Press review - page 169

Sergey Golubev
Moderator
113440
Sergey Golubev  
USD/CHF Fundamentals - weekly outlook: June 2 - 6

The dollar slid lower against the Swiss franc on Friday as disappointing U.S. economic reports on personal spending and consumer sentiment weighed.

USD/CHF touched lows of 0.8934, before easing back to 0.8952 at the close of trade, down 0.30%.

The pair was likely to find support at 0.8800 and resistance at 0.8989, last Wednesday’s high and a more than three-month high.

The dollar eased after data showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

The dollar had strengthened broadly against the other major currencies earlier in the week as the euro tumbled to more than three-month lows amid mounting expectations for monetary easing by the European Central Bank.

Data on Friday showing that the annual rate of inflation in Italy and Spain slowed in May underlined expectations that the ECB will take steps to tackle low consumer price growth, which its threatening the fragile recovery in the euro zone.

The US Dollar Index, which tracks the dollar against six other major currencies, traded softer on Friday and was last down 0.11% at 80.44. Earlier in the week, the index rose to highs of 80.63, the most since early April.

In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market, while Tuesday’s euro zone inflation report will also be in focus, ahead of the ECB policy meeting and press conference on Thursday.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 2
  • Switzerland is to publish its SVME index.
  • Later Monday, the Institute of Supply Management is to publish a report on U.S. manufacturing activity.
Tuesday, June 3
  • The U.S. is to produce data on factory orders.
Wednesday, June 4
  • The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to publish data on the trade balance.
  • The ISM is to publish a report on U.S. service sector activity.
Thursday, June 5
  • The ECB is to announce its benchmark interest rate. The announcement is to be followed by a press conference with President Mario Draghi.
  • The U.S. is to publish the weekly report on initial jobless claims.
Friday, June 6
  • The Swiss National Bank is to publish data on its foreign currency reserves. This data is closely scrutinized for indications of the size of the bank’s operations in currency markets.Switzerland is also to release data on consumer price inflation.
  • The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
Sergey Golubev
Moderator
113440
Sergey Golubev  
USD/CAD Fundamentals - weekly outlook: June 2 - 6

The Canadian dollar slid to session lows against the U.S. dollar on Friday after official data showed that the rate of economic growth in Canada slowed sharply in the first three months of the year.

USD/CAD touched session highs of 1.0868 before pulling back to 1.0844 at the close.

Statistics Canada reported that gross domestic product expanded 0.3% in the first quarter, slowing from growth of 0.7% in the preceding three months.

On a year-over-year basis, the Canadian economy grew 1.2%, well below forecasts of 1.8% after growing at an annual rate of 2.7% in the previous quarter.

The data dampened expectations that the Bank of Canada could adopt a slightly less dovish tone at its upcoming rate review on Wednesday. Expectations had been boosted after data earlier this month showed that the annual rate of inflation in Canada rose to the central bank’s target of 2% for the first time in in two years in April.

In the U.S., data on Friday showed that consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

The dollar index, which tracks the dollar against six other major currencies, traded softer on Friday and was last down 0.11% at 80.44. Earlier in the week, the index rose to highs of 80.63, the most since early April.

In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market, while Wednesday’s rate statement by the BoC will also be in focus.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 2
  • The Institute of Supply Management is to publish a report on U.S. manufacturing activity.
Tuesday, June 3
  • The U.S. is to produce data on factory orders.
Wednesday, June 4
  • The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. Also Wednesday, both the U.S. and Canada are to publish data on the trade balance.
  • Later in the day, the Bank of Canada is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
  • The ISM is to publish a report on U.S. service sector activity.
Thursday, June 5
  • Canada is to release data on building permits and the Ivey PMI.
  • The U.S. is to publish the weekly report on initial jobless claims.
Friday, June 6
  • Canada is to publish data on the change in the number of people employed and the unemployment rate.
  • The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
Sergey Golubev
Moderator
113440
Sergey Golubev  
AUD/USD Fundamentals - weekly outlook: June 2 - 6

The Australian dollar ended Friday’s session near a two-week high against its U.S. counterpart, following the release of disappointing U.S. data on personal spending and consumer confidence.

AUD/USD hit 0.9328 on Friday, the pair’s highest since May 20, before subsequently consolidating at 0.9310 by close of trade on Friday, 0.02% higher for the day and up 0.84% for the week.

The pair is likely to find support at 0.9209, the low from May 29 and resistance at 0.9334, the high from May 20.

The greenback slumped after data showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

Meanwhile, in Australia, data released earlier in the week showed that private capital expenditure fell 4.2% in the first quarter, compared to expectations for a 1.4% decline.

Data from the Commodities Futures Trading Commission released Friday showed that speculators decreased their bullish bets on the Australian dollar in the week ending May 27.

Net longs totaled 15,848 contracts, compared to net longs of 19,462 in the preceding week.

In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market.

Tuesday’s rate decision by the Reserve Bank of Australia will also be in focus, as well as highly-anticipated Australian first quarter growth data due Wednesday.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 2
  • Australia is to release data on building approvals and company operating profits.
  • Later Monday, the Institute of Supply Management is to publish a report on U.S. manufacturing activity.
Tuesday, June 3
  • Australia is to release data on the current account and retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
  • The Reserve Bank of Australia is to announce its benchmark interest rate and publish its rate statement, which outlines economic conditions and the factors affecting the monetary policy decision.
  • Meanwhile, the U.S. is to produce data on factory orders.
Wednesday, June 4
  • Australia is to publish the monthly report on gross domestic product, the broadest indicator of economic activity and the leading indicator of economic growth.
  • The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. Also Wednesday, the U.S. is to publish data on the trade balance.
Thursday, June 5
  • Australia is to publish data on the trade balance, the difference in value between imports and exports.
  • Meanwhile, the U.S. is to publish the weekly report on initial jobless claims.
Friday, June 6
  • The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
Sergey Golubev
Moderator
113440
Sergey Golubev  
NZD/USD Fundamentals - weekly outlook: June 2 - 6

The New Zealand dollar ended Friday’s session close to an 11-week low against its U.S. counterpart, as investors bet on strong growth in the U.S. during the second quarter, despite the release of disappointing data on personal spending and consumer sentiment.

NZD/USD hit 0.8450 on Thursday, the pair’s lowest since March 12, before subsequently consolidating at 0.8500 by close of trade on Friday, up 0.17% for the day but still 0.61% lower for the week.

The pair is likely to find support at 0.8450, the low from May 29 and resistance at 0.8566, the high from May 28.

The greenback slumped after data showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

Meanwhile, traders shrugged off data that showed the U.S. economy contracted in the first quarter and bet on improvement in the second quarter.

Market analysts expects second quarter growth to snap back with a 3.8% gain, after data on Thursday showed that the economy shrank at a seasonally adjusted annual rate of 1% in the first quarter.

Elsewhere, in New Zealand, data released earlier in the week showed that the ANZ business confidence index fell to 53.5 this month, from a reading of 64.8 in April.

Data from the Commodities Futures Trading Commission released Friday showed that speculators modestly increased their bullish bets on the New Zealand dollar in the week ending May 27.

Net longs totaled 17,994 contracts as of last week, compared to net longs of 17,594 contracts in the previous week.

In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 2
  • The Institute of Supply Management is to publish a report on U.S. manufacturing activity.
Tuesday, June 3
  • The U.S. is to produce data on factory orders.
Wednesday, June 4
  • The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to publish data on the trade balance.
  • The ISM is to publish a report on U.S. service sector activity.
Thursday, June 5
  • The U.S. is to publish the weekly report on initial jobless claims.
Friday, June 6
  • The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
Sergey Golubev
Moderator
113440
Sergey Golubev  
GBP/USD Fundamentals - weekly outlook: June 2 – 6

The dollar was lower against the pound on Friday, following the release of some disappointing U.S. economic data, but still notched up a weekly gain against sterling.

GBP/USD rose 0.22% to 1.6752 late Friday from lows of 1.6691 in the previous session, but still lost 0.72% for the week.

Cable was likely to find support at 1.6691, Thursday’s low and a six-week low and resistance at 1.6815.

The dollar eased on Friday after data showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

The U.S. dollar index, which tracks the dollar against six other major currencies, traded softer on Friday and was last down 0.11% at 80.44. Earlier in the week, the index rose to highs of 80.63, the most since early April.

The pound came under pressure earlier in the week after reports indicated that the U.K. U.K. housing market is starting to slow, prompting investors to trim back expectations for a rate hike by the Bank of England later this year.

Sterling remained weaker even after BoE monetary policy committee member Martin Weale said Wednesday that a rise in the cost of borrowing should happen "sooner rather than later".

He said the bank should not wait too long to start raising interest rates as a delay would eventually mean sharper and more painful tightening of policy.

In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market, while U.K. data on manufacturing, services and construction sector growth will also be in focus.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 2
  • The U.K. is to release what will be a closely watched manufacturing report, as well as data on net lending and mortgage approvals.
  • Later Monday, the Institute of Supply Management is to publish a report on U.S. manufacturing activity.
Tuesday, June 3
  • The U.K. is to publish data on construction sector activity, as well as private sector data on house price inflation.
  • The U.S. is to produce data on factory orders.
Wednesday, June 4
  • The U.K. is to produce data on service sector activity.
  • The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to publish data on the trade balance.
  • Later Wednesday, the ISM is to publish a report on U.S. service sector activity.
Thursday, June 5
  • The BoE is to announce its benchmark interest rate.
  • The U.S. is to publish the weekly report on initial jobless claims.
Friday, June 6
  • The U.K. is to produce data on the trade balance and a report on consumer inflation expectations.
  • The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
Sergey Golubev
Moderator
113440
Sergey Golubev  
EUR/USD Fundamentals - weekly outlook: June 2 - 6

The euro was higher against the dollar on Friday, as soft economic data weighed on the greenback, but the shared currency’s gains were held in check amid heightened expectations for monetary easing by the European Central Bank.

EUR/USD rose to 1.3633 late Friday from a three month trough of 1.3585 on Thursday, trimming the week’s losses to 0.13%. For the month, the euro dropped 1.69% against the dollar.

The pair is likely to find support at 1.3585, Thursday’s low and resistance at 1.3675.

Data on Friday showing that the annual rate of inflation in Italy and Spain slowed in May underlined expectations that the ECB will take steps to tackle low consumer price growth, which is threatening the fragile recovery in the euro zone.

The annual rate of inflation in Spain slowed to 0.2% in May from 0.3% in April, official data showed, while the annual rate of inflation in Italy slowed to 0.4% last month from 0.5%.

The dollar eased on Friday after data showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

The U.S. dollar index, which tracks the dollar against six other major currencies, traded softer on Friday and was last down 0.11% at 80.44. Earlier in the week, the index rose to highs of 80.63, the most since early April.

The euro also pushed higher against the yen on Friday, with EUR/JPY rising 0.22% to 138.76, up from Thursday’s four month lows of 137.95, but lost 0.27% for the week. The euro tumbled 2.10% against the yen in May.

In the week ahead, investors will be looking to Friday’s U.S. nonfarm payrolls report for May for further indications on the strength of the labor market, while Tuesday’s euro zone inflation report will also be in focus, ahead of the ECB policy meeting and press conference on Thursday.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 2
  • In the euro zone, Germany is to release preliminary data on consumer price inflation, while Spain and Italy are to produce data on manufacturing activity.
  • Later Monday, the Institute of Supply Management is to publish a report on U.S. manufacturing activity.
Tuesday, June 3
  • The euro zone is to release preliminary data on consumer inflation as well as a report on the unemployment rate. Spain is also to publish data on the change in the number of people employed.
  • The U.S. is to produce data on factory orders.
Wednesday, June 4
  • In the euro zone, Spain and Italy are to release data on service sector activity.
  • The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days. The U.S. is also to release data on the trade balance.
  • The ISM is to publish a report on U.S. service sector activity.
Thursday, June 5
  • The euro zone is to release data on retail sales, while Germany is to produce data on factory orders.
  • Later in the day, the ECB is to announce its benchmark interest rate. The announcement is to be followed by a press conference with President Mario Draghi.
  • The U.S. is to publish the weekly report on initial jobless claims.
Friday, June 6
  • In the euro zone, Germany is to release data on the trade balance.
  • The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate
Sergey Golubev
Moderator
113440
Sergey Golubev  

Week Ahead: Apple Developers, May Jobs, Euro Interest Rates


These are just three of the big questions investors will get answers to this coming week, which also brings other economic news and indicators including updates on US manufacturing, factory orders, vehicle sales, service industries and also the Federal Reserve’s “Beige Book” outlining economic conditions in the Fed system’s 12 regions.

Monday sees the start of Apple’s much anticipated Worldwide Developers Conference in San Francisco, with Apple watchers agog for news on anticipated software updates and any morsels of information about the new Healthbook app, any plans for an Apple “smart home,” as well as further news on its acquisition of Beats Electronics and Beats Music.

Apple aficionados are not expecting any blockbuster announcements like a new Mac, MacBook, Apple TV, iPhone, iPad or even an iWatch — but this is a company that can surprise.

Apple’s stock has soared more than 25 per cent since late January, giving it a monster stock market value of roughly $545 billion — so any information that affects its share price is massive news on Wall Street.

Apple’s shares are trading around $633 — so high that the stock will be split 7-for-1 starting on Friday.

Monday also brings updates on May’s US manufacturing activity from the Institute for Supply Management, construction spending, a planned US Federal debt sale, and a speech by Chicago Fed president Charles Evans.

Tuesday sees updates on US vehicle sales for May, factory orders for April, earnings from Dollar General , and a speech by Kansas City Fed president Esther George.

Wednesday brings news on May’s activity in US service industries, the biggest part of the economy, the Federal Reserve’s “Beige Book” business survey from the Fed’s 12 regional banks, and ADP’s private sector employment report ahead of the big jobs news on Friday.

Thursday will see decisions on interest rates by the European Central Bank and the Bank of England. Some economists expect the ECB to cut its deposit rate even further and even lay out a framework for asset purchases in the future.

Friday brings a speech by Fed governor Jerome Powell and the big economic news of the week with the US jobs report for May.

Analysts are expecting more than 200,000 jobs to have been created for the fourth month in a row — rough estimates are for about 225,000 jobs, down from April but good enough to keep markets happy.

Wall Street Information and Wall Street News
Wall Street Information and Wall Street News
  • www.forbes.com
Forbes is a leading source for reliable news and updated analysis on Wall Street. Read the breaking Wall Street coverage and top headlines on Forbes.com
Sergey Golubev
Moderator
113440
Sergey Golubev  

2014-06-02 01:30 GMT (or 03:30 MQ MT5 time) | [AUD - Building Approvals]

if actual > forecast = good for currency (for EUR in our case)

AUD - Building Approvals = Change in the number of new building approvals issued. It's an excellent gauge of future construction activity because obtaining government approval is among the first steps in constructing a new building. Construction is important because it produces a wide-reaching ripple effect - for example, jobs are created for the construction workers, subcontractors and inspectors are hired, and various services are purchased by the builder.

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Australia Building Approvals Tumble 5.6% In April

The total number of building approvals issued in Australia in April was down a seasonally adjusted 5.6 percent on month, the Australian Bureau of Statistics said on Monday, standing at 14,931.

That was well shy of forecasts for an increase of 2.0 percent following the 3.5 percent contraction in March.

On a yearly basis, building approvals were up 1.1 percent - far short of expectations for 12.3 percent and down from 20.0 percent in the previous month.

The number of approvals for private sector houses eased 0.3 percent on month but gained 16.5 percent on year to 9.254. Approvals for private sector dwellings excluding houses plunged 14.0 percent on month and 16.6 percent on year to 5,435.

Sergey Golubev
Moderator
113440
Sergey Golubev  

2014-06-02 07:00 GMT (or 09:00 MQ MT5 time) | [USD - Fed's Evans Speech]

if actual > forecast = good for currency (for USD in our case)

USD - Fed's Evans Speech = Charles L. Evans is the ninth president and chief executive officer of the Federal Reserve Bank of Chicago. In that capacity, he serves on the Federal Open Market Committee (FOMC), the Federal Reserve System's monetary policy-making body.

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Federal Reserve Bank of Chicago President Charles Evans provided his perspective on monetary policy at a macroeconomics workshop in Turkey.

Charles Evans - Federal Reserve Bank of Chicago
Charles Evans - Federal Reserve Bank of Chicago
  • www.chicagofed.org
Charles L. Evans is the ninth president and chief executive officer of the Federal Reserve Bank of Chicago. In that capacity, he serves on the Federal Open Market Committee (FOMC), the Federal Reserve System's monetary policymaking body. The Federal Reserve Bank of Chicago is one of 12 regional Reserve Banks across the country. These 12 banks...
Sergey Golubev
Moderator
113440
Sergey Golubev  

2014-06-02 14:00 GMT (or 16:00 MQ MT5 time) | [USD - ISM Manufacturing PMI]

if actual > forecast = good for currency (for EUR in our case)

USD - ISM Manufacturing PMI = Level of a diffusion index based on surveyed purchasing managers in the manufacturing industry. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.

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