Euro gains Dollar and yen drop

Euro gains Dollar and yen drop

Unknown   Wednesday, April 17, 2013

The U.S. dollar and the Japanese yen fell on Tuesday, as investors sold safe-haven currencies, and bought gold and U.S. stocks a day after the yellow metal took a comprehensive defeat.

The ICE dollar index (NYE: DXY), a measure of the dollar against a basket of six major currencies, fell to 81.781 in late trading Tuesday from 82.318 on Monday.

WSJ Dollar Index (WSJ: XX: Buxx), an indicator that uses a rival slightly larger basket, fell to 73.09 from Tuesday's close of 73.56.

Fair value of gold is $ 800 per ounce

 Mark Hulbert advises investors do not expect gold prices to flare up again anytime soon. Notes gold fair market value may exceed $ 800 an ounce.

"We have seen that the euro and the yen recover retreat after attracting safe-haven flows during yesterday's defeat of gold," said Kathleen Brooks, research director UK EMEA at Forex.com, in a note to clients .

The dollar "has been collected in the fall" against the yen, he added. "If we can get above 98.70 [yen] - Monday's high - then we could be back on the road to retest 100.00."

While the dollar gained against the yen, which was lower against its major rivals. After climbing as high as 98.15 yen before Tuesday, the dollar (ICAPC: USDJPY) bought 97.57 yen in afternoon trade, compared with 97.09 yen in North American trading Monday. The euro rose 1.7% to 128.62 yen.

The euro (ICAPC: EURUSD) climbed to change hands at $ 1.3185 compared to $ 1.3056 on Monday. The pound (ICAPC: GBPUSD) also recovered, reaching $ 1.5371 from $ 1.5295.

The yen was the top performer among major currencies Monday after Chinese growth quarterly and monthly industrial production data was weaker than expected, generating safe haven flows into the currency.

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U.S. niege to label China currency manipulator

U.S. niege to label China currency manipulator

Unknown   Saturday, April 13, 2013

The Obama administration declined to label China currency manipulator, but said that China's currency is still significantly undervalued s. The decision was made in a report twice a year Treasuries if any nation is manipulating their currencies to gain trade advantages.

The report said China has allowed its currency, the renminbi, and rise in value by 10 percent against the dollar since June 2010 and even more when inflation is taken into account. But the report said the currency remains undervalued and appreciation is needed.

The United States will also closely monitor the policies of Japan s currency, the report said. S Bank of Japan has just launched a new effort to boost the Japanese economy. That effort has weakened the value of the Japanese yen and the U.S. could expand trade and Japan gap.US manufacturers contend that China is manipulating its currency to gain trade advantages. 

A weaker renminbi makes Chinese products cheaper for American consumers and U.S. goods more expensive in China.The Obama administration has now declined to China as a manipulator of nine consecutive reports. 

It has been argued that it was more likely that the United States will advance economic issues through negotiation rather than confrontation. Naming China as a currency manipulator would lead to negotiations that could eventually lead to economic sanctions of the U.S. against China.

In March, Jacob Lew traveled to Beijing, his first trip abroad since becoming Treasury Secretary. During the trip, he referred to the need for China to do more to allow its currency to rise in value. He also referred to a number of other economic contentious issues between the two world s largest economic powers, including a demand from Washington for China to do more to end threats to U.S. cybersecurity Late U.S. companies.

The appointed a country as a currency manipulator was in 1994 during the Clinton administration made that accusation against China. On Japan, the report noted that the Japanese yen has lost value against the dollar by 12 , 5 percent this year alone. 

That s occurred when the Japanese government and its central bank has committed to an aggressive policy to drive interest rates lower to reinforce the Japanese economy. 

The U.S. government said he will continue to press Japan to use its economic policy to boost domestic consumer demand, and not as a trade weapon.

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Gold future trade trend and analysis

Gold future trade trend and analysis

Unknown   Friday, April 05, 2013

Gold futures and received a three-session loss of just over 3%, while maintaining the lowest level since late June, but prices recovered from low of the session. The force deleted before, relieving pressure on the dollar-denominated gold before the U.S. employment Friday's data. +0.06%.

In June GCM3 gold lost $ 1.10, or 0.1%, to settle at $ 1552.40 an ounce on the Comex division of the New York Mercantile Exchange.

That was the lowest settlement for a most-active contract since June 28 FactSet data shows, but cutting prices most of its losses in the last minutes of trading on Comex. With data from payrolls barrel, technical traders do not want to be caught short with that "critical catalyst" in the morning, said Jeffrey Wright, managing director of Global Hunter Securities.

Gold futures managed to cut losses on Thursday in the final minutes of trading as the dollar fell before the jobs data from the United States, but the metal still saw its third straight session decline.
Gold for June delivery GCM3 +0.07% fell $ 1.10, or 0.1%, to settle at $ 1552.40 an ounce on the Comex division of the New York Mercantile Exchange. It touched an intraday low of less than $ 1540, then compared to much of their losses by the close.

Japanese relief excites Asia
Asian markets rise after the Bank of Japan publishes its aggressive plans to combat deflation.
With data from payrolls barrel, technical traders do not want to be caught short with that "critical catalyst" in the morning, said Jeffrey Wright, managing director at Global Hunter Securities.

The strong dollar had pressured gold prices in dollars, with the U.S. dollar rally against the Japanese yen after the Bank of Japan announced an aggressive monetary expansion in a bid to end deflation and stimulate growth economic.

But near the end of the Comex session, the dollar lost more ground against the euro EUR USD -0.07% as the market mulled comments from European Central Bank President and the decisions of the European Central Bank and the Bank of England to maintain monetary policy on hold, as expected.

The ICE Dollar Index DXY 0.05%, which measures the U.S. currency against a basket of six major rivals, fell to 82.643, from 82.712 seen Wednesday night in North America.

Currency traders and metals alike are seeking employment for U.S. Friday's data. Following a rise in weekly jobless claims in the U.S. to a database and disappointing four months in private payrolls, figures nonfarm payroll will provide a clue to when the Federal Reserve purchases facilitate assets.

Gold Clearance
On Wednesday, gold fell $ 22.40, or 1.4%, amid selling in the largest fund gold-backed exchange-traded GLD -0.29%.
Prices have lost a total of 3.1%, or $ 48.50 an ounce in the last three trading sessions.

How to bet on gold now
Gold timers with the best track records are more pessimistic than those with the worst track records.

The Federal Reserve seems to be much closer to end quantitative easing, probably sometime this year, which is moderating the speculative demand for gold, "said U.S. Bank Wealth Management senior investment strategist Robert Haworth.

However, among the factors that could provide support for gold is the potential of a further banking crisis in Europe, such as Slovenia, Haworth said, "which may require more intervention from the ECB and easier monetary policy."

Meanwhile, analysts at Credit Suisse in a note published on Wednesday that have cut their forecast for 2013-1580 gold dollars from $ 1,740 an ounce. For 2014, they have cut their forecast to $ 1,500 from $ 1,750 an ounce.

In Comex, silver prices fell, posting their seventh straight session decline.Silver for May delivery fell SIK3 +0.29% 3 cents, or 0.1%, to 26.77 dollars per ounce."Gold and silver are trading within a hair of their 2012 lows," said Peter Hug, director of global trade in Kitco Metals Inc., in a note daily market, adding that "flatten look" at of $ 1,530 gold, silver aimed at $ 26.30. "These levels should maintain or serious damage will occur, especially gold, you can see evidence of the level of $ 1470."

Among other COMEX, July futures PLN3 platinum fell $ 24.10 0.23%, or 1.6%, to $ 1517.80 an ounce and palladium for June delivery sank pAM3 +0.05% $ 30, or 4%, to $ 725.45 an ounce. Both metals marked a decline of three sessions.

Copper broke the general trend in the market, with copper tacks May HGK3 +0.27% in about 2 cents, or 0.6%, to $ 3.35 a pound.

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Euro gains while Yen plunges on Bank of Japan easing plan

Euro gains while Yen plunges on Bank of Japan easing plan

Unknown   Friday, April 05, 2013

The U.S. dollar rose against the yen on Thursday, after the Bank of Japan announced a massive program of relaxation intended to end deflation in the Japanese economy.

The 0.01%  U.S.Dollar JPY 96.16 yen Japanese shot Thursday from 92.90 yen, just ahead of the BOJ's decision. It traded around 92.78 yen in the North American trade late Wednesday.

Japanese Relaxation excites Asia
Asian markets rose after the Bank of Japan announced plans aggressive fight against deflation. The WSJ Phred Dvorak says Michael Arnold how other countries are reacting to the new route from Japan.

In the first policy meeting under Gov. Haruhiko Kuroda, who has vowed to fight against long-term deflation in Japan, the central bank pledged to achieve an inflation target of 2% in two years. Also made a radical revision of the policy with a new goal of monetary base and a sharp increase in asset purchases.

The central bank said it would increase its holdings of Japanese government bonds at an annual rate of 

¥50 trillion ($530 billion), with JGB holdings double in two years.

"There are two reasons why the dollar-yen might have gone higher: Positioning or the Bank of Japan surprised the market by being more aggressive. Think it's more likely the former than the latter," said David Woo , head of global rates and currencies research at Bank of America Merrill Lynch.

"Not so much that surprised the market by being more aggressive, but the market and reduce short yen positions and had to buy again today," Woo said, referring to Kuroda.
"A first look at the market reaction confirms that the BoJ delivered at least what the market expected: dollar / yen and Nikkei gaining higher after the announcement," Danske Bank analysts in a note. The Nikkei JP: NIK 2.20% was recovered 2.2%.

The ICE dollar index DXY 0.04%, which measures the U.S. currency against a basket of six major rivals, fell to 82,637 from 83,035 at the beginning of the session and 82,712 on Wednesday.
The WSJ Dollar Index XX: BUXX 0.06%, which measures the greenback against a larger basket, pared gains to trade at 73.53, compared to 73.78 and 73.22 in Wednesday's session.

Euro Rallies
The euro  JPY -0.02% rose more than 4% to 124.47 yen Japanese.
The euro rebounded against the U.S. dollar. The EUR USD -0.07% rose to $ 1.2946 in recent action, down from $ 1.2858 earlier in the session, and $ 1.2845 on Wednesday.

The decision comes as the European Central Bank monetary policy remained unchanged.ECB President Mario Draghi told reporters at his monthly press conference that the central bank would watch closely the incoming data and assess the risks of the bank's target for the annual inflation close to but just below 2%.

"In short, a rate cut or additional unconventional measures can not be ruled out in May," said Annalisa Piazza, a strategist at New edge brokerage in London. Annual inflation in the euro area fell to 1.7% in March.
However, the euro rebounded in the afternoon after Draghi did not explain specifically a greater reward in the future.

The labor market data has been weaker than expected this week, including the U.S. weekly jobless claims on Thursday and ADP data private payrolls Wednesday. Data culminate with Friday's jobs report as investors analyze the headline non farm payroll number and the rate of unemployment for clues about the Fed could start declining asset purchases.

The Fed has been linked to the duration of the $ 85 billion monthly asset purchases to a fall in the unemployment rate to 6.5%. "If we have a disappointment, with negative consequences for the dollar. Likely that the stimulus would take more time,".

In London, the Bank of England kept its bond purchase program unchanged and maintained its key interest rate at a record low of 0.5%, as expected.
The British pound GBPUSD -0.06% rose to $ 1.5244 from $ 1.5148 late Wednesday.

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U.S. stocks end higher vs Bank of Japan

U.S. stocks end higher vs Bank of Japan

Unknown   Friday, April 05, 2013

U.S. stocks resumed on Thursday as a step further monetary stimulus joy of Japan overcame the resistance that comes as applications for U.S. unemployment rose to a maximum of four months. 

"In the global sense, do not fight the Fed," said Tim Leach, chief investment officer of private client reserve U.S. Wealth Management Bank, referring to Bank announced aggressive easing measures, in Japan, that comes along with similar measures by the central banks of the United States and Europe. 

The Dow Jones Industrial Average Dow Jones 0.38% rose 55.76 points, or 0.4%, to 14606.11. The S & P 500 0.40% SPX rose 6.29 points, or 0.4%, to 1559.98. The Nasdaq Composite COMP 0.20% gained 6.38 points, or 0.2%, to 3224.98.

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Pound Slides Most in four years against the dollar by recession concerns

Pound Slides Most in four years against the dollar by recession concerns

Unknown   Friday, March 29, 2013

The pound had its biggest quarterly drop against the dollar in more than four years as the contraction of the economy in the three months to December fueled concerns of a recession unprecedented triple immersion.

Sterling declined against all but two of its 16 major counterparts in the quarter that ended yesterday. Gross domestic product fell 0.3 percent in the final three months of last year, the Office for National Statistics said in London in January and confirmed in the week.

The currency trimmed decreases the duration of the meeting of the Bank of England, the most recent policy damped speculation by more asset purchases as the financial crisis and the Cyprus boosted demand for UK assets as a haven.

"Sterling has been under pressure in the first quarter," said Henrik Gullberg, a currency strategist at Deutsche Bank AG in London. "The pound has recently gained some ground against the euro due to the situation in Cyprus. But it is unclear how long this recovery will last given the poor economic fundamentals and the outlook for the UK"

The pound fell 6.7 percent in the first quarter to $ 1.5172 at 4:56 pm London time yesterday, after falling on 12 March to $ 1.4832, the weakest since June 2010 . The fall in this quarter was the highest since the three months to December 2008. The British currency fell 3.9 percent against the euro in the past three months to 84.50 pence.

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Japan's Nikkei extends Kospi Second quarterly profit, Yuan Rise

Japan's Nikkei extends Kospi Second quarterly profit, Yuan Rise

Unknown   Friday, March 29, 2013

Japan's Nikkei 225 (NKY) extended their best back-to-back quarterly profit in four decades and the nation's long-term bonds rose amid expectations of economic stimulus. The yuan and South Korean stocks rose.

The Nikkei added 0.5 percent even as the broader Topix index fell 0.2 percent to 3 pm close in Tokyo. The MSCI Asia Pacific (MXAP) increased 0.1 percent, with many markets closed for a holiday.

Japan 20-year bond yields touched the lowest since 2003, and the yen is set for a monthly decline in betting BOJ sixth, Haruhiko Kuroda will hear the government's call to boost monetary easing as soon as next week. The yuan hit a high of 19.

Japan manufacturers point to a recovery in production this month after the deepest slide since the end of March 2011 an earthquake. Kuroda said this week the Bank of Japan could scrap a rule that limits the amount of asset purchases and collect longer maturity bonds to achieve an inflation target of 2 percent per year, adopted at the behest of Prime Minister Shinzo Abe.

"Japanese stocks have simply gone through a major adjustment, reaching populations overseas as government policies and the yen changed direction," said Isao Kubo, an equity strategist at Tokyo-based Nissay Asset Management Corp. , which oversees about 5 trillion yen ($ 53 billion). "The setting is not over yet and actions may extend gains a little more, as we see new political content."

Financial markets in the U.S. and Europe will be closed today for Good Friday. Much of Asia is also closed, including Hong Kong, Singapore, India, Australia, Indonesia, New Zealand, Philippines and Sri Lanka.

Kospi, Kuroda

Korea's Kospi index rose 0.6 percent, even as military tensions with North intensification. North Korean leader Kim Jong Un rockets yesterday ordered placed in standby mode, the state-controlled Korean Central News Agency said today. The won strengthened 0.2 percent to 1,111.35 per dollar, posting the best quarterly streak since September 2010.

The yen rose 0.1 percent to 94.04 per dollar at 5:02 pm in Tokyo, set to complete its longest stretch of monthly declines since 2001. The euro was little changed at $ 1.2815 against the dollar.

Japan's industrial output will rise by 1 percent in March, after falling 0.1 percent in February from the previous month, according to estimates made ​​by a Ministry of Commerce today. Year after year, the data showed that output fell 11 percent in February, while consumer prices, excluding fresh food fell 0.3 percent, in the absence of an increase in a 10th month.

Kuroda will chair his first meeting BOJ policy on 3-4 April. He said this week that the goal of achieving the price target of 2 percent in two years.

Japan 20-year bond yields slid government up to 4 1/2 basis points to 1.360 percent, and 30 years fell 6 basis points to 1.5 percent. Both were the least since July 2003. The 10-year rate rose five basis points to 0.56 percent.

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