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Fxwirepro: Usd/twd Rejects Key Support at 31.45, Good to Buy on Dips

USD/TWD is currently trading around 31.65 marks.
It made intraday high at 31.70 and low at 31.49 marks.
Intraday bias remains bullish till the time pair holds key support at 31.45 marks.
A daily close above 31.84 will drag the parity up towards key resistances around 31.98, 32.12, 32.25, 32.43 and 32.63 marks respectively.
On the other side, key support levels are seen at 31.45, 31.26, 31.18, 30.99, 30.85 and 30.39 marks respectively.
Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
Taiwan stocks open up 0.1 pct at 9,322.55 points. We prefer to go long on USD/TWD around 31.55, stop loss 31.45 and target of 31.84/31.98.

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Dollar Strengthens with Traders Focus on Bank Action

The dollar strengthened while investors have been more optimistic regarding the possibility of a U.S. interest rate hike. The WSJ Dollar Index increased by 0.5 percent to 88.36.

Analysts associated the dollar climbing to firm data and comments from Federal Reserve Bank of New York President William Dudley. Mr. Dudley says that he expects that the bank would be able to lift rates in December. Fed-funds futures have shown that investors implied a 74 percent chance of a rate hike in December, according to CME Group data.

The euro declined 0.4 percent to $1.0929 following the European Central Bank's decision to keep interest-rates unchanged.

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Americas Roundup: Dollar Gains Vs Euro As December fED Rate Hike Seen Likely, Oil up on Russia-Opec Hopes; U.s. Rig Count Jump Limits Gains-October 22nd, 2016

Market Roundup
• Fed’s Williams: Makes sense to raise rates gradually, “sooner than later”,essentially at full employment.
• Fed’s Tarullo: greatest risk to financial stability relates to funding runs, asset sales.
• ECB's Nowotny thinks QE decision will be discussed in Dec, monetary policy not enough need fiscal policies.
• Italy PM Renzi says won't change 2017 budget plan even if Brussels objects, Italy referendum Dec 4.
• USD heads for 3rd weekly gain as US rate rise bets firm; Offshore yuan hits 6-year low (above 6.76).
• GBP weaker as UK PM May attends EU summit; Euro at 7-month lows after Draghi quashes tapering talk.
• CAD weakens to 7-month low as weak inflation/RS fuels rate cut bets; CA-US 2-yr spread hits widest in 4-months.
• Brazil inflation eases to lowest in 7 years for mid-October, may pave way for further rate cuts.
Looking Ahead - Economic Data (GMT)
• No Significant Data
Looking Ahead - Events, Other Releases (GMT)
• No Significant Events Currency Summaries

Currency Summaries

EUR/USD is likely to find support at 1.0858 levels and currently trading at 1.0880 levels. The pair has made session high at 1.0889 and hit lows at 1.0858 levels. The euro declined against the dollar on Friday as investors increased bets that Federal Reserve would raise interest rates by this year end. Recent hawkish comments from Fed officials have increased bets that the U.S. central bank will raise rates in December. New York Fed President William Dudley said on Wednesday the Fed will likely increase interest rates later this year if the U.S. economy remains on track. Greenback was also boosted by dovish European Central Bank meeting on Thursday. ECB President Mario Draghi left a wide range of options on the table and emphasized that a long-awaited rise in inflation is predicated on "very substantial" monetary accommodation. The dollar index rose as high as 98.813, the highest since Feb 3. The euro fell as low as $1.0859, the lowest since March 10.

GBP/USD is supported in the range of 1.2140 and currently trading at 1.2227 levels. It reached session high at 1.2238 and hit low at 1.2165 levels. British pound initially declined against the greenback on Friday but rebounded in the late US session erasing early losses as some investors took profit following recent dollar rally that received a boost on recent solid U.S. data. The pound has fallen nearly 18 percent since the June vote with losses accelerating in October after May raised the spectre of a "hard" Brexit, where the government will negotiate for an exit that favours tighter immigration controls over free trade, likely curbing foreign investment needed to fund Britain's huge current account deficit. Sterling's slide has sent inflation expectations soaring, driving investors to reassess chances of further easing by the Bank of England this year. Sterling hit low at $1.2270 in the mid-morning US session, but rebounded back erasing early losses to trade at $1.2227.

USD/CAD is supported at 1.3217 levels and is trading at 1.3332 levels. It has made session high at 1.3354 and lows at 1.3298 levels. The Canadian dollar declined sharply against U.S. dollar on Friday as weaker-than-expected domestic data fueled interest rate cut bets weighing on risk-sensitive Canadian dollar. Canada's annual inflation rate rose less than expected in September as the cost of gasoline fell, while food prices saw their smallest gain since 2000, data from Statistics Canada showed on Friday. The annual inflation rate rose to 1.3 percent, though that was shy of forecasts for an increase of 1.5 percent. Annual core inflation, which strips out some volatile items and is watched by the Bank of Canada, held steady at 1.8 percent, as expected. The Canadian dollar last traded at C$1.3332 to the greenback, or 75.04 U.S. cents, weaker than Thursday's close of C$1.3222, or 75.63 U.S. cents.

AUD/USD is supported around 0.7580 levels and currently trading at 0.7604 levels. It hit session high at 0.7615 and made session lows at 0.7586 levels. The Australian dollar edged lower against US dollar on Friday as recent poor employment report fuelled the risk of further rate cuts by Reserve Bank of Australia. The Aussie has been resilient in recent weeks against a resurgent U.S. dollar but recent dovish comments by the Reserve Bank of Australia in the minutes of its October policy meeting and the latest jobs data tamed its rise. Thursday's data showed a drop of 53,000 full-time jobs and a decline in the number of people looking for work. The Australian dollar was trading at $0.7604, having slid 1.3 percent on Thursday, the most since Sept. 13. Despite the decline, the Aussie is still set to end the week mostly unchanged.

Equities Recap
European stock markets posted a weekly gain on Friday, as a rebound in bank shares and some well-received company results lent markets support in spite of uncertainty over future monetary policy.

UK's benchmark FTSE 100 closed down by 0.2 percent, the pan-European FTSEurofirst 300 ended the day down by 0.01 percent, Germany's Dax ended flat, France’s CAC finished the day down by 0.1 percent.

The S&P 500 and the Dow were little changed and the Nasdaq advanced on Friday as a record day for Microsoft and earnings from McDonald's helped offset a fall in energy and healthcare shares.

Dow Jones closed down by 0.10 percent, S&P 500 ended up by 0.02 percent, Nasdaq finished the day up by 0.23 percent.

Treasuries Recap

U.S. Treasury yields were little changed on Friday as expectations the Federal Reserve would raise U.S. interest rates by year-end offset demand for bonds following comments by European Central Bank President Mario Draghi on bond purchases.

Benchmark 10-year Treasury notes were up 2/32 in price to yield 1.738percent, down less than 1 basis point from late Thursday. It reached a four-month peak at 1.841 percent on Monday.

The spread between U.S. five-year and 30-year yields earlier narrowed by 2 basis points before ending little changed on the day at 125 basis points.

Shorter-dated yields were marginally higher on expectations the Fed would raise interest rates at its Dec. 13-14 meeting.

Commodities Recap

Gold prices were little changed on Friday as a strong dollar limited gains, but the precious metal notched its first weekly rise in four as seasonal demand from Asia kicked in.

Spot gold was up 0.1 percent at $1,267.23 an ounce by 2:57 p.m. EDT (1857 GMT). For the week, prices rose 1.4 percent, clawing back part of the 6.6 percent shed over the last three weeks.

U.S. gold futures ended the session up 0.02 percent at $1,267.70.

Oil settled up on Friday on hopes Russia and OPEC will reach agreement at the weekend on market support initiatives to keep crude above $50 a barrel, although traders cautioned about pressure from a double-digit rise in the U.S. oil rig count.

Brent settled up 40 cents, or 0.8 percent, at $51.78. For the week, it ended flat. U.S. West Texas Intermediate crude settled up 22 cents, or 0.4 percent, at $50.85 a barrel.

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South Korea GDP Climbs 2.7% In Q3

South Korea's gross domestic product expanded 2.7 percent on year in the third quarter of 2016, the Bank of Korea said in Tuesday's preliminary reading.

That beat forecasts for an increase of 2.4 percent, although it slowed from 3.3 percent in the previous three months.

On a seasonally adjusted annualized basis, GDP gained 0.7 percent - also exceeding forecasts for 0.5 percent but down from 0.8 percent in the three months prior.

Real gross domestic income slipped 0.3 percent on quarter.

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Gold Prices Lower Amid Strong U.S. Economic Data

Gold prices were lower as the solid U.S. economic data boosted the chances for the Federal Reserve to increase interest rates in the following months. Gold for December delivery was down 0.3 percent at $1,263.90 per troy ounce on the Comex division of the New York Mercantile Exchange.

U.S. manufacturers began the final quarter of 2016 on a positive note, with output and new order growth reaching one-year highs, according to Markit data. The firm figures helped strengthen the outlook that the Fed could increase interest rates in December. In the first eight months of this year, Hong Kong's net gold exports to mainland China add up to 555,300 kilograms, according to HSBC.

Silver for December delivery was up 0.6 percent to $17.60 per troy ounce, January platinum climbed 0.7 percent to $939.10 per troy ounce, while December palladium increased 1.6 percent to $630.74 per troy ounce.

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Australia Inflation Gains 1.3% On Year In Q3

Consumer prices in Australia were up 1.3 percent on year in the third quarter of 2016, the Australian Bureau of Statistics said on Wednesday.

That exceeded forecasts for 1.1 percent following the 1.0 percent increase in the previous three months.

On a quarterly basis, inflation jumped 0.7 percent versus forecasts for 0.5 percent and up from 0.4 percent in the three months prior.

The Reserve Bank of Australia's trimmed mean was up 0.4 percent on quarter and 1.7 percent on year, while the weighted median added 0.3 percent on quarter and 1.3 percent on year.

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Fxwirepro: South Korean Won Opens Onshore Trade at 1,139.0 Per Dollar; Stay Bullish

USD/KRW is currently trading around 1,138 levels.
It made intraday high at 1,139 and low at 1,136 marks.
Intraday bias remains bullish till the time pair holds key support at 1,125 levels. A daily close above 1,135 will drag the parity higher towards key resistances at 1,142, 1,152, 1,162, 1,176, 1,182, 1,196, 1,201, 1,209 (20D EMA) and 1,220 (March 03, 2016 high) marks respectively.
On the other side, a sustained close below 1,125 will test key supports at 1,117/1,111/1,101/1,089/1,078/1,063/1,044 levels respectively.
In addition, South Korea’s Kospi was trading around 0.24 percent higher at 2,018.46 points.
We prefer to go long on USD/KRW only above 1,138, stop loss 1,117 and target 1,152/1,168.

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Galaxy Note 7 Failure Weighs on Samsung’s Third-Quarter Profit


Samsung Electronics Co. Ltd. reported a net profit drop of 16.8% to 4.54 trillion Korean won or $4.0 billion during the third quarter, as the problematic recall and discontinuation of its Galaxy Note 7 smartphone trimmed the tech firm's mobile earnings to its lowest level in almost eight years.

Samsung's mobile operating profit sank 96% from a year prior to 100 billion won after the Galaxy Note 7 was pulled from the market due to reported incidents of overheating. The company initiated a global recall on September 2 to replace the units, but decided to scrap the smartphone altogether on October 11 as reports that Note 7 are still fire-prone surfaced.

Total operating profit for the third quarter plunged 30% to 5.2 trillion won, a steep decline from almost 7.4 trillion won a year prior. Meanwhile, revenue declined 7.5% to 47.82 trillion won. The South-Korean company had initially projected a 7.8 trillion won profit but trimmed its guidance, adjusting the figures to reflect the losses sustained from the withdrawal of the Note 7.

Still, the company had an optimistic outlook for the fourth quarter and expects the earnings to regain ground and to reach the same level seen during the fourth quarter of 2015.

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Fxwirepro: Taiwanese Dollar Gains Against U.s. Dollar on Robust Gdp Data

USD/TWD is currently trading around 31.70 marks.
It made intraday high at 31.74 and low at 31.62 marks.
Intraday bias remains bearish till the time pair holds key resistance at 31.83 marks.
A daily close above 31.83 will drag the parity up towards key resistances around 31.98, 32.12, 32.25, 32.43 and 32.63 marks respectively.
On the other side, key support levels are seen at 31.55, 31.38, 31.26, 31.18, 30.99, 30.85 and 30.39 marks respectively.
Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
Taiwan stocks open up 0.1 pct at 9,307.39 points.
Taiwan preliminary Q3 GDP +2.06 pct y/y (poll median +1.8 pct).
Taiwan preliminary Q3 GDP +4.54 pct q/q seasonally adjusted annualized rate vs +0.23 pct in Q2.
Taiwan preliminary Q3 GDP +1.12 pct q/q seasonally adjusted quarterly rate vs +0.06 pct in Q2.
We prefer to go short on USD/TWD around 31.75, stop loss 31.83 and target of 31.55/31.38.

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Alphabet Profit Lifted by Mobile Ad Strength

Alphabet Inc. posted quarterly earnings and revenue that exceeded analysts' projections, causing the shares of the world's number two company by market value to advanced 1.6% in late-hours trading.

Google investors once had concerns how it would hone its web advertising business towards the mobile platform, but its recent strong performance reassured Wall Street that its transition is making headway.

Fueled by strong advertising on mobile phones and video ads on the video website YouTube, the Google parent's net income jumped 27% to $5.06 billion. Revenue rose 20% to $2.45 billion, notching the company's seventh consecutive quarter of double-digit revenue gains.

Paid clicks on Google ads surged 33% during the third quarter, up from the 29% increase seen during the previous quarter. Advertising revenue, which represents 89.1% of Google's overall revenue, soared 18.1% to $19.82 billion during the period. The search company posted earnings of $9.06 per share, beating estimates of earnings per share of $8.63 on a $22.05 billion revenue.

The firm also authorized a $7 billion repurchase of its Class C stock, meeting the demand of investors following a $5 billion buyback in the previous year.

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Fxwirepro: Usd/krw Hovers Around 1,148 Mark; Stay Bullish

USD/KRW is currently trading around 1,147 levels.

It made intraday high at 1,148 and low at 1,145 marks.

Intraday bias remains bullish till the time pair holds key support at 1,138 levels. A daily close above 1,148 will drag the parity higher towards key resistances at 1,152, 1,162, 1,176, 1,182, 1,196, 1,201, 1,209 (20D EMA) and 1,220 (March 03, 2016 high) marks respectively.

On the other side, a sustained close below 1,138 will test key supports at 1,127/1,117/1,111/1,101/1,089/1,078/1,063/1,044 levels respectively.

In addition, South Korea’s Kospi was trading around 1.14 percent lower at 1,984.54 points.

We prefer to go long on USD/KRW only above 1,148, stop loss 1,138 and target 1,162.

News are provided by InstaForex
 
U.S. Treasury Prices Regains Ground on Election Jitters

Increasing apprehension over the upcoming U.S. presidential election on November 8 triggered investors' flight to safety instincts and fueled the demand for safe-haven bonds, driving the prices of U.S. Treasuries higher following an earlier session of declines.

Improved manufacturing data from China caused an initial selloff in the bond market, causing yields on the 10-year Treasury notes to rise close to a five-month high. The positive economic data alleviated worries of a continuing slump in China' economy and elevated outlook for global growth.

However, anxiety over the result of the impending election caused investors to be more risk-averted, increasing the demand for government debt. The latest result of the ABC News/ Washington Post poll indicated that while vote preference had basically remained the same, Democrat Party nominee Clinton has lost her advantage for the first time since May, with GOP candidate Donald Trump narrowly taking the lead.

The yield on the 10-year Treasury note closed at 1.822%, declining from a session peak of 1.877%. Yields on the two-year note fell by two basis points to 0.829% while the 30-year note lost 1.8 basis point to 2.571%.

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Australia Has A$1.227 Billion Trade Deficit

Australia had a seasonally adjusted merchandise trade deficit of A$1.227 billion in September, the Australian Bureau of Statistics said on Thursday.

That beat forecasts for a shortfall of A$1.70 billion following the upwardly revised A$1.894 billion deficit in August (originally -A$2.010 billion).

Exports were up 2.0 percent on month to A$27.254 billion after coming in at A$26.828 billion in the previous month.

Imports dipped 1.0 percent on month at A$28.481 billion after coming in at A$28.722 a month earlier.

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Dollar Weakens as Fed Kept Rates Unchanged

The dollar trimmed losses after the U.S. Federal Reserve indicated a possibility of an interest-rate hike in December, however uncertainty regarding the U.S. presidential election weighed on the currency. The WSJ Dollar Index fell 0.3 percent.

The Fed kept short-term interest rates unchanged however it did indicate that it expects to increase rates by year-end. The statement of the Fed stated that inflation is strengthening and also implied that the bar to raising rates for the first time in a year is low. Fed-funds futures have shown that investors implied a 72 percent chance of a rate hike in December, according to CME Group data.

The dollar was lower against a basket of major currencies, led by the rand and the kiwi. The euro was stable at $1.1094. The Mexican peso fell 0.9 percent against the greenback. The Japanese yen climbed by nearly 0.6 percent and the Swiss franc rose by almost 0.1 percent against the dollar. Investors watch U.S. data for indications that the economy is firm enough for a rate hike by year-end.

The dollar index last traded at 97.404, after declining to as low as 97.178, its lowest since Oct 11.

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Japan Services PMI Expands In October - Nikkei

The services sector in Japan swung to expansion in October, the latest survey from Nikkei revealed on Friday with a PMI score of 50.5.

That's up from 48.2 in September, and it moves above the boom-or-bust line of 50 that separates expansion from contraction.

Individually output increased at firms, supported by a sharp expansion in new orders.

Business expectations were the strongest in six months, while inflationary pressures intensified to the greatest level in eight months.

The report also showed that the composite index jumped to 51.3 in October from 48.9 in the previous month.

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Starbucks Shares Advance After Posting Higher Quarterly Revenue

Shares of Starbucks rose as much as 6%, before trading 0.9% higher at $52.30 in extended trading after posting quarterly results that beat estimates, easing concerns that the world's biggest coffee chain had fallen into a widespread restaurant slump.

The company reported adjusted earnings of 56 cents per share on $5.71 billion total revenue. Topped expectations of $5.68 billion revenue with 55 cents per-share earnings. In the same period during the previous year, Starbucks saw a $4.91 billion revenue and earned 43 cents per share.

Net income during the fourth quarter rose to $801 million or 54 cents per share, compared to the $625.5 million or 43 cents per share a year prior.

Despite the upbeat quarterly report, the coffee seller issued a cautious revenue guidance for the financial year of 2017. Starbucks projected net earnings of 50-51 cents per share during the first quarter which covers the holiday season, lower than expected profit of 55 cents per share.

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Fxwirepro: Usd/jpy Jumps Above 104.00 Mark After Boj’s Meeting Minutes

USD/JPY is currently trading around 104.02 marks.
It made intraday high at 104.47 and low at 103.75 levels.
Intraday bias remains bullish till the time pair holds key support at 102.55 levels. A daily close above 104.16 will take the parity higher towards key resistances around 104.99, 105.50, 106.12, 106.72, 107.49, 107.90 and 109.13 levels respectively.
On the other side, a sustained break below 103.75 will drag the parity down towards key supports around 102.67, 101.56, 100.30, 99.27 and 98.78 levels respectively.
BOJ September meeting minutes: Some members said firms' cautious price-setting behaviour might continue for longer than expected.
BOJ minutes: Many members shared the view that QQE had lowered real interest rates by raising inflation expectations and pushing down nominal interest rates. BOJ minutes: One member said it was necessary to implement monetary policy that would raise inflation expectations.
BOJ minutes: One member said change in the yield curve after adoption of negative rates had been largely induced by temporary, somewhat speculative moves.
BOJ minutes: One member noted that achieving both an interest rate target and a quantitative target in the implementation of monetary policy was difficult.
Japan September overtime pay increases to -1.3 % vs previous -1.9 %.
In addition, Japan’s Average Cash Earnings rose to a seasonally adjusted 0.2%, from 0.0% in the preceding quarter whose figure was revised up from -0.1%.

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Japan September Real Wages Edge Up as Consumer Prices Fall

Japan's real wages climbed for the eighth month in a row in September according to official data, propped-up by declining consumer prices as the economy exhibit meager signs of rising inflation.
Real wages, which are revised for inflation, climbed 0.9% year-on-year in September, growing faster than a revised 0.6% increase in the prior month. Meanwhile, nominal cash earnings climbed 0.2 in September from a year prior. Revised figures indicated that last month, nominal wages were flat year-on-year.

Separate data showed core consumer prices extended its seventh month of decline while spending among Japanese households slumped in September.

Special payments, including bonuses, dropped at an annual rate of 2.9% in September, compared to a 0.5% annual decline in the previous month. Overtime pay dropped 1.3% year-on-year in September. Regular pay, on the other hand, rose an annual 0.4%.

BOJ policymakers initially anticipated its bold monetary easing and massive fiscal spending to jumpstart economic growth, which would drive up real wages and stimulate inflation. On the contrary, consumer prices slowed down due to tepid growth, which consequentially drove up real wages but will not be beneficial to the economy.

News are provided by InstaForex
 
Australia Business Confidence Ebbs In October - NAB

Business confidence in October remained positive in October, albeit at a slower pace, the latest survey from the National Australia Bank revealed on Tuesday with an index score of +4.

That's down from +6 in September, although it didn't slip into pessimism with a negative score.

Business conditions also slowed, coming in at +6 - down from +8 in the previous month.

News are provided by InstaForex
 
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