Forex - USD/JPY steady as BoJ meeting starts

The U.S. dollar traded modestly lower against the Japanese yen during Wednesday’s Asian session as the Bank of Japan commenced another two-day policy meeting. 

In Asian trading Wednesday, USD/JPY inched down 0.01% to 101.15 after earlier trading as high as 101.22. The pair was likely to find resistance at 101.54, and support at 99.26, Wednesday's low. 

Earlier Wednesday, the Bank of Japan said that Japan’s corporate goods price index rose 1.2% last month following a 0.6% increase in May. Analysts expected the 1.2% increase. 

In a separate report, METI said that Japanese tertiary industry activity index rose 1.2% in June after a flat reading in May. Analysts had expected Japanese tertiary industry activity index to rise 0.9% last month. 

Ahead of the BoJ meeting, seven of 20 economists surveyed by Bloomberg said they expect BoJ to expand its monetary easing efforts later this year. BoJ announced a USD1.4 trillion stimulus program in April, but with upper house elections looming later this month, Prime Minister Shinzo Abe could press the central bank for additional easing. 

It is widely expected that Abe’s Liberal Democratic Party will take control of Japan’s upper house of parliament. However, traders also believe that if Abe is unsuccessful in pushing through more economic recovery initiatives, BoJ could step into the rescue by announcing added stimulus.

Following BoJ’s major April announcement, subsequent meetings of the central bank have provided little in the way of fireworks and it appears traders expect that will remain the case this week. 

Elsewhere, EUR/JPY inched down 0.05% to 129.25 while AUD/JPYnudged up 0.01% to 92.86.

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Forex - Dollar mostly higher ahead of Fed minutes

The U.S. dollar traded higher against most of its major rivals during Wednesday’s Asian session as traders await more data points out of China and the release minutes from the Federal Reserve’s most recent meeting. 

In Asian trading Wednesday, EUR/USD nudged lower by 0.04% to 1.2777 after the International Monetary Fund cut its 2013 global growth forecast to 3.1% from a 3.3% prediction made in April and cut its 2014 growth forecast to 3.8% from 4.0%, which sent investors snapping up safe-haven positions in the dollar. 

GBP/USD fell 0.08% to 1.4855 and is hovering near 3-year lows after the Office for National Statistics said earlier that U.K. manufacturing production contracted 0.8% in May, defying expectations for a 0.3% increase. 

Manufacturing production fell at an annual rate of 2.9% in May, far outpacing expectations for a 1.6% decline. The ONS also said that industrial production came in flat in May, disappointing expectations for a 0.2% increase, and was 2.3% lower on a year-over-year basis.

Separate data showed that the U.K. trade deficit widened to GBP8.49 billion in May from a deficit of GBP8.43 billion in April. Economists had forecast a deficit of GBP8.47 billion. 

USD/JPY inched down 0.02% to 101.14 after the Bank of Japan said that Japan’s corporate goods price index rose 1.2% last month following a 0.6% increase in May. Analysts expected the 1.2% increase. 

In a separate report, METI said that Japanese tertiary industry activity index rose 1.2% in June after a flat reading in May. Analysts had expected Japanese tertiary industry activity index to rise 0.9% last month. 

USD/CHF rose 0.09% to 0.9740 while USD/CAD inched up 0.02% to 1.0532 even after the American Petroleum Institute said U.S. oil inventories fell by 9 million barrels last week, well above the decline of 3.8 million barrels analysts expected. 

AUD/USD dropped 0.13% to 0.9167 while NZD/USD shed 0.23% to 0.7840. The U.S. Dollar Index inched up 0.03% to 84.87.

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Forex - Dollar gains as IMF trims forecasts, China, U.K. data support

The dollar strengthened against most major currencies on Tuesday after the International Monetary Fund trimmed its global growth forecasts for this year and the next, which sparked safe-haven demand for the U.S. currency

In U.S. trading on Tuesday, EUR/USD was down 0.61% at 1.2791.

The IMF cut its 2013 global growth forecast to 3.1% from a 3.3% prediction made in April and revised its 2014 growth forecast to 3.8% from 4.0%.

The IMF added that the euro zone economy should contract by 0.6% this year compared to a 0.4% contraction forecast in April, which weakened the euro. 

The single currency saw added pressure after European Central Bank President Mario Draghi reiterated anew that interest rates will remain low for an extended period of time to support the euro zone economy.

Meanwhile, the dollar saw added support on growing expectations for the Federal Reserve to begin tapering its USD85 billion bond-buying program later this year and end it next year.

Such monetary stimulus programs weaken the greenback to spur recovery, and talk of their dismantling can bolster the U.S. currency.

Elsewhere, China reported earlier that consumer prices rose 2.7% in June from a year earlier, above expectations for a 2.5% increase and accelerating from a 2.1% rate of increase in May, which gave the greenback support as investors digested the data.

The greenback was up against the pound, with GBP/USD trading down 0.54% at 1.4872.

The Office for National Statistics said earlier that U.K. manufacturing production contracted 0.8% in May, defying expectations for a 0.3% increase. 

Manufacturing production fell at an annual rate of 2.9% in May, far outpacing expectations for a 1.6% decline. 

The ONS also said that industrial production came in flat in May, disappointing expectations for a 0.2% increase, and was 2.3% lower on a year-over-year basis.

Separate data showed that the U.K. trade deficit widened to GBP8.49 billion in May from a deficit of GBP8.43 billion in April. Economists had forecast a deficit of GBP8.47 billion.

The dollar was unchanged against the yen, with USD/JPY down 0.01% at 100.97, and up against the Swiss franc, with USD/CHF trading up 0.94% at 0.9726.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.28% at 1.0530, AUD/USD up 0.62% at 0.9190 and NZD/USD trading up 0.78% at 0.7861.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.42% at 84.79.

In the U.S. on Wednesday, the Federal Reserve is to publish the minutes of its latest policy setting meeting, while Fed Chairman Ben Bernanke is scheduled to appear in public as well.

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U.S stocks rise on optimism for solid earnings; Dow gains 0.50%

U.S. stocks extended Monday's gains into Tuesday amid hopes that second-quarter earnings will beat many expectations and point to the arrival of more robust economic growth in the U.S.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.50%, the S&P 500 index ended up 0.72%, while the Nasdaq Composite index rose 0.56%.

After the closing bell on Monday, U.S. metals giant Alcoa kicked off earnings season by reporting April-June earnings of USD0.07 per share and USD5.85 billion in revenue, beating expectations of USD0.06 and revenue of USD5.83 billion.

Alcoa's earnings came one business day in wake of data that revealed the U.S. labor market is showing signs of a more sustained recovery.

Official U.S. data released Friday showed the economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.

May's figure was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000. 

Investors in the stock market largely shrugged off an International Monetary Fund decision to cut its 2013 global growth forecast to 3.1% from a 3.3% prediction made in April and to revise its 2014 growth forecast to 3.8% from 4.0%.

Sentiments continued to build that in the U.S., a longer-term trend is underway that will see investors shift more money from bond funds into equity funds as the economy improves, which pushed Wall Street indices higher.

Leading Dow Jones Industrial Average performers included Caterpillar, up 2.60%, Cisco Systems, up 2.19%, and Bank of America, up 1.88%.

The Dow Jones Industrial Average's worst performers included IBM, down 1.91%, Verizon Communications, down 0.41%, and Intel, down 0.17%.

European indices, meanwhile, finished higher.

After the close of European trade, the EURO STOXX 50 rose 0.50%, France's CAC 40 rose 0.52%, while Germany's DAX 30 finished up 1.12%. Meanwhile, in the U.K. the FTSE 100 finished up 0.98%.

In the U.S. on Wednesday, the Federal Reserve is to publish the minutes of its latest policy setting meeting, while Fed Chairman Ben Bernanke is scheduled to appear in public as well.

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Forex Trading Signal for 10th July 2013

                                                                                


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

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

EUR/USD

 Down Trend :

 (1) SELL

E/P: 1.28073

T/P: 1.27600

S/L: 1.28500

 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

GBP/USD

Down Trend:

(1) SELL

E/P: 1.48822

T/P: 1.48400

S/L: 1.49200

  ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USD/JPY

Up Trend:

(1) BUY

E/P: 101.066

T/P: 101.300

S/L: 100.700

  ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USD/CHF

Up Trend:

(1) BUY

E/P: 0.97067

T/P: 0.97300

S/L: 0.96700

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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Forex - Pound near 4-month lows vs. dollar after U.K. data

The pound fell to four-month lows against the dollar on Tuesday after official data showed that U.K. manufacturing output fell unexpectedly in May, clouding the outlook for the economic recovery.

GBP/USD hit 1.4832 during European afternoon trade, the pair’s lowest since March 12; the pair subsequently consolidated at 1.4865, shedding 0.57%.

Cable is likely to find support at 1.4832, the session low and a four-month low and resistance at 1.4965, Monday’s high.

The Office for National Statistics said that U.K. manufacturing production fell 0.8% in May, compared to expectations for a 0.3% increase. 

Manufacturing production fell at an annual rate of 2.9% in May, compared to expectations for a 1.6% decline. 

The ONS said industrial production was flat in May, disappointing expectations for a 0.2% increase, and was 2.3% lower on a year-over-year basis.

A separate report showed that the U.K. trade deficit widened to GBP8.49 billion in May, from a deficit of GBP8.43 billion in April. Economists had forecast a deficit of GBP8.47 billion.

The data dampened expectations that the economic recovery is gaining momentum, after data last week showed that service sector activity in the U.K. expanded at the fastest pace since March 2011 in June, while manufacturing activity expanded at the fastest rate in more than two years.

Earlier Tuesday, private sector reports showed that U.K. house prices rose in June, and retail sales increased last month.

Last week the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.’s economic recovery.

Meanwhile, demand for the dollar continued to be supported by expectations that the Federal Reserve will start to unwind its asset purchase program later this year.

Sterling was also trading at four-month lows against the euro, withEUR/GBP advancing 0.54% to 0.8652.

The euro found some support after Greece secured its next tranche of financial aid from creditors overnight.

However, sentiment on the single currency remained fragile after European Central Bank President Mario Draghi reiterated Monday that interest rates will remain at low levels for an extended period of time.

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Forex - Euro little changed vs. dollar

The euro was little changed against the dollar on Tuesday, but the dollar looked likely to strengthen further amid expectations that the Federal Reserve will soon start to unwind its asset purchase program.

EUR/USD hit 1.2894 during European afternoon trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.2866, dipping 0.02%.

The pair was likely to find support at 1.2810, Monday’s low and resistance at 1.2916, Friday’s high.

Data last week showing that the U.S. economy added more jobs than expected in June reinforced the view that the recovery in the labor market is on track.

Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 if the economy picks up as the central bank expects.

The euro found some support after Greece secured its next tranche of financial aid from creditors overnight.

However, sentiment on the single currency remained fragile after European Central Bank President Mario Draghi reiterated Monday that interest rates will remain at low levels for an extended period of time.

Elsewhere, the euro advance to four month highs against the weaker pound, with EUR/GBP climbing 0.52% to 0.8650 after official data showed that U.K. manufacturing output fell unexpectedly in May, clouding the economic outlook.

U.K. manufacturing production fell 0.8% in May, compared to expectations for a 0.3% increase. Industrial production in the U.K. was flat, disappointing expectations for a 0.2% increase, and was 2.3% lower on a year-over-year basis.

A separate report showed that the U.K. trade deficit widened to GBP8.49 billion in May, a six month high, from a deficit of GBP8.43 billion in April. Economists had forecast a deficit of GBP8.47 billion.

The euro was slightly higher against the yen, with EUR/JPY easing up 0.10% to 130.03.

Finance ministers from the European Union were to hold talks in Brussels later Tuesday.

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U.S. futures higher despite Fed speculation; Dow Jones up 0.26%

U.S. stock futures pointed to a higher open on Tuesday, even as Fridays upbeat U.S. jobs report continued to support speculation that the Federal Reserve could soon scale back its stimulus program. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.26% rise, S&P 500 futures signaled a 0.30% gain, while the Nasdaq 100 futures indicated a 0.34% increase. 

Data last week showed that the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists. 

Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 if the economy picks up as the central bank expects. 

Alcoa was likely to be in focus after the aluminum producer kicked off second-quarter earnings season on Monday with higher-than-expected numbers. 

The company posted earnings of 7 cents a share on revenues of USD5.85 billion, down from USD5.96 billion a year ago, while nalysts were expecting earnings of 6 cents per share, on revenues of USD5.83 billion. 

Shares were up 1.39% in pre-market trade. 

In the tech sector, Blackberry was expected to be active, as the Canadian smartphone maker was set to hold its annual meeting Tuesday morning, after last week's poor quarterly results triggered a 28% dive in share price. 

Separately, Dell dipped 0.04% in extended trading after the USD24.4 billion buyout proposal from Chief Executive Officer Michael Dell and partner Silver Lake Management got a surprise endorsement On Monday from Institutional Shareholder Services. 

Other stocks expected to be in focus included Wolverine Worldwide and Helen of Troy, due to report earnings later in the day. 

Across the Atlantic, European stock markets were higher The EURO STOXX 50 climbed 0.65%, France’s CAC 40 advanced 0.60%, Germany's DAX rallied 0.97%, while Britain's FTSE 100 jumped 0.83%. 

During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.49%, while Japan’s Nikkei 225 Index surged 2.58%.

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Forex - GBP/USD falls to session lows after U.K. data

The pound erased gains against the dollar on Tuesday after official data showed that U.K. manufacturing output fell by the most in four months in May, while industrial output was flat.

GBP/USD hit 1.4881 during European morning trade, the session low; the pair subsequently consolidated at 1.4884, shedding 0.44%.

Cable was likely to find support at 1.4856, Monday’s low and a four-month low and resistance at 1.4965, Monday’s high.

The Office for National Statistics said that U.K. manufacturing production fell 0.8% in May, compared to expectations for a 0.3% increase
. 
Manufacturing production fell at an annual rate of 2.9% in May, compared to expectations for a 1.6% decline. 

The ONS said industrial production was flat in May, disappointing expectations for a 0.2% increase, and was 2.3% lower on a year-over-year basis.

A separate report showed that the U.K. trade deficit widened to GBP8.49 billion in May, a six month high, from a deficit of GBP8.43 billion in April. Economists had forecast a deficit of GBP8.47 billion.

The data dampened expectations that the economic recovery is gaining momentum, after data last week showed that service sector activity in the U.K. expanded at the fastest pace since March 2011 in June, while manufacturing activity expanded at the fastest pace in more than two years.

Earlier Tuesday, private sector reports showed that U.K. house prices rose in June, and retail sales increased last month.

Last week the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.’s economic recovery.

Meanwhile, demand for the dollar continued to be supported by expectations that the Federal Reserve will start to unwind its asset purchase program later this year.

Sterling fell to four month lows against the euro, with EUR/GBPadvancing 0.45% to 0.8644.

Finance ministers from the European Union were to hold talks in Brussels later Tuesday.

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