Daily Market News By FXNET

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Fundamental Analysis August 6
EUR/USD maneuvered by 34 focuses as dealers start to concentrate on developing financial and saving money issues in the eurozone. The euro tumbled to 1.3388 in front of Thursday's ECB meeting. Later in the day, the spotlight movements to ISM Non-Manufacturing Composite gage. Economists recommend the discharge will reveal to US benefit part development quickened to the speediest pace in 11 months in July.

GBP/USD rallied after a strong Services PMI print beat expectations pushing the pound to 1.6868 up by 7 points. The British currency strengthened against the other key counterparts in the early European session on Tuesday after data showed that U.K. services PMI rose more-than-expected in July.

AUD/USD fell below the 93 price level as the US dollar gained momentum this morning. The AUD gave up 5 points to trade at 0.9299. The Australian dollar is lower after US stocks lost almost one per cent on concerns that the conflict in Ukraine could worsen. Polish Foreign Minister Radoslaw Sikorski told reporters overnight that Russia had increased its military presence on the Ukraine border, suggesting a possible escalation in the conflict.

USD/JPY eased by 7 points as the JPY continued to gather momentum on safe haven trades after Russia moved troops closer to the Ukraine border and President Putin threatened sanctions against the West. Geopolitical tensions continue to raise sending traders to risk off mode.

Gold was a surprise and gained today adding $3.60 to trade at 1292.50 after the US dollar picked up momentum to climb to trade at 81.54 and silver fell. Gold held steady below $1,300 an ounce on Tuesday, although a strong dollar and the first outflow in more than a week from the world’s top bullion fund weighed on sentiment.

 

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Fundamental Analysis August 7
EUR/USD kept on decliing exchanging at 1.3369 after German production line requests missed desires. The euro slipped to a nine-month low on Wednesday, broadening its misfortunes after information demonstrated a sharp drop in German mechanical requests, while the New Zealand dollar took a hit after a fall in dairy costs. A Singapore-based dealer said financial specialist hazard revultion on worries about the strains in Ukraine served to reinforce the dollar extensively, and weighed on the euro.

GBP/USD eased 44 points to trade at 1.6842 after industrial and manufacturing production missed expectations following a drop in PMI last week. Businesses and taking on more staff, but a strong sterling is hurting exports. The Confederation of British Industry (CBI), the UK’s largest business lobbyist, said in its monthly SME manufacturing survey for July that 31% of firms reported output increasing, while 16% said that it decreased, giving a balance of +15%.

AUD/USD took a major fall after the release of unemployment numbers this morning tumbling to 0.9285 down 69 points when just last month traders were hoping to see the currency break 95. The unemployment rate has surged to a 12-year high in July as the number of Australians in jobs went backwards, adding to political pressure on the government.

USD/JPY tumbled on Wednesday to trade at 102.12 and recovered 7 points this morning to reach 102.19 after the greenback lost a bit of its momentum. US data remained positive with the trade balance narrowing well below forecasts as exports skyrocketed again this month. The Bank of Japan (BoJ) looks set to bring no major surprises at its policy meeting this week, but the market will be keeping an ear out for any changes in Governor Haruhiko Kuroda’s optimistic stance on the economy.

Gold was steady after climbing in the Asian session adding $6.50 to trade at 1291.80. Gold edged up slightly and could benefit from a bout of market risk aversion as fears of increasing military action along the Ukraine border put global equities under pressure. Geopolitical tensions in Ukraine and the Middle East have largely been responsible for gold’s 7 percent gain this year. Gold, often seen as alternative investment to riskier assets such as equities, could gain if stocks fall further.

 

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Fundamental Analysis August 8
EUR/USD moved by 3 focuses in front of today's ECB declaration. The national bank is relied upon to hold rates and approach. The firecrackers will come amid Mr. Draghi's question and answer session late in the exchanging day. ECB authorities have said quantitative maneuvering is a choice, however remarks by the bank's German unexpected propose the bar may be high.

GBP/USD is holding at 1.6844 ahead of the BoE announcement. Policy makers will keep their asset-purchase target at 375 billion pounds, and the benchmark interest rate has been at 0.5 percent since March 2009. “As the economy normalizes, Bank Rate will need to start to rise in order to achieve the inflation target,” Carney said in a speech in Glasgow, Scotland, on July 23. “But the MPC has no pre-set course and the timing of any increases in interest rates will be determined by the data.”

AUD/USD tumbled to trade at 0.9256 while the US dollar held strong, after President Obama announced airstrikes in Iraq surprising the world. There was little reaction to the Chinese trade balance which printed in the green at 47.30 billion against expectations of 27.00 billion, although imports tumbled leaving questions about the Chinese recovery.

USD/JPY gave up 29 points this morning to trade at 101.80 as the yen surged on safe haven buying after the Americans announced an air offensive against ISIS in Iraq. President Barack Obama authorizes the U.S. military to conduct airstrikes against Islamist forces as needed but says the nation would not send new ground troops there.

Gold gave back some of yesterday’s gains to trade at 1305.40. Gold held on to overnight gains above $1,300 on Thursday, trading near its highest in more than a week as fears of Russian military action against Ukraine and retaliation by Moscow over Western sanctions burnished gold’s appeal as a safe haven.

 

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Forex Daily Analysis - 11 Aug 2014

EUR/USD recouped and included 27 focuses today, as German exchange offset numbers missed desires yet sends out for surpassed imports helping giving a superior take a gander at the report. The US dollar pushed higher against the euro and the pound on Thursday after the European Central Bank and the Bank of England left their financial stances unaltered in strategy surveys.

GBP/USD eased by 23 points to trade at 1.6809 and looks to break into the 1.67 range but the US dollar continued to weaken as traders worry about the US entering the war in Iraq after President Obama approved air strikes against ISIS. The pound was weighed down by disappointing trade balance numbers along with worries about Scotland leaving the United Kingdom

AUD/USD gained 6 points to trade at 0.9282 against a strong dollar. Traders this morning are correcting an overreaction late last week when the Aussie tumbled on global stress and a mixed up Chinese trade balance print. Positive data from China over the weekend helped support the currency.

USD/JPY gained 12 points as the yen declined after lackluster data and a dovish BoJ monthly report. The pair moved to trade at 102.16. The Bank of Japan on Friday maintained record stimulus after recent production and export data highlighted weakness that could challenge Governor Haruhiko Kuroda’s push to stoke faster inflation.

Gold is holding on to early morning gains trading at 1318.50 as geopolitical tensions are the only market focus after President Obama approved air strikes in Iraq and war returned to Gaza. Spot gold prices rose this morning on increasing safe haven bids and gained more than half a percent amid rising tensions in Iraq and Ukraine. Prices turned positive on reports that U.S. President Barack Obama approved air strikes and emergency relief airdrops to help 40,000 religious minorities in Iraq, who are trapped on a mountaintop after threats by Islamic militants.

 

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Forex Daily Analysis - 13 Aug 2014

EUR/USD given way today after German information hit the ropes. The euro tumbled to exchange at a 9 month low, falling 45 focuses to exchange at 1.3338. The euro slid Tuesday after a droop in German monetary notion further powered stresses that the financial standoff with Russia over the clash in Ukraine is harming Europe's economy.german government obligation turned higher, while German shares falled behind a pickup in most local value markets.

GBP/USD eased by 8 points on the prospect of a disappointing UK jobs data to trade at 1.6778. BoE Governor Mark Carney will address the press after the inflation report, which is also going to be crucial for sterling. What follows is another important event – the second quarter GDP data, due on Friday. The UK claimant count is forecast to have dropped by 30,000 in July compared to the 36,300 drop recorded in June. Forecasters see the ILO unemployment rate for the three months to June at 6.4%, down from 6.5% in May.

AUD/USD eased by 3 points against the dollar rally. Strong data from Oz helped fight off the climbing US dollar. Australian house prices beat expectations along with the NAB business survey. The Australian dollar has stabilized following dramatic moves last week when the currency fell to two-month lows on the back of weaker-than-expected data and economic growth forecasts from the central bank.

USD/JPY climbed 13 points as traders moved away from safe haven trades leaving the JPY weak after a rash of disappointing economic data yesterday and last week as traders wait for the release on industrial production numbers. The US dollar surged 10 points in the morning session climbing to 81.61. On Monday, the US dollar rallied against the yen and euro after the unit plunged in the wake of last week’s announcement that Washington had authorized air strikes in Iraq.

Gold is moving between small gains and losses trading at 1311.60 but hugging the $1310 price level all day as geopolitical risks kept markets watchful. In Iraq, a new political crisis was brewing just days after Washington launched its first military action against insurgents from the Islamic State.

 

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Forex Daily Analysis - 14 Aug 2014

GBP/USD tumbled 103 focuses after remarks from Bank of England Governor to exchange at 1.6708 in the wake of hopping on better than anticipated employments information. The pound tumbled to a two-month low versus the dollar as merchants pushed back their desires for premium rate expands after the Bank of England cut its estimate for pay development. The British pound spiked quickly before tumbling.

AUD/USD added 13 points to trade at 0.9281 after a significant jump in consumer confidence. Weak economic data and a downbeat central bank statement dampened sentiment towards the Australian dollar recently, but one analyst told CNBC investors shouldn’t give up faith. The currency fell 2.6 percent from its July 1 year-to-date high of $0.9504 against the U.S. dollar to a two-month low of around $0.9236 last week amid rising unemployment and a weaker growth outlook.

USD/JPY gained 4 points to trade at 102.30 after Japanese GDP missed expectations. Gross domestic product shrunk by an annualized 6.8% in the three months ended June, Japan’s Cabinet Office said Wednesday. The result was actually better than the 7% contraction expected by economists. Government officials were more sanguine about Wednesday’s data. Economy Minister Akira Amari said the figure didn’t change the government’s outlook that the economy continues to improve steadily. He said the government would respond flexibly on the economy but added that he didn’t currently see a need to compile an additional budget.

Gold was directionless today, remaining flat in the Asian session and moving between small gains and losses during European trading to sell for 1310.20. The Federal Reserve is cutting debt purchases and contemplating interest-rate increases as the economy strengthens. The dollar was near a nine-month high versus the euro after data showed yesterday German investor confidence slumped and before a report today that may show U.S. retail sales increased for a sixth month.

 

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Fundamental Analysis August 15
EUR/USD recuperated 27 focuses to exchange at 1.3391 after a large number of blended information and a confounded ECB month to month report. The dollar gave back increases the greater part of the morning to trade at 81.53. Euro zone swelling will be weaker than long ago expected in the not so distant future and next, an overhauled review for the European Central Bank showed today, obscuring the euro zone's monetary standpoint.

GBP/USD is flat today holding at 1.6691 after disappointing inflation information and comments from the central bank on Wednesday. The BoE lowered its growth estimate for U.K. wages to 1.25% for the year, down from 2.5%, or half of the previous estimate; 2015 wage growth estimates were also revised downward.

AUD/USD eased by 8 points to trade at 0.9298 after iron ore prices tumbled to their weakest this month weighing on the Aussie. Earlier in June, the iron ore price dropped to as low as $US89 a ton, but despite a minor rebound since then year-to-date falls are still over 30 per cent. The latest downward move comes amid continued oversupply in the market due to increased supply from heavyweights like BHP Billiton and Rio Tinto and softer demand from China.

USD/JPY continued to rise as the US dollar gained momentum as traders overlooked weak US data but focused on a significant drop in Japanese GDP. The USDJPY is trading at 102.60 up by 17 points this morning. The Japanese Yen traded on a negative note and depreciated around 0.2 percent yesterday on the back of expectation that global policy makers will keep borrowing costs low for longer, damping demand for haven assets. The Yen touched an intra-day low of 102.36.Japan’s Core Machinery Orders gained 8.8 percent in June as against a fall of 19.5 percent in June.

Gold is moving between small gains and losses holding at 1315.80. Gold consumption fell by an annualized 16 percent in the second quarter of 2014 as Chinese and Indian buyers cut back on record purchases a year earlier, sector data showed.

 

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Fundamental Analysis August 22
EUR/USD gained 8 points as traders breathed a sigh of relief when PMI numbers were not as bad as expected. The US dollar gave back some early gains but remains strong at 82.29. Data from Germany eased pressure on the struggling euro today after speculation of an earlier rate rise from the Federal Reserve had pushed the dollar to an 11-month high. Share markets had been feeling flat following a disappointing survey on Chinese manufacturing overnight but they too got a lift from the news that Germany’s private sector grew for a 16th month running in August.

GBP/USD is trading at 1.6588 down just 6 points after a strong retail sales release. The pound, down more than six cents in the past month, had gained a foothold on Wednesday after minutes from the Bank of England’s own last policy meeting showed the first dissenting votes on its policy committee for a rise in interest rates. But a similarly hawkish message from the Fed sent the dollar higher across the board after UK markets closed, driving the pound to less than $1.66 for the first time since early April.

AUD/USD lost 6 points to trade below 93 touching 0.9296 after a speech from RBA Governor Stevens. In Australia, the Reserve Bank Governor gave testimony to the House of Representatives Economics committee. In the US, weekly mortgage finance data is released with the minutes of the last Federal Reserve meeting.

Gold tumbled $13.60 to trade at 1281.60 as traders moved to more profitable assets. Gold extended losses to a fifth session on Thursday, dropping to a two-week low after the US dollar strengthened on indications from the US Federal Reserve that it could raise interest rates sooner than expected. A surprisingly strong recovery in the US job market could lead the Fed to raise interest rates earlier than it had been anticipating, minutes from the Fed’s July meeting showed, although most officials wanted further evidence before changing their view.

 

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Aussie and Kiwi Fall to 1-Week Lows against Greenback

NZ trade surplus increases in February

The Aussie and kiwi hit their one-week low against the dollar this Thursday, in spite of New Zealand trade figures, while US rate hike expectations for April kept supporting the greenback.

In the meantime, NZD/USD slid 0.36% to 0.6679, hitting its lowest point since March 16.

Earlier Wednesday, Statistics New Zealand stated that the trade surplus in February increased to NZ$339 million from NZ$13 million in January, whose figure was revised from a previous reading of NZ$8 million.

The trade surplus was thought to expand to NZ$50 million the previous month.

Furthermore, AUD/USD fell 0.64% to trade at 0.7486, the lowest level reached since March 16.

The greenback stayed supported following Philadelphia’s Fed President’s speech on Tuesday, with reference to the US central bank raising interest rates next month if the US economy keeps improving.

Chicago Fed President stated that he expects two more rate hikes before the end of 2016, whether the economy stays on course or not.

A day later, Atlanta Fed Reserve President hinted that the Fed will probably increase interest rates in April.

The US dollar index, which measures the greenback’s strength against a basket of six other currencies, was up 0.26% at 96.32, the highest it reached since March 16.

 

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Dollar Rises Against Yen, Fed Comments will be in Focus

Investors anticipate releases to predict rate hike possibility

The dollar was stronger against the yen this Monday, following its rebound the past week after receiving comments from Fed officials who supported the idea of raising interest rates.

The greenback recovered from falling earlier in March when the Fed decided to deliver two instead of four rate hikes in 2016.

US economic indicators, which will be released this week including non-farm payrolls and manufacturing PMI, will give market participants a chance to determine whether the economy is strong enough to handle more rate hikes this year.

Other US data that could affect the dollar this week include the core personal consumption expenditures price (PCE) index, to be released on Monday and Thursday’s Chicago purchasing management index (PMI).

Chief Japan FX strategist at Bank of America Merrill Lynch in Tokyo said "Statements by the Fed's Yellen and Dudley will also be in focus. They are core Fed board members and dollar will be supported if they express hawkish views".

Fed Chair Janet Yellen’s speech will take place on Tuesday and New York Fed President William Dudley’s on Thursday.

USD/JPY added 0.42 percent to 113.59; it had gained 1.4 against the yen the previous week, recovering from a 17-month low of 110.67. A few investors said that the dollar’s gains versus the yen could be limited in the near term.

According to Shinji Kureda, head of FX trading group for Sumitomo Mitsui Banking Corporation in Tokyo, Janet Yellen’s speech won’t sound as hawkish as the recent statements from other Fed officials and be more in line with what came out of the Fed’s recent policy meeting.

Furthermore, Kureda said that investors appear to have become more cautious about taking on foreign exchange risk after the launch of negative interest rates.

EUR/USD was almost unchanged at 1.1170 after a loss of 0.9% the past week.

AUD/USD added 0.4 percent to 0.7537 and NZD/USD added 0.10 percent to 0.6702.

The US dollar index, which measures the dollar’s value against a basket of six other major currencies reached a high of 96.399 earlier this Monday, the highest it reached since March 16.

 

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Australian Dollar Remains Steady, New Zealand Dollar Stronger

Janet Yellen’s speech remains in focus

The Aussie remained steady against the dollar this Tuesday, as the kiwi grew stronger while market players processed last session’s US economic reports and focused on Fed’s Chair Janet Yellen’s speech due later Tuesday.

AUD/USD was slightly changed at 0.7545, NZD/USD surged 0.28% to trade at 0.6743.

The US Commerce Department report on Monday showed that personal spending moved up 0.1% in February, in accordance with economists’ expectations.

There has been a 0.2% rise in personal income, above forecasts for a 0.1% gain.

The Federal Reserve’s preferred inflation measure, declined 0.1% the previous month because of lower energy costs.

The PCE index moved up 1% on an annual basis, lower than its 1.2% increase in January.

In spite of the tightening labor market, the Fed may increase rates only gradually in 2016, data suggested.

During early trading USD/JPY added 0.17% to 113.64. Japanese household spending for February added 1.2 percent, while annually it fell 1.5 percent. Unemployment was up 3.3% and retail sales added 0.5% for February and 1.7% year on year.

During early Asian trading the euro was steady at 1.1194 dollars, after adding about 0.3 percent against the greenback following six days of losses.

Investors are waiting for Janet Yellen’s speech on Tuesday, for new indications regarding interest rates.

The US dollar index, which measures the greenback’s strength versus a basket of six other major currencies, was up 0.10% at 96.09, not far from Monday’s one-week high of 96.42.

 

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Gold Prices Hold Above One Month Low Ahead of Yellen's Speech

Prices still on an upward trend for the year so far

With investors looking ahead to Federal Reserve Chair Janet Yellen’s speech gold prices were seen slightly lower on Tuesday but still holding above one month lows.

US gold futures for June delivery lost 0.11 percent to 1,220.7 dollars an ounce on the Comex of the New York Mercantile Exchange. Gold feel to a one month low of 1,207.83 dollars on Monday then recovered to 1,221.46 dollars.

Prices were under pressure from expectations that the Fed might raise interest rates in the near future, which would help the dollar go up and make gold prices less attractive to foreign investors.

The possibility of a rate hike was supported by data released from the US Commerce Department showing that Personal spending added 0.1 percent in February as expected, while inflation as measured by the PCE index (the Fed’s preferred inflation measure) was 0.1 percent lower in February, and on 1 percent up annually.

Gold prices have been supported by investors’ choice of safe havens amid unstable global economic conditions. The precious metal has gained 15 percent since the start of the year.

Elsewhere on the Comex silver futures for May delivery lost 0.46 percent to 15.12 dollars an ounce, while Copper for May lost 1.2 percent to 2.219 dollars a pound.

 

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Oil Prices Hit Two Week Lows

EIA report weighs on prices

On Thursday oil prices fell to more than two week lows, as EIA stockpile numbers highlighted the persisting supply glut which has been weighing down on oil prices.

Brent Crude futures lost 45 cents falling to 38.81 dollars a barrel from 5:18 GMT, 12 cents higher than its previous session during which it hit a high of 40.61.

Prices were pressured by a higher dollar as the dollar index was seen at 94.931.

The US Energy Information Administration (EIA) released its reports on Wednesday showing that US Crude stockpiles were 2.3 million barrels higher reaching 534.8 million barrels in the week ending March 25th.

Despite the negative outcome of the report, it was still lower than analyst expectations of a 3.3 million barrel increase.

Refinery crude runs added 414,000 barrels per day and refinery utilization rates added 2 percentage points to 90.4 percent.

Crude prices which have added about 50 percent since mid-February have started losing momentum this past week. “Oil prices will trend down again …. $35 a barrel will be the support level. Low prices are not sustainable in the long run” Tony Nunan, an oil risk manager at Japan’s Mitsubishi Corp said, “anytime prices get close to $45-$50 a barrel, funds that have taken long positions are likely to take profits. Unless things really ignite the global economy, then people will sell off at that level”.

The market is looking ahead to the April 17th meeting between OPEC (Organization of Petroleum Exporting Countries) and non OPEC countries in Qatari capital Doha, to discuss a possible production freeze to help maintain prices

 

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Aussie Recovers as Trade Balance Widens

Dollar holds amidst rate hike speculations

The Australian dollar recovered on Tuesday, while the central bank remained steady in expectation for new labor data for a better economy assessment.

AUD/USD traded at 0.7614, up 0.11%. The Australian trade balance for February expanded to a deficit of.41 billion Australian dollars, compared to a previously estimated deficit of 2.6 billion Australian dollars. Imports were flat as exports fell 1%.

USD/JPY switched hands at 110.89, falling 0.40%, as the Governor of the Bank of Japan’s statements regarding bond buying affected the market.

Japan reported that average cash earnings rose 0.9% in February annually, higher than the previously estimated 0.2% gain, as overtime pay moved up 0.40% which is an improvement from a 1.3% annual decrease.

Data showing a February decline on US factory orders and statements from a Fed official causing speculation on additional policy tightening in 2016 held the dollar steady against other major currencies Monday overnight.

Chicago Federal Reserve President Charles Evans stressed his view that the US economy can take two more rate hikes in 2016, “A very shallow funds rate path, such as the one envisioned by the median FOMC (Federal Open Market Committee) participant, is appropriate” he said in remarks prepared for a speech in Hong Kong.

On the other hand Boston Fed president Eric S. Rosengren said that he felt the market was mistaken in its expectations for only zero to one rate increases in 2016.

Elsewhere the US Census Bureau stated that factory orders declined by 1.7% the previous month, meeting expectations. Factory orders increased 1.2% in January, compared to an initial estimate of a 1.6% rise.

The US dollar index, which measures the greenback’s strength versus a basket of six other major currencies, was down 0.04% to 94.55.

 

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Aussie Rises vs Dollar, Kiwi Remains Steady

Investors focus on Fed minutes

The aussie was stronger against the dollar on Wednesday, as the kiwi remained steady while market participants focused on the minutes of the Federal Reserve’s March meeting, for news on the future path of interest rates, which will be released later today.

AUD/USD moved up 0.24% trading at 0.7562.

The greenback found support following the Institute of Supply Management’s report on Tuesday showing that its non-manufacturing manager’s index increasing to 54.5 from 53.4 the previous month.

Gains on the other hand were limited when data showed that the US trade deficit expanded to $47.06 billion in February from $45.88 billion in January.

NZD/USD slightly changed at 0.6811.

Commodity currencies found support as oil prices recovered late Tuesday after hitting one-month lows.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.15% at 94.76.

 

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Dollar Stronger versus Yen and Euro

Yellen backs Interest Rate Hike

The dollar was stronger on Friday following positive job reports and a weaker yen.

Europe’s shared currency lost 0.1 percent against the dollar falling to 1.1366 dollars after reaching its highest level since October of 2016 at 1.1454 on Thursday.

The US dollar was supported by the Labour Department’s report showing that initial claims for state unemployment benefits were lower by 9,000 last week, to a seasonally adjusted 267,000 for the week ending April 2nd. Expectations had been on benefits dropping to 270,000.

Unemployment has been blow 300,000 – the threshold which separates between a healthy and unhealthy economy – for 57 weeks, the longest continuous time since 1973.

"The persistently low level of claims should provide some reassurance that the economy is growing, even if that growth still appears more sluggish than most would have hoped a few months ago” said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Michigan.

The market is still on watch for the possibility of more rate hikes and their timing, Fed Chair Janet Yellen has said that the economy can’t take many hikes this year due to faltering global economy which can threaten the US economy, the US market however is starting to show signs of improvement which could support more hikes.

“The labour market is on a solid footing. Layoffs are low, hiring is good, and workers who do lose their jobs are finding new ones quickly”, said Gus Faucher, deputy chief economist in Pittsburgh.

On Thursday Yellen took the stage in New York with the two previous Fed Chairs, Ben Bernanke and Paul Volcker who appeared together for the first time at a New York non-profit residence for students.

“The US economy has continued to progress in a satisfactory way. We continue to see good job performance, some evidence of inflation moving up, so that was our expectation when we raised rates in December” she said, “So yes, there is accommodation in the monetary policy that we have. But we think the gradual path of rate increases will be appropriate… we remain on a reasonable path and I don’t think December was a mistake”.

In December the Fed raised its rates for the first time in almost a decade.

The US dollar saw gains against the yen after Japanese Finance Minister Taro Aso said that rapid forex moves are not helping and yen moves are one sided hence Japan would take steps to improve the situation. Following the statement the yen fell against the US dollar by 0.4 percent with the dollar trading at 108.67 yen, after the dollar fell to its weakest level since October of 2014 at 107.57.

“More aggressive jawboning will be the near term option to maintain USD/JPY above 105” said ING strategists.

The yen fell against the euro by 0.3 percent with the euro trading at 123.47 yen, and is expected to lose up to 2.9 percent for the week.

The US dollar index which measures the greenback against a basket of six major currencies added 0.1 percent to 94.579.

 

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Yen Retreats from Monday’s Rally

Aussie and Kiwi higher than greenback

After reaching its two year high against the greenback on Monday the Japanese yen lost some momentum on Tuesday following comments from Japan’s policymakers, while the Aussie and Kiwi gained against their US counterpart.

USD/JPY added 0.20 percent on Tuesday trading at 108.16. On Monday USD/JPY had fallen to 107.65, its weakest since October of 2014. Last week alone the US dollar lost 3.2 percent against the yen in the previous week, and for the year 10 percent.

Japan’s Chief Cabinet Secretary Yoshihide Suga said that the government was monitoring the Forex market and that moves in the yen are one sided and speculative. There aren’t any expectations for the government to intervene in its currency’s movements before the G20 meetings in Washington.

Elsewhere the Australian dollar was boosted by positive news releases; the National Australian Bank showed that its business confidence index went up to 6 in March from 3 in February, and the business survey went up to plus -12 in March from plus -8 in February.

AUD/USD added 0.33 percent to a one week high of 0.7620. NZD/USD added 0.22 percent reaching its highest level in a little over a week at 0.6873.

The greenback remained under pressure of speculations about interest rate hikes that could take place this year.

The US dollar index which measures the greenback against a basket of six other major currencies was steady at 94.01.

 

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Oil Prices Dip Ahead of API Report

Possible production freeze continues to support market

Oil prices were lower on Tuesday as markets looked ahead to US stockpile numbers that will be released by the American Petroleum Institute (API).

Crude oil for May delivery lost 0.27 percent on the New York Mercantile Exchange trading at 40.42 dollars a barrel, while Brent crude lost 0.30 percent falling to 42.70 dollars a barrel.

The API will be releasing its stockpile estimates for crude, gasoline and distillates up to the end of last week, while on Wednesday more accurate numbers will be released by the US Energy Information Administration (EIA).

Oil was supported earlier by comments from Russian Energy Minister Alexander Novak who said that Russian oil production will remain flat in 2017 when markets had expected production would be increased in 2016.

The minister had remained positive about the April 17th meeting in Doha between major oil producers, ?Of course, we hope [for a deal]? Novak told reporters, ?otherwise we would have not discussed this issue? a freeze at January levels is being discussed, but other proposals could be made? he said.

Iran continues to reject freezing its output at January levels as suggested, which would be 2.93 million barrels per day, when the country aims to reach pre-sanction levels.

A possible production freeze has helped oil prices recover from 12 year lows hit in February as the oversupplied market found some hope for production to be lowered in order to regain higher prices.

Last week industry group Baker Hughes reported that US oil rigs were lower by 8 and at 354 last week, while in the week ended April 1st US stockpiles fell by 4.9 million barrels.

 

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Gold Prices Drop on Thursday

Chinese data affects markets

Gold was weaker in Asian trade this Thursday, as investors remained cautious ahead of the Federal Reserve’s review regarding rates later this month.

Gold for June delivery lost 1.07% on the Comex division of the New York Mercantile Exchange (NYMEX), trading at $1,234.90 a troy ounce.

Gold fell sharply overnight on Wednesday following excellent Chinese data which eased concerns over the slowdown of the country’s economy which has been having a global impact. The precious metal’s descent was also affected by a stronger dollar which makes the commodity more expensive to foreign investors and therefore less attractive.

Chinese exports were higher by 11.5% year on year for March much higher than expectations of a 2.5% increase.

The US dollar was also boosted by the Chinese trade data adding more than 0.75 percent on Wednesday reaching a high of 94.82 on the day.

The US dollar index which measures the greenback against a basket of major currencies was higher by 0.20% at 95.00.

Elsewhere on the Comex silver futures for May lost 1.41% to 16.095 dollars a troy ounce, and copper futures lost 0.28% to 2.164 dollars a pound.

 

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Aussie Gains on Positive Job Reports

Currency commodities remain affected by oil prices

The Aussie was stronger versus the dollar on Thursday, following the release of positive Australian employment data as the kiwi fell more than 1% due to sentiment improvement on the greenback.

NZD/USD fell 1.05%, trading at 0.6847, while AUD/USD moved up 0.10% to 0.7661.

According to the Australian Bureau of Statistics, the amount of employed people in March increased by 26,100 instead of the expected 20,000 increase. In February the number of employed people fell by 700, in contrast to a previous estimate of a 300 gain.

The report showed that Australia’s unemployment rate fell by 5.7% in March from 5.8% in February, instead of meeting expectations of reaching 5.9%.

Sentiment on the greenback was improved following Wednesday’s positive Chinese trade data, which lessened concerns regarding the outlook for worldwide economic growth.

Furthermore, official data showed that Chinese exports rose 11.5% from a year earlier in March which was the first rise since last June.

For the time being, commodity currencies stayed under pressure while oil prices kept declining for a second day.

Earlier Thursday, OPEC warned of slowing demand as Russia stated that there will be minor commitments at the upcoming meeting in Doha, Qatar next Sunday.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.20% at 95.00, the highest level reached since April 6.