Tag Archives: U.S. dollar

Dollar Holds Steady After Rally

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: GBP Manufacturing Production @ 08.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Holds Steady After Rally

The dollar held steady versus a basket of major currencies today having retreated from the previous day’s two - week high. The dollar index was at 80.233, off a 1-1/2-week peak at 80.359 set on Monday but managed to hold on to most of the gains made following strong payrolls data last Thursday. The greenback’s lacklustre performance came as U.S. Treasury yields slipped from recent highs after Wall Street turned cautious ahead of the second-quarter earnings season starting this week. This helped support the euro, which held steady at $1.3605, after a low of $1.3576 on Monday after an unexpectedly big fall in German industrial output unsettled the common European currency. The disappointing data added to increasing signs of a weaker second quarter in Europe’s largest economy and fanned expectations the European Central Bank may have to loosen monetary policy further in the months ahead. The dollar eased 0.1 percent to about 101.82 yen, nudging away from a two-week high of 102.27 yen set last Thursday. Meanwhile, the Fed is thought likely to continue with its tapering of asset purchases and to start raising interest rates sometime next year.

Europe Shares Seen Slightly Higher With Upcoming Data & Earnings

European shares are set to open higher today on Tuesday with a series of data due for the euro zone and as investors contemplate the beginning of corporate earnings season. The FTSE is up 2 points at 6,82 and the German Dax 4 points higher at 9,910. Germany is set to receive foreign trade data which could set the tone for the day’s trading session. European stocks closed lower on Monday following weak industrial production data for Germany, which stoked fears of a slowdown in Europe’s largest economy. Investors have also been anticipating the upcoming earnings season with Alcoa - the traditional signal for the start of the season - due to release results in the U.S. on Tuesday evening. Traders are looking for profit growth from corporates to give them a reason to keep buying stocks and push benchmark indexes higher. Firms listed in the pan-European Stoxx 600 are predicted to grow 17.7 percent from the second quarter in 2013 with nine of the index’s 10 sectors set for an improvement.

Twitter Appoints Global Media Chief

According to reports, Twitter has appointed Katie Stanton its new media chief, positioning the former Google executive at the heart of its vital relationships with Hollywood and the global media industry. Twitter has reported lacklustre user and usage growth for the last couple of quarters, and its stock price has nearly halved in the last six months. Stanton will oversee Twitter’s continuing efforts to court TV networks, Hollywood studios and other media companies around the world.

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

Dollar Steady, Drawing Support From Rise In US Yields

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 Steady Drawing Support From Rise In US Yields

The dollar held steady against a basket of major currencies on Tuesday, holding on to gains made the previous day as a result of higher U.S. bond yields after last week’s solid U.S. jobs report. The dollar index stood at 80.607, keeping above a near two-week low of 80.240 touched last Friday. The dollar held its ground against the euro, which pulled back from last week’s high of $1.3677 as a short-covering rally following the European Central Bank’s easing steps lost momentum. The Euro was steady at $1.3591, after having lost 0.4 percent on Monday. The retreat in the euro brought it back closer to a four-month low of $1.3503 touched on Thursday shortly after the ECB cut interest rates to record lows and took its deposit rate into negative territory for the first time. The euro could face further downward pressure in the near term, hampered by a widening in interest rate differentials between the United States and the euro zone, according to market strategists, and interest rate differentials could be a driver for the euro versus the dollar. A rise in the benchmark 10-year U.S. Treasury yield from an 11-month low of 2.042 percent set in late May has helped bolster the greenback’s appeal. The 10-year U.S. Treasury yield last stood near 2.60 percent.

Global Stocks Near Record Highs As Volumes Decline

Global stock markets are on the brink of record highs, but analysts warn of alarm bells ringing as volumes in the markets are low and show no sign of bottoming out. U.S. equity indices hit record highs last week and looked set to advance their gains on Monday as the Dow Jones Industrial Average rose to an intraday record. In Europe, stocks also started the week on a positive note. The MSCI All Country World Index, which tracks equity markets across 45 countries, was higher on Monday at 426.77, just shy of its record high of 428.63 hit in 2007. However, even as the bull run continues, supported by data pointing to an economic recovery in the U.S. and Europe, traders are concerned about the lack of price volatility and low trading volumes, which they say make it difficult to detect investor mood. During the financial crisis, U.S. equity volumes traded at around 9 billion shares a day. Now, around 5 billion shares a day are being traded. Small volumes are also adding to low equity market volatility, which has dropped to levels not seen since 2007. As equity markets trade around levels not seen since before the global financial crisis in 2008, economists have warned that a correction could be on the way.

Paypal Chief Joins Facebook To Strengthen Mobile Messaging

A stronger set of features, possibly including payments, may be coming to Facebook’s messaging properties as former PayPal president David Marcus joins the social network as head of mobile messaging. Facebook’s hiring of Marcus represents a serious investment by the company to strengthen its messaging software. Facebook did not say what improvements specifically might be coming, but it’s clear the company is looking to further expand the use of its messaging apps, and maybe introduce monetization features. Messaging has grown to become an important part of Facebook’s service. Around billion messages are sent through Facebook daily, according to the company. Messenger, Facebook’s standalone messaging app, is also used now by more than 200 million people every month, just under one-fifth of Facebook’s total user base. Facebook is becoming more active in mobile messaging with other apps, too, having recently purchased WhatsApp, and with a new photo messaging app in the pipeline.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Dollar Headed for Best Week Versus Yen Since April Before Payrolls

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. Non-Farm Payrolls @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Headed for Best Week Versus Yen Since April Before Payrolls

The dollar headed for its biggest weekly gain since April versus the yen ahead of today’s U.S. Non-Farm Payrolls report which is expected to show that employers added more than 200,000 jobs for a fourth month as the labour market recovers. The euro was little changed today after jumping the most since March versus the dollar yesterday as the market rejected the European Central Bank’s unprecedented effort to weaken the single currency. The dollar was little changed at 102.34 yen having gained 0.6 percent this week, the most since the period ended April 18. The euro traded at $1.3657 after jumping 0.5 percent yesterday, the most since March 6. The Euro was little changed at 139.75 yen.

Meanwhile, the Dow and the S&P 500 ended at a new record on Thursday after the European Central Bank cut rates to record lows and pledged to do more if needed to fight off the risk of deflation. Investors are now focused on today’s U.S. payrolls report for May. It is expected to show job growth slowed last month and the unemployment rate ticked up, but not by enough to upset the view that the economy is bouncing back. The number of Americans filing new claims for unemployment benefits rose last week, but the underlying trend continued to point to a firming labor market.

Draghi Fights Deflation With Banks Rather Than Bonds

The banking system rather than the bond market is Marion Draghi’s chosen route as his best ally, for now at least, in the fight against deflation. The European Central Bank yesterday cut interest rates to unprecedented lows and its president unveiled measures to beef up lending for banks in a bid to revive inflation hovering close to a quarter of his target. With much hinging on whether banks will boost credit themselves, failure to spur consumer prices will leave Draghi with little option but to enter the uncharted terrain of U.S.-style bond buying. Some executives have more hope than confidence that Draghi’s current plan will work. The negative deposit rate is aimed at stemming unwarranted increases in money-market rates and weakening the euro, yet could backfire if banks retrench further or pass the cost on to customers. A risk of the new lending venture is that banks may pass on the money only to find companies can’t repay it which may mean that Draghi ultimately has no choice but to engage fully with QE.

Higher Coffee Prices Hit Consumers

The moment to hoard cheap coffee beans has passed. The price of coffee futures peaked in April and the higher commodity costs are now hitting consumers at the supermarkets. Coffee prices spiked after drought hit the crop in Brazil, the world’s largest grower, even though rains have recently eased some of the damage. Changes in the futures market don’t tend to show up in retail prices for months. In February, Arabica futures rallied by more than 20 percent to start the year. After reaching a high of $2.12 per pound in April, coffee futures prices have since cooled somewhat so there’s hope yet that retail prices will fall again, in time.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Dollar Rises As This Week Could Be Crunch-Time For The ECB

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Main Trading Event Of The Day: EUR CPI Flash Estimate @ 09.00 GMT

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Dollar Rises As This Week Could Be Crunch-Time For The ECB

The dollar rose against the euro on Monday as disappointing German inflation data along with the expectation of very weak May inflation figures in the Eurozone, were the latest signs that the European Central Bank could be forced to ease monetary policy this week to fight low inflation. German inflation for May missed expectations, with the EU-harmonized annual reading falling to 0.6% from 1.1% in April. Separately, data showed the region’s manufacturing growth slowed by more in May than initially estimated. Market participants believe that the ECB cannot afford to do nothing this week, having intentionally raised hopes of further monetary easing so the expectation is that the ECB will go ahead and cut rates. The maximum impact from an ECB rate cut would come with a negative deposit rate and liquidity-boosting measures. The goals would be to cap EUR appreciation while reducing fragmentation and strengthening forward guidance. The euro EUR/USD fell to $1.3598 from $1.3635 on Friday. The euro has fallen since ECB President Mario Draghi hinted that easing could come in June. The ECB will issue a decision on Thursday, followed by a press conference by ECB President Mario Draghi. At the same time, the Federal Reserve is on track to finish its stimulative bond-buying program by year end, setting up for eventual rate hikes.

More Monetary Easing Could Be On The Way As Australian Economy Slows

Australia’s economy appears to be slowing and some economists argue that a more subdued outlook could lead to further monetary easing from the country’s central bank. Australia is due to report first quarter economic growth on Wednesday. While economists expect robust growth of 3.2 percent on-year, up from 2.8 percent in the previous quarter analysts expect the economy will take a turn for the worse in the second quarter with growth expected to slow to 0.4 percent on-quarter from 0.7-0.8 percent in the first quarter. This pull back may prompt the Reserve Bank of Australia to take a more dovish stance. Australia’s economy enjoyed 20 years of strong growth thanks to its mining boom, but lost some of its luster recently as the boom showed signs of peaking and growth in China, its largest trading partner, slowed. Furthermore, Australia’s conservative government delivered the country’s harshest budget in 20 years last month and many economists are concerned about the toll it will take on the economy. Business and investor confidence dropped following the budget, while red-hot housing prices eased, a factor that economists worry could dampen consumer spending. Financial conditions have tightened and consumer sentiment is at levels not seen since prior to the current rate easing cycle. The RBA left interest rates at a record low of 2.5 percent on Tuesday, for the ninth straight month.

Dow & S&P End At Record Highs

The Dow and the S&P 500 finished at record highs again yesterday after a reading on U.S. manufacturing was revised to show more strength than initially indicated. Industrials and material stocks were among the day’s biggest gainers, while the technology sector ended lower, weighed down by big names like Apple and Google. The Institute for Supply Management officially corrected its earlier report to show that the pace of growth in the U.S. manufacturing sector accelerated in May. Wall Street fell initially after the first report, with all 10 S&P 500 sector indexes down for the day at one point. The Dow Jones industrial average rose 26.46 points to 16,743.63 as the S&P 500 gained 1.40 points to 1,924.97. The Nasdaq Composite, however, dropped 5.42 points to 4,237.20. The Dow ended at a second consecutive record high while the S&P 500 closed at a third consecutive record though volume was still slight, suggesting a lack of conviction behind the advance.

That sums up today’s highlights! Don’t miss our regular updates on today’s tradable events via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets.

Dollar Pauses After Rally; Euro Close To 3-Month Low

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. Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Pauses After Rally; Euro Close To 3-Month Low

The dollar hovered near a two-month high against a basket of major currencies today, taking a pause after rallying due to a shake-out of long positions in sterling and a drop in the euro. The dollar index eased 0.1 percent to 80.490, close to Wednesday’s high of 80.581, its highest level since early April. A break above 80.599, the April 4 peak, will take the index back to highs not seen since mid-February. Traders seemed to be at a loss to explain the greenback’s rise apart from pointing to month-end dollar demand. The euro edged up 0.1 percent to $1.3604, holding slightly above a three-month low of $1.3587 set on Wednesday. Expectations of some policy action from the European Central Bank (ECB) have been mounting, a key reason for the recent underperformance in the euro. Many economists expect the ECB to cut its deposit rate into negative territory next week.

Gold Is Sinking…Will It Get Worse?

Gold extended losses to a third straight session on Thursday, hitting 16-week lows on a stronger dollar and weak physical demand in top buyer China. The gold market continues to show more signs of weakness as the precious metal closed at $1,259.30 per ounce, down another $6.20 after Tuesday’s $25 slide. The fact that Wednesday’s drop takes bullion below its second critical support level of $1,262 is troubling some traders as technical pressure could continue to weigh on gold in the days ahead. Gold is seen as looking increasingly weak as geopolitical concerns over Russia and Ukraine subside and that the only motivation to buy gold might be an upward turn in inflation or a war, neither of which seem to be a reality at the moment. In the meantime, Wednesday’s stronger dollar offered no support. The question is being asked by many traders, therefore, is, where does gold go from here?

Apple To Acquire Beats Electronics

Apple has announced that it will acquire headphone maker Beats Electronics for $3 billion.The deal is expected to close in the fiscal fourth quarter. Apple will pay $2.6 billion in cash and another $400 million in equity. It will also continue to use the Beats brand. Beats Electronics is a key vendor in the premium headphone market. Apple reportedly began talks to buy the company in early May. Beats’ profit margins in the headphone market may be substantial. A pair of its high-end headphones sell for as much as $450, but production costs across the brand are said to run to only about $14 a pair. Apple said the deal would add to earnings in fiscal 2015. Beats also recently entered the streaming music business placing it in head-to-head competition with much larger veteran rivals Pandora and Spotify.

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Dollar Falls As Investors Await Fed Minutes

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 Falls As Investors Await Fed Minutes

The U.S. dollar fell against its major rivals on Monday as investors struggled to get a better perception of how the Fed views the current pace of economic growth. Fed Chair Janet Yellen said while the overall economy is on track to improve this year, recent weakness in the housing market has become a concern. The Fed is on track to finish its bond-buying program by the end of the year, setting up expectations for an eventual hike in interest rates. Higher interest rates are likely to boost the dollar because they make dollar-denominated assets more attractive. Nevertheless, the Fed has emphasised that it will keep rates near zero for a while after its bond purchases end. Minutes from its latest meeting, due this week, may shed light on how an eventual rate hike could be carried out. The dollar USDJPY traded at ¥101.41 versus ¥101.53 late Friday, rebounding from its intraday low of ¥101.11. Its intraday low was below its 200-day moving average of ¥101.25.

Could A Shift In Sentiment Be Underway For Stocks?

Traders are watching to see whether a shift in sentiment may be underway for Stocks. Nasdaq, at the heart of the market’s recent selling, found its footing late last week and built on it Monday, outperforming the Dow and S&P 500, gaining 0.9 percent to 4,125. Nasdaq has been pressured for weeks by selling in tech, social media, biotech and other momentum names, while the Dow and S&P hit new highs. The S&P and Dow, meanwhile were up 0.4 percent and 0.1 percent respectively. Apple and Google were both higher, with Apple closing above the psychological $600 level. Analysts noted the negative head and shoulders top that looked to be forming in the Nasdaq chart is less apparent as the Nasdaq trades higher. The worst performers in the S&P Monday were all defensive sectors, led by utilities. The sector was off 1.5 percent, while tech was the best performer, up 0.8 percent. In the Treasury market, Traders said the positive action in stocks weighed on Treasury prices. But the debate continued over whether Treasury yields are responding to a weakening economy or something else.

Gold Trades Below $1,300 On Lower Demand

Gold traded below $1,300 an ounce after its advance yesterday hurt purchases and as investors assessed the outlook for monetary stimulus in the U.S. Bullion for immediate delivery traded at $1,293.85 an ounce from $1,292.97 yesterday. The metal climbed to $1,305.48 yesterday on speculation that a newly elected government in India will relax import restrictions in the world’s second-largest consumer. In China, the top buyer, volumes for the benchmark spot contract in Shanghai fell to 11,419 kilograms yesterday, compared with a two-month high of 20,820 kilograms on April 24. Chinese purchases helped stem a price rout last year on record redemptions from bullion-backed exchange-traded products. Gold continues to trade in range as Ukraine uncertainty is still providing short-term support - but buying interest falls once prices get above $1,300. Euro weakness is also hurting gold.

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We hope you have a profitable day on the markets.

Is There An End In Sight To The Six-Year Bull Run?

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. Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Is There An End In Sight To The Six-Year Bull Run?

Are stocks telling us that a bear market is coming? That’s the opinion of some analysts who point out that bear markets ‘start with a whimper or a bang’. When it starts with a bang, the first clue will be a major break in the market that no one can explain. That will eventually be followed by a correction at which point everyone will be aware that something bad has happened. Should this happen, indexes will fall by double digits, investors will panic, and stocks will nosedive. But when a bear market starts with a whimper, it confuses nearly everyone. A meandering, volatile market is frustrating. At first, bulls will be hopeful that the market will keep going up, but eventually, the market tops out and retreats. Typically, a market making new highs is a healthy sign. In a looming bear market, new highs on lower volume is a warning sign. Right now, the strongest case for the bulls is the Fed but in the history of the stock market, no institution has been able to prevent a bear market. What might cause the market to snap is not certain - it could be an economic event, a geopolitical crisis, or a spike in interest rates. If it happens, nearly everyone will realise the market is in trouble at which point everyone will attempt to sell at once. Is that crunch time getting closer? No one knows but some believe a bear market is inevitable sooner rather than later.

The U.S. stock market closed broadly lower yesterday, as investors turned cautious amid a sell-off of small and high-growth companies. The benchmark S&P 500 and Dow Jones Industrial Average retreated from record levels set on Tuesday. The S&P 500 finished 8.92 points, or 0.5% lower at 1,888.53. The Dow Jones Industrial Average broke its five-day winning streak and closed 101.47. points, or 0.6%, lower at 16,613.97. The Nasdaq Composite ended the day down 29.54 points, or 0.7%, at 4,100.63.

Dollar Holds Losses Before Yellen Speaks Today

With Federal Reserve Janet Yellen due to speak later today and expectations that the central bank will maintain stimulatory policies, the U.S. dollar managed to hold losses against the majority of its 16 major peers after touching its lowest in almost a week versus the yen yesterday. Yellen told Congress last week the economy needs support. A report showed Japan’s gross domestic product expanded at the fastest pace in 2 1/2 years, damping bets for additional Bank of Japan easing. The euro remained higher versus the pound before figures that may indicate growth accelerated in the eurozone. The dollar slipped 0.1 percent to 101.83 yen after touching 101.66, the lowest level since May 9. It traded at $1.3718 per euro from $1.3715.

WTI Drops From Three-Week High; Brent Remains Steady

West Texas Intermediate slid from a three-week high after government data showed crude inventories expanded as production increased to a 28-year peak in the U.S. Brent was steady in London. Futures fell as much as 0.5 percent in New York, the first drop in four days. Crude stockpiles rose to a near-record last week as output climbed to the highest rate since 1986. WTI for June delivery declined as much as 47 cents to $101.90 a barrel on the New York Mercantile Exchange reaching $102.11 at 3:15 p.m. Sydney time. The volume of all futures traded was about 19 percent below the 100-day average. Prices are up 3.8 percent this year. Brent for June settlement was 11 cents lower at $110.08 a barrel on the London-based ICE Futures Europe exchange.

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U.S. Retail Sales Likely To Climb; Dollar Touches One-Week High

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Main Trading Event Of The Day: U.S. Core Retail Sales @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

U.S. Retail Sales Likely To Climb; Dollar Touches One-Week High Vs Yen

Today’s reports are likely to show that retail sales probably climbed 0.4 percent in April, following a 1.2 percent gain in March, although not at March’s rapid pace. The spike in March reflected the return of warmer weather after the cold winter. In April, auto dealers offered heavy discounts and sold slightly fewer cars which may suppress the headline number. Auto purchases account for about 25% of overall retail sales. However, spending in other categories appeared to be steady. Retail sales are a good indicator of how the economy is doing and account for about one-third of what consumers spend, rising sharply when U.S. growth accelerates. While sales have slowed in each of the past two years, economists expect the recent rebound in hiring and economic growth to encourage consumers to spend more. The retail report will be issued @ 12.30 GMT.

The U.S. dollar, meanwhile, rose to the highest level in a week versus the yen before today’s U.S. retail sales data. The dollar traded near the strongest in a month against the euro as improving U.S. economic data bolstered the case for the Federal Reserve to continue tapering stimulus, moving closer to the first interest-rate increase since 2006. The yen declined against most of its major peers as Japanese stocks rose. The dollar rose 0.1 percent to 102.25 yen as of 12:50 p.m. yesterday, after earlier touching 102.24, the most since May 5. It was unchanged at $1.3757 per euro, after reaching $1.3745 on May 9, the strongest since April 8. The yen fell 0.1 percent to 140.66 against the Euro.

U.S. Posts Smaller Budget Surplus In April Than Forecast

U.S. budget data yesterday revealed a smaller budget surplus in April than projected as spending increased at more than twice the pace of tax receipts. Revenue exceeded spending by $106.9 billion last month, compared with a $112.9 billion surplus a year before. The median estimate was for a $114 billion surplus. So far this fiscal year, which began Oct. 1, the U.S is running a budget shortfall that’s about 37 percent smaller than it was a year earlier and was the narrowest at the seven-month mark since 2008. There was a little more growth in spending than would have been anticipated. The economy is starting to recover at a fairly decent pace, excluding the first-quarter slowdown, but given that the outlook is positive for growth this year, continued lower deficits can be expected.

Indian Rupee Having One Of The Best Runs In 2014

India’s economy ended 2013 growing at the slowest rate in a decade and now faces the fastest inflation rate of all the emerging markets at around 8 percent. Fears of the Federal Reserve scaling back its bond purchases sent the Indian rupee plunging to a record low late last year and had strategists predicting more declines this year on worries about sharp outflows from emerging markets. Instead, the currency has strengthened nearly 4 percent in 2014, with more strategists changing course and jumping on the bullish bandwagon. The ongoing election and hopes for new leadership are an important part of the sentiment reversal. Investors are also confident in the leadership at India’s central bank with Raghuram Rajan, former International Monetary Fund chief economist at the helm. With his international and investor credibility, Rajan has been on a mission to fight inflation, raising interest rates 75 basis points to 8 percent. Those higher rates have attracted foreign money in search of yield. Money has continued to flow into India and the rupee, the global environment is EM-friendly and with central bank credibility in good shape, the INR continues to ride a global risk-friendly wave.

That sums up today’s highlights! Remember to keep in touch with us for all your important trading news and information. We’re always on Facebook, Twitter, Google+ and Twitter! We hope you have a profitable day on the markets.

Dollar Close To Recent Lows As Yellen Testimony Awaited

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 Fed Chair Yellen Testifies @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Close To Recent Lows As Yellen Testimony Awaited

Janet Yellen’s appearance today in front of the Joint Economic Committee will be followed for any shifts in the Fed’s economic and policy outlook following the recent employment figures. Traders across the financial markets will be watching to see if she has a message that could alter the course for interest rates. The U.S. dollar languished close to six-month lows against a basket of major currencies today as investors braced for the possibility that dovish comments from Janet Yellen could further undermine the greenback. The dollar index sank nearly a half percent Tuesday and is now down nearly a full percent in the last week. The dollar was weaker across the board, falling against the euro, yen, sterling, Swiss franc and major emerging market currencies such as the Indian rupee and Turkish lira. The dollar index was at its lowest level since October 2012, and its lowest level against the pound since August 2009.

Frustration has been growing among some players at the dollar’s inability to move higher even after the payrolls report, as the Federal Reserve continues to scale back its bond-buying support. Market consensus seems to be forming on the view that the Fed is still a long way from raising interest rates even after it ends its quantitative easing program, which is expected later this year. Analysts expect the dollar to recover when there’s sign of inflation or a further dip in the unemployment rate.

Brent Edges Up On Fall In U.S. Crude Stocks & Ukraine Risks

Brent Crude edged higher above $107 per barrel today after an industry report showed U.S. crude stocks declined last week, while increasing geopolitical risks in Ukraine helped put a floor under prices. Crude inventories in the United States fell by 1.8 million barrels last week, going against analysts’ expectations for a 1.4-million-barrel gain. Investors now await confirmation of the API numbers from the U.S. Department of Energy’s Energy Information Administration, which releases its more closely watched data later on Wednesday. Brent crude rose 26 cents to $107.32 a barrel by 0352 GMT, after ending the previous session 66 cents lower. U.S. crude gained 60 cents to $100.10 after the contract had settled 2 cents higher. Heightening tensions in Ukraine and the possibility of the country slipping into civil war also helped lift oil markets, as traders weighed the risk of supply disruptions from Russia, the world’s biggest oil producer.

Twitter Drops Nearly 18% As Lock-Up Period Expires

Twitter dropped sharply on Tuesday as nearly 500 million shares from company insiders became eligible to be sold. The stock fell nearly 18 percent on record volume of more than 124 million shares to a fresh all-time low since their trading debut on Nov. 7. The lock-up agreement that expired this week applied to about 470 million shares, or 82 percent of Twitter’s equity. With the stock’s recent selloff, Twitter’s current market cap is at $19 billion. Tuesday’s reaction to Twitter’s lock-up expiry was in sharp contrast to that of Facebook in late 2012. Facebook shares jumped 13 percent on Nov. 14 that year, when its lock-up expiry of roughly 800 million shares did not trigger an immediate wave of insider selling. Last week, Twitter’s net loss grew by more than $100 million in the first quarter, though the company’s operating earnings and sales topped Street expectations. Monthly active users hit 255 million, with mobile MAUs making up 78 percent of the total.

That sums up today’s highlights! We hope you have a profitable day on the markets

No Surprises Expected At Today’s Fed Meeting

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

No Surprises Expected At Fed Meeting; Incremental Taper Set To Continue

The Federal Reserve ends a two-day meeting today with its 18.00 GMT statement, where it is expected to announce that it will cut back its quantitative easing, bond buying program by a further $10 to $45 billion a month. The Fed is likely to discuss its statement, the economy and the conditions that might lead it to raise short term interest rates. The central bank’s policy statement could be a little more upbeat on the margin, as recent economic data has supported the central bank’s conclusion that economic growth was only temporarily held down in the first quarter by winter storms. In March, the Fed statement said that the economy slowed in March “in part” because of the storms.

The data the Fed will review during its meeting will also interest the markets. First quarter GDP will be released and economists expect a super sluggish 1.2 percent rate of growth in the first quarter. On the upside, ADP also releases its private sector payroll report and expects a 210,000 increase in April payrolls, close to what is expected in the government’s Friday jobs report. Fed officials believe the economy is on track to slowly improve in the second half of the year and could be strong enough for the central bank to begin to raise short-term interest rates in the second half of 2015.

Dollar Up Versus Euro Following Soft German Inflation

The U.S. dollar rose against the euro on Tuesday after a softer than expected reading on German inflation added to mounting concern about the euro zone’s low inflation, which could initiate further easing from the European Central Bank if it continues. The euro EUR/USD fell to $1.3809 from $1.3851 late Monday. A preliminary reading on German HICP inflation showed an increase of 1.1% in April, missing estimates of a 1.3% rise in inflation. The central bank targets inflation of just under 2% in the medium term as a guidepost for its monetary policy. The ECB has maintained that its inflation expectations remain anchored, while pointing out that continued low levels of inflation could pose a risk to those expectations. ECB officials have highlighted the high level of the euro exchange rate as a factor weighing on inflation and have mentioned quantitative easing as a valid policy option. Most analysts agree that the euro likely won’t substantially lower from its current level until a concrete action is taken by the central bank.

Twitter’s Lackluster Results Leave Investors Twitchy

Twitter reported lackluster user and usage growth for the second consecutive quarter yesterday, deepening investor concerns about its struggle to gain a mass following. Twitter’s stock fell more than 10 percent after hours to $38.05, below its post-initial public offering low of $38.80 on November 25. More worryingly, the company said its 255 million monthly users, on average, appeared to check the service less frequently than a year ago. The results revealed slowing momentum at a company that exuberant investors just six months ago had argued could one day match Facebook’s scale. At its peak in December, Twitter enjoyed a $46 billion market capitalization on just $665 million of revenue in 2013, making it one of the world’s priciest stocks. Cracks began to show in February, when Twitter disclosed that user growth had fallen to its lowest rate in years, prompting Chief Executive Dick Costolo to promise tweaks to Twitter’s design. Investors will be closely monitoring Twitter stock prices as these new developments are implemented amid the latest disappointing earnings report.

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