Natural gas futures turn higher after U.S. supply data

Natural gas futures turned higher on Thursday, after a report from the U.S. Energy Information Administration showed that natural gas supplies rose less-than-expected last week.

On the New York Mercantile Exchange, natural gas futures for delivery in July traded at USD3.795 per million British thermal units during U.S. morning trade, up 0.45% on the day.       

It earlier fell by as much as 1.6% to hit a session low of USD3.716 per million British thermal units.

The July contract traded at USD3.748 prior to the release of the U.S. Energy Information Administration report.  

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 7 rose by 95 billion cubic feet, below market expectations for an increase of 96 billion.

Inventories rose by 66 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 84 billion cubic feet.

Total U.S. natural gas storage stood at 2.347 trillion cubic feet as of last week. Stocks were 587 billion cubic feet less than last year at this time and 58 billion cubic feet below the five-year average of 2.405 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 102 billion cubic feet below the five-year average, following net injections of 57 billion cubic feet. 

Stocks in the Producing Region were 2 billion cubic feet below the five-year average of 915 billion cubic feet after a net injection of 25 billion cubic feet.

Prices were lower earlier in the session as an uncertain demand outlook weighed.

Weather forecasting models continued to point to above-normal temperatures across most of the U.S. over the next six-to-ten days, before giving way to below-normal temperatures later in June.

Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.  

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in July shed 0.2% to trade at USD95.69 a barrel, while heating oil for July delivery added 0.45% to trade at USD2.908 per gallon. 

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Forex - GBP/USD holds steady after U.S. data

The pound held steady against the U.S. dollar on Thursday, after the release of strong U.S. economic reports, as investors remained cautious amid ongoing uncertainty over the future of the Federal Reserve's stimulus program. 

GBP/USD hit 1.5644 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5667, easing 0.07%. 

Cable was likely to find support at 1.5521, the low of June 11 and resistance at 1.5810, the high of February 10. 

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell by 12,000 to 334,000, compared to expectations for a decline of 1,000 to 345,000.

Separately, the Commerce Department said retail sales rose 0.6% in May, led higher by increased automobile purchases, beating forecast for a 0.4% increase. 

Core retail sales, which exclude auto sales, were up 0.3%, in line with expectations.

But investors remained cautious as the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets and the greenback. 

Sterling was higher against the euro with EUR/GBP sliding 0.34%, to hit 0.8478. 

Also Thursday, the World Bank said in a report that the global economy will expand 2.2% this year, less than a January forecast for 2.4% growth and slower than last year’s 2.3%. 

It also lowered its projection for developing economies and said the euro zone's gross domestic product will fall 0.6%.

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Forex - EUR/USD touches session lows after U.S. data

The euro touched session lows against the dollar on Thursday after stronger-than-forecast U.S. economic data boosted expectations that the Federal Reserve will unwind its asset purchase program later this year.

EUR/USD hit 1.3288 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3292, shedding 0.32%.

The pair was likely to find support at 1.3264, Wednesday’s low and resistance at 1.3389, the session high.

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week fell by 12,000 to 334,000, compared to expectations for a decline of 1,000 to 345,000.

Separately, the Commerce Department said U.S. retail sales rose 0.6% in May, led higher by increased automobile purchases, beating forecasts for a 0.4% increase. 

Core retail sales, which exclude auto sales, were up 0.3%, in line with expectations.

The dollar slumped to three-and-a-half month lows against the euro earlier and fell to 10-week lows against the yen as concerns over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets and the greenback.

Earlier this week the Bank of Japan disappointed expectations for measures to ease volatility in the government bond market. 

The BoJ’s lack of action, along with expectations that the Federal Reserve will begin to scale back its bond buying program fuelled safe haven inflows in to the yen.

The dollar remained lower against the yen following the data, withUSD/JPY down 1.86% to 94.20. The yen was also sharply higher against the euro, with EUR/JPY tumbling 2.23% to 125.17.

The World Bank revised down its forecast for global growth in 2013 to 2.2% from 2.4% at the beginning of the year earlier Thursday, saying the slowdown in the world economy was turning out to be unusually protracted.

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U.S. futures lower, eyes on data; Dow Jones down 0.21%

U.S. stock futures pointed to a lower open on Thursday, ahead of the release of U.S. data, while investors remained cautious amid ongoing uncertainty over the future of the Federal Reserve's stimulus program. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.21% loss, S&P 500 futures signaled a 0.22% fall, while the Nasdaq 100 futures indicated a 0.26% decline. 

European equities markets were sharply lower on Thursday, following on from sharp losses in the Asian session, as fears over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets and the dollar.

Earlier this week the Bank of Japan disappointed expectations for measures to ease volatility in the government bond market. The BoJ’s lack of action, along with expectations that the Federal Reserve will begin to scale back its bond buying program has fuelled widespread risk aversion. 

In addition, the World Bank said in a report that the global economy will expand 2.2% this year, less than a January forecast for 2.4% growth and slower than last year’s 2.3%. 

Telecom companies were expected to be active, after Clearwire's board recommended that shareholders accept an offer of USD4.40 a share from Dish Network, shunning a lower bid from its majority owner Sprint Nextel. 

Clearwire shares jumped 0.94% in pre-market trade. 

Also in company news, Safeway, the second-largest U.S. grocery-store chain agreed to sell its Canadian stores to Empire's Sobeys Inc. unit for about USD5.7 billion in cash, sending shares up 21.12% in early trading.

In the tech sector, Hewlett-Packard was likely to remain in focus after CEO Meg Whitman on Wednesday said that revenue growth is "still possible" for the computer maker in its fiscal year 2014. 

Among pharmaceutical companies, GlaxoSmithKline dipped 0.06% in extended trading after the pharmaceutical giant dismissed its head of research and development in China, earlier in the week. 

Separately, Pfizer dropped 0.63% pre-market after the drugmaker said rival Teva Pharmaceuticals and Sun Pharmaceutical Industries would pay USD2.15 billion to settle a patent infringement lawsuit related to its acid-reflux drug Protonix. 

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.11%, France’s CAC 40 retreated 0.81%, Germany's DAX plummeted 1.64%, while Britain's FTSE 100 declined 1.18%. 

During the Asian trading session, Hong Kong's Hang Seng Index plunged 2.19%, while Japan’s Nikkei 225 Index dove 6.35%. 

Later in the day, the U.S. was to release official data on retail sales and the weekly government report on initial jobless claims.

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Forex - USD/CHF steady, focus on central banks

FTS-Forex Trading: The U.S. dollar was steady against the Swiss franc on Thursday, ahead of U.S. data but gains were limited as ongoing uncertainty over the Federal Reserve's stimulus program weighed broadly on demand for the greenback. 

USD/CHF hit 0.9130 during European morning trade, the pair's lowest since February 7; the pair subsequently consolidated at 0.9213, easing up 0.07%. 

The pair was likely to find support at 0.9066, the low of February 7 and resistance at 0.9286, Wednesday's high. 

European equities markets were sharply lower on Thursday, following on from sharp losses in the Asian session, as fears over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets and the dollar.

Earlier this week the Bank of Japan disappointed expectations for measures to ease volatility in the government bond market. The BoJ’s lack of action, along with expectations that the Federal Reserve will begin to scale back its bond buying program has fuelled widespread risk aversion. 

In Switzerland, official data showed that producer price inflation fell 0.3% in May, confounding expectations for a 0.1% rise, after a 0.2% increase the previous month. 

The Swissie was steady against the euro with EUR/CHF inching 0.02% higher, to hit 1.2283. 

Later in the day, the U.S. was to release official data on retail sales and the weekly government report on initial jobless claims.

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Copper futures tumble more than 1% on World Bank outlook

Copper futures fell sharply to re-approach a five-week low on Thursday, as the industrial metal’s appeal was dented after the world bank cut its global growth outlook.

Copper is sensitive to the economic growth outlook because of its widespread uses across industries.

On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.184 a pound during European morning trade, down 1.3% on the day.

New York-traded copper prices fell by as much as 1.4% earlier in the session to hit a daily low of USD3.181 a pound. Copper futures fell to a five-week low of USD3.164 a pound on June 11.

The World Bank lowered its growth estimate for the global economy in 2013 to 2.2%, down from a previous estimate of 2.4%. 

For next year, the World Bank said it expects 3% growth worldwide, compared to its January forecast for growth of 3.1%.

It also lowered its projection for China’s economic growth to 7.7% from 8.4% and said the euro zone's gross domestic product will fall 0.6%.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year, while Europe as a region is third in global demand for the industrial metal.

Copper traders now looked ahead to the release of official data on U.S. retail sales and the weekly government report on initial jobless claims later in the trading day.

Any improvement in the U.S. economy could scale back expectations for further easing, putting upward pressure on U.S. yields and boosting the dollar.

Investors have remained cautious in recent sessions amid ongoing speculation over whether the Federal Reserve will begin to unwind its easing program in the coming months.

Elsewhere on the Comex, gold for August delivery was down 0.35% to trade at USD1,387.15 a troy ounce, while silver for July delivery dipped 0.2% to trade at USD21.76 a troy ounce.

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Dollar slumps vs. yen amid central bank uncertainty

The dollar tumbled to two-and-a-half month lows against the broadly stronger yen on Thursday and equities markets slumped as fears over the future of central bank stimulus sparked widespread risk aversion.

During European late morning trade, the dollar fell to its lowest level since April 4 against the yen, with USD/JPY falling 1.67% to 94.41 after touching lows of 93.80.

European shares fell sharply Thursday morning following sharp falls in Japanese equities overnight as concerns over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets.

Earlier this week the Bank of Japan disappointed expectations for measures to ease volatility in the government bond market. 

The BoJ’s lack of action, along with expectations that the Federal Reserve will begin to scale back its bond buying program fuelled safe haven inflows in to the yen and weakened the dollar.

Market sentiment was also hit after the World Bank revised down its forecast for global growth this year to 2.2% from 2.4% at the beginning of the year.

The dollar was trading close to three-and-a-half month lows against the euro, with EUR/USD dipping 0.03% to 1.3331.

Elsewhere, the greenback edged higher against the pound and the Swiss franc, with GBP/USD slipping 0.11% to 1.5661 and USD/CHFedging up 0.08% to trade at 0.9213. 

The greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.50% to 0.9528,NZD/USD edging down 0.08% to 0.7974 and USD/CAD falling 0.43% to 1.0167.

In Australia, official data showed that the economy added 1,100 jobs in May, confounding expectations for a decline of 10,000 and the unemployment rate ticked down to 5.5% from 5.6% in April.

The Reserve Bank of New Zealand kept rates unchanged at 2.5% following its latest policy meeting on Thursday and said it expected rates to remain on hold for the rest of this year.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.22% to 80.98. 

The U.S. was to release official data on retail sales and the weekly government report on initial jobless claims later in the trading day.

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Silver futures edge lower as uncertain stimulus outlook weighs

Silver futures edged lower in rangebound trade on Thursday, amid speculation central banks around the world will refrain from adding more economic stimulus.

Silver, like gold, can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.

On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD21.70 a troy ounce during European morning trade, down 0.45% on the day.

Comex silver prices held in a range between USD21.60 a troy ounce, the daily low and a session high of USD21.91 a troy ounce.

Silver prices were likely to find near-term support at USD21.34 a troy ounce, the low from June 10 and resistance at USD22.01, June 10’s high.

Investors remained cautious amid ongoing speculation over whether the Federal Reserve will begin to unwind its easing program in the coming months.

Moves in the silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.

But prices remained supported due to a broadly weaker U.S. dollar, as dollar-priced commodities become cheaper to investors holding other currencies when the greenback weakens.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.4% to trade at 80.84, the lowest level since February 21.

The U.S. currency tumbled more than 2% against the yen on Thursday following sharp falls in Japanese equities overnight as concerns over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets and the dollar.

Elsewhere on the Comex, gold for August delivery was down 0.45% to trade at USD1,385.85 a troy ounce, while copper for July delivery lost 1.1% to trade at USD3.190 a pound.

The U.S. was to release official data on retail sales and the weekly government report on initial jobless claims later in the trading day.

Any improvement in the U.S. economy could scale back expectations for further easing, putting upward pressure on U.S. yields and boosting the dollar.

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Forex - GBP/USD steady near 4-month highs

The pound was steady close to four-month highs against the dollar on Thursday as uncertainty over the future of central bank stimulus sent the dollar lower across the board.

GBP/USD hit 1.5701 during European morning trade, the pair’s highest since February 11; the pair subsequently consolidated at 1.5662, dipping 0.08%.

Cable was likely to find support at 1.5632, Wednesday’s low and near-term resistance at 1.5701, the session high and a four-month high.

European equities markets were sharply lower on Thursday, following on from sharp losses in the Asian session, as fears over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets and the dollar.

Earlier this week the Bank of Japan disappointed expectations for measures to ease volatility in the government bond market. The BoJ’s lack of action, along with expectations that the Federal Reserve will begin to scale back its bond buying program has fuelled widespread risk aversion.

The pound remained supported after upbeat U.K. employment data on Wednesday bolstered optimism over the outlook for second quarter economic growth.

Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.16% to 0.8520 and fell to two-month lows against the broadly stronger yen, with GBP/JPY tumbling 1.93% to 147.57.

The U.S. was to release official data on retail sales and the weekly government report on initial jobless claims later in the trading day.

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EUR/USD At Temporary Resistance; Be Aware Of Reversal

USD extended its losses since yesterday when the US stock market turned sharply lower with the Dow Jones Industrial Average down three days in a row for the first time this year.

Correlation between the markets remains unchanged; USDJPY and other yen crosses are tracking the stock market, while EURUSD and other XXX/USD pairs are moving in opposite direction. As such, EURUSD is at its highs, now testing the 1.3380 area.

From a technical perspective, we see all XXX/USD pairs in fifth waves of 3 and we know that after every five waves the trend will change, even if just temporary. Below I have a basic structure of a five wave rally on which I marked a current position on EURUSD . I see it at the end of wave three so pull-back is expected.

Basic five wave rally

EURUSD 4h

(Members please visit EWC page for 4h counts on other USD pairs)

On the charts above I see it at the end of wave three so pull-back is expected. So what does this tells us?

Well, I think a lot; first, if you are long you could be out of the market here, or if you want to get in and ride the EURUSD trend then it’s probably better to wait for a correction. It also tells you a lot about the other markets.

If correlations will remain as they are and if EURUSD will turn lower from 1.3380/1.3400 resistance then stocks will probably find support that will cause some rally on xxx/JPY pairs as well.

Market correlation 1h

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Forex Trading Signal for 13th June 2013

                                                                                


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

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

EUR/USD

 Up Trend :

 (1) BUY

E/P: 1.33244

T/P: 1.33600

S/L: 1.32800

 (2) SELL

E/P: 1.33510

T/P: 1.33200

S/L: 1.34000

GBP/USD

UP Trend:

(1) BUY

E/P: 1.56743

T/P: 1.57300

S/L: 1.56400

(1.b) BUY

E/P: 1.56900

T/P: 1.57300

S/L: 1.56400

(2) SELL

E/P: 1.56620

T/P: 1.56300

S/L: 1.57000

NOTE: The above posted Signals are delayed 2 - 4 hours after it has been  generated.
Daily forex signals are sent ontime to only our subcribers.

To subcribe: click here

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Dollar tumbles vs. yen in risk-off trade

The dollar fell to two-and a-half month lows against the yen on Thursday as fears over the future of central banks stimulus saw investors move out of riskier assets and into the safe haven yen.

During European morning trade, the dollar fell to its lowest level since April 4 against the yen, with USD/JPY falling 1.89% to 94.17.

The yen strengthened against the dollar and the euro following sharp falls in Japanese equities overnight as concerns over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets.

Earlier this week the Bank of Japan disappointed expectations for measures to ease volatility in the government bond market. The BoJ’s lack of action, along with expectations that the Federal Reserve will begin to scale back its bond buying program has fuelled widespread risk aversion.

The dollar was close to three-and-a-half month lows against the euro, with EUR/USD inching up 0.06% to 1.3342.

Elsewhere, the greenback was slightly higher against the pound, withGBP/USD slipping 0.14% to 1.5656.

The dollar slid against the Swiss franc, with USD/CHF losing 0.17% to trade at 0.9190. 

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with AUD/USD inching up 0.07% to 0.9488,NZD/USD down 0.59% to 0.7933 and USD/CAD falling 0.25% to 1.0186.

The Reserve Bank of New Zealand kept rates unchanged at 2.5% following its latest policy meeting on Thursday and said it expected rates to remain on hold for the rest of this year.

In Australia, official data showed that the economy added 1,100 jobs in May, confounding expectations for a decline of 10,000 and the unemployment rate ticked down to 5.5% from 5.6% in April.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.32% to 80.90. 

The U.S. was to release official data on retail sales and the weekly government report on initial jobless claims later in the trading day.

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