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Oil little changed in thin, tug-of-war trade
(Reuters) - Oil prices were little changed on Friday in very light, tug-of-war trading, as concerns about economic growth were countered by hopes for additional easing by the Federal Reserve to boost a sputtering recovery.
Brent edged lower and crude rallied late to settle, reducing Brent's premium to its U.S. counterpart, while both contracts posted second consecutive weekly gains.
Prices felt pressure early, after ratings agency S&P downgraded Spain's credit rating. But oil pared losses ahead of U.S. GDP figures that showed growth cooled in the first quarter.
But some investors believe slowing U.S. growth may prompt the Federal Reserve to launch a third round of government bond buying, or quantitative easing, known on Wall Street as QE3.
"Bad news for the economy is being interpreted ...
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US Employment Data in Focus
The Week Ahead
Highlights
US employment data in focus
Bank of Japan underwhelms
RBA likely to cut
The SNB talks tough on the Swissie
Is the UK economy really that weak?
The Eurozone's growth pact
US employment data in focus
Earlier this week, the Federal Open Market Committee (FOMC) held its 2-day policy meeting. The bank kept policy on hold and upgraded the economic assessment, however comments from Ben Bernanke - which did not provide any new insight in our view - kept Treasury yields low, equity markets supported, and the dollar soft with QE3 speculation back into focus.
Fed projections showed upwards revision to real GDP growth with forecasts of 2.4%-2.9% for 2012 up from the prior 2.2%-2.7% estimate and the unemployment rate forecast was lowered to 7.8%-8% ...
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April Month-End Rebalancing
April Month-End Rebalancing
Often you may hear about 'month end' flows having a positive or negative effect on a currency during the last day of the month. Thus, I've decided to take a look at asset market capitalizations in the major market economies to help us try to determine which direction these 'flows' may move. Typically, the largest impact is seen into the 11am ET fix as hedge fund and mutual fund portfolio managers scramble to rebalance their remaining currency exposure in order hedge their overall portfolio.
Market capitalizations for April was mixed - With a slight gain seen in the United Kingdom (rose 20B) and the largest loss witnessed in the Eurozone, which fell 316B (as of 4/26 close). So how do we make sense of this? Well, the more severe a change of the principal assets ( ...
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Gold prices dip as Spain downgrade hurts euro
(Reuters) - Gold prices slipped back towards $1,550 an ounce on Friday, ending the metal's three-session rally, as a ratings downgrade of debt-laden Spain pressured the euro, and consumers in major Asian bullion-buying centers shunned the precious metal.
Spot gold was down 0.2 percent at $1,653.90 an ounce at 0935 GMT, while U.S. gold futures for June delivery were down $5.60 an ounce at $1,654.90.
Gold rose 0.7 percent on Thursday after the U.S. Federal Reserve pledged to keep interest rates, and consequently the opportunity cost of holding gold, at rock bottom for an extended period.
But Standard & Poor's two-notch credit rating downgrade on Spain raised risk aversion in the markets on Friday, knocking the euro versus the dollar. Gold has a close negative link with the U.S. unit, ...
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Asia Session: The BOJ Stays Committed To Achieving Its Inflation Target
The BOJ stays committed to achieving its inflation target, but it fails to impress the market
As we expected the BOJ kept the overnight rate at <0.1%, expanded its asset purchase program by JPY10 trillion and extended the maturity of JGB buying to 3 years from 2 years. There were some market rumours that the bank would disappoint the market by not increasing its APP which was making some investors nervous, thus there were some market moves initially following the release.
USDJPY initially sunk lower on the back of the news, before shooting in the other direction. The only half-surprise to the market from the BOJ was the extension of the BOJ's bond purchases to 3 years. Thus, the Nikkei 225 and USDJPY retraced all of their respective gains shortly after posting them. The Nikkei 225 is ...
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RTFX Daily Forex Market comments : 04/27/2012
EUR – USD
Our preferred view is for a drift down to 1.3191 or below 1.3162. Resistances is at 1.3196. A rise above 1.3255 would delay but not abort this expected fall.
USD – CHF
Market should hold major support at 0.9060 before rising towards 0.9110 or even 0.9129 limit.
GBP – USD
Current rise should end around 1.6195 or 1.6208. Objectives of this downmove are 1.6159 or 1.6134. A rise above 1.6231 is again bullish.
USD – JPY
It is likely to fall towards 80.83 - 80.63 as its corrective rally could falter in 81.21 - 81.39 area. Stop above 81.79 zone.
USD – CAD
Market should hold major support at 0.9799 before rising towards 0.9859 or even 0.9874 limit.
NZD – USD
There are initial signs of a good corrective recovery to at least 0.8168 or even above 0.8183. Supports at 0.8134 and 0.8115 ...
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Oil rises on U.S. housing data, Fed optimism
(Reuters) - Crude oil futures rose on Thursday as a solid pickup in U.S. home sales added to economic optimism following the U.S. Federal Reserve's vow a day earlier that it would take further stimulus action if needed to keep the recovery going.
In volatile trade, oil gave up early gains after a weak report on jobless claims, then rebounded to session highs on the housing data.
Oil advanced with a broad rise in key commodities, such as copper, reflected in a 0.40 percent gain in the Thomson Reuters-Jefferies CRB index .CRB.
Overall, oil's gains were limited as data showed economic sentiment in the euro zone fell more than expected in April.
As was the case on Wednesday, the oil markets received support from stronger equities and, to some extent, a weakened dollar, which improved ...
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Gold climbs 1 percent on options-related buying
(Reuters) - Gold rose 1 percent on Thursday on options-related buying and as investors' risk appetite rose broadly a day after Federal Reserve Chairman Ben Bernanke said the Fed is prepared to do more for the U.S. economy.
The metal, which has tended to follow riskier assets most of this year, extended its rise to a third consecutive day as U.S. equities climbed on encouraging corporate results and a strong housing report. .N
Renewed gold buying could be seen after May COMEX options expired in the previous session as the liquidation pressure on the underlying futures have disappeared for now, traders said.
"After options expire, volatility may temporarily increase as investors have better leverage and can buy more options at a lower premium in the short term," said Thomas Philippides, ...
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Dukascopy Afternoon Forex Overview : 26/04/2012
Fundamental Analysis
EUR
Deutsche Bank, the German biggest lender posted a 33% drop in its first quarter profit, citing debt crisis as a negative force that curbed trading. Net income declined to EUR 1.38 billion (USD 1.82 billion) compared to EUR 2.06 billion in the same period last year. Economists questioned by Bloomberg expected the profit to decrease less to EUR 1.56 billion. Deutsche Bank shares have added 16% this year.
USD
Crude oil fluctuated close to a one-week record high as Fed claimed they expect the economic growth to advance, encouraging the speculation that fuel demand will increase. Moreover Iran announced it may stop its nuclear expansion. June crude traded at USD 104.07 a barrel after climbing USD 0.57 yesterday. Brent oil to be delivered in June traded at USD 119 a ...
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