The euro fell from an almost three- month high versus the dollar as Germany ruled out allowing the European Financial Stability Facility to fund bond buybacks, reviving concern the region’s sovereign-debt crisis may worsen.
Current price: Y81.66
Comments: Dollar tries to recover, but slowly, Support is at session lows on Y81.30. Below losses may widen to Y81.00-Y80.90 (lower band of the channel from Jan 03/Dec 31 lows). Resistance is at Y81.70/90 (session highs). Next target is on Y82.30 (Feb 01 highs).
Current price: $1.6188
Support 1: $1.6170
Support 3: $1.6020
Support 2: $1.3670
Support 3: $1.3570
Comments: There is no changes in techs. Resistance is around session highs on $1.3860. Above there is a chance to rise to $1.3895/00 (a top of upward channel). break above opens the way to Nov 09 high at $1.3980. Support remains at $1.3760 (Jan 27 high, ex-support), below - at $1.3670 (Jan 25 and 31 lows).
GBP/USD has lifted to $1.6200 area in recent dealings, bouncing off recent lows at $1.6175. Some bids in place at $1.6170/75, cushioning the recent dip.
U.S. stocks were poised for a slightly weak open Wednesday, as investors sideline worries about Egypt, and focus on corporate earnings and the labor market.
U.S. stocks started February with a bang Tuesday. The Dow and S&P 500 closed above key psychological levels for the first time in more than two years, with the Dow finishing above 12,000.
Economy: Before the market open, a report from payroll services firm ADP reported job growth for January that was much stronger than expected (+187,000).
Companies: Time Warner (TWX, Fortune 500) posted fourth-quarter earnings Wednesday that beat Wall Street expectations, driven in part by a recovering advertising market. Shares of Time Warner, the parent of CNNMoney and Fortune, edged up about more than 3% in premarket trading.
Shares of video game company Electronic Arts (ERTS, Fortune 500) jumped nearly 10% in premarket trading, a day after they reported a 75% jump in quarterly earnings and announced a stock buyback.
Shares of Southwest Airline (LUV, Fortune 500) also slumped more than 15% in premarket trading.
Toyota (TM) shares gained more than 2% in pre-market trading, after reporting almost 24% rise in January sales Tuesday. The Japanese automaker also said late Tuesday that it is offering "voluntary exit packages" to certain employees, as part of a restructuring plan.
Shares of Borders Group (BGP) plunged more than 35% Tuesday before the market close, and fell 10% in pre-market trading Wednesday on a report claiming the company will file for bankruptcy.
After the closing bell, Visa (V, Fortune 500) is expected to report earnings per share of $1.21 on revenue of $2.23 billion.
EUR/USD continues to drift lower amid light flows, traded just below $1.3780 with talk now inserting a few stops below $1.3770, in the zone of bids noted earlier.
AUD/USD trades lower through bids in the $1.0080/00 zone. Aussie now trading $1.0087/89 after a day's low print of $1.0084.
EUR/USD showed slight lift after ADP data, edges up to $1.3810 area, the pair finding an earlier base at $1.3788 in the wake of the Irish downgrade by S&P. Area down to $1.3750 said to hold demand interest. Offers eyed at $1.3880.
The Employment Change released by the Automatic Data Processing, Inc is a measure of the change in the number of employed people in the US Generally speaking, a rise in this indicator has positive implications for consumer spending which stimulates economic growth. Generally speaking, a high reading is seen as positive, or bullish for the USD, while a low reading is seen as negative, or bearish.
Dipped back through $1.6200 after the Construction PMI data release but found further demand in the low $1.6190's with high now extended to $1.6222, before euro-sterling demand resurfaced sending cable back to $1.6208.
he dollar declined against all its most-traded counterparts as a report showed U.S. manufacturing rose at the fastest pace in almost seven years, encouraging demand for higher-yielding assets.
The Institute for Supply Management’s U.S. manufacturing index unexpectedly increased to 60.8 in January from 58.5 in the previous month, the Tempe, Arizona, group reported. That indicates the fastest growth since May 2004.
The euro rose above $1.38 as the purchasing managers’ index for Europe increased.
A gauge of manufacturing in the euro region rose to 57.3 in January from 57.1 in December, London-based Markit Economics said today. That’s the highest since April and above the initially reported 56.9.
Egyptian protesters began gathering in Cairo for a march as newly appointed Vice President Omar Suleiman said late yesterday that President Hosni Mubarak instructed him to start a dialogue with the demonstrators. The military promised not to fire on marchers and said that it recognized “the legitimacy” of the people’s demands.
“We’re not looking at any major fallout globally from Egypt at the moment,” said Brian Dolan, chief strategist at FOREX.com.
The pound advanced as much as 0.9%.
The Bank of England will raise its 0.5% main rate three times this year to prevent a surge in consumer prices from becoming entrenched, according to the National Institute for Economic and Social Research. The group forecasts that the rate will rise to 1.25% by year-end, compared with an October forecast of 0.75%.
“The market is going with the idea that the chances of a Bank of England rate hike are increasing,” Forex.com’s Dolan said. “The move is not done yet. The pound is not giving back very much.”
Australia’s dollar rose to a level stronger than parity with the greenback for the first time in three days as the Reserve Bank of Australia said the global economy looks strong and there are signs of rising private investment in the nation amid higher commodity prices.
The central bank left its cash target at 4.75% and signaled inflation was likely to remain within its 2% to 3% target range in the year ahead.
Nikkei +36.58 (+0.36%) 10274.50
DAX +106.79 (+1.51%) 7184.27
CAC +67.12 (+1.68%) 4072.62
FTSE-100 +94.88 (+1.62%) 5957.82
Dow +148.23 (+1.25%) 12040.16
Nasdaq +51.11 (+1.89%) 2751.19
S&P500 +21.47 (+1.67%) 1307.59
Oil -1.60 $90.60
10-Years +0.06 3.44%
Japanese stock futures gained after U.S. consumer spending topped estimates and the earnings outlook improved, overcoming concerns about unrest in Egypt. Australian shares were little changed.
American depositary receipts of Hitachi Ltd., a maker of products from home appliances to nuclear reactors, jumped 1.5 percent from the closing share price in Tokyo yesterday after the Nikkei newspaper said the company may report a record third- quarter profit.
Those of Honda Motor Co., Japan’s third-largest carmaker by sales, jumped 2.8 percent after increasing its earnings forecast.
Shares of BHP Billiton Ltd., the world’s No. 1 mining company and Australia’s biggest oil producer, gained 0.6 percent in Sydney after prices of metals and oil advanced.
Shanghai stocks hit their longest winning streak for four months but the Mumbai market sank to its lowest level since August as investors gave varying responses to inflationary fears for Asia’s two powerhouse growth economies.
A reading of 52.9 for a purchasing managers’ index released by China’s logistics federation exceeded the 50 level dividing expansion and contraction. A PMI from HSBC Holdings Plc and Markit Economics rose to 54.5 from 54.4.
European stocks climbed by the most in two months after reports showed manufacturing expanded in the U.S. and China, boosting confidence in the strength of the global economic recovery.
BHP Billiton Ltd. led mining companies higher as copper surged to a record.
Rio Tinto Group, the third-largest mining company, gained 1.5 percent to 4,344 pence as copper rose to records in New York and London while aluminum and nickel climbed to two-year highs. Kazakhmys Plc, Kazakhstan’s biggest copper producer, rose 4.8 percent to 1,578 pence.
National Bank of Greece jumped 7.7 percent to 7.60 euros, while EFG Eurobank Ergasias SA rose 11 percent to 4.74 euros. Public Power Corp. SA, Greece’s biggest electricity producer, gained 2.6 percent to 12.26 euros. Credit Suisse upgraded its stance on Greece to “benchmark” from “underweight,” saying “Greek equities look cheap.”
Infineon Technologies AG and ARM Holdings Plc increased after reporting results that exceeded estimates.
In Europe, manufacturing growth was stronger than initially estimated in January, accelerating to the fastest pace in nine months on stronger output in Germany. A gauge of manufacturing in the euro region rose to 57.3 from 57.1 in December, Markit Economics said today. That’s the highest since April and above the initially reported 56.9.
Metro AG, Germany’s largest retailer, climbed 3.3 percent to 53.12 euros as UBS AG upgraded the stock to “buy” from “neutral.”
Continental AG rallied 1.8 percent to 58.52 euros as Deutsche Bank AG lifted its recommendation on Europe’s second- biggest tiremaker to “buy” from “hold.”
U.S. stocks started February with a bang Tuesday, with the Dow and S&P 500 closing above key psychological levels for the first time in more than two years, and the Nasdaq gaining almost 2%.
All but three of the 30 blue-chip components moved higher. A 5.5% jump in shares of Pfizer (PFE) led the advance. The drugmaker posted better-than-expected fourth-quarter earnings. Alcoa (AA) and Bank of America (BAC) were also big Dow gainers.
U.S. stocks posted solid gains Monday and ended January about 2% higher, as positive earnings from Exxon Mobil (XOM) and rising commodity prices overshadowed the political unrest in Egypt. The Dow finished the month 2.7% higher, representing the first January gain since 2007, and the best first-month performance since 1997.
Economy: Construction spending dropped 2.5% in December, following a rise of 0.4% in November. Economists were expecting spending to ease 0.4% during the month.
General Motors (GM) kicked off the year with stronger-than-expected sales in January, driven by increased demand from individual customers. GM stock was slightly higher.
In Washington, the Senate Budget Committee kicked off three days of hearings on the economic outlook, tax reform and challenges to the economic recovery.
Companies: Before the opening bell, United Parcel Service (UPS) logged a 44% jump in profit that beat forecasts and said it expects earnings per share to climb to a record high for 2011. Shares of the package delivery company finished up 4.2%.
Comments: the pair trades above $1.3760 mark, which has become the closest support. Resistance comes at $1.3860, ahead of $1.3895/00.
Spreadbetters Cantor index are calling the FTSE up 20, the DAX up 8, the CAC up 10 and the Eurostoxx 50 up 4.
10:00 EU(16) PPI (December) 0.8% 0.3%
10:00 EU(16) PPI (December) Y/Y 5.4% 4.5%
13:15 USA ADP employment (January) +150K +297K
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