Forex - EUR/USD gains on soft U.S. housing data

Disappointing data on new U.S. home sales sent the dollar weakening against the euro on Friday by keeping expectations alive by many that monetary policy in the U.S. will remain ultra-loose for the foreseeable future.

In U.S. trading on Friday, EUR/USD was up 0.32% at 1.3398, up from a session low of 1.3334 and off from a high of 1.3410.

The pair was likely to find support at 1.3298, Thursday's low, and resistance at 1.3452, Tuesday's high.

The Commerce Department reported earlier that new home sales in the U.S. dropped 13.4% to 394,000 units in July, far worse than market expectations for a 1.4% decline. 

In June, new home sales rose 3.6% to 455,000 units. 

The numbers kept expectations going that while the Federal Reserve remains ready to begin scaling back the pace of its USD85 billion in monthly asset purchases this year, a start date may come later such as in December as opposed to September.

Stimulus tools such as monthly bond purchases drive down interest rates to spur recovery, weakening the dollar in the process.

Fed officials have said they will pay close attention to economic indicators before deciding when to taper stimulus programs.

On Thursday, the Department of Labor reported the number of people filing for initial jobless claims last week rose by 13,000 to 336,000, a little higher than forecasts for 330,000, which helped soften the dollar in quiet trading.

Meanwhile in Europe, Germany's gross domestic product grew 0.7% in the second quarter from the first, in line with market expectations.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.34% at 0.8597 and EUR/JPY trading up 0.18% at 132.05.

Official data revealed that the U.K. gross domestic product grew by 0.7% in the second quarter from the first, beating expectations for a 0.6% expansion.

The U.K. Office for National Statistics said in a preliminary report earlier that business investment rose 0.9% in the second quarter, surpassing expectations for a 0.6% increase after a 1.9% contraction in the first quarter. 

Data also showed that mortgage approvals in the U.K. rose by GBP37,200 in July after a GBP37,300 increase in June. Analysts had expected mortgage approvals to rise by GBP38,800 last month.

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

The pound erased gains against the U.S. dollar on Friday, despite upbeat U.K. economic growth data released earlier in the day, as expectations for a near-term end to the Federal Reserve's stimulus program still supported the greenback. 

GBP/USD pulled away from 1.5638, the pair's highest since August 21, to hit 1.5556 during U.S. morning trade, shedding 0.21%. 

Cable was likely to find support at 1.5510, the low of August 15 and resistance at 1.5638, the session high. 

Sterling strengthened against the dollar earlier, after official data showed that the U.K. gross domestic product grew by 0.7% in the second quarter, higher than expectations for a 0.6% expansion. 

Separately, the U.K. Office for National Statistics said, in a preliminary report, that business invest rose 0.9% in the last quarter, beating expectations for a 0.6% increase, after a 1.9% decline in the three months to March. 

Data also showed that mortgage approvals in the U.K. rose less-than-expected in July, rising by GBP37,200 after a GBP37,300 increase the previous month. Analysts had expected mortgage approvals to rise by GBP38,800 last month. 

But the greenback remained supported after the minutes of the Fed's July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.

Sterling was also lower against the euro with EUR/GBP gaining 0.31%, to hit 0.8596. 

Also Friday, official data showed that U.S. new home sales dropped 13.4%, or by 394,000 units, in July, confounding expectations for a 1.4% decline. In June, new home sales rose 3.6% by 455,000 units. 

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Forex - EUR/USD erases losses after downbeat U.S. data

The euro erased losses against the U.S. dollar on Friday, as the release of downbeat U.S. new home sales data weighed on demand for the greenback. 

EUR/USD pulled away from 1.3334, the session low, to hit 1.3368 during U.S. morning trade, adding 0.09%. 

The pair was likely to find support at 1.3298, Thursday's low and resistance at 1.3427, the high of August 21. 

Official data showed that U.S. new home sales dropped 13.4%, or by 394,000 units, in July, confounding expectations for a 1.4% decline. In June, new home sales rose 3.6% by 455,000 units. 

The data came a day after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose by 13,000 to a seasonally adjusted 336,000, slightly higher than forecasts for 330,000. 

The greenback had strengthened broadly on Wednesday, after the minutes of the Federal Reserve's July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.

The euro was also higher against the pound with EUR/GBP rising 0.29%, to hit 0.8593. 

Also Friday, official data showed that the U.K. gross domestic product grew by 0.7% in the second quarter, higher than expectations for a 0.6% expansion. 

Separately, the U.K. Office for National Statistics said, in a preliminary report, that business invest rose 0.9% in the last quarter, beating expectations for a 0.6% increase, after a 1.9% decline in the three months to March. 

Data also showed that mortgage approvals in the U.K. rose less-than-expected in July, rising by GBP37,200 after a GBP37,300 increase the previous month. Analysts had expected mortgage approvals to rise by GBP38,800 last month.

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New home sales fall more-than-expected

New home sales in the U.S. fell more-than-expected last month, official data showed on Thursday.

In a report, the Census Bureau said that new home sales fell to a seasonally adjusted annual rate of 394K, from 455K in the preceding month whose figure was revised down from 497K.

Analysts had expected new home sales to fall to 490K last month.

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U.S. stocks open higher ahead of data; Dow Jones up 0.17%

U.S. stocks opened higher on Friday, a day after trading was halted in all Nasdaq securities for more than three hours, as markets eyed the release of U.S. new home sales data later in the day. 

During early U.S. trade, the Dow Jones Industrial Average added 0.17%, the S&P 500 index rose 0.27%, while the Nasdaq Composite index gained 0.70%. 

On Wednesday, the minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.

In the tech sector, Apple slipped 0.17% after billionaire investor Carl Icahn tweeted that the company's CEO Tim Cook was planning a bigger buyback. 

The news came after Icahn revealed last week that he had taken a large position in Apple, which is estimated to be worth more than USD1 billion. 

Separately, a number of images were leaked on Thursday of what could be Apple's new line of iPhones. 

On the upside, Microsoft surged 6.51% after the company said CEO Steve Ballmer will retire within 12 months. 

Meanwhile, Moody's Investors Service warned it might cut the credit ratings of the six of the biggest U.S. lenders, including Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo. 

The ratings agency said the U.S. government may be unlikely to bail the banks out should they face trouble in the future. 

At the open of the U.S. trading session, Goldman Sachs fell 0.24% and JP Morgan dipped 0.06%, while Morgan Stanley and Wells Fargo gained 0.04% and 0.28% respectively. 

Other stocks likely to be in focus included Foot Locker and Hibbett Sports, scheduled to post quarterly results. 

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 climbed 0.72%, France’s CAC 40 rose 0.34%, Germany's DAX advanced 0.40%, while Britain's FTSE 100 jumped 0.93%. 

During the Asian trading session, Hong Kong's Hang Seng Index fell 0.15%, while Japan’s Nikkei 225 Index surged 2.21%. 

Later in the day, the U.S. was to release official data on new home sales.

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Forex - USD/JPY near 3-week highs, eyes on U.S. data

The U.S. dollar was trading near three-week highs against the yen on Friday, ahead of U.S. new home sales data, as growing expectations for the Federal Reserve to soon begin tapering its stimulus program sent the greenback broadly higher. 

USD/JPY hit 99.15 during European afternoon trade, the pair's highest since August 5; the pair subsequently consolidated at 98.99, rising 0.27%. 

The pair was likely to find support at 97.75, Thursday's low and resistance at 99.95, the high of August 2. 

The greenback remained supported after the minutes of the Fed’s July meeting on Wednesday showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.

The yen was lower against the euro with EUR/JPY gaining 0.29%, to hit 132.19. 

Later in the day, the U.S. was to release official data on new home sales.

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Forex Trading Signal for 23rd August 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: 1.33461

T/P: 1.33700

S/L: 1.33000

GBP/USD

Down Trend:

(1) SELL

E/P: 1.55975

T/P: 1.55500

S/L: 1.56500

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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Gold futures edge higher in thin trade

Gold futures edged higher in thin trade on Friday, as Thursday's U.S. jobless claims data continued to support the precious metal, although growing expectations for a near-term end to the Federal Reserve's stimulus program weighed.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,372.00 a troy ounce during European afternoon hours, edging up 0.09%. 

The December contract settled up 0.05%, at USD1,370.8 a troy ounce on Thursday.

Gold futures were likely to find support at USD1,356.00 a troy ounce, Thursday's low and resistance at USD1,384.00, the high from August 19. 

Gold prices found support after the Department of Labor on Thursday said the number of people who filed for unemployment assistance in the U.S. last week rose by 13,000 to a seasonally adjusted 336,000, slightly higher than forecasts for 330,000. 

But gains were limited after the minutes of the central bank’s July meeting on Wednesday showed that Fed officials were "broadly comfortable" with plans to scale back the bank’s USD85 billion-a-month stimulus program.

However, policymakers remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.

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.

The central bank is scheduled to meet September 17-18 to review the economy and assess policy.

Elsewhere on the Comex, silver for September delivery added 0.17% to trade at USD23.075 a troy ounce, while copper for September delivery rose 0.28% to trade at USD3.339 a pound.

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U.S. futures dip ahead of new home sales; Dow Jones down 0.11%

U.S. stock futures pointed to moderately lower open on Friday, ahead of the release of U.S. new home sales data and amid growing expectations for a near-term end to the Federal Reserve's bond-buying program. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.11% fall, S&P 500 futures signaled a 0.08% loss, while the Nasdaq 100 futures indicated a 0.02% slip. 

On Wednesday, the minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.

Tech stocks were expected to be active, after billionaire investor Carl Icahn tweeted that Apple CEO Tim Cook was planning a bigger buyback.

The news came after Icahn revealed last week that he had taken a large position in Apple, which is estimated to be worth more than USD1 billion. 

Separately, a number of images were leaked on Thursday of what could be Apple's new line of iPhones. The tech giant's shares were up 0.41% in pre-market trade. 

The financial sector was also likely to be in focus, after Moody's Investors Service warned it might cut the credit ratings of the six of the biggest U.S. lenders, including Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo. 

The ratings agency said the U.S. government may be unlikely to bail the banks out should they face trouble in the future. 

Other stocks likely to be in focus included Foot Locker and Hibbett Sports , scheduled to post quarterly results later in the day. 

Across the Atlantic, European stock markets were mixed to lower. The EURO STOXX 50 dipped 0.06%, France’s CAC 40 shed 0.42%, Germany's DAX eased 0.02%, while Britain's FTSE 100 rose 0.20%. 

During the Asian trading session, Hong Kong's Hang Seng Index fell 0.15%, while Japan’s Nikkei 225 Index surged 2.21%. 

Later in the day, the U.S. was to release official data on new home sales.

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Dollar broadly higher vs. rivals, U.S. data ahead

The U.S. dollar was broadly higher against the other major currencies on Friday, supported by growing expectations for a near-term end to the Federal Reserve's stimulus program, while investors eyed the release of U.S. new home sales data later in the day. 

During European morning trade, the dollar was steady against the euro, with EUR/USD inching 0.03% higher to 1.3359. 

The greenback remained supported after the minutes of the Fed’s July meeting on Wednesday showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.

The greenback was lower against the pound, with GBP/USD adding 0.23% to 1.5621. 

The pound strengthened after official data showed that the U.K. gross domestic product grew by 0.7% in the second quarter, higher than expectations for a 0.6% expansion. 

Separately, the U.K. Office for National Statistics said, in a preliminary report, that business invest rose 0.9% in the last quarter, beating expectations for a 0.6% increase, after a 1.9% decline in the three months to March. 

Data also showed that mortgage approvals in the U.K. rose less-than-expected in July, rising by GBP37,200 after a GBP37,300 increase the previous month. Analysts had expected mortgage approvals to rise by GBP38,800 last month. 

Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY edging up 0.19% to trade at 98.91, and withUSD/CHF gaining 0.15% to 0.9246. 

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.38% to 1.0558, AUD/USDeasing 0.08% to 0.8997 and NZD/USD shedding 0.39% to 0.7798. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.06% to 81.55. 

Later in the day, the U.S. was to release official data on new home sales.

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Forex - GBP/USD rises on upbeat U.K. growth data

The pound rose against the U.S. dollar on Friday, boosted by the release of upbeat U.K. economic growth data, while uncertainty over the future of the Federal Reserve's stimulus program. 

GBP/USD hit 1.5638 during European morning trade, the pair's highest since August 21; the pair subsequently consolidated at 1.5632, adding 0.28%. 

Cable was likely to find support at 1.5562, Thursday's low and resistance at 1.5718, the high of August 21 and a one-month high. 

Sterling found support after official data showed that the U.K. gross domestic product grew by 0.7% in the second quarter, higher than expectations for a 0.6% expansion. 

Separately, the U.K. Office for National Statistics said, in a preliminary report, that business invest rose 0.9% in the last quarter, beating expectations for a 0.6% increase, after a 1.9% decline in the three months to March. 

Data also showed that mortgage approvals in the U.K. rose less-than-expected in July, rising by GBP37,200 after a GBP37,300 increase the previous month. Analysts had expected mortgage approvals to rise by GBP38,800 last month. 

Meanwhile, markets were jittery after U.S. jobless claims data on Thursday fuelled fresh uncertainty over whether the U.S. central bank will soon begin tapering its bond-buying program. 

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose by 13,000 to a seasonally adjusted 336,000, slightly higher than forecasts for 330,000. 

Sterling was higher against the euro with EUR/GBP shedding 0.22%, to hit 0.8549. 

Later in the day, the U.S. was to release official data on new home sales.

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European stocks fall in subdued trade; Dax down 0.22%

European stocks were lower in subdued trade on Friday, after U.S. jobless claims data on Thursday sparked fresh uncertainty over the future of the Federal Reserve's stimulus program. 

During European morning trade, the EURO STOXX 50 fell 0.28%, France’s CAC 40 retreated 0.65%, while Germany’s DAX 30 slipped 0.22%. 

The Department of Labor on Thursday said the number of people who filed for unemployment assistance in the U.S. last week rose by 13,000 to a seasonally adjusted 336,000, slightly higher than forecasts for 330,000. 

The data came a day after the minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale slid 0.32% and 0.48%, while Germany's Deutsche Bank added 0.24%. 

Among peripheral lenders, Spanish bank Banco Santander eased 0.09% and BBVA edged up 0.13%, while in Italy, Unicredit rose 0.35% and Intesa Sanpaolo dropped 0.51%. 

Elsewhere, Dutch lender ING Groep rallied 1.04% after Morgan Stanley raised its rating on the shares to overweight from equal weight. 

In London, FTSE 100 fell 0.17%, weighed by losses in financial stocks. 

HSBC Holdings lost 0.27% and Barclays retreated 0.71%, while Lloyds Banking plummeted 1%. The Royal Bank of Scotland overperformed on the other hand, rallying 1.66%. 

Mining stocks were also on the downside, as Rio Tinto and BHP Billiton declined 0.16% and 0.80% respectively, while Glencore Xstrata and Polymetal shed 0.56% and 1.53%. 

On the upside, Croda shares surged 2.38% after Deutsche Bank raised its recommendation on the world’s second-biggest maker of cosmetic ingredients to buy from hold. 

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.18% fall, S&P 500 futures signaled a 0.17% loss, while the Nasdaq 100 futures indicated a 0.12% slip. 

Later in the day, the U.S. was to release official data on new home sales.

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