Tag Archives: US dollar

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Gold Declines For Second Day In Advance of Fed Policy Meeting

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 CB Consumer Confidence @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Gold Declines For Second Day In Advance Of Fed Policy Meeting

Gold declined for a second day, trimming a monthly rise, on speculation that the Federal Reserve will further reduce U.S. monetary stimulus as it starts a two-day policy meeting today. Bullion for immediate delivery fell as much as 0.2 percent to $1,293.68 an ounce, trading at $1,295.70. Gold has advanced 7.8 percent this year in part as the tension in Ukraine spurred haven demand. With further sanctions for Russia looking certain, traders are likely to continue seeking safety in gold in the near term and if gold continues to rally, April highs at $1,331 will be the key level to look out for this week.

Euro Resilient Ahead Of Inflation Test

The euro traded at multi-week highs against the yen early today and held firm against the dollar following a surprisingly strong performance overnight as expectations for additional stimulus from the European Central Bank waned. The Euro reached a three-week peak of 142.18 yen, before slipping a touch to 141.97 yen. ECB President Mario Draghi told German lawmakers the central bank was still a long way off from implementing a bond-buying program even in the face of persistently low inflation. Still, traders said any downside surprise in the inflation numbers will weigh on the euro, especially since the market is positioning for a pick up in price pressure. German inflation figures are due later on Tuesday, ahead of the euro zone number on Wednesday. The euro was a touch firmer on the dollar at $1.3852 after recoiling from a two-week high of $1.3880, helping the dollar index recover to 79.696 from a two-week low of 79.548.

global recovery

Wall Street Divided Over Twitter’s Prospects

Not so long ago, Twitter vowed not to end up like Facebook. As it prepared to debut, the last thing the company wanted was a repeat of Facebook’s rocky IPO and subsequent sell-off. Now, ironically, Twitter’s inability to replicate Facebook’s success in mobile and online may be what is holding it back. Wall Street remains divided over Twitter as the company prepares to unveil its second set of quarterly numbers. Eleven of 31 investment analysts polled by Thomson Reuters rate it a “sell,” outnumbering the seven who deem it a “buy.” The rest have a hold rating or its equivalent. That’s a stark contrast with Facebook and Google, neither of which has a single sell rating to their name. A strong quarterly showing from Facebook last week reflected an ramped-up online and mobile advertising market that’s likely to have given Twitter a boost. Longer-term, investors remain divided over whether Twitter can ever be as mainstream as Facebook. Yet $26 billion, the company still trades at 37 times sales, against 19 for Facebook, which boasts almost six times as many users as Twitter. Indeed, bullish analysts argue that the company is on the verge of realising its larger potential. Five months after its debut, Twitter stock remains above $40, versus its $26 offering price. Twitter has always seemed better placed to make money off of its smartphone user base. Although rivals Google and Facebook dominate mobile advertising, Twitter’s ad machine may get a jump-start once it places targeted ads in apps, tailored for users and their interests, which will extend its ad reach far beyond its 241 million users. Many believe that Twitter is best-placed to grab a significant slice of huge TV ad budgets because of its growing presence as the “second screen” that TV audiences turn to online, to catch up on their favorite shows. Analysts expect Twitter to have lost almost $159 million, or about 3 cents a share, on revenue of $241.47 million in the January-March quarter, according to Thomson Reuters.

twitter ipo

That sums up today’s highlights! Keep in touch with the investment team here at Banc De Binary via Facebook, Twitter, Google+ and LinkedIn for all the latest market news. We hope you have a profitable day on the markets.

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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: USD Core Retail Sales m/m & Retail Sales m/m @ 13.30 GMT

Earnings Reports: AIG: Earnings per share forecast: 95 cents. Release: Close of U.S. markets today.

WHAT WE’RE WATCHING TODAY

Dollar Falls Before U.S. Retail Sales & Jobless Claims

The dollar headed for its biggest drop in more than a week versus the yen before today’s reports which are forecast to show that U.S. retail sales stalled. Winter weather probably took a bite out of January’s retail sales, while jobless claims data may also be affected. U.S. retail sales stagnated in January, according to economists, following a 0.2 percent gain the month before. Retail sales is one of the important data points economists are watching to see if weather is impacting the economy, or if it’s slowing down for other reasons. However, the report is likely to be inconclusive. Economists expect to see a 0.1 percent decline in headline retail sales. The number comes as another winter storm heads up the east coast, an event that could also impact on the next jobs report since this is the survey week for the February employment report. The last two jobs numbers were particularly poor, and even new Federal Reserve Chair Janet Yellen has said the weather may be to blame. She pointed out, however, that it is too soon to jump to conclusions during her first Congressional testimony as Fed chair on Tuesday. Yellen believes that the economy is in a sustainable economic recovery. As yet, recent weak employment reports haven’t been enough to sway the Federal Reserve from reducing the pace of its monthly stimulus program.

retail sales

Commodities Rise to 2014 High But Analysts Remain Bearish

Commodities climbed to the highest since December as extreme weather fuelled supply concerns for crops and energy at a time of rising imports by China. Analysts believe this year’s gains will be short-lived. The driest January since 1954 seared crops in Brazil, the top sugar and coffee grower, while freezing weather across the U.S. damaged winter wheat and cut energy stockpiles as heating demand rose. China’s imports surged 10 percent in January, driven by crude oil, iron ore and record shipments of copper, customs data show, hence Chinese data is more bullish for the world economy. Overall though, whilst the cold weather in the United States, Asia and even Europe has recently boosted momentum, analysts don’t think prices can hold up once temperatures start to rise.

Google’s Glass Begins Trials With Virgin Atlantic As It Becomes World’s No. 2 Most Valuable Firm

Virgin Atlantic has just begun a six-week trial that will equip its staff at London’s Heathrow Airport with the eyewear gadgets in an effort to shuttle first and business class passengers more quickly through the airport and into a separate wing at Terminal 3 reserved for high-end travellers. The wireless eyeglass computers may allow Virgin Atlantic and other airlines to better collate data they have on their best customers and create a more personal, concierge-like service, in a similar way to the personal efforts most luxury hotels and resorts undertake for regular guests. Virgin may expand the use of Google Glass across its network, depending on the outcome of the London test. Meanwhile, Google has raced ahead of Exxon Mobil as the world’s No. 2 most valuable company, and is fast narrowing the gap on No. 1 Apple. The ability to collect lucrative data from its users and sell them to advertisers is turning Google into a money machine few companies can match. Google’s market value is now $389.6 pulling past Exxon Mobil at $389.3 billion.

google glass

That sums up Thursday’s highlights! Don’t forget to keep in touch with us throughout the day for updates via Facebook, Twitter, Google+ and our ‘must watch’ Ahead Of The Week videos. We hope you have a profitable day on the markets!

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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: ECB President Draghi Speaks @ 15.30; BOE Gov Carney Speaks & Inflation Report @10.30 GMT

Earnings Reports: N/A

WHAT WE’RE WATCHING TODAY

Stocks Rise Along With Gold On Yellen’s Comments

U.S. stocks surged with the Dow Jones Industrial Average rising triple digits and the Nasdaq Composite turning positive for the year, as Federal Reserve Chair Janet Yellen reassured Wall Street that the Fed would continue the central bank’s policy of providing monetary stimulus to bolster the economy and expected “a great deal of continuity” with the monetary policies of her predecessor, Ben Bernanke. The House voted to suspend the nation’s borrowing limit until March 2015, without any policy conditions. This was a positive move for the markets because previous debates on U.S. government spending have weighed on global markets in the past, in particular, the budget impasse late last year that resulted in a government shutdown. Asian markets also moved higher after Yellen suggested that there would be no major change in the central bank’s policy, while stronger-than-expected trade data pushed Hong Kong higher. Gold bullion also gained again in trading today following Yellen’s testimony. The Fed is now buying $65 billion in bonds each month to stimulate the economy, down $20 billion from its 2013 pace. Many gold bugs predict inflation will follow the central bank’s accumulation of a $4.1 trillion balance sheet.

ECB’s Draghi Speaks; Will Deflation Be On The Agenda?

ECB President Draghi will deliver the keynote address at a conference in Brussels today. Euro-zone industrial output fell a seasonally adjusted 0.3 percent in December compared with a gain of 1.8 percent in the previous month. All eyes will be on Mario Draghi and any indications about economic measures that the ECB is likely to impose in order to beat deflation. The ECB may soon have to roll out the heavy artillery, in the form of an asset purchase program similar to those in the U.S., U.K. and Japan to fight the specter of deflation. Despite substantial progress over the past year, the euro-area economy remains vulnerable. Spare capacity and weak growth, along with relative price cuts by countries trying to restore competitiveness, is putting severe downward pressure on inflation. Bank of England Governor Mark Carney also releases an inflation report today where he will seek to cement investor expectations that the next increase in interest rates is some time away when he presents an updated version of his forward-guidance policy. Yields suggest Carney has convinced traders that there is enough slack in the economy to maintain the benchmark rate at a record 0.5 percent this year.

Super Mario to the Rescue?

Will Apple’s Sapphire-Screen iPhone Be Here Soon?

The latest rumours surfacing about Apple’s plans to manufacture sapphire are the most credible foundation yet for speculation that the iPhone will one day soon boast the most scratch-resistant screen on the planet. It’s not yet clear if the next-generation iPhone would get such a sapphire screen, or if the world will have to wait until 2015, presumably for an “iPhone 6s” model. Some are even claiming that it will be the iWatch that will be the first Apple device to be equipped with the scratch-resistant material. If the latest sapphire tech rumour is true, Apple’s exclusive manufacturing partner, GT Advanced Technologies, is gearing up its Arizona manufacturing facility with enough furnaces to forge as many as 200 million iPhone displays. The price of sapphire will inevitably result in driving up the retail price tag of the iPhone. A price increase could be detrimental to Apple as the iPhone already has a premium price tag. One to watch!

apple-sapphire

That sums up today’s highlights! Keep checking in for all the latest trading news via Facebook, Twitter & Google+. We hope you have a profitable day on the markets!

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Just A Minute!

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

Main Trading Events Of The Day: Several today including U.S. Non-Farm Employment Change, U.S. Unemployment Rate, CAD Employment Change & Unemployment Rate – all @ 13.30 GMT

WHAT WE’RE WATCHING TODAY

Will Bad Weather Dampen U.S. Jobs Report?

There is more uncertainty than usual surrounding January’s report, in some part due to the severe weather conditions recently which could depress figures but also due to the fact that the government will incorporate its annual benchmark revisions into the employment numbers for the past year. That could make some numbers look better and others worse than they’ve previously been reported. Expectations according to economists are that employers in the U.S. probably added more than twice as many workers in January as in the prior month and the unemployment rate held at a five-year low. Payrolls increased by 180,000 workers after a 74,000 gain in December that was the smallest since January 2011, according to the median forecast of 92 economists. The jobless rate held at 6.7 percent, the lowest since 2008, the survey also showed. In the meantime, gold has nudged higher with investors placing bullish bets ahead of the hotly anticipated jobs report.

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Dollar Holds Gain Before U.S. Jobs Report As Euro Gains

The dollar held a gain versus the yen before today’s U.S. data which may show jobs growth increased in January from the slowest pace in almost three years thus fuelling speculation that the Federal Reserve will end asset purchases this year. The dollar traded at 102.07 yen as of 2:25 p.m. in Tokyo after rising 0.7 percent to 102.11 yesterday but has fallen against all but one of its 16 major peers this week. Meanwhile, Europe’s 18-nation currency was at $1.3589 after gaining 0.4 percent, the most since Jan. 23, to $1.3590. After concluding a policy meeting yesterday, ECB President Mario Draghi said that the euro zone is not plagued by deflation and that the central bank could take action to counter low inflation as soon as next month, when more data on the euro area’s economy will be available. The euro was steady against the U.S. dollar after rallying to a one-week high of $1.3619 on Thursday.

Apple Makes A $14 Billion Acquisition … Of Apple.

Over the past two weeks, Apple has purchased $14 billion, amounting to 3% of its own shares. The company was reportedly “surprised” by the drop in Apple’s stock after its earnings, viewing the buybacks as opportunistic. CEO Tim Cook said this buyback “means that we are really confident on what we are doing and what we plan to do.” Big share buybacks like this usually send a signal that a company believes it’s underpriced. The move has been described as the equivalent of Apple buying, “four Nests and a Motorola.” Whether this is a sign that Apple will shy away from making big acquisitions remains to be seen but according to Apple, it has no problem spending ten figures for the right company, for the right fit that’s in the best interest of Apple in the long-term. As of last quarter, Apple had $159 billion in cash.

That sums up today’s highlights. Remember to watch for those important earnings announcements later today. Keep in touch with us via Facebook, Google+ & Twitter for breaking news, educational information, trader tips and more. Trade only with Banc De Binary - the experts! We hope you have a profitable day on the markets.

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Indices Hit Record Highs on Soaring Stocks

Benchmark indices hit record highs as stocks rallied yesterday, while Treasuries slipped, after the Federal Reserved announced it had gained sufficient confidence in the job market to begin tapering, promising to keep interest rates low. Both the U.S. dollar and commodities gained on the market.

The Standard & Poor’s 500 Index (SPX) climbed 1.7 percent, its biggest advance in 8 weeks, and the Dow Jones Average (INDU) surged 292.71 points. The U.S. equity volatility benchmark gauge lost the most since October. The dollar skyrocketed to a five-year high against the yen and gained against most of its major peers.

Equities have been taking hits on all sides since May, when Bernanke announce that a tapering programmed would likely start this year. The S&P 500 plunged 5.8 percent in the period from 21st May through 24th June. After the Fed shocked the markets with its decision not to taper in September, the index regained lost points and set new highs.

The index had lost 1.5 percent from its last record reached on 9th December, on the speculation that improving U.S. economic data would prove sufficient for tapering to begin. The S&P has climbed a total of 27 percent this year, the mist since a 1997 surge of 31 percent.

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