Dollar Sank After The Minutes
The U.S. dollar rose to its highest level in four years against the yen within close distance of the key 100 mark on Wednesday, after minutes of the Fed’s latest policy meeting added to expectations for an early end to the bond-buying program.
A few Fed policymakers expected to taper the pace of asset purchases by mid-year and end them later this year, while several others expected to slow the pace a bit later and halt the quantitative easing program by year-end, according to the Fed minutes, which were released hours ahead of schedule. The yen sank to the weakest level versus the greenback since May 2009 as the Bank of Japan reiterated its stimulus program.
The USD/JPY pair climbed to 99.717 from an opening of 99.004, after having reached a high of 99.811, the highest level since May ...
U.S. Review
Q1 In the Books and Still Set for Decent Gain
Personal spending posted a solid gain in February as consumers shake off January's hit to income. Income is, however, recovering, up 1.1 percent in February.
February durable goods orders rose 5.7 percent on the back of stronger transportation orders. Shipments recovered from January's decline, but suggest modest business spending in the first quarter.
New home sales stumbled in February, but the broader housing recovery remains intact. The S&P/Case-Shiller index showed home values across 20 major markets rose a solid one percent in January.
Q1 In the Books and Still Set for a Decent Gain
As expected, the latest revision to fourth quarter GDP showed only a paltry uptick. GDP increased at a 0.4 annualized rate in the final quarter ...
Ahead the FOMC minutes we watched the superpower`s shares plummeting throughout the opening session after the Standard & Poor’s 500 Index briefly topped a four-year high yesterday, as Japan’s exports slid and Greece sought more time on changes.
Accordingly at 10:05 a.m. in New York the Dow Jones Industrial Average dropped 10.73 points, or 0.1 percent, to 13,192.85 and the S&P 500 retreated 0.1 percent to 1,412.50 while that the Nasdaq Composite
Now Dell Inc. sank 6.7 percent after cutting this year’s profit forecast on shrinking personal-computer sales and Rival Hewlett- Packard Co. fell 1.9 percent ahead of its earnings report after the market’s close.
Plus Clearwire Corp. declined 3.5 percent after the wholesale wireless carrier was downgraded by RBC Capital Markets and Sunrise Senior ...
The RBA Minutes signaled the Australian economy will continue to grow near trend, and the economy could withstand the headwinds from its global counterparts. The bank held interest rate steady at 3.5 percent. The Bank maintained its positive and optimistic outlook for the economy.
The Australian dollar rallied after the announcement, and is expected to gain over the near term as yield differentials continue to favor the Aussie.
The Peoples` Bank China in its efforts to boost slowing growth injected a CNY220 billion into the system via 7- and 14-day reverse-repo operation, to boost bank access to funding.
The AUD/USD pair rebounded to trade back above the neckline of a head and shoulders pattern at 1.0455 level, and that has turned the intraday momentum into bullish, stability back ...
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FX Fundamental Analysis
FX Fundamental Analysis
USD
Optimism in the market sank on lack of new data and resumed uncertainty. Dollar demonstrated mixed trading against the yen, but slipped at the end of the last week. Against the euro it, on the other hand, rose, as most investors decided to book their profits. British pound was more or less steady and managed to gain versus the greenback by the end of the week. In the spotlight this week will be retail trade data for July, expected to register 0.4% m/m growth after -0.5% m/m earlier, and data on consumer and producer prices, anticipated with a slowdown on an annual basis and with some growth month on month. Producer Price Index is likely to come in at 0.3% m/m, 0.5% y/y in July after the prior 0.1% m/m, 0.7% y/y/ Consumer prices will most likely post +0.2% m/m, ...
(Reuters) - Crude oil futures firmed on Wednesday as the dollar weakened, with attention focused on U.S. inventory data and minutes of the Federal Reserve bank due out later in the day.
"I think the firmer tone is coming from a weaker dollar if you look at it across a range of currencies," said Michael Hewson, markets analyst at CMC markets.
"(Investors) are also looking at upcoming Fed minutes to be released today ... for clues of a QE3. Investors are short covering riskier assets leading to a weaker dollar and therefore higher oil prices."
Brent crude for August delivery rose 88 cents to $98.85 a barrel by 1212 GMT, after rising over $1 a barrel and hitting an intraday high of $99.23.
U.S. crude was at $85.01, up $1.10 cents, after a high of $85.31.
The dollar lost ground on ...
Gold sank to a 2012 low on Wednesday before paring losses in choppy trade, as traders were torn between hope that France and Germany would work together to keep the Euro zone intact and new signs of stress in the Greek banking sector.
Bullion briefly crossed into bear market territory, down 20 percent from its record last September, as intensifying fears a Greek exit from the euro zone would worsen the debt crisis gripped financial markets earlier in the day.
Prices later recouped most of their losses following a meeting between new French President Francois Hollande and German Chancellor Angela Merkel at which they pledged to forge a joint approach for an EU summit next month. That eased concerns of a spat that could worsen the euro zone crisis.
During the U.S. session, gold prices ...
(Reuters) - Gold was broadly steady in thin trade on Friday but was headed for a weekly decline of more than 2 percent as investors were disappointed by the diminishing prospects of monetary stimulus in the United States.
Bullion touched a near three-month low of $1,611.80 this week after the minutes from a U.S. Federal Reserve policy meeting showed a waning appetite for another round of bond purchases.
Spot gold has rebounded from that level to trade at $1,629.79 per ounce at 0308 a.m. EST, but is still on course for a 2.3 percent weekly decline, snapping two straight weeks of gains.
"Gold fell below the previous range that it had held for a while," said Hou Xinqiang, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen. "If we don't see any significantly supportive ...
Gold rose on Thursday, as investors covered short positions after a sharp two-day pullback, and a crude oil rally also buoyed the precious metal that sank early this week when investors grew pessimistic about further U.S. monetary easing.
Bullion rebounded from its biggest two-day drop in a month after it steadied above key technical resistance at $1,600 an ounce where investors had placed heavy put options to protect against further losses.
Trading volume was thin ahead of Friday's U.S. nonfarm payrolls report and the Good Friday holiday in Western markets. Gold remained on track for a weekly decline exceeding 2 percent after minutes of the latest Federal Reserve policy meeting doused hopes for further U.S. monetary stimulus.
Market watchers said some hedge funds might have reduced ...