Forex - USD/CAD steady, focus on euro zone

Forexpros - The U.S. dollar was steady against its Canadian counterpart on Wednesday, as global growth concerns continued to weigh on market sentiment, while investors eyed fresh developments in the euro zone.

USD/CAD 0.9769 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9782, slipping 0.02%.

The pair was likely to find support at 0.9745, Tuesday's low and resistance at 0.9812, the high of October 5.

Market participants remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

Elsewhere, the loonie was also steady against the euro with EUR/CAD dipping 0.01%, to hit 1.2602.

Also Wednesday, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.

Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.

Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar

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Dollar steady in subdued trade as investors eye euro zone

Forexpros - The U.S. dollar was steady against the other major currencies on Wednesday, as investors remained on the sidelines while they awaited fresh developments in the euro zone.

During European afternoon trade, the dollar was almost unchanged against the euro, with EUR/USD dipping 0.01% to 1.2884.

Market participants remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

The greenback was steady close to a one-month high against the pound, with GBP/USD inching up 0.03% to 1.6008.

Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

Elsewhere, the greenback was fractionally higher against the yen, with USD/JPY edging up 0.10% to 78.33, but edged lower against the Swiss franc, with USD/CHF easing down 0.06% to 0.9396.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching down 0.01% to 0.9781, AUD/USD climbing 0.41% to 1.0247 and NZD/USD edging up 0.04% to 0.8182.

The Australian dollar found support after the country’s treasury auctioned AUD4 billion in government debt earlier in the day.

Separately, a report by Westpac and the Melbourne Institute showed that Australian consumer sentiment improved only modestly in October, despite three interest rate cuts in the past six months by the country’s central bank.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.03% to 80.07.

Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.

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Forex - GBP/USD little changed in quiet trade

Forexpros - The pound was little changed against the U.S. dollar in quiet trade on Wednesday, as investors remained cautious amid ongoing uncertainty over a possible bailout for Spain, while worries over the economic outlook also weighed.

GBP/USD hit 1.6026 during European afternoon trade, the session high; the pair subsequently consolidated at 1.6011, inching up 0.05%.

Cable was likely to find near-term support at 1.5975, the session low and a one-month low and resistance at 1.6045, Tuesday’s high.

Investors remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

The pound remained under pressure after a recent string of soft economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

On Tuesday, the IMF said the U.K. economy would contract by 0.4% in 2012, compared to its July forecast for 0.2% growth.

Sterling was almost unchanged against the euro, with EUR/GBP dipping 0.04% to 0.8048.

Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar.

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Forex - EUR/USD off session low; remains vulnerable

Forexpros - The euro pulled away from the session low against the U.S. dollar on Wednesday, but the single currency remained vulnerable amid ongoing uncertainty over prospects for a Spanish bailout, while worries over the global economic outlook also weighed.

EUR/USD pulled back from 1.2836, the pair’s lowest since October 1, to hit 1.2891 during European afternoon trade, inching up 0.04%.

The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.

The euro remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.

Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

The euro was fractionally lower against the pound, with EUR/GBP dipping 0.04% to 0.8048, but edged higher against the yen, with EUR/JPY easing up 0.16% to 100.98.

Also Wednesday, bilateral talks between Spanish Prime Minister Mariano Rajoy and French President Francois Hollande were continuing in Paris

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Forex - USD/CHF off session high in quiet trade

Forexpros - The U.S. dollar came off the session high against the Swiss franc in quiet trade on Wednesday, but losses were limited as ongoing concerns over the outlook for global growth and uncertainty over a possible bailout for Spain supported safe haven demand.

USD/CHF pulled back from 0.9431, the session high, to hit 0.9390 during European afternoon trade, slipping 0.13%.

The pair was likely to find support at 0.9321, Tuesday’s low and resistance at 0.9431, the session high and a seven-day high.

Demand for the dollar remained supported amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Elsewhere, Italy saw yields rise at an auction of short-term government debt, reflecting investor nervousness over the risk of contagion from Spain.

Italy’s Treasury auctioned EUR8 billion of 12-month bonds at an average yield of 1.94% up from 1.69% previously and the highest level since mid-August.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

The Swissie was fractionally higher against the euro, with EUR/CHF dipping 0.05% to 1.2109.

Also Wednesday, Swiss National Bank Chairman Thomas Jordan said the 1.20 per euro exchange rate floor the central bank imposed in September 2011 continued to be the correct policy for the foreseeable future

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Dollar rangebound as Spain uncertainty, growth worries weigh

Forexpros - The U.S. dollar was trading in a tight range against the other major currencies on Wednesday, as persistent concerns over the outlook for global growth and uncertainty over a possible Spanish bailout weighed on market sentiment.

During European morning trade, the dollar was higher against the euro, with EUR/USD slipping 0.19% to 1.2860.

The euro remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Elsewhere, Italy saw yields rise at an auction of short-term government debt, with the yield on 12-month bills climbing to 1.94% from 1.69% previously, the highest level since mid-August.

The greenback was steady close to a one-month high against the pound, with GBP/USD dipping 0.03% to 1.5997.

Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

Elsewhere, the greenback was fractionally higher against the yen and the Swiss franc, with USD/JPY edging up 0.06% to 78.30 and USD/CHF easing up 0.09% to 0.9410.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.04% to trade at 0.9786, AUD/USD easing up 0.16% to 1.0221 and NZD/USD dipping 0.09% to 0.8172.

In Australia, a report by Westpac and the Melbourne Institute showed that consumer sentiment improved only modestly in October, despite three interest rate cuts in the past six months by the country’s central bank.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.11% to 80.19.

Later in the day, Spanish Prime Minister Mariano Rajoy was to hold talks with French President Francois Hollande in Paris

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Forex - GBP/USD eases off 1-month low but upside limited

Forexpros - The pound pulled back from a one-month low against the U.S. dollar on Wednesday, but gains looked likely to remain limited amid ongoing concerns over the weak U.K. economy and uncertainty over prospects of a bailout for Spain.

GBP/USD pulled away from 1.5975, the session low and a one-month low, to hit 1.6069 during European morning trade, inching up 0.04%.

Cable was likely to find near-term support at 1.5975, the session low and resistance at 1.6045, Tuesday’s high.

The pound remained under pressure after a recent string of soft economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

On Tuesday, the International Monetary Fund said the U.K. economy would contract by 0.4% in 2012, compared to its July forecast for 0.2% growth.

Meanwhile, investors remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Sterling was higher against the euro, with EUR/GBP down 0.19% to 0.8036.

Also Wednesday, Italy saw yields rise at an auction of short-term government debt, with the yield on 12-month bills climbing to 1.94% from 1.69% previously, the highest level since mid-August.

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Forex - USD/JPY inches higher, gains limited by growth woes

Forexpros - The U.S. dollar inched higher against the yen on Wednesday, but gains were limited amid growing worries over the global economic outlook and lingering fears over the euro zone’s ongoing debt crisis.

USD/JPY hit 78.35 during European morning trade, the session high; the pair subsequently consolidated at 78.32, adding 0.09%.

The pair was likely to find support at 78.14, Tuesday’s low and resistance at 78.42, Tuesday’s high.

Market sentiment remained under pressure after the International Monetary Fund cut its 2012 global growth forecast to the slowest pace since the 2009 recession on Tuesday, and warned of even weaker expansion unless officials in the U.S. and Europe address threats to their economies.

Investors also remained cautious amid worries over how soon Spain may formally request a bailout and uncertainty over whether international creditors will extend loans to Greece.

The yen came under modest selling pressure after IMF Deputy Managing Director Naoyuki Shinohara said Tuesday the Bank of Japan has room to ease policy further, adding to calls from Japanese politicians for more action by the central bank.

Elsewhere, the yen was higher against the euro, with EUR/JPY down 0.06% to 100.77.

Later in the day, Italy was to auction EUR11 billion of short-term government bonds, while the Federal Reserve was to publish its Beige Book

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Forex - NZD/USD little changed as growth concerns persist

Forexpros - The New Zealand dollar was little changed against its U.S. counterpart on Wednesday, as concerns over the outlook for global economic growth and the handling of he debt crisis in the euro zone continued to dampen investor confidence.

NZD/USD hit 0.81!é during European morning trade, the daily high; the pair subsequently consolidated at 0.8181, edging up 0.02%.

The pair was likely to find support at 0.8112, the low of August 8 and resistance at 0.8223, the high of October 8.

Risk sentiment remained under pressure after the International Monetary Fund cut global economic growth forecasts for 2012 and 2013 on Tuesday, justifying the recent round of central bank stimulus which aimed to support to the world's fragile economies.

Earlier in the day, the IMF said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Markets were also jittery amid uncertainty over when Spain will request a sovereign bailout and when Greece will agree with its international lenders on terms for the next tranche of funds.

The kiwi was lower against the Australian dollar with AUD/NZD rising 0.31%, to hit 1.2513.

Also Wednesday, the Westpac Banking Corporation said that consumer sentiment in Australia rose 1% in October, after a 1.60% inrease the previous month.

Later in the day, the Federal Reserve was to publish its Beige Book

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Forex - AUD/USD rises after Australian consumer sentiment data

Forexpros - The Australian dollar rose against its U.S. counterpart on Wednesday, after upbeat Australian consumer sentiment data, although global growth concerns continued to weigh on market sentiment.

AUD/USD hit 1.0237 during European morning trade, the daily high; the pair subsequently consolidated at 1.0239, rising 0.32%.

The pair was likely to find support at 1.0150, the low of October 8 and resistance at 1.0300, the high of September 2.

In a report, the Westpac Banking Corporation said that consumer sentiment in Australia rose 1% in October, after a 1.60% inrease the previous month.

Meanwhile, sentiment remained under pressure after the International Monetary Fund cut global economic growth forecasts for 2012 and 2013 on Tuesday, justifying the recent round of central bank stimulus which aimed to support to the world's fragile economies.

Earlier in the day, the IMF said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Markets were also jittery amid uncertainty over when Spain will request a sovereign bailout and when Greece will agree with its international lenders on terms for the next tranche of funds.

Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.43%, to hit 1.2572.

Later in the day, the Federal Reserve was to publish its Beige Book.

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Forex - EUR/USD slips lower as Spain uncertainty continues

Forexpros - The euro slipped lower against the U.S. dollar on Wednesday, as uncertainty over whether Spain will request a bailout dampened investor demand for the single currency.

EUR/USD hit 1.2836 during early European trade, the pair’s lowest since October 1; the pair subsequently consolidated at 1.2873, sliding 0.09%.

The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.

The euro remained under pressure amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

The single currency was lower against the pound and the yen, with EUR/GBP inching down 0.14% to 0.8040 and EUR/JPY dipping 0.04% to 100.78.

Later in the day, Italy was to auction EUR11 billion of short-term government bonds. The country was also to publish official data on industrial production. In addition, Spanish Prime Minister Mariano Rajoy was to hold talks with French President Francois Hollande in Paris

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Forex - Dollar gains on mounting global growth concerns

Forexpros - The dollar rose against most major currencies on Wednesday as fears grew the global economy continues to cool after the International Monetary Fund trimmed growth forecasts for the world economy.

In Asian trading on Wednesday, EUR/USD was down 0.11% at 1.2872.

The International Monetary Fund reported earlier that the global economy will expand 3.3% this year and 3.6% in 2013.

Both forecasts represent downward revisions from July's calls for 3.5% growth this year and 3.9% in 2013.

The downward revisions sparked demand for the safe-haven dollar amid a global risk-off trading session.

The euro and other higher-yielding currencies fell after investors sold and jumped to the sidelines ahead of the release of French and Italian industrial production data.

Uncertainty elsewhere in Europe also kept investors in the safety of the greenback.

Protestors clashed with police in Athens to mark German Chancellor Angela Merkel's visit to Greece, as the German leader urged Greeks to stick with austerity measures, adding the country will be better off in the long run.

Uncertainty over whether Spain will seek a bailout made the liquid dollar an attractive safe haven even more.

The dollar also saw gains against the euro and elsewhere as investors sold stocks and braced for U.S. third-quarter earnings, which hit the wire beginning this week.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.03% at 1.5998.

The dollar was flat against the yen, with USD/JPY trading unchanged at 78.25 and up against the Swiss franc, with USD/CHF trading up 0.09% at 0.9411.

The dollar was largely up against its cousins in Canada, Australia and New Zealand, with USD/CAD trading up 0.09% at 0.9792, AUD/USD unchanged at 1.0207 and NZD/USD trading down 0.29% at 0.8156.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% at 80.16.

In the U.S. later Wednesday, the Federal Reserve is to publish its Beige Book, which outlines current economic conditions

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Forex - EUR/JPY drops on IMF forecast cuts, braces for output data

Forexpros - The euro dipped against the yen on Wednesday after the International Monetary Fund announced a decision to cut its 2012 and 2013 global growth forecasts, which sparked demand for safe-haven currencies.

The single currency traded lower also as investors braced for Italian and French industrial production data.

In Asian trading on Wednesday, EUR/JPY hit 100.73, down 0.11%, up from a low of 100.54 and off a high of 100.79.

The pair sought to test support at 100.49, Tuesday's low, and resistance at 101.84, Tuesday's high.

The International Monetary Fund said that the global economy will expand 3.3% this year and 3.6% in 2013.

Both forecasts represent downward revisions from July's calls for 3.5% growth this year and 3.9% in 2013.

The downward revisions sparked demand for the safe-haven dollar and yen, which sent the euro falling.

The euro also fell as investors jumped to the sidelines ahead of the release of French and Italian industrial production data.

Uncertainty elsewhere also kept investors in the safety of the yen.

Protestors clashed with police in Athens to mark German Chancellor Angela Merkel's visit to Greece, as the German leader urged Greeks to stick with austerity measures, adding the country will be better off in the long run.

Uncertainty over whether Spain will seek a bailout kept the euro down as well.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.09%  at 0.8044 and EUR/CAD trading down 0.08% at 1.2597.

In the U.S. on Wednesday, the Federal Reserve is to publish its Beige Book, which outlines current economic conditions

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U.S. dollar remains steady to lower on euro zone anticipation

Forexpros - The U.S. dollar was steady against its rivals Wednesday, as investors remained on the sidelines while they awaited fresh developments in the euro zone.

During European afternoon trade, the dollar was slightly lower against the euro, with  EUR/USD gaining 0.05% to 1.2892.

Market participants remained cautious amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Earlier in the day, the International Monetary Fund said the crisis in the euro zone remains the greatest threat to the global economy and warned that policymakers need to urgently strengthen fiscal and financial ties within the euro area.

Meanwhile, concerns over whether international creditors will extend loans to Greece continued, as the country struggles to meet deficit reduction targets.

The greenback was steady close to a one-month high against the pound, with GBP/USD inching up 0.03% to 1.6008.

Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

Elsewhere, the greenback was fractionally higher against the yen, with USD/JPY edging up 0.10% to 78.33, but edged lower against the Swiss franc, with  USD/CHF easing down 0.06% to 0.9396.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with  USD/CAD inching down 0.01% to 0.9781,  AUD/USDclimbing 0.41% to 1.0247 and  NZD/USD edging up 0.04% to 0.8182.

The Australian dollar found support after the country’s treasury auctioned AUD4 billion in government debt earlier in the day.

Separately, a report by Westpac and the Melbourne Institute showed that Australian consumer sentiment improved only modestly in October, despite three interest rate cuts in the past six months by the country’s central bank.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gave back 0.06% to 80.05.

Trade was expected to remain subdued on Wednesday, with no major economic data releases on the calendar

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Forex - EUR/USD drops as S&P cuts Spain's ratings anew

Forexpros - The euro traded lower against the dollar on Thursday after Standard & Poor's downgraded Spain for the third time this year and slapped a negative outlook on the country.

In Asian trading on Thursday, EUR/USD was trading down 0.14% at 1.2857, up from a session low of 1.2856, and off from a high of 1.2860.

The pair was likely to find near-term support at 1.2802, the low of October 1 and resistance at 1.2990, Tuesday’s high.

Standard & Poor's said it lowered Spain's long-term credit rating to 'BBB-' from 'BBB+' and cut its short-term credit rating to 'A-3' from 'A-2'.

The ratings agency said Spain's deepening economic recession is limiting the Spanish government's policy options and added that rising unemployment and spending constraints are likely to fuel social discontent and contribute to friction between Spain's central and regional governments.

"In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining," Standard & Poor's said in a statement.

Elsewhere, uncertainty as to whether Spain will request a bailout kept the euro lower as well, all helping to offset French and Italian industrial production figures, which beat expectations.

Italian industrial production rose unexpectedly in August.

In a report, Istat said that Italian industrial production rose to 1.7% in August from -0.1% in July, whose figure was revised up from -0.2%.

Analysts had expected Italian industrial production to fall -0.4% last month.

French industrial output rose unexpectedly in August as well.

In a report, INSEE said that French industrial production rose to 1.5% in August from 0.6% in July, whose figure was revised up from 0.2%.

Analysts had expected French industrial production to fall -0.2% last month.

Meanwhile, IMF statements pointing to the European debt crisis as the global economy's strongest headwind fueled the euro sell-off early in Asian trading as well.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.14% at 0.8033, and EUR/JPY trading down 0.30% at 100.37.

Later Thursday, the ECB is to publish its monthly bulletin, with analyzes current and future economic conditions from the bank’s perspective.

The U.S. will release government data on the trade balance, initial jobless claims, import prices and crude oil stockpiles.

Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo

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Forex - AUD/USD gains on solid Australian jobs data

Forexpros - The Australian dollar rose against the greenback on Thursday after the government revealed the country added more jobs than expected in September.

In Asian trading on Thursday, AUD/USD hit 1.0252, up 0.17%, up from a session low of 1.0219 and off from a high of 1.0266.

The pair was likely to test support at 1.0185, Wednesday's low, and resistance at 1.0275, Friday's  high.

The number of employed people in the country rose by 14,500 last month, the most since May, the Australian Bureau of Statistics reported.

Australia’s unemployment rate rose a little more than expected last month, mainly because more jobless workers began searching for employment, thus jumping back into the labor market.

Only unemployed workers who are actively seeking work can be considered part of the labor market, and when more resume job searches, the participation rate rises and with it, so does the percentage of unemployed workers.

The statistics bureau reported that Australia's unemployment rate rose to a seasonally adjusted 5.4%, from 5.1% in August.

Analysts had expected Australian unemployment rate to rise to 5.3% last month.

The Australian dollar, meanwhile was up against the euro and up against the yen, with EUR/AUD down 0.48% at 1.2522 and AUD/JPY up 0.03% at 80.04.

Later Thursday, the U.S. will release government data on the trade balance, initial jobless claims, import prices and crude oil stockpiles.

Also Thursday, finance ministers and central bankers from the G7 group of industrialized nations are due to hold talks in Tokyo

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Forex - Dollar gains on Standard & Poor\'s Spanish downgrade, Japan data

Forexpros - The dollar rose against most major currencies on Thursday after the Standard & Poor's ratings agency downgraded Spain, sending investors seeking safety in the dollar.

In Asian trading on Thursday, EUR/USD was down 0.33% at 1.2833.

Standard & Poor's said it lowered Spain's long-term credit rating to 'BBB-' from 'BBB+' and cut its short-term credit rating to 'A-3' from 'A-2'.

The ratings agency said Spain's deepening economic recession is limiting the Spanish government's policy options and added that rising unemployment and spending constraints are likely to fuel social discontent and contribute to friction between Spain's central and regional governments.

"In our view, the capacity of Spain's political institutions (both domestic and multilateral) to deal with the severe challenges posed by the current economic and financial crisis is declining," Standard & Poor's said in a statement.

The news sparked demand for the dollar, which sent higher-yielding currencies dipping in the Asian session.

Meanwhile, IMF statements pointing to the European debt crisis as the global economy's strongest headwind fueled a risk-off trading session that sent the dollar up.

Monetary stimulus programs underway at the Federal Reserve have already been priced in and are no longer weakening the dollar as much as in previous sessions.

The U.S. Federal Reserve is currently running a third round of quantitative easing, a monetary stimulus tool that sees the U.S. central bank buy USD40 billion in mortgage-backed securities a month on an open-ended basis to spur recovery.

Such policy tools weaken the greenback.

Japanese data pushed the greenback up as well.

Japan's Economic and Social Research Institute reported earlier that Japan’s core machinery orders fell 3.3% in August after rising 4.6% in July.

Analysts had expected the country's core machinery orders to fall 2.5% in August.

The dollar dipped against its Australian counterpart.

The number of employed people in Australia rose by 14,500 last month, the most since May, the Australian Bureau of Statistics reported, well above analysts' forecasts for 3,800 new jobs.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.06% at 1.5996.

The dollar was down against the yen, with USD/JPY trading down 0.14% at 78.08 and up against the Swiss franc, with USD/CHF trading up 0.22% at 0.9410.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading up 0.11% at 0.9829, AUD/USD up 0.17% at 1.0252 and NZD/USD trading down 0.02% at 0.8162.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.32% at 80.25.

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Forex - EUR/USD lower after Spain ratings downgrade

Forexpros - The euro fell to an eight-day low against the U.S. dollar on Thursday, after ratings agency Standard & Poor’s downgraded Spain’s credit rating to one notch above junk status amid ongoing uncertainty over a full-scale bailout for Spain.

EUR/USD hit 1.2826 during early European trade, the pair’s lowest since October 1; the pair subsequently consolidated at 1.2862, slipping 0.09%.

The pair was likely to find support at 1.2802, the low of October 1 and resistance at 1.2912, Wednesday’s high.

S&P cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing “mounting risks to Spain’s public finances.”

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody’s, which downgraded Spain in June.

Sentiment on the euro has been hit by ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.

The euro was weaker against the pound and the yen, with EUR/GBP down 0.14% to 0.8032 and EUR/JPY falling 0.28% to 100.37.

Later in the day, the European Central Bank was to publish its monthly bulletin. The U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.

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Forex - AUD/USD rises to 7-day high on Australian jobs data

Forexpros - The Australian dollar rose to a seven-day high against its U.S. counterpart on Thursday, after the release of positive Australian employment data, while concerns over the handling of the euro zone's debt crisis remained.

AUD/USD hit 1.0287 during Europeam morning trade, the pair's highest since October 2; the pair subsequently consolidated at 1.0281, climbing 0.43%.

The pair was likely to find support at 1.0185, Wednesday's low and resistance at 1.0354, the high of August 31.

Official data showed that Australia's economy added 14,500 jobs in September, far more than the expected 3,800 increase, following a 9,100 decline in jobs the previous month.

Australia's unemployment rate rose more-than-expected in September however, ticking up to 5.4% from 5.1%. Analysts had expected the unemployment rate to rise to 5.3% last month.

Meanwhile, euro zone debt concerns persisted after ratings agency Standard & Poor's cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing "mounting risks to Spain’s public finances."

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody's, which downgraded Spain in June.

Markets were also jittery amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.47%, to hit 1.2522.

Later in the day, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles

Read more »

Forex - NZD/USD higher, gains limited by E.Z. concerns

Forexpros - The New Zealand dollar was higher against its U.S. counterpart on Thursday, but gains were limited as sustained global growth concerns and fears over the handling of the euro zone's financial crisis continued to dominate market sentiment.

NZD/USD hit 0.8182 during European morning trade, the daily high; the pair subsequently consolidated at 0.8180, adding 0.20%.

The pair was likely to find support at 0.8147, the low of August 7 and resistance at 0.8238, the high of October 9.

Euro zone debt concerns persisted after ratings agency Standard & Poor's cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing "mounting risks to Spain’s public finances."

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody's, which downgraded Spain in June.

Markets were also jittery amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

The kiwi was lower against the Australian dollar with AUD/NZD rising 0.22%, to hit 1.2562.

Also Thursday, official data showed that Australia's economy added 14,500 jobs in September, far more than the expected 3,800 increase, following a 9,100 decline in jobs the previous month.

Australia's unemployment rate rose more-than-expected in September however, ticking up to 5.4% from 5.1%. Analysts had expected the unemployment rate to rise to 5.3% last month.

Later in the day, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles.

Read more »

Forex - USD/JPY slips but downside seen limited

Forexpros - The U.S. dollar slipped lower against the yen on Thursday, but losses looked likely to remain limited ahead of a meeting of the leaders of the G7 group, where the strong yen was likely to be on the agenda.

USD/JPY hit 77.95 during European morning trade, the pair’s lowest since October 1; the pair subsequently consolidated at 78.07, shedding 0.14%.

The pair was likely to find support at 77.78, the low of October 1 and resistance at 78.21, the session high.

Bank of Japan Governor Masaaki Shirakawa said Thursday that he would raise the issue of the impact of the yen’s appreciation on the nation’s economy at the upcoming G7 meeting in Tokyo.

The minutes of the BoJ’s September meeting published earlier indicated that some policymakers were leaning towards more aggressive easing measures, boosting expectations that the central bank may ease policy again later this month.

The BoJ increased the size of its asset purchase program by JPY10 trillion last month.

Meanwhile, official data showed that machinery orders fell for the first time in three months in August, underlining concerns over Japan’s fragile economic recovery.

Core machinery orders fell by 3.3% from July, compared to expectations for a2.5% decline.

Separate reports showed that core consumer prices fell for the fourth successive month in August, while industrial production was lower for the third consecutive month.

The yen was higher against the euro, with EUR/JPY down 0.15% to 100.51.

The single currency remained under pressure after ratings agency Standard & Poor’s downgraded Spain’s credit rating to one notch above junk status late Wednesday, amid ongoing uncertainty over Spain’s position on requesting a bailout

Read more »

Forex - GBP/USD off 1-month low but seen struggling

Forexpros - The pound eased off a one-month low against the U.S. dollar on Thursday, but gains looked likely to remain limited as a combination of concerns over global growth and uncertainty over Spain weighed on market sentiment.

GBP/USD hit 1.6029 during European morning trade, the session high; the pair subsequently consolidated at 1.6018, easing up 0.08%.

Cable was likely to find near-term support at 1.5975, Wednesday’s low and a one-month low and resistance at 1.6082, the high of September 11.

Pressure on Spain to seek a bailout mounted after ratings agency Standard & Poor’s cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.

Sterling remained under pressure after a recent string of soft economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

The pound was little changed against the euro, with EUR/GBP dipping 0.02% to 0.8041.

Later Thursday, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles

Read more »

Forex - EUR/USD lower after Spain ratings downgrade

Forexpros - The euro fell to an eight-day low against the U.S. dollar on Thursday, after ratings agency Standard & Poor’s downgraded Spain’s credit rating to one notch above junk status amid ongoing uncertainty over a full-scale bailout for Spain.

EUR/USD hit 1.2826 during early European trade, the pair’s lowest since October 1; the pair subsequently consolidated at 1.2862, slipping 0.09%.

The pair was likely to find support at 1.2802, the low of October 1 and resistance at 1.2912, Wednesday’s high.

S&P cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing “mounting risks to Spain’s public finances.”

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody’s, which downgraded Spain in June.

Sentiment on the euro has been hit by ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.

The euro was weaker against the pound and the yen, with EUR/GBP down 0.14% to 0.8032 and EUR/JPY falling 0.28% to 100.37.

Later in the day, the European Central Bank was to publish its monthly bulletin. The U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles.

Read more »

Forex - AUD/USD rises to 7-day high on Australian jobs data

Forexpros - The Australian dollar rose to a seven-day high against its U.S. counterpart on Thursday, after the release of positive Australian employment data, while concerns over the handling of the euro zone's debt crisis remained.

AUD/USD hit 1.0287 during Europeam morning trade, the pair's highest since October 2; the pair subsequently consolidated at 1.0281, climbing 0.43%.

The pair was likely to find support at 1.0185, Wednesday's low and resistance at 1.0354, the high of August 31.

Official data showed that Australia's economy added 14,500 jobs in September, far more than the expected 3,800 increase, following a 9,100 decline in jobs the previous month.

Australia's unemployment rate rose more-than-expected in September however, ticking up to 5.4% from 5.1%. Analysts had expected the unemployment rate to rise to 5.3% last month.

Meanwhile, euro zone debt concerns persisted after ratings agency Standard & Poor's cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing "mounting risks to Spain’s public finances."

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody's, which downgraded Spain in June.

Markets were also jittery amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Elsewhere, the Aussie was higher against the euro with EUR/AUD shedding 0.47%, to hit 1.2522.

Later in the day, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles.

Read more »

Forex - NZD/USD higher, gains limited by E.Z. concerns

Forexpros - The New Zealand dollar was higher against its U.S. counterpart on Thursday, but gains were limited as sustained global growth concerns and fears over the handling of the euro zone's financial crisis continued to dominate market sentiment.

NZD/USD hit 0.8182 during European morning trade, the daily high; the pair subsequently consolidated at 0.8180, adding 0.20%.

The pair was likely to find support at 0.8147, the low of August 7 and resistance at 0.8238, the high of October 9.

Euro zone debt concerns persisted after ratings agency Standard & Poor's cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing "mounting risks to Spain’s public finances."

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody's, which downgraded Spain in June.

Markets were also jittery amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

The kiwi was lower against the Australian dollar with AUD/NZD rising 0.22%, to hit 1.2562.

Also Thursday, official data showed that Australia's economy added 14,500 jobs in September, far more than the expected 3,800 increase, following a 9,100 decline in jobs the previous month.

Australia's unemployment rate rose more-than-expected in September however, ticking up to 5.4% from 5.1%. Analysts had expected the unemployment rate to rise to 5.3% last month.

Later in the day, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles

Read more »

Forex - USD/JPY slips but downside seen limited

Forexpros - The U.S. dollar slipped lower against the yen on Thursday, but losses looked likely to remain limited ahead of a meeting of the leaders of the G7 group, where the strong yen was likely to be on the agenda.

USD/JPY hit 77.95 during European morning trade, the pair’s lowest since October 1; the pair subsequently consolidated at 78.07, shedding 0.14%.

The pair was likely to find support at 77.78, the low of October 1 and resistance at 78.21, the session high.

Bank of Japan Governor Masaaki Shirakawa said Thursday that he would raise the issue of the impact of the yen’s appreciation on the nation’s economy at the upcoming G7 meeting in Tokyo.

The minutes of the BoJ’s September meeting published earlier indicated that some policymakers were leaning towards more aggressive easing measures, boosting expectations that the central bank may ease policy again later this month.

The BoJ increased the size of its asset purchase program by JPY10 trillion last month.

Meanwhile, official data showed that machinery orders fell for the first time in three months in August, underlining concerns over Japan’s fragile economic recovery.

Core machinery orders fell by 3.3% from July, compared to expectations for a2.5% decline.

Separate reports showed that core consumer prices fell for the fourth successive month in August, while industrial production was lower for the third consecutive month.

The yen was higher against the euro, with EUR/JPY down 0.15% to 100.51.

The single currency remained under pressure after ratings agency Standard & Poor’s downgraded Spain’s credit rating to one notch above junk status late Wednesday, amid ongoing uncertainty over Spain’s position on requesting a bailout

Read more »

Forex - GBP/USD off 1-month low but seen struggling

Forexpros - The pound eased off a one-month low against the U.S. dollar on Thursday, but gains looked likely to remain limited as a combination of concerns over global growth and uncertainty over Spain weighed on market sentiment.

GBP/USD hit 1.6029 during European morning trade, the session high; the pair subsequently consolidated at 1.6018, easing up 0.08%.

Cable was likely to find near-term support at 1.5975, Wednesday’s low and a one-month low and resistance at 1.6082, the high of September 11.

Pressure on Spain to seek a bailout mounted after ratings agency Standard & Poor’s cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.

Sterling remained under pressure after a recent string of soft economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

The pound was little changed against the euro, with EUR/GBP dipping 0.02% to 0.8041.

Later Thursday, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles

Read more »

Dollar slightly lower but remains supported

Forexpros - The U.S. dollar was modestly lower against the other major currencies on Thursday, but overall market sentiment remained subdued following a ratings cut on Spain by Standard & Poor’s, while worries over the global economic outlook also weighed.

During European morning trade, the dollar was slightly lower against the euro, with EUR/USD easing up 0.09% to 1.2885.

Pressure on Spain to seek a bailout mounted after ratings agency S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

Earlier Thursday, Italy saw borrowing costs rise to the highest level since mid-July at an auction of three-year government bonds, reflecting unease over the risk of contagion from Spain.

The euro remained supported after International Monetary Fund head Christine Lagarde said struggling euro zone members such as Greece and Spain should be given more time to cut their budget deficits.

The greenback was hovering close to a one-month high against the pound, with GBP/USD inching up 0.08% to 1.6017.

Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY slipping 0.11% to 78.10 and USD/CHF down 0.21% to 0.9371.

The minutes of the Bank of Japan’s September meeting published earlier indicated that some policymakers were leaning towards more aggressive easing measures, boosting expectations that the central bank may ease policy again later this month.

The BoJ increased the size of its asset purchase program by JPY10 trillion last month.

Meanwhile, official data showed that machinery orders fell for the first time in three months in August, underlining concerns over Japan’s fragile economic recovery.

The greenback was broadly weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD losing 0.22% to trade at 0.9795, AUD/USD climbing 0.44% to 1.0279 and NZD/USD up 0.22% to 0.8182.

The Australian dollar found support after official data showed that the country’s economy added 14,500 jobs in September, easily beating expectations for an increase of 3,800.

The country’s unemployment rate ticked up to 5.4% in September, against expectations for an increase to 5.3%, from 5.1% in August.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.03% to 80.02.

Later Thursday, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims and crude oil stockpiles

Read more »

Forex - USD/CHF slips but remains supported by Spain worries

Forexpros - The U.S. dollar was lower against the Swiss franc on Thursday, but remained supported as concerns over the handling of Spain's sovereign debt crisis continued to dominate market attention.

USD/CHF hit 0.9366 during European morning trade, the pair's lowest since October 9; the pair subsequently consolidated at 0.9367, falling 0.27%.

The pair was likely to find support at 0.9324, the low of October 9 and resistance at 0.9432, Wednesday's high.

Euro zone debt concerns persisted after ratings agency Standard & Poor's cut its rating on Spain to BBB-minus from BBB-plus with a negative outlook late Wednesday, citing "mounting risks to Spain’s public finances."

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The move brought S&P into line with Moody's, which downgraded Spain in June.

Markets were also jittery amid ongoing uncertainty over Spain’s position on requesting external financial aid and what form a bailout would take.

Elsewhere, the Swissie was higher against the euro with EUR/CHF edging down 0.11%, to hit 1.2079.

Also Thursday, Italy saw borrowing costs rise to the highest level since mid-July at an auction of three-year government bonds, reflecting unease over the risk of contagion from Spain.

Later in the day, the U.S. was to publish government data on the trade balance, in addition to official data on initial jobless claims, import prices and crude oil stockpiles

Read more »

Forex - USD/CHF down during Asian trade

Forexpros - The U.S. Dollar was lower against the Swiss Franc on Friday.

USD/CHF was trading at 0.9353, down 0.01% at time of writing.

The pair was likely to find support at 0.9311, Monday’s low, and resistance at 0.9432, Wednesday’s high.

Meanwhile, the U.S. Dollar was down against the Euro and up against the Japanese Yen, with EUR/USD gaining 0.001% to hit 1.2928 and USD/JPY rising 0.06% to hit 78.39

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Forex - EUR/GBP up during the Asian session

Forexpros - The Euro was higher against the British Pound on Friday.

EUR/GBP was trading at 0.8066, up 0.09% at time of writing.

The pair was likely to find support at 0.8023, Thursday’s low, and resistance at 0.8099, Tuesday’s high.

Meanwhile, the Euro was down against the U.S. Dollar and up against the Japanese Yen, with EUR/USD shedding 0.001% to hit 1.2928 and EUR/JPY rising 0.08% to hit 101.36

Read more »

Forex - USD/JPY up during Asian trade

Forexpros - The U.S. Dollar was higher against the Japanese Yen on Friday.

USD/JPY was trading at 78.40, up 0.08% at time of writing.

The pair was likely to find support at 77.95, Thursday’s low, and resistance at 78.71, Monday’s high.

Meanwhile, the U.S. Dollar was down against the Euro and up against the British Pound, with EUR/USD gaining 0.001% to hit 1.2928 and GBP/USD falling 0.11% to hit 1.6028.

Read more »

Forex - USD/CAD up in Asian trading hours

Forexpros - The U.S. Dollar was higher against the Canadian Dollar on Friday.

USD/CAD was trading at 0.9788, up 0.02% at time of writing.

The pair was likely to find support at 0.9745, Tuesday’s low, and resistance at 0.9835, Thursday’s high.

Meanwhile, the U.S. Dollar was down against the Euro and up against the British Pound, with EUR/USD gaining 0.001% to hit 1.2929 and GBP/USD falling 0.09% to hit 1.6031.

Read more »

Forex - AUD/USD up during Asian trade

Forexpros - The Australian Dollar was higher against the U.S. Dollar on Friday.

AUD/USD was trading at 1.0286, up 0.21% at time of writing.

The pair was likely to find support at 1.0150, Monday’s low, and resistance at 1.0294, Thursday’s high.

Meanwhile, the Australian Dollar was up against the Euro and the Japanese Yen, with EUR/AUD shedding 0.12% to hit 1.2580 and AUD/JPY rising 0.33% to hit 80.67.

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Forex - EUR/JPY up during Asian trade

Forexpros - The Euro was higher against the Japanese Yen on Friday.

EUR/JPY was trading at 101.54, up 0.27% at time of writing.

The pair was likely to find support at 100.15, Thursday’s low, and resistance at 102.45, Monday’s high.

Meanwhile, the Euro was up against the U.S. Dollar and the British Pound, with EUR/USD gaining 0.11% to hit 1.2942 and EUR/GBP rising 0.06% to hit 0.8063

Read more »

Forex - GBP/JPY up during the Asian session

Forexpros - The British Pound was higher against the Japanese Yen on Friday.

GBP/JPY was trading at 125.93, up 0.19% at time of writing.

The pair was likely to find support at 124.75, Thursday’s low, and resistance at 127.01, Monday’s high.

Meanwhile, the British Pound was up against the U.S. Dollar and down against the Euro, with GBP/USD gaining 0.01% to hit 1.6048 and EUR/GBP rising 0.08% to hit 0.8064

Read more »

Forex - EUR/USD up in Asian trade

Forexpros - The Euro was higher against the U.S. Dollar on Friday.

EUR/USD was trading at 1.2936, up 0.06% at time of writing.

The pair was likely to find support at 1.2826, Thursday’s low, and resistance at 1.3015, Monday’s high.

Meanwhile, the Euro was up against the British Pound and the Japanese Yen, with EUR/GBP gaining 0.02% to hit 0.8060 and EUR/JPY rising 0.14% to hit 101.41

Read more »

Forex - USD/CAD hits session low after Canadian, U.S. data

Forexpros - The U.S. dollar fell to a session low against the Canadian dollar on Thursday, after official data showed that U.S. jobless claims fell to their lowest level since February 2008 last week and better-than-expected Canadian trade data.

USD/CAD hit 0.9764 during early U.S. trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 0.9771, shedding 0.46%.

The pair was likely to find near-term support at 0.9734, the low of October 5 and resistance at 0.9833, the session high and a one-week high.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.

The previous week’s figure was revised up to 369,000 from a previously reported 367,000.

A separate report showed that the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.

In Canada, official data showed that the trade deficit narrowed to CAD1.3 billion in August, compared to expectations for a deficit of CAD2.0 billion.


Overall market sentiment was buoyed by hopes that a ratings downgrade on Spain by Standard & Poor’s would force Madrid to formally request a bailout, which investors hope will ease the debt crisis in the euro zone.

S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD inching up 0.02% to 1.2642.

Later in the session, the U.S. was to release official data on crude oil stockpiles.

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Dollar broadly lower after U.S. jobless claims fall to multi-year low

Forexpros - The U.S. dollar hit a session high against the yen on Thursday and turned broadly lower against the other major currencies, after official data showed that U.S. initial jobless claims fell to their lowest level since February 2008 last week.

During European afternoon trade, the dollar extended gains against the yen, with USD/JPY up 0.42% to 78.50.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.

The previous week’s figure was revised up to 369,000 from a previously reported 367,000.

A separate report showed that the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.

Earlier Thursday, the minutes of the Bank of Japan’s September meeting indicated that some policymakers were leaning towards more aggressive easing measures, boosting expectations that the central bank may ease policy again later this month.

The BoJ increased the size of its asset purchase program by JPY10 trillion last month.

The dollar was lower against the euro, with EUR/USD rising 0.41% to 1.2927.

The euro remained supported amid hopes that a ratings downgrade on Spain by Standard & Poor’s would force Madrid to formally request a bailout, which investors hope will ease the debt crisis in the euro zone.

Elsewhere, the greenback was lower against the pound and the Swiss franc, with GBP/USD climbing 0.26% to 78.50 and USD/CHF down 0.50% to 0.9344.

The greenback extended losses against its Canadian, Australian and New Zealand counterparts, with USD/CAD falling 0.54% to 0.9764, AUD/USD climbing 0.51% to 1.0286 and NZD/USD up 0.31% to 0.8188.

In Canada, official data showed that the trade deficit narrowed to CAD1.3 billion in August, compared to expectations for a deficit of CAD2.0 billion.

The Australian dollar remained supported after official data showed that the country’s economy added 14,500 jobs in September, easily beating expectations for an increase of 3,800.

The country’s unemployment rate ticked up to 5.4% in September, against expectations for an increase to 5.3%, from 5.1% in August.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.20% to 79.84.

Later in the session, the U.S. was to release official data on crude oil stockpiles.

Read more »

Forex - USD/JPY erases losses, hits 3-day high

Forexpros - The U.S. dollar erased losses against the yen on Thursday, rising to a three-day high as upbeat U.S. jobless data and hopes for an imminent bailout request from Spain lifted market sentiment.

USD/JPY pulled away from 77.95, the pair's lowest since October 1, to hit 78.51 during European afternoon trade, rising 0.42%.

The pair was likely to find support at 77.79, the low of October 1 and resistance at 78.71, the high of October 8.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.

The previous week’s figure was revised up to 369,000 from a previously reported 367,000.

A separate report showed that the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.

Sentiment was also boosted by optimism that a downgrade on Spain by ratings agency Standard & Poor’s would force the country into requesting a formal bailout.

S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

Elsewhere, the yen was lower against the euro with EUR/JPY adding 0.19%, to hit 100.86.

Also Thursday, Bank of Japan Governor Masaaki Shirakawa said he would raise the issue of the impact of the yen’s appreciation on the nation’s economy at the upcoming G7 meeting in Tokyo.

The minutes of the BoJ’s September meeting published earlier indicated that some policymakers were leaning towards more aggressive easing measures, boosting expectations that the central bank may ease policy again later this month.

Read more »

Forex - GBP/USD holds gains after robust U.S. jobs data

Forexpros - The pound held gains against the U.S. dollar on Thursday, after official data showed that the number of people making initial jobless claims in the U.S. fell far more than forecast last week.

GBP/USD hit 1.6054 during European afternoon trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.6040, up 0.22%.

Cable was likely to find support at 1.5975, Wednesday’s low and a one-month low and resistance at 1.6105, the high of September 12.

 The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.

The previous week’s figure was revised up to 369,000 from a previously reported 367,000.

The pound found support earlier in the session after a ratings downgrade on Spain by Standard & Poor’s fuelled hopes that the country would be forced to formally request a bailout, which investors hope will ease the debt crisis in the euro zone.

S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

Sentiment on sterling remained fragile after a recent string of soft U.K. economic data undermined hopes for a sustained economic recovery and kept alive speculation over the possibility of another round of easing by the Bank of England.

The pound was lower against the euro, with EUR/GBP up 0.19% to 0.8059.

Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports

Read more »

Forex - EUR/USD hits session high after U.S. jobless claims fallForexpros - The euro hit a session high against the U.S. dollar on Thursday, after official data showed that initial jobless claims fell significantly more-than-expected last week. EUR/USD hit 1.2935 during European afternoon trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.2925, gaining 0.38%. The pair was likely to find support at 1.2824, the session low and eight-day low and resistance at 1.2990, Tuesday’s high. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000. The previous week’s figure was revised up to 369,000 from a previously reported 367,000. Sentiment on the euro was also bolstered by optimism that a downgrade on Spain by ratings agency Standard & Poor’s would force the country into requesting a formal bailout. S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.” The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining. The euro extended gains against the pound and the yen, with EUR/GBP up 0.19% to 0.8059 and EUR/JPY rallying 0.89% to 101.55. Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports

Forexpros - The euro hit a session high against the U.S. dollar on Thursday, after official data showed that initial jobless claims fell significantly more-than-expected last week.

EUR/USD hit 1.2935 during European afternoon trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.2925, gaining 0.38%.

The pair was likely to find support at 1.2824, the session low and eight-day low and resistance at 1.2990, Tuesday’s high.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.

The previous week’s figure was revised up to 369,000 from a previously reported 367,000.

Sentiment on the euro was also bolstered by optimism that a downgrade on Spain by ratings agency Standard & Poor’s would force the country into requesting a formal bailout.

S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.

The euro extended gains against the pound and the yen, with EUR/GBP up 0.19% to 0.8059 and EUR/JPY rallying 0.89% to 101.55.

Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports

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US Dollar Classic Technical Report 10.05.2012

US DOLLAR INDEX: Prices put in a Bearish Engulfing candlestick pattern below resistance in the 9928-38 area, hinting a move lower is ahead. Initial rising trend line support is at 9810, with a break below that exposing the September 14 close at 9773. Alternatively, a push above resistance targets the top of a falling channel established from the June 1 swing high, now at 9962.

— Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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Malaysia could slash crude palm oil export tax-govt official

KUALA LUMPUR, Oct 4 (Reuters) - Malaysia could cut its crude palm oil export taxes to between 8-10 percent from the current 23 percent, a commodities ministry official said on Thursday, a move that could lend support to prices and stiffen competition for No.1 producer Indonesia.

The ministry will suggest the export policy revision during a cabinet meeting on Friday, the official said. The current export tax has not been changed since the 1970s.

"I think this will put us in a very much competitive position as the difference will be the same as Indonesia which has a 13.5 percent export tax," Bernard Dompok, the plantation industries and commodities minister, told reporters when asked about the proposed tax cut.

Analysts said the move could help support crude palm oil (CPO) prices.

"We believe the reduction in CPO export tax (if approved by the Cabinet) would help boost exports of CPO, hence reducing stockpiles and cushioning CPO price from falling further," said Malaysia's Hong Leong Investment Bank in a research note.

Palm oil suffered its biggest loss in nearly three years on Tuesday on the back of lacklustre shipments and growing stockpiles. It dropped 8.7 percent to 2,255 ringgit ($737) per tonne - its steepest daily drop since the 2008 financial crisis.
(Reporting By Anuradha Raghu; editing by Miral Fahmy)

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Aussie and Kiwi Lead, Yen Stable on BoJ; US Dollar Steady Ahead of NFPs

How similar the market looks today at this time as it did when this piece was written yesterday. As noted yesterday, “Price action has been mostly mixed on Thursday though trading in the pre-North American hours has resulted in a modest push upwards by high beta currencies and risk-correlated assets.” The only difference this time is that the European currencies are lagging, as the optimism for the move higher has not been European-centric but rather Asian-centric.

Curiously, there’s been little by way of data or central bank action that would suggest high beta currencies and risk-correlated assets should move higher: the Bank of Japan held its stimulus package at ¥55 trillion last night (as suggested in the Real Time News feed, the BoJ was not expected to change its program); and Australian construction data for September showed a drop in activity. It is thus possible that the rebound we’ve seen in the leading Australian and New Zealand Dollars could just be an unwinding of the negative sentiment that has dominated the market in recent weeks (re: China). Coupled with both majors sitting at crucial support levels, it has only take a little nudge to push them higher.

Overall, the markets are relatively calm ahead of the US cash equity open, with the Japanese Yen and US Dollar nearly even on the day, as market participants await the September labor market reading for the US. The Nonfarm Payrolls report due today is not drawing the same attention that previous reports have (for economic and political purposes: will the Federal Reserve ease more? Will NFPs influence the Presidential election?), though given the volatility that this report has generated in the past, we’re not discounting what could be the biggest market moving event of the week.

Taking a look at credit, peripheral European bond yields are lower, indicating potential support for the Euro. The Italian 2-year note yield has decreased to 2.162% (-5.3-bps) while the Spanish 2-year note yield has decreased to 3.122% (-7.6-bps). Similarly, the Italian 10-year note yield has decreased to 5.040% (-7.0-bps) while the Spanish 10-year note yield has decreased to 5.332% (-5.5-bps); lower yields imply higher prices.

RELATIVE PERFORMANCE (versus USD): 10:47 GMT

NZD: +0.33%

AUD:+0.08%

JPY:+0.03%

CAD:-0.04%

GBP:-0.04%

EUR:-0.05%

CHF: -0.11%

Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): -0.02% (-0.07% past 5-days)

ECONOMIC CALENDAR

The economic docket is supersaturated today, with key labor market readings from Canada and the United States scheduled to be released at 08:30 EDT / 12:30 GMT. First, the Canadian data: the CAD Net Change in Employment (SEP) was +10.0K in September, from +34.3K in August, which should keep the CAD Unemployment Rate (SEP) on hold at 7.3%. In terms of the US data: the USD Unemployment Rate (SEP) is expected to have ticked higher to 8.2% as jobs growth, as evidenced by the USD Change in Nonfarm Payrolls (SEP) report, is not strong enough to keep up with population growth and the rate of entrants to the labor market (even though the participation rate remains at or near all-time or multidecade lows for a number of key demographics, including middle-aged working class men). NFPs are expected to print +115K from +96K in August, which would come in above the trailing four-month average of +92.3K.

Later on in the day, close to the US cash equity close, the USD Consumer Credit (AUG) report is due, and should show that credit growth rebounded – which comes as no surprise given the seasonal influence of young adults returning to secondary educational institutions and new entrants to the labor market trying to make ends meet. Moreover, considering that wages adjusted for inflation have been steadily falling for the past several quarters, as a consumption-based economy, the only way US economic growth can remain positive amid lower disposable income is for consumers to use credit (take on debt).

TECHNICAL OUTLOOK

EURUSD: The strong performance yesterday cleared a number of important resistance levels, including the psychologically significant 1.3000. But considering that we’re still within prices we’ve seen over the past two-weeks, our key levels remain the same. Resistance comes in at 1.3030/35 (October high), 1.3145, and 1.3165/75 (September high). Support comes in at 1.3000, 1.2960/65 (5-EMA), 1.2890/95 (20-EMA), and 1.2820/30 (200-DMA, late-April swing high).

USDJPY: Yesterday I said “Today the USDJPY has held in the 78.40/60 zone, a level that was pivotal in August. With descending TL resistance overhead, further upside price action is likely capped.” Indeed, price is stuck in the same zone, which means our outlook is little changed. A daily close above 78.40/60 (50-EMA) suggests a move to 78.80/90 (100-DMA, descending trendline off of the April 20 and June 25 highs), and 79.20/30 (200-DMA, September high). Should price close at or below 78.40/60, support comes in at 78.10/20, 77.90, 77.65/70 (June 1 low),77.40/45 (September 28 low), and 77.10/15 (September low).

GBPUSD: The lack of follow through on the break from Wednesday led to a sharp rebound yesterday, with the GBPUSD closing back above major support at 1.6100/25 (20-EMA, descending trendline off of April 2011 and August 2011 highs, ascending trendline off of August 2 and August 31 lows). However, there’s been little progress today, so we think it is possible that there’s a healthy retest of the key support. A break below suggests a move to 1.5970/75 (former channel resistance off of June 20 and August 23 highs), and 1.5770/85 (late-August swing lows. Resistance comes in at 1.6260 (the former April swing highs by close) and 1.6300 /10 (September high).

AUDUSD: A bullish Outside Day yesterday after holding key support gives us a bias higher. However, the pair has run into resistance once support, at 1.0270 and 1.0255 today, the descending trendline off of the September 12, September 20, and September 26 lows. Resistance comes in at 1.0255/75, 1.0330, 1.0405/25 (mid-August swing lows), and 1.0470/85 (former intraday swing levels). Support comes in at 1.0160/75 (mid-July and early-September swing levels), 1.0100/10, and 1.0000.

SPX500: A push to the highs remains around the corners. “Since early-August, the 20-EMA has been strong support, with no two consecutive closes below occurring. We also note that over this time frame the daily RSI has not moved below 50.” Resistance comes in at 1475, and 1498/1504. Support comes in at 1458/60, 1445/47(20-EMA), 1425 (the 61.8% Fibo retracement on June 2012 low to September 2012 high), and 1423/25 (50-EMA).

GOLD: Gold is hovering in the crucial 1785/1805 resistance zone, and today’s NFPs could result in the break or the pullback to support. It is important to consider that the sharp ascending trendline off of the August 15 and August 31 lows has held, now reinforced by the 20-EMA at 1755/60, also former intraday swing lows throughout mid-September. If this resistance breaks, a move to 1840 shouldn’t be ruled out. Another failure at 1785/1805 would likely result in a pullback to 1750/55

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Forex - USD/CHF up during Asian trade

Forexpros - The U.S. Dollar was higher against the Swiss Franc on Friday.

USD/CHF was trading at 0.9310, up 0.05% at time of writing.

The pair was likely to find support at 0.9296, Thursday’s low, and resistance at 0.9438, Monday’s high.

Meanwhile, the U.S. Dollar was up against the Euro and down against the Japanese Yen, with EUR/USD shedding 0.02% to hit 1.3014 and USD/JPY falling 0.20% to hit 78.32

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Forex - USD/JPY down in Asian trading hours

Forexpros - The U.S. Dollar was lower against the Japanese Yen on Friday.

USD/JPY was trading at 78.39, down 0.12% at time of writing.

The pair was likely to find support at 77.79, Monday’s low, and resistance at 78.72, Thursday’s high.

Meanwhile, the U.S. Dollar was up against the Euro and down against the British Pound, with EUR/USD shedding 0.001% to hit 1.3016 and GBP/USD rising 0.02% to hit 1.6194

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