Tag Archives: non-farm payrolls

Dollar Rallies On U.S. Jobs Growth

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

WHAT WE’RE WATCHING TODAY

Dollar Rallies On U.S. Jobs Growth

Job growth exceeded expectations following yesterday’s data as the unemployment rate fell to the lowest level for six years, creating a foundation for a stronger U.S. economic expansion. Payrolls rose by 288,000 workers following a 224,000 gain the prior month. The 1.39 million increase in employment over the past six months is the biggest over a similar period since early 2006.

Consequently, the dollar strengthened the most in a month, boosting speculation the Federal Reserve may bring forward interest-rate increases. The U.S. currency rose to a two-week high versus the yen while Australia’s dollar tumbled as the Reserve Bank governor said it was “overvalued.” The euro fell after European Central Bank President Mario Draghi reiterated that he’ll keep rates low. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, rose 0.2 percent to 1,007.05. It gained as much as 0.4 percent, the biggest intraday jump since June 2.The greenback strengthened 0.4 percent to 102.19 yen and touched 102.27, the strongest since June 18. Europe’s 18-nation shared currency declined 0.4 percent to $1.3610 and was little changed at 139.09 yen.

Dow Finishes Above 17,000 On Strong Payrolls Report

U.S. stocks rose on Thursday, lifting the Dow industrials above 17,000, after data showing the economy created a higher than forecast 288,000 jobs in June and the unemployment rate fell. After closing at records on Wednesday, both the Dow and S&P 500 continued their advance into uncharted terrain. After a 98-point jump, the Dow Jones Industrial Average ended up 92.02 points, or 0.5 percent, to 17,068.26. The S&P 500 added 10.82 points, or 0.6 percent, to 1,985.44, with industrials leading sector gains among its 10 major industry groups. Ending at a 14-year high, the Nasdaq advanced 28.19 points, or 0.6 percent, to 4,485.93.The Chicago Board Options Exchange Volatility Index, a measure of investor uncertainty, fell 4.6 percent to 10.32. For every three stocks falling, more than four gained on the New York Stock Exchange, where nearly 537 million shares. Composite volume approached 2 billion.

Euro Zone Retail Sales Stall As Households Feel The Pinch

Retail sales across the 18 countries sharing the euro were flat in May, missing expectations as consumers continue to curb their spending amid high unemployment. Eurostat released the data as members of the ECB’s governing council gathered in Frankfurt where no new stimulus measures are expected after the bank cut interest rates to record lows last month. According to Eurostat, the month-on-month volume of sales was stable in May compared to a 0.2 percent decrease in retail sales in April. Flat retail sales in May, coupled with a modest dip in euro zone consumer confidence in June from May’s 79-month high, reinforces suspicion that any improvement in euro zone consumer spending is more likely to be gradual than pronounced over the coming months. Euro zone unemployment was stable at 11.6 percent for the second consecutive month in May, down slightly from the 12 percent seen a year ago.

That sums up today’s highlights! Have a great weekend and stay in touch via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest trading news.

We hope you have a profitable day on the markets.

ECB: Market-Watchers Look to Draghi for Clarity

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Non-Farm Payrolls @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

ECB: Market-Watchers Look to Draghi for Clarity

A month after the ECB president, Mario Draghi introduced a varying range of fixes for the euro area’s faltering recovery, market-watchers are in disagreement about how long interest rates will stay near zero and remain unclear on the details of plans to boost lending. Draghi may use today’s appearance in Frankfurt as an opportunity to clarify the situation. As the Federal Reserve and the Bank of England work their way out of crisis-era support for their economies, the ECB continues to steer against the risk of a relapse. Draghi’s guidance on how he expects rates to develop over the next two to four years, if he decides to give any, will be crucial in bolstering investors’ optimism that the worst is truly over, while reassuring them that protection won’t be removed before they’re ready.

The euro is currently trading below $1.37, roughly where it was when the ECB met on June 5 but down from over $1.39 before the ECB flagged the cut in May. The ECB is keeping a close eye on the euro to gauge its impact on already low inflation. Euro zone inflation stood at 0.5 percent in June, well below the ECB’s medium-term target of just under 2 percent. Should the outlook for inflation deteriorate, Mario Draghi has said that the ECB would consider quantitative easing to keep borrowing costs low and boost spending.

Asia Stocks Fall Along With Gold; Dollar Gains Before Data

Asian Stocks fell from a six-year high, while precious metals dropped as the U.S. dollar gained versus its major peers before today’s jobs reports and a euro-area monetary-policy decision. The MSCI Asia Pacific Index slipped 0.2 percent while Standard & Poor’s 500 Index futures lost 0.1 percent. The Aussie slid 0.7 percent, trading at 93.78 U.S., cents after Reserve Bank of Australia Governor Glenn Stevens said investors are underestimating the chance of currency losses. Oil in New York fell for a sixth day, its longest slump since May 2012. Australia’s currency also slid as the country’s central bank governor said it was overvalued. The Aussie is more than just a few cents overvalued and the risk of a significant fall is being underestimated according to Stevens.

The U.S. Non-Farm Payrolls report comes after yesterday’s ADP data showed U.S. employment rose in June by the most since 2012, with more workers hired than economists projected. The European Central Bank meets today after enacting unprecedented stimulus last month, while in Asia, data on services industries is due.

Watch For Google’s Streaming Music Service…

With its Songza deal, Google could end up dominating other streaming music services if it becomes the default option on Android mobile devices due to Android’s dominance among mobile devices and Songza’s ability to curate and recommend new music to its users. Android devices make up nearly 62 percent of the U.S. market for smartphones, according to research as of May 2014. With the Songza move, Google pitches itself against Spotify, Pandora and Rdio as well as Apple, which acquired Beats Music and its streaming service, and Amazon, which recently launched a streaming music service for its Prime customers. The deal could be a win for Google’s advertising business. Keep an eye on Google stocks…

That sums up today’s highlights. It’s Non-Farm Payrolls day today so a busy day on the markets. Don’t forget you can stay regularly updated on events by visiting our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets!

Dollar Headed for Best Week Versus Yen Since April Before Payrolls

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Non-Farm Payrolls @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Headed for Best Week Versus Yen Since April Before Payrolls

The dollar headed for its biggest weekly gain since April versus the yen ahead of today’s U.S. Non-Farm Payrolls report which is expected to show that employers added more than 200,000 jobs for a fourth month as the labour market recovers. The euro was little changed today after jumping the most since March versus the dollar yesterday as the market rejected the European Central Bank’s unprecedented effort to weaken the single currency. The dollar was little changed at 102.34 yen having gained 0.6 percent this week, the most since the period ended April 18. The euro traded at $1.3657 after jumping 0.5 percent yesterday, the most since March 6. The Euro was little changed at 139.75 yen.

Meanwhile, the Dow and the S&P 500 ended at a new record on Thursday after the European Central Bank cut rates to record lows and pledged to do more if needed to fight off the risk of deflation. Investors are now focused on today’s U.S. payrolls report for May. It is expected to show job growth slowed last month and the unemployment rate ticked up, but not by enough to upset the view that the economy is bouncing back. The number of Americans filing new claims for unemployment benefits rose last week, but the underlying trend continued to point to a firming labor market.

Draghi Fights Deflation With Banks Rather Than Bonds

The banking system rather than the bond market is Marion Draghi’s chosen route as his best ally, for now at least, in the fight against deflation. The European Central Bank yesterday cut interest rates to unprecedented lows and its president unveiled measures to beef up lending for banks in a bid to revive inflation hovering close to a quarter of his target. With much hinging on whether banks will boost credit themselves, failure to spur consumer prices will leave Draghi with little option but to enter the uncharted terrain of U.S.-style bond buying. Some executives have more hope than confidence that Draghi’s current plan will work. The negative deposit rate is aimed at stemming unwarranted increases in money-market rates and weakening the euro, yet could backfire if banks retrench further or pass the cost on to customers. A risk of the new lending venture is that banks may pass on the money only to find companies can’t repay it which may mean that Draghi ultimately has no choice but to engage fully with QE.

Higher Coffee Prices Hit Consumers

The moment to hoard cheap coffee beans has passed. The price of coffee futures peaked in April and the higher commodity costs are now hitting consumers at the supermarkets. Coffee prices spiked after drought hit the crop in Brazil, the world’s largest grower, even though rains have recently eased some of the damage. Changes in the futures market don’t tend to show up in retail prices for months. In February, Arabica futures rallied by more than 20 percent to start the year. After reaching a high of $2.12 per pound in April, coffee futures prices have since cooled somewhat so there’s hope yet that retail prices will fall again, in time.

That sums up today’s highlights! We hope you have a profitable day on the markets.

G7 Powers Meet To Discuss Policy Issues Without Russia

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Trade Balance @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

G7 Powers Meet To Discuss Policy Issues Without Russia

The world’s leading industrialized nations will meet without Russia today for the first time in 17 years. President Vladimir Putin is being left out of the talks in retaliation for his seizure of Crimea and Russia’s part in destabilizing eastern Ukraine. The two-day Group of Seven (G7) summit will cover foreign policy, economics, trade and energy security. Energy security is an issue of particularly high sensitivity to Europe after months of tension with Moscow, which supplies nearly a third of Europe’s oil and gas. The decision to drop Russia from the group was taken by its other members the United States, Germany, France, Britain, Canada, Japan and Italy in March, after Moscow seized Crimea and annexed it, a move not recognized internationally. The Wednesday-Thursday summit will include discussions on foreign policy, including Russia and EU assistance to Ukraine, as well as Syria, Afghanistan, Mali, the Central African Republic and North Korea, officials said. Economic discussions on Thursday morning are expected to be dominated by trade, including ongoing EU/U.S., EU/Canada and EU/Japan free-trade negotiations, cooperation on tax avoidance and efforts to sustain the global economic recovery. Supporting growth and jobs remains the key priority for the G-7 members. Leaders are expected to call for continued and sustained growth in order to bring down unemployment, particularly among young people and the long-term unemployed.

Gold Trades Near Four-Month Low Before ECB Meeting & U.S. Jobs Report

Gold held near a four-month low as investors awaited the European Central Bank meeting tomorrow at which policy makers may add to stimulus along with a U.S. labour report which may back further cuts to the Federal Reserve’s bond purchases. Gold for immediate delivery traded at $1,245.19 an ounce from $1,244.95 yesterday. The metal fell to $1,240.73 yesterday, the lowest level since Jan. 31, before rebounding as the Standard & Poor’s 500 Index retreated from a record and the euro rose from a three-month low against the dollar. Friday’s Non-Farm Payrolls are forecast to show employers added 215,000 jobs in the U.S., just above this year’s average, backing the case for the Fed to further reduce asset purchases as the economy recovers.

Tesco Announces 3.7% Drop In Same-Store Sales

Supermarket chain Tesco has just reported a sharp fall in first-quarter sales, hurt by price cuts and subdued consumer spending. Industry price cuts have driven lower growth in recent months for the U.K’s big 4 supermarkets including market-leader Tesco. As yet, it is unclear whether these price cuts are part of normal industry price investment or something more material and the fact that the food commodity price index supports lower food inflation has not helped clarify the issue. Tesco shares closed at £3.34 on Tuesday, down 11 percent since the start of the year.

That sums up today’s highlights! Keep posted on all the day’s trading events via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets.

Dollar Subdued After U.S. Jobs Data

Here’s Monday’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets today:

WHAT WE’RE WATCHING TODAY

Dollar Subdued After Jobs Data, Euro Wary Of Bond-Buying Stimulus

Commodity currencies held onto solid gains early today as the dollar and euro fell by the wayside and lost ground to an otherwise soft yen. The U.S. dollar lost favour with investors after the U.S. jobs report failed to live up to the market’s high expectations, whilst the possibility of the European Central Bank launching its own bond-buying stimulus kept euro bulls at bay. Data last Friday showed the world’s biggest economy generated 192,000 jobs last month, just below economists’ estimate of 200,000 but well down from whisper numbers that had made the rounds in the markets. Traders said the dollar’s dip was a reflection of market positioning rather than any true weakness in payrolls. However, the dollar only slightly underperformed the euro, which came under pressure after reports added weight to possible bond-buying stimulus from the ECB. The euro fell to one-week lows against the yen at 141.30. Against the dollar, it stood at $1.3697, having edged off a five-week trough of $1.3672.

Gold Holds Gains On US Jobs Data

Despite the weak jobs report, data on Friday showed that investors had pulled money out of gold, raising the risk that the gains in prices might not last. However, gold held onto gains today following its biggest one-day jump in over three weeks as investor worries about an early U.S. interest rate hike eased when the nonfarm payrolls report failed to meet market expectations. Markets feared that a strong jobs report, which followed a recent string of good economic data, could prompt a tightening of U.S. monetary policy after Federal Reserve Chair Janet Yellen indicated last month that interest rates could rise in the first half of 2015. Low interest rates have been an important factor driving gold prices higher in recent years. Gold remained steady at $1,302.36 an ounce today, after gaining 1.2 percent on Friday - its biggest percentage increase since March 12 and close to a one-week high of $1,306.50 hit in the previous session.

Is Google Planning To Jump Into Wireless?

According to reports, Google is considering launching its own wireless service, likely to commence in some of the U.S cities where the company currently offers Google Fiber. The company had talks with Verizon early in the year about buying wholesale access to its networks, and then presumably selling it straight to consumers. Google previously had similar talks with Sprint. Although Google is poised to move into wireless broadband, its network is still tiny compared to major broadband providers but the company’s penchant for ambitious experiments makes it a definite possibility that it will attempt to penetrate the wireless market. Watch this space….and stock prices!

That sums up today’s highlights! Keep checking in via our social media channels for all the latest financial news and events of the day! We hope you have a profitable day on the markets.

Just A Minute!

Welcome to Friday’s ‘Just A Minute’ bringing you a 60 second summary what’s happening in the markets today:

Main Trading Events Of The Day: Several today including U.S. Non-Farm Employment Change, U.S. Unemployment Rate, CAD Employment Change & Unemployment Rate – all @ 13.30 GMT

WHAT WE’RE WATCHING TODAY

Will Bad Weather Dampen U.S. Jobs Report?

There is more uncertainty than usual surrounding January’s report, in some part due to the severe weather conditions recently which could depress figures but also due to the fact that the government will incorporate its annual benchmark revisions into the employment numbers for the past year. That could make some numbers look better and others worse than they’ve previously been reported. Expectations according to economists are that employers in the U.S. probably added more than twice as many workers in January as in the prior month and the unemployment rate held at a five-year low. Payrolls increased by 180,000 workers after a 74,000 gain in December that was the smallest since January 2011, according to the median forecast of 92 economists. The jobless rate held at 6.7 percent, the lowest since 2008, the survey also showed. In the meantime, gold has nudged higher with investors placing bullish bets ahead of the hotly anticipated jobs report.

Dollar Holds Gain Before U.S. Jobs Report As Euro Gains

The dollar held a gain versus the yen before today’s U.S. data which may show jobs growth increased in January from the slowest pace in almost three years thus fuelling speculation that the Federal Reserve will end asset purchases this year. The dollar traded at 102.07 yen as of 2:25 p.m. in Tokyo after rising 0.7 percent to 102.11 yesterday but has fallen against all but one of its 16 major peers this week. Meanwhile, Europe’s 18-nation currency was at $1.3589 after gaining 0.4 percent, the most since Jan. 23, to $1.3590. After concluding a policy meeting yesterday, ECB President Mario Draghi said that the euro zone is not plagued by deflation and that the central bank could take action to counter low inflation as soon as next month, when more data on the euro area’s economy will be available. The euro was steady against the U.S. dollar after rallying to a one-week high of $1.3619 on Thursday.

Apple Makes A $14 Billion Acquisition … Of Apple.

Over the past two weeks, Apple has purchased $14 billion, amounting to 3% of its own shares. The company was reportedly “surprised” by the drop in Apple’s stock after its earnings, viewing the buybacks as opportunistic. CEO Tim Cook said this buyback “means that we are really confident on what we are doing and what we plan to do.” Big share buybacks like this usually send a signal that a company believes it’s underpriced. The move has been described as the equivalent of Apple buying, “four Nests and a Motorola.” Whether this is a sign that Apple will shy away from making big acquisitions remains to be seen but according to Apple, it has no problem spending ten figures for the right company, for the right fit that’s in the best interest of Apple in the long-term. As of last quarter, Apple had $159 billion in cash.

That sums up today’s highlights. Remember to watch for those important earnings announcements later today. Keep in touch with us via Facebook, Google+ & Twitter for breaking news, educational information, trader tips and more. Trade only with Banc De Binary - the experts! We hope you have a profitable day on the markets.

Gold rallies as investors lose faith in dollar

Gold rallied back up to a near three-week high level as investors consider the implications the Non-Farm Payrolls which indicated that employers added fewer jobs to the U.S. economy in September than expected.

The precious metal, however, is till set to record its first annual drop since 2000, as earlier this year investors turned away from this economic safe-haven on the expectation of the American economy would improve and the Fed would begin to cut its $85 billion monthly bond purchases.

Economists now expect that policy makers will delay cutting bond purchasing until March 2014. The Fed’s next two policy meetings are scheduled for 29-30 October and 17-18 Dec.

Dollar falls after lower-than-expected NFP report

Following yesterday’s release of U.S. Non-Farm Payrolls which showed slow growth and suggested that the Fed will not be easing its stimulus plan, the dollar fell to a two-year low against the euro. The much-awaited report by the Labor Department which had been delayed by the U.S. government shutdown showed yesterday that employers had added fewer jobs in the American than economists expected.

The yen also saw a rise against all major counterparts as investors seek for alternative refuge assets. The yen can be seen strengthening in periods of global economic turmoil because Japan does not rely on foreign capital to fund its deficit.

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