U.S stocks rise on falling jobless claims; Dow gains 0.17%

U.S. stocks finished Wednesday higher after the U.S. government reported that jobless claims came in lower than expected last week.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.17%, the S&P 500 index was up 0.40%, while the Nasdaq Composite index rose 0.62%.

In the U.S. earlier, the Department of Labor reported that the number of people filing for initial jobless claims fell by 16,000 to 339,000, last week, outpacing market expectations for a drop of 4,000 to 351,000.

Jobless claims for the preceding week were revised up to 355,000 from a previously reported increase of 352,000.

The numbers sent traders snapping up equities, especially after better-than-expected earnings hit the wire.

Earlier Thursday, ExxonMobil, Dow Chemical and UPS released earnings reports that topped market expectations, among others.

Trading as was somewhat cautious, as investors kept an eye out for gross domestic product growth rates due out on Friday.

Leading Dow Jones Industrial Average performers included Verizon Communications, up 2.82%, Cisco Systems, up 1.28%, and IBM, up 1.16%.

The Dow Jones Industrial Average's worst performers included 3M, down 2.76%, ExxonMobil, down 1.48%, and Hewlett-Packard, down 1.21%.

European indices, meanwhile, finished largely higher.

After the close of European trade, the EURO STOXX 50 rose 0.09%, France's CAC 40 fell 0.06%, while Germany's DAX 30 finished up 0.95%. Meanwhile, in the U.K. the FTSE 100 finished up 0.17%.

U.S. investment bank Goldman Sachs said earlier it expected the European Central Bank to trim benchmark interest rates 25 basis points at its monetary policy meeting next Thursday, which pushed stock prices higher.

On Friday, the U.S. will release preliminary data on first quarter growth.

The U.S. is also to release revised data from the Thomson Reuters/University of Michigan on consumer sentiment and inflation expectations.

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Forex Trading Signals for 25th April 2013

                                                                                


Japan (Tokyo)                               United Kingdon (London)                        USA (New York)

For more easy access,,,,,,Download our mobile application on your mobile :   Click Fxsignals 

Forex Signal for 25 April 2013,,,,,,

EUR/USD

Down Trend : SELL

(1) SELL

E/P: 1.30420

T/P: 1.30000

S/L: 1.30700

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GBP/USD

Up Trend: BUY

(1) BUY

E/P: 1.52800

T/P: 1.53200

S/L: 1.52400

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Forex - EUR/USD dips on U.S. data, Goldman Sachs calls for ECB rate cut

The euro inched down against the dollar on Thursday after official data revealed that fewer in the U.S. filed for unemployment assistance last week.

Talk of a European Central Bank rate cut also pushed the single currency lower;

In U.S. trading on Thursday, EUR/USD was down 0.11% at 1.3001, up from a session low of 1.2956 and off from a high of 1.3094.

The pair was likely to find support at 1.2956, the earlier low, and resistance at 1.3094, the earlier high.

In the U.S. earlier, the Department of Labor reported that the number of people filing for initial jobless claims fell by 16,000 to 339,000, last week, outpacing market expectations for a drop of 4,000 to 351,000.

Jobless claims for the preceding week were revised up to 355,000 from a previously reported increase of 352,000.

The news bolstered the dollar, which has softened in recent sessions amid talk that slumping economic indicators will prompt the Federal Reserve to take its time winding down monetary stimulus measures, which weaken the greenback to spur recovery.

The euro, meanwhile, came under pressure after U.S. investment bank Goldman Sachs said it expected the European Central Bank to trim benchmark interest rates 25 basis points at its monetary policy meeting next Thursday.

The investment bank also cut its 2013 eurozone growth forecast to -0.7% from a previous forecast of -0.5%.

Slumping European industrial output reports, soft service-sector data and eroding business confidence data have many market participants speculating the ECB will move to loosen policy to kick-start recovery.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 1.18% at 0.8426, and EUR/JPYtrading down 0.19% at 129.28.

On Friday, the U.S. will release preliminary data on first quarter growth.

The U.S. is also to release revised data from the Thomson Reuters/University of Michigan on consumer sentiment and inflation expectations.

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Is sterling turning?

GBP: That so much attention is paid to a number which is prone to revisions and looks back over the previous 3 months is sometimes a mystery. Even more attention will be paid today because if GDP declines, the UK will have officially entered a triple-dip recession.  The market is looking for a 0.1% increase. A decline would see sterling hit as expectations of further QE increase. See how to trade the UK GDP with GBP/USD.

JPY:  Of course, it’s far too early to expect the recent bout of renewed QE measure to start impacting the inflation numbers in Japan, but the numbers out Friday morning will be key in knowing where the Bank of Japan is working from. Expectations are for headline CPI to fall 0.8%, with ex-fresh food declining 0.4% on the same YoY basis.

Idea of the Day

Sterling is not that far from more decisively breaking the upward correction seen on cable from the mid-March low of 1.4832 and today’s data just may decide whether the up-trend on cable is broken. It’s ironic that so much attention is paid to the first indication on GDP, given that the numbers are very much a look into the rear view mirror and are always later revised.

If we see GDP fall in today’s release, then the UK will have officially entered a triple-dip recession.  But even if we see the anticipated 0.1% increase, that will still represent a decline in output over the previous 6 months given the -0.3% decline in Q4 last year.  Trendline support for cable comes in at 1.5212, with EURGBP looking a little more vulnerable with support at 0.8502.

Latest FX News

JPY: The 100 level on USDJPY proving to be ever more pivotal for the market as it trades near but not through it.  The weekly portfolio flow data again showed Japanese investors to be selling foreign assets (rather than the buying anticipated post-BoJ decisions).  The other point to note is reticence of authorities to comment on the currency, implying they are probably happy with the levels currently prevailing.

EUR:  The single currency had held up fairly well in the face of the disappointing data seen this week. This is despite increased expectations for lower rates from the ECB next week. The lack of reaction in part reflects the fact that market interest rates (paid by banks) are already very low because of the plentiful liquidity in the market, so a cut in the benchmark rate from the ECB would have only limited impact on these market rates.

GBP:  Sterling treading cautiously ahead of the GDP numbers today.  Trendline support  for cable comes in at 1.5212, a break of which will be bearish and further confirm the correction in cable from the 1.4832 low is over.

AUD: Recovering from modest weakness towards the end of Wednesday on the back of stronger risk appetite globally, allowing AUDUSD to move back above the 1.03 level.

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Focus Shifts to Central Banks

The USD was mostly lower in overnight trading as theEUR tested resistance at 1.3060. Commodities also moved higher as gold traded above the $1,440 level continuing to bounce back from last week’s low of $1,321.50. Crude oil is back above $91.00 as well. The move in the commodities has helped the AUD and CAD move higher.

The overnight highs in the AUD, CAD and EUR were explained by traders as “closing” of short positions in the currencies listed. All three currencies have moved off their highs as the European trading markets begin their day.

Great Britain just released first quarter GDP results and the numbers are much better than expected. GDP improved to 0.6% in the first quarter of this year from 0.2% in the 4th quarter of 2012. Expectations had been for a move up of 0.3%. The news has seen the GBP jump substantially breaking resistance at the 1.5400, a 1% move higher from its European opening. The GBP moved quickly through resistance levels at 1.5320 and 1.5345 presently topping out at 1.5414. Given the negative economic results that came out of Europe yesterday, traders seem to be rushing to the GBP as the economic results gave traders reasons to buy British Pounds.

In other currency news, the EUR remained above the 1.3000 level during the overnight session, but has moved towards its overnight lows as the release of Spanish unemployment data showed a rise from 26.02% to 27.16% in the first quarter of 2013. This number was higher than the consensus expectation of 26.50%.

The markets will now shift their attention to the central bank meetings in Japan this evening and in Europe next week. European stock markets are higher as the latest round of economic data from the Eurozone raises expectations of an ECB rate cut occurring, possibly as early as next week. ECB officials are beginning to take to the airwaves bringing their arguments public as to whether a rate cut would be effective.

Before the ECB meeting, we do have the BOJ meeting today and traders will key on comments made by BOJ officials. The USD/JPY has traded with a 99.00 handle overnight but has yet to make a sustained run towards the 100.00 level. While many traders expect an eventual test of 100.00, the longer the wait the less there is a chance that this will happen. If the BOJ “disappoints” in their comments after this meeting, analysts expect a test to the downside in USD/JPY and the support level of 98.50 will come into play.

Technical levels to watch today are 1.3065 resistance in the EUR, 1.0220 support in the USD/CAD and 1.5420 resistance in the GBP. USD/JPY should trade during the day in the 99.10 – 99.50 range.

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Currencies at a Glance (GBP/USD)

Currencies at a Glance  

• EUR/USD
• USD/JPY
• GBP/USD
• AUD/USD
• GBP/JPY
• EUR/GBP
• USD/CHF

GBP/USD Apr 25 at 12:49 GMT

1.5461/63 (1.26%)

H1.5482 L 1.5265 

S3	S2	S1	R1	R2	R3
1.5172	1.5210	1.5248	1.5310	1.5348	1.5386

Trend Index[?]	OB/OS Index[?]
Data updated on Apr 25 a 12:45 (15-minute timeframe)
Slightly Bullish	Overbought

• 1D
• 1M
• 3M
• 1Y

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Currencies at a Glance  

• EUR/USD
• USD/JPY
• GBP/USD
• AUD/USD
• GBP/JPY
• EUR/GBP
• USD/CHF

EUR/USD Apr 25 at 12:46 GMT

1.3077/78 (0.48%)

H1.3094 L 1.3010 

S3	S2	S1	R1	R2	R3
1.2920	1.2952	1.2984	1.3066	1.3098	1.3131

Trend Index[?]	OB/OS Index[?]
Data updated on Apr 25 a 12:30 (15-minute timeframe)
Slightly Bullish	Neutral

• 1D
• 1M
• 3M
• 1Y

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Forex: EUR/USD rises towards weekly highs

FTS- Forex Trade: After yesterday’s downside pressure, with even a spike to 1.2956 low, the EUR/USD was able to find support at 1.2975 and bounced back above the 1.3000 psychological level. More corrective movement during the Asian session allowed a rise to 1.3060 and now the pair is extending gains towards the 1.3080 resistance area (April 21/22/23 highs). The market is currently as high as 1.3076.

German Chancellor Merkel wants that bank shareholders can also suffer losses in the future and said the government rejects common European deposit insurance, for now. Also, she said that higher interest rates would be better for Germany. Finland grand committee head said the Euro would survive in case Cyprus leaves and rejects euro-area fiscal transfers. IMF’s Lipton and PIMCO’s Amey suggested more ECB easing.

The US session will have jobless claims and Kansas Fed manufacturing activity on the economic calendar. “Markets are looking for weekly jobless claims to remain more or less unchanged at 352K this week”, wrote TD Securities analyst Annette Beacher.

“The intraday outlook is bullish above 1.3025 support zone, for a rise towards 1.3120”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to key support at 1.3000 and that a slide below that zone will state that the downtrend from 1.3200 is intact and will target 1.2890.

EUR/USD Apr 25 at 12:31 GMT

1.3083/84 (0.52%)

H1.3094 L 1.3010 

S3	S2	S1	R1	R2	R3
1.2920	1.2952	1.2984	1.3066	1.3098	1.3131

Trend Index[?]	OB/OS Index[?]
Data updated on Apr 25 a 12:15 (15-minute timeframe)
Slightly Bullish	Overbought

• 1D
• 1M
• 3M
• 1Y

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