Forex - USD/JPY rises after disappointing Japanese data

The U.S. dollar traded higher against the Japanese yen during Tuesday’s Asian session, gaining some strength against the Japanese currency for the first time in several days following the release of some concerning data points out of the world’s third-largest economy.

In Asian trading Tuesday, USD/JPY rose 0.12% to 98.08. The pair was likely to find resistance at 100.45, Wednesday's high, and support at 97.64, the earlier low. 

Data released earlier Tuesday showed household spending in Japan fell 0.4% last month. Economists were expecting a 1.4% increase. 

Another report showed Japanese industrial production dropped 3.3%, far worse than the 1.5% decline forecast by economists. 

Separately, Japan’s Statistics Bureau said unemployment in the world’s third-largest economy fell to 3.9% in June from 4.1% in May. Economists expected the June reading to come in at 4%. 

Those data points come after a report released Monday that showed Japanese retail sales rose by an annualized rate of 1.6% in June, less than the expected 1.9% increase, but up from a 0.8% gain the previous month. 

Also on Monday, Bank of Japan Governor Haruhido Kuroda said the stimulus measures introduced by the central bank last April are having positive effects on financial markets, the economy, and expectations for price rises. 

Speaking at the Research Institute of Japan, in Tokyo, Kuroda cautioned however that the BoJ is still far from achieving its 2% inflation goal, comments that sent the yen soaring and Japanese stocks plummeting. 

In U.S. economic news out Monday, the National Association of Realtors said its Pending Homes Sales Index fell 0.4% to 110.9 in June and the May reading was revised lower to 111.3 from 112.3. 

Elsewhere, EUR/JPY also rose 0.08% to 130.04 while AUD/JPY fell 0.21% to 89.99.

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Forex Trading Signal for 30th 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) BUY

E/P: 1.32629

T/P: 1.32300

S/L: 1.33000

GBP/USD

Down Trend:

(1) SELL

E/P: 1.53401

T/P: 1.53000

S/L: 1.54000

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Daily forex signals are sent ontime to only our subcribers.

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Asian stocks mostly higher following Japanese data; Nikkei up 0.63%

Most Asian stocks traded higher Tuesday following a spate of regional data points, including some that helped boost Japanese shares. 

In Asian trading Tuesday, Japan’s Nikkei 225 rose 0.63 after data released earlier Tuesday showed household spending in Japan fell 0.4% last month. Economists were expecting a 1.4% increase. 

Another report showed Japanese industrial production dropped 3.3%, far worse than the 1.5% decline forecast by economists. 

Separately, Japan’s Statistics Bureau said unemployment in the world’s third-largest economy fell to 3.9% in June from 4.1% in May. Economists expected the June reading to come in at 4%. 

Hong Kong’s Hang Seng fell 0.15%, but the Shanghai Composite rose 0.24%. Australia’s S&P/ASX 200 Index dropped 0.4% after AAP reported taders are pricing in a 79 per cent chance of an interest rate cut at the next Reserve Bank of Australia meeting on August 6. Australia’s benchmark interest rate is currently a record low of 2.75%. 

In a report released earlier Tuesday, the Australian Bureau of Statistics said that Australian building approvals fell 6.9% following a decline of 4.3% in the prior week. Analysts had expected Australian building approvals to rise to 2.3% last week.

New Zealand’s NZSE 50 slipped 0.47% as the kiwi continued to fall after Prime Minister John Key called the currency overvalued in remarks made Monday. 

South Korea’s Kospi added 0.52% after the Korea National Statistical Office said that South Korean industrial production rose 0.4% in June. The May reading was revised up to -0.1% from -0.4%. Analysts had expected South Korean industrial production to rise 0.4% last month. 

Singapore’s Straits Times Index added 0.25% while S&P 500 futures rose 0.10% a day after the benchmark U.S. index lost 0.37%.

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U.S. stocks fall on Federal Reserve uncertainty; Dow dips 0.24%

U.S. stocks closed lower on Monday after investors avoided equities ahead of the Federal Reserve's Wednesday announcement on interest rates and monetary policy, which many hope will provide more guidance as to when stimulus measures may end.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.24%, the S&P 500 index fell 0.37%, while the Nasdaq Composite index fell 0.39%.

Uncertainty over when the Federal Reserve will begin to taper monetary stimulus programs such as its monthly USD85 billion bond-buying program watered down equities prices.

Monthly asset purchases tend to drive down borrowing costs across the economy, making stocks rise as a side effect, though uncertainty was when the U.S. central bank will unwind such programs largely sent investors avoiding stock prices on Monday.

Elsewhere on Monday, the National Association of Realtors reported that pending home sales in the U.S. fell 0.4% in June, less than an expected 1% decline but below a 5.8% rise the previous month, which added to the uncertainty surrounding the Federal Reserve's plans for the economy, dampening appetite for stocks throughout the session.

Leading Dow Jones Industrial Average performers included Caterpillar, up 1.18%, Verizon Communications, up 0.94%, and UnitedHealth Group, up 0.79%.

The Dow Jones Industrial Average's worst performers included Bank of America, down 1.36%, Hewlett-Packard, down 1.27%, and Chevron, down 1.05%.

European indices, meanwhile, finished mixed.

After the close of European trade, the EURO STOXX 50 fell 0.01%, France's CAC 40 rose 0.11%, while Germany's DAX 30 finished up 0.17%. Meanwhile, in the U.K. the FTSE 100 finished up 0.08%.

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Forex - Dollar holds steady ahead of Fed meeting, jobs data

The dollar traded steady against most major currencies on Monday, edging lower on sentiments the Federal Reserve won't rush to taper stimulus programs though uncertainty over monetary policy in general supported the currency.

Investors snapping up safe-haven dollar positions ahead of the Fed's Wednesday announcement on monetary policy and Friday's July jobs report bolstered the greenback, sending it in positive territory periodically.

In U.S. trading on Monday, EUR/USD was down 0.09% at 1.3268.

The dollar rose earlier in the session amid growing sentiment that while the U.S. economy continues to improve, recovery is not going fast enough to prompt the Federal Reserve to rush to taper monetary stimulus programs such as its monthly USD85 billion bond-buying program.

While a decision to keep stimulus programs in place should keep the dollar weak by nature, the greenback saw demand on Monday due to its popularity as a safe-haven asset in times of uncertainty.

Elsewhere on Monday, the National Association of Realtors reported that pending home sales in the U.S. fell 0.4% in June, less than an expected 1% decline but below a 5.8% rise the previous month, which added to the uncertainty surrounding the Federal Reserve.

Some viewed the data as positive enough to keep the Fed on track to wind down stimulus programs this year and open the door to a longer-term strengthening trend for the U.S. currency, which gave the greenback some support.

The dollar also rose amid demand from investors looking to spend the week in a safe and liquid asset class before the release of Friday's July jobs report, which could provide currency markets with fresh steering currents.

Later in the session, however, the greenback gave back earlier gains as investors opted for the yen to ride out uncertainty

The greenback, meanwhile, was up against the pound, with GBP/USDtrading down 0.19% at 1.5357.

The dollar was down against the yen, with USD/JPY down 0.58% at 97.73, and up against the Swiss franc, with USD/CHF trading up 0.19% at 0.9302.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.22% at 1.0255, AUD/USD down 0.63% at 0.9204 and NZD/USD trading down 0.63% at 0.8031.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 81.74.

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Forex - USD/JPY falls on Japanese data, Fed uncertainty

The yen firmed against the dollar on Monday even after Japanese retail sales missed expectations, as the numbers came just one day after inflation figures outpaced market calls.

Ongoing uncertainty over the fate of U.S. monetary stimulus measures pushed the dollar lower against its Japanese counterpart as well.

In U.S. trading on Monday, USD/JPY was trading at 97.83 down 0.48%, up from a session low of 97.64 and off a high of 98.35.

The pair was likely to find resistance at 100.45, Wednesday's high, and support at 97.64, the earlier low.

In Japan, government data released earlier revealed that retail sales rose by an annualized rate of 1.6% in June, less than the expected 1.9% increase, but up from a 0.8% gain the previous month. 

While shy of market calls, the numbers came in strong enough to spark demand for the safe haven yen, which performs well amid times of market uncertainty.

Separately, Bank of Japan Governor Haruhido Kuroda said the stimulus measures introduced by the central bank last April are having positive effects on financial markets, the economy, and expectations for price rises. 

Speaking at the Research Institute of Japan, in Tokyo, Kuroda cautioned however that the BoJ is still far from achieving its 2% inflation goal

On Friday, Japan reported that the country's consumer price index rose 0.4% on year in June, beating expectations for a 0.3% gain, which continued to support the yen in Monday afternoon trading.

On a monthly basis, Japan's June inflation rate rose 0.2% from May, beating expectations for a 0.1% gain.

Meanwhile in the U.S., the National Association of Realtors reported that pending home sales in the U.S. fell 0.4% in June, less than an expected 1% decline but below a 5.8% rise the previous month, which added to the uncertainty surrounding the fate of U.S. stimulus programs.

Some viewed the data as positive enough to keep the Fed on track to wind down stimulus programs this year and open the door to a longer-term strengthening trend for the U.S. currency, though uncertainty surrounding the fate of U.S. stimulus programs such as the Fed's monthly USD85 billion bond-buying program made the yen an attractive buy on Monday.

The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.60% and trading at 150.32 and EUR/JPY trading down 0.61% at 150.31.

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Forex - GBP/USD remains lower after U.S., U.K. data

The pound remained lower against the U.S. dollar in subdued trade on Monday, after the release of better-than-expected U.S. data as market awaited monetary policy statements by both the Federal Reserve and the Bank of England later in the week. 

GBP/USD hit 1.5329 during U.S. morning trade, the pair's lowest since July 25; the pair subsequently consolidated at 1.5340, shedding 0.30%. 

Cable was likely to find support at 1.5265, the low of July 25 and resistance at 1.5440, the high of June 26. 

Industry data showed tha U.S. pending home sales fell 0.4% in June, less than the expected 1% decline, after a 5.8% rise the previous month.

The data came as markets were jittery ahead of the Fed's upcoming policy meeting, after mixed U.S. economic reports last week fuelled further uncertainty over whether the central bank will soon begin to scale back its bond-buying program. 

In the U.K., the Confederation of British Industry said that its index of realized sales rose more-than-expected in July, advancing to 17 from a reading of 1 the previous month. Analysts had expected the index to rise to 10 last month. 

Separately, the Bank of England said net lending to individuals rose to GBP1.5 billion in June, from GBP1.2 billion the previous month. 
Analysts had expected net lending to individuals to rise to GBP1.4 billion last month. 

Sterling was steady against the euro with EUR/GBP easing up 0.05%, to hit 0.8636. 

Market participants were also looking ahead to the BoE's policy statement on Thursday for indications on the future of the bank's monetary stimulus program, after official data last week showed that growth in the U.K. economy accelerated in line with expectations in the second quarter. 

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U.S. stocks mixed to lower ahead of data, Fed; Dow Jones down 0.23%

U.S. stocks were mixed to lower on Monday, ahead of U.S. data as markets were jittery before the Federal Reserve's highly anticipated policy-setting meeting this week, amid ongoing uncertainty over the future of the central bank's monetary stimulus program. 

During early U.S. trade, the Dow Jones Industrial Average slipped 0.23%, the S&P 500 index edged down 0.22%, while the Nasdaq Composite index inched 0.02% higher. 

Markets were jittery as a string of mixed U.S. economic reports last week fuelled further uncertainty over whether the Fed will soon begin to scale back its bond-buying program. 

On Friday, the University of Michigan said its index of consumer sentiment ticked up to 85.1 in July from a reading of 83.9 the previous month, beating expectations for a rise to 84.0. 

The data came a day after the Labor Department said the number of individuals filing for initial jobless benefits the previous week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000. 

In the tech sector, Dell dropped 0.70% after founder Michael Dell said he won’t raise his buyout offer for the company and admitted that he had agreed to a method of counting shareholder votes that "does not make sense," according to a Bloomberg report. 

Last week, Michael Dell and partner Silver Lake Management raised their offer by a dime to USD13.75 a share, providing that the company's special committee agreed to change the rules so that nonvoters wouldn’t count as opposing the deal. 

Adding to losses, Amazon.com shares slid 0.30%, following reports the online retailer is planning to boost staff in 17 U.S. warehouses, adding more than 5,000 full-time jobs to meet increasing demand for the company's products. 

On the upside, Rockwood Holdings, the world’s largest producer of lithium products, jumped 1.17% after saying it will sell its clay-based additives business to Germany’s Altana for USD635 million. 

In the same sector, Perrigo, a U.S. maker of over-the-counter medicines, reportedly agreed to buy Irish drug company Elan Corp. for USD8.6 billion to gain a low-tax base for international expansion. Perrigo shares plunged 4.05% following the news. 

Among earnings, hotel and casino operator Wynn Resorts missed market expectations, but shares were still up 0.78%. 

Other stocks likely to be in focus included Hertz, Express Scripts, Hartford Financial and Herbalife, all scheduled to post results later in the day. 

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 added 0.22%, France’s CAC 40 rose 0.38%, Germany's DAX edged up 0.18%, while Britain's FTSE 100 gained 0.19%. 

During the Asian trading session, Hong Kong's Hang Seng Index retreated 0.54%, while Japan’s Nikkei 225 Index plunged 3.32%. 

Later in the day, the U.S. was to produce industry data on pending home sales.

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Gold futures push higher ahead of Fed meeting

Gold futures pushed higher on Monday, as markets eyed the Federal Reserve's policy meeting this week, amid growing uncertainty over the future of the central bank's monetary stimulus program.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,334.45 a troy ounce during European morning hours, jumping 0.95%. 

The August contract settled down 0.57%, at USD1,321.9 a troy ounce on Friday.

Gold futures were likely to find support at USD1,295.45 a troy ounce, the low from July 21 and resistance at USD1,347.85, the high from July 23.

Gold prices gained ground as a string of U.S. economic reports last week failed to convince market participants that the Fed will soon begin to taper its stimulus program. 

On Friday, the University of Michigan said its index of consumer sentiment ticked up to 85.1 in July from a reading of 83.9 the previous month, beating expectations for a rise to 84.0. 

The data came a day after the Labor Department said the number of individuals filing for initial jobless benefits the previous week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000.

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

An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies. 

Trade looked likely to remain subdued ahead of data on U.S. pending home sales later in the trading day.

Elsewhere on the Comex, silver for September delivery advanced 1.80% to trade at USD20.127 a troy ounce, while copper for September delivery added 0.12% to trade at USD3.108 a pound.

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Forex - GBP/USD erases gains despite positive U.K. data

The pound erased gains against the U.S. dollar on Monday, despite the release of positive U.K. economic reports as market sentiment weakened ahead of highly anticipated monetary policy statements by the Federal Reserve and the Bank of England later in the week. 

GBP/USD pulled away from 1.5413, the session high, to hit 1.5355 during European afternoon trade, slipping 0.20%. 

Cable was likely to find support at 1.5290, the low of July 24 and resistance at 1.5440, the high of June 26. 

In a report, the Confederation of British Industry said that its index of realized sales rose more-than-expected in July, advancing to 17 from a reading of 1 the previous month. Analysts had expected the index to rise to 10 last month. 

Separately, the Bank of England said net lending to individuals rose to GBP1.5 billion in June, from GBP1.2 billion the previous month. 
Analysts had expected net lending to individuals to rise to GBP1.4 billion last month. 

But investors remained cautious ahead of the Fed's policy meeting as a string of mixed U.S. economic reports last week fuelled further uncertainty over whether the central bank will soon begin to scale back its bond-buying program. 

Market participants were also eyeing the BoE's policy statement on Thursday for indications on the future of the bank's monetary stimulus program, after official data last week showed that growth in the U.K. economy accelerated in line with expectations in the second quarter. 

Sterling was steady against the euro with EUR/GBP easing up 0.06%, to hit 0.8637. 

Later in the day, the U.S. was to produce industry data on pending home sales.

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U.S. futures slip lower amid Fed jitters; Dow Jones down 0.26%

U.S. stock futures pointed to a lower open on Monday, as investors remained cautious ahead of the Federal Reserve's highly anticipated policy statement later in the week, for indications on the future of the central bank's stimulus program. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.26% fall, S&P 500 futures signaled a 0.29% decline, while the Nasdaq 100 futures indicated a 0.25% loss. 

Markets were jittery as a string of mixed U.S. economic reports last week fuelled further uncertainty over whether the Fed will soon begin to scale back its bond-buying program. 

On Friday, the University of Michigan said its index of consumer sentiment ticked up to 85.1 in July from a reading of 83.9 the previous month, beating expectations for a rise to 84.0. 

The data came a day after the Labor Department said the number of individuals filing for initial jobless benefits the previous week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000. 

In the tech sector, Dell was expected to be active after founder Michael Dell said he won’t raise his buyout offer for the company and admitted that he had agreed to a method of counting shareholder votes that "does not make sense," according to a Bloomberg report. 

Last week, Michael Dell and partner Silver Lake Management raised their offer by a dime to USD13.75 a share, providing that the company's special committee agreed to change the rules so that nonvoters wouldn’t count as opposing the deal. 

Amazon.com was also likely to be in focus, following reports the online retailer is planning to boost staff in 17 U.S. warehouses, adding more than 5,000 full-time jobs to meet increasing demand for the company's products.

Elsewhere, Rockwood Holdings, the world’s largest producer of lithium products, said it will sell its clay-based additives business to Germany’s Altana for USD635 million. 

In the same sector, Perrigo, a U.S. maker of over-the-counter medicines, reportedly agreed to buy Irish drug company Elan Corp. for USD8.6 billion to gain a low-tax base for international expansion. Perrigo shares dropped 0.92% in pre-market trade. 

Other stocks likely to be in focus included Hertz, Express Scripts, Hartford Financial and Herbalife, all scheduled to post results later in the day. 

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 added 0.22%, France’s CAC 40 rose 0.39%, Germany's DAX gained 0.33%, while Britain's FTSE 100 advanced 0.31%. 

During the Asian trading session, Hong Kong's Hang Seng Index retreated 0.54%, while Japan’s Nikkei 225 Index plunged 3.32%. 

Later in the day, the U.S. was to produce industry data on pending home sales.

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