar headed for its biggest monthly gain versus the euro since February last year. The dollar has risen versus all except one of its 16 major counterparts in July as reports have shown gross domestic product rebounded, consumer confidence improved and durable goods orders increased. Economists predict that NFP data tomorrow will reveal that employers added more than 200,000 jobs for a sixth month. The dollar was little changed at $1.3396 per euro having advanced 2.2 percent this month. It appreciated to $1.3367 yesterday, the strongest since Nov. 12. The U.S. currency traded at 102.78 yen from 102.79 in New York, having risen for the previous nine trading days.

So far, the Fed has nevertheless given no signs of being in a hurry to raise interest rates. Yesterday, it delivered a slightly more upbeat assessment on the economy and scaled back its monthly bond-buying program by another $10 billion in a widely expected move. Traders expect markets to now take stock of the overnight moves and wait for the next batch of key data including U.S. non-farm payrolls tomorrow.

U.S. Stocks Higher As Fed Calms Rate-Hike Fears

U.S. stocks ended a choppy session slightly higher, as the Federal Reserve appeared to ease fears that it will start raising interest rates sooner than anticipated. Following yesterday’s FOMC meeting, the Fed said the economy is improving but emphasised that significant slack remains in the labour market. The central bank gave no hint of timing of the first rate hike and repeated that it expects that to come a considerable time after the end of its bond-buying program. The S&P 500 closed up less than a point at 1,970.08. The Dow Jones Industrial Average finished off session lows, but with a loss of 31.75 points to 16,880.36. The Nasdaq Composite added 20.20 points to 4,462.90. Tech stocks shone amid a buying frenzy in Twitter after the social media network’s results exceeded forecasts. Its shares leapt 22% as analysts moved up price targets in the wake of blowout results. European stocks closed mostly lower, while in other markets crude oil and gold both lost ground.

Gold Stays Below $1,300 On U.S. Economic Optimism

Gold held overnight losses to trade below $1,300 an ounce today and looked likely to extend declines to a fourth day as optimism over U.S. economic growth curbed safe-haven appetite for the metal. Spot gold was flat at $1,295.20 an ounce after dropping 0.3 percent in the previous session. If U.S. data continues to beat expectations, the metal will come under further long liquidation. According to some analysts, gold is poised to break support at $1,292 and fall further to $1,284, as indicated by its wave pattern and a Fibonacci projection analysis.

That sums up today’s highlights! Remember to keep in touch via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest trading developments. We hope you have a profitable day on the markets.

Will The Fed Jolt The Markets This Week?

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: US Industrial Production @ 13.15 GMT

WHAT WE’RE WATCHING TODAY

Will The Fed Jolt The Markets This Week?

The Federal Reserve is expected to announce another $10 billion monthly reduction in quantitative easing in this week’s FOMC statement with the focus being on the Fed’s economic assessment, which could end up realigning investor expectations about when the Fed is likely to hike rates. In its last statement, the FOMC noted that growth in economic activity had picked up after having slowed sharply during the winter, but added that the labour market indicators were mixed and the unemployment rate remained elevated. However, the outlook has improved with the last two employment reports showing monthly non-farm payrolls growth of 282,000 and 217,000. And after a severely weak first quarter, several economists are looking forward to Q2 GDP growth around 4 percent. While the Fed is unlikely to alter its tapering plans or tweak its forward guidance, its new economic projections could still prompt speculation that the first interest rate hike may come earlier than mid-2015. Analysts are concerned that these new Fed jitters could crop up just as the market is running into geopolitical concerns surrounding the situation in Iraq and its impact on crude oil.

Asia Stocks Lower As Yen Gains On Iraq Conflict

Japanese stocks fell today as concerns over Iraq resulted in a stronger yen. The escalating conflict in Iraq continued to pressure market sentiment, pushing the cost of oil higher and sending investors toward the yen, Asia’s safe-haven currency. The yen edged a touch higher in Asian trade, with the U.S. dollar last at ¥101.84, compared with ¥102.04 on Friday. The stronger yen translated into falls for the Nikkei Average which was last down 0.7%. Australia’s S&P/ASX 200 lost 0.2%, as mining stocks dropped amid declining prices for spot iron ore, which fell 0.7% on Friday to a 21-month low. Concerns over the use of iron to finance deals and allegations of fraud involving commodities stored in China continue to rattle the market. In China, markets were mixed with Hong Kong’s Hang Seng Index down 0.2% and the Shanghai Composite was flat. Trading got off to a quiet start today, ahead of the U.S. Federal Reserve’s upcoming policy meeting. Scheduled to conclude on Wednesday, the meeting will provide a monetary-policy update for the world’s largest economy.

Russia/Ukraine Gas Deadline Passes As Talks Fail

A deadline for Ukraine to pay Russia its gas bill passed today after talks between the two sides failed to reach agreement. Russia will now switch to an advance payment system for supplying its eastern European neighbor, meaning that gas resources which also supply parts of wider Europe could potentially be shut off at any point. Russia has previously said that Kiev owes $1.95 billion for gas that has already been delivered. Under previous President Viktor Yanukovych, Ukraine had been paying a reduced price for the amount of gas that it was buying from Russia. However, after fierce street battles, a change of government in Kiev and the annexation of Crimea by Russia, Moscow ramped up the prices it charged to Ukraine. After several rounds of talks, with a representative from the European Union trying to help both sides reach a compromise, no clear solution has been found.

That sums up today’s highlights! Stay in touch throughout the day via our social media channels for all the latest market updates. We hope you have a profitable day on the markets.

Yen Touches Week Low Against Euro

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Core Durable Goods @ 12.30 & U.S. CB Consumer Confidence @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Yen Touches Week Low Against Euro

The yen touched the lowest level in a week against the euro as speculation that global policy makers will add to measures supporting economic growth damped demand for haven assets. Japan’s currency dropped versus most of its 16 major counterparts before Bank of Japan Governor Haruhiko Kuroda speaks at a conference tomorrow. The BOJ is still more inclined for easing. If global risk appetite and the global economy continue to improve, the risk is that the yen will weaken. The yen lost 0.1 percent to 139.20 per euro at 7:07 a.m. in London yesterday, after touching 139.37, the weakest level since May 16. It was little changed at 101.93 per dollar in New York, when it touched 102.05, the lowest since May 15. The euro gained 0.1 percent to $1.3658 after falling to as low as $1.3615 yesterday, a level unseen since Feb. 13.

Gold Prices Hold Steady

Gold prices dipped a touch lower today with little sign that prices would break out of their narrow range ahead of a busy week of economic reports. Gold for June delivery was down $5.10 to $1,268.60 an ounce, ending last week with a slight loss, though it didn’t stray too far away from the key $1,300 level. Analysts say that gold desperately needs some stimulus to break it out of its lethargy. Gold’s appeal this year has been burnished by the geopolitical risks in Ukraine which have heightened tensions between Russia and the West.

Investors will have plenty of economic data to chew on throughout the week, starting with durable goods, the FHFA price index and the S&P/Case-Shiller price index all before Tuesday’s opening bell. Then, after that, consumer confidence numbers, as well as manufacturing data from the Richmond Fed and the Dallas Fed will be released.

Pfizer Drops AstraZeneca Deal

U.S. pharmaceutical Pfizer has confirmed that it would not be making a further multibillion-dollar offer for AstraZeneca U.K. Last week, AstraZeneca had rejected a revised £69 billion ($116 billion) offer from Pfizer as inadequate and presenting significant risks for its shareholders. Under U.K. takeover regulations, Pfizer had until Monday to make a full and final offer for AstraZeneca. It will now have to wait six months before it can make another approach or three months if it is invited to do so. Pfizer intends to continue focusing on the execution of its plans while remaining responsible stewards of their shareholders’ capital. Meanwhile, AstraZeneca said it welcomed the climb down and would continue building on the momentum already demonstrated as an independent company. AstraZeneca’s U.K.-listed shares had come under pressure following the rejection of last week’s offer with investors voicing their disappointment that the company had not pursued a deal with Pfizer.

That sums up today’s highlights! Remember to keep in touch via Facebook, Twitter, Google+ and LinkedIn for all the latest financial developments.

We hope you have a profitable day on the markets.

Jobless Claims Likely To Rise

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Jobless Claims Likely To Rise

Data showing the number of Americans filing for first-time unemployment benefits is likely to show a slight gain in the latest weekly data. Forecasts reveal that weekly initial claims for regular state unemployment-insurance benefits will rise to 315,000 in the week that ended April 12, which is slightly up on 300,000 for the prior week. Some seasonal volatility may have accounted for last week’s drop in jobless claims to 300k which was the lowest level since May 2007, although layoffs are trending lower and hiring is gaining some momentum after being held back by the severe weather. The U.S. Labor Department will release the claims data today at 12.30 GMT.

European Shares Mixed, Dollar Falls As Yellen Pledges to Support Economy

European shares are set for a mixed open today, failing to continue a rally on Wall Street after Federal Reserve Chair Janet Yellen reaffirmed the central bank’s commitment to keep interest rates low. The FTSE is called up 1 point at 6,585, the German Dax is seen off by 8 points at 9,310 and the French CAC is seen down 3 points at 4,403. European bourses could see thin volumes today ahead of the Easter holiday weekend when many indexes are closed for a four-day weekend. In the U.S. stocks climbed after U.S. industrial production rose more than projected and Yellen reiterated that the central bank would keep up its backing of the recovery. Wall Street saw a strong close on Wednesday but those gains failed to translate to the rest of the globe. Asian stocks turned mixed following gains in this morning’s session as investors booked profits on the previous day’s rally. Investors in Europe will be monitoring events in Ukraine.

The U.S. dollar, meanwhile, fell against most of its Group of 10 peers. The dollar fell 0.2 percent to $1.3839 per euro and slid 0.2 percent to 102.03 yen, after rising 0.7 percent in the previous four days. The Japanese currency fetched 141.20 per euro from 141.24 yesterday. Financial markets in the U.S., U.K., Germany, Hong Kong, Singapore, Australia and New Zealand are among those that will be closed for a holiday tomorrow.

Google Misses Revenue Target As Trends Move Toward Mobile Advertising

Google Inc’s first-quarter revenue fell short of Wall Street targets and margins narrowed as the price of its ads continued to decline, highlighting the challenges Internet companies face as the world shifts toward mobile devices. Shares of Google were down 3 percent to $539.80 in afterhours trading on Wednesday, after initially sliding roughly 6 percent on the news. The number of “paid clicks” by consumers on Google’s ads increased by 26 percent in the first quarter, disappointing some analysts who had hoped for stronger volume growth. The average “cost per click” declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business. The world’s largest search engine, along with Facebook Inc and Twitter Inc, which are due to report financial results in coming weeks, are revamping their products and advertising business to account for smartphones.

That sums up today’s highlights! Remember that you can keep up-to-date with all the trading news and events for the day via our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets.

BOJ Holds Off Boosting Stimulus

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: BOJ Press Conference

WHAT WE’RE WATCHING TODAY:

BOJ Holds Off Boosting Stimulus as Economic Recovery Seen

The Bank of Japan has held back adding extra stimulus as policy makers said the world’s third-biggest economy can maintain a recovery even with last week’s increase in the sales tax. Governor Haruhiko Kuroda maintained a pledge to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($681 billion) per year. The economy has continued to recover moderately, albeit with some fluctuations due to the consumption tax hike, according to the BOJ. While the central bank highlighted a pickup in private investment and increasing industrial production, economists predict that the BOJ will boost stimulus by July when the strength of an economic rebound will become clearer. The BOJ is gauging the extent of an anticipated setback to the economy and prospects for achieving its 2 percent inflation goal after last week’s 3-percentage-point increase in the sales tax, the first since 1997. The price goal excludes the effects of changes in the sales tax. Kuroda has stated that Japan won’t see a repeat of the recession that followed the sales tax increase in 1997, pointing to Japan’s now-stronger financial system and an absence of a regional financial crisis that hurt the country’s exports then. The yen weakened after the announcement, trading at 102.96 per dollar in Tokyo, up 0.1 percent. The Topix index, which has climbed 6.8 percent over the past year, fell 1.7 percent, down for a third day after technology shares extended a retreat.

UK Economic Recovery ‘Not Yet Secure’

The UK’s recent economic growth might be short term and recovery is “not yet secure”, according to the British Chambers of Commerce (BCC). Recovery could stall as it relies on consumer spending, while personal debt levels are said to be too high. The BCC’s economic survey for the first quarter found that UK export orders and sales in services were at all-time highs and that manufacturing was growing consistently but challenges persist despite the progress. UK growth is still reliant on consumer spending, driven by a resurgent housing market and a declining savings ratio. Personal debt levels need to fall and it will be hard to maintain growth in the medium term without significant structural changes to the UK economy. Britain’s current account deficit was the largest in the G7 group of major industrialised nations, and could pose long-term risks if left unchecked. On Monday, Chancellor George Osborne announced further measures to help boost British exporters which would make it much less risky for banks to lend to exporting firms.

Tech Stocks Sell-Off Penetrates Through World Markets

Growing concerns over technology stocks weighed hard on stock markets around the world early this week. The latest bout of nerves started last Friday when mainstays of the Internet economy such as Google, which has surged over the past year, was hammered as investors had a change of heart and decided prices were too high. The technology-heavy Nasdaq dropped 2.6 percent on Friday, its biggest one-day drop since February. It was down a further 1.4 percent Monday at 4,072. In Europe, the FTSE 100 closed down 1.1 percent at 6,622.84 while Germany’s DAX fell 1.9 percent to 9,510.85. The CAC-40 in France ended 1.1 percent lower at 4,436.08. In the U.S., the Dow Jones industrial average was down 0.8 percent at 16,278 while the broader S&P 500 index fell 1 percent to 1,847. Renewed concerns over Ukraine also unsettled investors, particularly in Europe where investors will be looking for further clues on the economic outlook later today.

That sums up today’s highlights! Remember to keep in touch via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest news and developments in the financial markets today.

We hope you have a profitable day on the markets!

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary what’s happening in the markets today:

Main Trading Events Of The Day: BOJ Press Conference, GBP CPY y/y @ 09.30 & EUR German ZEW Economic Sentiment @ 10.00 GMT

Earnings Reports: The Coca-Cola Company. Earnings per share forecast: 46 cents. Release: Before U.S. markets open today.

WHAT WE’RE WATCHING TODAY

Nikkei Jumps As Bank Of Japan Doubles Loan Programs

Following today’s earlier statement, the Bank of Japan has kept its broad monetary policy and assessment of the economy unchanged but also doubled the size of two soon-to-expire special lending programs in a move to encourage loan growth and support the world’s third-largest economy. The board voted unanimously to keep the pace of its monetary easing unchanged, as widely expected although it would double the scale of its programs lending to banks in order to stimulate loans and support the economy. The doubling of the lending facility is, however, according to some analysts, seen as a dovish signal that the BOJ is prepared to ease further and that it’s committed to keeping liquidity extremely loose. The yen weakened to as low as 102.74 against the dollar after the BOJ’s announcement and was trading at 102.72 at 2:46 p.m. in Tokyo, down 0.8 percent. The Topix index rose 2.8 percent.

Meanwhile, Asian stocks rose, with the regional benchmark index poised for a three-week high, whilst Chinese shares fell as the central bank drained liquidity from the financial system. Both the U.S. dollar and the Euro climbed higher against the yen. After briefly dipping, the U.S. dollar climbed to ¥102.57 and traded as high as ¥102.61 from around ¥101.98 just before the bank released its statement. The dollar bought ¥101.56 late Monday. The euro also jumped against the yen, buying ¥140.55 from around ¥139.50.

Forecasters Remain Bearish As Gold Extends Gains

Gold looks likely to extend gains to fresh three-month highs this week as mixed U.S. economic data encourages safe-haven buying though some warn the rally may be capped around $1,350. A U.S. data-heavy schedule this week may drive gold higher if releases including the closely-watched housing and inflation numbers are below forecasts and help weaken the U.S. dollar, though extreme weather conditions may distort the readings. Sentiment towards gold appears to have turned around and will continue to rise if this week’s big data dump continues to show mixed results. Mixed economic numbers compounded by the extreme weather mean that it’s unlikely that the U.S. Federal Reserve will cut monthly bond purchases beyond the current gradual pace. With Janet Yellen admitting that the economy clearly needs more work, more money printing will help gold’s position at $1,300 and beyond. Gold’s best forecasters are, however, still holding to their bearish forecasts for 2014 even after the metal posted its best start to a year since 1983. They say the rebound won’t last because higher prices will stifle purchases and the Federal Reserve will continue slowing stimulus as the economy strengthens.

What Awaits The Markets This Week?

With the Federal Reserve set to release the minutes from its January FOMC meeting on Wednesday, market participants will closely monitor them for any clues relating to the outlook and the future of quantitative easing. For those who rely on economic data to determine its next move, this is not an easy time. Two straight employment reports have shown weak gains in nonfarm payrolls (113,000 in January and a marginally adjusted 75,000 in December) but the extent to which bad weather adversely impacted those numbers is also a factor. The Committee will next meet in March with a broad range of data on the economy to look at, including another jobs report, although the February employment report could also be marred by weather conditions. The Fed’s minutes could consequently shed some light on exactly how much weakness the FOMC needs to see before it deviates from its course of tapering quantitative by $10 billion per month. The Fed is unlikely to deviate unless there is a material markdown of outlook. This could put a bid under the market, some traders say. The minutes, which are due for release on Wednesday, will shed light on the decision-making and debate that marked former Fed Chairman Ben Bernanke’s last meeting which was held on Jan. 28 and 29. The Fed’s next move will be announced on March 19, after the next FOMC meeting.

That sums up today’s highlights! Keep in touch for breaking financial news to help you with your trading. We hope you have a profitable day on the markets!

Kuroda’s Policies Send Japanese Investors Overseas

Japanese investors have been leaving their home markets preferring to send their money overseas in an attempt to battle their country’s unprecedented quantitative easing. In fact, the volume of bonds marked in dollars and euros bought by Japanese investors swelled to a four-month high in November.

A net 1.48 trillion yen ($14.3 billion) worth of dollar bonds and 972.9 billion yen of euro bonds were purchased by fund managers from Japan, which makes it the largest purchase among currencies that the Ministry of Finance data has tracked. Australian-dollar bond purchases have also increased for a second consecutive month that ended 11 months of sales.

Overall last year, the yen depreciated 17 percent, the most in a single year since 1979, as reported by Bloomberg Correlation Weighted Indexes that monitor 10 major currencies. Japanese central bank governor Haruhiko Kuroda effected the currencies decline through the implementation of policies that suppressed local yields by reviving inflation, and thus also prompting Japanese investors to look for higher returns in overseas assets. December and January saw a stalling of buying with 513 billion yen in bond sales taking place over five weeks, though the weekly data has as yet to be broken up by country.

At its meeting last month, the BOJ vouched to expand the country’s monetary base from 60 trillion yen per year to 70 trillion yen. As a measure against deflation, policy makers double monthly bond purchases to over 7 trillion yen last April.

According to a report by the Ministry of Finance, the deficit of the nation’s current account increased to 592.8 billion yen in November, the greatest gap ever recorded in data that reach back to 1985.

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