Dollar mixed vs. rivals as markets eye Fed meeting

The U.S. dollar was mixed against the other major currencies on Tuesday, as investors' attention turned to the Federal Reserve's upcoming policy-setting meeting, amig ongoing uncertainty over the future of the central bank's monetary stimulus program. 

During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.10% to 1.3275. 

Markets were jittery as a string of recent U.S. economic reports fuelled uncertainty over whether the central bank will soon begin to scale back its bond-buying program. 

On Monday, industry data showed that 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 euro found support after data showed that the Gfk German consumer climate index rose more-than-expected in July, ticking up to 7.0 from a reading of 6.8 the previous month. 

Analysts had expected the index to rise to 6.9 this month. 

A separate report showed that Spain's gross domestic product contracted by 0.1% in the second quarter, in line with expectations, following a 0.5% contraction in the previous quarter. 

The greenback was steady against the pound, with GBP/USD edging up 0.02% to 1.5342. 

Elsewhere, the greenback was higher against the yen, with USD/JPYadding 0.21% to trade at 98.16, but lower against the Swiss franc, withUSD/CHF slipping 0.13% to 0.9299. 

In Japan, preliminary data on Tuesday showed that industrial production fell more-than-expected last month, dropping 3.3% after a 1.9% increase in May. 

Analysts had expected industrial production to decline 1.8% in June. 

A separate report showed that household spending in Japan fell at an annualized rate of 0.4% in June, confounding expectations for a 1% rise, following a 1.6% decline the previous month. 

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging up 0.17% to 1.0283,AUD/USD tumbling 1.53% to 0.9065 and NZD/USD retreating 0.54% to 0.7991. 

The Aussie came under pressure after official data showed that building approvals in Australia dropped 6.9% in June, confounding expectations for a 2.3% rise, after a 4.3% decline the previous month. 

In addition, Reserve Bank of Australia Governor Glenn Stevens said second-quarter inflation data suggests that there is still room to lower interest rates if necessary and that he wouldn't be surprised if the currency dropped further. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.04% to 81.82. 

Later in the day, the U.S. was to release data on the Standard & Poor's/Case-Shiller Composite-20 house price index, followed by the Conference Board's report on consumer confidence.

Read More

European stocks higher as markets eye central banks; Dax up 0.47%

European stocks were higher on Tuesday, boosted by the release of positive data out of German, while investors eyed highly anticipated policy statements by the Federal Reserve and the European Central Bank later in the week. 

During European morning trade, the EURO STOXX 50 climbed 0.45%, France’s CAC 40 rose 0.36%, while Germany’s DAX 30 gained 0.47%. 

Earlier Tuesday, data showed that the Gfk German consumer climate index rose more-than-expected in July, ticking up to 7.0 from a reading of 6.8 the previous month. 

Analysts had expected the index to rise to 6.9 this month. 

Financial stocks were broadly lower, as French lenders BNP Paribas and Societe Generale tumbled 1.15% and 0.65%, while Germany's Deutsche Bank plunged 3.96% after saying second-quarter profit fell 49% as it set aside about EUR600 million to cover legal costs. 

Among peripheral lenders, Spanish banks BBVA and Banco Santander declined 0.01% and 0.57% respectively, while Italy's Intesa Sanpaolo edged down 0.10%. 

On the upside, EDF surged 5.59% after the power generator boosted its earnings forecast for 2013. 

Alcatel-Lucent reported second-quarter sales and earnings that exceeded analysts’ estimates and said Qualcomm agreed to buy a minority stake, sending shares up 8.71%. 

In London, FTSE 100 added 0.28%. 

Financial stocks were mostly lower, as shares in Lloyds Banking dropped 0.63%, while the Royal Bank of Scotland and Barclays plummeted 1.92% and 3.77%. 

Earlier Tuesday, Barclays announced plans to raise GBP5.8 billion in a rights offering to boost capital as first-half profit fell 17%. 

Mining stocks were also on the downside, with BHP Billiton slipping 0.26%, while Anglo American and fell 0.32% and Evraz tumbled 1.26%. 

Oil and gas giant BP plunged 3.21% after saying second-quarter earnings fell to USD2.7 billion from USD3.6 billion a year earlier, missing the average estimate. 

In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.24% fall, S&P 500 futures signaled a 0.37% decline, while the Nasdaq 100 futures indicated a 0.24% loss. 

Also Tuesday, preliminary data showed that Spain's gross domestic product contracted by 0.1% in the second quarter, in line with expectations, following a 0.5% contraction in the previous quarter. 

Later in the day, the U.S. was to release data on the Standard & Poor's/Case-Shiller Composite-20 house price index, followed by the Conference Board's report on consumer confidence.

Read More

Gold futures slip lower ahead of Fed meeting

Gold futures slipped lower on Tuesday, as the U.S. dollar gained ground ahead of the Federal Reserve's upcoming policy meeting, 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 USD1,325.55 a troy ounce during European morning hours, sliding 0.32%. 

The December contract settled up 0.58%, at USD1,329.6 a troy ounce on Monday.

Gold futures were likely to find support at USD1,308.75 a troy ounce, the low from July 25 and resistance at USD1,340.15, the high from July 26.

Gold prices slipped after data on Monday showing that pending home sales fell less-than-expected in June added to expectations for a near-term end to the Federal Reserve's bond-buying program. 

Industry data showed that U.S. pending home sales fell 0.4% in last month, retreating from a more than six-year high, although the U.S. labour market has shown signs of strength in recent weeks. 

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. 

Traders were looking ahead to data on the Standard & Poor's/Case-Shiller Composite-20 house price index, followed by the Conference Board's report on consumer confidence, later in the trading day.

Elsewhere on the Comex, silver for September delivery fell 0.71% to trade at USD19.723 a troy ounce, while copper for September delivery slid 0.75% to trade at USD3.084 a pound.

Read More

Forex - USD/JPY rises after downbeat Japanese data, eyes on Fed

The U.S. dollar rose against the yen on Tuesday, after the release of downbeat economic reports out of Japan, while markets eyed the Federal Reserve's monthly policy meeting, set to begin later in the day. 

USD/JPY hit 98.47 during early European trade, the session high; the pair subsequently consolidated at 98.34, gaining 0.39%. 

The pair was likely to find support at 97.24, the low of June 26 and resistance at 99.36, the high of July 26. 

In Japan, preliminary data on Tuesday showed that industrial production fell more-than-expected last month, dropping 3.3% after a 1.9% increase in May. 

Analysts had expected industrial production to decline 1.8% in June. 

A separate report showed that household spending in Japan fell at an annualized rate of 0.4% in June, confounding expectations for a 1% rise, following a 1.6% decline the previous month. 

The greenback found some support after the release of positive U.S. data on Monday added to expectations for a near-term end to the Federal Reserve's bond-buying program. 

Industry data showed that 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 yen was lower against the euro with EUR/JPY advancing 0.36%, to hit 130.39. 

The single currency found support after data showed that the Gfk German consumer climate index rose more-than-expected in July, ticking up to 7.0 from a reading of 6.8 the previous month. 

Analysts had expected the index to rise to 6.9 this month. 

Later in the day, the U.S. was to release data on the Standard & Poor's/Case-Shiller Composite-20 house price index, followed by the Conference Board's report on consumer confidence.

Read More

Forex - EUR/USD almost unchanged after Gfk data, central banks ahead

The euro was almost unchanged against the U.S. dollar on Tuesday, after the release of positive German data, as markets were jittery ahead of the Federal Reserve's and the European Central Bank's policy-setting meetings this week. 

EUR/USD hit 1.3248 during late Asian trade, the session low; the pair subsequently consolidated at 1.3258, dipping 0.02%. 

The pair was likely to find support at 1.3177, the low of July 24 and resistance at 1.3300, the high of June 20. 

Data showed that the Gfk German consumer climate index rose more-than-expected in July, ticking up to 7.0 from a reading of 6.8 the previous month. 

Analysts had expected the index to rise to 6.9 this month. 

The greenback found some support on Monday, after the release of positive U.S. data added to expectations for a near-term end to the Federal Reserve's bond-buying program. 

Industry data showed that 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 euro was steady against the pound with EUR/GBP easing 0.02%, to hit 0.8644. 

Later in the day, preliminary data on German consumer price inflation and Spain's gross domestic product was to be released. 

The U.S. was to publish data on the Standard & Poor's/Case-Shiller Composite-20 house price index, followed by the Conference Board's report on consumer confidence.

Read More