Doubts The Recent Yen

(Reuters) - World equity markets rose for a second consecutive day on Tuesday on hopes European leaders will tackle the region's debt crisis, but the euro fell on doubts that much would come of a meeting just a day away. European shares gained almost 2 percent on optimism European leaders may devise new measures to foster growth in the euro zone and restore a doubtful market's confidence. An informal summit of European Union leaders late on Wednesday is expected to discuss the idea of regional bonds jointly underwritten by all euro zone member states. However, Germany's long-standing opposition is unlikely to change; the country has dismissed the French-led call for the euro zone to issue common bonds. "The string of summit meetings that have been called to address the euro crisis thus ...

Currency speculators increased bets in favor of the U.S. dollar to the highest level since at least mid-2008, according to data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net long position rose to $28.52 billion in the week ended May 15, from $20.95 billion the previous week. Short euro positions climbed to 173,869 contracts, the highest on record, from 143,984 a week earlier. The euro zone common currency has sold off in recent weeks as concerns about Spain's banking system and political chaos in Greece threw doubts on whether Europe can commit to austerity plans crucial to tackling the region's debt crisis. The euro hit a 4 month low of $1.2640 on Friday. To be short a currency is to bet it will decline in value, while being long is a ...

The euro gained against the dollar on Thursday, snapping eight straight sessions of declines and bouncing from its recent 3-1/2-month low as stress in Spanish debt markets eased and Greece secured funds to repay its bondholders. The tempering of the dual threats of a Greek insolvency and the country's potential exit from the euro also had the single currency rebounding from a mid-February low against the Japanese yen. Greece averted an imminent funding crisis after the board of the European Financial Stability Facility agreed to release a scheduled payment. The allocation allows the country to meet near-term bond redemptions, helping the euro stabilize after an eight-day sell off. "The EFSF agreement could be viewed as euro-positive, and data in the U.S. and overseas was not negative, ...

The euro rose against the dollar for the first time in nine sessions on Thursday, bouncing from its recent 3-1/2-month low as stress in Spanish debt markets eased slightly and after Greece secured funds to repay its bondholders. The tempering of the threat of a Greek insolvency and the country's possible exit from the euro also had the single currency rebounding from a mid-February low against the Japanese yen. Greece averted an imminent funding crisis after the board of the European Financial Stability Facility agreed to release a scheduled payment. The allocation allows the country to meet near term bond redemptions, helping the euro stabilize after an eight day sell off. "The EFSF agreement could be viewed as euro-positive, and data in the U.S. and overseas was not negative, but ...

(Reuters) - The dollar slipped against the yen in volatile trading on Friday after a government report showed U.S. employers added fewer jobs in April than expected, providing further evidence the economic recovery was losing momentum. The euro edged lower, while the Australian and New Zealand dollars tumbled as the data prompted investors to shed riskier, growth-linked currencies for safer investments such as Treasuries. U.S. employers added 115,000 workers last month, well below expectations of 170,000. The unemployment rate fell to 8.1 percent but only because more people left the workforce. Jobs growth in previous months was revised upwards. The data followed a string of weak readings on the economy that fueled speculation of more monetary stimulus from the Federal Reserve. "On ...

A batch of negative euro-zone economic indicators, including a worse than expected manufacturing PMI, drove the EUR/USD to its lowest level in over a week during trading yesterday. The news also resulted in the euro dropping over 140 pips against the yen during the European session. Turning to today, European news is forecasted to generate significant market volatility. Traders will want to pay attention to the results of a Spanish debt auction, as well as to the ECB Press Conference at 12:30 GMT. Should any of the news signal further troubles regarding the euro-zone economic recovery, the common currency could drop further before markets close for the week. Economic News USD - ADP Employment Figure Leads to Dollar Losses The US dollar fell vs. the safe-haven JPY throughout European ...

Dukascopy Fundamental Analysis EUR Spain faced increasing borrowing costs during successful sale of bonds with two and ten-year maturity. The country's Treasury sold 1,116 billion Euros of two-year bonds at yield of 3.463% and 1,425 billion Euros in ten-year bonds with yield of 5.743%. Demand for Spain's debt was strong as bids surpassed demand 3.3 times. USD Stock index futures indicated a lower opening on today’s USA session on the EU concerns. Additionally, news from Wal-mart on a possible bribery case had negative influence on stock indices. GBP According to experts from zifx.com, following an extensive rally of GBP/USD, the currency pair is presently overgoing a bearish correction. While the initial support and resistance levels are situated at 1.6037 and 1.6154, respectively, ...

Fundamental Analysis EUR "The debt crisis is far from over still and I think Spain will be worse before it gets better" - Henrik Drusebjerg, a senior equity strategist at Nordea Bank AB Spain sold 2.54 billion euros of debt dated 2014 and 2022 on Thursday, above the target range of 1.5 to 2.5 billion euros for the auction. USD "Progress in the labor market is not quite as strong as people had hoped, but we are still on a recovery track here" - Scott Brown, chief economist at Raymond James & Associates Inc. The number of Americans claiming for unemployment benefits declined by 2,000 to 386,000 in the week ended April 14 from the week before, said the Department of Labor on Thursday. GBP "Economic data does look like it is showing some stabilization" - Samantha Fitzpatrick, senior ...

(Reuters) - The yen inched lower on Thursday after commodity currencies briefly shot up on hopes China will soon ease policy, and as flows from Japanese importers and 'toushin' investment trusts pressured it against the U.S. dollar, traders said. The euro is set to come under fresh pressure and test its long-standing support at $1.30 later in the session as Spain tests investors' confidence in its debt-ridden economy when it tries to sell new two- and 10-year bonds. The dollar rose 0.2 percent to 81.38 yen, near its highest level in about 10 days, with traders citing flows related to a launch of a large toushin by a Japan investment bank. "The dollar was pushed towards 80 yen this week, but its solid rebound well above 81 yen underscores its underlying strength making it hard for ...