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Japan Vehicle Sales Decline In May.
(RTTNews) - Japan's domestic automobile sales dropped 19.4% year-over-year in May to178, 503 units, the Japan Automobile Dealers' Association said Monday. In April, vehicle sales had declined 28.6%.
During the January to May period, domestic vehicle sales dipped 28.8% from the corresponding period in the previous year to 1,060,424 units. The cumulative total for the first five months of the last year totaled 1,490,367.
Elsewhere, Japan's Mini Vehicle Association said sales of mini vehicles dropped 18.4% year-on-year to 113,540 units in May. Sales fell for the seventh consecutive month.
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Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
News are provided by InstaForex in partnership with RTT.
Monday, the U.S. dollar headed south to new multi-month lows against its European, Swiss and UK counterparts as investor risk appetite dampened demand for the safe-haven greenback and boosted higher yielding currencies.
The dollar fell as General Motors is expected file for bankruptcy protection today, which would be the biggest industrial bankruptcy in the history of the U.S., in a deal that will give taxpayers a 60 percent ownership stake and expand the government's reach into big business.
The Obama administration said Sunday that it has deemed GM's reorganization plan viable, and will provide the company $30.1 billion in what is called debtor-in-possession financing - money the company can use while it moves through the bankruptcy process.
The company will also receive some support from the governments of Canada and Ontario, which will lend the firm $9.5 billion.
The dollar fell sharply against other major currencies in the past week as global shares surged up on recovery hopes. But contracting gross domestic product, tumbling business investment spending and homebuilding activity in the U.S. suggested lingering economic weakness and reminded investors that the road to recovery is far from near.
The greenback tumbled to a new multi-month low of 1.4247 against the euro during early deals on Monday. This may be compared to Friday's New York session closing value of 1.4148. On the downside, the next likely target for the greenback is seen around the 1.436 level.
The U.S. currency suffered significant weakness versus the euro in May, falling around 7% despite a series of disappointing news from Europe's largest economy, Germany.
The European Central Bank rate decision is due this week. In May, the ECB has lowered its main refinancing rate to a record low of 1 per cent to boost consumption.
The U.S. dollar slumped to its lowest level since October 2008 against the U.K. currency and hit as low as 1.6434 by 4:15 am ET Monday. At last week's close, the pair was quoted at 1.6190. If the dollar slides further, 1.667 is seen as the next likely target level.
The dollar fell nearly 10 per cent versus the pound in May and tumbled around 3.6% in the previous week on the back of rising U.K. equity markets and encouraging data. The pound is the only currency that has strongly appreciated against the dollar in the past week.
On Friday, the pound spiked higher as U.K. house prices rose unexpectedly in May to record the largest increase since October 2007, hinting that the U.K. economy is on the road to recovery. U.K. house prices rose 1.2% in May from the prior month, reversing a 0.3% decline reported in April
The Bank of England will also meet this Thursday to decide on whether to cut, hold, or raise interest rates further.
Against the yen, the dollar slipped to a 5-day low of 94.47 during today's early trading. The next downside target level for the dollar-yen pair is seen around the 93.8 level. The dollar was worth 95.24 against the yen at Friday's New York session close.
Rising equity markets and signs that the global economy's downtrend is easing, such as a rebound in Japanese industrial production put pressure on the dollar.
Against its Swiss counterpart, the dollar declined to a 6-month low of 1.0621 during Monday's early trading and 1.054 is seen as the next likely target level. At Friday's New York session close, the dollar-franc pair was quoted at 1.0677.
From U.S., the Bureau of Economic Analysis is due to release its personal income & outlays report for April. Economists estimate the report, which is due out at 8:30 am ET, to show that personal income fell 0.2% and the personal spending also declined 0.2% in the month.
Thereafter, the results of the manufacturing survey of the Institute for Supply Management, is due at 10:00 am ET. Economists expect the index to show a reading of 42 for May. the Commerce Department's construction spending report is also scheduled to be released at the same time. The report is expected to show a 1.8% decline in spending for April.
The week's biggest economic news comes on Friday in the form of the U.S. government's monthly jobs report for May. Nonfarm payrolls are expected to drop by 550,000 after slipping 539,000 the month before.
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News are provided by InstaForex in partnership with RTT.
In further signs that the worst of the recession is over, the decline in Eurozone service sector activities eased further in May, reports said Wednesday, citing data released by the Markit Economics.
The purchasing managers' index or PMI for the Eurozone service sector rose to 44.8 in May from a flash reading of 44.7 and 43.8 in April. The PMI thus reached to a seven-month high. However, the headline index is still below the 50-mark that divides expansion and contraction. The expectations index for the service sector rose to a 15-month high of 59.1 from April's 54.4.
The composite index that contains both service and manufacturing PMIs was at 44, an increase from previous month's 41.1 and the flash reading of 43.9.
The PMI for Germany's service sector increased to 45.2 from 43.8 in April and that for France stood at an eight-month high of 48.3, up from 46.5 in April and 47.6 initially estimated. The Italian services PMI climbed to 43.1 from 42 in the previous month. However, in Spain, the activity contracted notably. The PMI fell to 39.1 from 42.3.
Out of the euro area, the CIPS/Markit PMI for the British service sector unexpectedly moved above the 50-mark to record a growth for the first time in a year. The indicator rose to 51.7 in May from 48.7 in April, while forecast was for a reading of 49.5. That was the sixth consecutive gain.
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News are provided by InstaForex in partnership with RTT.
European Economics Preview: BoE, ECB Expected To Hold Rates At Record Low.
(RTTNews) - Thursday, the Bank of England and the European Central Bank are set to announce their interest rate decisions. Both central banks are expected to hold their key interest rates at record low levels.
At the end of two-day rate setting meeting, the Monetary Policy Committee of BoE is forecast to maintain the Bank Rate at 0.5%, the lowest since the central bank was established in 1694. The decision is due at 7.00am ET.
In the last month meeting, the BoE had decided to raise the size of the asset purchase plan by a GBP 50 billion to a total GBP 125 billion. Economists now expect the MPC to continue with the asset purchase programme using central bank reserves without raising the size of the plan.
The British Chambers of Commerce urged the MPC to accelerate the tempo at which they execute the asset purchase programme and to increase the scheme's size beyond GBP 125 billion.
At 7.45am ET, the European Central Bank is expected. The central bank is forecast to stay pat on key rate. Following a 25 basis point reduction in May, the central bank is expected to hold the interest rate on the main refinancing operations of the Eurosystem at 1%.
At 2.45am ET, the French statistical office INSEE is scheduled to issue ILO unemployment data. The mainland ILO jobless rate in the first quarter is seen at 8.3%, up from 7.8% in the fourth quarter.
The statistical reports due at 3.00am ET are Hungarian trade balance and Romania's average nominal wages. Half an hour later, consumer prices data is due from Statistics Netherlands. Dutch annual inflation is expected to ease to 1.5% in May from 1.8% in April.
Thereafter, euro area retail sales data is due from Eurostat at 5.00am ET. Economists forecast retail sales to grow 0.2% month-on-month in April following a 0.6% fall in March. In the meantime, the Iceland central bank decision is also due.
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Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
News are provided by InstaForex in partnership with RTT.
UK Output Prices Fall For First Time Since 2002.
(RTTNews) - Friday, the Office for National Statistics said output prices for all manufactured goods in the U.K. dropped 0.3% year-on-year in May, reversing a 1.3% rise in April. This was the first annual decrease since July 2002. Economists were expecting a 0.4% fall.
The index climbed 0.4% between April and May, reflecting rises in petroleum product prices, other manufactured product prices and tobacco and alcohol. The monthly growth rate matched economists' expectations.
Excluding volatile items, output prices were up 1.2% in the year to May, compared with a 2.5% increase in April. The annual growth in May was weakest since December 2005.
Further, the ONS said input prices moved up 0.4% in May from the prior month, much slower than the 4.4% increase seen in the same period of previous year. Annually, input prices dipped 9.4% versus 5.8% decline in April.
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News are provided by InstaForex in partnership with RTT.
Extending its recent rally, the UK's sterling rallied strongly higher against its major rivals on Tuesday morning in Asia. The pound rose to a 5-day high of 158.6 against the Japanese yen and 1.7548 against the Swiss franc by 8:00 pm ET. The pound also ticked up to 1.6102 against the US dollar and 0.8656 against the euro during this time.
Traders mulled reports showing the average asking price for houses in Great Britain came in at -44.1 in May, the Royal Institute of Chartered Surveyors said today, posting an 18-month index high. The score beat analyst expectations for -50.0 following the revised -58.7 in April for the highest reading since November 2007.
At the same time, the British Retail Consortium report showed today that same-store sales in May were down 0.8 percent on year. Overall sales, including those from newly opened stores, were up 0.8 percent on year.
The next upside target levels for the pound are seen at 1.773 against the franc, 161 versus the yen, 1.61 against the buck and 0.865 against the euro. At Monday's North American session, the pound closed deals at 0.8663 against the euro, 1.7525 versus the franc, 1.6053 against the greenback and 158.14 against the yen.
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News are provided by InstaForex in partnership with RTT.
Crude oil inventories fell sharply in the recent week, according to Energy Information Administration data released Wednesday morning. Gasoline stockpiles also declined.
U.S. commercial crude oil inventories decreased by 4.4 million barrels from the previous week. At 361.6 million barrels, U.S. crude oil inventories remained above the upper boundary of the average range for this time of year.
The report backed the American Petroleum Institute data revealed Tuesday, showing crude supplies dropped 5.96 million barrels last week. Participation in the API survey is voluntary, so the EIA report is more closely watched.
Total motor gasoline inventories decreased by 1.6 million barrels last week, distillate fuel inventories slipped by 300,000 barrels and propane/propylene inventories increased by 1.4 million barrels.
Over the last four weeks, motor gasoline demand has increased by 0.4 percent from the same period last year, distillate fuel demand has declined 8.4 percent from the same period last year and jet fuel demand is 14.3 percent lower.
Crude oil maintained its early gains following the report. Light sweet crude moved to $70.71, up 90 cents for the session. Oil touched as high as $71.79 shortly after the data was announced but quickly cooled off.
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News are provided by InstaForex in partnership with RTT.
Japanese yen bounces back against European majors.
(RTTNews) - During early European deals on Thursday, the Japanese yen reversed its Asian session's downtrend against the European currency, the British pound and the Swiss franc. Meanwhile, the yen extended its gains against the US dollar.
The yen edged down earlier in Asian deals after a report showed that Japan's economy shrank in the first quarter at its fastest pace since World War Two.
The gross domestic product in Japan contracted by 3.8 percent in the first quarter compared to the previous three months, the Cabinet Office said today in its final report. That was slightly better than the record preliminary reading of -4.0 percent, at which analysts expected GDP to hold steady. GDP saw a 3.8 percent quarterly decline in Q4 of 2008.
On an annualized basis, GDP was down 14.2 percent versus expectations for a 14.9 percent decline after the -15.2 percent preliminary reading. Capex came in at -8.9 percent compared to the original 10.4 percent decline.
The Japanese yen extended its Asian session gains against the US dollar during early European deals on Thursday. At 3:10 am ET, the yen reached a high of 97.67 against the greenback, compared to 98.13 hit late New York Wednesday. The next upside target level for the Japanese currency is seen around 96.9.
The Japanese yen that closed Wednesday's North American session at 137.23 against the European currency declined to 137.71 at 2:15 am ET Thursday Thereafter, the yen reversed its direction and is currently trading at 136.80 against the euro with 134.3 seen as the next target level.
Against the British pound, the Japanese unit gained ground after hitting a low 160.98 at 2:15 am ET Thursday. The yen is presently trading at 160.05 versus the pound, compared to Wednesday's closing value of 160.56. On the upside, 155.6 is seen as the next target level for the Japanese yen.
The Japanese currency that touched a low of 91.09 against the Swiss franc during today's Asian deals strengthened thereafter. At 3:25 am ET, the yen climbed to 90.44 against the franc. This may be compared to Wednesday's closing value of 90.85. If the Japanese yen gains further, 89.6 is seen as the next target level.
At 4.00 am ET, the European Central Bank is slated to issue its monthly bulletin.
Half an hour later, Inflation Attitude survey is due from the Bank of England. According to the quarterly survey released on March 12, median expectations of the rate of inflation over the coming year were 2.1%, the lowest out turn since May 2005.
From U.S., the retail sales for May, business inventories for April and the weekly jobless claims report are expected.
Atlanta Federal Reserve Bank President Dennis Lockhart is due to deliver a speech on the economy before National Association of Securities Professionals annual conference in Atlanta at 1:05 PM Eastern Time.
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News are provided by InstaForex in partnership with RTT.
The dollar firmed up in choppy trading versus other major currencies Wednesday, but most of its gains came prior to the release of the Federal Reserve's Beige Book, which said that economic conditions remained weak or deteriorated further during the period from mid-April through May.
After coming under pressure over the last two days versus the euro and sterling amid increased risk appetite, the dollar steadied as a rally in stocks faded, causing traders to seek safer ground in the world's reserve currency.
The dollar spent most of the afternoon between 1.3900 and 1.4000, staying away from a 5-month low of 1.4338 set a week ago. Versus the sterling, the dollar managed to hold its ground near 1.6350, having slipped more than 5 cents over the previous two sessions. 8 days ago, the buck dropped to a 6-month low of 1.6662, culminating a dismal one-month run to the downside.
Russian Central Bank rattled currency traders today by saying it may cut its U.S. treasury investments in favor of International Monetary Fund bonds.
Also Wednesday, official data showed that the German annual inflation rate reached the lowest level since 1987 on easing energy and food prices. French industrial production dropped faster than expected in April due to widespread contraction in all industrial sub-sectors, especially in the manufacture of petroleum products.
Out of the euro area, British manufacturing output recorded growth for the second straight month in April signaling that the economy is on the road to a gradual recovery.
The dollar crept higher versus the yen, rising back above 98 to challenge a 4-week high of 98.87, set Monday morning. Wednesday saw some key statistical data releases from major Asian economies. Official reports showed that orders for Japanese machinery dropped to the lowest level in more than two decades and in China, consumer prices fell for the fourth straight month.
Back in the US, the Fed's Beige Book, a compilation of anecdotal evidence on economic conditions from each of the twelve Federal Reserve districts, said manufacturing activity declined or remained at a low level across most districts.
However, the Fed said that several districts also reported that the outlook by manufacturers has improved somewhat.
With the value of exports falling by more than the value of imports in the month of April, the Commerce Department released a report Wednesday morning showing that the U.S. trade deficit for the month came in modestly wider than in March.
The report showed that the trade deficit widened to $29.2 billion in April from a revised $28.5 billion in March. Economists had expected the deficit to widen to $29.0 billion from the $27.6 billion originally reported for the previous month.
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News are provided by InstaForex in partnership with RTT.
US Dollar Edges Up Against Majors.
(RTTNews) - Friday, the dollar edged up against its major counterparts on hopes of an economic recovery as data showed yesterday that the retail sales in U.S. rose in May for the first time in three months and the number of people filing first-time unemployment claims dropped last week to the lowest level in more than four months.
The dollar also gained ahead of the G8 finance ministers meeting later in the day where the ministers are expected to discuss the exit policies.
Trading will be subdued as investors may focus on the comments that may come out of the Group of eight ministers meeting. Its is expected that U.S treasury secretary may say U.S favors a strong dollar.
The U.S. Labor Department revealed Thursday that initial jobless claims, a closely-watched gauge of layoffs, came in at 601,000 for the week ended at June 6th. This was down 24,000 from the previous week's revised level of 625,000.
Another report released by the Commerce Department said that retail sales showed a notable increase in the month of May, although the increase was due in large part to an increase in gasoline prices that drove up sales at gas stations.
The report showed that retail sales rose 0.5 percent in May following a revised 0.2 percent decrease in April. Economists had expected sales to increased by 0.5 percent compared to the 0.4 percent decrease originally reported for the previous month.
Today at 8:30 am ET, the export & import price indexes for April, are due out from U.S. At 10 am ET, the Reuters/University of Michigan's preliminary report on the consumer sentiment index for June is scheduled to be released. Consumer confidence is expected to remain almost flat in the month, with economists forecasting a value of 68.6, little change from the previous month's 68.7.
The dollar that was worth 1.4110 against the euro and 1.6593 against the pound at yesterday's New York session close hit highs of 1.4034 and 1.6448, respectively during today's early trading. The next upside target levels for the dollar is seen at 1.391 against the European currency and 1.624 against the pound.
From the euro-area, the Euro zone industrial production dropped a seasonally adjusted 1.9% month-on-month in April, compared with a 1.4% fall in March, revised from 2% drop reported initially. Economists were looking for a decline of 0.4%.
Year-on-year, industrial production declined 21.6% in April, after falling 19.3% in March, revised from 20.2% drop estimated initially. Economists had predicted a decrease of 19.8%.
Additionally, the French statistical office INSEE said consumer price index or CPI dropped 0.3% year-over-year in May, compared with a 0.1% increase in the previous month. This was the first decrease since 1957. Economists were looking for a decline of 0.2%.
The dollar edged higher against its Swiss counterpart during Friday's early trading. At about 5:15 am ET, the dollar-franc pair hit as high as 1.0766, compared to yesterday's closing value of 1.0704. If the dollar rises further, 1.095 is seen as the next target level.
The greenback strengthened in early dealings versus the yen and hit as high as 98.26 by 5:40 am ET. This may be compared with yesterday's closing value of 97.65. The immediate resistance level for the pair is seen around the 98.8 level.
Japan's Ministry of Economy, Trade and Industry said today that the industrial production grew 5.9% month-on-month in April, revised up from the preliminary estimate of 5.2%. On a yearly basis, production plunged 30.7% in April.
Japan's consumer confidence improved to 36.3 in May from 33.2 logged in the previous month, a monthly survey from the Cabinet Office revealed. The indicator stood above the expected reading of 34.
Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
News are provided by InstaForex in partnership with RTT.