Tag Archives: USD

Euro Wobbles On ECB’s Cautious Stance, Dollar Wavers

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: CAD Employment Change @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Euro Wobbles On ECB’s Cautious Stance, Dollar Wavers

The euro was on the backfoot early today after European Central Bank President Mario Draghi struck a cautious note on the euro zone economy. The European Central Bank’s decision yesterday to leave interest rates unchanged was not unexpected, but Draghi said the Ukraine crisis threatened the economy and weakened the euro. The euro traded little changed at $1.3360 after falling about 0.15 percent overnight. The currency which hit a nine-month low of $1.3333 on Wednesday stands to lose about 0.5 percent on the week.

Traders are also watching out for the outcome of the Bank of Japan’s monetary policy meeting later in the day for any cues. While the BOJ is expected to stand pat on policy, a weaker assessment of the economy by policymakers could stoke expectations of further monetary easing and dent the yen.

Draghi Blames Italy As Recession Tarnishes Euro Area

Mario Draghi has blamed Italy itself for its third recession since 2008.The day after data showed the euro-area’s third-biggest economy unexpectedly contracted last quarter, the European Central Bank president singled out his country’s lack of structural reform and the disincentive for investment it engenders. This followed an opening statement regarding the region’s uneven recovery. The comments may increase pressure on Italian Prime Minister Matteo Renzi to turn around an economy with youth unemployment above 40 percent and a recession that threatens the 18-nation currency bloc’s nascent revival. The ECB president’s comments on his homeland were blunter than normal, adding to the contrast with countries such as Spain that have engaged in more structural adjustments.

Gold Climbs To 3-Week High As Iraq Tensions Rise

Gold has advanced to the highest level in three weeks, due to end the longest run of weekly losses since September as haven demand increased on unrest in the Middle East and tension over Ukraine. Bullion for immediate delivery rose as much as 0.5 percent to $1,318.72 an ounce, the highest since July 18. A fourth day of gains would make it the longest rally since June. Fighting in Ukraine and the Middle East helped gold rebound this year from the biggest drop in more than three decades. Gold has risen 1.9 percent this week even though the dollar reached a nine-month high against the euro on signs the U.S. is recovering while Europe’s economy falters. Prices dropped for the previous three weeks. European Central Bank President Mario Draghi yesterday signaled monetary policy will diverge from the U.S. for an extended period of time.

That sums up today’s highlights! Don’t forget to keep in touch via the social media platforms for all the latest trading updates of the day. We hope you have a profitable day on the markets.

USD Off To Slower Start In August

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WHAT WE’RE WATCHING TODAY

Dollar Gets Off To Slower Start In August

The U.S. dollar got off to a cooler start today after experiencing its biggest one-day fall in almost a month after a series of economic data led markets to push back expectations for the start of the Federal Reserve’s rate-tightening cycle. U.S. jobs growth slowed in July, the unemployment rate unexpectedly edged up and inflation was restrained, a mix of figures that may indicate the Fed will keep interest rates low for longer. The dollar index was last at 81.321 .DXY having retreated from a 10 1/2 month peak of 81.573. It had fallen 0.2 percent on Friday, a modest decline but still the biggest one-day fall in over three weeks. The index had rallied more than 2 percent in July as improving U.S. data convinced markets that an interest rate rise could be less than 12 months away. That allowed the euro to push back above $1.3400 EUR and off an eight month trough of $1.3366 plumbed last week. Against the yen, the dollar recoiled to 102.56 JPY, having stretched to a near four-month high of 103.15.

S&P 500 Sees Biggest Weekly Decline Since 2012

Data showing U.S. job growth eased off in July and the unemployment rate unexpectedly rose suggests that the Federal Reserve may keep interest rates low for a while. The jobs growth, which came in below economists’ forecasts, relieved some investors worried about how soon the Fed could increase interest rates after data on Thursday showed U.S. labour costs recorded their biggest gain in more than 5 1/2 years in the second quarter. Seven of the 10 S&P 500 sectors ended lower with S&P financials among sectors with the biggest losses. The Dow Jones industrial average fell 69.93 points to 16,493.37, the S&P 500 lost 5.52 points to 1,925.15 and the Nasdaq Composite dropped 17.13 points to 4,352.64. For the week, the S&P 500 fell 2.7 percent, its biggest weekly percentage loss since the week ending June 1, 2012. The Dow ended down 2.8 percent for the week, while the Nasdaq fell 2.2 percent. The Dow’s losses pulled it deeper into negative territory and is consequently down 0.5 percent for the year to date.

WTI Trades Near Six-Month Low Before Economic Data

West Texas Intermediate crude traded near the lowest price in six months before data that will signal the strength of the economy in the U.S., the world’s biggest oil consumer. Brent was steady in London. Futures were little changed in New York after capping the biggest weekly decline in seven months on Aug. 1. The Markit Economics purchasing managers index for U.S. services is due tomorrow, while factory order data is also scheduled this week. WTI for September delivery was at $98 a barrel in electronic trading on the New York Mercantile Exchange, up 12 cents. The contract slid 0.3 percent to $97.88 on Aug. 1, the lowest close since Feb. 6. The volume of all futures traded was about 1.3 percent above the 100-day average. Prices are down 0.5 percent this year. Brent for September settlement rose 21 cents to $105.05 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.08 to WTI. It closed at $6.96 on Aug. 1.

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

Coming Up…U.S. Non-Farm 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

U.S. Job Growth May Be Slowing But Expected To Remain Solid In July

With NFP data due today, U.S. job growth is likely to have cooled slightly in July but should retain enough momentum to suggest the economy remains solid. Non-farm payrolls are expected to have increased by 233,000, a pull back from June’s 288,000 job gain and the monthly average of 272,000 jobs added in the second quarter. It would still, however, mark the sixth straight month that employment has expanded by more than 200,000 jobs, a stretch not seen since 1997. The unemployment rate likely held at a six year-low of 6.1 percent, but could surprise on the downside after surveys showed Americans becoming more upbeat about jobs. The economy grew at a 4.0 percent annual pace in the second quarter after shrinking at a 2.1 percent rate in the first three months of year. While restocking by businesses lifted the figure, growth is seen remaining sturdy for the rest of 2014. The Labor Department will release its employment report, which is closely watched by financial markets around the globe, at 12:30 GMT today. It is set to muster even more attention in the months ahead, as investors seek to gauge when the Federal Reserve is likely to raise benchmark interest rates from near zero, where they have been since December 2008. Fed officials on Wednesday acknowledged that labour market conditions were improving, but that significant slack remained, signaling patience on the rate front. Most economists look for the first increase in the second quarter of next year.The Labour Department will release its employment report, which is closely watched by financial markets around the globe, at 12:30 GMT today.

Dollar Pauses Near Highs Ahead Of Employment Data

Dollar bulls took a step back today ahead of a closely watched jobs report that has the potential to make or break a rally that saw the dollar post its best monthly performance in over a year. The dollar index was steady at 81.449 .DXY having risen 2.1 percent in July to a 10-1/2 month peak of 81.573. The dollar bought 102.78 yen after peaking at a four-month high of 103.15. The question now is whether this is the beginning of a continuing uptrend, one that has frustrated dollar bulls for much of this year or just another false start. The U.S. jobs report due today could provide a clue. With the Federal Reserve not providing any real hints as to when interest rates will rise, markets are looking more and more to economic data to make their own bets. The euro, meanwhile, traded at $1.3389 EUR steadying near a nine-month trough of $1.3366 plumbed earlier in the week. Working against the common currency was data that showed annual inflation in the euro zone fell in July to its lowest since the height of the financial crisis in 2009. This should keep the risk of deflation on policymakers’ radar, although it is unlikely to spur the European Central Bank into immediate policy action when it meets next week.

Market Volatility? Keep Calm And Carry On…

Equity markets have entered a period of increased volatility amid growing uncertainty over the timing of the Federal Reserve’s first rate hike but the message from analysts to retail investors is to keep calm and carry on. The short-term spikes in volatility we have been experiencing could lead to a couple of down days and although volatility is trending higher, it does not mean the equity market will go down. The CBOE Volatility Index, which shows the market’s expectation of 30-day volatility, spiked 27 percent to 16.95 on Thursday, its highest level since April 11, but below the historical average of 20. The move came as the Dow Jones Industrial Average sank 1.9 percent, erasing its gains for the year, and the S&P 500 dropped 2 percent. The U.S. economy expanded at an impressive 4 percent annual rate in the second quarter as activity picked up broadly after shrinking at a revised 2.1 percent pace in the first three months of the year. Furthermore, there are more signs of an improving labour market. With the economy getting stronger, this has fuelled concerns that the Fed may hike rates sooner rather than later.

That sums up today’s highlights! Keep tuned in for all the latest trading news via our social platform and don’t forget to watch closely for today’s NFP data!

We hope you have a profitable day on the markets.

Twitter Earnings: Investors Focusing On User Growth

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. CB Consumer Confidence @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Touches Highest in Six Weeks Ahead Of Fed Meeting

The U.S. dollar touched its strongest in 6 weeks against a basket of major currencies today as investors await a policy review by the Federal Reserve. The Fed is almost certain to cut its monthly bond-buying program by another $10 billion as it looks to wind up the scheme later in the year, but the focus for markets is on any clues to the timing of the first interest rate hike. The dollar index, which measures the greenback’s value against a basket of major currencies, held steady at 81.029 having risen to 81.084 late last week, its highest level since early February. The euro remained pinned near an eight-month trough of $1.3421 set on Friday. It last traded at $1.3435, little changed on the day. In a sign of the increasingly bearish market sentiment toward the euro, data from a U.S. financial watchdog late last week showed that speculators increased their net short position in the euro to 88,823 contracts in the week to July 22, the most bearish positioning against the single currency since late November 2012.

Fed To Raise Rates Sooner Rather Than Later?

According to some market-watchers, an improving economy could force the Fed to shift into rate hiking gear sooner than it had anticipated. While this is not a majority view, it is one that has been picking up momentum. Others see the Fed holding off on rate hikes until late next year, but then hiking much more aggressively than expected. The Fed meets for two days starting Tuesday and is widely expected to taper back its monthly bond buying program by another $10 billion to $25 billion. While the Fed is not likely to reveal any more about the timing of rate hikes or how it will unwind its more than $4 trillion balance, it is likely to be discussed at this week ‘s meeting. Traders will be watching for clues on Fed timing in its statement, particularly around the Fed’s dual mandates of helping employment and fighting inflation. Fed chair Janet Yellen last said unemployment “remains elevated,” and described inflation as running below its objective of 2 percent. Economists expect the Fed’s more hawkish members to ramp up their calls for ending easy policy, if economic data improves. Amid concerns that the Fed has stayed easy for too long, there are the opposite fears that it is unwinding easing before the economy has picked up real traction, and that higher rates could harm critical parts of the economy, like housing. The economy is still growing at a sluggish speed which could show up Wednesday when second-quarter GDP is released, and economists are forecasting growth of just 2.9 percent. At that pace, it does not show much spring back from the 2.9 percent contraction in the first quarter.

Fed watchers are looking as much to the data this week as the Fed statement for clues on its policy path. The July employment report on Friday is expected to show the economy added more than 200,000 jobs for a sixth month, and the unemployment rate is expected to drop to 6 percent. The Fed has stepped back from its target of 6 percent unemployment as a pivot point for considering rate hikes, but the market remains fixated on the number.

Twitter Earnings: Investors Focusing On User Growth

Twitter is due to report its second-quarter results after the market closes today. A surge in sales is expected but investors are more concerned with seeing signs of growth in the social-network’s user base. The social media giant is forecast to post a loss of a penny a share, compared with a loss of 12 cents a share in the year earlier period. Twitter’s revenue is expected to more than double to $283.4 million from $139.3 million in the year ago quarter. Twitter shares have fallen 8% in the last three months and are down 40% year-to-date, mainly due to investor worries that the company’s user base isn’t growing fast enough, but is reportedly planning to introduce new user metrics to show investors that it has a growing reach even though its base is expanding at a slower rate. It remains to be seen whether it can convince Wall Street that it can create value even without robust growth in monthly active users. Twitter inevitably faces comparisons to social media giant Facebook. Last quarter, Twitter reported that it had 255 million monthly active users, which pales in comparison to Facebook, which just reported 1.3 billion monthly users in the second quarter. Twitter is nonetheless considered a key player in the social networking market.

That sums up today’s highlights! As always, you can stay in touch via our Facebook, Twitter, Google+ & LinkedIn pages for all the latest trading updates. We hope you have a profitable day on the markets.

Investors Look To U.S. On Europe Concerns

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Main Trading Event Of The Day: U.S. Pending Home Sales @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Investors Look To U.S. On Europe Concerns

As the prospect of tougher sanctions against Russia impacts on confidence in Europe, investors will be looking to the United States and China to underpin the global economy. Wednesday’s U.S. GDP reading and jobs data on Friday will help markets assess the strength of the economy’s rebound and the speed of the Federal Reserve’s return to more conventional monetary policy. In Europe, the downing of a Malaysia Airlines airliner over the Ukraine has left countries such as Germany with little choice but to change their long-passive stance and impose tougher sanctions on Moscow. European Union ambassadors are expected to meet early this week to finalise sanctions that could include closing EU capital markets to state-owned Russian banks, placing an embargo on arms sales and restricting supply of energy technology. Globally, such sanctions would hurt Europe hardest, where Russia does most trade, compounding economic problems for Russia and throughout the region. The International Monetary Fund has already flagged the ‘chilling effect’ on investment in Russia of sanctions as it pared back its forecast for global economic growth last week. Confidence amongst businesses in Germany, which accounts for more than one quarter of all exports across the European Union, has dipped further since the plane crash. The crisis comes at a delicate moment for the 18 countries using the euro, where a fledgling recovery is losing pace. Investors will get a snapshot of the bloc’s inflation rate, which has sunk well below the European Central Bank’s target on Thursday.

Dollar Index Holds Close To Six Month Peak

The U.S. dollar hovered near six month highs against a basket of major currencies on Monday, holding onto solid gains made last week as investors turned bearish on the euro. This was ahead of key U.S. economic data later this week and a U.S. Federal Reserve meeting ending on Wednesday which market-watchers believe is likely to culminate in the same dovish message from Chair Janet Yellen.

The Commerce Department is expected to report on Wednesday that the economy grew at a 3.2 percent annual pace in the second quarter, after it shrank 2.9 percent in the previous quarter. On Friday, the Labor Department’s non-farm payrolls are expected to show a rise of 231,000 in July after they increased 288,000 in June. The jobless rate is expected to hold steady at 6.1 percent. Yellen said this month that the Fed could raise rates sooner than initially expected if labour markets continued to improve. Still, most economists expect the U.S. central bank to start raising interest rates in the second half of 2015. The dollar index was steady at 81.045, after it peaked at 81.084 on Friday, a high not seen since early February. So far this month, it has rallied around 1.6 percent, on track for its best monthly gain since January. Against its Japanese counterpart, the dollar was steady at 101.81 yen.

WTI Crude Declines In Advance Of U.S. Data

West Texas Intermediate crude fell for the fourth time in five days amid speculation that forthcoming economic data may signal a slowdown in growth in the U.S. Brent also dropped in London. Futures declined as much as 0.6 percent in New York. A preliminary index of U.S. service industries is forecast at 59.8 for July, the lowest level in three months. The Federal Reserve is scheduled to review monetary policy at a two-day meeting starting tomorrow. WTI for September delivery fell as much as 59 cents to $101.50 a barrel on the New York Mercantile Exchange to $101.59. The contract gained 2 cents to $102.09 on July 25. The volume of all futures traded was about 18 percent below the 100-day average. Prices are down 3.6 percent in July, the most in eight months. Brent for September settlement lost as much as 60 cents, or 0.5 percent, to $107.79 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.29 to WTI. The spread closed at $6.30 on July 25, the widest since July 7.

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

Google Regarded As Best Placed For Growth

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: German Buba Monthly Report @ 10.00 GMT

WHAT WE’RE WATCHING TODAY

Asia Stocks Mainly Higher On U.S. Earnings Optimism

Most Asian stock markets edged higher today as investors temporarily put aside geopolitical concerns to focus on the generally upbeat flow of U.S. corporate earnings ahead of a series of results due this week. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent, with modest increases for most markets across Asia. Spread betters predicted opening gains of 0.1 to 0.2 percent for the FTSE 100, DAX and CAC 40. Several U.S. companies report this week, ranging from Apple to McDonald’s Corp, Coca-Cola Co and Caterpillar Inc. Data showed that of 82 companies in the S&P 500 that had reported earnings through Friday morning, 68 percent beat Wall Street’s expectations. The Dow ended Friday up 0.7 percent, while the S&P 500 gained 1 percent and the Nasdaq 1.6 percent. For the week, the Dow rose 0.9 percent, S&P 500 gained 0.5 percent and the Nasdaq added 0.4 percent.

Dollar Gauge Trades Near Four-Week High In Advance of CPI Data

A gauge of the U.S. dollar was 0.3 percent from a four-week high before tomorrow’s CPI data which economists believe will show consumer-price inflation held at the fastest since October 2012, prompting the case for higher interest rates. The U.S. currency has risen versus all except one of its Group of 10 peers this month as traders boosted bets the Federal Reserve will increase its benchmark rate by the middle of 2015. Analysts say that a stronger CPI number would boost the U.S. dollar as we are seeing this data begin to edge up. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, was little changed at 1,008.44 after advancing to 1,011.12 on July 18, the highest level since June 20. The dollar fell 0.2 percent to $1.3547 per euro after strengthening 0.6 percent last week. The U.S. currency weakened 0.1 percent to 101.22 yen.

Google Regarded As Best Placed For Growth

Google is the best placed of any company to benefit from the shift to mobile, increased local advertising and wearables, according to analysts after the company posted its 18th straight quarter of 20 percent-plus revenue growth. At least seven brokerages raised their target price on the stock on Friday by as much as $75, to a high of $700. The company said on Thursday that second-quarter revenue rose 22 percent to $15.96 billion, beating the average analyst estimate of $15.61 billion. Growth was driven by the company’s core search business, YouTube and product-listing ads, which combined to drive three times the amount of mobile traffic for merchants compared with last year. Google also owns Android, the world’s most-used mobile software. Other online companies such as Facebook and Twitter are also revamping their advertising businesses to take advantage of the shift to mobile devices but Google has established an unusually deep competitive edge its business through scale, aggressive product innovation and substantial investment. Google’s capital investment budget has topped $17 billion over the past five years, and the company has spent about $13 billion on research, according to analysts. Google shares were trading at $604.33 before the bell, after closing at $580.82 on Thursday. Up to Thursday’s close, the stock had risen 26 percent in the past year.

That sums up today’s highlights! Remember you can find us on Facebook, Twitter, Google+ and LinkedIn with regular trading updates. We hope you have a profitable day on the markets.

Dollar Holds Gains In Advance Of Yellen Testimony

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 Fed Chair Yellen Testifies @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Holds Gains In Advance Of Yellen Testimony

The dollar remained higher against the yen following its biggest one-day advance in a week as Federal Reserve Chair Janet Yellen is due to testify before U.S. lawmakers. A gauge of the U.S. currency advanced surrounding bets that Yellen will provide additional clues as to when the central bank will raise interest rates for the first time since 2006. The yen was little changed as the Bank of Japan maintained record monetary stimulus.

Yellen is likely to emphasise the need to keep interest rates near zero for a considerable period even after a report this month showed unemployment fell to an almost six-year low. She may also say that while the jobless rate has fallen faster than the Fed expected, the presence of part-time and discouraged workers and long-term unemployed represents a reservoir of potential supply and accounts for wages not growing rapidly at all, which will probably justify the message that the Federal Reserve is in no rush to begin to raise interest rates. Regarding the inflation outlook, while unemployment fell to 6.1 percent last month and inflation has risen closer to the Fed’s 2 percent target, analysts believe there is still too much uncertainty for her to change the tone materially.

The dollar rose 0.1 percent to 101.59 yen at 1:52 p.m. after strengthening 0.2 percent yesterday, the most since July 3. The U.S. currency was unchanged at $1.3619 per euro. The yen traded at 138.37 per euro from 138.28 yesterday. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 of its major counterparts, climbed less than 0.1 percent to 1,007.13.

Gold Retains Sharp Losses Trading Close To 4-Week Low

Gold was trading near its lowest level in almost four weeks on Tuesday, as sharp overnight losses triggered by profit-taking and stronger global equities dented the metal’s safe-haven appeal. Spot gold was little changed at $1,306.75 an ounce after sliding more than 2 percent on Monday - its biggest daily drop since December. Gold touched a low of $1,302.90 in the previous session, its weakest since June 19. Gold had climbed to a near four-month high of $1,345 last week as financial troubles at Portugal’s top bank rekindled fears of another euro zone banking crisis, although those fears have now subsided. Investors will be monitoring Federal Reserve Chair Janet Yellen’s testimony in a U.S. Senate committee later today for signs of when the U.S. central bank would begin increasing interest rates. They will also be watching developments in the Middle East and Ukraine for any escalation in violence that would create fresh safe-haven demand for gold amid reports that Moscow is once more building up its troops on its joint Ukraine border.

European Shares Set For Pullback; Yellen In Focus

European shares are on track for a slightly lower open today, pulling back slightly from yesterday’s gains as investors remain cautious before earnings season and Federal Reserve Chair Janet Yellen’s testimony today. The FTSE is called down 5 points at 6,741 while the German Dax is seen lower by 8 points at 9,775. Stocks in Europe saw healthy gains in the previous session as earnings from U.S. bank Citigroup and merger activity surrounding pharma firm Shire sent bourses higher. However, investors look set to hold off before any more buying with a number of data due on Tuesday. June inflation data is out for the U.K., while Germany also receives its widely watched ZEW economic index. Central bank policy makers are also set for meetings today. In addition to Yellen’s two-day testimony, Bank of England Governor Mark Carney is due in front of U.K. lawmakers for a financial stability discussion. Both appearances will be an opportunity for investors to gauge the future direction of monetary policy in each country with both expected to start raising benchmark interest rates in the not-too-distant future. Elsewhere, U.K. Prime Minister David Cameron is expected to announce wide-ranging changes to the lineup of its decision-making body called the Cabinet. Foreign Secretary William Hague is currently the biggest name set to be given a new role in the reshuffle.

That sums up today’s highlights! It’s a busy day on the financial markets so remember to keep posted via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets.

ECB Interest Rates Too Low For Germany; Draghi Speaks

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: EUR ECB President Draghi Speaks @ 17.00 GMT

WHAT WE’RE WATCHING TODAY

ECB Interest Rates Too Low For Germany; Draghi Speaks

Bundesbank chief Jens Weidmann is reported to have said that the European Central Bank should tighten policy as soon as it can and that its interest rates are too low for Germany, as he referred to tensions in the united front the bank has presented since its major policy shift in June. Weidmann pointed out that many savers in Germany were unhappy with low interest rates but said these were aimed at supporting investment and consumption. The ECB cut interest rates to record lows last month as part of a package of measures to jump-start a sluggish euro zone economy, where inflation is running far below the central bank’s target. The German economy is nonetheless still outperforming other countries in the bloc. Weidmann added that if the Bundesbank were autonomous, Germany would benefit from a tighter rather than a looser monetary policy and warned about the risks of leaving policy loose for too long.

At the monthly news conference, Draghi said risks to the euro zone economic recovery remained primarily negative and left the door open to a possible asset-buying program by the ECB, which Weidmann has cautioned against in all but exceptional circumstances. Weidmann put the onus on governments to act, urging them to shape up their economies and consolidate their budgets as the euro zone recovers from the debt crisis that took it to the brink of break-up. The euro was steady at $1.3604, having wobbled on either side of $1.3600 in the past week. European Central Bank President Mario Draghi is scheduled to give an introductory statement at the quarterly hearing before the Committee on Economic and Monetary Affairs of the European Parliament later in the day.

ECB President Draghi speaks today @ 17.00 GMT.

U.S. Dollar Firms In Subdued Trade; Market Awaits Yellen

The dollar edged up slightly against the yen today as investors awaited events this week including Federal Reserve Chair Janet Yellen’s congressional testimony for cues on the outlook for U.S. monetary policy. Investors also awaited a policy review by the Bank of Japan on Tuesday, though the central bank was widely expected to maintain its policy and its broader economic outlook. The BOJ next week may trim its economic growth forecast for the current year, reflecting soft exports and a bigger-than-expected slump in household spending after a sales tax hike in April, though the change would not tip any policy changes to come. The dollar index edged slightly higher to 80.217, nudging away from a two-month low of 79.740 on July 1. Speculators increased their bullish bets on the U.S. dollar in the latest week, with the value of the dollar’s net long position rising to $10.34 billion in the week through July 8. The total value of positions rose from $8.65 billion the previous week when it was the smallest net long on the dollar in five weeks.

Stock Watch: Guardians Could Open Galaxy Of Riches For Disney

When Disney bought Marvel for $4.2 billion in 2009, its stock sank following news of the acquisition. Analysts warned Disney’s superheroes would have to fight extra hard to win box office dollars. However, under the guidance of Marvel Studios’ President Kevin Feige, the team has been taking more risks and a more character-driven approach to storytelling. So far, it’s paying off. At the time, Disney also inked a landmark deal with Netflix to stream four new and original Marvel series on the platform, starting from 2016. So far, this year has been strong for the Disney/Marvel duo with its latest release, Captain America, dominating at the box office on its opening weekend.

That sums up today’s highlights! Remember to stay in touch for all the latest trading updates of the day - find us on Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

Gold Set For Sixth Weekly Gain On Safe-Haven Bids

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: CAD Employment Change @ 12:30 GMT

WHAT WE’RE WATCHING TODAY

Gold Set For Sixth Weekly Gain On Safe-Haven Bids

Gold added to big overnight gains to trade near its highest in almost four months today and was on track for a sixth straight weekly gain stoking safe-haven demand for bullion. Spot gold nudged up 0.3 percent to $1,338.20 an ounce after closing up 0.7 percent yesterday when it rose to a peak of $1,345, the highest since March 19. Gold has gained more than 1 percent this week so a sixth weekly gain would be gold’s longest winning streak since February/March when it had a similar run. Gold is getting a boost along with other safe-havens such as the Japanese yen and bonds, as European and U.S. stock markets fell on Thursday on investor fears over financial troubles at the family-owned holding companies behind Banco Espirito Santo. Geopolitical tensions in the Middle East and Ukraine also continued to support gold, seen as an alternative investment to riskier assets such as equities. In Asia, India surprised bullion markets by keeping the import duty on gold and silver unchanged at 10 percent in its fiscal budget, a move likely to limit overseas purchases by the second-biggest bullion consumer. Physical demand in other Asian countries was also weak due the recent jump in prices. In China, local prices have been on par with the global benchmark or at a discount, underscoring sluggish demand.

Dollar Heads for Worst Week Versus Yen Since April

The dollar headed for its biggest weekly decline versus the yen since April in advance of Federal Reserve Chair Janet Yellen testifying to lawmakers next week as traders cut bets the central bank will raise interest rates. A gauge of the dollar was set for its fourth weekly loss in five weeks as minutes of the Fed’s June meeting failed to provide additional revelations on the pace of rate increases and record-low volatility encouraged demand for higher-yielding assets. The Fed appears to be on the cautionary side despite data improving. With the current environment, where volatility remains low, the trend of carry trades remains in vogue and to a certain extent, the dollar is underperforming according to analysts. The dollar was little changed at 101.28 yen in Tokyo, having declined 0.8 percent this week, the most since the period ended April 11. The U.S. currency traded at $1.3601 per euro from $1.3609 yesterday. The yen appreciated 0.1 percent to 137.75 per euro after advancing to 137.50 yesterday, the strongest since Feb. 6.

Will BOJ Disappoint Again At Next Meeting?

Investors poured funds into Japan equities last year on the expectation of further easing measures from the central bank, but it appears that the Bank of Japan will disappoint again at its meeting next week. In April of 2013, the BOJ launched a massive quantitative easing program aimed at kick-starting Japan’s long-moribund economy. Investors pushed the Nikkei up more than 50 percent, partly on hopes that the central bank would deliver. So far, they have come away disappointed. Analysts say the central bank will likely let markets down again when it wraps up its policy on July 15. In addition to damping enthusiasm for the stock market, the delay in providing further stimulus may be weighing on efforts to revive the economy. Machinery orders data for May show core orders fell 19.5 percent from April, the worst monthly drop on record, disappointing expectations for an increase and wiping out hopes for a capital spending pickup to help drive economic growth. The BOJ believes it’s on course to boost inflation to its 2 percent target within the next two fiscal years.

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

Dollar Rallies On U.S. Jobs Growth

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 Rallies On U.S. Jobs Growth

Job growth exceeded expectations following yesterday’s data as the unemployment rate fell to the lowest level for six years, creating a foundation for a stronger U.S. economic expansion. Payrolls rose by 288,000 workers following a 224,000 gain the prior month. The 1.39 million increase in employment over the past six months is the biggest over a similar period since early 2006.

Consequently, the dollar strengthened the most in a month, boosting speculation the Federal Reserve may bring forward interest-rate increases. The U.S. currency rose to a two-week high versus the yen while Australia’s dollar tumbled as the Reserve Bank governor said it was “overvalued.” The euro fell after European Central Bank President Mario Draghi reiterated that he’ll keep rates low. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, rose 0.2 percent to 1,007.05. It gained as much as 0.4 percent, the biggest intraday jump since June 2.The greenback strengthened 0.4 percent to 102.19 yen and touched 102.27, the strongest since June 18. Europe’s 18-nation shared currency declined 0.4 percent to $1.3610 and was little changed at 139.09 yen.

Dow Finishes Above 17,000 On Strong Payrolls Report

U.S. stocks rose on Thursday, lifting the Dow industrials above 17,000, after data showing the economy created a higher than forecast 288,000 jobs in June and the unemployment rate fell. After closing at records on Wednesday, both the Dow and S&P 500 continued their advance into uncharted terrain. After a 98-point jump, the Dow Jones Industrial Average ended up 92.02 points, or 0.5 percent, to 17,068.26. The S&P 500 added 10.82 points, or 0.6 percent, to 1,985.44, with industrials leading sector gains among its 10 major industry groups. Ending at a 14-year high, the Nasdaq advanced 28.19 points, or 0.6 percent, to 4,485.93.The Chicago Board Options Exchange Volatility Index, a measure of investor uncertainty, fell 4.6 percent to 10.32. For every three stocks falling, more than four gained on the New York Stock Exchange, where nearly 537 million shares. Composite volume approached 2 billion.

Euro Zone Retail Sales Stall As Households Feel The Pinch

Retail sales across the 18 countries sharing the euro were flat in May, missing expectations as consumers continue to curb their spending amid high unemployment. Eurostat released the data as members of the ECB’s governing council gathered in Frankfurt where no new stimulus measures are expected after the bank cut interest rates to record lows last month. According to Eurostat, the month-on-month volume of sales was stable in May compared to a 0.2 percent decrease in retail sales in April. Flat retail sales in May, coupled with a modest dip in euro zone consumer confidence in June from May’s 79-month high, reinforces suspicion that any improvement in euro zone consumer spending is more likely to be gradual than pronounced over the coming months. Euro zone unemployment was stable at 11.6 percent for the second consecutive month in May, down slightly from the 12 percent seen a year ago.

That sums up today’s highlights! Have a great weekend and stay in touch via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest trading news.

We hope you have a profitable day on the markets.