Forex - EUR/USD lower as markets eye ECB, U.S. jobs data

The euro was lower against the U.S. dollar on Thursday, as investors remained catious ahead of the European Central Bank's policy statement and U.S. jobs data later in the day. 

EUR/USD hit 1.3163 during late Asian trade, the session low; the pair subsequently consolidated at 1.3175, shedding 0.24%. 

The pair was likely to find support at 1.3090, the low of July 19 and resistance at 1.3255, the high of August 30. 

The euro remained under pressure amid expectations that the ECB will reiterate its pledge to keep rates on hold following its policy meeting. 

Meanwhile, the dollar remained supported after upbeat U.S. manufacturing data on Tuesday reinforced expectations that the Federal Reserve could start to phase out stimulus measures as soon as this month. 

Separately, markets were jittery after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention in Syria. 

The euro was also lower against the pound with EUR/GBP edging down 0.12%, to hit 0.8442. 

Later in the day, Germany was to publish government data on factory orders. The ECB was to announce its benchmark interest rate, followed by a closely watched press conference with President Mario Draghi.

The U.S. was to release the ADP nonfarm payrolls report on private sector job creation, as well as the weekly government report on initial jobless claims. In addition, the ISM was to release data on non-manufacturing activity in the U.S.

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U.S. stocks gain on upbeat Federal Reserve Beige Book; Dow up 0.65%

U.S. stocks rose on Wednesday after the Federal Reserve released its widely-watched Beige Book that indicated the U.S. economy continues to recover.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.65%, the S&P 500 index rose 0.81%, while the Nasdaq Composite index rose 1.01%.

Earlier Wednesday, the Federal Reserve released its Beige Book, an analysis of current economic conditions, which revealed the U.S. economy continues to recovery.

The document revealed the U.S. economy is growing at a "modest to moderate pace," which drew applause on Wall Street.

Investors remained eager for the release of Friday’s U.S. nonfarm payrolls report, which is seen as a tipping point over whether the Fed will begin tapering stimulus programs this month.

Many investors expect the Federal Reserve to announce plans to unwind its USD85 billion monthly bond-buying program at its Sept. 17-18 policy meeting.

Monthly asset purchases send stocks rising by suppressing interest rates, though a decision to begin tapering the stimulus programs this month has largely been priced into trading.

Elsewhere, the U.S. Commerce Department reported that the U.S. trade deficit widened more than expected in July, hitting USD39.1 billion from a downwardly revised USD34.5 billion deficit in June, mainly due to improving imports. 

Analysts were expecting the trade deficit to widen to USD38.7 billion in July. 

Investors kept a cautious eye on Syria throughout the day.

The U.S. Senate Foreign Relations Committee on Wednesday gave President Barack Obama authority to use military force against Syria for its alleged use of chemical weapons in its civil war.

Separately, Russian President Vladimir Putin said he might support a U.N. Security Council resolution calling for military strikes provided that body was presented with conclusive proof that 
the Syrian government employed chemical weapons.

Putin insisted the U.S. had no right to strike Syria, a Russian ally, adding only the U.N. can authorize such a measure, though investors concluded on Wednesday that a military strike against Syria, which could engulf the broader Middle East, was not imminent.

Leading Dow Jones Industrial Average performers included Intel, up 2.54%, Coca-Cola, up 1.72%, and Verizon, up 1.70%.

The Dow Jones Industrial Average's worst performers included Microsoft, down 2.10%, IBM, down 0.43%, and Hewlett-Packard, down 0.40%.

European indices, meanwhile, finished higher.

After the close of European trade, the EURO STOXX 50 rose 0.19%, France's CAC 40 rose 0.16%, while Germany's DAX 30 finished up 0.19%. Meanwhile, in the U.K. the FTSE 100 finished up 0.10%.

On Thursday, the U.S. is to release the ADP nonfarm payrolls report on private-sector job creation, as well as the weekly government report on initial jobless claims.

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Forex - GBP/USD gains as U.K. service-sector report surprises

The pound traded higher against the dollar on Wednesday after a widely watched U.K. service-sector report surpassed market expectations.

Meanwhile, uncertainty over the possibility of U.S. military strikes against Syria and edginess ahead of the release of Friday's August jobs report repelled investors away from the greenback.

In U.S. trading on Wednesday, GBP/USD was trading at 1.5630, up 0.45%, up from a session low of 1.5556 and off from a high of 1.5647.

Cable was likely to find support at 1.5506, Monday's low, and resistance at 1.5718, the high from Aug. 21.

The Markit U.K. services purchasing managers’ index rose to 60.5 in August, the highest since December 2006, from 60.2 in July. The numbers defied consensus forecasts, as analysts were calling for a decline to 59.0.

The report, which came a day before the Bank of England unveils its latest decision on interest rates, said new business grew for the eighth successive month and added the latest increase was the largest seen in more than 16 years, fueling expectations that U.K. recovery is gaining steam.

The dollar, meanwhile, came under pressure amid uncertainty over whether the U.S. will launch military strikes against Syria.

U.S. President Barack Obama has asked for a Congressional nod to begin limited strikes against Syria for its alleged use of chemical weapons, though he said earlier Wednesday that he does not need approval to strike, which softened dollar demand.

Russian President Vladimir Putin said earlier he might support a U.N. Security Council resolution calling for military strikes provided that body was presented with conclusive proof that the Syrian government employed chemical weapons.

Putin insisted the U.S. had no right to strike Syria, a Russian ally, adding only the U.N. can authorize such a measure.

Investors remained eager for the release of Friday’s U.S. nonfarm payrolls report, which is seen as a tipping point over whether the Fed will begin tapering asset purchases this month.

Many investors expect the Federal Reserve to announce plans to unwind its USD85 billion monthly bond-buying program at its Sept. 17-18 policy meeting.

Monthly asset purchases weaken the dollar to spur recovery.

Elsewhere, the U.S. Commerce Department reported that the U.S. trade deficit widened more than expected in July, hitting USD39.1 billion from a downwardly revised USD34.5 billion deficit in June, mainly due to improving imports. 

Analysts were expecting the trade deficit to widen to USD38.7 billion in July. 

The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP down 0.11% at 0.8454 and GBP/JPY up 0.59% at 155.90.

On Thursday, the U.S. is to release the ADP nonfarm payrolls report on private-sector job creation, as well as the weekly government report on initial jobless claims.

Investors will also remain eager for the Bank of England's announcement on interest rates and monetary policy.

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Forex - EUR/USD holds steady after disappointing U.S. trade data

The euro held steady against the U.S. dollar on Wednesday, after the release of disappointing U.S. trade balance data, as renewed concerns over a possible U.S. military strike against Syria continued to linger. 

EUR/USD hit 1.3157 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3168, inching down 0.01%. 

The pair was likely to find support at 1.3090, the low of July 19 and resistance at 1.3227, the high of September 2. 

Official data showed that the U.S. trade deficit widened more-than-expected in July, falling to USD39.2 billion from a downwardly revised USD34.5 billion deficit the previous month. Analysts had expected the trade deficit to widen to USD38.7 billion in July. 

The data came as investors continued to speculate over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases after data on Tuesday showed that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in August. 

Investors were now looking ahead to Friday’s highly-anticipated U.S. nonfarm payrolls report which is seen as key to the Fed’s decision on tapering. 

Meanwhile, investors remained cautious after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention in Syria. 

In the euro zone, data earlier showed that the final reading of Germany’s services purchasing managers' index came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0. 

The euro was lower against the pound with EUR/GBP shedding 0.31%, to hit 0.8437. 

Also Wednesday, data showed that activity in the U.K. services sector expanded at the fastest rate in six-and-a-half years in August. 

Markit said the U.K. services purchasing managers’ index rose to 60.5 in August, the highest since December 2006, from 60.2 in July. Economists had forecast a decline to 59.0.

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European stocks push lower as Syria concerns weigh; Dax down 0.62%

European stocks pushed lower on Wednesday, despite globally positive euro zone data as renewed concerns over a potential U.S. military strike against Syria weighed on market sentiment and as investors eyed the European Central Bank's upcoming policy statement. 

During European afternoon trade, the EURO STOXX 50 retreated 0.87%, France’s CAC 40 declined 0.90%, while Germany’s DAX 30 slid 0.62%. 

Data showed that the final reading of Germany’s services PMI came in at 52.8 in August, up from a preliminary reading of 52.4. The euro zone’s services PMI dipped to 50.7, from an initial estimate for 51.0.

Meanwhile, data showed that euro zone retail sales rose by a seasonally adjusted 0.1% in July, below expectations for a 0.4% increase.

A separate report showed that the euro zone economy expanded by 0.3% in the second quarter, unrevised from the initial estimate. 

But concerns over possible U.S. military strikes against Syria weighed on sentiment after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention. 

Financial stocks extended losses, as BNP Paribas and Societe Generale tumbled 1.37% and 1.63%, while Germany's Deutsche Bank retreated 0.46%. 

Among peripheral lenders, Spanish banks BBVA and Banco Santander slid 0.57% and 0.74% respectively, while Italy's Unicredit and Intesa Sanpaolo plummeted 2.46% and 2.68%. 

Iliad added to losses, plunging 3.45%, after Xavier Niel, the founder of the French low-cost mobile-phone carrier, sold a 3% stake valued at about EUR320 million based on Tuesday's closing price. 

In London, FTSE 100 shed 0.43%, even as data showed that activity in the U.K. services sector expanded at the fastest rate in six-and-a-half years in August. 

U.K. lenders continued to track their European counterparts lower, as shares in HSBC Holdings dipped 0.01% and Barclays fell 0.27%, while Lloyds Banking and the Royal Bank of Scotland lost 1.20% and 2.10% respectively. 

Ryanair also remained sharply lower, down 13.07%, after the discount airline company said it may fall short of its full-year earnings targets after a summer heat wave weighed on bookings. 

On the upside, Vodafone was one of the top performers, jumping 1.58%, following the announcement earlier in the week that Verizon agreed to buy the company’s 45% stake in Verizon Wireless for USD130 billion. 

In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.08% loss, S&P 500 futures signaled a 0.03% dip, while the Nasdaq 100 futures indicated a 0.02% gain. 

Later in the day, the U.S. was to publish a report on the trade balance.

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U.S. futures edge lower as Syria fears re-emerge; Dow Jones down 0.08%

U.S. stock futures pointed to a steady to lower open on Wednesday, as concerns over a potential U.S. military strike against Syria re-emerged and amid growing expectations for the Federal Reserve to soon begin tapering its stimulus program. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.08% loss, S&P 500 futures signaled a 0.05% dip, while the Nasdaq 100 futures indicated a 0.04% gain. 

Concerns over possible U.S. military strikes against Syria weighed on sentiment after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention. 

Meanwhile, equity markets were also jittery after upbeat U.S. manufacturing data on Tuesday added to expectations that the U.S. central bank could start to unwind its asset purchase program at its upcoming policy meeting on September 17-18. 

The Institute for Supply Management said its purchasing managers’ index rose to 55.7 in August from a reading of 55.4 in July, expanding at the fastest rate since April 2011. Analysts had expected a reading of 54.0. 

The telecom sector was expected to remain active, a day after Vodafone confirmed it was selling its stake in Verizon Wireless to Verizon Communications for USD130 billion. Verizon shares were up 0.09% in after-hour trade, after tumbling over 2% in Tuesday's session. 

Nokia was also higher, surging 2.98% in extended trade, after gaining over 30% on Tuesday, when Microsoft said it was purchasing the Finnish company's mobile phone business for USD7.2 billion. 

Microsoft was down 0.49% pre-market. 

Auto stocks were also slated to move, after Moody's Investors Service said on Wednesday that it expected Ford, General Motors, Fiat and Peugeot-Citroen to lose a combined total of EUR5 billion in the region this year. 

Elsewhere, LinkedIn reportedly filed to raise about USD1 billion in a stock sale after a fivefold surge in its shares since its initial public offering in 2011. Shares plummeted 2.07% after hours. 

Other stocks likely to be in focus included Dollar General, Ciena and SAIC, scheduled to report second-quarter earnings later in the day. 

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 retreated 0.94%, France’s CAC 40 tumbled 0.95%, Germany's DAX declined 0.72%, while Britain's FTSE 100 slid 0.61%. 

During the Asian trading session, Hong Kong's Hang Seng Index shed 0.31%, while Japan’s Nikkei 225 Index climbed 0.54%. 

Later in the day, the U.S. was to publish a report on the trade balance.

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