Daily Market News By Fxnet

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Forex Daily Analysis - 14 Aug 2014

GBP/USD tumbled 103 focuses after remarks from Bank of England Governor to exchange at 1.6708 in the wake of hopping on better than anticipated employments information. The pound tumbled to a two-month low versus the dollar as merchants pushed back their desires for premium rate expands after the Bank of England cut its estimate for pay development. The British pound spiked quickly before tumbling.

AUD/USD added 13 points to trade at 0.9281 after a significant jump in consumer confidence. Weak economic data and a downbeat central bank statement dampened sentiment towards the Australian dollar recently, but one analyst told CNBC investors shouldn’t give up faith. The currency fell 2.6 percent from its July 1 year-to-date high of $0.9504 against the U.S. dollar to a two-month low of around $0.9236 last week amid rising unemployment and a weaker growth outlook.

USD/JPY gained 4 points to trade at 102.30 after Japanese GDP missed expectations. Gross domestic product shrunk by an annualized 6.8% in the three months ended June, Japan’s Cabinet Office said Wednesday. The result was actually better than the 7% contraction expected by economists. Government officials were more sanguine about Wednesday’s data. Economy Minister Akira Amari said the figure didn’t change the government’s outlook that the economy continues to improve steadily. He said the government would respond flexibly on the economy but added that he didn’t currently see a need to compile an additional budget.

Gold was directionless today, remaining flat in the Asian session and moving between small gains and losses during European trading to sell for 1310.20. The Federal Reserve is cutting debt purchases and contemplating interest-rate increases as the economy strengthens. The dollar was near a nine-month high versus the euro after data showed yesterday German investor confidence slumped and before a report today that may show U.S. retail sales increased for a sixth month.

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Fundamental Analysis August 15

EUR/USD recuperated 27 focuses to exchange at 1.3391 after a large number of blended information and a confounded ECB month to month report. The dollar gave back increases the greater part of the morning to trade at 81.53. Euro zone swelling will be weaker than long ago expected in the not so distant future and next, an overhauled review for the European Central Bank showed today, obscuring the euro zone's monetary standpoint.

GBP/USD is flat today holding at 1.6691 after disappointing inflation information and comments from the central bank on Wednesday. The BoE lowered its growth estimate for U.K. wages to 1.25% for the year, down from 2.5%, or half of the previous estimate; 2015 wage growth estimates were also revised downward.

AUD/USD eased by 8 points to trade at 0.9298 after iron ore prices tumbled to their weakest this month weighing on the Aussie. Earlier in June, the iron ore price dropped to as low as $US89 a ton, but despite a minor rebound since then year-to-date falls are still over 30 per cent. The latest downward move comes amid continued oversupply in the market due to increased supply from heavyweights like BHP Billiton and Rio Tinto and softer demand from China.

USD/JPY continued to rise as the US dollar gained momentum as traders overlooked weak US data but focused on a significant drop in Japanese GDP. The USDJPY is trading at 102.60 up by 17 points this morning. The Japanese Yen traded on a negative note and depreciated around 0.2 percent yesterday on the back of expectation that global policy makers will keep borrowing costs low for longer, damping demand for haven assets. The Yen touched an intra-day low of 102.36.Japan’s Core Machinery Orders gained 8.8 percent in June as against a fall of 19.5 percent in June.

Gold is moving between small gains and losses holding at 1315.80. Gold consumption fell by an annualized 16 percent in the second quarter of 2014 as Chinese and Indian buyers cut back on record purchases a year earlier, sector data showed.

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Daily Market News from FxNet June 2

After two weeks of gains the U.S. dollar reached its 12 and a half year high against the Japanese yen over the weekend, almost touching 125.00 yen a number it has not touched since 2002.

On Tuesday the USD/JPY pair added 0.08 percent and traded at 124.88.

Elsewhere the U.S. dollar was stronger than the Australian dollar which lost 76 U.S. cents for the first time in seven weeks. The Australian dollar remained at 0.7630 dollars ahead of the Reserve Bank of Australia (RBA) interest rate decision.

Overnight the Euro faltered against the strengthening dollar, and reached the low of 1.0886. Tuesday morning the Euro edged slightly higher with the EUR/USD pair adding 0.21 percent and trading at 1.0948.

The Euro despite its struggle with the ongoing Greece situation also rose against the Japanese yen with the EUR/JPY pair reaching a two week high of 136.62.

Expectations that the Organization of the Petroleum Exporting Countries (OPEC) would not cut output dampened oil prices. The Organization is set for a meeting on Friday to decide on a production strategy and whether it will cut back. Expectations are that it won’t.

Brent crude for July lost 0.57 cents on the Intercontinental Exchange (ICE) and was at 64.99 dollars a barrel.

Brent crude fell back to 64.85 dollars a barrel.

Gold futures for August on the Comex of the New York Mercantile Exchange added 0.04 percent to 1,189.20 dollars a troy ounce.

Silver for July delivery added 0.03 percent to 16.737 dollars a troy ounce.

Copper for July delivery added 0.11 percent to 2.717 dollars a pound.

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The Japanese Yen rose against its U.S. counterpart on Wednesday following comments by Bank of Japan (BOJ) Governor Haruhiko Kuroda saying the yen is not likely to get weaker. By Thursday the U.S. dollar rebound against the yen.

The USD/JPY pair added 0.46 percent and reached 123.19.

The AUD/USD added 0.21 percent on Thursday and reached 0.7793 as the Aussie was supported by positive data release.

The dollar also rose against the Euro with the EUR/USD pair falling to 1.1305. On Wednesday the pair traded in the range of 1.1264 and 1.1386. It was expected to find support at 1.0913 and resistance at 1.1450.

The U.S. dollar index which measures the currency against 6 other major currencies added 0.22 percent and was at 94.79.

Elsewhere the Australian dollar was also higher against the New Zealand dollar. The AUD/NSD pair added 2.62 percent and was at 1.1048.

The World Bank released its twice a year Global Economic Prospects report, and its prediction for the global economy was lower than its January prediction. While 6 months ago its prediction was for a 3 percent growth, it now reported a 2.8 percent expansion prediction.

On Thursday front month crude oil prices lost 11 cents and traded at 65.59 dollars a barrel.

U.S. crude lost 25 cents and was at 61.18 dollars a barrel.

Gold for August delivery on the Comex of the New York Mercantile Exchange lost 0.08 percent and was at 1,185.60 dollars a troy ounce.

Silver for July delivery added 0.15 percent and was at 15,983 dollars a troy ounce while copper for July delivery added 0.05 percent and was at 2,744 dollars a pound.

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The Euro was majorly affected by Greece’s meeting with its creditors that ended in a rejection of the proposal due to differences. Greece is ever close to the June 30th deadline by which it has to reach a deal to unlock funds and repay the International Monetary Fund (IMF) loan to avoid defaulting on its debt.

The Euro lost 0.18 percent against the yen and the EUR/JPY pair fell from 138.76 (Late Wednesday’s number) to 138.50. Even against the Japanese Yen the Euro was weaker and the EUR/JPY pair fell from 138.76 (Late Wednesday’s number) to 138.50.

The U.S. dollar was slightly weaker than the Japanese yen the USD/JPY pair fell to 123.56.

Against the British pound the dollar was also stronger and the GBP/USD pair lost 0.11 percent and traded at 1.5716.

The USD/CHF pair lost 0.11 percent and fell to 1.5716, the AUD/USD lost 0.54 percent and was at 0.7695.

The U.S. dollar index which measures the greenback against a basket of six currencies was slightly higher at 95.53.

Brent Crude for August delivery added 2 cents and was at 63.51 dollars a barrel.

“For today we continue to expect prices to move sideways with a strong resistance at 61.80 dollars and 65 dollars for West Texas Intermediate (WTI) and Brent, and support 50 dollars and 62.38 dollars” said Phillip Futures in a note.

Gold futures for August delivery added 0.26 percent on the Comex of the New York Mercantile Exchange and were at 1,176.00 dollars a troy ounce during Thursday’s morning European Trading hours. It was expected to find support at 1,162.10 dollars and resistance at 1,200.80 dollars.

Elsewhere on the Comex silver futures for July lost 0.08 percent and were at 15.84 dollars a troy ounce and Copper for July delivery lost 0.27 percent and was at 2.618 dollars a pound.

MSCI’s index of Asia Pacific shares outside Japan lost 0.3 percent. Japan’s Nikkei Stock index lost 0.5 percent. On Wednesday optimist around the Greek situation had pushed the index close to its t 20 year high.

European shares were also dimmed with Britain’s FTSE 100 opening 11 to 12 points lower, Germany’s DAX was expected to lose 41 points and France’s CAC 40 to lose 19 points.

On Thursday the FTSEurofirst 300 lost 0.5 percent and was at 1,569.82 points, Hennes & Mauritz lost 2.2 percent.

Elsewhere U.S. stock futures were higher by 0.2 percent in Thursday’s early Asian trade.

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Greek Prime Minister Alexis Tsipras is hoping to pass a second set of reforms required by the country’s lenders to kick start talks for another rescue package. Until Wednesday night the reforms must be accepted by the government but the bump in the way will be Tsipras’ anti-EU Syriza party who rebelled last week when the first set of reforms was passed, votes from pro-EU opposition parties including ‘To Potami’ and ‘Pasok’ who have both said they would support the prime minister helped the reforms pass.

The EUR/USD pair rose to its one week high. Adding 24 percent the pair reached 1.0960 and consolidated at 1.0962. It is expected to find support at 1.0853 and resistance at 1.1036.

The euro was lower than the British Pound, and the EUR/GBP pair lost 0.23 percent trading at 0.7016.

Against the yen the euro was higher with the EUR/JPY pair adding 0.37 percent to trade at 135.39.

The dollar index fell 0.7 percent from a three month high of 98.151 reached on Tuesday, down to 97.304 by Wednesday 05:30 GMT.

Against the yen the dollar was higher than its one month high, the USD/JPY pair reached 124.48 in morning trade, it consolidated at 124.22. The pair was expected to find support at 123.95 and resistance at 124.63.

The AUD/USD pair added 0.15 percent to trade at 0.7431.

The Australian dollar towered over its U.S. counterpart in trading as it was supported by high consumer price data and a positive economic survey.

A stronger dollar, big companies like OPEC maintaining high production and Iran’s close re-entry to the oil market have all been pushing oil prices lower.

West Texas Intermediary (WTI) for September delivery on the New York Mercantile Exchange lost 0.51 percent and traded at 50.60 dollars a barrel.

Brent Crude for September delivery on the Intercontinental Exchange (ICE) was at 56.34 dollars a barrel.

Gold for August delivery on the Comex of the New York Mercantile Exchange lost 0.99 percent and traded at 1.092.60 dollars a troy ounce.

Elsewhere on the Comex silver for September delivery lost 0.59 percent to trade at 14.698 dollars a troy ounce, while copper for September delivery lost 0.84 percent to trade at 2.455 dollars a pound.

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After rising on Tuesday, the euro was lower on Wednesday as Greece’s Syriza party urged for a new funding agreement and not a bridge loan.

The EUR/USD pair lost 0.13 percent to its lowest level since the 21^st of July at 1.0866.

The bank sector share index FTATBNK in Athens’ Stock Exchange lost 14.8 percent in early deals on Tuesday. Athens bourse’s benchmark general index ATG traded 1.28 percent lower after losing 1.2 percent on Tuesday.

The U.S. dollar which saw some losses on Tuesday rallies against the euro on Wednesday following comments from Atlanta Fed President which supported a September rate hike.

The USD/JPY pair was little changed at 124.39. The AUD/USD pair lost 0.46 percent to 0.7345. The pair was expected to find support at 0.7261 and resistance at 0.7429.

The U.S. dollar index which measures the greenback against a basket of six major currencies hit its three and a half months high at 98.218 before settling at 98.096.

Later in the day U.S. ADP job reports for July and ISM service sector activity will be released.

The AUD/NZD pair lost 0.21 percent trading at 1.1263.

Brent oil for September delivery on the New York Mercantile Exchange added 1.06 percent to 50.52 dollars a barrel.

Crude oil for September delivery on the New York Mercantile Exchange added 0.97 percent and traded at 46.19 dollars a barrel during European morning hours.

Gold futures on the Comex of the New York Mercantile Exchange for September delivery tumbled 0.35 percent to 1,086.90 dollars a troy ounce during Wednesday’s morning European hours.

Silver on the Comex for September delivery lost 0.36 percent falling to 14.50 dollars a troy ounce while copper, which fell to its six year low earlier this week, lost 0.63 percent and traded at 2.347 dollars a pound.

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The Euro was higher reaching its two week high after the People’s Bank of China (PBOC) further devalued its yuan making the currency 4 percent lower in two days.

The EUR/USD added 0.67 percent to 1.1115, its highest level since the 27^th of July, The EUR/CNY added 2.5 percent to 7.15.

All currencies were affected by the change; the USD/JPY lost 0.52 percent to 124.45, AUD/USD lost 0.53 percent to 0.7266 and NZD/USD lost 0.14 percent to 0.6526.

Elsewhere the International Energy Agency’s (IEA) monthly report showed that its demand growth outlook for 2016 is much higher with expectations for OPEC to lower it supply growth.

U.S. crude fell below the 50 dollar benchmark at 42.99 dollars per barrel while Brent futures were down to 48.92 dollars per barrel.

Gold futures for December delivery added 0.96 percent on the Comex of the New York Mercantile Exchange and traded at 1,118.30 dollars a troy ounce.

Copper prices fell 1.05 percent to 2.307 dollars a pound. Silver futures for September delivery on the Comex of the New York Mercantile Exchange lost 1.05 percent to 2.307 dollars a pound during morning European trading hours.

[Guest FxNet]

The US dollar was higher against the euro and yen for the second consecutive day after having lost momentum on Monday amidst china’s market decline. The dollar was mainly supported by a positive consumer confidence index. Markets were broadly affected by The People’s Bank of China’s (PBOC) decision to cut interest rates late on Tuesday and lower the amount of reserves that the banks must hold in an attempt to save the market from collapsing. The Chinese market had lost almost 20 percent in three days.

The U.S. Conference Board said on Tuesday that its index of consumer confidence was at its seven months high at 101.5 for August after being at 91.0 in July.

The USD/JPY pair was 0.5 percent higher at 119.5 and EUR/USD lost 0.18 percent to 1.1499.

NZD/USD added 0.29 percent trading at 0.6493, the pair was expected to find support at 0.6423 and resistance at 0.6567.

The AUD/NZD pair was also lower losing 0.37 percent and trading at 1.0972. The Kiwi was supported by a positive trade balance.

EUR/NZD lost 0.55 percent to trade at 1.7692.

The U.S. dollar index which measures the greenback against a basket of six other major currencies added 0.18 percent to trade at 94.09 recovering from Monday’s 92.52.

Brent for October delivery on the ICE Futures Exchange in London was 25 cents higher at 43.46 dollars a barrel and U.S. Crude for October delivery on the New York Mercantile Exchange was 26 cents higher at 39.57 dollars a barrel.

Gold futures for December delivery on the Comex of the New York Mercantile Exchange added 0.37 percent to 1,142.50 dollars a troy ounce during U.S. morning trading hours on Wednesday. Overnight gold prices had fallen sharply as the dollar gained strength following a positive U.S. consumer report.

Elsewhere on the Comex silver futures added 0.34 percent to 14.660 dollars a troy ounce and copper futures lost 0.20 percent to 2.259 dollars a pound after having fallen to 2.209 on Tuesday their lowest level in six years.

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The dollar rebound from yesterday’s slump and gained momentum despite ongoing concerns over China’s economic slowdown and, US small business borrowing falling for July.

Economic reports on Tuesday showed that manufacturing activity in China contracted at its fastest rate in three years for August, and the service sector activity was also slower raising concerns about global health as the world’s second largest economy shrinks.

The USD/JPY pair adding 0.53 percent to trade at 119.97. EUR/USD lost 0.46 percent trading at 1.1265, after the euro had gained against the dollar on Tuesday as manufacturing activity in Europe was seen weaker than expected.

NZD/USD added 0.47 percent during early Asian trade hitting 0.6369 and consolidating at 0.6360. The pair was expected to find support at 0.6244 and resistance at 0.6481.

AUD/USD added 0.33 percent to 0.7039 after the Australian Bureau of Statistics reported that the country’s Gross Domestic Product (GDP) added 0.2 percent for its second quarter, lower than expectations of a 0.4 percent growth and after a 0.9 percent expansion in the first quarter. The AUD/USD pair was expected to find support at 0.6854 and resistance at 0.7156.

The British Pound was at its 3 month lows after the release of the Markit construction purchasing managers’ index which had gone up to 57.3 for August from July’s 57.1 but failed to reach the expected 57.5. The index still indicated expansion as it read above 50.0.

GBP/USD was at 1.5291 from last night’s 1.5271.

The U.S. dollar index which measures the greenback against a basket of six other major currencies added 0.32 percent to trade at 95.70.

Investors are looking ahead for Friday’s U.S. non-farm payrolls. “U.S. payrolls will be the focus, but I doubt it will change the current debate over whether the Federal Reserve will hike rates in the near term or not” said Alvin Tan from Societe Generale.

Expectations are on a job growth of 220,000 for August, after July’s 215,000 increase in July. Unemployment rate is expected to fall from 5.3 percent to 5.2 percent.

Crude oil for October delivery was 2.2 percent lower on the New York Mercantile Exchange trading at 44.41 dollars a barrel during European morning trading hours, and once again falling below the 50 dollar benchmark.

Brent Oil for October delivery on the ICE Futures Exchange in London lost 1.8 percent to trade at 48.67 dollars a barrel. On Tuesday Brent had already lost 8.48 percent.

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The U.S. dollar fell against the Euro for five consecutive sessions despite a positive survey which showed good US job data. Euro gains have been accumulating over the past month giving the shared currency a monthly boost of 2.2 percent against its U.S. counterpart. Gains however have been modest with the strongest gain of the month being 0.30 percent.

EUR/USD traded between 1.1132 and 1.1217 overnight, by Early Asian trading on Thursday the pair settled at 1.1207, a 0.03 percent gain. The pair is expected to find support at 1.1086 and resistance at 1.1562.

Despite underperforming against the Euro the dollar was supported by the U.S. Labour Department that said on Wednesday in its Job Openings and Labour Turnover Survey that nationwide openings increased in July, reaching 5.8 million. In May the survey had hit 5.4 million and for July it hit a new record which is the highest in the 15 year history of surveys.

The job openings rate added 3.9 percent in July, after being at 3.6 percent for three months. This report balances out last Friday’s disappointing nonfarm payroll report.

USD/CAD added 0.36 percent to 1.3255, after the Bank of Canada (BOC) decided to keep its interest rates on the same level, USD/JPY added 0.58 percent closing at 120.50, the yen was affected by an unexpected fall of Japan’s key gauge of capital spending, this was its second consecutive fall in the last two months which highlights the economy’s weakness.

NZD/USD lost 1.82 percent trading at 0.6278 while AUD/USD lost 0.78 percent trading at 0.6963. The Aussie was affected by the overall employment rate fall which dropped to 6.2 percent from 6.3 with the addition of 11,500 jobs.

China’s struggling market saw further negativity, when China’s consumer inflation in August was higher, but producer prices fell for the forty second straight month keeping the country at risk of deflation.

With big slowdowns in the world’s second and third largest economies, global growth forecasts by ANZ bank were revised for the years 2016 and 2017 dropping the growth rate to 3.5 percent instead of the 4 percent which had been previously predicted.

The U.S. dollar index which measures the greenback’s strength against a basket of six major currencies lost 0.14 percent to 95.83.

West Texas Intermediate (WTI) crude for October delivery lost 0.05 percent on the New York Mercantile Exchange falling to 44.19 dollars a barrel.

Brent Crude for October delivery on the Intercontinental Exchange (ICE) lost 3.86 percent trading at 47.62 dollars a barrel.

Gold for December delivery added 0.33 percent on the Comex of the New York Mercantile Exchange trading at 1,105.60 dollars a troy ounce.

Silver futures for December delivery lost 0.04 percent to trade at 14.570 dollars a troy ounce.

Copper for December delivery added 0.39 percent to 2.432 dollars a pound.

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The U.S. dollar which was weaker than most currencies for the past week saw some small gains as all eyes turn to the Fed meeting which begins today and ends tomorrow, and will announce interest rates decisions.

EUR/USD fell on Tuesday afternoon tumbling below the 1.13 level for the first time in four sessions.

The pair traded between 1.1259 and 1.1321 during Tuesday's session, it settled at 1.1269, 0.48 percent lower. EUR/USD was expected to find support at 1.1017 and resistance at 1.1562. Previously the Euro had been gaining for eight straight days before breaking the cycle on Tuesday as markets anticipated the Fed Meeting which convenes today and will go on till tomorrow.

Data released on Tuesday showed a 0.2 percent increase in retail sales for August which fell short from the 0.3 percent increase expectations. Core retail sales excluding automobiles added 0.1 percent in August lower than the expected 0.2 percent. US industrial production fell by 0.4 percent for August more than the expected 0.2 percent decline.

Last night AUD/USD lost 0.10 percent trading at 0.7134, while USD/JPY lost 0.05 percent to 120.36.

The U.S. dollar index which measures the greenback against the basket of six major currencies added 0.06 percent to 95.70 on Tuesday evening.

US West Texas Intermediate (WTI) crude added 32 cents on Wednesday on the New York Mercantile Exchange trading at 44.91 dollars per barrel, while Brent futures on the ICE futures exchange added 9 cents trading at 47.84 dollars a barrel.

US crude was supported by the American Petroleum Institute's (API) announcement that there has been a 3.1 million barrel decline in crude inventories instead of expectations for a rise. Official data will be released later in the day.

Gold futures for December delivery on the Comex of the New York Mercantile Exchange added 0.14 percent trading at 1,104.10 dollars a troy ounce.

Silver futures on the Comex added 0.10 percent trading at 14.340 dollars a troy ounce, while copper for December delivery lost 0.10 percent to 2.425 dollars a pound.

[Guest FxNet]

The US dollar was steady to lower on Tuesday after recovering losses on Monday. Market volatility surrounding the Fed’s interest rate hike decision was the leading reason behind most currency movements, and now the Fed is coming under attack for prompting uncertainty.

EUR/USD lost 0.17 percent trading at 1.1172, its lowest level since September 9th.

Australia's second quarter house price index rose by 4.7 percent, higher than the 2.5 percent quarter on quarter rise. AUD/USD added 0.13 percent trading at 0.7140. The US dollar held strong despite yesterday's disappointing housing data report. USD/JPY lost 0.16 percent to 120.37.

The National Association of Realtors said on Monday that existing home sales lost 4.8 percent to an annual rate of 5.31 million units. Expectations were on a 5.51 million unit pace of home sales for August. From a year ago sales were up 6.2 percent. Nationwide the median home price fell slightly in August to 228,700 dollars, 4.7 percent higher than a year earlier but left the year over year rate at its lowest since August 2014. In the West, prices were up by 7.1.

The US dollar index which measures the greenbacks’ strength against a basket of six major currencies lost 0.07 percent overnight to 95.97 then rose to 96.15.

Overnight West Texas Intermediate (WTI) crude futures lost 48 cents trading at 46.20 dollars per barrel, while Brent futures were 45 cents lower at 48.47 dollars a barrel. Prices fell after surging on Monday following a decline in US rigs drilling for oil. Prices are expected to rise according to Reuters analyst Wang Tao, who says Brent will rise to 49.70 dollars per barrel and WTI could reach 47.78 based on Fibonacci retracement indicators.

Gold futures for December delivery on the Comex of the New York Mercantile Exchnage traded at 1,133 dollars a troy ounce. Silver for December delivery lost 0.24 percent to 15.185 dollars a troy ounce, while Copper for December lost 0.27 percent to 2.383 dollars a pound.

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EUR/USD fell late on Tuesday trading between 1.1114 and 1.1207 before settling at 1.1132, 0.51 percent lower for the session. This comes after the pair had gained for eight straight sessions. The pair was expected to find support at 1.1086 and resistance at 1.1713.

China's Caixin Manufacturing index for September fell to 47 from August's 47.3, falling to a 78 month low. In response the Aussie fell weaker as Australia is China's biggest importing partner, AUD/USD lost 21 percent trading at 0.7075 late on Tuesday, while USD/JPY added 0.05 percent to 120.22.

The US dollar index was 0.15 percent higher at 96.64.

The Asia Development Bank (ADB) lowered its 2015 economic growth projections for China from 7.2 percent to 6.8 percent. The bank also revised its economic growth expectations for India from 7.8 percent to 7.4 percent. Economic growth for the entire Asian region was reduced from 6.3 percent to 5.8 percent, as for the Southeast Asian Region forecast was lowered to 4.4 from 4.9.

Gold futures for December delivery on the Comex of the New York Mercantile Exchange lost 0.12 percent trading at 1.123.50 dollars a troy ounce following the drop in China's Manufacturing Index (considering china is one of the world's largest gold importers). Silver for December lost 0.24 percent to 14.720 dollars a troy ounce, while copper for December delivery lost 0.39 percent to 2.295 dollars a pound understandable as China accounts for approximately 40 percent of all copper consumption in the world.

The American Petroleum Institute (API) said that crude stocks were lower by 3.7 million barrels for last week better than the expected 700,000 barrel drop.

West Texas Intermediate (WTI) crude for November lost 0.33 percent trading at 46.20 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery on the Intercontinental Exchange (ICE) traded between 47.70 and 49.17 dollars a barrel before settling at 49.03 dollars, 0.22 percent higher for the day. Later in the day the US Department of Energy will release numbers on crude and refined product stockpiles.

[Guest FxNet]

Markets were mainly affected by European Central Bank (ECB) President Mario Draghi’s speech. Draghi spoke in Brussels before the European Parliament's Committee on Economic and Monetary Affairs on Wednesday saying that the future of the quantitative easing program is difficult to forecast.

"more time is needed to determine whether the loss of growth momentum in emerging markets is of a temporary or permanent nature and to assess the driving forces behind recent episodes of severe financial turbulence" he said.

Following Draghi's speech EUR/USD added 0.44 percent to 1.1105 and was expected to find support at 1.1086 and resistance at 1.1209. EUR/NZD lost 0.17 percent to 1.7785. EUR/GBP lost 0.2 percent to 73.29 pence.

Elsewhere total British car production rose almost 41 percent to 99.919 cars for August according to the Society of Motor Manufacturers and Traders (SMMT).

The greenback was 0.2 percent lower than the Japanese yen in early Asian trading on Thursday at 120.03 yen.

AUD/USD remained close to its two and a half week lows at 0.6992 consolidating at 0.6997. The pair was expected to find support at 0.6942 and resistance at 0.7095.

NZD/USD added 0.26% to 0.6294. The pair was expected to find support at 0.6233 and resistance at 0.6405.

New Zealand's trade balance for August widened to a deficit of 1.035 billion NZ dollars month on month, higher than the 850 million NZ dollars deficit seen. Late on Wednesday NZD/USD added 0.17 percent to 0.6287.

The US dollar index which measures the greenback against a basket of six major currencies was up 0.1 percent during Thursday’s early Asian trade at 96.173; still below Wednesday’s two and a half week high of 96.548.

The Energy Information Administration (EIA) released data on Wednesday showing that U.S. crude oil stocks were 1.9 million barrels lower for the week ending September 18th more than expectations of a 533,000 barrels decrease.

Oil prices gained momentum following the bullish news with Brent climbing 29 cents to 48.04 dollars a barrel. US Crude added 33 cents to 44.81 dollars a barrel.

Gold futures for December delivery on the Comex of the New York Mercantile Exchange lost 0.04 percent trading at 1,131.00 dollars a troy ounce. Elsewhere on the Comex Silver for December delivery added 0.04 percent to 14.795 dollars a troy ounce while Copper for December added 0.21 percent to 2.299 dollars a pound.

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Research group Markit said that the seasonally adjusted Markit/CIPS Service Purchasing Managers Index increased to 54.9 last month from 53.3 in September. Expectations were for the index to rise to 54.9.

GBP/USD rose to 1.5432 from 1.5416 after the release of the report, while EUR/GBP rose to 0.7080 from 0.7087.

Markit surveys showed that quarterly economic growth in the Eurozone was around 0.4 percent as expected by a Reuters poll which was published in October. Markit’s final October Composite Purchasing Managers’ Index (PMI) came in at 53.9, less that the expected 54.0.

EUR/USD lost 0.34 percent to 1.0926 and EUR/JPY lost 0.25 percent to 132.4.

NZD/USD hit 0.6633 during late Asian trade and consolidated at 0.6658 0.09 percent lower. The pair was expected to find support at 0.6618 and resistance at 0.6782.

Statistics New Zealand reported on Tuesday that the number of employed people by 0.4 percent in the third quarter confounding expectations for a 0.4 percent rise after a 0.3 percent gain in the second quarter.

The U.S. will release later Wednesday ADP jobs reports for October and trade balance data while the Institute of Supply Management will release its report on service sector growth for October, while on Friday US nonfarm payrolls will be released and expectations are on a growth of 182,000 jobs in October after an increase of 142,000 in September, while unemployment is expected to be steady at 5.1 percent.

In addition, Fed Chair Janet Yellen will appear before a congressional committee on Wednesday to testify on the U.S. central bank's role in overseeing the country's financial system.

The US dollar index which measures the greenback against a basket of six major currencies was up 0.24 percent the 97.50.

Crude oil for December delivery lost 0.56 percent on the New York Mercantile Exchange trading at 47.63 dollars a barrel during European morning hours. A day earlier oil on the NYMEX added 3.81 percent.

Brent for December delivery on the ICE Futures exchange in London lost 0.95 percent trading at 50.06 dollars a barrel. On Tuesday Brent prices added 3.59 percent.

Gold for December delivery on the Comex of the New York Mercantile Exchange added 0.41 percent trading at 1,118.70 dollars a troy ounce during European morning hours.

Elsewhere on the Comex copper for December delivery added 0.38 percent to 2.350 dollars a pound.

[Guest FxNet]

AUSSIE REMAINS STEADY, GREENBACK GAINS
Chinese trade data still pressuring markets

Following the release of Australian consumer sentiment data, the aussie was slightly changed on Wednesday, as the kiwi slid down among worldwide concerns.

Markets were broadly affected by low Chinese trade data, which on Tuesday showed that china’s exports fell 24.4% instead of expectations of a 12.5% decrease, China being one of the world’s biggest importers tends to rattle markets when disappointing data comes through.

AUD/USD was trading at 0.7431.

According to The Westpac Banking Corporation, Australia’s consumer sentiment declined 2.2% in March, after a 4.2% rise last month.

Another report showed that home loans fell 3.9% in January, much higher than initial expectations of a 2.3% decline. A revised figure showed that December home loans had gained 2.7%, instead of the initially reported 2.6% gain.

NZD/USD fell 0.21% to trade at 0.7431, investors are looking ahead to the Reserve Bank of New Zealand’s (RBNZ) interest rate decision, expected on Thursday.

Later in the day the RBNZ will release its Official Cash Rate, and Monetary Policy Statement followed by a press conference and a speech by Governor Wheeler.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.21% at 97.36, off the last session’s two-week low of 96.89.

The US will release wholesale inventories month on month later today.

[Guest FxNet]

AUSSIE AND KIWI DROP FOLLOWING RBNZ RATE CUTS

China’s slowing economy continues to have a global effect

Aussie and kiwi fell against the US dollar on Thursday, after the Reserve Bank of New Zealand’s (RBNZ) sudden decision to lower interest rates and make further cuts.

NZD/USD moved down 0.21% to 0.6638.

Although analysts thought the central bank would not change rates, the RNBZ decided to lower its benchmark interest rate to 2.25% from 2.50% at its monthly policy, resulting the New Zealand dollar’s decline.

With reference to the bank’s decision, RNBZ governor Graeme Wheeler pointed out that China is a major risk to global growth and inflation, since a possible slowdown in the Chinese economy could have a worldwide effect.

Furthermore, the central bank signaled the possibility for further cuts to be made in the near future, depending on upcoming economic data in the country.

AUD/USD dropped 0.24% to trade at 0.7467, not far from last session’s eight month high of 0.7527.

For the time being, investors stayed cautious regarding the European Central Bank’s policy decision due later in the day, amongst expectations for further easing measures to be announced.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.25% at 97.43.

[Guest FxNet]

ECB CUTS INTEREST RATES TO A RECORD LOW

Euro dips as markets react to ECB decisions – USD seen higher

The greenback gained against the euro as markets reeled in the aftermath of the European Central Bank’s (ECB) decision to cut interest rates, and comments by ECB president Mario Draghi.

The euro saw a sharp decline following ECB announcements, EUR/USD lost 0.16 percent to 1.1161 from the previous session’s high of 1.1217. EUR/GBP lost 0.14 percent to 0.7816.

Markets were broadly affected when the ECB announced its decision to cut interest rates across the Eurozone to a new record low of zero from its previously held level of 0.05 percent. The bank also cut the deposit facility rate deeper into negative territory to minus 0.4 percent and cut the marginal lending rate cut to 0.24 percent from 3.30 percent.

The ECB also increased its quantitative easing program from 20 billion dollars per month to 80 billion, a decision which will be implemented in April.

Draghi told reporters in a news conference “Rates will stay low, very low, for a long period of time and well past the horizon of our purchases. From today’s perspective and taking into account the support of our measures to growth and inflation, we don’t anticipate that it will be necessary to reduce rates further”.

The US dollar on the other hand was supported by a positive job report released by the Department of Labour which showed that the number of individuals filing for initial jobless benefits in the week ending 5th of March was lower by 18,000 to 295,000 from the previous week’s total of 277,000.

After indications that a further rate hike will not happen any time soon, recent data has set the market back on track with the Fed’s overall outlook and returned the possibility of a rate hike in the near future.

"Financial markets for a while were completely out in the weeds, running around looking at things that turned out not to be real risk," said Torsten Slok, chief international economist at Deutsche Bank.

Fed policymakers meet on March 15th and 16th. They are expected to hold interest rates steady and are seen likely nudging down their expectations to three hikes for 2016.

[Guest FxNet]

AUSSIE FALLS LOWER AGAINST US DOLLAR, KIWI REMAINS STEADY

The Aussie fell against the US dollar this Wednesday, as the kiwi remained steady while investors looked forward to the Federal Reserve’s policy decision later on Wednesday.

AUD/USD fell 0.15% to 0.7447.

Investors anticipated the outcome of the Fed’s policy meeting later in the day, as it was expected that there will be no change since there were signs of weakness in global economy. Furthermore, investors awaited the release of US housing sector and inflation reports for further signs on the growth of the economy.

NZD/USD was little changed at 0.6605.

The greenback slipped following the US Commerce Department’s report last week which showed a decline in retail sales and producer prices the previous month.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.20% at 96.85.