USD/CHF rising again, currenyl holding around Chf0.8344. Rate printed an hourly low at Chf0.8332. Strong resistance remains at channel line from Jun 16 at Chf0.8370. The likelyhood of challenging the Chf0.8370 is low for today.
The stock market has slipped off of its session high. Still, overall gains remain strong as financials (+1.6%), energy (+1.3%), and materials Stocks (+1.7%) continue to provide considerable support.
But there were some laggards, including KB Home (KBH 10.16, -1.76), that is down about 15% in response to disappointing earnings for the latest quarter.
Family Dollar (FDO 53.85, +0.83) also reported earnings results that came short of Wall Street's consensus estimate, but the stock has managed to rally back from its opening gap down.
The euro reached two-week high against the dollar as investors raised bets the European Central Bank will increase interest rates next week after the passage of austerity measures by Greek lawmakers.
The 17-nation currency also gained after Greek Prime Minister George Papandreou won with his 78 billion euro ($112 billion) package of budget cuts and state asset sales.
Canada’s dollar rose as consumer prices in Canada advanced 0.7% in May after a 0.3% gain in the previous month, Statistics Canada said today, making it more likely that the central bank will resume boosting borrowing costs.
The Bank of Canada kept its benchmark overnight lending rate at 1% on May 31, where it has been since September.
The franc slipped versus all of its major peers after the nation’s economic barometer fell in June, adding to signs the franc’s ascent and a faltering euro-region economy may hurt economic growth.
The monthly gauge that aims to predict the economy’s direction about six months ahead dropped to 2.23 from 2.30 in May, the KOF Swiss Economic Institute in Zurich said today.
Stocks set session highs before retreat. Still, overall gains remain solid.
Tech stocks are up 0.3%, but the tech sector has spent most of the day lagging the broad market. Among techs outsiders the Microsoft (MSFT 25.65, -0.15) is under selling pressure.
The tone of trade ahead of the open had been mostly upbeat, but a sell-the-news type of response has followed news that Greece passed a five-year austerity plan. A vote on the implementation of the plan is expected tomorrow.
Financials are showing strength this morning, though. The sector had lagged last session, but it is already up 0.9% today. Diversified finanical services plays like JPMorgan Chase (JPM 40.11, +0.57) and Bank of America (BAC 11.08, +0.26) are early leaders in the space.
Through support levels to trade a session low of Y115.90, demand met here nudging the rate to current levels Y116.10. Initial support at Y115.75/70 a break to open Y115.50/45. Offers remain at Y116.75/80.
U.S. stocks were poised for a third day of gains Wednesday, as Greek parliament votes 155-138 to pass five-year austerity package
U.S. stocks rallied on Tuesday, with the Dow jumping 145 points, as investors cheered a report showing that home prices rose in April -- the first time in eight months.
Economy: The National Association of Realtors will release its May pending home sales data at 14:00 GMT. Economists predict that pending home sales slipped 0.6% in May after April's big 11.6% decline.
Companies: Shares of Bank of America (BAC, Fortune 500) rose 4% in premarket trading, after the bank announced it will pay $8.5 billion to settle mortgage-backed securities claims. Bank of America also said it expects to post a second-quarter loss of up to $9.1 billion.
Family Dollar Store (FDO, Fortune 500) reported quarterly earnings before the market open that missed Wall Street expectations -- sending shares of the company 3% lower.
Dell beats Apple hands down - StockTwits
Shares of General Mills (GIS, Fortune 500) slumped 2%, after the cereal maker posted earnings that were roughly in line with expectations, but said higher ingredient companies hurt its performance. The company's 2012 outlook fell short of expectations.
KB Home (KBH) shares fell 4% after the homebuilder reported a second quarter loss.
Monsanto (MON, Fortune 500)'s earnings widely beat expectations, which the company attributed to strength in its seeds business. Shares of Monsanto rose 4% in premarket trading.
World markets:
The euro advanced amid optimism Greek lawmakers will pass a package of austerity measures aimed at averting the currency region’s first sovereign default.
The 17-nation common currency climbed to the strongest level in a week versus the dollar as investors bet Greek Prime Minister George Papandreou will scrape through approval even as protests raged and workers took to the streets in a general strike. The greenback fell versus its major peers as rising stocks cut demand for the safety of U.S. assets.
“Expectations are that the vote will be passed today, albeit by a relatively close margin, and that, in the near term at least, is providing some upward momentum for the euro and riskier assets in general,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “We doubt that support is likely to last.”
Greek Prime Minister George Papandreou has called on lawmakers to “do their patriotic duty” and pass the bill, as well as a vote tomorrow to authorize implementation of the austerity plan, to ensure the debt-stricken nation can receive further rescue funds.
European confidence in the economic outlook dropped to the lowest in eight months in June. An index of executive and consumer sentiment in the 17-nation euro region fell to 105.1 from 105.5 in May, the European Commission in Brussels said today. That’s the lowest since October. Economists had forecast a decline to 105.
The Swiss franc slipped versus all of its major peers after the nation’s economic barometer fell in June, adding to signs the franc’s ascent and a faltering euro-region economy may hurt economic growth.
The monthly gauge that aims to predict the economy’s direction about six months ahead dropped to 2.23 from 2.30 in May, the KOF Swiss Economic Institute in Zurich said today. The US 24 June week EIA Crude Oil Stocks numbers are due at 1430GMT.
Recovery extended to resistance/offers seen between $1.6045/55, a break of $1.6060 to expose stops, which if triggered to open a move on toward $1.6075/80.
EUR/USD $1.4275, $1.4300, $1.4395, $1.4400
USD/JPY Y80.00, Y80.75, Y81.00
EUR/JPY Y113.50, Y115.00
GBP/USD $1.5900, $1.5950, $1.6000, $1.6100
EUR/GBP; stg0.8800
USD/CHF; Chf0.8340, Chf0.8400
EUR/CHF Chf1.2000, Chf1.2025
AUD/USD $1.0660, $1.0600, $1.0515, $1.0500
AUD/JPY Y83.50
The cross has broken above the Ichimoku cloud top at Y116.50 with bulls now eyeing gains to Y117.10/25, where former is a resistance line from April 11 and latter the 38.2% of Y123.30-Y113.50 move. The daily studies are pointing increasingly higher and imply risk of an upside break to test Y117.90 resistance.
USD/JPY test offers in place at Y81.20. Stops through Y81.30/35. Japanese banks reporting good demand for AUD/USD linked to Toshin Fund demand. Stops in place through Y86.20 and support at Y85.40/30.
EUR/USD $1.4275, $1.4300, $1.4395, $1.4400
USD/JPY Y80.00, Y80.75, Y81.00
EUR/JPY Y113.50, Y115.00
GBP/USD $1.5900, $1.5950, $1.6000, $1.6100
EUR/GBP stg0.8800
USD/CHF Chf0.8340, Chf0.8400
AUD/USD $1.0660, $1.0600, $1.0515, $1.0500
AUD/JPY Y83.50
At 0900GMT, the EMU June business climate indicator data is released.
Resistance 3: Y82.20 (high of May)
Resistance 3: Chf0.8430 (area of Jun 22-23 high)
Resistance 3: $ 1.6070 (area of Jun 23 high and Jun 16 low)
Resistance 3: $ 1.4500 (Jun 14 high)
08:30 UK M4 money supply (May) final - 0.1%
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