Forex - Dollar steady just below 6-year highs vs. yen

The dollar was holding steady just below six year highs against the yen on Monday as the rally in the greenback paused ahead of the upcoming Federal Reserve meeting later in the week.USD/JPY was trading at 107.20, hovering just below Friday’s highs of 107.38, the most since October 2008.

The pair gained 2.05% last week as expectations that the Fed is growing closer to raising interest rates continued to boost the dollar against the yen, with Japan’s central bank likely to stick to a looser monetary policy stance.



The Fed was expected to cut its asset purchase program by another $10 billion at its meeting on Wednesday, which would keep it on track for winding up the program in October, and to start raising interest rates sometime in mid-2015.

Data on Friday showing that U.S. retail sales rose in August and another report showing that consumer sentiment rose to a 14-month high in September underlined the view that the economic recovery is deepening.

The yen remained under pressure after Bank of Japan Governor Haruhiko Kuroda said late last week that the bank would be prepared to immediately loosen monetary policy or implement other measures if its 2% inflation target becomes difficult to meet.

Elsewhere, the euro slipped lower against the yen, with EUR/JPY down 0.21% to 138.89, off Friday’s two-month highs of 139.18.The euro slid after data over the weekend showed that Chinese factory output and retail sale growth slowed in August, adding to concerns over a slowdown in the world’s largest economy.

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NYMEX crude prices up in Asia after API shows sharp drop in U.S. stocks

Crude oil prices rebounded in Asia on Wednesday after industry data on U.S. stocks showed a sizeable drawdown in the past week.The American Petroleum Institute, an industry group, said late Tuesday that last week crude stocks fell by 1.9 million barrels, gasoline inventories rose by 719,000 barrels, and distillate supplies rose by 1.7 million barrels.



Analysts expect the U.S. Department of Energy to report crude stocks fell 1.114 million barrels last week and distaillate stocks rose 571,000 barrels, while gasoline stocks eased 157,000 barrels with the actual figures due later Wednesday.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in October traded at $93.02 a barrel, up 0.29%, after hitting an overnight session low of $92.53 a barrel and a high of $93.94 a barrel.

Brent oil, the global oil benchmark, slid 1% to $99.16 a barrel on ICE Futures Europe Tuesday, the lowest settlement price since April 18, 2013.Also on Tuesday, the U.S. Energy Information Administration lowered its forecasts for oil prices in 2014 and 2015, reflecting higher U.S. production estimates and lower global demand expectations.

U.S. production hit 8.6 million barrels a day in August, the highest monthly level since July 1986, the EIA said. The agency projects average production of 9.53 million barrels a day in 2015, the highest since 1970. Prices have tumbled since mid-June, as violence in a number of global hot spots hasn't caused an interruption in oil supplies and demand has been tepid, particularly in Europe and Asia.

Brent contracts for delivery in late 2014 and 2015 are more expensive than the front-month October contract, indicating that traders think the market is amply supplied. Overnight, oil prices moved off nine-month lows, brushing off weak Chinese import data and Friday's soft U.S. jobs report on hopes weekly supply data will reflect solid demand in the world's largest consumer of crude.Gains were limited due to ongoing expectations U.S. interest rates to rise sooner rather than later, which bolstered the dollar.

http://www.investing.com/news/commodities-news/nymex-crude-prices-up-in-asia-after-api-shows-sharp-drop-in-u.s.-stocks-308859

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.

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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.

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