Forex - Dollar falls as market awaits fresh Fed cue, data weigh

The dollar traded lower against most major currencies on Tuesday as investors continued to avoid greenback ahead of the release of the Federal Reserve's minutes from its July policy meeting on Wednesday.

Investors hope the report will provide clues on the fate of stimulus tools such as the Fed's USD85 billion monthly bond-buying program that weakens the dollar to spur recovery. 

In U.S. trading on Monday, EUR/USD was up 0.62% at 1.3418.

Hit-or-miss economic indicators over the past several weeks have fueled uncertainty as to when the Fed will announce plans to scale back stimulus tools, with solid dating prompting investors to trade on a September start to tapering and weaker data sparking others to bet on a December start date.

Trading was quiet on Tuesday, as most investors remained camped out in other currency positions or were active in the stock market that saw decent gains after a 4-day losing streak.

Elsewhere, the Federal Reserve Bank of Chicago’s national activity index for July came in at -0.15 from a revised -0.23 in June, though the number came in much worse than market expectations for a -0.10.

The data weakened the dollar by keeping expectations alive for many that the Federal Reserve will begin tapering stimulus tools in December as opposed to September.

The greenback, meanwhile, was down against the pound, with GBP/USDup 0.16% at 1.5674.

The dollar was down against the yen, with USD/JPY down 0.31% at 97.27, and down against the Swiss franc, with USD/CHF trading down 0.75% at 0.9172.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.38% at 1.0385, AUD/USD down 0.23% at 0.9093 and NZD/USD trading down 0.99% at 0.7988.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.42% at 80.94.

On Wednesday, markets will move on the release of the minutes from the Fed's July policy meeting.

Elsewhere, the U.S. will release industry data on existing home sales. 

Read More

Forex - USD/JPY falls as market awaits fresh cues from Federal Reserve

The dollar fell against the yen on Tuesday as investors avoided the greenback on the day before the release of the Federal Reserve's minutes from its July policy meeting.

Investors were hoping Fed language will reveal when the U.S. central bank will begin to taper its USD85 billion in monthly asset purchases, which have kept the U.S. currency weaker to spur recovery.

In U.S. trading on Tuesday, USD/JPY was trading at 97.24, down 0.33%, up from a session low of 96.92 and off a high of 97.87.

The pair was likely to find resistance at 98.12, Monday's high, and support at 97.36, Monday's low.

Hit-or-miss economic indicators over the past several weeks have fueled uncertainty as to when the Fed will announce plans to scale back stimulus tools, with solid dating prompting investors to trade on a September start to tapering and weaker data sparking others to bet on a December start date.

Trading was quiet on Tuesday, as most investors remained camped out in safe-haven yen positions to await the release of the Fed minutes on Wednesday.

Elsewhere, the Federal Reserve Bank of Chicago’s national activity index for July came in at -0.15 from a revised -0.23 in June, though the number came in much worse than market expectations for a -0.10.

The data weakened the dollar by keeping expectations alive for many that the Federal Reserve will begin tapering stimulus tools in December as opposed to September.

The yen, meanwhile, was up against the pound and down against the euro, with GBP/JPY down 0.19% and trading at 152.40 and EUR/JPYtrading up 0.29% at 130.48.

Read More

Forex - EUR/USD gains as U.S. economic gauge disappoints

The euro hit 6-month highs against the dollar on Tuesday after a Federal Reserve barometer of U.S. economic activity disappointed investors and dashed expectations held by many that monetary stimulus measures would begin to taper in September.

In U.S. trading on Tuesday, EUR/USD was up 0.69% at 1.3426, up from a session low of 1.3323 and off from a high of 1.3452.

The pair was likely to find support at 1.3316, Monday's low, and resistance at 1.3520, the high from Feb. 13.

The Federal Reserve Bank of Chicago’s national activity index for July came in at -0.15 from a revised -0.23 in June, though the number came in much worse than market expectations for a -0.10.

The data sparked a dollar selloff by keeping expectations alive for many that the Federal Reserve will begin tapering stimulus tools in December as opposed to December.

Stimulus programs such as the Fed's USD85 billion in monthly asset purchases tend to keep the dollar weak to spur recovery by keeping long-term interest rates low.

Trading was edgy, as the Fed will release the minutes of its July policy meeting on Wednesday, which many hope will offer more definitive clues as to when asset purchases will begin to unwind.

Hit-or-miss economic indicators have fueled uncertainty recently as to when the Fed will announce plans to scale back stimulus tools.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.50% at 0.8564 and EUR/JPY trading up 0.27% at 130.46.

On Wednesday, markets will move on the release of the minutes from the Fed's July policy meeting.

Elsewhere, the U.S. will release industry data on existing home sales. 

Read More

Dollar extends losses vs. euro amid Fed jitters

The dollar fell to six month lows against the euro on Tuesday and was weaker against the yen and the pound as uncertainty over how soon the Federal Reserve plans to start unwinding stimulus measures weighed.

During U.S. morning trade, the dollar fell to its lowest level since February against the euro, with EUR/USD advancing 0.73% to 1.3432.

The dollar came under pressure amid widespread speculation that the Fed may start to unwind its asset purchase program as soon as September after data last week showed that U.S. weekly jobless claims fell to an almost six year low.

Investors were looking to the minutes of the Fed’s July meeting on Wednesday for further indications as to when the central bank may start to pull back its asset purchase program. 

Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.

Demand for the single currency continued to be underpinned after data last week showed that the euro zone economy returned to growth in the second quarter, emerging from an 18-month recession. 

The dollar fell to one-week lows against the yen, with USD/JPY losing 0.48% to trade at 97.09.

The dollar was close to two-month lows against the pound, withGBP/USD rising 0.21% to 1.5682.

The dollar also moved lower against the Swiss franc, with USD/CHFshedding 0.77% to trade at 0.9173.

Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.32% to 0.9084, NZD/USD dropping 1.03% to 0.7984 and USD/CAD climbing 0.42% to 1.0389.

The Australian dollar weakened after the minutes of the Reserve Bank of Australia’s August meeting indicated that further rate cuts remain possible in the future.

Meanwhile, the New Zealand dollar fell sharply after Reserve Bank of New Zealand Governor Graeme Wheeler called the currency "overvalued".

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.51% to 80.87.

Read More

Forex - GBP/USD remains near 2-month highs

The pound remained near two-month highs against the U.S. dollar on Tuesday, as markets awaited the minutes of the Federal Reserve's latest policy meeting, as uncertainty over the future of the bank's stimulus program persisted. 

GBP/USD hit 1.5696 during U.S. morning trade, the pair's highest since June 18; the pair subsequently consolidated at 1.5671, rising 0.14%. 

Cable was likely to find support at 1.5608, Monday’s low and resistance at 1.5722, the high of June 18.

Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to taper its USD85 billion-a-month stimulus program.

Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.

Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.

Meanwhile, demand for the pound remained supported after better-than-expected data last week on U.K. jobless claims and retail sales boosted the outlook for the economic recovery. 

Sterling was lower against the euro with EUR/GBP gaining 0.55%, to hit 0.8568. 

Also Tuesday, official data on Tuesday showed that German producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis. 

Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.

Read More

European stocks remain sharply lower, eyes on Fed; Dax down 0.93%

European stocks remained sharply lower on Tuesday, as risk sentiment weakened ahead of the minutes of the Federal Reserve's latest policy meeting, amid ongoing uncertainty over the central bank's stimulus program. 

During European afternoon trade, the EURO STOXX 50 plummeted 1.40%, France’s CAC 40 tumbled 1.38%, while Germany’s DAX 30 retreated 0.93%. 

Investors were looking ahead to the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.

Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low. 

Financial stocks pushed lower, as French lenders BNP Paribas and Societe Generale dove 2.82% and 4.07%, while Germany's Deutsche Bank plummeted 2.13%. 

Among peripheral lenders, Spanish banks BBVA and Banco Santander plunged 2.92% and 3.25% respectively, while Italy's Intesa Sanpaolo and Unicredit lost 1.96% and 2.47%. 

Elsewhere, Deutsche Wohnen sank 3.33% after it offered to buy GSW Immobilien AG in an all-share transaction that would create the second-largest owner of German homes. 

In London, FTSE 100 dropped 0.57%, as U.K. lenders tracked their European counterparts sharply lower. 

Shares in HSBC Holdings retreated 0.43% and Barclays tumbled 1.72%, while the Royal Bank of Scotland and Lloyds Banking plummeted 0.84% and 2.84%. 

Mining stocks added to losses, as Rio Tinto and BHP Billiton plunged 1.30% and 3.08% respectively, while Glencore and Evraz saw shares dive 3.16% and 5.16%. 

Earlier in the day, Glencore reported first-half adjusted net income of USD2.04 billion, exceeding analysts' estimates for USD1.87 billion. The company also announced a goodwill impairment charge of USD7.7 billion arising from its purchase of Xstrata. 

In addition, BHP Billiton said full-year profit slumped 30% after prices declined. 

In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.03% gain, S&P 500 futures signaled a 0.04% rise, while the Nasdaq 100 futures indicated a 0.07% increase. 

Also Tuesday, official data showed that German producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis. 

Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.

Read More

U.S. futures steady, Fed minutes in focus; Dow Jones up 0.01%

U.S. stock futures pointed to a steady open on Tuesday, as markets were jittery ahead of the minutes of the Federal Reserve's latest policy meeting, amid ongoing uncertainty over the future of the bank's stimulus plan. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.01% gain, S&P 500 futures signaled a 0.03% rise, while the Nasdaq 100 futures indicated a 0.06% increase. 

Investors remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.

Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low. 

Auto stocks were expected to be active, after Tesla Motors, the electric-car maker led by billionaire Elon Musk, said its flagship Model S sedan received the highest crash test ratings of any car tested by U.S. regulators. 
The news sent shares in the company up 0.55% in after-hour trade. 

In company news, Blackstone Group was set to remain in the spotlight after the manager of private-equity real estate funds agreed to sell its 50% stake in London’s Broadgate complex for more than USD2.66 billion. 

JPMorgan Chase dipped 0.02% in extended trading, after declining weekend reports that U.S. authorities have opened a bribery investigation into whether the bank hired the children of Chinese officials to help it win lucrative business. 

Elsewhere, Google shares eased 0.05% pre-market, after gaining over 1% for the ninth anniversary of its IPO on Monday. 

Other stocks likely to be in focus included Home Depot, Best Buy, Barnes & Noble, JCPenney and Saks, scheduled to post results later in the day. 

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plummeted 1.47%, France’s CAC 40 plunged 1.50%, Germany's DAX tumbled 1.09%, while Britain's FTSE 100 retreated 0.59%. 

During the Asian trading session, Hong Kong's Hang Seng Index dove 2.20%, while Japan’s Nikkei 225 Index sank 2.63%.

Read More

Home Depot Q2 earnings beat expectations, boosts outlook

The world’s largest home improvement retailer Home Depot reported better-than-expected second quarter earnings on the back of strong revenue figures, it announced early Tuesday.

Earlier in the day, in its second quarter earnings report, Home Depot said earnings per share came in at USD1.24, above expectations for earnings of USD1.21 per share.

The company’s second quarter revenue totaled USD22.52 billion, beating forecasts for revenue of USD21.82 billion.

Home Depot now sees full year earnings per share at USD3.60 compared to a previous estimate of USD3.52 per share. 

The outlook for U.S. equity markets was mildly lower. The Dow Jones Industrial Average futures pointed to a loss of 0.1% at the open, S&P 500 futures lost 0.1%, while the Nasdaq 100 futures indicated a decline of 0.1% at the open.

Read More