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The euro moved higher vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4275 level and was supported around the $1.4200 figure. European Central Bank member Bini Smaghi reiterated the central bank expects inflation to remain low over the coming year and will “do everything it takes to prevent it from rising.” He also indicatyed the ECB does not expect EMU-16 growth before the middle of 2010. Notably, EMU-16 GDP growth was -0.1% q/q, up from the record decline of -2.5% in the prior quarter. The euro moved higher partially on a reound in Chinese equity markets as the Shanghai Composite was up 4.5% today following recent flirtations with bear market territory. Other major news today focused on a warning from Germany’s finance ministry that the economic stabilization may not hold. It was reported last week that German GDP improved unexpectedly in the second quarter. In U.S. news, data released in the U.S. today saw the Philadelphia Fed’s manufacturing survey improve to 4.2 from -7.5 in July while July leading economic indicators were up 0.6%. Also, weekly initial jobless claims rose to 576,000 from a revised 561,000 and continuing jobless claims printed at 6.241 million, up from a revised 6.239 million. Euro bids are cited around the US$ 1.3900 figure.
¥/ CNY
The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥94.55 level and was supported around the ¥93.85 level. Bank of Japan Policy Board member Mizuno warned the domestic economic recovery could decelerate in the autumn, adding a sustained economic recovery would require “support from governments and central banks.” He said the BoJ should prepare Japan for an extended bout with deflation, warning that “price declines will ease only at a moderate pace” in the year starting April 2011. He also warned the central banks lacks the tools needed to “prop up prices and stimulate economic growth in the short term.” The yen’s direction is uncertain given the real possibility that economic growth may slow further. On the political front, a Democratic Party of Japan victory at the general election on 30 August could result in upward pressure on the yen and possibly more supply of Japanese government bonds. The Nikkei 225 stock index climbed 1.76% to close at ¥10,383.41. U.S. dollar offers are cited around the ¥104.15 level. The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥134.60 level and was supported around the ¥133.40 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥156.70 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥88.65 level. In Chinese news, the U.S. dollar lost ground vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8273 in the over-the-counter market, down from CNY 6.8320.
Technical Outlook at 1230 GMT (EDT + 0400)
(Bid Price) (Today’s Intraday Range)
EUR/ USD 1.4254 1.4265, 1.4200
USD/ JPY 94.09 94.55, 93.85
GBP/ USD 1.6505 1.6604, 1.6450
USD/ CHF 1.0628 1.0684, 1.0621
AUD/USD 0.8312 0.8332, 0.8268
USD/CAD 1.0882 1.0994, 1.0862
NZD/USD 0.6760 0.6773, 0.6725
EUR/ JPY 134.11 134.60, 133.39
EUR/ GBP 0.8633 0.8642, 0.8569
GBP/ JPY 155.32 156.71, 154.52
CHF/ JPY 88.49 88.67, 87.94
Friday, August 21, 2009
Dollar currency trading, learn how to trade forex live
In another sign the worst of the U.S. recession is over, a gauge of current conditions showed the economy steadied last month. The Conference Board's coincident index was unchanged in July after falling in 17 of the 19 months since the contraction started in December 2007, figures from the New York-based private research group showed yesterday. The more closely watched gauge of leading indicators, which shows the outlook for the next three to six months, climbed for a fourth month.
The yen rose, heading for a second weekly gain against the euro, as China was said to be planning to tighten capital requirements for banks, accelerating losses in stocks and boosting demand for Japan's currency as a refuge. Higher-yielding currencies slid versus the yen and the dollar after people familiar with the matter said the China Banking Regulatory Commission sent a draft of the rule changes to banks on Aug. 19. The yen climbed versus all of its 16 major counterparts on concern toxic securities will continue to hurt U.S. banks, extending the global financial crisis.
The yen strengthened to 93.72 per dollar as of 7:27 a.m. in London from 94.19 in New York yesterday, after earlier reaching 93.48, the highest level since July 22. It has risen 1.3 percent in the past five days, adding to last week's 2.8 percent gain. Japan's currency climbed to 133.32 per euro from 134.26.
The dollar advanced to $1.4235 per euro from $1.4254 yesterday. It has weakened 0.2 percent versus the euro in the past five sessions, following a 0.1 percent decline last week.
The Australian dollar fell to 77.39 yen from 78.31 yen and dropped to 82.56 U.S. cents from 83.13 cents. The New Zealand dollar slid to 63.17 yen from 63.78, and declined to 67.39 U.S. cents from 67.72.
The yen rose, heading for a second weekly gain against the euro, as China was said to be planning to tighten capital requirements for banks, accelerating losses in stocks and boosting demand for Japan's currency as a refuge. Higher-yielding currencies slid versus the yen and the dollar after people familiar with the matter said the China Banking Regulatory Commission sent a draft of the rule changes to banks on Aug. 19. The yen climbed versus all of its 16 major counterparts on concern toxic securities will continue to hurt U.S. banks, extending the global financial crisis.
The yen strengthened to 93.72 per dollar as of 7:27 a.m. in London from 94.19 in New York yesterday, after earlier reaching 93.48, the highest level since July 22. It has risen 1.3 percent in the past five days, adding to last week's 2.8 percent gain. Japan's currency climbed to 133.32 per euro from 134.26.
The dollar advanced to $1.4235 per euro from $1.4254 yesterday. It has weakened 0.2 percent versus the euro in the past five sessions, following a 0.1 percent decline last week.
The Australian dollar fell to 77.39 yen from 78.31 yen and dropped to 82.56 U.S. cents from 83.13 cents. The New Zealand dollar slid to 63.17 yen from 63.78, and declined to 67.39 U.S. cents from 67.72.
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