Forex – Dollar nears 7-year highs against yen

Investing.com – The dollar rose against the yen on Thursday, moving back towards seven year highs reached earlier in the week as continued speculation over snap elections in Japan continued to weigh on the yen.
USD/JPY was up 0.22% to 115.78, holding just below Tuesday’s high of 116.09, the most since October 2007.
The yen has come under renewed selling pressure this week amid speculation that Prime Minister Shinzo Abe could call a snap election in December.
Speculation that the prime minister could postpone a proposed sales tax increase, scheduled for October 2015 also weighed.
A win for Abe would indicate continued support for his for his economic and fiscal policies, which call for a weaker yen.
Demand for the dollar continued to be underpinned by the diverging monetary policy outlook between the Federal Reserve and its major peers.
Investors were looking ahead to U.S. data on initial jobless claims later in the day and Friday’s retail sales report for further indications on the strength of the recovery.
The euro edged higher against the dollar, with EUR/USD easing up 0.14% to 1.2455, remaining supported above last week’s 26-month lows of 1.2356.
In the euro zone, data on Thursday showed that Germany’s consumer price index fell 0.3% from a month earlier in October. The annual rate of inflation was steady at 0.8%.
The soft data added to concerns over the outlook for the region’s largest economy ahead of Friday’s reports on third quarter growth.
Elsewhere, the euro was higher against the softer yen, with EUR/JPY advancing 0.41% to 144.23.

Forex – Aussie dollar and yen weaker after China data disappoints

Investing.com – The Japanese yen held weakness on Thursday and the Australia dollar also fell after data from China gave a sour view of factory output and retail sales.

USD/JPY traded at 115.79, up 0.22%, while AUD/USD changed hands at 0.8704, down 0.14%.

In China, industrial output rose 7.7% year-on-year, below an expected 8.0% gain while January-October fixed-asset investment growth rose 15.9% as expected, and retail sales for October gained 11.5% year-on-year, just missing September’s pace of 11.6% year-on-year.

Japan reported core machinery orders rose 2.9% month-on-month in October, well above the private-sector core orders forecast for a drop of 1.9% month-on-month, the fifth straight gain. CPGI, excluding sales tax, rose 0.1% year on-year, well below the forecast of a gain of 3.3% on year, but the 19th straight year-on-year increase.

In Australia, the November MI inflation expectations release showed a reading of 2.7% in October, a tick up from 2.6% in September.

The Australian dollar remains above most estimates of its fundamental value but may depreciate closer to the time the U.S. Fed starts to raise its policy rate, Reserve Bank Assistant Governor Christopher Kent said Thursday.

“Once that process is seen to be starting in earnest (or at least much closer to starting) it may well lead to a further appreciation of the U.S. dollar. The flip side of this would be a further depreciation of the Australian dollar which remains above most estimates of its fundamental value – particularly given the substantial declines in commodity prices over the course of this year,” Kent said.

Overnight, the dollar traded largely higher against its peers on Wednesday in a session void of major U.S. economic indicators, though a lackluster European industrial production report softened the euro and fueled demand for the greenback.

Earlier Wednesday, Eurostat, the European Union’s statistical office, reported that industrial production in the euro area increased by 0.6% in September, missing forecasts for a monthly gain of 1.0%. Industrial production in August fell by 1.4%.

Year-on-year, industrial production inched up 0.6% in September from a year earlier, beating expectations for a 0.2% decline and after dropping at a rate of 0.5% in the preceding month.

The lackluster report stoked concerns over the outlook for economic growth in the single currency bloc after weak Italian data on Monday fueled fears that its economy is falling back into a recession.

Meanwhile, the dollar saw demand due to ongoing expectations that the U.S. economy will continue to recover while European and Asian economies take steps to loosen monetary policy to ward off deflationary pressures.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 87.91.

On Thursday, the U.S. is to publish the weekly report on initial jobless claims.

Forex – Yen slightly weaker on downbeat data, Aussie up ahead of China

Investing.com – The Japanese yen weakened slightly on Thursday after downbeat data, while the Aussie dollar gained on an inflation survey that ticked up in October.

USD/JPY traded at 115.56, up 0.02%, while AUD/USD traded at 0.8729, up 0.15%.

Japan reported core machinery orders rose 2.9% month-on-month in October, well above the private-sector core orders forecast for a drop of 1.9% month-on-month, the fifth straight gain. CPGI, excluding sales tax, rose 0.1% year on-year, well below the forecast of a gain of 3.3% on year, but the 19th straight year-on-year increase.

In Australia, the November MI inflation expectations release showed a reading of 2.7% in October, a tick up from 2.6% in September.

The Australian dollar remains above most estimates of its fundamental value but may depreciate closer to the time the U.S. Fed starts to raise its policy rate, Reserve Bank Assistant Governor Christopher Kent said Thursday.

“Once that process is seen to be starting in earnest (or at least much closer to starting) it may well lead to a further appreciation of the U.S. dollar. The flip side of this would be a further depreciation of the Australian dollar which remains above most estimates of its fundamental value – particularly given the substantial declines in commodity prices over the course of this year,” Kent said.

In China, October data releases at 1330 local time (0530 GMT), include industrial output, retail sales and fixed-asset investment.

Industrial output is seen steady at 8.0% while January-October fixed-asset investment growth is expected to have fallen for a fourth straight month to just 15.9% year-on-year, the slowest pace of growth since December 2001.

October retail sales growth is expected to have held at September’s pace of 11.6% year-on-year.

Overnight, the dollar traded largely higher against its peers on Wednesday in a session void of major U.S. economic indicators, though a lackluster European industrial production report softened the euro and fueled demand for the greenback.

Earlier Wednesday, Eurostat, the European Union’s statistical office, reported that industrial production in the euro area increased by 0.6% in September, missing forecasts for a monthly gain of 1.0%. Industrial production in August fell by 1.4%.

Year-on-year, industrial production inched up 0.6% in September from a year earlier, beating expectations for a 0.2% decline and after dropping at a rate of 0.5% in the preceding month.

The lackluster report stoked concerns over the outlook for economic growth in the single currency bloc after weak Italian data on Monday fueled fears that its economy is falling back into a recession.

Meanwhile, the dollar saw demand due to ongoing expectations that the U.S. economy will continue to recover while European and Asian economies take steps to loosen monetary policy to ward off deflationary pressures.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.05% at 87.85.

On Thursday, the U.S. is to publish the weekly report on initial jobless claims.

Forex – Yen holds steady ahead of busy data day in Asia, China focus

Investing.com – The Japanese yen and Australian dollar held largely steady in early Asia Thursday ahead of a busy data day in China and the region with industrial production, retail sales and fixed-asset growth from Beijing.

USD/JPY traded flat at 115.54, while AUD/USD changed hands at 0.8718, up 0.02%. EUR/USD traded at 1.2435, down 0.02%.

Japan starts off at 0850 Tokyo time, with September machinery orders and October CGPI.

The forecast for private-sector core orders is a drop of 1.9% month-on-month, which would be the first drop in four months. For CGPI, the median forecast is a gain of 3.3% on year, the 19th straight year-on-year increase.

In Australia, the November MI inflation expectations release is due at 1100 Sydney time (0000 GMT). The previous reading was last up 2.6%.

Then, Reserve Bank of Australia’s assistant governor Christopher Kent is due to speak at 1230 (0130 GMT).

In China, October data releases at 1330 local time (0530 GMT), include industrial output, retail sales and fixed-asset investment.

Industrial output is seen steady at 8.0% while January-October fixed-asset investment growth is expected to have fallen for a fourth straight month to just 15.9% year-on-year, the slowest pace of growth since December 2001.

October retail sales growth is expected to have held at September’s pace of 11.6% year-on-year.

Overnight, the dollar traded largely higher against its peers on Wednesday in a session void of major U.S. economic indicators, though a lackluster European industrial production report softened the euro and fueled demand for the greenback.

Earlier Wednesday, Eurostat, the European Union’s statistical office, reported that industrial production in the euro area increased by 0.6% in September, missing forecasts for a monthly gain of 1.0%. Industrial production in August fell by 1.4%.

Year-on-year, industrial production inched up 0.6% in September from a year earlier, beating expectations for a 0.2% decline and after dropping at a rate of 0.5% in the preceding month.

The lackluster report stoked concerns over the outlook for economic growth in the single currency bloc after weak Italian data on Monday fueled fears that its economy is falling back into a recession.

Meanwhile, the dollar saw demand due to ongoing expectations that the U.S. economy will continue to recover while European and Asian economies take steps to loosen monetary policy to ward off deflationary pressures.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.03% at 87.87.

On Thursday, the U.S. is to publish the weekly report on initial jobless claims.

Dollar gains on lackluster European output barometer

Investing.com – The dollar traded largely higher against its peers on Wednesday in a session void of major U.S. economic indicators, though a lackluster European industrial production report softened the euro and fueled demand for the greenback.
In U.S. trading on Wednesday, EUR/USD was down 0.36% at 1.2429.
Earlier Wednesday, Eurostat, the European Union’s statistical office, reported that industrial production in the euro area increased by 0.6% in September, missing forecasts for a monthly gain of 1.0%. Industrial production in August fell by 1.4%.
Year-on-year, industrial production inched up 0.6% in September from a year earlier, beating expectations for a 0.2% decline and after dropping at a rate of 0.5% in the preceding month.
The lackluster report stoked concerns over the outlook for economic growth in the single currency bloc after weak Italian data on Monday fueled fears that its economy is falling back into a recession.
Meanwhile, the dollar saw demand due to ongoing expectations that the U.S. economy will continue to recover while European and Asian economies take steps to loosen monetary policy to ward off deflationary pressures.
The dollar was down against the yen, with USD/JPY down 0.19% at 115.55, and up against the Swiss franc, with USD/CHF up 0.28% at 0.9671.
The greenback was up against the pound, with GBP/USD down 0.88% at 1.5780.
The pound came under pressure after the Bank of England reported earlier inflation will likely remain below its 2% target in the near term and fall below 1% at some point during the next six months. The bank said it now expects inflation to take three years to return to its 2% target.
The bank said the outlook for inflation had weakened due to steep declines in commodity prices and the sluggish outlook for global growth.
The annual rate of U.K. inflation fell to a five-year low of 1.2% in September.
“When Bank Rate does begin to rise, the pace of rate increases is expected to be gradual, with rates probably remaining below average historical levels for some time,” the BoE said.
The bank said it continued to expect economic growth of 3.5% this year but pared its forecast for growth in 2015 to 2.9% from 3.1% in August.
Earlier Wednesday, the latest U.K. employment report showed that average earnings rose in the three months to September.
The Office of National Statistics reported that total earnings, including bonuses, rose 1.0%, up from a 0.7% increase in the three months to August.
Average weekly earnings, excluding bonuses, rose by 1.3% in the three months to September, after a 0.9% increase in the three months to August.
It was the first time since the onset of the 2008 financial crisis that average weekly earnings, excluding bonuses, outstripped inflation.
The number of people claiming unemployment benefits fell by 20,400 in October the ONS said, below expectations for a decline of 24,900.
The U.K. unemployment rate was unchanged at 6.0% in the three months to September, compared to forecast for a downtick to 5.9%.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.26% at 1.1306, AUD/USD up 0.30% at 0.8712 and NZD/USD up 0.77% at 0.7867.
The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.34% at 87.91.
On Thursday, the U.S. is to publish the weekly report on initial jobless claims.

Forex – GBP/USD dips after BoE trims inflation forecasts

Investing.com – The pound fell against the dollar on Wednesday after the Bank of England cut its inflation forecasts, which cast doubts on the strengthen of the country’s recovery.
In U.S. trading on Wednesday, GBP/USD was down 0.77% at 1.5798, up from a session low of 1.5794 and off a high of 1.5941.
Cable was likely to find support at 1.5788, last Friday’s low, and resistance at 1.5945, Tuesday’s high.
The pound came under pressure after the Bank of England reported earlier inflation will likely remain below its 2% target in the near term and fall below 1% at some point during the next six months. The bank said it now expects inflation to take three years to return to its 2% target.
The bank said the outlook for inflation had weakened due to steep declines in commodity prices and the sluggish outlook for global growth.
The annual rate of U.K. inflation fell to a five-year low of 1.2% in September.
“When Bank Rate does begin to rise, the pace of rate increases is expected to be gradual, with rates probably remaining below average historical levels for some time,” the BoE said.
The bank said it continued to expect economic growth of 3.5% this year but pared its forecast for growth in 2015 to 2.9% from 3.1% in August.
Earlier Wednesday, the latest U.K. employment report showed that average earnings rose in the three months to September.
The Office of National Statistics reported that total earnings, including bonuses, rose 1.0%, up from a 0.7% increase in the three months to August.
Average weekly earnings, excluding bonuses, rose by 1.3% in the three months to September, after a 0.9% increase in the three months to August.
It was the first time since the onset of the 2008 financial crisis that average weekly earnings, excluding bonuses, outstripped inflation.
The number of people claiming unemployment benefits fell by 20,400 in October the ONS said, below expectations for a decline of 24,900.
The U.K. unemployment rate was unchanged at 6.0% in the three months to September, compared to forecast for a downtick to 5.9%.
Meanwhile, the dollar saw demand due to ongoing expectations that the U.S. economy will continue to recover while European and Asian economies take steps to loosen monetary policy to ward off deflationary pressures.
Elsewhere, sterling was down against the euro, with EUR/GBP up 0.51% at 0.7875, and down against the yen, with GBP/JPY down 1.07% at 182.33.
On Thursday, the U.S. is to publish the weekly report on initial jobless claims.

Forex – EUR/USD dips on soft industrial output data

Investing.com – The euro slid against the dollar on Wednesday after a key European industrial output gauge missed expectations.
In U.S. trading, EUR/USD was down 0.23% at 1.2446, up from a session low of 1.2394 and off a high of 1.2499.
The pair was likely to find support at 1.2357, Friday’s low, and resistance at 1.2510, Monday’s high.
Earlier Wednesday, Eurostat, the European Union’s statistical office, reported that industrial production in the euro area increased by 0.6% in September, missing forecasts for a monthly gain of 1.0%. Industrial production in August fell by 1.4%.
Year-on-year, industrial production inched up 0.6% in September from a year earlier, beating expectations for a 0.2% decline and after dropping at a rate of 0.5% in the preceding month.
The lackluster report stoked concerns over the outlook for economic growth in the single currency bloc after weak Italian data on Monday fueled fears that its economy is falling back into a recession.
Meanwhile, the dollar saw demand due to ongoing expectations that the U.S. economy will continue to recover while European and Asian economies take steps to loosen monetary policy to ward off deflationary pressures.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.47% at 0.7872, and down against the yen, with EUR/JPY down 0.58% at 143.59.
The pound came under pressure after the Bank of England said inflation will likely remain below its 2% target in the near term and fall below 1% at some point during the next six months. The bank now expects inflation to take three years to return to its 2% target.
The bank added the outlook for inflation had weakened due to steep declines in commodity prices and the sluggish outlook for global growth.
The annual rate of U.K. inflation fell to a five-year low of 1.2% in September.
The bank also said it continued to expect economic growth of 3.5% this year but pared its forecast for growth in 2015 to 2.9% from 3.1% in August.
Also Wednesday, the Office for National Statistics reported that the number of people claiming unemployment benefits fell by 20,400 in October, below expectations for a decline of 24,900.
The U.K. unemployment rate was unchanged at 6.0% in the three months to September, compared to forecast for a downtick to 5.9%.
On Thursday, the U.S. is to publish the weekly report on initial jobless claims.

Dollar little changed vs. rivals in quiet trade

Investing.com – The dollar was little changed against a basket of other major currencies in quiet trade on Wednesday, after the Bank of England cut forecasts for growth and inflation, while comments by a Japan government official dampened expectations for a general election in December.
USD/JPY pulled back from Tuesday’s seven-year highs of 116.10, and was last down 0.53% to 115.15.
The yen found support after a Japanese government spokesman said earlier Wednesday that it is up to the prime minister to decide when to call elections.
The yen weakened on Tuesday amid speculation that Prime Minister Shinzo Abe could call a snap election in December. Speculation that the prime minister could postpone a proposed sales tax increase, scheduled for October 2015 also weighed.
A win for Abe would indicate continued support for his for his economic and fiscal policies, which call for a weaker yen.
GBP/USD dropped 0.59% and re-approached 26-month lows at 1.5825 after the BoE said inflation is likely remain below its 2% target in the near term and fall below 1% at some point during the next six months. The bank now expects inflation to take three years to return to its 2% target.
The bank said the outlook for inflation had weakened due to steep declines in commodity prices and the sluggish outlook for global growth.
The bank also said it continued to expect economic growth of 3.5% this year but pared its forecast for growth in 2015 to 2.9% from 3.1% in August.
Earlier Wednesday, the Office for National Statistics reported that the number of people claiming unemployment benefits fell by 20,400 in October, below expectations for a decline of 24,900.
The U.K. unemployment rate was unchanged at 6.0% in the three months to September, compared to forecast for a downtick to 5.9%.
Meanwhile, EUR/USD held steady at 1.2474, not far from last Friday’s 26-month lows of 1.2356.
In a report, Eurostat said industrial production in the euro zone increased by 0.6% in September, below forecasts for a gain of 1.0%. Industrial production in August fell by 1.4%.
Elsewhere, the dollar edged lower against the Swiss franc, USD/CHF down 0.08% at 0.9636.
The Australian, New Zealand and Canadian dollars were broadly higher, with AUD/USD gaining 0.59% to 0.8737 and NZD/USD rallying 1.14% to 0.7895. USD/CAD declined 0.32% to 1.1299 as investors awaited the Canadian government’s update on fiscal and economic conditions later in the day.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was steady at 87.64, close to Friday’s four-and-a-half year peaks of 88.31.

Forex – Euro remains moderately lower vs. dollar

Investing.com – The euro remained moderately lower against the U.S. dollar on Wednesday, as euro zone industrial production data released earlier in the day continued to weigh and the greenback continued to hold on to modest gains.
EUR/USD hit 1.2394 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2455, slipping 0.15%.
The pair was likely to find support at 1.2357, the low of November 7 and a 26-month low and resistance at 1.2568, the high of November 5.
Earlier Wednesday, Eurostat reported that industrial production in the euro zone increased by 0.6% in September, below forecasts for a gain of 1.0%. Industrial production in August fell by 1.4%.
Year-on-year, industrial production inched up 0.6% in September from a year earlier, compared to expectations for a 0.2% decline and after dropping at a rate of 0.5% in the preceding month.
The report added to concerns over the outlook for economic growth in the single currency bloc after weak Italian data on Monday fuelled fears that its economy is falling back into a recession.
Meanwhile, demand for the dollar continued to be underpinned by expectations that the recovery in the U.S. will outstrip other major economies.
The euro was higher against the pound, with EUR/GBP climbing 0.59% to 0.7881.
The pound came under pressure after the Bank of England said inflation is likely remain below its 2% target in the near term and fall below 1% at some point during the next six months. The bank now expects inflation to take three years to return to its 2% target.
The bank said the outlook for inflation had weakened due to steep declines in commodity prices and the sluggish outlook for global growth.
The annual rate of U.K. inflation fell to a five-year low of 1.2% in September.
The bank also said it continued to expect economic growth of 3.5% this year but pared its forecast for growth in 2015 to 2.9% from 3.1% in August.
Also Wednesday, the Office for National Statistics reported that the number of people claiming unemployment benefits fell by 20,400 in October, below expectations for a decline of 24,900.
The U.K. unemployment rate was unchanged at 6.0% in the three months to September, compared to forecast for a downtick to 5.9%.

Forex – USD/CAD lower ahead of Canada’s budget update

Investing.com – The U.S. dollar fell to more than one week lows against the Canadian dollar on Wednesday as investors awaited the Canadian government’s update on fiscal and economic conditions later in the day.
USD/CAD was down 0.32% to 1.1298 from 1.1333 late Tuesday, extending its pullback from the more than five year highs of 1.1465 hit last week.
Canadian Finance Minister Joe Oliver was due to present the fall fiscal and economic update later Wednesday, which was expected to show a small budget surplus.
In the budget earlier this year, the government said it expect to post a small deficit in the current year before posting a surplus of $6.4 billion for fiscal year 2015-16.
Demand for the Canadian dollar continued to be underpinned following Friday’s unexpectedly strong domestic employment report.
Oil prices remained lower ahead of the latest U.S. inventory data due out later in the day. Global oil prices have fallen sharply in recent months, pressure lower by the stronger greenback and concerns over ample supplies and slowing demand.
Crude oil is Canada’s largest export and the Canadian dollar is sensitive to fluctuations in oil prices.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.36% to 1.4088.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was little changed at 87.68, not far from Friday’s four-and-a-half year peaks of 88.31.