Forex Trading News
Dollar, Euro, Pound & Yen

23:05 Wednesday 7 July, 2010

The price of gold could go as high as $1,500 per ounce in a sudden spike, according to John Meyer from Fairfax IS. Nick Parson from National Australia Bank joined the discussion.

23:01 Wednesday 7 July, 2010

The dollar and Japan's yen rose Wednesday as foreign-exchange markets took a cue from mostly sagging equity markets, leaving the lower-yielding currencies as beneficiaries as investors sought safety from the unknown in riskier assets.

The dollar index, a measure tracking the performance of the greenback against a basket of six major currencies, rose to 84.201, up from 84.113 late Tuesday.

22:56 Wednesday 7 July, 2010

U.S. stock futures drifted between gains and losses a day after the Dow Jones Industrial Average snapped its longest losing streak since 2008 as investors weighed prospects for the upcoming earnings season.

State Street Corp., the third-largest U.S. custody bank, rallied 8.2 percent after saying it swung to a second-quarter profit. Citigroup Inc. and Wells Fargo & Co. also climbed. Hewlett-Packard Co., the world’s largest maker of personal computers, and Pfizer Inc., the biggest drugmaker, dropped at least 0.8 percent.

“There’s not a lot of selling pressure and there’s not a lot of buying pressure either,” said Mark Bronzo, an Irvington, New York-based fund manager at Security Global Investors, which oversees $23 billion. “The market got killed and seems oversold. Many people are expecting second-quarter numbers to be good. However, there are lots of doubts about guidance especially in light of the most recent economic data points.”

15:19 Wednesday 7 July, 2010

Adrian Foster, head of financial markets research, Asia Pacific, Rabobank sees the euro falling to 1.16 over the next 3 months on uncertainity over sovereign debt risks. He speaks to CNBC's Chloe Cho about challenges facing the currency markets.

15:15 Wednesday 7 July, 2010

The dollar regained some ground against the euro and other risk-sensitive currencies in Asia Wednesday as weak regional share markets prompted hedge funds and other short-term investors to buy back the safe-haven U.S. unit.

But the currency failed to gain back all the losses it suffered overnight after the release of weak U.S. service-sector data. That highlights lingering concerns in the foreign exchange market over a slowdown in the U.S. economic recovery that could keep interest rates ultra-low for longer than previously thought, to the detriment of the dollar, dealers said.

"People in the market are focused on U.S. economic indicators for signs that the recovery is losing more momentum," said Satoshi Tate, a senior vice president in the forex division of Mizuho Corporate Bank. "Such signs could lead to more dollar selling."

15:08 Wednesday 7 July, 2010

Asian stocks fell for the first time in three days, U.S. stock futures dropped and the yen gained after American service industries expanded at a slower pace than expected, adding to concern the global recovery will weaken.

The MSCI Asia Pacific Index slid 1.2 percent to 112.67 at 1:45 p.m. in Tokyo, halting a two-day, 1.9 percent rally. The yen strengthened against all 16 of its most-active counterparts, rebounding from near a one-week low against the euro. Standard & Poor’s 500 Index futures declined 0.4 percent.

The Institute for Supply Management’s index of non- manufacturing businesses, which covers 90 percent of the U.S. economy, fell to a four-month low of 53.8 in June, less than the median forecast of 55 in a Bloomberg News survey. The world’s largest economy may be facing a “long siege” and policy makers should adopt a “kitchen-sink strategy” that uses all fiscal and monetary policies possible to stave off another recession, Nobel Prize-winning economist Paul Krugman said.

“Global economic slowdown concerns are leading to risk aversion,” Tomoko Fujii, senior director and foreign-exchange strategist at Bank of America Merrill Lynch, said in a Bloomberg Television interview. “Unfortunately the situation is not likely to reverse anytime soon.”

11:03 Wednesday 7 July, 2010

U.S. Treasury Secretary Timothy Geithner said on Tuesday he was confident the U.S. economy would continue to grow as it repairs damage from the financial crisis, but conceded that recoveries are "never even, never steady."

Geithner, in a television interview with PBS NewsHour, said the economy was still feeling the "lasting effects" of damage to business and consumer confidence from the financial crisis and Americans are still spending cautiously.

"We've seen a little concern about Europe wash across the American economy," he said.

The Treasury chief reiterated his view that Europe would manage its debt problems, adding that officials there were "taking the steps that they need to make sure that they're growing again."

Asked about the downturn in stock markets in recent weeks, Geithner said markets had seen a long run of improvement that boosted confidence, but added: "You know, recoveries are never even, never steady."

10:55 Wednesday 7 July, 2010

The dollar pared losses after trading near a two-month low against the euro on Tuesday after U.S. stocks turned lower in afternoon trading, giving up notable gains notched earlier in the session.

Still weighing on the greenback, an upbeat policy statement from the Reserve Bank of Australia boosted the Australian dollar and encouraged investors to move out of the safety of the U.S. currency.

The dollar index, a measure tracking the performance of the greenback against a basket of six major currencies, fell to 84.113, down 0.6% from light trading on Monday to the lowest level since early May. It fell as low as 83.825, versus 84.410 in late North American trading on Friday.

10:50 Wednesday 7 July, 2010

Most Asian stocks fell after U.S. service industries expanded more slowly than estimated, adding to signs the recovery in the world’s biggest economy is faltering. Mining shares gained on higher metal prices.

Honda Motor Co., which got about 44 percent of sales from North America in the last fiscal year, fell 1.5 percent. Mitsui O.S.K. Lines Ltd., operator of the world’s biggest merchant fleet, lost 0.7 percent as a measure of shipping rates declined for a 28th consecutive day. BHP Billiton Ltd., the world’s largest mining company, rose 1.3 percent.

“The U.S. economy is slowing down,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc. “Things have started to become cheap, but it’s not enough of a reason to buy.”

09:17 Wednesday 7 July, 2010

The Reserve Bank of Australia signaled it’s prepared to refrain from further interest-rate increases in coming months as signs mount that economies around the world will slow.

Central bank Governor Glenn Stevens yesterday kept the benchmark cash rate at 4.5 percent for a second month, even as he forecast inflation will accelerate above the top of his 2 percent to 3 percent target range. He also dropped a reference to the level of rates being appropriate for the “near term.”

“The bar has been lifted on raising official interest rates,” said Paul Brennan, a senior economist at Citigroup Inc. in Sydney. “The fact that the bank has not responded to this change in the inflation outlook with an adjustment to monetary policy or the tone of the statement indicates that the bank is comfortable with the setting of policy.”

08:23 Wednesday 7 July, 2010

The options on BP, with Scott Nations, Nationsshares.

08:11 Wednesday 7 July, 2010

Agricultural Bank of China raised $19.21 billion in its initial public offering Tuesday in Hong Kong and Shanghai, and it may top out as the world's largest IPO if overallotments are exercised.

AgBank priced the Hong Kong portion of its initial public offering just above the middle of its expected range at HK$3.20, or 41 U.S. cents, a share, according to media reports.

The Shanghai portion of the IPO, however, was priced at the upper end of the expected range, at 2.68 yuan, or 39 cents, a share.

If overallotment options are exercised, the bank could raise up to $22.1 billion, beating out the $21.9 billion IPO of Industrial & Commercial Bank of China Ltd. in 2006.

08:04 Wednesday 7 July, 2010

Stocks gained, with the Standard & Poor’s 500 Index rising from a 10-month low, on speculation earnings growth will help the market rebound from its lowest valuation since 2009, while a Spanish bond sale quelled concern the nation will struggle to fund its deficit. The dollar fell.

The S&P 500 ended 0.5 percent higher at 1,028.06 at 4 p.m. in New York, after briefly erasing a 2 percent morning rally and then recovering in the final half hour. The Dow Jones Industrial Average snapped a seven-day losing streak, its longest since the financial crisis in 2008. The dollar slid versus 15 of 16 major currencies. Australia’s dollar rallied as the nation’s central bank paused in lifting interest rates. Treasuries advanced.

“The markets are oversold short-term and we’ve had a fair amount of weakness the last couple of weeks,” said Mark Bronzo, an Irvington, New York-based fund manager at Security Global Investors, which oversees $23 billion. “Now we’re about to get earnings. Most people feel earnings will be OK and maybe guidance will be a little conservative. You’ll see less shorting before earnings, that’ll give the market a lift.”

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