Tag Archives: Yen

Euro Inches Away From 2 1/2-Month Lows

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

Euro Inches Away From 2 1/2-Month Lows

The euro staged a rebound today from a 2-1/2-month trough rising 0.1 percent to $1.3718. It had fallen as far as $1.3648 on Thursday, its lowest level since late February, in response to data showing the Eurozone grew much less than expected at the start of the year. The euro was down about 0.3 percent for the week at its current levels, putting it on track for its second straight weekly decline. The euro has fallen roughly 2 percent since May 8 when European Central Bank (ECB) President Mario Draghi persuaded markets that the bank was ready to inject fresh stimulus next month. The disappointing growth figures on Thursday only served to fuel those dovish expectations. The euro eased 0.1 percent to about 139.17 yen, not far from a 2-1/2-month low near 138.97 yen set on Thursday.

Stock Market Slumps As Economy Stuck In Low Growth

The big debate about the U.S. economy as the country emerges from the winter is whether the growth it has been experiencing is modest or accelerating. Recent figures show that recovery is “modest” which has big implications for stock prices. April Industrial Production, down 0.6 percent, was a big disappointment since it was only expected to be down 0.2 percent. That joins April Retail Sales, released on Tuesday, which were also disappointing. Bond yields are dropping in the U.S. and most of Europe, but importantly bond yields are higher in the periphery in Europe…in Italy, in Greece and in Spain. The final number we are looking for is April Housing Starts, out today. Starts are expected at 984,000, the best since December, but some are expecting more than 1.0 million Permits. The numbers so far have not been optimistic for housing. The NAHB Housing Market Index, an indicator of sentiment among home builders was also a disappointment, at 45, below expectations of 48. If we get disappointing Starts and Permits, could it be the nail in the coffin for a robust housing recovery this spring?

Gold Settles Lower After Jump In Consumer Prices

Gold prices on Thursday gave back some of the gains they notched a day earlier after a jump in consumer prices in the U.S. and a drop in jobless claims pointed to an economy on the mend, dulling the precious metal’s safe-haven appeal. Gold for June delivery fell $12.30, or 0.9%, to settle at $1,293.60 an ounce. This comes a day after the precious metal closed up $11.10, or 0.9%, at $1,305.90 an ounce. Gold reacted on the positive U.S. economic news of a lower reading of initial jobless claims which were below 300,000 - a positive sign for labour markets going forward. Consumer prices rose by 0.3% in April to mark the biggest gain since June, with core prices up 0.2%, while jobless claims fell to the lowest level since 2007. Analysts say jobless claims and CPI data have triggered a shift in sentiment for markets. Traders are punishing gold on the back of this data as it shows an improvement in the economic growth.

That sums up today’s highlights! Don’t forget you can stay in touch via our social media channels for all your up-to-the-the minute trading news. We hope you have a profitable day on the markets.

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

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

Main Trading Event Of The Day: U.S. Core 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.

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.

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.

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.

Currencies: Dollar, Euro, Aussie Latest

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 Crude Oil Inventories @ 14.30 GMT

WHAT WE’RE WATCHING TODAY

U.S. Dollar Strength Wanes, Aussie Slides, Euro & Other Major Currencies Subdued

Investors trimmed U.S. dollar positions on Tuesday after a two-week run higher, seemingly unmoved by a U.S. March existing home sales report that beat expectations but still showed a modest decline to a one and a half year low. Trading ranges remained narrow as Europe returned from the Easter holidays and faced uncertainty over whether European Central Bank policy will move toward more monetary stimulus. The euro gave up some of its modest gains, but remained positive against the greenback and yen. European Central Bank President Mario Draghi recently stated that the euro’s strength and very weak inflation in the euro zone, due partly to the strong exchange rate, are possible triggers for the central bank to ease monetary policy. The euro slipped to a two-week low before rebounding to trade slightly higher around $1.38. Investors await today’s euro zone ‘flash’ PMI surveys while the German IFO institute’s monthly reading of business sentiment in Europe’s largest economy is due Thursday. The Australian dollar, meanwhile, slipped today after data showed that Australian consumer prices rose less than expected in the first quarter, lessening the risk of a rise in domestic interest rates this year. The currency tumbled 0.9 percent to $0.9286, pulling away from a five-month high of $0.9461 set earlier in April. Other major currencies were subdued, with the euro edging up 0.1 percent to around $1.381, while the dollar eased 0.1 percent to 102.55 yen.

Gold Above 10-Week Low as Investors Look To Ukraine & U.S. Recovery

Gold traded above a 10-week low as improvements in the U.S. economy were weighed against tension in Ukraine and signs of higher demand in China. Assets in the largest exchange-traded product held at the lowest in 12 weeks. Bullion for immediate delivery was at $1,284.84 an ounce from $1,283.81 yesterday, when prices fell for a sixth day to $1,277.69, the lowest level since Feb. 11. While gold’s 12-year bull-run ended in 2013 on expectations the Federal Reserve would reduce stimulus as the world’s largest economy recovers, prices have rallied 6.9 percent this year as unrest in Ukraine spurred haven demand. In China, the biggest consumer, volumes for the benchmark spot bullion contract in Shanghai climbed for a second day to a five-week high yesterday.

Google’s Stellar Growth…

More technological developments for Google as the company announces that together with NASA, it is developing smart robots designed to fly around the International Space Station which will eventually take over some menial tasks from astronauts with the aid of custom-built smartphones. NASA is planning to attach smartphones to the flying robots to give them spatial awareness that would enable them to travel throughout the space station. The Android-based phones will track the 3D motion of the robotic spheres while mapping their surroundings in an effort to give mobile devices human-scale sense of space and motion. The new phones are scheduled for launch into space on June 10. Google says the technology may also have applications on earth, such as in gaming and navigation assistance for the visually-impaired. Traders may wish to keep an eye on Google stock prices.

That sums up today’s highlights! Keep posted with our regular Facebook, Google+, Twitter and LinkedIn updates for traders. We hope you have a successful day on the markets!

Just A Minute!

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

Main Trading Events Of The Day: USD ADP Non-Farm Employment Change @ 13.15 & USD ISM Non-Manufacturing PMI @ 15.00 GMT

WHAT WE’RE WATCHING TODAY

U.S. Jobs Data On The Way…

With the focus having been on the situation in the Ukraine, the attention is back on U.S. economic reports today. The ADP report gives a hint of what the jobs report might look like on Friday. U.S. employers hired 150,000 workers in February, after adding 113,000 in January, according to a Bloomberg News survey. A report from ADP Research Institute today will show companies boosted payrolls by 155,000 last month after an increase of 175,000 in January. Employment gains for December and January were both less than economists forecast, depressed by winter storms. Weak data is explicable on account of the weather seems to be the mantra right now and the consensus is that it will take a couple of bad reports to disillusion investors at this point. In addition, the ADP report has been a wildcard in recent months in that it has been an inaccurate gauge of data from the U.S. Bureau of Labor Statistics.

Federal Reserve Chair Janet Yellen reiterated on Feb. 27 that the central bank is likely to keep curtailing its stimulus. The central bank said on Dec. 18 it would trim its monthly bond purchases to $75 billion from $85 billion, before cutting by another $10 billion in January. The purchases are designed to hold down long-term borrowing costs and spur economic growth.

Asian Shares Jump And Yen Recovers As Ukraine Tension Eases

Asian stocks jumped and the yen recovered after a sharp tumble on Wednesday, after Putin said that force was not needed for now. The markets took Putin’s words positively and with wariness over the Ukraine easing for the time being at least, the focus has shifted back to fundamentals, notably Thursday’s European Central Bank monetary policy meeting and Friday’s U.S. nonfarm payrolls report. However, despite the widespread relief, market watchers warned that the crisis was not over, warning of further jolts for the financial markets ahead. The easing of geopolitical tensions saw a reversal of yesterday’s movements in most asset markets. However, tensions remain high and suggest some further volatility in financial markets while the situation in Ukraine remains uncertain.

The Australian dollar, already on a bullish footing after cooling of tensions in Ukraine revived risk appetite, received a further boost after data showed Australia’s economic growth had beaten forecasts, reinforcing expectations of a steady interest rate outlook. The AUD was at $0.8947 from a low near 89 U.S. cents. Australia’s major trading partner China has said it will maintain its economic growth target for 2014 at around 7.5 percent as expected and push forward convertibility of the yuan. Analysts said the statement was an indication that China would widen the yuan’s trading band going forward as expected, further signaling a possible end to the currency’s one-way appreciation.

The yen, which rallied on its safe-haven appeal this week as tensions mounted in Ukraine, remained on the back foot after a heavy reversal on Tuesday. The dollar was buying 102.14 yen, moving away from a one-month low of 101.20 hit on Monday, while the euro bought 140.29 yen, after touching a two-week low of 138.75 yen on Thursday.

Tech News: PC Market Fell Hardest In 2013, Analyst Firm Says

The traditional PC industry saw its sharpest decline ever in 2013, and the sales drought is expected to continue through 2018 according to analysts, IDC. PC shipments fell by 9.8 percent overall last year, the sharpest drop on record. While the fourth quarter actually performed better than expected, IDC said that sales dried up in emerging markets, dipping 11.3 percent - evidence that tablets and phones are cutting into sales all across the world. 315.1 million PCs shipped in 2013, and 295.9 million are expected to be sold in 2014, a 6 percent dip. By 2018, the PC market should drop to annual sales of 291.7 million units.

Emerging markets used to be a core driver of the PC market, as rising penetration among large populations boosted overall growth but right now, emerging regions are finding themselves more affected by a weak economic environment as well as significant shifts in technology buying priorities. In making its projections, IDC said it factored in a number of variables, including concerns about the impact of slower economic growth and continued pressure from tablets and smartphones.

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

Just A Minute!

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

Main Trading Events Of The Day: Several today including EUR CPI Flash Estimate y/y @ 10.00, USD Prelim GDP q/q @13.30 & GBP BOE Gov Carney Speaks @15.30 GMT

WHAT WE’RE WATCHING TODAY

Big Cuts Anticipated In U.S. Fourth-Quarter GDP Growth

The U.S. government looks set to slash its estimate of fourth-quarter growth as exports and restocking by businesses were less robust than previously thought. Gross domestic product growth will probably be lowered to a 2.5 percent annual rate, down from the 3.2 percent pace reported last month. If economists’ forecasts are correct, today’s revision will leave GDP just above the economy’s potential growth trend of between a 2 percent and 2.3 percent pace. Trade is expected to account for a large chunk of the revision. A report earlier this month showed exports fell in December, leading to a bigger trade deficit in the fourth quarter than the government had assumed. Economists expect trade’s contribution will be cut down to about 1.0 percentage point. Inventories, previously reported to have risen by $127.2 billion in the fourth quarter, are also likely to be revised down. The reported increase in the stocks of unsold goods in the fourth quarter was the largest in nearly 16 years but economists expect the contribution to growth from inventories, which the government put at 0.42 percentage point a month ago, could be revised to just about two-tenths of a percentage point.

Downward revisions are also expected to consumer spending after data showed weak retail sales in November and December. Consumer spending had been estimated expanding at a 3.3 percent rate in the fourth quarter, the fastest in three years. This could be lowered to a pace of about 3 percent. As a result, final domestic demand is likely to be revised weaker than the 1.4 percent rate previously reported. Government spending is likely to be revised downward, but the impact will probably be offset by upward revisions to investment in residential construction, nonresidential structures and business spending on equipment.

Currency News

The dollar fell against Japanese yen on Friday, after the release of a set of stronger than expected economic data. The dollar USD/JPY slid to ¥101.81 from ¥102.17 late Thursday. Japanese government data released Friday morning showed the jobless rate held steady at 3.7%, while factory output in January climbed 4% from the previous month. Meanwhile, the core consumer price index rose 1.3% last month from a year earlier, beating the 1.2% projections and marking the eighth straight month of gains for the core CPI. This indicates that the economy may be close to winning its decades-long fight with deflation. However, compared to December, the core CPI slipped 0.3%, sparking some concerns that momentum is easing.

The GBP meanwhile, firmed against the dollar after Federal Reserve Chair Janet Yellen told U.S. legislators monetary authorities were concerned with soft economic indicators though monetary policy remains on course for now. Disappointing weekly jobless claims numbers also softened the dollar. In U.S. trading on Thursday, GBP/USD was trading at 1.6680, up 0.06%, up from a session low of 1.6617 and off a high of 1.6698. More GBP news; BOE Governor Mark Carney speaks @ 15:30 GMT at a financial symposium in Frankfurt. Remarks which are more hawkish than expected will be bullish for the pound.

Will Google’s Project Ara Go On Sale Next Year?

Google’s Project Ara modular smartphones could arrive early next year, according to reports. A team within the company, which is developing the project to make smartphones composed of small, swappable pieces of hardware reportedly plans to finish a functioning prototype within weeks and begin preparation on a version for consumer sales beginning in the first quarter of 2015.

The central idea of Project Ara is to help smartphone users take handset customisation beyond ringtones, wallpaper, and body colours to the devices’ very form and function. An endoskeleton, or structural frame, would hold the smartphone modules of the owner’s choice. Google is pushing for the endoskeleton to cost $50. It will come only with Wi-Fi and no cellular connection. Users could then build up the phone how they like with various modules, like a camera, high-speed processor, speakers, and more. Developers will also be encouraged to make modules for its ambitious new phones. It will be interesting to watch developments unfold over the coming months while keeping an eye on price of Google stock.

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

Why is Japan Upping Stimulus?

Last Thursday the Japanese Cabinet approved an 18.6 trln yen ($182 bln) economic stimulus in an attempt to boost economic growth which has fallen behind the 1.9 percent mark set for the year. Prime Minister Shinzo Abe seems confident the boost will put businesses at ease and increase GDP even, but his view may be an overly optimistic one. Businesses may in fact lack the actual confidence to follow PM Abe’s directive as they are left wondering “what is different this time?” Will the added stimulus bring the growth Abe is hoping for? Read more here…

Payroll Data To Trim the Dollar Further?

U.S. Payrolls data come out later today and everyone’s wondering whether the Federal Reserve will move into tapering even as early as this month. But the speculation is hurting the dollar which is set to drop for a fourth week in a row.

With the European Central Bank deciding not to move on an easing policy, however, the euro has advanced against all its major peers. In Japan, the head of an advisory panel commended on the necessity of immediate cutbacks from bond holdings by the Government Pension Investment, which caused the yen to trim off its weekly gain on the dollar for the first time.

The U.S. economy is expected to have added 180,000 new jobs last month, and if the ADP NFP data hold, the number might turn out even higher. Should the data however come in significantly lower, investors are expecting a huge sell off on the dollar.

The next meeting of the Federal Open Market Committee is scheduled for 17th-18th of December. Scrutinising the minutes of their previous meeting, which were published on 20th November, investors noted that policy makers would await further positive data to “warrant trimming the pace of purchases in coming months.”

Japanese Index Drops As Investors Try to Gauge the Fed’s Next Move

The yen rose against the dollar yesterday as investors continued their hunt for clues on when policy makers may taper the economic stimulus sending Japan’s Topix index spiralling down to its biggest two-day drop in nearly four months.

The carmaker Nissan Motor Co., which gets over a third of its revenue from North America, fell 3.5 percent. A gauge that tracks warehousing and harbour transportation shares experienced a losses among the 33 Topix industry groups, leading Yusen Logistics Co. into a 4.8 percent loss. The package deliverer Yamato Holdings Co. experienced the greatest decline on the Nikkei 225 Stock Average.

The Topic lost 0.9 percent, closing its two-day fall to 2.6 percent, the most since 8th August, while the Nikkei 225 dropped 1.5 percent. The Japanese currency, however, rose 0.3 percent, gaining for a third consecutive day. Investors are now eagerly looking forward to the release of the official NFP report tomorrow as the ADP NFP yesterday showed the most new job on the American market in a year. Other reports, such as the ISM Non-Manufacturing PMI, however, came in at lower levels than forecast.

Although Japanese shares are seen dropping just as fast as they rose, investors are not moving in on the pockets created by the market appearing unwilling to risk that the Fed may actually start tapering soon. The Topix (TPX) had reached a six-month high just on 3rd December before it started dropping again. The measure climbed 43 percent this year, recording the greatest advance among the major developed markets. Today, the index traded at 1.24 times its book value, in comparison with 2.59 for the Standard and Poor’s 500 Index and 1.76 for the Stoxx Europe 600 Index yesterday.

What’s Next For The Euro?

What’s next for the Euro? This is the big question as the currency rose to a five-year high against the Yen last Friday. But is this a positive indication towards the recovery of the Eurozone? The Eurozone may have technically emerged from the recession but it is still combating a protracted economic decline. Whereas the overall signs look promising, there may still be a few ups and downs in store. Will 2014 be a make-it or break it year? Read more…

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