Daily Market News By FXNET

Trading Discussion News and Economy
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Fundamental Analysis August 8
EUR/USD moved by 3 focuses in front of today’s ECB declaration. The national bank is relied upon to hold rates and approach. The firecrackers will come amid Mr. Draghi’s question and answer session late in the exchanging day. ECB authorities have said quantitative maneuvering is a choice, however remarks by the bank’s German unexpected propose the bar may be high.

GBP/USD is holding at 1.6844 ahead of the BoE announcement. Policy makers will keep their asset-purchase target at 375 billion pounds, and the benchmark interest rate has been at 0.5 percent since March 2009. “As the economy normalizes, Bank Rate will need to start to rise in order to achieve the inflation target,” Carney said in a speech in Glasgow, Scotland, on July 23. “But the MPC has no pre-set course and the timing of any increases in interest rates will be determined by the data.”

AUD/USD tumbled to trade at 0.9256 while the US dollar held strong, after President Obama announced airstrikes in Iraq surprising the world. There was little reaction to the Chinese trade balance which printed in the green at 47.30 billion against expectations of 27.00 billion, although imports tumbled leaving questions about the Chinese recovery.

USD/JPY gave up 29 points this morning to trade at 101.80 as the yen surged on safe haven buying after the Americans announced an air offensive against ISIS in Iraq. President Barack Obama authorizes the U.S. military to conduct airstrikes against Islamist forces as needed but says the nation would not send new ground troops there.

Gold gave back some of yesterday’s gains to trade at 1305.40. Gold held on to overnight gains above $1,300 on Thursday, trading near its highest in more than a week as fears of Russian military action against Ukraine and retaliation by Moscow over Western sanctions burnished gold’s appeal as a safe haven.

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Forex Daily Analysis - 11 Aug 2014

EUR/USD recouped and included 27 focuses today, as German exchange offset numbers missed desires yet sends out for surpassed imports helping giving a superior take a gander at the report. The US dollar pushed higher against the euro and the pound on Thursday after the European Central Bank and the Bank of England left their financial stances unaltered in strategy surveys.

GBP/USD eased by 23 points to trade at 1.6809 and looks to break into the 1.67 range but the US dollar continued to weaken as traders worry about the US entering the war in Iraq after President Obama approved air strikes against ISIS. The pound was weighed down by disappointing trade balance numbers along with worries about Scotland leaving the United Kingdom

AUD/USD gained 6 points to trade at 0.9282 against a strong dollar. Traders this morning are correcting an overreaction late last week when the Aussie tumbled on global stress and a mixed up Chinese trade balance print. Positive data from China over the weekend helped support the currency.

USD/JPY gained 12 points as the yen declined after lackluster data and a dovish BoJ monthly report. The pair moved to trade at 102.16. The Bank of Japan on Friday maintained record stimulus after recent production and export data highlighted weakness that could challenge Governor Haruhiko Kuroda’s push to stoke faster inflation.

Gold is holding on to early morning gains trading at 1318.50 as geopolitical tensions are the only market focus after President Obama approved air strikes in Iraq and war returned to Gaza. Spot gold prices rose this morning on increasing safe haven bids and gained more than half a percent amid rising tensions in Iraq and Ukraine. Prices turned positive on reports that U.S. President Barack Obama approved air strikes and emergency relief airdrops to help 40,000 religious minorities in Iraq, who are trapped on a mountaintop after threats by Islamic militants.

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Forex Daily Analysis - 13 Aug 2014

EUR/USD given way today after German information hit the ropes. The euro tumbled to exchange at a 9 month low, falling 45 focuses to exchange at 1.3338. The euro slid Tuesday after a droop in German monetary notion further powered stresses that the financial standoff with Russia over the clash in Ukraine is harming Europe’s economy.german government obligation turned higher, while German shares falled behind a pickup in most local value markets.

GBP/USD eased by 8 points on the prospect of a disappointing UK jobs data to trade at 1.6778. BoE Governor Mark Carney will address the press after the inflation report, which is also going to be crucial for sterling. What follows is another important event – the second quarter GDP data, due on Friday. The UK claimant count is forecast to have dropped by 30,000 in July compared to the 36,300 drop recorded in June. Forecasters see the ILO unemployment rate for the three months to June at 6.4%, down from 6.5% in May.

AUD/USD eased by 3 points against the dollar rally. Strong data from Oz helped fight off the climbing US dollar. Australian house prices beat expectations along with the NAB business survey. The Australian dollar has stabilized following dramatic moves last week when the currency fell to two-month lows on the back of weaker-than-expected data and economic growth forecasts from the central bank.

USD/JPY climbed 13 points as traders moved away from safe haven trades leaving the JPY weak after a rash of disappointing economic data yesterday and last week as traders wait for the release on industrial production numbers. The US dollar surged 10 points in the morning session climbing to 81.61. On Monday, the US dollar rallied against the yen and euro after the unit plunged in the wake of last week’s announcement that Washington had authorized air strikes in Iraq.

Gold is moving between small gains and losses trading at 1311.60 but hugging the $1310 price level all day as geopolitical risks kept markets watchful. In Iraq, a new political crisis was brewing just days after Washington launched its first military action against insurgents from the Islamic State.

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Forex Daily Analysis - 14 Aug 2014

GBP/USD tumbled 103 focuses after remarks from Bank of England Governor to exchange at 1.6708 in the wake of hopping on better than anticipated employments information. The pound tumbled to a two-month low versus the dollar as merchants pushed back their desires for premium rate expands after the Bank of England cut its estimate for pay development. The British pound spiked quickly before tumbling.

AUD/USD added 13 points to trade at 0.9281 after a significant jump in consumer confidence. Weak economic data and a downbeat central bank statement dampened sentiment towards the Australian dollar recently, but one analyst told CNBC investors shouldn’t give up faith. The currency fell 2.6 percent from its July 1 year-to-date high of $0.9504 against the U.S. dollar to a two-month low of around $0.9236 last week amid rising unemployment and a weaker growth outlook.

USD/JPY gained 4 points to trade at 102.30 after Japanese GDP missed expectations. Gross domestic product shrunk by an annualized 6.8% in the three months ended June, Japan’s Cabinet Office said Wednesday. The result was actually better than the 7% contraction expected by economists. Government officials were more sanguine about Wednesday’s data. Economy Minister Akira Amari said the figure didn’t change the government’s outlook that the economy continues to improve steadily. He said the government would respond flexibly on the economy but added that he didn’t currently see a need to compile an additional budget.

Gold was directionless today, remaining flat in the Asian session and moving between small gains and losses during European trading to sell for 1310.20. The Federal Reserve is cutting debt purchases and contemplating interest-rate increases as the economy strengthens. The dollar was near a nine-month high versus the euro after data showed yesterday German investor confidence slumped and before a report today that may show U.S. retail sales increased for a sixth month.

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Fundamental Analysis August 15
EUR/USD recuperated 27 focuses to exchange at 1.3391 after a large number of blended information and a confounded ECB month to month report. The dollar gave back increases the greater part of the morning to trade at 81.53. Euro zone swelling will be weaker than long ago expected in the not so distant future and next, an overhauled review for the European Central Bank showed today, obscuring the euro zone’s monetary standpoint.

GBP/USD is flat today holding at 1.6691 after disappointing inflation information and comments from the central bank on Wednesday. The BoE lowered its growth estimate for U.K. wages to 1.25% for the year, down from 2.5%, or half of the previous estimate; 2015 wage growth estimates were also revised downward.

AUD/USD eased by 8 points to trade at 0.9298 after iron ore prices tumbled to their weakest this month weighing on the Aussie. Earlier in June, the iron ore price dropped to as low as $US89 a ton, but despite a minor rebound since then year-to-date falls are still over 30 per cent. The latest downward move comes amid continued oversupply in the market due to increased supply from heavyweights like BHP Billiton and Rio Tinto and softer demand from China.

USD/JPY continued to rise as the US dollar gained momentum as traders overlooked weak US data but focused on a significant drop in Japanese GDP. The USDJPY is trading at 102.60 up by 17 points this morning. The Japanese Yen traded on a negative note and depreciated around 0.2 percent yesterday on the back of expectation that global policy makers will keep borrowing costs low for longer, damping demand for haven assets. The Yen touched an intra-day low of 102.36.Japan’s Core Machinery Orders gained 8.8 percent in June as against a fall of 19.5 percent in June.

Gold is moving between small gains and losses holding at 1315.80. Gold consumption fell by an annualized 16 percent in the second quarter of 2014 as Chinese and Indian buyers cut back on record purchases a year earlier, sector data showed.

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Fundamental Analysis August 22
EUR/USD gained 8 points as traders breathed a sigh of relief when PMI numbers were not as bad as expected. The US dollar gave back some early gains but remains strong at 82.29. Data from Germany eased pressure on the struggling euro today after speculation of an earlier rate rise from the Federal Reserve had pushed the dollar to an 11-month high. Share markets had been feeling flat following a disappointing survey on Chinese manufacturing overnight but they too got a lift from the news that Germany’s private sector grew for a 16th month running in August.

GBP/USD is trading at 1.6588 down just 6 points after a strong retail sales release. The pound, down more than six cents in the past month, had gained a foothold on Wednesday after minutes from the Bank of England’s own last policy meeting showed the first dissenting votes on its policy committee for a rise in interest rates. But a similarly hawkish message from the Fed sent the dollar higher across the board after UK markets closed, driving the pound to less than $1.66 for the first time since early April.

AUD/USD lost 6 points to trade below 93 touching 0.9296 after a speech from RBA Governor Stevens. In Australia, the Reserve Bank Governor gave testimony to the House of Representatives Economics committee. In the US, weekly mortgage finance data is released with the minutes of the last Federal Reserve meeting.

Gold tumbled $13.60 to trade at 1281.60 as traders moved to more profitable assets. Gold extended losses to a fifth session on Thursday, dropping to a two-week low after the US dollar strengthened on indications from the US Federal Reserve that it could raise interest rates sooner than expected. A surprisingly strong recovery in the US job market could lead the Fed to raise interest rates earlier than it had been anticipating, minutes from the Fed’s July meeting showed, although most officials wanted further evidence before changing their view.

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Following a weak of depreciation the U.S. dollar finally saw some gains, and edged up against its competitors, adding close to one percent against the basket on six major currencies on Monday.

The Federal Reserve’s upcoming policy meeting has returned investors sights on the dollar, but the currency was mainly supported by the rise in U.S. debt yields. The 10-year U.S. Treasuries yield was up to 2.234 percent, helping the U.S. dollar recover from its steep declining following last week’s streak of disappointing data.

With the upcoming Fed meeting and Friday’s data release the U.S. dollar is expected to continue its rise.

The Euro which was been beating the U.S. dollar suffered losses on Monday, giving into the negative effect of Greece’s ongoing negotiations, and Greek bonds steeply falling as concerns now rise about the country’s possible departure from the European Union.

Last week the Euro reached its three months high against the dollar, which was dampened by disappointing U.S. data on retail sales and producer inflation, and U.S. industrial production falling for the fifth month in a row.

After days of rising the EUR/USD pair lost 0.58 percent abandoning its Friday’s high of 1.1466. The GBP/USD pair lost 0.44 percent and was at 1.5658, the USD/JPY added 0.45 percent to 119.7 and the AUD/USD lost 0.52 percent to 0.7996, all of which are gains for the U.S. dollar.

Elsewhere the Federal Reserve Bank of Chicago president Charles Evans hinted that there is a chance for the Fed to consider an interest rate raise as soon as June unlike initial expectations which had it happening no earlier than December, but Evans added that he sees it more fit for the raise to be pushed as far as the beginning of 2016.

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After two weeks of gains the U.S. dollar reached its 12 and a half year high against the Japanese yen over the weekend, almost touching 125.00 yen a number it has not touched since 2002.

On Tuesday the USD/JPY pair added 0.08 percent and traded at 124.88.

Elsewhere the U.S. dollar was stronger than the Australian dollar which lost 76 U.S. cents for the first time in seven weeks. The Australian dollar remained at 0.7630 dollars ahead of the Reserve Bank of Australia (RBA) interest rate decision.

Overnight the Euro faltered against the strengthening dollar, and reached the low of 1.0886. Tuesday morning the Euro edged slightly higher with the EUR/USD pair adding 0.21 percent and trading at 1.0948.
The Euro despite its struggle with the ongoing Greece situation also rose against the Japanese yen with the EUR/JPY pair reaching a two week high of 136.62.

Expectations that the Organization of the Petroleum Exporting Countries (OPEC) would not cut output dampened oil prices. The Organization is set for a meeting on Friday to decide on a production strategy and whether it will cut back. Expectations are that it won’t.

Brent crude for July lost 0.57 cents on the Intercontinental Exchange (ICE) and was at 64.99 dollars a barrel.
Brent crude fell back to 64.85 dollars a barrel.

Gold futures for August on the Comex of the New York Mercantile Exchange added 0.04 percent to 1,189.20 dollars a troy ounce.

Silver for July delivery added 0.03 percent to 16.737 dollars a troy ounce.

Copper for July delivery added 0.11 percent to 2.717 dollars a pound.

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After two weeks of gains the U.S. dollar reached its 12 and a half year high against the Japanese yen over the weekend, almost touching 125.00 yen a number it has not touched since 2002.

On Tuesday the USD/JPY pair added 0.08 percent and traded at 124.88.

Elsewhere the U.S. dollar was stronger than the Australian dollar which lost 76 U.S. cents for the first time in seven weeks. The Australian dollar remained at 0.7630 dollars ahead of the Reserve Bank of Australia (RBA) interest rate decision.

Overnight the Euro faltered against the strengthening dollar, and reached the low of 1.0886. Tuesday morning the Euro edged slightly higher with the EUR/USD pair adding 0.21 percent and trading at 1.0948.

The Euro despite its struggle with the ongoing Greece situation also rose against the Japanese yen with the EUR/JPY pair reaching a two week high of 136.62.

Expectations that the Organization of the Petroleum Exporting Countries (OPEC) would not cut output dampened oil prices. The Organization is set for a meeting on Friday to decide on a production strategy and whether it will cut back. Expectations are that it won’t.

Brent crude for July lost 0.57 cents on the Intercontinental Exchange (ICE) and was at 64.99 dollars a barrel.
Brent crude fell back to 64.85 dollars a barrel.

Gold futures for August on the Comex of the New York Mercantile Exchange added 0.04 percent to 1,189.20 dollars a troy ounce.

Silver for July delivery added 0.03 percent to 16.737 dollars a troy ounce.

Copper for July delivery added 0.11 percent to 2.717 dollars a pound.

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[B]Markets React to Belgium’s Terrorist Attacks[/B]

US dollar supported as Euro falters under risk sentiment

Markets were rattled following Tuesday’s terrorist attack on Belgium, which has left Europe in high alert, with risk sentiment driving investors towards safe havens.

Following the attacks on Tuesday the Japanese yen saw gains against the US dollar and especially against the Euro which suffered from the zone’s predicament.

Elsewhere the Aussie and kiwi were weaker on Wednesday, while markets remained under pressure among fears about worldwide security due to a terrorist attack in Brussels.

AUD/USD fell 0.18% to 0.7606, while NZD/USD declined 0.39% to trade at 0.6726.

Following the tragedy that took place in Brussels, market sentiment hit lower levels.

The ISIS claimed terrorist attack took place on Tuesday the 22nd of March at Brussels’ Zaventem airport, followed by an explosion an hour later at the Maelbeek metro station. 34 people were reported dead and 198 injured. This happened four days after the arrest of Salah Abdeslam in Belgium for November’s terrorist attacks in Paris.

The greenback found some support following the speech of Philadelphia’s Fed President, who stated that the US central bank must increase interest rates in the next month whether the US economy keeps growing or not.

While on Wednesday, Atlanta Federal Reserve President mentioned a possible interest rate hike in April, and Chicago Fed President Charles Evans said he expects two more rate increases this year.

EUR/USD lost 0.1 percent in early trade on Wednesday trading at 1.1207, higher than the 1.1188 level it reached immediately after the attack. The greenback was flat against the Japanese yen at 112.43.

“The market learned Fed officials can support the dollar, overall, and market is focusing on what they say, after what Yellen said last week pushed it lower” said Kaneo Ogino from Tokyo.

Investors were expecting a report on New Zealand’s trade balance later Wednesday, in addition to the US new home sales data.

The US dollar index, which measures the greenback’s strength against a basket of six other major currencies, was up 0.18%, the highest since the 17th of March.