Forex - Euro at 11-month lows against broadly stronger dollar

The euro fell to 11-month lows against the broadly stronger dollar on Wednesday as signs that the U.S. recovery is progressing underpinned dollar demand ahead of Federal Reserve meeting minutes due out later in the day.

EUR/USD was down 0.29% to 1.3281, the lowest since September 13, from 1.3319 late Tuesday.The pair was likely to find support at around the 1.3250 level and resistance at about 1.3325.The dollar strengthened across that board after data on Tuesday showed that U.S. housing starts jumped 15.7% in July, while the number of new permits granted to home-builders also accelerated.



The data pointed to underlying strength in the housing sector, which stalled in the second half of last year.The data offset a report showing that U.S. consumer prices rose just 0.1% in July.Investors were looking ahead to the minutes of the Fed’s latest meeting due for release later Wednesday for further indications on the future direction of monetary policy.

Market watchers were also awaiting a speech by Fed Chair Janet Yellen in Jackson Hole on Friday.The euro remained under pressure after data last week showed that the euro zone economy stagnated in the second quarter, adding to fears that the recovery in the region is running out of steam.

The weak data added to pressure on the European Central Bank to implement fresh measure to shore up growth after it cut rates to record lows in June.Elsewhere Wednesday, the dollar climbed to more than four month highs against the yen, with USD/JPY rising 0.40% to 103.31.

http://www.investing.com/news/forex-news/forex---euro-at-11-month-lows-against-broadly-stronger-dollar-304439

European stocks mostly higher despite global tensions; Dax down 0.16%

European stocks were mostly higher on Monday, although concerns over geopolitical tensions in the Middle East and Ukraine continued to dominate market attention.During European morning trade, the DJ Euro Stoxx 50 edged up 0.06%, France’s CAC 40 rose 0.23%, while Germany’s DAX fell 0.16%.

                            

In Gaza, fighting slightly subsided on Sunday after Hamas Islamist militants said they backed a 24-hour humanitarian truce in light of the Muslim holiday Eid al-Fitr.Meanwhile, the European Union agreed to impose economic sanctions against Russia for its role in the Ukraine crisis. Moscow reacted to the sanctions by warning that they would hamper cooperation on global security issues.

Financial stocks were mixed, as BNP Paribas (PARIS:BNPP) gained 0.40% and Societe Generale (PARIS:SOGN) slipped 0.19% in France, while Germany's Deutsche Bank (XETRA:DBKGn) declined 0.82%.Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) added 0.04% and 0.21% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) fell 0.09% and 0.30%.

Elsewhere, Danone (PARIS:DANO) rallied 1.98% amid reports the French consumer products maker is in talks with Hospira as a potential buyer for a medical nutrition unit.On the downside, Wincor Nixdorf (XETRA:WING) saw shares plunge 9.74% after the maker of automated teller machines posted third-quarter revenue that misses analysts' estimates.In London, FTSE 100 inched up 0.05%, led by Reckitt Benckiser, up 2.81%, after the company said it plans to spin off its pharmaceutical business.

http://www.investing.com/news/stock-market-news/european-stocks-mostly-higher-despite-global-tensions;-dax-down-0.16-298249

Dollar remains broadly supported by U.S. jobless data

The dollar remained broadly higher against the other major currencies on Friday, as Thursday's upbeat U.S. jobless claims data continued to support demand for the greenback.The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending July 19 declined by 19,000 to an more than eight-year low of 284,000, from the previous week’s total of 303,000.

The data fuelled speculation over the timing of a possible rate hike by the Federal Reserve.EUR/USD remained near six-month lows at 1.3449.The Ifo Institute for Economic Research earlier reported that its German business climate index fell to a nine-month low of 108.0 this month, from a reading of 109.7 in June. Analysts had expected the index to tick down to 109.4 in July.



A separate report showed that the Gfk German consumer climate index rose to a seven-and-a-half year high of 9.0 this month, from a reading of 8.9 in June. Analysts had expected the index to remain unchanged in July.

Elsewhere, the dollar was higher against the yen and the Swiss france, with USD/JPY up 0.10% to 101.91 and with USD/CHF adding 0.14% to 0.9038.In Japan, official data earlier showed that consumer price inflation rose 3.6% in June from a year earlier, after a 3.7% gain the previous month.

Excluding fresh food, Japan CPI rose 3.3% in June from a year earlier, in line with expectations, after a 3.4% increase in May.Sterling held steady, near one-month lows with GBP/USD at 1.6975 even as U.K. economic growth data came out in line with expectations.

Preliminary data showed that U.K. gross domestic product rose 0.8% in the second quarter, in line with market expectations.The New Zealand dollar was lower, with NZD/USD down 0.27% to 0.8550 after data showed that the ANZ business confidence index fell to 39.7 this month, from a reading of 42.8 in June.

http://www.investing.com/news/forex-news/dollar-remains-broadly-supported-by-u.s.-jobless-data-297942

Gold gains as a investors seek safe harbor from geopolitical woes

Gold prices rose on Monday on demand from investors seeking safe harbor from geopolitical tensions in Ukraine and in Gaza, especially after the U.S. put pressure on Russia to disclose what it knows about the downing of a Malaysian Airlines plane last week.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at 1,314.60 a troy ounce during U.S. trading, up 0.40%, up from a session low of $1,308.00 and off a high of $1,319.00.




The August contract settled down 0.57% at $1,309.40 on Friday.Futures were likely to find support at $1,292.60 a troy ounce, last Tuesday's low, and resistance at $1,325.90, last Thursday's high.Concerns that tensions in Ukraine could escalate even further kept investors camped out in safe-haven positions on Monday, gold especially, amid reports that Ukrainian troops were moving in to the rebel-held city of Donetsk only days after pro-Russian separatists allegedly shot down a Malaysian Airlines flight with a missile.

Meanwhile in the Middle East, Israel pressed on with its ground offensive in Gaza in a conflict that has killed hundreds.Earlier Monday, U.S. President Barack Obama said he was concerned about the violence and called for a ceasefire in Gaza.

President Obama also accused pro-Russian separatists of tampering with evidence pointing to the cause for the Malaysian Airlines crash, adding that the burden lies on Russia to disclose evidence.

http://www.investing.com/news/commodities-news/gold-gains-as-a-investors-seek-safe-harbor-from-geopolitical-woes-296518

Dollar mostly steady vs. rivals as U.S. data still weighs

The dollar was mostly steady against the other major currencies on Monday, as expectations for the Federal Reserve to keep interest rates on hold for longer continued to weigh on demand for the greenback.

The dollar was little changed against the euro, with EUR/USD down 0.01% to 1.3650.The greenback remained under pressure after official data last week showed that the U.S. economy contracted at an annual rate of 2.9% in the first three months of the year.



Another report showed that U.S. consumer spending rose by just 0.2% in May, below forecasts for 0.4%.Earlier Monday, official data showed that German retail sales data slipped 0.6% in May, compared to expectations for a 0.7% rise, after a 1.5% decline in April, whose figure was revised down from a previously estimated 0.9% fall.

The pound was steady against the dollar, with GBP/USD dipping 0.07% to 1.7025.The dollar was almost unchanged against the yen and the Swiss franc, with USD/JPY easing 0.05% to 101.37 and with USD/CHF down 0.06% to 0.8903.

The greenback was higher against the Australian, New Zealand and Canadian dollars, with AUD/USD sliding 0.21% to 0.9403, NZD/USD dropping 0.49% to 0.8735 and USD/CAD easing up 0.20% to 1.0684.

The kiwi weakened after data showed that the ANZ business confidence index for New Zealand ticked down to 42.8 this month, from a reading of 53.5 in May.

A separate report showed that building consents in New Zealand dropped 4.6% in May, after an increase of 1.9% in April, whose figure was revised up from a previously estimated 1.5% rise.

http://www.investing.com/news/forex-news/dollar-mostly-steady-vs.-rivals-as-u.s.-data-still-weighs-292033

Forex - EUR/USD weekly outlook: June 23 - 27

The dollar inched higher against the euro on Friday, but still ended the week lower after the Federal Reserve indicated that its isn’t going to raise interest rates for a long period of time.

EUR/USD dipped 0.06% to 1.3598 late Friday, but posted a weekly gain of 0.47%.The pair is likely to find support at 1.3540 and resistance at 1.3650.

                   

The greenback remained under pressure after the Fed gave no indication of when interest rates could start to rise at the conclusion of its two-day meeting on Wednesday. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.

The central bank cut its bond purchases by $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.

Despite this, the Fed also lowered its forecast for growth this year to a range of 2.1% to 2.3% from 2.8 to 3.0% previously, due to "unexpected contractions" in the first quarter as a result of the unusually harsh winter.

The Fed acknowledged the recent increases in inflation and drop in unemployment, but Chair Janet Yellen said no formula was in place for when interest rates would start to rise.

Elsewhere, the euro ended the week higher against the yen, with EUR/JPY ending Friday’s session at 138.84, for a weekly gain of 0.59%.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up to 80.41 late Friday from lows of 80.24 on Thursday. For the week, the index lost almost 0.3%.

http://www.investing.com/news/forex-news/forex---eur-usd-weekly-outlook:-june-23---27-290831

Crude oil futures hold steady, Iraq still in focus

Crude oil futures held steady on Friday, still hovering near nine-month highs as ongoing concerns over possible supply disruptions in Iraq continued to support demand for the commodity.On the New York Mercantile Exchange, U.S. crude oil for delivery in August traded at $106.08 a barrel during European morning trade, up 0.02%.

Prices gained 0.44% on Thursday to settle at $106.05.Futures were likely to find support at $105.11 a barrel, Thursday's low and resistance at $106.79, the high from June 16.



Concerns about potential supply disruptions due to fighting in Iraq persisted, as the conflict between Sunni Islamist insurgents and Iraqi army forces continued on Friday.

Fighting in the Iraqi city of Baquba, located to the northeast of Baghdad, shut down the country's biggest oil refinery on Wednesday.

U.S. President Barack Obama said on Thursday that he was sending up to 300 U.S. military advisers to Iraq and that he was prepared to take "targeted" military action later if deemed necessary.

Iraq produced approximately 3.5 million barrels a day of oil last month, making it OPEC’s second-biggest oil producer behind Saudi Arabia.

Meanwhile, markets were still digesting the fact that the Federal Reserve gave no indication of when interest rates could start to rise at the conclusion of its two-day meeting on Wednesday. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.

The central bank cut its bond purchases by $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.

Markets seemed to shrug off data on Thursday showing that U.S. jobless claims fell more than expected last week, as well as a separate report showing that manufacturing activity in the Philadelphia area expanded at the fastest rate in eight months in June.

http://www.investing.com/news/commodities-news/crude-oil-futures-hold-steady,-iraq-still-in-focus-290703