Tag Archives: U.S. dollar

No Surprises Expected At Today’s Fed Meeting

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

No Surprises Expected At Fed Meeting; Incremental Taper Set To Continue

The Federal Reserve ends a two-day meeting today with its 18.00 GMT statement, where it is expected to announce that it will cut back its quantitative easing, bond buying program by a further $10 to $45 billion a month. The Fed is likely to discuss its statement, the economy and the conditions that might lead it to raise short term interest rates. The central bank’s policy statement could be a little more upbeat on the margin, as recent economic data has supported the central bank’s conclusion that economic growth was only temporarily held down in the first quarter by winter storms. In March, the Fed statement said that the economy slowed in March “in part” because of the storms.

The data the Fed will review during its meeting will also interest the markets. First quarter GDP will be released and economists expect a super sluggish 1.2 percent rate of growth in the first quarter. On the upside, ADP also releases its private sector payroll report and expects a 210,000 increase in April payrolls, close to what is expected in the government’s Friday jobs report. Fed officials believe the economy is on track to slowly improve in the second half of the year and could be strong enough for the central bank to begin to raise short-term interest rates in the second half of 2015.

Dollar Up Versus Euro Following Soft German Inflation

The U.S. dollar rose against the euro on Tuesday after a softer than expected reading on German inflation added to mounting concern about the euro zone’s low inflation, which could initiate further easing from the European Central Bank if it continues. The euro EUR/USD fell to $1.3809 from $1.3851 late Monday. A preliminary reading on German HICP inflation showed an increase of 1.1% in April, missing estimates of a 1.3% rise in inflation. The central bank targets inflation of just under 2% in the medium term as a guidepost for its monetary policy. The ECB has maintained that its inflation expectations remain anchored, while pointing out that continued low levels of inflation could pose a risk to those expectations. ECB officials have highlighted the high level of the euro exchange rate as a factor weighing on inflation and have mentioned quantitative easing as a valid policy option. Most analysts agree that the euro likely won’t substantially lower from its current level until a concrete action is taken by the central bank.

Twitter’s Lackluster Results Leave Investors Twitchy

Twitter reported lackluster user and usage growth for the second consecutive quarter yesterday, deepening investor concerns about its struggle to gain a mass following. Twitter’s stock fell more than 10 percent after hours to $38.05, below its post-initial public offering low of $38.80 on November 25. More worryingly, the company said its 255 million monthly users, on average, appeared to check the service less frequently than a year ago. The results revealed slowing momentum at a company that exuberant investors just six months ago had argued could one day match Facebook’s scale. At its peak in December, Twitter enjoyed a $46 billion market capitalization on just $665 million of revenue in 2013, making it one of the world’s priciest stocks. Cracks began to show in February, when Twitter disclosed that user growth had fallen to its lowest rate in years, prompting Chief Executive Dick Costolo to promise tweaks to Twitter’s design. Investors will be closely monitoring Twitter stock prices as these new developments are implemented amid the latest disappointing earnings report.

That sums up today’s highlights! Don’t forget you can find us on Facebook, Twitter, Google+ and LinkedIn where you can find all the latest news and updates on the markets. We hope you have a profitable day on the markets.

UK Retail Sales Show Easter Rebound

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: GBP Retail Sales m/m @ 08.30 GMT

WHAT WE’RE WATCHING TODAY

As UK Retail Sales Show Easter Rebound, Will Carney Reconsider Policy?

UK retail sales is set for release early today. Data from the Confederation of British Industry shows that retail sales bounced back this month after a weak March, helped by sales from a later than usual Easter. With the current economic situation in the UK looking up, an upside surprise could raise expectations of policy tightening, and in turn, the strength of the sterling. Twelve months ago, the International Monetary Fund announced a UK growth forecast of 1.5% for 2014. At the beginning of this month, the IMF revised its estimate to 2.9% in 2014, making the UK the fastest growing economy in the G7. Data releases have compounded improving expectations, with production, trade balance and unemployment data all beating forecasts over the past two to three weeks, and the market is eagerly anticipating a potential near term interest rate hike. The latest MPC meeting minutes dampened these expectations somewhat, but if data continues to impress the BoE would likely have no choice than to consider some sort of policy tightening. For this reason, the market is watching the UK headline releases with a renewed focus.

Asian Shares & U.S. Dollar Struggle As Ukraine Tensions Escalate

Asian stocks struggled today, with fears of an escalating Ukraine crisis overshadowing upbeat U.S. economic data and U.S. tech shares. MSCI’s broadest index of Asia-Pacific shares outside Japan erased early modest gains and fell 0.3 percent. Japan’s Nikkei stock on the other hand, added 0.5 percent in choppy trade, after opening solidly lower amid disappointment over a failed attempt to reach a U.S.-Japan trade pact. On Wall Street overnight, stocks managed to shrug off the rising Ukraine tensions after Apple and Facebook posted upbeat results on Wednesday and U.S. economic data suggested that growth picked up pace in the second quarter. While brighter U.S. stocks and upbeat data supported the greenback, it still fell against a basket of major currencies, with the dollar index edging down to 79.760. But the U.S. dollar took back some lost ground against the yen, adding about 0.1 percent to 102.42 yen, while the euro also rose 0.1 percent against its Japanese counterpart to 141.65 yen. Against the dollar, the euro was steady on the day at $1.3832, despite comments from European Central Bank President Mario Draghi repeating recent concerns about euro strength and the ECB’s willingness to launch a “broad-based asset purchase program” if low inflation become entrenched.

Facebook’s Success In Mobile Continues To Soar

Facebook reported on Wednesday that it had made $2.5 billion in revenue in the previous three months and that it now has almost half the world’s Internet population logging in at least once a month. More than a billion people access the site monthly via mobile devices. The company is also doing better than expected when it comes to making money from mobile ads. For now, at least, its mobile ad business seems immune to the seasonal shifts in its desktop ad sales. The growth of mobile advertising has been explosive. Traders take note!

That sums up Friday’s highlights! Keep up to date with our regular posts on Facebook, Twitter, Google+ & LinkedIn today and over the weekend!

We hope you have a profitable day on the markets.

Currencies: Dollar, Euro, Aussie Latest

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: USD Crude Oil Inventories @ 14.30 GMT

WHAT WE’RE WATCHING TODAY

U.S. Dollar Strength Wanes, Aussie Slides, Euro & Other Major Currencies Subdued

Investors trimmed U.S. dollar positions on Tuesday after a two-week run higher, seemingly unmoved by a U.S. March existing home sales report that beat expectations but still showed a modest decline to a one and a half year low. Trading ranges remained narrow as Europe returned from the Easter holidays and faced uncertainty over whether European Central Bank policy will move toward more monetary stimulus. The euro gave up some of its modest gains, but remained positive against the greenback and yen. European Central Bank President Mario Draghi recently stated that the euro’s strength and very weak inflation in the euro zone, due partly to the strong exchange rate, are possible triggers for the central bank to ease monetary policy. The euro slipped to a two-week low before rebounding to trade slightly higher around $1.38. Investors await today’s euro zone ‘flash’ PMI surveys while the German IFO institute’s monthly reading of business sentiment in Europe’s largest economy is due Thursday. The Australian dollar, meanwhile, slipped today after data showed that Australian consumer prices rose less than expected in the first quarter, lessening the risk of a rise in domestic interest rates this year. The currency tumbled 0.9 percent to $0.9286, pulling away from a five-month high of $0.9461 set earlier in April. Other major currencies were subdued, with the euro edging up 0.1 percent to around $1.381, while the dollar eased 0.1 percent to 102.55 yen.

Gold Above 10-Week Low as Investors Look To Ukraine & U.S. Recovery

Gold traded above a 10-week low as improvements in the U.S. economy were weighed against tension in Ukraine and signs of higher demand in China. Assets in the largest exchange-traded product held at the lowest in 12 weeks. Bullion for immediate delivery was at $1,284.84 an ounce from $1,283.81 yesterday, when prices fell for a sixth day to $1,277.69, the lowest level since Feb. 11. While gold’s 12-year bull-run ended in 2013 on expectations the Federal Reserve would reduce stimulus as the world’s largest economy recovers, prices have rallied 6.9 percent this year as unrest in Ukraine spurred haven demand. In China, the biggest consumer, volumes for the benchmark spot bullion contract in Shanghai climbed for a second day to a five-week high yesterday.

Google’s Stellar Growth…

More technological developments for Google as the company announces that together with NASA, it is developing smart robots designed to fly around the International Space Station which will eventually take over some menial tasks from astronauts with the aid of custom-built smartphones. NASA is planning to attach smartphones to the flying robots to give them spatial awareness that would enable them to travel throughout the space station. The Android-based phones will track the 3D motion of the robotic spheres while mapping their surroundings in an effort to give mobile devices human-scale sense of space and motion. The new phones are scheduled for launch into space on June 10. Google says the technology may also have applications on earth, such as in gaming and navigation assistance for the visually-impaired. Traders may wish to keep an eye on Google stock prices.

That sums up today’s highlights! Keep posted with our regular Facebook, Google+, Twitter and LinkedIn updates for traders. We hope you have a successful day on the markets!

Jobless Claims Likely To Rise

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: USD Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Jobless Claims Likely To Rise

Data showing the number of Americans filing for first-time unemployment benefits is likely to show a slight gain in the latest weekly data. Forecasts reveal that weekly initial claims for regular state unemployment-insurance benefits will rise to 315,000 in the week that ended April 12, which is slightly up on 300,000 for the prior week. Some seasonal volatility may have accounted for last week’s drop in jobless claims to 300k which was the lowest level since May 2007, although layoffs are trending lower and hiring is gaining some momentum after being held back by the severe weather. The U.S. Labor Department will release the claims data today at 12.30 GMT.

European Shares Mixed, Dollar Falls As Yellen Pledges to Support Economy

European shares are set for a mixed open today, failing to continue a rally on Wall Street after Federal Reserve Chair Janet Yellen reaffirmed the central bank’s commitment to keep interest rates low. The FTSE is called up 1 point at 6,585, the German Dax is seen off by 8 points at 9,310 and the French CAC is seen down 3 points at 4,403. European bourses could see thin volumes today ahead of the Easter holiday weekend when many indexes are closed for a four-day weekend. In the U.S. stocks climbed after U.S. industrial production rose more than projected and Yellen reiterated that the central bank would keep up its backing of the recovery. Wall Street saw a strong close on Wednesday but those gains failed to translate to the rest of the globe. Asian stocks turned mixed following gains in this morning’s session as investors booked profits on the previous day’s rally. Investors in Europe will be monitoring events in Ukraine.

The U.S. dollar, meanwhile, fell against most of its Group of 10 peers. The dollar fell 0.2 percent to $1.3839 per euro and slid 0.2 percent to 102.03 yen, after rising 0.7 percent in the previous four days. The Japanese currency fetched 141.20 per euro from 141.24 yesterday. Financial markets in the U.S., U.K., Germany, Hong Kong, Singapore, Australia and New Zealand are among those that will be closed for a holiday tomorrow.

Google Misses Revenue Target As Trends Move Toward Mobile Advertising

Google Inc’s first-quarter revenue fell short of Wall Street targets and margins narrowed as the price of its ads continued to decline, highlighting the challenges Internet companies face as the world shifts toward mobile devices. Shares of Google were down 3 percent to $539.80 in afterhours trading on Wednesday, after initially sliding roughly 6 percent on the news. The number of “paid clicks” by consumers on Google’s ads increased by 26 percent in the first quarter, disappointing some analysts who had hoped for stronger volume growth. The average “cost per click” declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business. The world’s largest search engine, along with Facebook Inc and Twitter Inc, which are due to report financial results in coming weeks, are revamping their products and advertising business to account for smartphones.

That sums up today’s highlights! Remember that you can keep up-to-date with all the trading news and events for the day via our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets.

Gold Slips From 3-Week High But Will It Head Back Up?

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: Several today including EUR German ZEW Economic Sentiment 9.00, USD Core CPI m/m @ 12.30 & Fed Chair Yellen Speaks @ 12.45 GMT

WHAT WE’RE WATCHING TODAY

Gold Slips From 3-Week High But Will It Head Back Up?

Gold declined today from a three-week high as gains in equities and strong U.S. retail sales data offset safe-haven bids that were driven by heightened tensions in Ukraine. Bullion for immediate delivery fell 0.5 percent to $1,321.31 an ounce after reaching $1,331.20 yesterday, the highest since March 24. While gold benefited from the escalation in tension between Russia and the Ukraine, upbeat U.S. economic data has put a dampener on the safe-haven rally. Nevertheless, opinions still vary as to what lies ahead for the precious metal. Some traders have warned that the gains from safe-haven bids could quickly dissipate when the Ukraine crisis is resolved while others expect gold to shine even brighter as the situation in Ukraine grows more volatile. With the Fed reiterating its commitment to improving the labour market, they expect the recent rally in gold to continue.

Generally, geopolitical tensions tend to be good for gold, given the metal’s use as a safe-haven asset. But that’s not the only catalyst traders are looking at. Gold has also been buoyed by falling interest rates over the course of the month, which stems the attraction of bonds when they are compared with non-yield-bearing assets like gold. The recent decline in stocks has not hurt either. With relations between Russia and the West at their worst since the Cold War after Moscow annexed Crimea from Ukraine, traders will be closely scrutinising movements in the price of gold.

Dollar Nudges Higher After Positive US Retail Sales Data

The dollar nudged higher versus a basket of major currencies on today after U.S. retail sales data signaled a brighter outlook for the U.S. economy. U.S. retail sales recorded their largest gain in one and a half years in March, the latest suggesting growth is on course to spring back in the second quarter after an unusually severe winter. The dollar index edged up 0.1 percent to 79.791, holding above Monday’s low of 79.562. Against the yen, the dollar edged up 0.1 percent to 101.91 yen, staying above a three-week low of 101.32 yen set on Friday on trading platform EBS. Some caution over tensions in Ukraine may be helping to temper the dollar’s gains against the yen. Since early February, the dollar has mostly traded in a range of roughly 101 yen to 103 yen, although it spent some time above 103 yen from early to mid-March and also in late March to early April.

Rio Tinto Produces Record Iron-Ore Output as Global Supply Gains

Rio Tinto Group, the world’s second-largest mining company, said first-quarter iron ore production rose to a record, up 8 percent to 52.3 million metric tons from 48.3 million tons a year earlier. At the same time as reining in spending and cutting costs companywide, the company has been driving an expansion of Rio’s iron-ore unit, the biggest contributor to earnings. Prices plunged into a bear market during the quarter as inventories ballooned to the highest ever in China. The stock advanced 1.1 percent to A$63.97 in Sydney trading. The benchmark S&P/200 Index gained 0.4 percent. Rio Tinto has started the year with a series of performance records as it continues to drive productivity gains across its operations, presenting possible opportunities for traders.

That sums up today’s highlights! Keep in touch for all the latest trading news! Find us on Facebook, Twitter, Google+ and LinkedIn. 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.

Dollar Gains But Euro Weaker As ECB Considers Easing

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

Main Trading Event Of The Day: GBP Current Account @ 09.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Gains But Euro Weaker As ECB Considers Easing

The dollar gained against the euro on Thursday as investors bet the Federal Reserve will start hiking rates before Europe’s central bank, which has signaled it could loosen monetary policy soon. Fed Chair Janet Yellen said that the central bank could potentially raise rates after a period of about six months from the end of its bond-buying program. That puts the first hike as early as next spring and has surprised market participants. At the same time, the euro has been under pressure on rising expectations the European Central Bank will move to further ease monetary policy in an effort to stave off deflation. The euro EUR/USD changed hands at $1.3744, down 0.3% on the day. The shared currency has weakened since ECB officials this week signaled the central bank would consider negative deposit rates and a move toward outright quantitative easing. The U.S. dollar added slightly to gains after the Labor Department said the number of people who applied for first-time weekly jobless benefits fell by 10,000 to 311,000 in the week ended March 20, the lowest level in four months. Economists had forecast claims of 320,000.

Gold Near 6-Week Low; Heading For Second Weekly Loss

Gold recovered slightly on Friday after sharp overnight declines but the metal remained near six-week lows and on track for a second straight weekly decline, as improving sentiment over the U.S. economic outlook dented its safe-haven appeal. Bullion has dropped about $100 an ounce from a six-month high in the last nine trading sessions on strong U.S. economic data and comments by Federal Reserve chairman Janet Yellen that interest rates could rise in the first half of 2015. The sharp drop in prices in the last few days is expected to bring physical buyers back into the market and help gold prices consolidate although some analysts have expressed concern that there could be a further downside ahead for gold and that the metal will struggle in the face of weak demand and forecasted rising real interest rates in the U.S.

Is Social Media The Future Of Trading?

Stock prices are driven largely by mass psychology while social media enhances people’s ability to share opinions and news on a large scale. As more individuals join the social networks Facebook, Twitter, or LinkedIn, their role in spreading information will increase. Market information will be more easily shared amongst consumers of social media, decreasing the time it takes for potential investors to react to changing conditions. Simultaneously, the reaction time of potential investors to opinions will decrease. If there are rumours surrounding a stock or other investment and no factual information to check them with, social media users will consume the rumours as a substitute for fact. The mass psychology of the investing community will be more heavily dictated by social media. Looking to the future, traders will rely on social media for trading matters more and more.

That sums up Friday’s highlights! Keep up with all the trading news for the day via Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

China & Japan Data In Focus

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

Main Trading Event Of The Day: EUR German Flash Manufacturing PMI @ 08.30 GMT

Trading Event Of The Week: Key global leaders are meeting in the Hague this week for scheduled nuclear talks, however, the current Crimean crisis will provide the basis for major discussion and global focus. There is potential for Russia to be removed from the G8, furthering the geopolitical tensions and humiliating president Putin. If such a move is made, there will be significant reaction in the global financial markets.

WHAT WE’RE WATCHING TODAY

China & Japan Data In Focus This Week

In the markets this week, much of the focus will be on data from China and Japan for the latest insight on the health of Asia’s two biggest economies. China’s HSBC’s flash purchasing managers’ index (PMI) for March is released on Monday, followed by industrial profit data on Thursday. The HSBC PMI fell to 48.1 in March, compared with a final reading of 48.5 in February, staying below the 50-mark that divides contraction from expansion in the sector. It is the latest sign of weakness in the world’s second biggest economy. Favourability towards investing in Chinese stocks has diminished over the past four years among market analysts, leading almost every previous bull to lose interest. Analysts are now calling for deflation in the country where they once could only see unstoppable growth. Focus is now on a credit bubble and efforts by the PBOC to deleverage in order to reign in shadow-banking. The deflationary pressures China is experiencing are also linked to commodity prices. Despite the pessimism, some analysts believe that the four-year downtrend in the Shanghai Composite Index is coming to an end, rather than getting ready to accelerate, suggesting that fundamentals almost always look the worst before price turns.

In Japan, economic data at the end of the week will provide a snapshot of the economy and is likely to show continued reasonable growth albeit distorted by the pull forward associated with the coming sales-tax hike. Data is expected to show inflation in Japan rose an annual 1.3 percent in February, after a 1.3 percent rise in January. Retail sales are forecast to rise 3.2 percent in February from a year earlier, while February household spending is seen up 0.1 percent from a year earlier versus a 1.1 percent rise in January.

U.S. Dollar Needs Fresh Impetus To Continue Rally

The U.S. dollar held on to last week’s gains on Monday although there appears to be a lack of any impetus to extend them. The dollar index stood at 80.143, little changed from late New York levels on Friday, not far off a three-week peak of 80.354 set on Thursday. Investors snapped up the dollar last week as they swiftly brought forward the risk of a U.S. interest rate hike early in 2015 after Fed Chair Janet Yellen surprised markets by raising the prospect of such a move. Traders said further gains for the dollar now depend on the strength of coming data, with any acceleration in the U.S. economic recovery likely to bolster expectations of an earlier normalisation of Fed policy. A broader based rally in the USD requires validation of the Fed’s more aggressive interest rate forecasts from a continued step-up in U.S. data according to analysts.

Gold Extends Weekly Loss On Speculation Of Interest Rate Hike

Gold extended the biggest weekly retreat since November, falling half a percent on Monday on speculation that U.S. interest rates will increase next year, further denting the metal’s appeal as a hedge against inflation. A lack of activity in the physical sector also raised some concerns, with demand from China likely to be subdued because of a weak yuan and the discounted prices on the Shanghai Gold Exchange, which discourage imports. Gold eased $7.14 an ounce to $1,326.80 down from a six-month high of $1,391.76 hit early last week. Gold remains under pressure from the U.S. dollar as the U.S. Federal Reserve scales back its quantitative easing program and has suggested a rise in interest rates earlier than expected. The Federal Reserve announced its third $10 billion cut in monthly bond purchases last week as Chair Janet Yellen said benchmark interest rates may rise about six months after the asset buying ends, expected later this year. Investors are less concerned about the tapering part but more about rising U.S. interest rates with Yellen’s comments now at the back of investors’ minds until as 2015 approaches.

That sums up today’s highlights! As usual, you can keep up with events, news and trading tips on our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets!

Dollar Holds Biggest Advance in Seven Months

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

Main Trading Event Of The Day: USD Unemployment Claims @ 12.30 GMT; USD Existing Home Sales @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Holds Biggest Advance in Seven Months

The dollar held its biggest gain in seven months after Federal Reserve policy makers signaled that they’ll probably raise interest rates by the middle of next year. The dollar was trading at $1.3836 per euro after climbing 0.7 percent yesterday to $1.3833. The Federal Open Market Committee discarded a jobless-rate threshold for considering when to increase borrowing costs and said it will look at a wider range of data. Policy makers also reduced monthly bond-buying by $10 billion to $55 billion and added that it will slow purchases in further measured steps. Fed Chair Janet Yellen indicated a period of around 6 months between the end of the stimulus and the first rate increase. The rally in the U.S. dollar on the notion that U.S. interest rates could rise sooner rather than later may just be getting started, according to strategists and the outlook for the pace of policy tightening is faster than markets have priced in. The Fed’s announcement confirms the view that the rising-dollar trend will accelerate in the six-month to one-year term and that as long as upcoming U.S. economic data confirms the Fed’s confidence that recent weakness in data is related to unusually cold weather, the dollar should head higher. If data disappoints, that could trigger the dollar to unwind some of the gains, but data is expected to start improving and that means the dollar gains should be built on.

Gold Hovers Near 3-Week Low While Stocks End Lower On Fed

Gold hovered near three-week lows on Thursday as the U.S. dollar jumped on expectations the Federal Reserve could end its bond-buying programme later this year, tarnishing the metal’s safe haven appeal as a hedge against inflation. Although concerns about the Ukraine crisis could lend support, the bullion market was suffering from a lack of physical buying from top gold consumer China following a sharp drop in its currency. The market may recover and rally from here but analysts believe the upside will be limited and that gold could still fall back to about $1,300 an ounce. Sentiment was mixed following the move by the Fed to reduce bond-buying which could overshadow the impact from tensions in Ukraine.

Meanwhile, stocks eased off session lows but still finished firmly in the red on Wednesday after Federal Reserve Chair Janet Yellen suggested interest rate hikes would happen about six months after quantitative easing ends. The Dow Jones Industrial Average slumped 114.02 points to close at 16,222.17, initially tumbling nearly 200 points after Yellen’s rate hike comment. The blue-chip index had been trading in a lackluster 50-point range prior to the decision. The S&P 500 declined 11.48 points to finish at 1,860.77 while the Nasdaq fell 25.71 points to end at 4,307.60.

U.S. Existing Home Sales & New Claims For Unemployment Expected To Drop

Pending home sales have reportedly been weaker lately, with a 0.1% increase in January only just offsetting the 5.8% decline in December, suggesting limited momentum for completed sales. With fewer pending contracts in the pipeline, the pace of existing home sales is likely to have remained soft in February. Total housing inventory was up in January, although the number of homes for sale was still low, indicating that constraints on the supply side are also likely to continue to hold back the sales pace.

The number of new claims for unemployment benefits unexpectedly dropped 9,000 last week to a seasonally adjusted 315,000, the best reading since November. Economists expected a rise in claims to a level of 334,000. The four-week average fell 6,250 to 330,500, the lowest since early December with improved weather conditions apparently having contributed to the improvement in the job data. The number of people still receiving benefits after an initial week of aid fell 48,000 to 2.86 million in the week ended March 1, the lowest level since December. A small rise to 327,000 is forecasted.

That sums up today’s highlights! Stay in touch for all the latest financial news. Find us on Facebook, Twitter, Google+ and LinkedIn.

We hope you have a profitable day on the markets!

U.S. Data Reveals Interesting Picture Of Homeownership

A recently released report provides in-depth information regarding US household net worth. According to the Federal Reserve Bank, US household net worth grew by $3 trln and now sits at over $80 trln in total. This information purportedly paints a rosy picture for citizens in the US, but what does the data mean? Once a little digging is done, the facts are perhaps less flattering with the jury out on what all the data means. Banc De Binary Founder, Oren Laurent, shares his thoughts on the matter in this very informative article. Read more…