Category Archives: usd/jpy

USD Up After Fed Hints At Easing End

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Binary Options News : June 20, 2013

binary options news editorial caricature federal reserve chairman ben bernanke venn diagram from 6/20/2013USD Up After Fed Hints At Easing End

The highly anticipated end of the two Federal Reserve meeting, culminated in Federal Reserve hinting it could start winding down its asset purchase program by the end of this year with a possible total cessation of the $85 billion a month monetary easing policy by the end of 2014, all of which dependent on the improved economic conditions Fed Chairman Ben Bernanke predicted for 2013 and 2014, pointing towards a better economic outlook, with quarterly growth expected to be around 2.6% and unemployment to settle around the 6.5% level. Bernanke was adamant that the record low range of interest rates – 0 to 0.25% would be maintained until the unemployment rate, currently at 7.6% would fall to 6.55

US stocks fell strongly in the US trading session as investors digested a possible scaling back of the stimulus measures with the USD making gains on the news. helping sink stocks into the Asian trading session was China’s manufacturing activity weakening further in June, falling to a new nine month low. The HSBC Purchasing Managers’ Index (PMI) fell to 48.3 in June, down from May’s reading of 49.2. Readings below 50 indicate an economy in contraction and follows on from last weeks World Bank lowering its 2013 growth forecast for China from 8.4% to 7.7%

Stocks

Asian markets reacted to the Fed policy statements and the Chinese PMI with large falls in its stocks markets. Hong Kong’s Hang Seng dropped 2.10% and the Chinese Shanghai Composite fell 1.21%. The news also hit China’s largest trading partner – Australia – with Australia’s S&P/ASX 200 down 1.31%. Japan’s Nikkei 225 was 1.59% lower despite the USD/JPY trading higher.

Currencies

The USD made gains in overnight Asian markets against most of major currency rivals as Bernanke hinted towards the end of the asset purchase program valued at $85 billion a month. The EUR/USD was down 0.21%, the GBP/USD was down 0.18% whilst the USD/JPY was up 0.58%. There were also gains against the commodity linked cousins of the AUD – up 0.48% and the CAD – up 0.24%

Commodities

The commodity markets saw large falls as the Fed moved towards ending the stimulus programs by next year.The strengthened USD ensured many investors stayed away from the precious metals with Gold – the traditional inflationary hedge down 2.22% and Silver falling 2.59%. Profit taking in Crude Oil meant prices fell 1.74% in Asian trading with Natural Gas falling 0.42%

Today’s outlook

German and French manufacturing PMI figure stake centre stage this morning when European markets open, although it will be the digesting of the Fed news which is expected to fuel trading and high volatility today, ahead of key jobless figures released in the US later today.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com

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USD Rises as Asian Stocks Fall

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Binary Options News : June 12, 2013

USD Rises as Asian Stocks Fall

The Asian overnight markets saw the USD find some favour with investors who want more stimulus measures from the large central banks such as the Fed and the bank of Japan. The disappointment from yesterday, in particular with the announcements made from the BoJ yesterday were compounded by the release report showing Japanese core machinery orders falling 8.8% in April after analysts had been expecting a 8.2% decrease. Core orders also declined 1.1% on a yearly basis whilst separately, in another report, the BoJ reported that the Japanese Corporate Goods Price Index increased 0.6% for May after a flat reading in April.

The 0.6% increase had been expected by analysts but the machinery orders data is considered to be a key sign of capital investment and disappointed markets just a day after the BoJ concluded a meeting by failing to introduce new stimulus measures such as asset purchase programs, which are aimed at weakening the currency to boost recovery. The abstention caused the JPY’s largest single day pop in three years.

Stocks

The Chinese Shanghai Composite remains closed for a national holiday today but that didnt stop the Hong Kong Hang Seng Index falling 1.2% as Asian stocks were broadly lower. Japan’s Nikkei 225 fell more than 1% before rebounding towards the close of the Asian session to be just 0.23% lower. Australia’s S & P index fell 0.64% after the Aussie fell to a 33 month low against the USD in Tuesday;s trading. South Korea’s Kospi Index fell 0.18% after South Korean unemployment rose to 3.2% last month from 3.1% in April.

Currencies

In stable currency markets, the USD found itself in favour with investors as central bank moves disappointed. The USD was higher against most of its major currency pairs in overnight Asian trade with moderate gains of 0.13% against the EUR and 0,07% against the GBP. However, the significant movement was seen in the USD/JPY pairing which gained 0.83%, making the overall fall for the JPY 7% since its May high.

Commodities

The strengthened USD in Asian markets and strong profit taking, ensured falls in the commodity markets with Gold down 0.24%, Silver down 0.19% a and Crude Oil down 0.92%. Natural Gas also declined 0.48% as warm weather forecasts overshadowed supply data yesterday.

Today’s Outlook

After correctly forecasting the rising GBP against the USD yesterday, today’s attention turns towards Europe and the release of CPI and industrial production figures with mixed results expected throughout the morning. Later in the afternoon, the US Federal Budget Balance should drive the US trading session in what promises to be a strong days trade where one set of unexpectedly good or bad data release points can provide a strong profit opportunity for the keen eyed Binary trader.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com

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Rising Yen Hits Stocks

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Binary Options News : May 30, 2013

binary options news cartoon dollar running to u.s. gov't bailout finish line at cliff's edge

Rising Yen Hits Stocks

Asian stocks were lower last night, ending a small run of gains, following on the Japanese Yen trading a near 3 week high as the regional benchmark index heads towards for its first monthly decline for 7 months.

The Japanese Nikkei 225 appeared to be in free fall overnight, as the JPY rose 0.38% against the USD, making exports more expensive for Japanese companies and sending its stock market down 4.02% at time of writing, leading the falls in the Asian markets.

The risk on sentiment that was inspired by positive data from the US was all but reversed as yesterday, the OECD which represents 34 advanced economies, said in its twice-yearly Economic Outlook, the OECD said prolonged economic weakness throughout the Eurozone and Europe may harm the global economy. OECD Secretary General Angel Gurria: said “The situation remains particularly fragile in Europe” and called the European Central Bank to think about doing more to stimulate growth.

Stocks

The rally in stocks ended in Asia last night as fears of a rising Yen set off alarm bells for traders who gained on the recent large stock increases. Yesterday saw heavy falls for European Indices with the UK’s FTSE 100 falling 2% and Germany’s DAX falling 1.7%. Australia’s S & P Index fell 1.26% as its financials and mining shares traded lower. Hong Kong’s Hang Seng was down 0.89% and the Chinese Shanghai Composite dropped 0.61% after the International Monetary Fund reduced its growth forecast for China to 7.75% from 8%, whilst the OECD reduced its growth outlook for the worlds second largest economy to 7.8% from 8.5%.

Currencies

The USD traded mostly lower in Asian markets, with the notable exception of against the JPY, which the USD was up 0.45% despite fears that Japan’s massive quantitative easing program is not yet showing signs of wiping out deflation and on the BoJ comments. The USD found itself under pressure as investors cashed in on recent gains with overnight falls of 0.29% against the EUR and 0.33% against the GBP. The Aussie also gained 0.57% against the Greenback as profit taking fueled the currency markets.

Commodities

The fall in the US Dollar and the movement away from the stock markets saw some much needed gains in the commodity markets. Gold and Silver both made gains with Gold up 0.82% and Silver rising 0.43%, both aided by an increase in physical demand from China. Crude Oil was unchanged as a weaker USD balanced out lower demand concerns.

Today’s Outlook

A raft of key market driving data is released this morning when European markets including Swiss and Spanish GDP, Italian PPI and Euro PMI. Contractions are expected which may add pressure to the recent rally in the EUR. Later US GDP and and Jobless claims should be watched as key indicators of economic recovery in the US.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com

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Asian Stocks Down for 5th Day

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Binary Options News : May 27, 2013

Asian Stocks Down for 5th Day

three fish editorial business cartoon about asia from 5.27.2013The trading week kicked off with gains for the USD and stocks in Asia heading towards their 5th consecutive day of losses as the release of the Bank of Japan’s April meeting minutes showed that members are worried about the increase in bond yields caused by the aggressive monetary stimulus policies of the Bank of Japan (BoJ), whilst indicating that some of the BoJ members opposed the 2% inflation goal aimed to be reached within two years.

Also helping to send stocks down and start the week with the USD as a safe haven investment, was China’s President Xi Jinping signaling a tolerance for slower economic growth in the world’s second largest economy following on from US stocks capping their first weekly loss in over a month on speculation that the Federal Reserve will look towards reducing its bond purchasing program before the end of the summer.

Stocks

Japan’s Nikkei 225 was the big mover in Asian trading, down 2.25% on the release of the BoJ minutes. The Australian S&P/ASX 200 Index fell 0.51% whilst New Zealand’s NZSE 50 fell 1.11% despite a modest rise in the commodity markets overnight. There were gains, however, for the Hang Seng Index of Hong Kong – up 0.07% and the Chinese Shanghai Composite – up 0.11% following on from the National Bureau of Statistics reporting that the profits at Chinese industrial firms increased 11.4% tin Q1.

Currencies

The USD made moderate gains in most of its currency pairs, with the notable exception of the USD/JPY which fell 0.2% on the release of the BoJ minutes. The gains started to temper towards the end of the Asian trading session, but the US Dollar index, which is measured against a basket of 6 weighted currencies, was marginally higher at time of writing – up 0.02%. Elsewhere, the USD gained 0.2% against the Aussie as traders increased their overall bearish sentiment on the Australian Dollar.

Commodities

Gold and Silver both made gains as investors sought a safe haven away from Asian equities. Gold gained 0.32% and Silver was up 0.15%, whilst lingering global growth concerns helped send Crude Oil down 0.56%. Warmer weather forecasts and profit taking ensured Natural Gas fell overnight – down 0.57%

Today’s Outlook

National holidays in the UK and the US today should contribute towards a low volume trading session, especially with a quiet economic calendar in Europe also. However, keep an eye on the profit takers and bottom feeders to drive the markets today.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com

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Yen Lower and Gold Rebounds as Bank Of Japan Meets

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Binary Options News : May 21, 2013

japanese currency comic from may 21, 2013Yen Lower and Gold Rebounds as Bank Of Japan Meets

The Japanese Yen was lower in all of its 16 major currencies pairings as the Bank of Japan began a 2 day policy meeting. Asian stocks retreated from their 5 year high in a low volume trading session as many investors wait on the sidelines until the Fed Reserve statement tomorrow.

The Japanese Economy Minister Akira Amari said overnight that the strong yen is in the process of being corrected and that he wants the exchange rate to settle at a level more in-tune with Japan’s economic fundamentals. The Bank of Japan has implemented large scale monetary easing measures aimed at steering Japan from deflationary decline whilst boosting growth. This has caused the JPY to plunge to new lows against the USD not seen since the financial crash of 2008.

Stocks

Asian stocks were generally mixed in overnight trading with Japan’s Nikkei 225 posting a 0.07% increase as the BoJ meets today. Chinese trade conditions came under the spotlight as ministers in the EU accused China – the world’s second largest economy – of having a ‘free ride’ in trading. Chinese stocks were mixed on the whole after it agreed with India to further cooperation regarding their shared border. A US and China summit has also been scheduled for next month in the US. The Chinese Shanghai Composite gained 0.03% whilst Hong Kong’s Hang Seng Index dropped 0.26%.

Currencies

The USD enjoyed mixed fortunes in the currency markets as many investors await the outcome of various central bank meetings. The EUR/USD was up 0.07% whilst the USD/JPY gained 0.24%, as the Yen fell against all its major currency pairs on Yen correction talk. The Aussie gained 0.22% against the USD on intervention talk by the RBA and the Canadian Dollar fell 0.07% against its American cousin.

Commodities

The central bank intervention talk and investors snapping up nicely priced positions, helped Gold and Silver post a rebound in Asian markets. Following on from heavy falls yesterday, Gold gained 0.86% and Silver rose 0.92%. Crude Oil firmed on a strengthened USD and was up 0.05% whilst warmer temperatures being forecast saw Natural Gas decline 0.29%.

Today’s Outlook

A raft of key data from the UK dominates this morning’s economic calendar with better than expected U.K. economic data continuing to support the GBP which has traded higher against the EUR and USD of late. This afternoon, keen eyed investors will follow the words of FOMC Membar Bullard , SNB Chairman Jordan and BOC Governor Carney all very carefully, looking for signs of monetary policy action.

 

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Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments. For more about binary options trading, visit www.OptionsClick.com

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