Forex - Euro steady ahead of ECB policy announcement

The euro was steady against the other major currencies on Thursday as investors looked ahead to the European Central Bank’s monetary policy announcement later in the day.EUR/USD was trading at 1.3149, holding above the one year low of 1.3109 set on Tuesday.



The pair was likely to find support at the 1.3100 level and resistance at around 1.3195.The euro has come under heavy selling pressure in recent sessions amid mounting expectations that the ECB will announce quantitative easing measures as a way to shore up growth after the annual rate of euro area inflation slowed to a five year low of 0.3% last month.

The ECB targets an inflation rate of close to but just under 2%.Data on Wednesday showed that activity in the German and French service sectors slowed in August, while Italy’s service sector contracted, adding to pressure on the bank to act.

Concerns that sanctions against Russia would act as a drag on growth in the euro zone have also weighed on the single currency.EUR/JPY was flat at 137.85, while EUR/GBP was at 0.7990.
Elsewhere, the dollar edged higher against the yen, with USD/JPY edging up 0.07% to 104.85.The dollar ended Wednesday’s session lower against the yen as investor took profits following a rally in the greenback, which propelled it to eight month highs against the yen.

http://www.investing.com/news/forex-news/forex---euro-steady-ahead-of-ecb-policy-announcement-307630

Gold futures fall to 1-week lows

Gold futures fell to their lowest level in a week on Tuesday, pressured by a broadly stronger dollar which offset safe haven demand for the precious metal stemming from heightened tensions between Russia and Ukraine.

Gold for December delivery touched lows of $1,275.60 and was last down 0.71% to $1,278.30 an ounce on the Comex division of the New York Mercantile Exchange.The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, hit highs of 82.95 on Tuesday, the strongest level since July 2013.



The euro was at its lowest level in a year against the dollar amid mounting expectations that the European Central Bank will implement fresh easing measures as a way to shore up long term inflation expectations in the euro area.

Concerns that sanctions against Russia would act as a drag on growth in the euro zone also weighed on the single currency.Over the weekend European Union leaders threatened to impose a new round of sanctions on Russia if Moscow does not scale back its involvement in the conflict in eastern Ukraine.

The dollar rose to seven month highs against the yen on Tuesday, boosted by weakness in the euro and by gains in Asian equities markets overnight, which curbed investor demand for the safe haven yen.
A stronger dollar makes gold more expensive for buyers who use other currencies as the metal is traded in dollars.

Investors were looking ahead to the latest U.S. employment report, due for release on Friday, for further indications on the strength of the recovery in the labor market, a key factor in deciding the future path of monetary policy.

Elsewhere in metals trading, palladium prices eased but remained close to thirteen-and-a-half year highs, amid concerns that more far reaching sanctions against Russia, the world's largest palladium producer, could hit supplies.Nymex Palladium for December delivery slipped 0.35% to $906.40 an ounce, off Monday’s highs of $913.00.

http://www.investing.com/news/commodities-news/gold-futures-fall-to-1-week-lows-306818

Forex - Aussie retraces weakness after China HSBC PMI, domestic data

The Austrlian dollar recovered Monday, but the Japanese yen held weaker in Asia with the Ukraine in focus and data from Australia, Japan and China trickling in on a busy day and with markets in the U.S. and Canada closed for the Labor Day holiday.

USD/JPY traded at 104.18, up 0.10%, while AUD/USD retraced early weakness and changed hands at 0.9336, down 0.02%.U.S. officials are working closely with the European Union to keep their Russia sanctions programs aligned in timing and severity.



On Saturday, European Union leaders agreed to draw up options within a week for possible new sanctions against Russia, with action to follow quickly unless Moscow takes clear steps to scale back itsintervention in Ukraine. Reports have emerged that hundreds of Russian soldiers have entered Ukraine.

European Council President Herman Van Rompuy said the bloc wouldn't set out specific criteria for triggering fresh sanctions but said there was "determination" to ensure Russia paid an appropriate price for heightening tensions.

"I can assure you that everyone is fully aware that we have to act quickly given the escalation on the ground," he said at the end of a summit of European leaders.In Australia, the AIGroup manufacturing index fell 3.4 points to 47.3, slipping into contraction just a month after it moved into expansion at 50.7 after eight months.

The TD-MI inflation gauge was flat in August, after the gauge rose 0.2% month-on-month.Second quarter business inventories in Australia rose 0.8%, well above the 0.2% gain expected and then the Reserve Bank of Australia commodity index is due at 1630 (0630 GMT).

In Japan, capital spending rose 3.0%, below and expected 3.8% gain and then the manufacturing index seen at 52.4.In China, the August CFLP manufacturing PMI came in at 51.1, just a nick below the 51.2 exepected.

The HSBC final manufacturing PMI came in at 50.2, just below the 50.3 expected.Last week, the dollar ended the week close to one year highs against the euro as largely upbeat U.S. data indicated that the economic recovery is on track, while soft euro zone inflation data and concerns over the Ukraine crisis pressured the single currency lower.

The dollar was boosted after data showed that U.S. consumer sentiment rebounded in August, with the final reading of the University of Michigan’s consumer confidence index rising to 82.5 from 81.8 in June.

The data offset another report showing that U.S. consumer spending unexpectedly fell 0.1% in July.The single currency remained under pressure after official data earlier on Friday showed that the annual rate of inflation in the euro area slowed to a five year low of 0.3% in August from 0.4% in July.


The US Dollar Index traded at 82.83, up 0.10%.In the week ahead, trading volumes are likely to remain light on Monday, with U.S. markets closed for the Labor Day holiday. Investors will be focusing on Thursday’s outcome of the ECB’s monthly monetary policy meeting, as well as Friday’s closely watched U.S. nonfarm payrolls report.

http://www.investing.com/news/forex-news/forex---aussie-retraces-weakness-after-china-hsbc-pmi,-domestic-data-306695

Forex - Dollar slips lower on profit-taking

The dollar slipped lower against the other major currencies on Wednesday, as investors locked in profits following the greenback's recent upward and as trading volumes were expected to remain light in the absence of any major economic reports from the U.S.

The dollar found support on Tuesday after the Conference Board said its index of consumer confidence rose to 92.4 this month, the highest since October 2007, from a reading of 90.3 in July.The data fuelled further optimism over the strength of the U.S. economic recovery.




EUR/USD edged up 0.08% to 1.3179.Earlier Wednesday, data showed that the Gfk German consumer climate index fell to 8.6 this month, from a reading of 9.0 in July. Analysts had expected the index to remain unchanged in August.

The weak data added to speculation that the European Central Bank could implement fresh easing measures, after ECB President Mario Draghi said at Jackson Hole last week that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.

The pound edged higher, with GBP/USD adding 0.18% to 1.6569.The dollar fell against the yen and the Swiss franc, with USD/JPY down 0.10% to 103.95 and with USD/CHF slipping 0.13% to 0.9163.
Meanwhile, AUD/USD rose 0.29% to 0.9333 and NZD/USD gained 0.40% to 0.8367, while USD/CAD retreated 0.51% to 1.0896.

Official data earlier showed that construction work done in Australia fell by 1.2% in the second quarter, after a 0.4% fall in the first quarter whose figure was revised from a previously estimated 0.3% rise.
Analysts had expected construction work done to decline by 0.3% in the last quarter.

http://www.investing.com/news/forex-news/forex---dollar-slips-lower-on-profit-taking-305801

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