Forex Trading News
Dollar, Euro, Pound & Yen

00:05 Saturday 3 July, 2010

Global stocks advanced, while Treasuries and the dollar fell, as an increase in private American payrolls eased concern that the job market in the world’s largest economy will worsen.

The MSCI World Index of stocks in 24 developed nations rose 0.5 percent at 10:41 a.m. in New York. The Standard & Poor’s 500 Index, which slid to a nine-month low yesterday, was little changed at 1,027.01 at 10:38 a.m. in New York and drifted in a range from a gain of 0.5 percent to a drop of 0.3 percent. The ten-year Treasury yield increased two basis points to 2.97 percent and the Dollar Index, which gauges the currency against six major trading partners, retreated 0.6 percent to 84.263.

Today’s jobs report wasn’t enough to extend the recent plunge in equities that threatened to drag the S&P 500 into a bear market and sent 10-year Treasury yields to the lowest level in 14 months. While the 83,000 jobs added by companies in June trailed the median economist estimate of 110,000, investors had braced for a lower number after ADP Employer Services estimated that companies added 13,000 jobs last month.

“We were priced for Armageddon and we didn’t get it,” said Burt White, who helps oversee $284 billion as chief investment officer at LPL Financial Corp. in Boston. “The question here is whether the apple is rotten or just bruised. We think it’s just bruised.”

22:51 Friday 2 July, 2010

China allowing the yuan to resume its appreciation against the dollar is overall, very positive for the markets, says Yang Liu, co-chairman, Atlantis Investment Management. She tells CNBC's Karen Tso & Bernard Lo how to profit from a rising yuan.

22:46 Friday 2 July, 2010

The unemployment report released by the government on Friday wasn't as grim as it might have been, but it still showed that the pace of the U.S. economic recovery has slowed in recent weeks.

Total nonfarm payroll employment fell by 125,000 in June as the number of temporary census workers dropped by 225,000, according to the Labor Department. This is the first decline in nonfarm payrolls this year.

There was only modest hiring of workers in the private sector in June.

Private hiring edged up by a disappointing 83,000 in June from a revised 33,000 increase in May, originally reported as a 41,000 gain.

"We do not view this report as pointing to a double dip in the economy, but it does suggest a downshift in the pace of growth," wrote the economic team at RDQ Economics in a note to clients.

22:41 Friday 2 July, 2010

Treasuries were little changed as the U.S. payrolls report showed employers cut jobs in June, adding to concern the economy is falling back into recession.

The two-year note’s yield was within five basis points of its all-time low as private employers added fewer positions than economists forecast. The extra yield investors demand to hold 10-year notes over the shorter maturity fell for a fifth day in the longest stretch of decreases since May on heightened deflation concern.

“We have reached an area where we have priced in a lot of the bad news,” said David Ader, head of government bond strategy in Stamford, Connecticut, at CRT Capital Group LLC.

19:20 Friday 2 July, 2010

Employment fell in June for the first time this year, reflecting a drop in federal census workers as the decennial population count began to wind down, economists said before a report today.

Payrolls declined by 130,000 last month, according to the median estimate of 82 economists surveyed by Bloomberg News. Private employment, which excludes government jobs, rose for a sixth consecutive month, the survey showed.

The pace of hiring signals it will take years for the world’s largest economy to recover the more than 8 million jobs lost during the recession that began in December 2007. The turmoil in financial markets brought on by the European debt crisis raises the risk that employment will slow, depriving American households of the income needed to maintain spending.

“The recovery downshifted a gear in recent months,” said David Resler, chief economist at Nomura Securities International Inc. in New York. Payroll gains will probably be “consistent with moderate growth in income and spending.”

17:42 Friday 2 July, 2010

The June jobs report Friday could provide more fuel for bears, even as economists hold onto the view that the economy is not double-dipping.

Economists expect a negative headline number on June's non-farm payrolls because of the elimination of temporary government census jobs, but they expect private payrolls to increase by about 110,000, compared to last month's 41,000.

Stocks were lower again Thursday but closed well above the lows of the day, as investors continued to put money into bonds and fretted about more disappointing U.S. economic news. Pending home sales were down 30 percent; jobless claims unexpectedly increased, and the ISM, while still a strong number at 56.2, was below expectations.

Even Former Fed Chairman Alan Greenspan weighed in on the topic, on "Squawk Box" Thursday. "What we are looking at is an invisible wall in which we have run into here, which essentially as far as I can see is a typical pause that occurs in an economic recovery," said Greenspan.

17:34 Friday 2 July, 2010

Miners and automakers helped European shares climb from multi-week lows on Friday, although gains were limited ahead of key U.S. jobs data.

On Thursday, the index ended with a loss of 2.5%, a five-and-a-half week low. That capped a three-session losing streak where the index shed 5.6% as worries about the global economy gathered pace.

Friday's U.S. jobs data, due in the afternoon for European investors, is expected to provide a datapoint for investors to try and gauge the strength of the U.S. economy.

13:26 Friday 2 July, 2010

The new tax deal announced today will benefit Australia's big miners, as well as junior players, says Martin Ferguson, resources minister of Australia. He sheds more light on the changes made, with CNBC's Karen Tso, Bernard Lo & Mathew Taylor.

13:32 Friday 2 July, 2010

Crude-oil futures fell for a fourth consecutive session Thursday as a string of worrying macroeconomic reports stoked fears of a slowdown in global economic growth and thus in energy demand.

Manufacturing and housing reports and, earlier in the day, weak manufacturing data out of China and a surprise increase in the number of people filing jobless claims in the U.S. knocked down oil and nearly every other major asset.

Light sweet crude for August delivery dropped $2.68, or 3.5%, to $72.95 a barrel on the New York Mercantile Exchange. It sent oil back to levels last seen in early June and it was oil biggest one-day drop since June 4.

"The starts were all aligned for this type of plunge," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Ill. "We're in for a weak July ... there's simply too little demand and too much supply."

13:26 Friday 2 July, 2010

The currencies of Asia’s commodity- producing nations strengthened and shares of BHP Billiton Ltd. advanced after Australia reached a compromise with mining companies on a new resources tax. Copper led metals prices higher following the U.S. dollar’s biggest drop since March.

The Australian and New Zealand dollars were the best performers among the world’s 16 most-used currencies, rising 0.8 percent and 0.7 percent, respectively, as of 11:45 a.m. in Tokyo. The MSCI Asia Pacific Index climbed 0.2 percent, with a measure of raw-materials producers gaining the most among 10 industry groups. Futures for the Standard & Poor’s 500 Index rose 0.5 percent before U.S. jobs data today.

Australian Prime Minister Julia Gillard agreed on a new resources tax with the mining industry, ending a dispute that last month cost her predecessor his job. Gains were muted before U.S. nonfarm payrolls figures, which economists predict will show employment in the world’s biggest economy fell last month for the first time this year.

“The mining tax agreement is obviously a positive for Australia,” said Tony Allen, head of currency trading at ANZ National Bank Ltd. in Wellington. “The Aussie and kiwi will be focused on the bigger number which is non-farm payrolls, and how that plays out will dictate their performance from here.”

11:25 Friday 2 July, 2010

11:20 Friday 2 July, 2010

Asian stocks fluctuated as U.S. reports on manufacturing, employment and home sales fueled concerns about economic growth and damped an early rally led by mining companies.

Honda Motor Co. sank 0.6 percent in Tokyo as U.S. sales data showed Japanese and South Korean companies lost ground to U.S.-based competitors. BHP Billiton Ltd. and Rio Tinto Group, the world’s biggest and third-biggest mining companies, advanced at least 0.8 percent in Sydney after saying they were encouraged by a new resources tax structure negotiated with Australian Prime Minister Julia Gillard.

About four stocks advanced for every three that rose on the MSCI Asia Pacific Index, which was little changed at 111.98 as of 10:21 a.m. in Tokyo. Measures of materials and energy stocks in gauge climbed the most of 10 industry groups after the mining tax announcement this morning.

“This issue was hanging over the sector for some time so it’s a welcome relief,” said Prasad Patkar, who helps manage about $1.4 billion in Sydney at Platypus Asset Management Ltd.“Hopefully, this was an aberration in an otherwise investor-friendly policy environment enjoyed in Australia, and that that is how the investment community looks at things going forward.”

11:16 Friday 2 July, 2010

The yen fell for a third day against the euro as the Australian government’s agreement with miners for changes to a proposed resources tax supported stocks, boosting demand for riskier investments.

The yen weakened against 11 of its 16 major counterparts after Australia’s government said the mineral resources tax will be 30 percent, applying to iron ore and coal, while the levy on oil and gas projects will be 40 percent. The euro headed for a weekly gain versus the dollar on signs that funding pressures are easing on countries and financial institutions in the 16-nation region.

“Stocks are firm, which is sparking some appetite for risk,” said Masanobu Ishikawa, general manager of foreign exchange at Tokyo Forex & Ueda Harlow Ltd., Japan’s largest currency broker. “The yen is being sold.”

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