Friday, July 29, 2016

Dollar Index Falls at 2-week Lows

The dollar tumbled to new two-week lows against a basket of other major currencies during the course of Friday’s session, after the Bank of Japan (BOJ) disappointed market anticipations earlier in the session and the Federal Reserve has failed to act on Wednesday.

Meanwhile, market players are closely watching for the release of the U.S. economic growth data.
USD/JPY slipped by about 1.59% to changed hands at a three-week low of 103.57.

During the monthly policy meeting on Friday, the BOJ reported a broadly higher purchases of exchange-traded funds (ETFs), but its base money target remained steady at 80 trillion yen, including the pace of purchases for other assets.

The central bank left the negative interest rates unchanged at -0.1%.

The decision has disappointed the market expectations for a stimulus package worth 28 trillion yen as pledged by Prime Minister Shinzo Abe last week to help lift the economy.

The policy statement was announced after the Fed left interest rates on hold at the conclusion of the two-day policy meeting, suggesting an expected move.

In its statement, the Fed said that “near-term risks to the economic outlook have diminished” and that the labor market has “strengthened”.


All Eyes on the U.S. Economic Growth Data

Further, investors are now closely watching on the upcoming U.S. economic growth data for the second quarter, scheduled on Friday for further signals on the current stated of the economy.

EUR/USD rallied 0.22% to end the session at 1.1101.

In other news, Eurostate mentioned that the consumer price index of the euro zone has seen a 0.2% increase at an annual basis in July, topping the analysts’ estimate of a 0.1% uptick and after a 0.1% increase during the last month.

Core CPI, in exclusion of food, energy, alcohol and tobacco, has seen a 0.9% rally in the previous month, year-on-year, in line with anticipations.

The pound remained steady, with GBP/USD resting at 1.3171, while USD/CHF lost about 0.40% to settle at 0.9768.

Subsequently, the Bank of England announced an increase in net lending to individuals to £5.2 billion in June from £4.5 billion in May, suggesting an upwardly revision from an earlier forecast of £4.3 billion.


Analysts are expecting the bank to post a broadly higher net lending to individuals of £4.2 billion in the previous month.

However, the pound’s gains were covered as market players’ attention retreated to BoE’s policy meeting next week amid mounting anticipations for a rate cut.  

The Australian dollar remained flat, with AUD/USD at 0.7504, while NZD/USD rallied to 0.34% to 0.7094.

USD/CAD rose 0.17% to 1.3179.

The U.S. dollar index, which gauges the dollar’s strength against a basket of major rivals, tumbled 0.37% at 96.33, suggesting its lowest level on the record.


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Indonesia Stocks Posts Lower; IDX Composite Index Down 1.57%

Indonesia stocks posted lower during the course of Friday’s session, fueled by declining shares in the sectors of Consumer Industry, Manufacturing and Infrastructure.

The IDX Composite Index has seen 1.57% loss at the close in Jakarta.

Among the best performers amid IDX Composite Index’s session were Ictsi Jasa Prima Tbk, which rallied by about 34.95% or 36 points to changed hands at 139 in late trade. Tifico Fiber Indonesia Tbk gained 24.29% or 170 points to settle at 870 and Mitra Komunikasi Nusantara Tbk PT rose 23.35% or 92 points to 486 at the close.  

Siloam International Hospital is one of the worst performers amid session, which lost about 10.32% or 1125 points to settle at 9775 in late trade. Hm Sampoerna Tbk dipped 9.70% or 390.00 points to settle at 3630.00 and Bank of India Indonesia Tbk tumbled 9.38% or 180 points to 1740 at the close.  

Declining stocks outnumbered increasing ones on the Jakarta Stock Exchange with a range between 176 to 147 and 87 remained unchanged.


Sampoerna Tbk stocks declined to all time session lows, which dipped 9.70% or 390.00 to 3630.00 in late trade. Meanwhile, Bank of India Indonesia shares dropped to 52-week lows, which declined 9.38% or 180 to 1740.

Crude oil delivery in September lost about 0.63% or 0.26 to end the session at $40.88 a barrel. In commodities trading, Brent oil delivery in October tumbled 0.81% or 0.35 to settle at $42.88 a barrel, while Gold contract in December dipped 0.07% or 0.95 to changed hands at $1340.25 a troy ounce.

USD/IDR rallied 0.19% to 13098.0, while AUD/IDR lost 0.41% to end the session at 9812.85.

The US Dollar Index declined 0.46% at 96.25.

Win Streak May End For Indonesia Shares?

In other news, Indonesia stock was broadly higher in four consecutive sessions, climbing over 100 points or 1.9 percent within the day.   

The Jakarta Composite Index remained flat at 5,300 points, suggesting market players could lock in gains on Friday.


The global estimate for the Asian markets had mixed results, led by several inconsistent reports in earnings and weaker economic data. Meanwhile, the European markets remained sluggish, while the U.S. markets were mixed but slightly changed.  

The JCI posted higher at the close of Thursday’s session, following gains from the sectors of resource and food. Elsewhere in financials, it had mixed results.

Astra Agro Lestari is among the actives, which gained 0.34 percent, while Vale Indonesia rose 4.53 percent, Bank Negara Indonesia rallied 0.47 percent, Bank Danamon slipped 1.37 percent, Indofood Sukses added 5.63 percent and Indocement climbed 1.33 percent.

Further, the Dow remained flat at 15.82 points or 0.1 percent to end the session at 18,456.35, while the NASDAQ rallied 15.17 points or 0.3 percent to 5,154.98 and the S&P 500 increased 3.48 points or 0.2 percent to end at 2,170.06.


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Monday, July 25, 2016

Saudi Stocks Retreats Across Gulf Equity

Saudi Arabian shares led recovery across Gulf equities as trading volumes declined. Among the six-nation Gulf Cooperation Council (GCC), four of which has seen slumps, with analysts saying that GCC 200 Index controlled its longest declining streak in two months. 
  
Tadawul All Share Index of Saudi Arabia lost about 0.9 percent in Riyadh, as trading volumes were cut by 38 percent, dropping below the average. DFM General Index of Dubai dipped 0.8 percent as 123 million stocks were changed hands, which posted below the six-month average, according to reports.  

“After last week’s excitement fueled by foreign inflows, with a few exceptions, things are dull today,” said Akber Khan, who manages $850 million as senior director of asset management at Al Rayan Investment in Doha. “It’s a Sunday in the midst of summer with few results in the region. Volumes are unsurprisingly poor.”

Stock measures in the countries of Dubai, Abu Dhabi, Qatar and Kuwait issued a third week of advances in five consecutive gains through Thursday’s session as prospects for stimulus in large economies fueled demand for riskier emerging-market assets.

Market players remained cautious after the Bank of Japan (BOJ) has overruled the financing government debt and the European Central Bank remained vulnerable in a monetary expansion.


GCC slump on Sunday were followed by declines in oil prices, with Brent crude dropping about 4 percent in the week to end the session at $45.69 per barrel. The GCC is considered as the third world’s proven oil reserves and equities are much relative to crude prices.   

Saudi Arabia Posts Lower

Saudi Arabia shares edge lower during the course of Monday’s session, fueled by declining shares in the sectors of Energy & Utilities, Financial Services and Insurance.

The Tadawul All Share lost about 0.11% in late trade in the country.

Among the best performers of the Tadawul All Share were Saudi United Cooperative Insurance, which rallied by about 6.83% or 1.00 points to changed hands at 15.65 in late trade. Meanwhile, Arabian Pipes Company gained 6.09% or 0.85 points to settle at 14.80 and Malath Cooperative Insurance Co has seen a 3.49% increase or 0.55 points to end at 16.30 at the close.   


Bupa Arabia for Coop. Insurance is one of the worst performers amid session, which lost about 4.62% or 6.00 points to changed hands at 123.75 in late trade. Al Hammadi Co dipped 3.21% or 1.30 points to settle at 39.20 and Emaar The Economic City fell 2.51% or 0.35 points to 13.60 at the close. 
  
Advancing stocks outnumbered dropping ones on the Saudi Arabia Stock Exchange with a range between 84 to 64 and 22 remained unchanged.

Crude oil for delivery in September lost about 1.61% or 0.71 to end at $43.48 a barrel. In commodities trading, Brent oil October delivery dipped 1.41% or 0.65 to settle at $45.44 a barrel, while Gold contract in December fell 0.61% or 8.10 to changed hands at $1323.40 a troy ounce.  
EUR/SAR fell 0.05% to 4.1155, while USD/SAR lost about 0.02% to 3.7506.

The US Dollar Index gained 0.09% at 97.50.


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Wednesday, July 20, 2016

Dollar Advances in Subdued Trade

The dollar settled near four-month highs against a basket of major currencies during the course of a subdued trade on Wednesday, boosted by global growth concerns that continued to affect the market sentiment and with no major U.S. data anticipated within the day.

Market players remained cautious after the forecasts for global economic growth in 2016 was revised to 3.1%, from the previous 3.2%, and anticipates to bounce back to 3.4% next year.
The IMF lowered their U.K growth estimate to 1.7% from an earlier forecast of 1.9% this year and cut 2017 growth to 1.3% from April’s forecast of 2.2% over Brexit vote.

Meanwhile, GBP/USD rose about 0.48% to end the session at 1.3175, suggesting a one-week low of 1.3064.

The pound edge higher after the unemployment rate posted declines of 4.9% in three months to May from April’s reading of 5.0%, compared to forecasts for an unchanged reading.

The claimant count has seen a 400 increase in June, compared to estimates of an added 3,500 people, followed by an improved 12,500 in the last month.

Further, the average earnings index, and bonuses rallied 2.3% in the three months to May, relative to estimates and after a 2.0% increase in the three months to April.


In the exclusion of bonuses and wages, it advanced to 2.2%, missing the 2.3% expected gains, followed by a 2.2% rally in the three months to April.

USD/JPY climbed by about 0.18% to end the session at 106.45, suggesting its highest level on the record, while USD/CHF added 0.18% to 0.9875 in late trade.

Japan’s currency remained struggling, as heightened expectations for another monetary easing by the Bank of Japan (BOJ) kicked off.  

EUR/USD remained flat at 1.1013, settling at a one-month low of 1.0981 earlier.

Apparently, the Australian and New Zealand dollars inched lower, with AUD/USD drops to 0.32% at 0.7483, while NZD/USD has seen declines of 0.33% to end the session at 0.7032.

Subsequently, USD/CAD added 0.27% to changed hands at a one-week high of 1.3057.


The U.S. dollar index, which gauges the dollar’s strength against other major currencies, rallied by about 0.08% and settled at 97.14, hitting below a four-month high of 97.37 readings overnight.

Dollar Finds Support from Strong US Data

The greenback gave back their gains against Japan’s currency during the course of Wednesday’s session, but it hits a nearly four-month peak against a basket of major currencies fueled by a strong U.S. data and mounting anticipations over the Bank of Japan’s added easing move. 

"If the BOJ doesn't take any action, the dollar/yen can fall back to 100 again," said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.


"But now the focus has also shifted to the possibility of a U.S. interest hike," he said, which will likely underpin the dollar even in the event the BOJ decides not to ease this month.


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