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Dollar Trading Mixed Despite Positive Data

The dollar is turning in a mixed performance against its major rivals Thursday afternoon. Traders continue to react to yesterday’s Fed minutes, as well as some positive U.S. economic data this morning.

First-time claims for U.S. unemployment benefits showed a modest decrease in the week ended October 13th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims slipped to 210,000, a decrease of 5,000 from the previous week’s revised level of 215,000.

Economists had expected jobless claims to edged down to 212,000 from the 214,000 originally reported for the previous week.

A report released by the Federal Reserve Bank of Philadelphia on Thursday showed manufacturing activity in the Philadelphia area grew at a slightly slower rate in the month of October.

The Philly Fed said its diffusion index for current general activity edged down to 22.2 in October from 22.9 in September, although a positive reading still indicates growth in regional manufacturing activity. The index had been expected to drop to 20.0.

A report released by the Conference Board on Thursday showed a continued increase by its index of leading economic indicators in the month of September. The Conference Board said its leading economic index climbed by 0.5 percent in September after rising by 0.4 percent in August. The increase by the index matched economist estimates.

The dollar has climbed to over a 1-week high of $1.1470 against the Euro Thursday afternoon, from an early low of $1.1527.

Germany’s wholesale prices rose at a slower pace in September, data from Destatis revealed Thursday. Wholesale price inflation slowed to 3.5 percent from 3.8 percent in August.

The buck has risen to over a 1-week high of $1.3041 against the pound sterling this afternoon, from a low of $1.3131 this morning.

UK retail sales dropped more-than-expected in September reflecting the biggest decline in food store sales in almost two years, figures from the Office for National Statistics revealed Thursday.

Retail sales including auto fuel fell 0.8 percent month-on-month in September, due mainly to a large decline of 1.5 percent in food stores, which was the largest food store sales fall since October 2015. Economists had forecast retail sales to fall 0.4 percent offsetting August’s 0.4 percent rise.

Bank of Japan Governor Haruhiko Kuroda offered an upbeat view on Japanese economy and continued to back low rate strategy to attain inflation goal.

“Japan’s economy is expected to continue expanding moderately,” Kuroda said at meeting with regional branch managers.

Short and long-term interest rates will be kept at their current “very low” levels for a longer period, he said, adding that the central bank would only make necessary policy adjustments to sustain the economy’s momentum to achieve the price target.

The greenback reached an early high of Y112.728 against the Japanese Yen Thursday morning, but has since retreated to around Y112.180.

Japan posted a merchandise trade surplus of 139.6 billion yen in September, the Ministry of Finance said on Thursday. That exceeded expectations for a deficit of 45.1 billion yen following the 444.6 billion yen shortfall in August.

The material has been provided by InstaForex Company – www.instaforex.com

Treasury Announces Details Of Next Week’s Long-Term Securities Auctions

The Treasury Department announced the details of next week’s auctions of two-year, five-year, and seven-year notes on Thursday.

The Treasury said it plans to sell $38 billion worth of two-year notes next Tuesday, $39 billion worth of five-year notes next Wednesday and $31 billion worth of seven-year notes next Thursday.

The material has been provided by InstaForex Company – www.instaforex.com

U.S. Leading Economic Index Climbs In Line With Estimates In September

A report released by the Conference Board on Thursday showed a continued increase by its index of leading economic indicators in the month of September

The Conference Board said its leading economic index climbed by 0.5 percent in September after rising by 0.4 percent in August. The increase by the index matched economist estimates.

“The U.S. LEI improved further in September, suggesting the U.S. business cycle remains on a strong growth trajectory heading into 2019,” said Ataman Ozyildirim, Director and Global Research Chair at the Conference Board.

He added, “However, the LEI’s growth has slowed somewhat in recent months, suggesting the economy may be facing capacity constraints and increasingly tight labor markets.”

The advance by the headline index reflected positive contributions from eight of the ten indicators that make up the index, including average consumer expectations for business conditions, the ISM New Orders Index, and the interest rate spread.

Meanwhile, negative contributions from average weekly manufacturing hours and building permits limited the upside for the index.

The report also said the coincident economic index inched up by 0.1 percent in September following a 0.3 percent increase in August. The uptick reflected positive contributions from all four indicators that make up the index.

On the other hand, the Conference Board said the lagging economic index edged down by 0.1 percent in September after rising by 0.2 percent in August.

The modest drop by the lagging index partly reflected negative contributions from the average duration of unemployment, the change in consumer prices for services, the change in unit labor costs.

“Economic growth could exceed 3.5 percent in the second half of 2018, but, unless the momentum in housing, orders and stock prices accelerates, that pace is unlikely to be sustained in 2019,” said Ozyildirim.

The material has been provided by InstaForex Company – www.instaforex.com

Canadian Dollar Slides On Oil Price Decline

The Canadian dollar drifted lower against its key counterparts in the European session on Thursday, as oil prices slipped on demand worries following an overnight data showing a large build in U.S. crude inventories last week.

Crude for November delivery fell $1.01 to $68.74 per barrel.

Data from the U.S. Energy Information Administration showed that U.S. crude oil inventories rose by 6.5 million barrels last week.

That marked the fourth straight weekly build and was almost triple what analysts had forecast. In the previous week ending Oct. 5 also, there was a large build of 6.0 million barrels.

Gasoline stocks fell by 2.0 million barrels last week, compared to expectations for a draw of 1.07 million barrels, while distillate inventories dropped by 0.8 million barrels, compared to forecasts for a decrease of 1.3 million.

Further undermining the currency was a higher dollar, which was well-bid after the hawkish Fed minutes that supported expectations of a faster pace of interest rate hikes in the U.S.

The minutes from the Fed’s September meeting showed broad consensus for further interest rate hikes on the back of robust economic growth and strong labor market conditions.

The currency has been trading in a negative territory against its major opponents in the Asian session.

The loonie declined to a 5-week low of 0.9321 against the aussie, after rising to 0.9251 at 5:00 pm ET. The next possible support for the loonie is seen around the 0.95 level.

Data from the Australian Bureau of Statistics showed that the unemployment rate in Australia came in at a seasonally adjusted 5.0 percent in September.

That was beneath expectations for 5.3 percent, which would have been unchanged.

The loonie reversed from an early high of 1.4969 against the euro, declining to a 2-day low of 1.5027. If the loonie slides further, 1.52 is likely seen as its next support level.

Data from Destatis showed that Germany’s wholesale prices rose at a slower pace in September.

Wholesale price inflation slowed to 3.5 percent from 3.8 percent in August.

The loonie fell back to 1.3053 against the greenback, not far from a weekly low of 1.3056 hit at 2:45 am ET. This may be compared to a high of 1.3015 seen at 5:00 pm ET. The loonie is seen finding support around the 1.32 level.

Data from the Labor Department showed that first-time claims for U.S. unemployment benefits showed a modest decrease in the week ended October 13th.

The report said initial jobless claims slipped to 210,000, a decrease of 5,000 from the previous week’s revised level of 215,000.

The Canadian currency dropped back to 86.17 against the yen, from a high of 86.55 touched at 5:00 pm ET. This is short of few pips from a 2-day low of 86.14 hit at 2:15 am ET. On the downside, 85.00 is possibly seen as the next support for the loonie.

Data from the Ministry of Finance showed that Japan posted a merchandise trade surplus of 139.6 billion yen in September.

That exceeded expectations for a deficit of 45.1 billion yen following the 444.6 billion yen shortfall in August.

Looking ahead, U.S. leading index for September is due shortly.

At 12:15 pm ET, Federal Reserve Governor Randal Quarles speaks about the economic outlook at the Economic Club of New York luncheon.

The material has been provided by InstaForex Company – www.instaforex.com

Philly Fed Index Indicates Slightly Slower Growth In October

A report released by the Federal Reserve Bank of Philadelphia on Thursday showed manufacturing activity in the Philadelphia area grew at a slightly slower rate in the month of October.

The Philly Fed said its diffusion index for current general activity edged down to 22.2 in October from 22.9 in September, although a positive reading still indicates growth in regional manufacturing activity. The index had been expected to drop to 20.0.

The modest decrease by the headline index was partly due to a slowdown in new orders growth, with the new orders index slipping to 19.3 in October from 21.4 in September.

Meanwhile, the report said the shipments index jumped to 24.5 in October from 19.6 in September, pointing to a notable acceleration in the pace of shipments growth.

The number of employees index also rose to 19.5 in October from 17.6 in September, indicating a faster rate of job growth.

On the inflation front, the prices paid index dipped to 38.2 in October from 39.6 in September, while the prices received index climbed to 24.1 from 19.6.

The Philly Fed said expectations for the next six months remained optimistic, although the diffusion index for future general activity dropped to 33.8 in October from 36.3 in September.

On Monday, the New York Fed released a separate report showing the pace of growth in New York manufacturing activity accelerated by more than anticipated in October.

The New York Fed said its general business conditions index rose to 21.1 in October from 19.0 in September, while economists had expected the index to inch up to 20.0.

The material has been provided by InstaForex Company – www.instaforex.com

U.S. Weekly Jobless Claims Edge Down To 210,000

First-time claims for U.S. unemployment benefits showed a modest decrease in the week ended October 13th, according to a report released by the Labor Department on Thursday.

The report said initial jobless claims slipped to 210,000, a decrease of 5,000 from the previous week’s revised level of 215,000.

Economists had expected jobless claims to edged down to 212,000 from the 214,000 originally reported for the previous week.

Meanwhile, the Labor Department said the less volatile four-week moving average crept up to 211,750, an increase of 2,00 from the previous week’s revised average of 209,750.

Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, fell by 13,000 to 1.640 million in the week ended October 6th.

With the decrease, continuing claims dropped to their lowest level since hitting 1.633 million in August of 1973.

The report said the four-week moving average of continuing claims also dipped by 1,250 to a forty-five year low of 1.653 million.

The material has been provided by InstaForex Company – www.instaforex.com

Philly Fed Index Edges Down Less Than Expected In October

A report released by the Federal Reserve Bank of Philadelphia on Thursday showed manufacturing activity in the Philadelphia area grew at a slightly slower rate in the month of October.

The Philly Fed said its diffusion index for current general activity edged down to 22.2 in October from 22.9 in September, although a positive reading still indicates growth in regional manufacturing activity. The index had been expected to drop to 20.0.

The material has been provided by InstaForex Company – www.instaforex.com

U.S. Initial Jobless Claims Dip Slightly More Than Expected

First-time claims for U.S. unemployment benefits showed a modest decrease in the week ended October 13th, according to a report released by the Labor Department on Thursday.

The report said initial jobless claims slipped to 210,000, a decrease of 5,000 from the previous week’s revised level of 215,000.

Economists had expected jobless claims to edged down to 212,000 from the 214,000 originally reported for the previous week.

The material has been provided by InstaForex Company – www.instaforex.com

Dollar Little Changed Following U.S. Weekly Jobless Claims

At 8:30 am ET Thursday, U.S. weekly jobless claims for the week ended October 6 have been released. After the data, the greenback changed little against its major rivals.

The greenback was worth 112.50 against the yen, 0.99556 against the franc, 1.3100 against the pound and 1.1507 against the euro around 8:33 am ET.

The material has been provided by InstaForex Company – www.instaforex.com