Thursday, June 9, 2016

Forex - Yen a bit stronger in ASia ahead of producer prices data

Forex - Yen a bit stronger in ASia ahead of producer prices data.
Yen a tad strongerYen a tad stronger

Investing.com - The yen was a tad stronger in early Asia on Friday ahead of producer prices data.

changed hands at 107.04, down 0.05%, while traded at 0.7434, up 0.05%.

In Japan, PPI data for May is due with a 4.2% drop seen and a 0.1% gain expected .

The , which measures the greenback's strength against a trade-weighted basket of six major currencies, was last quoted at 94.10.

Overnight, the dollar pushed higher against the other major currencies on Thursday, pulling further away from a five-week trough after the release of upbeat U.S. jobless claims data boosted optimism over the strength of the economy.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 4 decreased by 4,000 to 264,000 from the previous week's total of 268,000, which was revised up from the initial read of 267,000.

Analysts had expected jobless claims to rise by 3,000 to 270,000 last week.

The greenback weakened earlier in the week, as markets pushed back expectations on the timing of the next rate hike by the U.S. central bank after Friday's dismal employment report for May, which showed the slowest rate of jobs growth since September 2010.

A speech by Fed Chair Janet Yellen on Monday indicated that interest rates won't rise until uncertainty over the economic outlook is resolved.

The Fed raised interest rates for the first time in almost a decade in December.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source

FOREX-Dollar enjoys reprieve as euro, sterling feel the heat

FOREX-Dollar enjoys reprieve as euro, sterling feel the heat.

SYDNEY The dollar clung to modest gains early on Friday, having bounced off one-month lows as the euro took a heavy spill while sterling stayed under a cloud on jitters over the upcoming Brexit vote.

The dollar index stood at 94.130 .DXY, pulling away from a trough near 93.400. Driving the index's rise was a bearish turn in the euro, which slid to $1.1316 EUR=[1] from a one-month high of $1.1416.

A Reuters report on Commerzbank (CBKG.DE) looking to put billions of euros in vaults rather than pay a penalty charge for parking them with the European Central Bank appeared to have unsettled an already nervous market.

"It seems the news made waves early in the European session Thursday, our London team reporting that this was credited for the euro being sold across the board," analysts at National Australia Bank wrote in a note to clients.

The common currency also plumbed a fresh three-year low of 120.315 yen EURJPY=R but has since drifted up to 121.075.

The market continued to give sterling a wide berth, pushing the currency to $1.4464 GBP=D4[2], well off this week's peak of $1.4664.

The pound was back near the bottom of a $1.4350-$1.4750 range, just two weeks out before Britons vote in the referendum on EU membership.

BlackRock, the world's largest asset manager, said financial markets may be under pricing the risk of Britain leaving the EU.

With the euro zone and the UK in focus overnight, the dollar enjoyed a small reprieve. Dollar bulls had been hit hard since last Friday's disappointing payrolls data convinced investors that the Federal Reserve will not hike rates at next week's policy review.

A fresh batch of U.S. data on Thursday was more encouraging with a surge in wholesale inventories in April prompting economists to lift their second-quarter economic growth estimates.

A stand out performer was the New Zealand dollar, which staged a broad rally after the Reserve Bank of New Zealand on Thursday skipped a chance to cut interest rates and appeared reluctant to cut again.

The kiwi powered to a one-year high just shy of 71.5 U.S. cents NZD=D4[3] and was last at $0.7116.

There is little on offer for Friday, but China's industrial production and retail sales due on Monday will set the tone for next week.

(Reporting by Ian Chua; Editing by Eric Meijer)

References

  1. ^ EUR= (uk.reuters.com)
  2. ^ GBP=D4 (uk.reuters.com)
  3. ^ NZD=D4 (uk.reuters.com)


Source

Forex - EUR/USD, GBP/USD Flows: The view from the train

Forex - EUR/USD, GBP/USD Flows: The view from the train.

Yesterday was as dire a day's trading as I've seen in a while. Even the recently manic GBP was under restraint and volatility holders must have endured an expensive 24 hours. In the hope that with only two weeks to the referendum GBP/USD resumes headless chicken mode suggests once again that looking to fade a decent move in either direction, 1.4350 or 1.4650, could be the way to go. EUR/JPY couldn't make it to the 122.20 level even with Wall Street pushing towards all-time highs and selling at 122.00 will still prove tempting if seen again as this one looks as if the only factor holding it up is the proximity to multi year lows.

For all the recent lethargy in the market, we might have some decent action just round the corner. Gold has suddenly put a spurt on and CHF has strengthened even into apparent SNB interest. This tells me that a decent dose of inflation is on its way. It would in fact be remarkable, with the oil price higher on a daily basis if it didn't feed through to inflation. Those of us who can remember 3 Base rate hikes in a day will know how hard it is to get the inflation genie back in the bottle once it is out! Central Bankers have been telling us how good inflation is for economies, we might find out quite shortly how good a lot of it is - not very! IJ.



Source

FOREX-Yen rises on safe-haven bids, dollar recovers

FOREX-Yen rises on safe-haven bids, dollar recovers.

* Stock, commodity losses spur safe-haven bids for yen

* Yen hits three-year high vs euro, five-week high vs dollar

* Surprise upbeat U.S. data buttress dollar index

* NZ dollar jumps 1.5 percent after RBNZ holds rates steady (Updates market action, adds quote)

By Richard Leong

NEW YORK, June 9 A broad decline in commodity and stock prices in major world markets lifted the yen on Thursday as investors piled money into low-risk assets due to jitters about prolonged low inflation and negative interest rates.

The yen, which investors prefer in times of market uncertainty, reached a three-year peak against the euro and a five-week high versus the U.S. dollar.

"It's generally a cautious mood today. You have stocks lower and yields lower," said Eric Viloria, currency strategist at Wells Fargo Securities in New York.

German 10-year Bund yield and British 10-year Gilt yields reached record lows at 0.024 percent and 1.222 percent respectively on Thursday, as falling yields put pressure on bank shares and the broader market globally.

Oil prices retreated from their highest levels of the year but held above $50 a barrel.

The yen gained 1 percent against the euro at 120.88 yen after hitting 120.29 yen, which was last seen in April 2013. It was last up 0.2 percent versus the dollar at 106.76 yen after touching 106.24 yen, its strongest since May 4.

The dollar rebounded against other currencies, except for the yen, supported by an unexpected drop in domestic jobless claims and a stronger-than-expected rise in wholesale sales in April, soothing some worries about U.S. economic growth decelerating in the second quarter.

The dollar index, which tracks the greenback against the six currencies, rebounded from five-week lows set on Wednesday. It was last up 0.4 percent at 93.981.

Analysts expected the dollar would hold in a narrow range ahead of the Federal Reserve's two-day meeting next week. They said the Fed would refrain from a rate increase given the possible market turmoil if Britain votes on June 23 to leave the European Union, also known as Brexit.

"The Fed is not going to do anything next week. They are going to wait and collect more data after the Brexit vote," said Peter Ng, senior currency trader with Silicon Valley Bank in Santa Clara, California.

The sterling was down 0.2 percent at $1.4470, while the euro was 0.4 percent lower against the pound at 78.26 pence .

Overnight, the Reserve Bank of New Zealand surprised some investors by leaving key rates unchanged at 2.25 percent, citing concerns over rising house prices and emerging inflationary pressures.

RBNZ's move propelled the New Zealand dollar to its strongest versus its U.S. counterpart in almost a year at $0.7148. The Kiwi was last up 1.6 percent at $0.7132. (Additional reporting by Patrick Graham in London; editing by James Dalgleish and Andrew Hay)



Source

Forex slip to $21.267bn

Forex slip to $21.267bn.
Home[1]» Pakistan[2] » Banking & Finance[3]

imageKARACHI: The total liquid foreign exchange reserves of the country stand at dollars 21.267 billion, said State Bank of Pakistan.

According to SBP's weekly statement here on Thursday, the foreign reserves held by State Bank on June 3, amounted $ 16,462.6 million and the net foreign reserves with the commercial banks were $ 4,804 million.

During the week ending June 03, SBP's liquid foreign reserves decreased by $ 344 million to $ 16,463 million as compared to $16,807 million in the previous week.

During the week, SBP made payments of $ 374 million on account of external debt servicing and other official payments.

Copyright APP (Associated Press of Pakistan), 2016

References

  1. ^ Home (www.brecorder.com)
  2. ^ Pakistan (www.brecorder.com)
  3. ^ Banking & Finance (www.brecorder.com)
  4. ^ Posted by Pa rvez Jabri (www.brecorder.com)


Source

Forex – US dollar rallies against Euro, Pound on safe-haven demand

Forex � US dollar rallies against Euro, Pound on safe-haven demand.

Fxpips.com – Safe-haven demand strengthened exchange rates for the US greenback, but reduced central bank's rate increase bets limits the appeal of the currency.

Since the hugely dismal Non-Farm Payrolls data released for May, the US greenback has had some trouble versus reduced bets concering the timing of a Federal Reserve cash rate hike.

While anticipations of rate increase deferments continue to affect the attractiveness of the US currency, safe-haven demand has pushed it to rally against its key counterparts today.

Employment market figures in the US have a potential to steer dollar volatility, especially as traders hope to measure whether the decline in last month's NFP was a temporary scare or an indication of things to come.

Meanwhile, here are the latest live forex rates update:

As of Thursday the GBP to USD currency exchange rate converts at 1.447; the live inter-bank USD-GBP spot rate is quoted as 0.691 as of press time; The live inter-bank US dollar to Euro spot rate is quoted as 0.881; and the live inter-bank US dollar to Australian dollar rate is quoted as 1.345 as of Thursday.



Source

FOREX-Yen rises on safe-haven bids, dollar rebounds

FOREX-Yen rises on safe-haven bids, dollar rebounds.

A broad decline in commodity and stock prices in major world markets raised the yen on Thursday in a search for low-risk assets prompted by the prospect of prolonged low inflation and negative interest rates.

The yen, which investors prefer in times of market uncertainty, reached a three-year peak against the euro EURJPY= and a five-week high versus the U.S. dollar JPY=[1].

"It's generally a cautious mood today. You have stocks lower and yields lower," said Eric Viloria, currency strategist at Wells Fargo Securities in New York.

German 10-year Bu nd yield and British 10-year Gilt yields reached record lows at 0.024 percent and 1.222 percent respectively on Thursday, as falling yields put pressure on bank shares and the broader market globally. Oil prices CLc1 LCOc1 retreated from their highest levels of the year but held above $50 a barrel.

The yen gained 1.2 percent against the euro at 120.35 yen after hitting 120.29 yen, which was last seen in April 2013. It was last up 0.5 percent versus the dollar at 106.47 yen after touching 106.24 yen, its strongest since May 4.

The dollar rebounded against other currencies, except for the yen, following the prior day's losses tied to reduced bets on a pending U.S. interest rate increase following last week's disappointing jobs report.

The dollar index, which tracks the greenback against the euro, yen and four other currencies .DXY, rebounded from five-week lows set on Wednesday. It was last up 0.5 percent at 94.049.

The greenback's gains were supported by an unexpected drop in domestic jobless claims and a stronger-than-expected rise in wholesale sales in April, soothing some worries about U.S. economic growth decelerating in the second quarter.

Analysts expected the dollar would hold in a narrow range ahead of the Federal Reserve's two-day meeting next week.

"The dollar is still in a consolidation phase. It would continue to do so before next week's Fed meeting," Viloria said.

Interest rates futures implied traders saw nearly no chance the U.S. central bank would raise rates at the upcoming meeting FFM6, according to Reuters data. FEDWATCH

Overnight, the Reserve Bank of New Zealand left interest rates unchanged at 2.25 percent, citing concerns over rising house prices and emerging inflationary pressures.

RBNZ's move surprised some investors who had expected a rate cut, propelling the New Zealand dollar to its strongest versus its U.S. counterpart in almost a year at $0.7148 NZD=D4[2].

The Kiwi was last up 1.5 percent at $0.7127.

(Additional reporting by Patrick Graham in London; Editing by Gareth Jones and James Dalgleish)

References

  1. ^ JPY= (www.reuters.com)
  2. ^ NZD=D4 (www.reuters.com)


Source

FOREX-Yen, dollar gain on safe haven plays

FOREX-Yen, dollar gain on safe haven plays.

LONDON A grim mood on global financial markets sent investors searching for the traditional security of the dollar and yen on Thursday, driving both higher against a euro weakened by the prospect of prolonged low inflation and negative interest rates.

A 1.5 percent surge for the New Zealand dollar after interest rates there were kept on hold had been by far the biggest move on major currency markets in Asian trading and early in Europe's day.

But the yen's jump to its strongest in three years against the euro EURJPY= and to five-week highs against the dollar dominated morning trade in London. JPY=[1]

Worries over euro zone banks, and a sluggish global economy more generally, have been fuelled by signs that money managers are considering hoarding cash in bank vaults, given the lack of return on capital.

"There is the whiff of risk-off sentiment in the market and that is definitely helping the yen," said Alvin Tan, a strategist with French bank Societe Generale in London.

"The dollar has generally been a safe haven, particularly against emerging market currencies. But it remains underperforming against the more traditional safe havens like the yen."

The Swiss franc was also up for a fourth day running against the euro. EURCHF= It has gained more than 2 percent in the last week, with dealers citing flows of capital taking shelter from risks due to Britain's vote on EU membership on June 23.

Sterling itself was down around a third of a percent against both the dollar and the euro. GBP=[2] EURGBP=

New Zealand's Reserve Bank surprised some investors who had been betting on a rate cut and its concerns over rising house prices and emerging inflationary pressures cooled expectations that the bank will cut soon.

While growth remains shaky and price growth extremely low, along with its Australian and Canadian counterparts, the kiwi dollar has been steadily recovering since reaching long-term lows in January of this year.

By noon in London it was up 1.2 percent at $0.7106, off a high of $0.7148 hit in Asian time. NZD=D4[3]

"The kiwi went on a rampage after the RBNZ kept rates on hold," said Tobias Davis, head of corporate treasury sales at Western Union in London.

"Governor Wheeler's comments centred around data being a decision driver, inflation expectations anchoring and the fact that strong property prices were a cause for concern. We think downside risks remain, along with the chance of a cut in August."

(Editing by Gareth Jones)

References

  1. ^ JPY= (uk.reuters.com)
  2. ^ GBP= (uk.reuters.com)
  3. ^ NZD=D4 (uk.reuters.com)


Source

Daily Forex Update: EUR/NZD

Daily Forex Update: EUR/NZD.

Autochartist recently identified the breakout of the Rectangle chart pattern on the daily charts. The Quality of this chart pattern is measured by Autochartist at the 6-bar level – which reflects the below-average Initial Trend (4 bars), significant Uniformity (8 bars) and above-average Clarity (6 bars). The strength of this Rectangle breakout is rated by Autochartist at the 6-bar level. EUR/NZD is likely to fall to the Forecast Price 1.5808.

EUR/NZD 82 Candles Chart

EUR/NZD 82 Candles Chart

As you can see from the PowerStats chart below, the lower boundary of the daily Expected Price Range calculated by Autochartist for this currency pair (1.5781) stands well below the Forecast Price calculated by Autochartist for the breakout of this Rectangle (1.5808) – which adds to the probability the pair will continue to fall toward 1.5808 in the nearest time.

Expected Price Range For EUR/NZD At Thursday 10h00

Expected Price Range For EUR/NZD At Thursday 10h00



Source

Forex - Kiwi down slightly after RBNZ holds at 2.25%, signals ease bias

Forex - Kiwi down slightly after RBNZ holds at 2.25%, signals ease bias.
Kiwi down after RBNZ holdsKiwi down after RBNZ holds

Investing.com - The Kiwi eased slightly on Thursday after the held the official cash rate steady at 2.25% and signaled room for easing.

traded at 0.7090, down 0.03%.

changed hands at 106.93, down 0.06%, while was quoted at 0.7488, down 0.01%.

Ahead, in Japan, core machinery orders are due for April with a 3.8% drop seen and a decline of 2.3%.

In China, CPI data for May is expected to show a 0.2% drop for an pace of a 2.3% gain , while are seen down 3.3% year-on-year.

The , which measures the greenback's strength against a trade-weighted basket of six major currencies, was last quoted at 93.59.

Overnight, the dollar fell to fresh one-month lows against the other major currencies in quiet trade on Wednesday, as uncertainty over the timing of the next U.S. rate hike continued to dampen demand for the greenback.

Sentiment on the greenback remained fragile after Federal Reserve Chair Janet Yellen indicated on Monday that the U.S. central bank won't be raising interest rates until uncertainty over the economic outlook is resolved.

Yellen said she expects the economic recovery to continue but gave no indications on the timing of a next rate increase.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source