Posts Tagged ‘Currency TipS’

Daily Forex News & Analysis – 12 August 2013

USD

The dollar rose on Friday as a result of speculation the Fed might taper at their September FOMC meeting. The greenback ended the day at 1.3340 to the euro and 96.21 to the yen. Today’s data includes The Monthly Budget in July which is expected to show the deficit deepen to -94bn from -69.6bn previously.

EUR

The euro fell versus most counterparts on Friday after data showed euro-zone banks repaid significantly less of their 3-year LTRO loans to the ECB than in the previous week, which led to concerns about interbank liquidity. The single currency ended the day at 1.3340 to the dollar and 128.34 to the yen.

GBP

The pound fell on Friday after the dollar outperformed it on speculation of Fed tapering whilst the yen was stronger as a result of better-than-expected Chinese data. Sterling ended the day 1.5496 to the dollar and 0.8605 to the euro. Today’s data includes the RICS house price Balance in July, which is is expected to show a rise to 24% from 21% previously.

JPY

The yen rose on Friday after strong Industrial Production data from China boosted the outlook for Japan because it is its largest trading partner. The yen ended the day at 96.21 to the dollar and 149.09 to the pound. Today’s data includes the minutes from the July BOJ meeting and Machine Orders in June, which are expected to show a 2.6% rise year-on-year but a -7.0% drop month-on-month.

TODAY’S FOREX REPORT 8/aug/2013

MARKET HEADLINES

Rupee trims losses in anticipation of government measures to boost currency

With markets anticipating government measures to curb the currency’s decline, rupee on Wednesday pared most of its losses after it was that the easing of overseas borrowing rules was being considered.The partially convertible rupee was trading at 61.16/20 per dollar at 1410 India time (0840 GMT), stronger than around 61.35 levels, though still weaker from its previous close of 60.77/78.

Financial sector regulators, including Raghuram Rajan, who was on Tuesday appointed to take over next month as governor of the Reserve Bank of India, were due to meet in Mumbai amid speculation that the government will soon announce steps to spur capital inflows.

Yuan closes at record high of 6.1192 per dollar

China’s yuan closed at a record high of 6.1192 against the dollar on Wednesday, its highest since the foreign currency market was created in 1994, stirring speculation among traders as to whether the central bank is ready to allow further appreciation despite weak exports.The currency also set a record open at 6.1206 per dollar on Wednesday morning. It has gained nearly 2 per cent so far this year, bucking a weak trend in emerging market currencies.

The central bank set its official midpoint at 6.1726 on Wednesday, only 0.04 per cent stronger than Tuesday’s 6.1753, but the spot yuan took advantage of the fixing to move into new territory.

 US dollar slips vs yen but Fed tapering likely to support it

The dollar fell to a one and a half month low against the yen on Wednesday on expectations Japanese investors would convert their overseas earnings back into yen before a major local holiday. Sterling fell before the release of the quarterly inflation report where Bank of England Governor Mark Carney is expected to offer forward guidance on how long policy will stay easy. It was down 0.3 per cent at $1.5306.

TODAY’S FOREX REPORT 7/aug/2013

MARKET HEADLINES

Rupee hits all-time low of 61.80; recovers sharply after RBI seen intervening

The rupee recovered sharply on Tuesday from a record low hit earlier after the Indian central bank was seen selling dollars via state-run banks starting at around 61.45 levels, according to three traders.The partially convertible rupee was at the day’s high of 61.03/05 per dollar at 16:45 India time (1115 GMT), recovering sharply from the record low of 61.80 hit earlier in the session. The unit had closed at 60.88/89 on Monday.Unless Prime Minister Manmohan Singh’s coalition government announces substantial reforms, or resorts to raising debt abroad to attract rapid capital inflows, the rupee is likely to fall further, traders said.

 Swiss franc falls vs dollar on US services growth

The Swiss franc drifted lower against the dollar on Tuesday as the greenback gained some ground on data showing the pace of growth in the US services sector accelerated in July with new orders at their highest in five months.The Institute for Supply Management (ISM) said its services index rose to 56 from 52.2 in June, easily topping economists’ expectations for 53 and supporting views the Federal Reserve could trim its bond-buying programme earlier than expected. The franc was softer against the euro, trading above the 1.23 per euro mark ahead of German data on industrial orders, due at 1000 GMT, and Swiss National Bank data on foreign currency reserves to be released on Wednesday.Swiss data due later in the week are expected to show inflation remains weak, with consumer prices for July seen flat year on year and 0.4 per cent lower on the month.

The franc fell 0.2 per cent against the dollar compared to the New York close to trade at 0.9294 francs per dollar by 0653 GMT. The franc fell 0.2 per cent against the euro to 1.2316 per euro.

TODAY’S FOREX REPORT 5/AUG/2013

MARKET HEADLINES

Hapless Rupee sinks to new low: Closes at 61.10 as policymakers’ rescue measures fail to yield results

The Indian rupee slumped to its lowest closing amid investor jitters that measures to cure the currency’s ills are hardly working. Fears that the economic slowdown may worsen in the wake of rising interest rates and portfolio outflows due to rising yields in the US are aggravating the currency’s fall.Despite the Reserve Bank of India curbing speculation by international investors, the currency continued its decline as better returns in the US – S&P 500 is at an all-time high and yields at 2.7% on treasuries yield more than 8.3% on Indian bonds, adjusted for hedging currency risk.The rupee fell 1.1% to 61.10 per dollar, worse than its previous closing low of 60.44. Its intra-day low was at 61.21 on July 8.

Sterling rise, gilts fall on strong UK construction
PMI Sterling rose on Friday after a survey revealed a strong rise in UK construction activity and added to signs the UK economy began the third quarter on a strong footing.Data showed UK construction activity rose far more than expected in July to hit its highest level in over three years.This followed data showing UK house prices grew at their fastest rate in nearly three years and a strong UK manufacturing activity survey on Thursday.But analysts said concerns that the Bank of England, under new governor Mark Carney, could point to lower interest rates for a prolonged period when it presents its Inflation Report next Wednesday would cap sterling’s gains.

US jobs data due at 1230 GMT could also push the pound back down against the dollar. If strong they would suggest the US Federal Reserve will have room to begin scaling back monetary easing soon. Sterling was up 0.2 per cent on the day at $1.5152, recovering from an earlier two-week low of $1.5104. Renewed falls, however, could see it drop towards the July 15 low of $1.5028.

Currency Tips ~ Forex Market Updates Today

 Hapless Rupee sinks to new low: Closes at 61.10 as policymakers’ rescue measures fail to yield results
The Indian rupee slumped to its lowest closing amid investor jitters that measures to cure the currency’s ills are hardly working. Fears that the economic slowdown may worsen in the wake of rising interest rates and portfolio outflows due to rising yields in the US are aggravating the currency’s fall.Despite the Reserve Bank of India curbing speculation by international investors, the currency continued its decline as better returns in the US – S&P 500 is at an all-time high and yields at 2.7% on treasuries yield more than 8.3% on Indian bonds, adjusted for hedging currency risk.The rupee fell 1.1% to 61.10 per dollar, worse than its previous closing low of 60.44. Its intra-day
low was at 61.21 on July 8.

 Sterling rise, gilts fall on strong UK construction PMI
Sterling rose on Friday after a survey revealed a strong rise in UK construction activity and added to signs the UK economy began the third quarter on a strong footing.Data showed UK construction activity rose far more than expected in July to hit its highest level in over three years.This followed data showing UK house prices grew at their fastest rate in nearly three years and a strong UK manufacturing activity survey on Thursday.But analysts said concerns that the Bank of England, under new governor Mark Carney, could point to lower interest rates for a prolonged period when it presents its Inflation Report next Wednesday would cap sterling’s gains.
US jobs data due at 1230 GMT could also push the pound back down against the dollar. If strong they would suggest the US Federal Reserve will have room to begin scaling back monetary easing soon.
Sterling was up 0.2 per cent on the day at $1.5152, recovering from an earlier two-week low of $1.5104. Renewed falls, however, could see it drop towards the July 15 low of $1.5028.

FOREX REPORT UPDATES

MARKET HEADLINES

Hapless Rupee sinks to new low: Closes at 61.10 as policymakers’ rescue measures fail to yield results

The Indian rupee slumped to its lowest closing amid investor jitters that measures to cure the currency’s ills are hardly working. Fears that the economic slowdown may worsen in the wake of rising interest rates and portfolio outflows due to rising yields in the US are aggravating the currency’s fall.Despite the Reserve Bank of India curbing speculation by international investors, the currency continued its decline as better returns in the US – S&P 500 is at an all-time high and yields at 2.7% on treasuries yield more than 8.3% on Indian bonds, adjusted for hedging currency risk.The rupee fell 1.1% to 61.10 per dollar, worse than its previous closing low of 60.44. Its intra-day low was at 61.21 on July 8.

Sterling rise, gilts fall on strong UK construction PMI

Sterling rose on Friday after a survey revealed a strong rise in UK construction activity and added to signs the UK economy began the third quarter on a strong footing.Data showed UK construction activity rose far more than expected in July to hit its highest level in over three years.This followed data showing UK house prices grew at their fastest rate in nearly three years and a strong UK manufacturing activity survey on Thursday.But analysts said concerns that the Bank of England, under new governor Mark Carney, could point to lower interest rates for a prolonged period when it presents its Inflation Report next Wednesday would cap sterling’s gains.

US jobs data due at 1230 GMT could also push the pound back down against the dollar. If strong they would suggest the US Federal Reserve will have room to begin scaling back monetary easing soon.

Sterling was up 0.2 per cent on the day at $1.5152, recovering from an earlier two-week low of $1.5104. Renewed falls, however, could see it drop towards the July 15 low of $1.5028.

TODAY’S FOREX REPORT 2/july/2013

MARKET HEADLINES

Rupee off lows as RBI tightens hedging rules for foreign investors

Rupee fell on Thursday, but staged a strong rebound from intra-day lows as the Reserve Bank of India continued to bolster its currency defence by tightening rules for curbing speculation by foreign investors, and on rumoured central bank intervention.The RBI stipulated on Thursday that foreign institutional investors would require a mandate from participatory note holders to hedge on their behalf.The move pulled rupee back to the day’s high of 60.25 to a dollar, briefly turning positive on the day, as the central bank notification led to large dollar selling by foreign banks.

The partially convertible rupee closed at 60.43/44 per dollar compared with 60.40/41 on Wednesday. It fell to 60.90 early in session, within striking distance of its life low of 61.21 seen on July 8.

Sterling falls versus dollar on BoE caution

Sterling fell against the dollar on Thursday before a Bank of England policy announcement when it may reaffirm a commitment to low interest rates for a prolonged period.The pound recovered from an earlier 4-1/2 month low against the euro, however, ahead of a UK manufacturing activity survey due at 0828 GMT that may give the currency a brief boost if it comes in strong.

However, traders were wary that the BoE, under new governor Mark Carney, is set to lay out plans for giving “forward guidance” on monetary policy which could weigh on sterling.

The purchasing managers’ index for manufacturing is expected to rise
to 52.8 in July from 52.5 in June.Sterling fell 0.3 per cent against the dollar to $1.5159, nearing a two-week low of $1.5125 hit on Wednesday.

TODAY’S FOREX REPORT 1/aug/2013

MARKET HEADLINES

Rupee kept off record lows by RBI intervention fears

The rupee continues to be kept off record lows by the prospect of central bank intervention after state-run banks were spotted selling dollars on its behalf earlier in the day. The pair at 61.07/08, off 61.17 intraday high, 60.47/48 last close.The pair still remains close to record high of 61.21 hit on July 8. US dollar demand from foreign banks and month-end oil demand also pushing up the pair.

The rupee bears bolstered by RBI comments that cash tightening steps may be temporary

 

Sterling down vs dollar as BoE meeting looms

Sterling fell to a 4-1/2 month low against the euro on Wednesday on steady demand for the single currency from a sovereign buyer for month-end requirements, traders said.While the buying is routine, many traders were caught short by the sustained nature of the order and were left scrambling to buy euros to cover positions, traders added. As a result, sterling remained broadly under pressure before a Bank of England meeting on monetary policy. The BoE’s monetary policy committee may reaffirm its commitment to lower interest rates following its meeting on Wednesday and Thursday.

The euro rose to 87.27 pence, its highest level since mid-March, extending gains into a seventh session.

 Euro rises to 4-1/2 month high vs sterling on month-end demand

The euro extended gains to hit a 4-1/2 month high against the British pound on Wednesday, mainly due to month-end demand from a euro zone sovereign buyer, traders said.

The euro rose to 87.20 pence, up 0.15 percent on the day and extending its winning streak into a seventh straight session. Sterling was also down 0.2 percent against the dollar at $1.5209.

TODAY’S FOREX REPORT 31/july/2013

MARKET HEADLINES

Rupee falls below 60/dollar after RBI policy

The rupee on Tuesday weakened below the psychological level of 60 per dollar in the absence of any concrete action by the RBI. The rupee was at 60.09/10 after falling to 60.21. It closed at 59.4150/4250 on Monday.Rupee weakened after RBI shied away from stronger measures to boost currency. The central bank said it will roll back its recent cash tightening steps in calibrated manner if the currency stabilises. RBI’s comments raised questions about it’s resolve in sustaining cash-draining measures that have sent bond yields surging and threatened to raise borrowing costs across economy.The RBI in its first quarter review of monetary policy kept both the repo rate and Cash Reserve Ratio ( CRR) unchanged. Maintaining a cautious stance, RBI also cut the GDP growth forecast for FY14 to 5.5% from 5.7% earlier.

 
Sterling hits 3-year high vs Aussie, subdued against US dollar, euro

Sterling hit a three-year high against the struggling Australian dollar on Tuesday and was flat against the US dollar and the euro before the Bank of England and other major central banks meet this week.The BoE’s monetary policy committee is likely to reaffirm its commitment to lower interest rates for a prolonged period following its meeting on Wednesday and Thursday.

The pound rose 1.6 per cent on the day against the Australian dollar at A$1.6922 after Reserve Bank of Australia chief Glenn Stevens left the door open for another rate cut and said he would not be surprised if the currency fell more.

Sterling earlier hit A$1.6940 -its highest level since Sept. 2010

TODAY’S FOREX REPORT 30/7/2013

MARKET HEADLINES

Rupee snaps 3 days of gain ahead of RBI rate decision
The rupee fell for the first session in four on Monday on the back of dollar demand from oil importers and caution ahead of a central bank policy review that may give cues about its stance after recent measures to defend the currency.The Reserve Bank of India is widely expected to keep rates and the cash reserve steady when it unveils monetary policy on Tuesday. Forex dealers will keenly watch, instead, if the central bank indicates more measures to stabilise the currency or gives a timeframe for its current action.After trading hours, the central bank Msaid in a report that the priority for monetary policy was to restore stability in the forex market.The rupee has strengthened to as much as 58.69 since the RBI first unveiled its measures on July 15, but has never closed below 59 since then, and still remains within sight of a record low of 61.21 hit earlier this month.The partially convertible rupee closed at 59.4150/4250 per dollar compared with 59.04/05 on Friday.

Dollar slumps, hits 1-month low against the yen
The dollar fell to a one-month low against the yen on Monday, and a five-week trough against a basket of currencies on expectations the Federal Reserve intends to keep interest rates low for some time.The dollar’s losses underpinned the euro, which was holding near fiveweek highs as spreads between US 10-year Treasury yields and German Bunds narrowed.The spread widened to its highest since late 2006 earlier in July helping the dollar. But with doubts growing over when the Fed will start withdrawing stimulus, the gap has narrowed. The Fed starts a two-day meeting on Tuesday.The dollar index, which shed 1.2 per cent last week for its third straight weekly loss, was trading flat at 81.63 while dollar/yen was down 0.35 per cent at 97.91, having fallen to 97.635 yen – its lowest since late June. The euro was flat at $1.3275, not far from a five-week high of $1.32975 struck on Friday.