Forex News from InstaForex

[IFX Gertrude]

OPEC, Russia discuss likely joint action on supply glut



Senior OPEC and Russian officials talked over a potential joint act to resolve one of the worst supply gluts in decades. But Saudi Arabia implied its stance to letting the oil market rebalance itself. OPEC Secretary General Abdalla El-Badri said other producers should cooperate in order to settle oversupply for prices to recuperate. The Organization of the Petroleum Exporting Countries previously said it would only consider reducing output if others pledge to do so. So far, Russia has refused to collaborate, saying its fields and weather conditions are not similar to those in the Gulf region even as prices below $30 a barrel are way below what they need to break even.

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[IFX Gertrude]

Federal Reserve leaves rates unchanged, accounts market selloff



The Federal Reserve, acknowledging a stock market selloff, kept interest rates unchanged and would closely monitor global economic and financial improvements, saying it cannot afford to ditch a plan to tighten this year's monetary policy. The decision by the Federal Open Market Committee was widely anticipated following stock markets in the United States and around the globe sustained month-long plunge, raising concerns a sudden global slowdown could dent US growth. In a statement, policymakers, after their two-day meeting, will be looking into the effects of global economic and financial growths in inflation and job market.

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[IFX Gertrude]

Singapore Employment Logs Slowest Growth Since 2003



Singapore's employment increased at the slowest annual pace in 12 years on sluggish global economic conditions and weak performance of city-state economy, data published by the Ministry of Manpower showed Thursday. Total employment advanced 31,800 or 0.9 percent in 2015, which was the weakest expansion since 2003. In the fourth quarter, total employment grew 15,500 from the previous quarter when it rose 12,600. The ministry said total employment growth has moderated amidst weaker economic conditions and tightened supply of foreign manpower. Further, data showed that local employment increased marginally by an estimated 100 or zero percent in 2015, after growing strongly by 96,000 in 2014. Meanwhile, foreign employment, excluding foreign domestic workers, continued to grow at a moderate pace of an estimated 22,600, or 2 percent in 2015. The jobless rate slid to 1.9 percent in December quarter from 2 percent in September quarter. It was forecast to remain at 2 percent. For the whole of 2015, the annual average unemployment rate was broadly unchanged since 2011, at 1.9 percent.

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[IFX Gertrude]

New Zealand Money Supply Growth Slows In December



New Zealand's money supply growth eased in December after accelerating in the prior month, figures from the Reserve Bank of New Zealand showed Friday. The broad money supply, or M3, climbed at a slower pace of 8.1 percent year-over-year to NZ$305,985 billion in December, following a 8.4 percent hike in November. In the same month of the preceding year, the rate of increase was 6.3 percent. At the same time, the annual growth in intermediate money supply, or M2, quickened to 14.2 percent in December from 13.7 a month earlier.

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[IFX Gertrude]

Facebook glides Wall Street higher



The Wall Street soared as Facebook Inc.'s stellar quarterly report bolstered tech stocks higher and a leap in oil prices lifted up the energy sector. The social media company shares surged 15.5%, its largest one-day bounce since 2013, as digital advertising soared 52% in fourth quarter revenue. The S&P tech sector rose 1.48% as Alphabet advanced 4.28%. The S&P energy sector climbed 3.15% as oil prices increased almost 3%. Earnings from Facebook and other companies, as well as oil prices rebound were the forces behind most of the day's improved sentiment. But investors cautioned the accelerations could be short-lived.

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[IFX Gertrude]

China PMI narrows than projected in January



China's manufacturing sector activity constricted more than predicted in January, weaker than the preceding month. Official figures showed Purchasing Managers' Index settled at 49.4 last month from 49.7 in December. Chinese economic growth skidded to 6.9% in the past year, its slowest expansion in 25 years, pressuring policymakers to renew confidence of traders in the country.

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[IFX Gertrude]

Commodity Currencies Slide As China Manufacturing PMI Disappoints



Commodity currencies such as the Australian, the New Zealand and the Canadian dollars weakened against their major counterparts in the Asian session on Monday, after data showed that the manufacturing sector in China continued to contract in January. Data from the National Bureau of Statistics showed that the manufacturing sector in China continued to contract in January, and at a faster rate, with a PMI score of 49.4. That was shy of forecasts for 49.6, and was down from 49.7 in December. The government also said that its non-manufacturing PMI came in at 53.5 in January, down from 54.4 in the previous month but still safely in expansion territory. The results of a private survey released by Caixin showed that the manufacturing sector in China continued to contract in January, although at a slower pace, with a PMI score of 48.4. That topped forecasts for a reading of 48.1, and was also up from 48.2 in December. In other economic news, data from the Australian Industry Group showed that the manufacturing sector in Australia continued to expand in January, albeit at a slightly slower pace, with a PMI score of 51.5. That's down from 51.9 in December. In all, the index has expanded in seven straight months. Last Friday, the Australian dollar rose 0.18 percent against the U.S. dollar, 1.83 percent against the yen and 0.99 percent against the euro. The NZ dollar rose 0.44 percent against the U.S. dollar, 2.10 percent against the yen and 1.09 percent against the euro. The Canadian dollar rose 1.93 percent against the yen and 1.41 percent against the euro. Meanwhile, the Canadian dollar held steady against the greenback. In the Asian trading, the Australian dollar fell to a 6-day low of 0.9861 against the Canadian dollar and a 4-day low of 0.7042 against the U.S. dollar, from Friday's closing quotes of 0.9892 and 0.7082, respectively. If the aussie extends its downtrend, it is likely to find support around 0.97 against the loonie and 0.69 against the greenback. Against the yen and the euro, the aussie dropped to 85.31 and 1.5388 from last week's closing quotes of 85.79 and 1.5285, respectively. The aussie may test support near 81.00 against the yen and 1.59 against the euro. Meanwhile, the aussie slipped to 1.0901 against the NZ dollar, from Friday's closing value of 1.0914 and held steady thereafter. The NZ dollar fell to a 4-day low of 0.6449 against the U.S. dollar, from Friday's closing value of 0.6478. If the kiwi extends its downtrend, it is likely to find support around the 0.63 area. Against the yen and the euro, the kiwi edged down to 78.12 and 1.6802 from last week's closing value of 78.49 and 1.6691, respectively. The kiwi may test support near 74.00 against the yen and 1.62 against the euro. The Canadian dollar dropped to 1.5204 against the euro and 1.4013 against the U.S. dollar, from an early near 4-week high of 1.5111 and a 4-day high of 1.3966, respectively. The loonie may test support 1.56 near against the euro and 1.44 against the greenback. Against the yen, the loonie edged down to 86.48 from an early high of 86.92. If the loonie extends its downtrend, it is likely to find support around the 82.00 area. Looking ahead, final manufacturing PMI reports from major European economies for January and U.K. mortgage approvals data for December are due to be released later in the day. In the New York session, U.S. personal income and spending data for December, U.S. construction spending for December and U.S. and Canada's flash manufacturing PMI for January are slated for release. At 11:00 am ET, European Central Bank President Mario Draghi will testify about the 2015 ECB Annual Report before the European Parliament, in Strasbourg. Federal Reserve Governor Stanley Fischer is scheduled to speak about the U.S. economy and monetary policy at the Council on Foreign Relations in New York at 1 pm ET.

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[IFX Gertrude]

Yen Rises Against Majors



The Japanese yen strengthened against the other major currencies in the Asian session on Thursday. The yen rose to more than a 2-year high of 163.84 against the pound and a 16-month high of 112.53 against the U.S. dollar, from yesterday's closing quotes of 164.56 and 113.32, respectively. Against the euro, the Swiss franc and the Canadian dollar, the yen advanced to 3-week highs of 127.35, 115.93 and 80.89 from yesterday's closing quotes of 127.96, 116.39 and 81.35, respectively. Against the Australian and the New Zealand dollars, the yen climbed to 2-day highs of 80.17 and 75.36 from yesterday's closing quotes of 80.38 and 75.73, respectively. If the yen extends its uptrend, it is likely to find resistance around 162.00 against the pound, 111.00 against the greenback, 126.00 against the euro, 114.00 against the franc, 78.00 against the loonie, 79.00 against the aussie and 73.00 against the kiwi.

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[IFX Gertrude]

Japan GDP Slides 1.4% On Year In Q4



Japan's gross domestic product contracted an annualized 1.4 percent on year in the fourth quarter of 2015, the Cabinet Office said in Monday's preliminary reading. That missed forecasts for a decline of 0.8 percent following the upwardly revised 1.3 percent increase in the third quarter (originally 1.0 percent). On a quarterly basis, GDP was down 0.4 percent - also shy of expectations for a decline of 0.2 percent following the 0.3 percent gain in the three months prior. Nominal GDP slipped 0.3 percent on quarter versus expectations for a fall of 0.1 percent following the upwardly revised 0.6 percent increase in the previous three months (originally 0.4 percent). The GDP deflator advanced 1.5 percent on year - also beneath forecasts for 1.6 percent and down from 1.8 percent in the third quarter. Private consumption tumbled 0.8 percent on quarter versus forecasts for a fall of 0.6 percent after gaining 0.4 percent in the previous three months. Capital expenditure gained 1.4 percent on quarter - topping expectations for a decline of 0.2 percent and accelerating from the 0.7 percent increase in the three months prior. Domestic demand shaved 0.5 percentage points from GDP growth, while net exports added 0.1 point.

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[IFX Gertrude]

South Korea Money Supply Growth Eases Further



South Korea's money supply growth slowed for the third straight month in December, preliminary figures from the Bank of Korea showed Monday. M2, a broad measure of money supply, rose 7.5 percent year-over-year in December, slower than the 7.7 percent spike in the previous month. On a monthly basis, M2 money supply dropped slightly by 0.1 percent at the end of the year, reversing a 0.4 percent increase in November. At the same time, annual growth in liquidity quickened to 8.3 percent in December from 7.8 percent in the preceding month. Liquidity of financial institutions grew at a slower pace of 8.9 percent yearly in December, following a 9.2 percent hike a month earlier.

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