Forex Trading News
Dollar, Euro, Pound & Yen

19:35 Friday 25 June, 2010

Latest CPI data out of Japan shows the economy is still suffering from deflationary pressures. Daniel Hui, FX strategist at HSBC, looks at what policies the BOJ must take to combat deflation, with CNBC's Oriel Morrison. He also believes the new yuan regime will involve more two-way volatility.

19:29 Friday 25 June, 2010

Those expecting a double-dip recession and a stock market crash will be disappointed, according to Credit Suisse analysts.

"Prices have fallen and value is returning to stocks," Giles Keating, head of research at Credit Suisse in London, told CNBC Friday.

"The world economy is slowing but will not fall off a cliff. The economy is still moving forward, equities will be OK going forward."

19:25 Friday 25 June, 2010

China's central bank set the midpoint of its daily trading range for the U.S. dollar at 6.7896 yuan Friday, reportedly a record low. The People's Bank of China's daily "central parity rate" -- from which the greenback is permitted to rise or fall a maximum of 0.5% -- compared to a 6.8100 yuan rate set Thursday. Friday's level marked a record modern low for the dollar's rate against the Chinese unit.

09:38 Friday 25 June, 2010

The marketing for the stock listing of Agricultural Bank of China kicked off on Thursday, setting the stage for what could be the biggest initial public offering the world has seen.

Agricultural Bank, a behemoth with 350 million customers and 24,000 branches that is focused on rural lending, is preparing a dual listing in Hong Kong and Shanghai next month.

The exact pricing for the shares is due to be announced around July 7, with a trading start about 10 days later. But the range now being proposed to investors indicated that the listing could raise as much as $25 billion.

That would make the long-awaited I.P.O. significantly larger than that of Industrial & Commercial Bank of China, another state-controlled Chinese bank, which raised $21.9 billion in October 2006.

09:34 Friday 25 June, 2010

Asian currencies could be about to break their long-standing link to the global industrial cycle and transform into good safe havens if the world economy heads for a new major slowdown, according to some analysts.

Though they have historically tracked movements in the U.S. ISM Manufacturing Index, analysts at Standard Chartered said Thursday that the region's currencies may decouple from this pattern in coming quarters, thanks to China's new currency policy.

"The [People's Bank of China] wants to show the market that the new yuan exchange rate is genuinely flexible and more market-driven than the previous framework," Standard Chartered analysts said Thursday in a note co-authored by Shanghai-based head of research for Greater China, Stephen Green.

08:29 Friday 25 June, 2010

Tracking the pulse of the American consumer, with Matthew Shay, National Retail Federation President & CEO.

08:25 Friday 25 June, 2010

Companies are spending again, and that could mean better economic times ahead.

Businesses have invested more money in machinery, computers, steel and other metals in three of the past four months. The uptick is fueling economic growth in the second quarter and may lead to more jobs later this year.

The growth in corporate spending comes at a critical time for the recovery. While the pace of layoffs slowed last week, the number of people seeking first-time jobless benefits remains about the same as in January and the unemployment rate has been stuck near double digits all year.

Consumers are more cautious about spending, the housing market is slumping without home-buying tax credits and the European debt crisis has rattled investors.

But none of that seems to have dampened companies' outlook for the rebound.

Corporate investment "is not only growing but accelerating, which is an encouraging sign that business remains in an expansive mindset," Michael Feroli, an economist at JPMorgan Chase, wrote in a note to clients.

08:22 Friday 25 June, 2010

Investors looking for ways to take advantage of China's decision to loosen its currency controls should think twice.

Despite the excitement earlier this week over a newly flexible yuan, any significant effects a stronger yuan may have on companies in the short-term have already been seen, and long-term effects will likely be negligible, analysts say.

The Chinese government's unwillingness to allow the currency to float freely and long-held expectations of the move will likely dampen any effect of revaluation. Investors wondering how to take advantage of the well-publicized move in the currency markets may be better off sticking with their current strategies.

"The market definitely overreacted and the story was overplayed," Standard & Poor's equity analyst Michael Souers said.

08:17 Friday 25 June, 2010

The U.S. dollar fell versus the euro on Thursday, after stocks headed south following a report on jobless claims and mildly better-than-expected data on U.S. durable-goods orders.

U.S. stock indexes fell after the data, as a weaker economic outlook weighed on equities and the fundamental outlook for the greenback.

The euro rose to $1.2333 from $1.2312 in late New York trading on Wednesday.

The dollar index, which tracks the U.S. unit against six major counterparts, declined to 85.730 from 85.82 late Wednesday.

08:12 Friday 25 June, 2010

A slide in the last hour of trading left the stock market with its second big loss of the week. Disappointing earnings dragged down a broad range of consumer-oriented stocks, and energy stocks sank amid continuing uncertainty over deepwater drilling.

The Dow Jones Industrial Average fell 145.64 points, or 1.4%, to 10,152.80, in a move that echoed Tuesday's 149-point drop. Pfizer Inc. was the measure's worst performer, down 2.8% after saying it would suspend osteoarthritis trials of its pain drug tanezumab.

"There's a risk-aversion trade coming into the market again, given all the risk factors that are out there," said Anthony Conroy, head trader at the brokerage BNY ConvergEx. "It's nerve-wracking. People are just in a capital-preservation mode."

Return to the top of this Forex Trading News - Dollar Euro Pound Yen page

Return to the Yen Forex Trading Home Page