Saturday, August 1, 2009
Rupee Up by 13 Paise Against Dollar
The Indian rupee strengthened by 13 paise in early trade today on expectations of fund inflows and weakness in the US currency against other Asian currencies.At the Interbank Foreign Exchange (Forex) market, the domestic unit appreciated by 13 paise to 48.21 a dollar. The rupee yesterday closed higher by 7 paise at 48.34/35 a dollar.Dealers said hopes of increased capital inflows by foreign funds in line with better trends in the other Asian equity markets and dollar's weakness against other currencies mainly supported the Indian rupee.However, sustained dollar demand from oil refiners for month-end requirements capped rupee's gains, they added.
NEW YORK (MarketWatch) -- Gold futures rose 2% Friday to end above $950 an ounce, as the U.S. dollar weakened after the release of U.S. gross-domestic
(RTTNews) - The euro edged higher against its lower-yielding rivals as a better-than-expected GDP report in the U.S. fueled hopes of an economic recovery.
The European currency added to recent gains against both the dollar and yen amid higher risk appeal. On the other hand, the euro hovered near a monthly low against the sterling.
On the economic front in the Eurozone, consumer price inflation stayed negative for the second month in July with the latest decline being the biggest on record, extending support to a low interest rate regime. Unemployment reached the highest level since June 1999 as more employers cut headcount in June.
The euro climbed above 1.4250 in mid-day trading against the dollar, moving within a cent of its 2009 high. The European currency slipped to a two-week low of 1.4006 earlier this week.
The U.S. Commerce Department revealed gross domestic product fell 1% in the second quarter. Economists had expected GDP to fall at a 1.5 percent pace. This follows a 6.4-percent contraction in the first quarter.
The euro was choppy against the sterling and moved near its overnight levels around 0.8530 in the early afternoon. The European currency lingered near a monthly low from yesterday.
The euro edged to a three-day high of 135.54 against the Japanese yen, extending the mild rally that began on Wednesday. If the European currency reaches above 136.08 it will reach a monthly high.
In Japan, the seasonally adjusted headline Nomura/JMMA Purchasing Managers' Index or PMI rose to 50.4 in July from 48.2 in the previous month, the first improvement for seventeen months. A PMI reading above 50 indicates expansion in the sector.
On the economic front in the Eurozone, a flash estimate from the European Union statistics office, Eurostat, revealed a 0.6% annual fall in consumer prices in July compared to a 0.1% drop in June. The decline in July was the biggest on record. Prices also dropped more than the expected 0.4%.
Inflation turned negative for the first time in June. The European Central Bank aims at inflation rates below, but close to 2% over the medium term.
Friday, the European Commission approved EUR100 million to Serbia as general budget support to help with the stabilization of the country and ease the economic and social consequences of the crisis.
The European currency added to recent gains against both the dollar and yen amid higher risk appeal. On the other hand, the euro hovered near a monthly low against the sterling.
On the economic front in the Eurozone, consumer price inflation stayed negative for the second month in July with the latest decline being the biggest on record, extending support to a low interest rate regime. Unemployment reached the highest level since June 1999 as more employers cut headcount in June.
The euro climbed above 1.4250 in mid-day trading against the dollar, moving within a cent of its 2009 high. The European currency slipped to a two-week low of 1.4006 earlier this week.
The U.S. Commerce Department revealed gross domestic product fell 1% in the second quarter. Economists had expected GDP to fall at a 1.5 percent pace. This follows a 6.4-percent contraction in the first quarter.
The euro was choppy against the sterling and moved near its overnight levels around 0.8530 in the early afternoon. The European currency lingered near a monthly low from yesterday.
The euro edged to a three-day high of 135.54 against the Japanese yen, extending the mild rally that began on Wednesday. If the European currency reaches above 136.08 it will reach a monthly high.
In Japan, the seasonally adjusted headline Nomura/JMMA Purchasing Managers' Index or PMI rose to 50.4 in July from 48.2 in the previous month, the first improvement for seventeen months. A PMI reading above 50 indicates expansion in the sector.
On the economic front in the Eurozone, a flash estimate from the European Union statistics office, Eurostat, revealed a 0.6% annual fall in consumer prices in July compared to a 0.1% drop in June. The decline in July was the biggest on record. Prices also dropped more than the expected 0.4%.
Inflation turned negative for the first time in June. The European Central Bank aims at inflation rates below, but close to 2% over the medium term.
Friday, the European Commission approved EUR100 million to Serbia as general budget support to help with the stabilization of the country and ease the economic and social consequences of the crisis.
Gold rises as dollar weakens after U.S. GDP data
NEW YORK (MarketWatch) -- Gold futures rose 2% Friday to end above $950 an ounce, as the U.S. dollar weakened after the release of U.S. gross-domestic-product data, raising gold's appeal as an alternative investment.
U.S. gross domestic product fell at a 1% annualized rate in the second quarter, smaller than economists had expected, the Commerce Department reported. The dollar remained lower against most of its rivals after the GDP data.
August gold futures rose $18.80, or 2%, to $953.70 an ounce on the Comex division of the New York Mercantile Exchange. It rose as high as $958.10 earlier but also fell to $932. The contract ended the week almost unchanged. Gold rose 2.8% in July.
U.S. gross domestic product fell at a 1% annualized rate in the second quarter, smaller than economists had expected, the Commerce Department reported. The dollar remained lower against most of its rivals after the GDP data.
August gold futures rose $18.80, or 2%, to $953.70 an ounce on the Comex division of the New York Mercantile Exchange. It rose as high as $958.10 earlier but also fell to $932. The contract ended the week almost unchanged. Gold rose 2.8% in July.
This is article is released weekdays under the heading "Daily Fundamentals" at 5pm EST on www.dailyfx.com
(RTTNews) - The dollar plummeted across the board versus major counterparts on Friday as traders expressed increased risk appetite after a report showed that the US economy contracted less than analysts were predicting.
The report fueled hopes that the world's biggest economy could lead the world out of the worst recession in decades, and sooner than once feared.
Traders had been hedging of late, refusing to go all-in on the prospect of a global recovery beginning by year's end. However, with stocks on the rise and a number of key indicators showing a faint pulse in the housing and labor markets, the dollar could be in for some big losses to higher-yielding counterparts.
Its already been a rough month for the dollar versus resource-linked currencies, and the euro and sterling joined the buck-bashing party on Friday.
The dollar tumbled to 1.4270 versus the euro, giving back all of its gains from earlier in the week. With the loss, the dollar moved within a penny of its 2009 lows.
The dollar plunged from a month-long trading range versus the sterling, slipping to a 4-week low of 1.6732 before finding support. Back in June, the dollar hit a 2009 low of 1.6744.
Even the yen battered the dollar on Friday. The buck slipped to 94.58 by mid-day after challenging a monthly high near 96 in the previous session.
Versus the loonie, the dollar dropped to C$1.0762, coming within a hair of Monday's 10-month low of C$1.0749. The U.S. economy continued to shrink in the second quarter, according to new government statistics released Friday, although the pace of contraction slowed by more than economists had been expecting.
The U.S. Commerce Department revealed that Gross Domestic Product, a closely watched measure of broad economic performance, fell at a pace of 1 percent for the second quarter. Economists had expected GDP to fall at a 1.5 percent rate.
And while the Institute for Supply Management - Chicago released a report on Friday showing a continued contraction in manufacturing activity in the month of July, the pace of contraction slowed by a little more than economists had been expecting.
North of the border, Canadian real gross domestic product (GDP) decreased 0.5% in May, a faster rate of decline than in the previous three months, according to data released Friday by Statistics Canada.
Economist were looking for GDP to fall 0.3% in May.
The report fueled hopes that the world's biggest economy could lead the world out of the worst recession in decades, and sooner than once feared.
Traders had been hedging of late, refusing to go all-in on the prospect of a global recovery beginning by year's end. However, with stocks on the rise and a number of key indicators showing a faint pulse in the housing and labor markets, the dollar could be in for some big losses to higher-yielding counterparts.
Its already been a rough month for the dollar versus resource-linked currencies, and the euro and sterling joined the buck-bashing party on Friday.
The dollar tumbled to 1.4270 versus the euro, giving back all of its gains from earlier in the week. With the loss, the dollar moved within a penny of its 2009 lows.
The dollar plunged from a month-long trading range versus the sterling, slipping to a 4-week low of 1.6732 before finding support. Back in June, the dollar hit a 2009 low of 1.6744.
Even the yen battered the dollar on Friday. The buck slipped to 94.58 by mid-day after challenging a monthly high near 96 in the previous session.
Versus the loonie, the dollar dropped to C$1.0762, coming within a hair of Monday's 10-month low of C$1.0749. The U.S. economy continued to shrink in the second quarter, according to new government statistics released Friday, although the pace of contraction slowed by more than economists had been expecting.
The U.S. Commerce Department revealed that Gross Domestic Product, a closely watched measure of broad economic performance, fell at a pace of 1 percent for the second quarter. Economists had expected GDP to fall at a 1.5 percent rate.
And while the Institute for Supply Management - Chicago released a report on Friday showing a continued contraction in manufacturing activity in the month of July, the pace of contraction slowed by a little more than economists had been expecting.
North of the border, Canadian real gross domestic product (GDP) decreased 0.5% in May, a faster rate of decline than in the previous three months, according to data released Friday by Statistics Canada.
Economist were looking for GDP to fall 0.3% in May.
Until Dollar Traders Take in the NFPs, the RBA, ECB and BoE will Guide the Market
This is article is released weekdays under the heading "Daily Fundamentals" at 5pm EST on www.dailyfx.comThere is a lot of data scheduled over the coming week; and much of it holds the kind of market moving impact that could trigger breakouts. This is fortunate for those that love volatility; because many of the majors are resting on major anti-dollar support levels. All these individual releases aside though, the dollar will be put on the spot light immediately upon the open of Monday's session in the Far East.
U.S. DOLLAR TANKS AS GDP REPORT SHOWS LESS CONTRACTION
The U.S. Dollar was hit hard on Friday. Traders aggressively sold the Dollar after the government reported a lower than estimated decline in 2nd Quarter GDP. Today’s number suggests that the U.S. economy is closer to a recovery. This triggered greater demand for higher yielding, higher risk assets.
The GBP USD was the big gainer today. A spike through 1.6585 turned the main trend to up on the daily chart and triggered a breakout rally. Currently this currency pair is in a position to challenge the June high at 1.6743. In addition to the weaker U.S. GDP number, traders are anticipating a change in the Bank of England’s asset buyback policy at next week’s central bank meeting.
Stronger appetite for risk also triggered a breakout rally in the EUR USD. For most of this week, this currency pair had been working on a possible weekly closing price reversal. Today’s rally exceeded a key retracement zone and also put this market higher for the week. The current upside momentum indicates that this market may be poised to test the high for the year at 1.4337 next week.
Weaker equity markets, and a report showing that the U.S. economy contracted less than estimated, put selling pressure on the USD JPY. This currency pair broke minor support at 94.95 to 94.72 during the day and never looked back. Downside momentum is building which could threaten the uptrend if 94.01 is violated.
The USD CAD tested the low for the week at 1.0748 and closed in a position to take it out next week. Today’s strong rally in the Canadian Dollar was triggered by signs of a recovery in the U.S. economy and higher crude oil. A break next week in the equity markets could limit losses to the downside.
Increased demand for higher yielding assets helped rally the AUD USD to a new high for the year. This move is likely to continue unless the equity markets begin a sizeable correction. It all depends on whether traders decide to follow the economic data or the movement in the U.S. equity markets.
The NZD USD recovered nicely following yesterday’s sell-off. Today’s upside reaction was due to a better than expected U.S. GDP Report. This market is either going to break out to the upside or form a secondary lower top. It all depends on which set of fundamentals traders decide to follow. Longer-term New Zealand Dollar traders may be focusing on bearish comments from the Reserve Bank of New Zealand which suggested that the central bank is not through cutting interest rates. Shorter-term traders may be concentrating on the possible improvement in the U.S. economy leading to greater demand for higher yielding assets.
Please do not hesitate to contact us at 1-800-971-2440, with any questions.
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from Brewer FX, LLC and Brewer Investment Group, LLC or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
The GBP USD was the big gainer today. A spike through 1.6585 turned the main trend to up on the daily chart and triggered a breakout rally. Currently this currency pair is in a position to challenge the June high at 1.6743. In addition to the weaker U.S. GDP number, traders are anticipating a change in the Bank of England’s asset buyback policy at next week’s central bank meeting.
Stronger appetite for risk also triggered a breakout rally in the EUR USD. For most of this week, this currency pair had been working on a possible weekly closing price reversal. Today’s rally exceeded a key retracement zone and also put this market higher for the week. The current upside momentum indicates that this market may be poised to test the high for the year at 1.4337 next week.
Weaker equity markets, and a report showing that the U.S. economy contracted less than estimated, put selling pressure on the USD JPY. This currency pair broke minor support at 94.95 to 94.72 during the day and never looked back. Downside momentum is building which could threaten the uptrend if 94.01 is violated.
The USD CAD tested the low for the week at 1.0748 and closed in a position to take it out next week. Today’s strong rally in the Canadian Dollar was triggered by signs of a recovery in the U.S. economy and higher crude oil. A break next week in the equity markets could limit losses to the downside.
Increased demand for higher yielding assets helped rally the AUD USD to a new high for the year. This move is likely to continue unless the equity markets begin a sizeable correction. It all depends on whether traders decide to follow the economic data or the movement in the U.S. equity markets.
The NZD USD recovered nicely following yesterday’s sell-off. Today’s upside reaction was due to a better than expected U.S. GDP Report. This market is either going to break out to the upside or form a secondary lower top. It all depends on which set of fundamentals traders decide to follow. Longer-term New Zealand Dollar traders may be focusing on bearish comments from the Reserve Bank of New Zealand which suggested that the central bank is not through cutting interest rates. Shorter-term traders may be concentrating on the possible improvement in the U.S. economy leading to greater demand for higher yielding assets.
Please do not hesitate to contact us at 1-800-971-2440, with any questions.
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from Brewer FX, LLC and Brewer Investment Group, LLC or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
31-07-2009 16:55 Interbank dollar drops by weekend
The National Bank appeared in the market with auction sale of the euro at 11 UAH/EUR. On July 30, interbank also closed with currency quotations down to 8.005-8.052 UAH/USD and 11.257-11.326 UAH/EUR. The NBU appeared in the market with a rate of 7.73-7.75 UAH/USD. Friday's average purchase rate of the cash US dollar at Ukrainian banks, compared to Thursday's, reduced by UAH 0.0346 to UAH 7.9466. The sale rate of the US dollar fell by UAH 0.0388 to UAH 8.1248. The average purchase rate of the euro reduced by UAH 0.0403 to UAH 11.1862, and sale rate by UAH 0.0676 to UAH 11.5172. The National Bank strengthened the official hryvnia for July 31 to 7.698 UAH/USD and 10.817999 UAH/EUR.
Subscribe to:
Posts (Atom)
