Daily Market Overview by IFC Markets

Daily Market Overview by IFC Markets

Postby Akriti » Fri Aug 02, 2013 6:55 am

The US dollar on Thursday and early on Friday gained against the most of its peers due to ISM Manufacturing PMI released at 55.4, stronger than forecasts at 52.1 and surprisingly better Jobless Claims. The FED decided not to touch on asset purchases program giving a dovish tone on its statement on Wednesday but there is an extra focus now on economic data until next meeting. Early signs indicate that macros are going to be nicely improved. Next major release is for US Non-Farm Employment for July expected to increase by 184K. The US dollar index after finding support at 81.38 climbed back to previous resistance at 82.12 and breached that during US session rising as high as 82.43, ahead of the NFP the index is more likely to remain unchanged.
More: http://www.ifcmarkets.com/en/market-overview/show/1475
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Mon Aug 05, 2013 8:14 am

Risk Sentiment Worsens as CHN Markit Composite PMI Displays Contraction

Early on Monday’s opening currency markets participants appear less willing to take risk, with the USDJPY falling to 98.38 as traders prefer a safer currency. After Friday’s disappointing US NFP the greenback kept its downside bias, losing against its major counterparties with the US dollar index falling to 81.80 after drawing a resistance at 82.43. Moreover, the HSBC Market PMI Services for July stood at 51.3 the same like in June, indicating expansion in July since it is above 50, defying global concerns over Chinese weakening economic activity. However at Markit report Composite PMI signaled a contraction in July, also it is said that business decreased and the Services PMI remained unchanged due to profit margin squeeze, meaning prices dropped to support demand. The latter added pressure on risk appetite inducing further traders to abandon riskier assets, as a consequence NIKKEI 225 closed lower by 1.44%.

More: http://www.ifcmarkets.com/en/market-overview/show/1476
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Tue Aug 06, 2013 7:59 am

RBA Cut Key Rate to 2.5% Still AUDUSD Gains Ground

The Reserve Bank of Australia cut key rate by 0.25% to a new record low at 2.50%. At its statement the RBA though did not sounded as dovish as expected providing some support for its currency. More specifically Glenn Stevens said that growth has been a bit below trend over the past year, unemployment rose while inflation remained low providing space for rate cut. Lastly said for forward guidance, the policy would be adjusted as needed to foster sustainable growth after assessment of the outlook with inflation consistent with its target. Indicating that RBA does not plans to ease further this level of accommodation. Still, market participants have been expecting more dovish comments by RBA and that could explain AUDUSD advancement from 0.8904 to 0.8988. In contrary Aussie Trade surplus was at 600 million in June, lower than expected but higher from previous month trade surplus, while House price Index surprisingly increased by 2.4% in June from 0.8% the previous month.

More: http://www.ifcmarkets.com/en/market-overview/show/1477
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Wed Aug 07, 2013 7:57 am

USD/JPY Declines on FED Comments, Sterling Steady Ahead of Inflation Report

The US dollar is losing ground against the Japanese Yen as equities were under pressure on comments that FED would reduce asset purchase facility. In addition the Bank of Japan starts today its two day meeting and is mostly expected to maintain the same course. US indices closed lower last night with Asian indices following the same direction, NIKKEI 225 dropped substantially, by 4.00% closing below 14,000, Hang Seng also declined by 0.93%. As a virtue of that traders were abandoning equities and placing their money in safer places like Yen. Earlier on Wednesday we saw the USDJPY breaching key support at 97.57, triggering more sell orders and driving the pair to more than a month low at 96.82.

More: http://www.ifcmarkets.com/en/market-overview/show/1478
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Thu Aug 08, 2013 7:53 am

JPY Strengthens as BOJ Holds Policy, Aussie Surges on Increased Chinese Imports

The Bank of Japan at its monetary statement announced that will continue with quantitative and qualitative monetary easing for as long is needed to achieve inflation of 2% with CPI data signaling that is on the right path as inflation turned positive in June. BOJ maintained current monetary stance of increasing monetary base by 60-70 trillion Yen per annum, as well as key rate at record low level of 0.0-0.10%.

The Japanese Yen strengthened against its major counterparty with the USDJPY pair drawing a resistance earlier at 96.82 and falling to fresh 1 ½ month low at 96.11. The downtrend is well established with recently supportive data for the Yen, thus we would expect lower levels in the intraday but we will minimize exposure before US Jobless Claims.

More: http://www.ifcmarkets.com/en/market-overview/show/1479
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Fri Aug 09, 2013 3:55 am

Risk-on Weighed on US Dollar Value Late on Thursday, Steady Trading Early on Friday

Currency markets have been rather quiet with major pairs extending into tight sideways early on Friday. On Thursday risk appetite was supported by increase in Chinese imports and later on the day US Jobless Claims barely changed. Claims stood at 333K the previous week up compared to 328K two weeks ago and 3,000 lower than anticipated with no impact on markets.

Global indices have been in positive ground indicating improved risk sentiment. The US dollar index eased yesterday to 80.84 as investors were looking for higher yielding currencies while on Friday morning made technical correction to resistance at 81.05. Chinese CPI reading was below expectations providing room for its government to enhance stimulus, in addition Chinese Industrial Production increased by 9.7% in July, more than expected at 9.0% and higher than previous month at 8.9%.

More: http://www.ifcmarkets.com/en/market-overview/show/1480
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Wed Aug 14, 2013 7:53 am

Risk-on drives USDJPY to 98.33, Upbeat French and German GDP Lift Euro

US Shares last night closed in positive ground reflecting investors improved risk sentiment after US Retail Sales excluding auto sector rose by 0.5% in July, beating estimates of 0.4% increase. Asian shares followed at the same momentum with NIKKEI 225 advancing by 1.32% underpinned as well by Shinzo Abe’s yesterday comments that could cut corporate tax. The USDJPY has been in a bullish development rising to 61.8% Fibonacci level of 99.90 to 95.79, at 98.33. As of writing it spiked slightly above 98.33 and we would expect the pair to continue higher should it maintain ground above that key resistance.

More: http://www.ifcmarkets.com/en/market-overview/show/1483
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Thu Aug 15, 2013 9:06 am

US Dollar Lower on Tapering Uncertainty, Major Counterparties Strengthen

Overnight the greenback was weighed by dovish comments of St. Louis FED member James Bullard. He said that FOMC must see more macroeconomic data of the 2nd quarter of 2013 ahead of any monetary decision. In addition, he stressed that policy makers should not base their decision to reduce pace of asset purchases on future forecasts but on recent growth data. Recent macroeconomic data have been weak in last quarters while forecasts are optimistic with projection performance being poor in last years. Concerning inflation he added that the FED would not normally taper asset purchases with inflation below target. Investors stepped back on expectations for reducing the monthly $85B of asset purchases at the next meeting with the US dollar index falling back to 81.38 from recent peak at 81.84.

More: http://www.ifcmarkets.com/en/market-overview/show/1484
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Fri Aug 16, 2013 7:53 am

US Dollar Loses Previous Gains as Mixed Data Created Tapering Uncertainty

The US dollar jumped yesterday on better than expected Jobless Claims as people claiming unemployment benefits dropped to 320K the previous week much lower than 334K expected and down from 335K two weeks ago. US claims were coupled with CPI release indicating that all item 12-month to July inflation increased to 2.0% from 1.8% as expected and the core inflation rose to 1.7% from 1.6% in June.

Therefore the US dollar initially was supported by upbeat jobs report, with the US dollar index surging to 81.88 but then uncertainty on asset tapering came back to markets pushing the index lower to 81.06. Weaker than projected US Industrial production and disappointing Philadelphia Manufacturing index also made the US dollar heavier. Chances were increased in favor of asset tapering with treasury yields rising, the 10Y bond rose from 2.71% to 2.77% and the 5Y bond from 1.48% to 1.54%.

More: http://www.ifcmarkets.com/en/market-overview/show/1485
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Re: Daily Market Overview by IFC Markets

Postby Akriti » Mon Aug 19, 2013 8:25 am

Currencies Almost Unchanged on Monday Morning Trading

FX markets are steady today with majors opening around the same level like ending on Friday night. The Euro against the greenback is fluctuating around 1.3320 just below the top of 1.3398/1.2755 long term wide range. The greenback retreated on Friday amid weaker than expected US Housing data. US indices also closed lower on Friday on risk averse and on uncertainty on FED asset tapering. On Wednesday investors would focus on US FOMC minutes of the 31st July meeting for further clues regarding FED’s intentions on September meeting.

Japanese equities were positive in today’s trading after Exports increasing by 12.2% in July compared to 7.4% in June, however Imports also increased by 19.6% in July up from 11.8% in June, widening adjusted Trade deficit to ¥944.0 bln from ¥663.7 bln the previous month. The USDJPY drew a support line at 97.35 and rose back to resistance at 97.80.

More: http://www.ifcmarkets.com/en/market-overview/show/1486
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