Forex News (from InstaForex) - page 10

[IFXSvetlana]

European Currency Climbs To 13-day High Against British Pound

Tuesday, the European currency rose to a 13-day high against the British pound. The euro also edged higher against the US dollar, while showed weakness versus the Swiss franc and the Japanese yen.

Germany's Federal Statistical Office said today in a final report that the consumer price index or CPI dropped 0.5% year-over-year in July, in contrast to the 0.1% increase in the preceding month. The consumer price index in July was revised up from 0.6% fall estimated in the preliminary report. This was the first annual decline in consumer prices since March 1987.

On a monthly basis, the CPI remained unchanged in July, revised from 0.1% fall reported initially. In June, the CPI was up 0.4%.

Against the US dollar, the European currency edged higher during early deals on Tuesday. At 3:25 am ET, the euro-dollar pair reached a high of 1.4183, compared to 1.4141 hit late New York Monday. The pair is currently trading at 1.4153 with 1.426 seen as the next target level.

The single currency that closed Monday's North American session at 0.8581 against the British pound climbed to 0.8618 at 3:40 am ET Tuesday. This set a 13-day high for the pair. If the euro-pound pair gains further, 0.866 is seen as the next target level.

Against the Swiss franc, the 16-nation currency edged down during Tuesday's early deals. At 6:20 am ET, the euro-franc pair declined to a 4-day low of 1.5336, compared to Monday's closing value of 1.5350. The next downside target level for the euro is seen around1.528.

The euro gained ground after hitting a 6-day low of 136.46 against the Japanese yen during early Asian deals on Tuesday. The euro-yen pair thus climbed to 137.39 at 3:25 am ET Tuesday before reversing direction. Currently, the pair is trading at 136.67, compared to yesterday's closing value of 137.39. On the downside, 135.0 is seen as the next target level for the pair.

Today, the Bank of Japan retained its key interest rate as expected and also maintained its cautious assessment about the economy.

News are provided by InstaForex.

[IFXDarika]

Wednesday, the yen extended its yesterday's uptrend against other major currencies as Asian stocks tumbled today and prompted investors to further liquidate yen short positions ahead of a policy statement from the U.S. Federal Reserve later in the day.

Asian shares plunged today after losses on Wall Street and as investors locked in profits as they waited to hear what the U.S. Federal Reserve would say about prospects for recovery in the world's largest economy.

Japan's Nikkei 225 was down 1.17%, South Korea's Kospi Composite fell 0.87%, Hong Kong's Hang Seng was 1.93% lower while China's Shanghai Composite slipped 2.93% and Taiwan's main index dropped 0.15%.

The Fed will conclude its two-day policy meeting and release a statement around 2:15 pm ET today, with investors looking to its assessment of the economy and whether it unwinds some of the unconventional easing measures currently in place.

There is mounting speculation that Fed might grow more optimistic about a recovery after a better-than-expected jobs report for July.

The U.S. Labor Department report showed that non-farm payroll employment fell by 247,000 jobs in July following a revised decrease of 443,000 jobs in June. Economists had been expecting employment to fall by 325,000 jobs compared to the drop of 467,000 jobs originally reported for the previous month. The Labor Department also said that the unemployment rate unexpectedly edged down to 9.4% in July from 9.5%, recording a decrease for the first time since April 2008.

The Fed has kept its target rate for overnight loans between banks in a range from zero to 0.25 percent since December. The Federal Open Market Committee will keep rates unchanged today, analysts expect. The central bank has bought $252.761 billion of U.S. Treasuries since it announced a six-month plan in March to purchase $300 million of Treasuries to help keep borrowing low.

Japan's corporate goods price index fell at a record pace in July, adding to concerns that deflation in the world's second largest economy is accelerating.

The Bank of Japan's CGPI data, which tracks prices of domestically produced and used goods traded among companies, plunged 8.5% in July from a year earlier, breaking the record 6.7% drop set in the previous month. Moreover, this was the seventh consecutive month of decline.

Today's results will likely heighten fears of persistent price falls in Japan, as overall economic activity has yet to show signs of a full-fledged recovery.

Still, BOJ Governor Masaaki Shirakawa said at a regular press conference on Tuesday that the BOJ doesn't expect Japan to fall into a deflationary spiral now, though "it may take time for falls in prices to end."

On a monthly basis, the domestic CGPI rose 0.4% in July, following the 0.3 percent decline in the previous month.

Meanwhile, a final report from the Ministry of Economy, Trade and Industry showed that Japan's industrial production growth in June came in at 2.3% on a monthly basis, revised down from 2.4% estimated initially. From the previous year, production plunged 23.5%.

The yen that closed yesterday's trading at 96.01 against the dollar strengthened to a 5-day high of 95.35 during Asian deals on Wednesday. The next upside target level for the yen is seen at 94.7.

The yen plunged to near an 8-week low of 97.80 against the dollar on August 07 as the dollar gained 2% on that day following better-than-expected U.S. jobs data.

But the yen is showing strength this week on encouraging economic reports from Japan. Reports showed this week that Japan's current account surplus and the machinery orders rose more than expected in June. Thus far, the yen has advanced 2.5% against the dollar.

In Asian trading on Wednesday, the yen rose to a 9-day high of 134.91 against the euro. This may be compared to yesterday's closing value of 135.84. On the upside, 133 level is seen as the next target for the Japanese currency.

After hitting a 2-month low of 138.73 against the euro on Friday, the yen has appreciated 3% thus far.

The yen jumped to a 12-day high of 157.29 against the pound in Asian deals on Wednesday. If the yen edges up further, it may likely target the 154.2 level. The pound-yen pair was worth 158.21 at yesterday's close.

Thus far this week, the yen has depreciated 3% against the pound.

During Asian deals on Wednesday, the yen soared to a 12-day high of 88.16 against the Swiss franc. The next target level for the Japanese currency is seen at 87.1. At yesterday's close, the franc-yen pair was quoted at 88.78.

The yen that slumped to near an 8-week low of 90.74 against the franc on Friday has gained 3% since then.

In Asian deals on Wednesday , the yen jumped to a 13-day high of 78.47 against the Aussie and an 8-day high of 63.33 against the NZ dollar. The next upside target level for the yen is seen at 77.0 against the aussie and 63.0 against the kiwi. The aussie-yen pair closed trading at 79.63 and the kiwi-yen pair at 64.09 on Tuesday.

Consumer confidence in Australia rose to a near two-year high in August, as reported today by Westpac Bank and the Melbourne Institute. The group said its index of consumer sentiment was up 2.7 percent compared to July, reaching its highest level since October 2007. The index has increased 27.8 percent since May, making it the sharpest three-month gain since the survey's inception in 1975.

Against the Canadian dollar, the yen surged up to a 2-week high of 86.53 in Asian trading on Wednesday. On the upside, 86.3 is seen as the next target level for the Japanese currency. At yesterday's close, the loonie-yen pair was quoted at 87.15.

The loonie declined as oil steadied below $70 a barrel today after four consecutive days of losses as the market waited for a second set of U.S. inventory data and kept an eye on the outcome of the U.S. Federal Reserve's two-day meeting.

U.S. light crude for September delivery rose 9 cents to $69.54 a barrel in Asian deals, having lost $1.15 on Tuesday on Wall Street losses and after the Energy Information Administration (EIA) revised lower its global oil demand forecast. London Brent crude fell 6 cents to $72.40.

Looking ahead, the French July CPI and June current account, Italian final July CPI, Euro-zone June industrial production, U.K. labor market reports as well as the Bank of England's quarterly inflation report are expected to influence trading in the upcoming session.

From the U.S., the trade balance report for June is due at 8:30 am ET.

At the same time, the Canadian June trade balance and new housing price index reports are scheduled for release.

News are provided by InstaForex.

[IFXSvetlana]

Czech June Retail Sales Decline For Ninth Straight Month.

Thursday, the Czech statistical office said in a report that the retail sales dropped 4.9% year-over-year in June, compared with a 7.5% fall in the previous month. This was the ninth consecutive month of decline in retail sales. Economists had expected an increase of 4.5%.

Retail sales including automotive segment decreased a seasonally adjusted 1.1% on a monthly basis in June and it was down 5.8% from last year.

The statistical office said the seasonally adjusted sales in sale and repair of motor vehicle fell 1.4% compared to the previous month and it dropped 14% annually. Meanwhile, retail sales including sale of automotive fuel decreased 0.9% from May and 2.2% fall compared to the previous year.

News are provided by InstaForex.

[IFXSvetlana]

European Currency Falls Against Most Majors.

Wednesday, the euro edged down against its U.S., Swiss and Japanese counterparts as reports showed that the German PPI declined in July and the Euro-zone current account deficit widened in June.

The European Central Bank report showed today that the Eurozone current account balance on an adjusted basis showed a deficit of EUR 5.3 billion in June, much larger than the revised EUR 0.1 billion deficit seen in May.

The deficit in June reflected EUR 5.2 billion deficit in current transfers and EUR 2.8 billion shortfall in income, which were partly offset by surpluses in goods and services. On an unadjusted basis, the current account deficit totaled EUR 0.3 billion in June.

Earlier today, Germany's Federal Statistical Office said in a report that the producer price index or PPI dropped 7.8% year-over-year in July, compared with a 4.6% fall in the previous month. Economists were looking for a decline of 6.5%. A year earlier, the PPI was up 8.2%. This was the lowest annual rate since the producer price statistics started in 1949, the Destatis said.

On a monthly basis, the PPI dropped 1.5% in July, after falling 0.1% in June. Economists had expected a decline of 0.2%.

In addition, the Eurozone construction output dropped a seasonally adjusted 1.1% % month-on-month in June after falling 2% in May, the Eurostat said today. On an annual basis, the construction production decreased 8.8% in June, compared with a 7.6% fall in May, revised from 8% fall reported initially.

Against the US dollar, the European currency edged down during early deals on Wednesday. At 4:10 am ET, the euro-dollar pair touched a low of 1.4086, moving from an early Asian session's 2-day high of 1.4173. The next downside target level for the pair is seen around 1.401.

The single currency that closed Tuesday's North American session at 0.8539 against the British pound climbed to 0.8613 at 5:15 am ET Wednesday. If the euro-pound pair gains further, 0.868 is seen as the next target level.

The pound extended its Asian session's slide as the minutes from the Bank of England's policy meeting showed that policymakers were divided about the amount by which to extend its asset-buying programme.

The minutes of the Bank of England showed today that six members of the Monetary Policy Committee voted to raise the size of asset purchases by GBP 50 billion. While, other three members sought a GBP 75 billion increase to GBP 200 billion.

The meeting was held on August 5 and 6. The central bank held the key interest rate unchanged at 0.5% in this meeting.

Governor Mervyn King, Tim Besley and David Miles were the three members who preferred a larger increase in asset purchase programme.

Against the Swiss franc, the 16-nation currency showed weakness during today's early deals. At 3:00 am ET, the euro-franc pair declined to 1.5179, compared to Tuesday's closing value of 1.5206. The pair is currently trading at 1.5188 with 1.515 seen as the next target level.

The euro that closed Tuesday's New York deals at 133.85 against the Japanese yen slipped to a 4-day low of 132.64 at 2:45 am ET Wednesday. On the downside, 131.7 is seen as the next target level for the euro. The euro-yen pair is presently trading at 132.94.

Japan's all industry activity index dropped 8.2% year-on-year in June, slower than a 10.2% fall in the preceding month, the Ministry of Economy, Trade and Industry said today.

On a monthly basis, the index rose a seasonally adjusted 0.1% in June compared to a 0.7% rise in the preceding month. Economists expected an increase of 0.3%. The index rose for the third consecutive month in June.

There are no important economic reports scheduled to be released from U.S. today.

News are provided by InstaForex.

[IFXDarika]

The US dollar that showed signs of recovery against most of its major rivals immediately following the release of the S&P/Case-Shiller home price index for June lost ground shortly. As of 9:10 am ET, the greenback drifted lower to 1.0571 against the Swiss franc, 1.6447 versus the pound and 1.4362 against the euro.

The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index fell at an annual rate of 15.4 percent in June compared to a revised 17 percent drop in May. Economists had expected prices to fall 16.4 percent compared to the same month a year ago.

News are provided by InstaForex.

[IFXDarika]

House prices in the UK rose for the fourth consecutive month in August, increasing by 1.6% month-on-month on a seasonally adjusted basis, the Nationwide building society said Thursday. Economists had forecast house prices to grow only 0.5% after a revised increase of 1.4% in July.

Compared to the previous year, house prices fell 2.7% in August, much slower than the 6.2% decline seen in July. The average price of a typical UK property stood at GBP 160,224, up from GBP 158,871 in July.

Over the first eight months of 2009, the seasonally adjusted index of house prices has risen by 3.2%, though relative to the October 2007 peak it is down by 14.4%, the Nationwide said.

News are provided by InstaForex.

[IFXSvetlana]

European Currency Falls From 4-day High Against Dollar And Yen.

During early European deals on Tuesday, the European currency declined from a 4-day high against the US dollar and the Japanese yen. The euro also edged down versus the Swiss franc, while rose to a 5-day high against the British pound. In economic news from Europe, a key indicator for Eurozone manufacturing activity increased to a 14-month high in August, rising more than initially estimated, a report by Markit Economics said today.

However, the sector continued to contract, though at a slower pace. The final Markit Manufacturing Purchasing Managers' Index or PMI climbed to 48.2 in August from 46.3 in July. The index also stood above the flash estimate of 47.9. The final reading came in above the flash for the fifth month running.

Eurostat said in a report that Eurozone jobless rate stood at 9.5% in July, up from 9.4% in the previous month. This was the highest jobless rate since May 1999. The jobless rate came in line with economists' expectations. A year ago, the jobless rate was 7.5%.

German retail sales recorded a monthly growth in July after declining in the previous two months, official data showed today. Retail turnover rose by a real 0.7% month-on-month in July after falling 1.3% in June, provisional results from the Federal Statistical Office showed today. Retail sales growth matched expectations. Annually, retail sales slipped 1%, slightly slower than the expected decline of 1.2%.

Against the US dollar, the European currency lost ground after hitting a 4-day high of 1.4379 at 2:00 am ET Tuesday. The euro-dollar pair is currently trading at 1.4327 with 1.415 seen as the next target level. The single currency that closed Monday's North American session at 0.8803 against the British pound slipped to a 5-day low of 0.8774 at 3:40 am ET Tuesday. Thereafter, the euro-pound pair reversed its direction and is presently trading at a 5-day high of 0.8838. The next upside target level for the European currency is seen around 0.893.

The numbers of loan approvals for house purchase in the UK stood at 50,123 in July, up from 47,891 in June, the Bank of England reported today. Economists were expecting a level of 50,100 for July.

Against the Swiss franc, the 16-nation currency edged down during early deals on Tuesday. At 5:05 am ET, the euro-franc pair declined to 1.5156, compared to 1.5181 hit late New York Monday. If the pair falls further, 1.513 is seen as the next target level. The Swiss economy contracted less than expected in the second quarter as investment rebounded and the pace of decline in exports eased, official data showed today.

Gross domestic product or GDP fell 0.3% sequentially in the second quarter, the State Secretariat for Economic Affairs or SECO said. Economists had forecast GDP to fall 1% in the second quarter after a revised decline of 0.9% in the first quarter. GDP fell for the fourth straight quarter.

Switzerland's Purchasing Managers' Index rose to 50.2 in August from 44.3 in July, a survey from the SVME Association of Purchasing and Materials Management and Credit Suisse showed Tuesday. The indicator also stood above the expected level of 46.9.

The euro that reached a 4-day high of 134.17 against the Japanese yen at 3:15 am ET Tuesday weakened thereafter. Currently, the euro-yen pair is quoted at 133.53, compared to Monday's closing value of 133.49. On the downside, 132.2 is seen as the next target level for the pair.

From the U.S., the ISM manufacturing index for August and the pending home sales and construction spending reports for July have been slated for release in North American session.

News are provided by InstaForex.

[IFXSvetlana]

Swedish Krona Soars To 10-day High Against Dollar.

The Swedish krona gained ground against its US counterpart in early trading on Thursday following the Central Banks of both the Sweden and Europe decided to leave their key interest rates unchanged, as expected.

The Executive Board of the Riksbank maintained the repo rate at a record low of 0.25% and the rate is expected to remain at this low level until autumn 2010. The central bank said the interest rate needs to be low over a long period of time to support a stable recovery and to attain the 2% inflation target.

The central bank is of the view that supplementary measures are required to ensure the intended effect of monetary policy. So, the Executive Board decided to offer further loans of SEK 100 billion to the banks at a fixed interest rate and with a maturity of around one year. This could help in lowering interest rates on loans given to companies and households, the Riksbank added.

The central bank further raised the economic outlook and forecasts recovery in the next year. Now, the economy is estimated to shrink 4.9% this year, better than the 5.4% fall estimated previously. The 2010 GDP growth is seen at 1.9% compared to the 1.4% expansion estimated previously.

The Swedish krona that slumped to a 6-day low of 1.4467 against the greenback on Wednesday has gained around 0.65 percent to touch an 11-day high of 1.4439 by 7:45 am ET. The pair moved sideways thereafter and is currently quoted at 1.4383.

The Swedish krona ended its Wednesday's trading higher at 1.4424 against the buck. If the domestic currency gains further, resistance is likely to be seen around the 1.432 level.

Also, the European Central Bank held its key interest rate at a record low level of 1%. The decision was in line with economists' expectations.

News are provided by InstaForex.

[IFXDarika]

Crude oil prices saw little change for a second straight session on Thursday, remaining near the $68 per barrel mark. Traders looked ahead to the jobs report on Friday

Light sweet crude for October fell to $67.96, down nine cents on the session. Prices touched as high as $69.40 after earlier hitting as low as $67.66.

The Labor Department's non-farm payroll report is expected at 8:30 a.m. ET tomorrow. Jobs are expected to drop by 225,000 jobs in August, compared to a drop of 247,000 in July. The unemployment rate is expected to inch up to 9.5%, compared to 9.4% a month earlier.

In economic news, the Labor Department reported jobless claims edged down to 570,000 from the previous week's revised figure of 574,000. Economists had been expecting jobless claims to slip to 564,000 from the 570,000 originally reported for the previous week. The Labor Department's monthly employment situation report is due tomorrow.

Later, the Institute for Supply Management said its index of activity in the service sector rose to 48.4 in August from 46.4 in July, with a reading below 50 indicating a contraction in the sector. Economists had been expecting a slightly lower reading of 48.0.

On Wednesday, the Energy Department revealed U.S. commercial crude oil inventories decreased by 400,000 barrels in the week ended August 28 to reach 43.4 million barrels. Experts were looking for a drop of about 1.9 million barrels. Total motor gasoline inventories decreased by 3.0 million barrels last week.

News are provided by InstaForex.

[IFXDarika]

During early deals on Monday, the US dollar and the Japanese yen edged down against their major counterparts as a rise in Asian and European stock prices reduced demand for currencies perceived as safe havens.

The dollar and the yen are viewed as safe-haven currencies and both currencies gain, when investors turn risk averse and fall when risk appetite improves.

The dollar slipped to a 6-day low against the European currency, 13-day low versus the British pound, 4-day low against the Swiss franc, while edged higher to a 6-day high against the Japanese yen.

Against the European currency, the US dollar edged down during early deals on Monday. At 3:05 am ET, the dollar touched a 6-day low of 1.4363 against the euro, compared to 1.4312 hit late New York Friday. The next downside target level for the US currency is seen around 1.445.

The Sentix investor confidence indicator for the Eurozone rose to minus 14.61 in September from minus 17 in August. Economists had forecast a reading of minus 13.7. Among the sub-indicators, the current situation index moved to minus 32.75 from minus 39, while the expectations index fell to 5.50 in September from 8 in August.

The US currency that closed Friday's North American session at 1.6399 against the British pound slipped to a 13-day low of 1.6445 at 3:35 am ET Monday. The pound-dollar pair is currently trading at 1.6419 with 1.660 seen as the next target level.

Against the Swiss franc, the greenback traded down during Monday's early deals. At 3:05 am ET, the dollar-franc pair declined to a 4-day low of 1.0558, compared to Friday's closing value of 1.0603. If the pair falls further, 1.054 is seen as the next target level for the pair.

The US dollar gained ground after hitting a low of 92.95 against the Japanese yen during today's early Asian deals. At 4:15 am ET, the dollar-yen pair climbed to a 6-day high of 93.31. On the upside, 93.6 is seen as the next target level for the pair. The pair closed Friday's New York deals at 93.01.

The Japanese yen showed weakness against its major counterparts during today's early deals.

The Japanese currency edged down to a 10-day low of 153.29 against the British pound and a 6-day low of 133.89 versus the European currency during today's early deals. If the Japanese yen falls further, 154.1 against the pound and 134.5 versus the euro are seen as the next target levels. The yen closed Friday's deals at 152.53 against the pound and 133.11 against the euro.

Against the Swiss franc, the Japanese unit showed weakness during today's deals. At 4:15 am ET, the yen slipped to a 6-day low of 88.32 against the franc, compared to Friday's closing value of 87.76. The next downside target level for the Japanese yen is seen around 88.6.

The U.S. financial markets are closed today in observance of the Labor Day holiday.

News are provided by InstaForex.