Investing.com - The dollar weakened broadly against the other major currencies on Friday, after the release of mixed U.S. economic reports, as U.S. budget concerns and uncertainty over the future of the Federal Reserve's stimulus program continued to dominate market attention.
During U.S. morning trade, the dollar was lower against the yen, withUSD/JPY retreating 0.69% to 98.33.
The yen gained ground against the dollar after Japanese Finance Minister Taro Aso said that he is not thinking of lowering the corporate tax rate.
In the U.S., the University of Michigan said its consumer sentiment index fell to 77.5 in September, from a reading of 76.8 the previous month. Analysts had expected the index to rise to 78.0 this month.
The report came after official data showed that U.S. personal spending rose 0.3% in August, in line with expectations, after an upwardly revised 0.2% increase the previous month.
Data also showed that personal income in the U.S. rose 0.4% last month, as expected, after an upwardly revised 0.2% gain in July.
A separate report showed that core personal consumption expenditures, excluding food and energy, rose 0.2% in August, more than the expected 0.1% gain, after a 0.1% increase in July.
The data came amid ongoing uncertainty over whether the Fed will soon begin taperints bond-buying program. Three top Fed officials said on Thursday the central bank had confused markets over its policy outlook.
Separately, U.S. budget concerns persisted after Republican leaders in the U.S. House of Representatives refused on Thursday to give in to President Barack Obama's demand for straightforward bills to run the government beyond September 30 and to increase borrowing authority to avoid a default.
Elsewhere, the euro was higher against the dollar, with EUR/USDclimbing 0.42% to 1.3545.
Preliminary data earlier showed that German consumer price inflation was flat in September, in line with market expectations.
The dollar was lower against the pound and the Swiss franc, withGBP/USD gaining 0.46% to 1.6115 and USD/CHF declining 0.73% to trade at 0.9037.
Sterling strengthened after Bank of England Governor Mark Carney said to the Yorkshire Post that hhe sees no need for more bond-buying given the signs of recovery in the U.K. economy.
In Switzerland, data showed that the KOF economic barometer rose to 1.53 in September, from an upwardly revised reading of 1.37 the previous month, compared to expectations for a rise to 1.47.
Elsewhere, the greenback trimmed gains against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.49% to 0.9314, NZD/USD shedding 0.38% to 0.8258 and USD/CAD edging up 0.06% to 1.0316.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.41% to 80.30.
Friday, September 27, 2013
Tuesday, September 24, 2013
Forex - USD/CAD little changed in early trade
Investing.com - The U.S. dollar was little changed against the Canadian dollar in early trade on Tuesday, as investors remained cautious amid concerns over the outlook for the U.S. economic recovery.
USD/CAD hit 1.0272 during early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0287, inching up 0.03%.
The pair was likely to find short-term support at 1.0261, the low of September 20 and resistance at 1.0309, Monday’s high.
Concerns over the outlook for the U.S. recovery mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Investors were looking ahead to U.S. data on consumer confidence later in the trading day.
The Canadian dollar showed little reaction after data release on Tuesday showed that domestic retail sales missed expectations in July.
Statistics Canada said retail sales were 0.6% higher in July, below forecasts for a 1% gain. Core retail sales were up 1%, in line with forecasts.
The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.01% to 1.3875.
In the euro zone, a report showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
USD/CAD hit 1.0272 during early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0287, inching up 0.03%.
The pair was likely to find short-term support at 1.0261, the low of September 20 and resistance at 1.0309, Monday’s high.
Concerns over the outlook for the U.S. recovery mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Investors were looking ahead to U.S. data on consumer confidence later in the trading day.
The Canadian dollar showed little reaction after data release on Tuesday showed that domestic retail sales missed expectations in July.
Statistics Canada said retail sales were 0.6% higher in July, below forecasts for a 1% gain. Core retail sales were up 1%, in line with forecasts.
The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.01% to 1.3875.
In the euro zone, a report showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
Forex - EUR/USD falls as Draghi says ECB may bolster banking sector
Investing.com - The euro softened against the dollar on Monday after European Central Bank President Mario Draghi said monetary authorities were willing to provide low-costs loans to the euro zone's banks to keep interest rates from rising.
In U.S. trading on Monday, EUR/USD was down 0.20% at 1.3496, up from a session low of 1.3480 and off from a high of 1.3547.
The pair was likely to find support at 1.3325, Tuesday's low, and resistance at 1.3568, Thursday's high.
The euro softened after Draghi said that the European Central Bank may provide banks with a new round of low-cost loans known as long-term refinancing operations to ensure interest rates stay low in short-term money markets and keep inflation rates in target.
In 2011, the ECB began lending out EUR1 trillion in long term refinancing operations to spur recovery, which weaken the euro.
Elsewhere, data released earlier showed that the euro zone preliminary manufacturing purchasing managers’ index fell to 51.1 in September from a final reading of 51.4 in August. Analysts were expecting the index to rise to 51.8.
Conversely, the euro zone services PMI rose to 52.1, its highest level since June 2011, from 50.7 in August and well above expectations for a reading of 51.1.
Germany’s manufacturing PMI fell to 51.3 in September from a final reading of 51.8 in August, defying expectations for an improvement to 52.2.
The German services PMI rose to a seven month high of 54.4 from a reading of 52.8 in August. Analysts were expecting the index to tick up to 53.1
Also in Germany, Chancellor Angela Merkel's conservative party won general elections on Sunday, securing her a third term in office.
Across the Atlantic, the greenback came under pressure after New York Federal Reserve President William Dudley defended the U.S. central bank’s decision to leave its ultra-loose monetary policy unchanged.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing."
"The economy still needs the support of a very accommodative monetary policy," Dudley added.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.43% at 0.8413 and EUR/JPY trading down 0.76% at 133.34.
On Tuesday, the Ifo Institute is to release a closely watched report on German business climate, a leading economic indicator.
The U.S. is to release private-sector data on housing prices as well as a closely-watched report on consumer confidence.
In U.S. trading on Monday, EUR/USD was down 0.20% at 1.3496, up from a session low of 1.3480 and off from a high of 1.3547.
The pair was likely to find support at 1.3325, Tuesday's low, and resistance at 1.3568, Thursday's high.
The euro softened after Draghi said that the European Central Bank may provide banks with a new round of low-cost loans known as long-term refinancing operations to ensure interest rates stay low in short-term money markets and keep inflation rates in target.
In 2011, the ECB began lending out EUR1 trillion in long term refinancing operations to spur recovery, which weaken the euro.
Elsewhere, data released earlier showed that the euro zone preliminary manufacturing purchasing managers’ index fell to 51.1 in September from a final reading of 51.4 in August. Analysts were expecting the index to rise to 51.8.
Conversely, the euro zone services PMI rose to 52.1, its highest level since June 2011, from 50.7 in August and well above expectations for a reading of 51.1.
Germany’s manufacturing PMI fell to 51.3 in September from a final reading of 51.8 in August, defying expectations for an improvement to 52.2.
The German services PMI rose to a seven month high of 54.4 from a reading of 52.8 in August. Analysts were expecting the index to tick up to 53.1
Also in Germany, Chancellor Angela Merkel's conservative party won general elections on Sunday, securing her a third term in office.
Across the Atlantic, the greenback came under pressure after New York Federal Reserve President William Dudley defended the U.S. central bank’s decision to leave its ultra-loose monetary policy unchanged.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing."
"The economy still needs the support of a very accommodative monetary policy," Dudley added.
Elsewhere, the euro was down against the pound and down against the yen, with EUR/GBP trading down 0.43% at 0.8413 and EUR/JPY trading down 0.76% at 133.34.
On Tuesday, the Ifo Institute is to release a closely watched report on German business climate, a leading economic indicator.
The U.S. is to release private-sector data on housing prices as well as a closely-watched report on consumer confidence.
European stocks hold gains after German Ifo data; Dax up 0.29%
nvesting.com - European stocks remained higher on Tuesday, after data showed that German business confidence improved less-than-expected in September, but still rose to the highest level since March 2012.
During European afternoon trade, the EURO STOXX 50 advanced 0.47%, France’s CAC 40 gained 0.65%, while Germany’s DAX 30 rose 0.29%.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, but came in below expectations for a reading of 108.2.
European equities found support after European Central Bank President Mario Draghi on Monday said the ECB is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
In the U.S., New York Fed President William Dudley defended the central bank’s decision to keep its stimulus program unchanged last week, in comments on Monday.
Financial stocks remained mixed, as BNP Paribas rose 0.08% and Societe Generale slid 0.65% in France, while Germany's Deutsche Bank added 0.20%.
Peripheral lenders, however, turned broadly higher as Spanish banks Banco Santander and BBVA gained 0.30% and 0.40% respectively, while Italy's Intesa Sanpaolo and Unicredit advanced 0.59% and 0.66%.
Elsewhere, Telecom Italia rallied 1.95% after Telefonica agreed to pay EUR324 million to increase its stake in Telco SpA, a holding company that owns 22.4% of Telecom Italia, to 66% from 46%.
In London, FTSE 100 added 0.23%, still supported by gains in the financial sector.
Shares in the Royal Bank of Scotland rose 0.27% and HSBC Holdings eased up 0.09%, while Barclays jumped 1.42% and Lloyds Banking gained 0.33%.
Meanwhile, mining stocks remained broadly lower. Glencore Xstrata slipped 0.09% and Evraz lost 1.80%, while Randgold Resources and Fresnillo plummeted 2.23% and 3.21% respectively.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.05% gain, S&P 500 futures signaled a 0.02% dip, while the Nasdaq 100 futures indicated a 0.16% increase.
Later in the day, the U.S. was to release private sector data on house price inflation, as well as a report on consumer confidence.
During European afternoon trade, the EURO STOXX 50 advanced 0.47%, France’s CAC 40 gained 0.65%, while Germany’s DAX 30 rose 0.29%.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, but came in below expectations for a reading of 108.2.
European equities found support after European Central Bank President Mario Draghi on Monday said the ECB is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
In the U.S., New York Fed President William Dudley defended the central bank’s decision to keep its stimulus program unchanged last week, in comments on Monday.
Financial stocks remained mixed, as BNP Paribas rose 0.08% and Societe Generale slid 0.65% in France, while Germany's Deutsche Bank added 0.20%.
Peripheral lenders, however, turned broadly higher as Spanish banks Banco Santander and BBVA gained 0.30% and 0.40% respectively, while Italy's Intesa Sanpaolo and Unicredit advanced 0.59% and 0.66%.
Elsewhere, Telecom Italia rallied 1.95% after Telefonica agreed to pay EUR324 million to increase its stake in Telco SpA, a holding company that owns 22.4% of Telecom Italia, to 66% from 46%.
In London, FTSE 100 added 0.23%, still supported by gains in the financial sector.
Shares in the Royal Bank of Scotland rose 0.27% and HSBC Holdings eased up 0.09%, while Barclays jumped 1.42% and Lloyds Banking gained 0.33%.
Meanwhile, mining stocks remained broadly lower. Glencore Xstrata slipped 0.09% and Evraz lost 1.80%, while Randgold Resources and Fresnillo plummeted 2.23% and 3.21% respectively.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.05% gain, S&P 500 futures signaled a 0.02% dip, while the Nasdaq 100 futures indicated a 0.16% increase.
Later in the day, the U.S. was to release private sector data on house price inflation, as well as a report on consumer confidence.
Gold falls again on tapering concerns
Investing.com - Gold futures traded modestly lower in the early part of
Tuesday’s Asian session as tapering concerns continue to loom large.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery inched down 0.04% to USD1,326.50 per troy ounce in Asian trading Tuesday. The December contract settled lower by 0.41% at USD1,327.00 per ounce on Monday.
Gold futures were likely to find support at USD1,291.70 a troy ounce, Wednesday's low, and resistance at USD1,375.10, Thursday's high.
While gold rallied last Thursday on news that the Federal Reserve will not taper its USD85 billion-a-month in bond purchases, the yellow metal and other precious metals have given up all of those gains and then some.
Ultra-loose monetary policies that include asset purchases drive down interest rates to spur recovery, weakening the dollar in the process and making gold an attractive hedge.
Some members of the Fed are sending mixed messages regarding tapering, adding an element of confusion to financial markets. On Friday, however, St. Louis Fed President James Bullard said that the U.S. central bank could taper its stimulus program during its October meeting, which sparked a round of profit-taking that sent gold prices falling.
However, on Monday, Federal Reserve Bank of New York President William Dudley said the stimulus program would stay in place until data show that recovery will be sustained.
"Our decisions on how to adjust our policy tools—for example, the pace of asset purchases and forward guidance with respect to the level of short-term rates—must be rooted in the ongoing flow of information that informs our judgments about the prospects for a sustainable recovery," said Dudley.
Uncertainty appears to be what is hampering gold at the moment, though may market participants are convinced tapering will happen before year-end with some expecting it will occur next month.
Elsewhere, Comex silver for December delivery fell 0.18% to USD21.818 while copper for December delivery dropped 0.42% to USD3.284.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery inched down 0.04% to USD1,326.50 per troy ounce in Asian trading Tuesday. The December contract settled lower by 0.41% at USD1,327.00 per ounce on Monday.
Gold futures were likely to find support at USD1,291.70 a troy ounce, Wednesday's low, and resistance at USD1,375.10, Thursday's high.
While gold rallied last Thursday on news that the Federal Reserve will not taper its USD85 billion-a-month in bond purchases, the yellow metal and other precious metals have given up all of those gains and then some.
Ultra-loose monetary policies that include asset purchases drive down interest rates to spur recovery, weakening the dollar in the process and making gold an attractive hedge.
Some members of the Fed are sending mixed messages regarding tapering, adding an element of confusion to financial markets. On Friday, however, St. Louis Fed President James Bullard said that the U.S. central bank could taper its stimulus program during its October meeting, which sparked a round of profit-taking that sent gold prices falling.
However, on Monday, Federal Reserve Bank of New York President William Dudley said the stimulus program would stay in place until data show that recovery will be sustained.
"Our decisions on how to adjust our policy tools—for example, the pace of asset purchases and forward guidance with respect to the level of short-term rates—must be rooted in the ongoing flow of information that informs our judgments about the prospects for a sustainable recovery," said Dudley.
Uncertainty appears to be what is hampering gold at the moment, though may market participants are convinced tapering will happen before year-end with some expecting it will occur next month.
Elsewhere, Comex silver for December delivery fell 0.18% to USD21.818 while copper for December delivery dropped 0.42% to USD3.284.
Forex - Dollar edges higher versus yen
Investing.com - The dollar edged higher against the yen on Tuesday but
gains looked likely to remain limited after a senior Federal Reserve
official defended the central bank’s decision to keep its stimulus
program unchanged last week.
USD/JPY hit 99.00 during late Asian trade, the session high; the pair subsequently consolidated at 98.99, edging up 0.14%.
The pair was likely to find support at 98.44, the low of September 16 and resistance at 99.61, the high of September 19.
The dollar remained under pressure after New York Federal Reserve President William Dudley said Monday that the pace of the U.S. economic recovery remains insufficient for the bank to start scaling back its stimulus program.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Elsewhere, the yen was slightly lower against the euro, with EUR/JPY easing up 0.13% to 133.57.
Sentiment on the single currency remained fragile after European Central Bank President Mario Draghi said Monday the bank is ready to inject further liquidity into the region’s banking sector if needed, in order to safeguard the bloc’s recovery.
The comments came after data showed that manufacturing output in the euro zone was weaker than expected this month, but this was offset by an improvement in service sector activity.
USD/JPY hit 99.00 during late Asian trade, the session high; the pair subsequently consolidated at 98.99, edging up 0.14%.
The pair was likely to find support at 98.44, the low of September 16 and resistance at 99.61, the high of September 19.
The dollar remained under pressure after New York Federal Reserve President William Dudley said Monday that the pace of the U.S. economic recovery remains insufficient for the bank to start scaling back its stimulus program.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Elsewhere, the yen was slightly lower against the euro, with EUR/JPY easing up 0.13% to 133.57.
Sentiment on the single currency remained fragile after European Central Bank President Mario Draghi said Monday the bank is ready to inject further liquidity into the region’s banking sector if needed, in order to safeguard the bloc’s recovery.
The comments came after data showed that manufacturing output in the euro zone was weaker than expected this month, but this was offset by an improvement in service sector activity.
Forex - AUD/USD lower amid Fed uncertainty
Investing.com - The Australian dollar was lower against its U.S.
counterpart on Tuesday, but remained mildly supported as fresh
uncertainty over the future of the Federal Reserve's stimulus program
weighed on the greenback.
AUD/USD hit 0.9395 during late Asian trade, the session low; the pair subsequently consolidated at 0.9416, shedding 0.15%.
The pair was likely to find support at 0.9286, the low of September 17 and resistance at 0.9528, the high of September 18 and a three-month high.
The greenback remained under pressure after New York Federal Reserve President William Dudley defended the central bank’s decision to keep its stimulus program unchanged last week, in comments on Monday.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the scale of the bank’s bond buying program.
The Aussie was also lower against the euro with EUR/AUD adding 0.21%, to hit 1.4338.
Sentiment on the euro was fragile after European Central Bank President Mario Draghi said the ECB is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
Later in the day, the U.S. was to release private sector data on house price inflation, as well as a report on consumer confidence.
AUD/USD hit 0.9395 during late Asian trade, the session low; the pair subsequently consolidated at 0.9416, shedding 0.15%.
The pair was likely to find support at 0.9286, the low of September 17 and resistance at 0.9528, the high of September 18 and a three-month high.
The greenback remained under pressure after New York Federal Reserve President William Dudley defended the central bank’s decision to keep its stimulus program unchanged last week, in comments on Monday.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the scale of the bank’s bond buying program.
The Aussie was also lower against the euro with EUR/AUD adding 0.21%, to hit 1.4338.
Sentiment on the euro was fragile after European Central Bank President Mario Draghi said the ECB is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
Later in the day, the U.S. was to release private sector data on house price inflation, as well as a report on consumer confidence.
Monday, September 23, 2013
Forex - USD/JPY trades lower on conflicting tapering messages
Investing.com - The U.S. dollar traded lower against the Japanese yen
during Tuesday’s Asian session as the Federal Reserve is seen as sending
mixed messages about its intentions to taper its USD85 billion-a-month
bond-buying program.
In Asian trading Tuesday, USD/JPY fell 0.06% to 98.80 after earlier trading as low as 98.67. The pair was likely to find support at 97.77, Wednesday's low, and resistance at 99.67, Friday's high.
The Federal Reserve last week made no changes to its USD85 billion monthly bond-buying program, which weakens the dollar to spur recovery.
Many market participants were expecting the U.S. central bank to trim the total by USD10 billion or more now that the economy is gaining steam.
On Monday, Federal Reserve Bank of New York President William Dudley said the stimulus program would stay in place until data show that recovery will be sustained.
"Our decisions on how to adjust our policy tools—for example, the pace of asset purchases and forward guidance with respect to the level of short-term rates—must be rooted in the ongoing flow of information that informs our judgments about the prospects for a sustainable recovery," said Dudley.
Dudley’s comments conflict with those made by last Friday by St. Louis Fed President James Bullard who said Friday the decision not to taper in September was “close” and indicated that there could be a small reduction in bond purchases in October.
In times of uncertainty, investors prefer safe-haven plays, of which the yen is one. Lingering uncertainty about the future of tapering could force the dollar lower against the yen, a scenario yen bears do not favor.
Elsewhere, EUR/JPY inched down 0.05% to 133.34 while AUD/JPY fell 0.28% to 92.99.
In Asian trading Tuesday, USD/JPY fell 0.06% to 98.80 after earlier trading as low as 98.67. The pair was likely to find support at 97.77, Wednesday's low, and resistance at 99.67, Friday's high.
The Federal Reserve last week made no changes to its USD85 billion monthly bond-buying program, which weakens the dollar to spur recovery.
Many market participants were expecting the U.S. central bank to trim the total by USD10 billion or more now that the economy is gaining steam.
On Monday, Federal Reserve Bank of New York President William Dudley said the stimulus program would stay in place until data show that recovery will be sustained.
"Our decisions on how to adjust our policy tools—for example, the pace of asset purchases and forward guidance with respect to the level of short-term rates—must be rooted in the ongoing flow of information that informs our judgments about the prospects for a sustainable recovery," said Dudley.
Dudley’s comments conflict with those made by last Friday by St. Louis Fed President James Bullard who said Friday the decision not to taper in September was “close” and indicated that there could be a small reduction in bond purchases in October.
In times of uncertainty, investors prefer safe-haven plays, of which the yen is one. Lingering uncertainty about the future of tapering could force the dollar lower against the yen, a scenario yen bears do not favor.
Elsewhere, EUR/JPY inched down 0.05% to 133.34 while AUD/JPY fell 0.28% to 92.99.
Forex - EUR/USD rises after Merkel’s convincing win
nvesting.com - The Euro traded higher against the U.S. dollar during
Monday’s Asian session on news of German Chancellor Angela Merkel’s
convincing win in Germany’s national elections held Sunday.
In Asian trading Monday, EUR/USD rose 0.06% to 1.3531. The pair is likely to find support at 1.3475 and resistance at 1.3567, Thursday’s high.
Merkel’s Christian Democratic party took nearly 42% of the vote in Sunday’s national elections. Peer Steinbruek’s Social Democrats had 25.5% of the vote, according to projections unveiled on Sunday.
Forecasts had Merkel’s group with a one-seat majority in the lower house for only the second time since World War II after Konrad Adenauer in 1957, according to Bloomberg.
Merkel’s win is seen as a boon for financially challenged Eurozone members such as Greece because Merkel, much to the displeasure of many German citizens, has been supportive of helping PIIGS nations obtain bailout funds.
Although Merkel’s policies of helping the likes of Greece and Italy irked ordinary Germans, the election outcome indicates regular Germans opted more to focus on the country's low unemployment rate and Merkels’ likability, among other factors, in sending her to what amounted to most convincing win in a German national election in over two decades.
Next month, the European Central Bank, European Union and International Monetary Fund review Greece’s progress on reform measures and the IMF has recently said Greece could need another bailout sometime next year if critical funding gaps are not closed.
Later Monday, the euro zone is to release preliminary data on manufacturing and service sector activity. Germany and France are to produce individual reports.European Central Bank President Mario Draghi is to testify about the economy before the Committee on Economic and Monetary Affairs, in Brussels.
Elsewhere, EUR/JPY fell 0.20% to 134.11 while EUR/GBP lost 0.11% to 0.8440.
In Asian trading Monday, EUR/USD rose 0.06% to 1.3531. The pair is likely to find support at 1.3475 and resistance at 1.3567, Thursday’s high.
Merkel’s Christian Democratic party took nearly 42% of the vote in Sunday’s national elections. Peer Steinbruek’s Social Democrats had 25.5% of the vote, according to projections unveiled on Sunday.
Forecasts had Merkel’s group with a one-seat majority in the lower house for only the second time since World War II after Konrad Adenauer in 1957, according to Bloomberg.
Merkel’s win is seen as a boon for financially challenged Eurozone members such as Greece because Merkel, much to the displeasure of many German citizens, has been supportive of helping PIIGS nations obtain bailout funds.
Although Merkel’s policies of helping the likes of Greece and Italy irked ordinary Germans, the election outcome indicates regular Germans opted more to focus on the country's low unemployment rate and Merkels’ likability, among other factors, in sending her to what amounted to most convincing win in a German national election in over two decades.
Next month, the European Central Bank, European Union and International Monetary Fund review Greece’s progress on reform measures and the IMF has recently said Greece could need another bailout sometime next year if critical funding gaps are not closed.
Later Monday, the euro zone is to release preliminary data on manufacturing and service sector activity. Germany and France are to produce individual reports.European Central Bank President Mario Draghi is to testify about the economy before the Committee on Economic and Monetary Affairs, in Brussels.
Elsewhere, EUR/JPY fell 0.20% to 134.11 while EUR/GBP lost 0.11% to 0.8440.
Forex - GBP/USD trims gains, focus on Fed
Investing.com - The pound trimmed gains against the U.S. dollar on
Monday, but remained supported as fresh uncertainty over whether the
Federal Reserve will soon begin to taper its bond-buying program weighed
on demand for the greenback.
GBP/USD pulled away from 1.6072, the pair's highest since September 19, to hit 1.6031 during U.S. morning trade, still up 0.16%.
Cable was likely to find support at 1.5893, the low of September 18 and resistance at 1.6163, the high of September 18 and an eight-month high.
The dollar found some support after New York Federal Reserve President William Dudley defended the central bank’s decision to keep its stimulus program unchanged last week, in comments on Monday.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
“The economy still needs the support of a very accommodative monetary policy,” Dudley added.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program.
The decision surprised markets, which had been expecting a modest reduction to the scale of the bank’s bond buying program.
Sterling was higher against the euro with EUR/GBP retreating 0.38%, to hit 0.8416.
The euro came under pressure after Draghi said the European Central Bank is ready to launch a third round of Long Term Refinancing Operations if necessary. The comments came during testimony about the economy before the Committee on Economic and Monetary Affairs in Brussels.
Earlier Monday, data showed that manufacturing output in the euro zone was weaker than expected this month, but this was offset by an improvement in service sector activity.
The preliminary reading of the euro zone manufacturing purchasing managers’ index fell to 51.1 in September from a final reading of 51.4 in August. Analysts had expected the index to inch up to 51.8.
GBP/USD pulled away from 1.6072, the pair's highest since September 19, to hit 1.6031 during U.S. morning trade, still up 0.16%.
Cable was likely to find support at 1.5893, the low of September 18 and resistance at 1.6163, the high of September 18 and an eight-month high.
The dollar found some support after New York Federal Reserve President William Dudley defended the central bank’s decision to keep its stimulus program unchanged last week, in comments on Monday.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
“The economy still needs the support of a very accommodative monetary policy,” Dudley added.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program.
The decision surprised markets, which had been expecting a modest reduction to the scale of the bank’s bond buying program.
Sterling was higher against the euro with EUR/GBP retreating 0.38%, to hit 0.8416.
The euro came under pressure after Draghi said the European Central Bank is ready to launch a third round of Long Term Refinancing Operations if necessary. The comments came during testimony about the economy before the Committee on Economic and Monetary Affairs in Brussels.
Earlier Monday, data showed that manufacturing output in the euro zone was weaker than expected this month, but this was offset by an improvement in service sector activity.
The preliminary reading of the euro zone manufacturing purchasing managers’ index fell to 51.1 in September from a final reading of 51.4 in August. Analysts had expected the index to inch up to 51.8.
Natural gas futures fall to 1-week low on reduced demand outlook
Investing.com - Natural gas futures fell to a one-week low on Monday, as
forecasts showing mild temperatures across much of the U.S. through
late-September weighed on demand expectations.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.658 per million British thermal units during U.S. morning trade, down 0.8%.
The October contract fell by as much as 1.5% earlier in the session to hit a daily low of USD3.632 per million British thermal units, the weakest since September 16. The October contract settled 0.9% lower at USD3.687 per million British thermal units on Friday.
Meanwhile, the more actively traded contract for November delivery lost 0.8% to trade at USD3.734 per million British thermal units.
Nymex gas futures were likely to find support at USD3.627 per million British thermal units, the low from September 16 and resistance at USD3.809, the high from September 19.
Market players continued to monitor near-term weather forecasts to gauge the strength of demand for the fuel.
Updated weather forecasting models pointed to mostly normal to below-normal temperatures across most parts of the U.S. Northeast Midwest for the next ten days.
Bearish speculators are betting on the mild weather to reduce demand for the fuel with autumn’s low-demand shoulder season looming.
The shoulder season is the period in autumn when gas demand typically slackens and prices fall.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.299 trillion cubic feet as of last week, 0.5% above the five-year average for the same week and 5.4% below last year's unusually high level.
Early injection estimates for this week’s storage data range from 70 billion cubic feet to 80 billion cubic feet, compared to a 79 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 75 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November dropped 1.1% to trade at USD103.61 a barrel, while heating oil for October delivery declined 0.9% to trade at USD2.978 per gallon.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.658 per million British thermal units during U.S. morning trade, down 0.8%.
The October contract fell by as much as 1.5% earlier in the session to hit a daily low of USD3.632 per million British thermal units, the weakest since September 16. The October contract settled 0.9% lower at USD3.687 per million British thermal units on Friday.
Meanwhile, the more actively traded contract for November delivery lost 0.8% to trade at USD3.734 per million British thermal units.
Nymex gas futures were likely to find support at USD3.627 per million British thermal units, the low from September 16 and resistance at USD3.809, the high from September 19.
Market players continued to monitor near-term weather forecasts to gauge the strength of demand for the fuel.
Updated weather forecasting models pointed to mostly normal to below-normal temperatures across most parts of the U.S. Northeast Midwest for the next ten days.
Bearish speculators are betting on the mild weather to reduce demand for the fuel with autumn’s low-demand shoulder season looming.
The shoulder season is the period in autumn when gas demand typically slackens and prices fall.
Meanwhile, U.S. supply levels also remained in focus. Total U.S. natural gas storage stood at 3.299 trillion cubic feet as of last week, 0.5% above the five-year average for the same week and 5.4% below last year's unusually high level.
Early injection estimates for this week’s storage data range from 70 billion cubic feet to 80 billion cubic feet, compared to a 79 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 75 billion cubic feet.
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November dropped 1.1% to trade at USD103.61 a barrel, while heating oil for October delivery declined 0.9% to trade at USD2.978 per gallon.
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