Forex - EUR/USD gains on soft U.S. sentiment, personal spending data

The euro rose against the dollar on Friday after U.S. consumer sentiment and personal spending reports disappointed markets a day after data revealed the U.S. economy contracted more than expected in the first quarter of the year.In U.S. trading, EUR/USD was up 0.24% at 1.3635, up from a session low of 1.3598 and off a high of 1.3650.

The pair was likely to find support at 1.3586, Thursday's low, and resistance at 1.3668, Tuesday's high.The revised Thomson Reuters/University of Michigan consumer sentiment index ticked up to 81.9 this month from 81.8 in April, missing market expectations for a reading of 82.5.

                   

While harsh winter weather dampened spirits, concerns wages will remain weak did more so."The May decline in consumer confidence was not due to the dismal state of the economy during the 1st quarter, which had the weakest pace of GDP growth in three years. Consumers thought the harsh winter weather was mainly responsible," the indicator's statement read.

Consumer sentiment would suffer more if the economy failed to rebound in the months ahead, though the survey revealed that consumers feel the economy will be strong enough to produce more jobs in the year ahead."The main concern expressed by consumers involved dismal prospects for wage growth. Tiny wage gains meant that nearly half of all households anticipated declines in inflation-adjusted incomes during the year ahead," the statement read.


Elsewhere, the Commerce Department reported that personal spending in the U.S. fell 0.1% last month, compared to expectations for a 0.2% rise, after a 1.0% increase in March, whose figure was revised from a previously estimated 0.9% gain. U.S. core personal consumption expenditures, which exclude food and energy, rose 0.2% in April, in line with expectations, after a 0.2% increase the previous month.

http://www.investing.com/news/forex-news/forex---eur-usd-gains-on-soft-u.s.-sentiment,-personal-spending-data-287154

Forex - AUD/USD rises after mixed Australian data

The Australian dollar rose against its U.S. counterpart on Thursday, after the release of mixed economic reports from Australia, although demand for the greenback remained supported by upbeat U.S. data published earlier in the week.



AUD/USD hit 0.9301 during late Asian trade, the pair's highest since May 20; the pair subsequently consolidated at 0.9287, climbing 0.57%.The pair was likely to find support at 0.9203, the low of May 2 and resistance at 0.9367, the high of May 19.

Industry data earlier showed that new home sales in Australia rose 2.9% in April, after a 0.2% uptick the previous month.A separate report showed that private capital expenditure in Australia dropped 4.2% in the first quarter, compared to expectations for a 1.4% decline. Private capital expenditure in the fourth quarter of 2013 was revised to a 4.5% drop from a previously estimated 5.2% fall.

Meanwhile, the greenback still remained supported after data on Tuesday showed that U.S. durable goods orders rose unexpectedly in April and another report showed that U.S. consumer confidence improved in line with forecasts this month.
The Aussie was also higher against the euro, with EUR/AUD retreating 0.53% to 1.4640.

http://www.investing.com/news/forex-news/forex---aud-usd-rises-after-mixed-australian-data-286788

Gold prices ease in Asia with China, India eyed

Gold eased in Asia on Friday with demand prospects from China and India in focus.A pickup in Chinese manufacturing in May - though still below expansion territory - and a new government in India may bode well for demand from the world's top two gold importers.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,294.30, down 0.05%, after hitting an overnight session low of $1,290.20 and off a high of $1,303.90.



On Wednesday, the Federal Reserve released the minutes of its April policy meeting, which revealed the U.S. central bank plans to continue tapering its monthly bond-buying program and rely on other tools to normalize monetary policy, though actual rate hikes won't come after considerable period of time.

The Labor Department reported earlier that the number of individuals filing for initial jobless benefits last week increased by 28,000 to 326,000 from the previous week’s revised total of 298,000. Analysts had expected jobless claims to rise by 12,000 to 310,000, though markets shrugged off the data.

Geopolitical concerns elevated gold prices also, as fears persist the Ukraine crisis will escalate and drag the U.S. deeper into the conflict, which could hamper recovery.Skirmishes with pro-Russian separatists left 11 Ukrainian soldiers dead in Ukraine's eastern region of Donetsk.

Ukraine will hold presidential elections on Sunday, and concerns persist that Russia will meddle in the voting and aggravate the crisis.U.S. and European officials have already warned that Russia would face sector-related sanctions if Moscow disrupts the upcoming elections.

http://www.investing.com/news/commodities-news/gold-prices-ease-in-asia-with-china,-india-eyed-286023

U.S. grains mixed; wheat falls for 6th straight session - Sean Seshadri

U.S. wheat futures declined for the sixth consecutive session on Wednesday, as market players continued to liquidate long positions amid easing concerns over tightening global supplies.On the Chicago Mercantile Exchange, U.S. wheat for July delivery declined 0.57% or 4.08 cents to trade at $7.0513 a bushel, during U.S. morning hours. Prices of the grain dropped 0.8%, or 5.6 cents on Tuesday to settle at $7.0920 a bushel.



Wheat prices have been under pressure in recent sessions after the U.S. Department of Agriculture projected higher global supplies than analysts had expected last week.

The USDA said global wheat inventories will total 187.4 million metric tons in the 2014-15 season starting June 1, up 0.5% from 186.5 million in the current marketing year.

In the U.S., approximately 30% of the winter wheat crop was rated “good” to “excellent” as of last week, down from 31% in the preceding week. Winter-wheat crops in “very poor” to “poor” conditions rose to 42% from 38% in the preceding week.
Elsewhere on the CBOT, U.S. soybeans for July delivery shed 0.25%, or 3.77 cents to trade at $14.8063 a bushel. The July soybean contract rallied 1.25%, or 18.4 cents on Tuesday to settle at $14.8360 a bushel.

Soy traders looked ahead to a report from the National Oilseed Processors Association due Thursday to gauge the strength of crushing demand for U.S. supplies in April.Meanwhile, U.S. corn for July delivery advanced 0.32%, or 1.62 cents, to trade at $5.0363 a bushel. The July corn contract added 0.65%, or 3.2 cents on Tuesday to settle at $5.0260 a bushel.

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