Daily Market Analysis from NewForex Broker

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Forex News from New Forex: Gold on the threshold of the U.S GDP

On the threshold of the U.S GDP in the fourth quarter gold prices have slightly changed. Gold futures with the delivery in April are at $1,210.30. NewForex analyst Luigi Campo considers that a possible level of support will be at $1,190.50, resistance — at $1,219.80.

On Thursday the U.S Department of Labour provided information according to which the number of initial jobless benefits has risen by 31,000 to 313,000 last week. Consumer prices dropped by 0.7% in January but core consumer prices, which include food and energy costs, jumped 0.2%, although only a 0.1% rise was expected.

Gold prices have consolidated after the meeting of the U.S Federal Reserve where Janet Yellen claimed that at this moment there are no economic rationales for the interest rate increase.

As for other metals silver has lost 0.11% to $16.608 a troy ounce. Copper futures with the delivery in May lost ground and shed 0.14% to $2.687 a pound.

 

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Forex News from New Forex: The dollar opened the market with a decline

In the trading on Tuesday the buck streamed back after its 3-week high against the yen. The pair USD/JPY shed 0.39% to 119.68. The euro still holds low positions against the American currency.

The yen gained ground after the claim of Etsuro Honda, an economic adviser of the Japanese prime-minister. He considers that it’s necessary to put the introduction of extra measures for monetary easing on hold. According to Etsuro Honda, the current level of the currency pair dollar/yen is probably at the top of their «comfort zone».

The yen has gained a bit against the euro, the pair EUR/JPY slipped to 0.22% and is at 134.07. The euro has slightly climbed against the dollar on Tuesday, the pair EUR/USD picked up 0.15% to 1.1199. NewForex analyst Luigi Campo assumes that the upbeat data about the retail sales in Germany lent support to the euro, in January sales increased by 2.9%. But the opportunity for the euro growth was restricted as investors are expecting the meeting of the ECB on Thursday.

The dollar index, which measures the position of the U.S currency to the basket of six major currencies, lost 0.23% to 95.30.

 

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Forex News from New Forex: The pound gains ground against the U.S dollar

In the trading on Tuesday the pound gained ground against the greenback. The growth was supported by positive data in the construction sector.

The U.K. construction purchasing managers’ index surged in February to 60.1, in January it was at 59.1. The economists expected a decline to 59,0.

On Monday the buck rose after the upbeat data about the construction sector. Today the pair GBP/USD reached 1.5398 in the morning session in Europe which is its intraday high. Later the pair consolidated at 1.5371. A possible level of support for GBP/USD is 1.5328, resistance — 1.5460.

The pound strengthened against the euro, the pair EUR/GBP edged down to 0.11% to 0.7272.

 

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Forex News from New Forex: The review of currencies in the Asian market

In the trading on Wednesday the Aussie gained ground after positive data of the gross domestic product in the fourth quarter. The GDP of Australia edged up 0.5% as it was expected making in total 2.5% per annum.

In the Asian market the pair AUD/USD was traded at 0.7820 picking up 0.05%. USD/JPY changed its direction and reached 119.58 shedding 0.13%.

Overnight the greenback fell against the basket of major currencies. The markets overrated the dollar although there were not any significant economic reports during the day. The dollar index stopped at 95.40, which is 0.05% lower that in the previous session.

The U.S currency gained ground against the euro. The pair EUR/USD hit a 5-year low at 1.1163. The euro is still under the pressure as investors are in the anticipation of the coming ECB meeting on Thursday where as it is expected the details of the quantitative easing program, which starts in March, will be announced. The pair EUR/JPY is at 133.77.

 

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Forex News from New Forex: The European shares move in mixed ways

On Wednesday the European shares are moving in mixed ways as investors are in the expectation of the ECB meeting which will take place on Thursday.

The pan-European Euro Stoxx 600 Index keeps flat during the week. The recent economic data shows that the economic activity in Eurozone is expanding but with a slightly slower pace than it was expected. According to the latest report, the purchasing managers’ index (PMI) in February reached 53.3 a bit lower than the forecast.

The FTSE 100 index lost 23.07 points and is at 6866.25. The German DAX lost 42.71 points (-0.38%) and is at 11236.39. The French CAC 40 gained 0.51 (+0.01%) and is at 4869.74.

 

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Forex News from New Forex: The dollar climbs to highs against the euro and the yen

In the trading on Tuesday, March 10th, the greenback hit an 11-year high against the euro and an 8-year high against the yen.

The currency pair EUR/USD reached 1.0785 which is its low since September 2003. NewForex analyst Luigi Campo points out that the upbeat employment data from the USA supports the demand for the buck. It is expected that the Fed would raise the interest rate in the middle of 2015.

The representatives of the European Central Bank confirmed on Monday that they begin asset purchasing in the frames of their quantitative easing program.

The Bank of Japan prolonged its stimulus program in October 2014 worrying about the drop of oil prices which might decrease the inflation rate. The pair USD/JPY reached 122.03, a high since 2007.

The dollar index, which measures the position of the U.S currency towards the basket of six major currencies, breaks a record as well. It hit an 11-year high at 98.18.

The euro was higher against the yen on Tuesday. The pair EUR/JPY is at 131.64, although against the pound the euro hit another low, the pair EUR/GBP is traded at 0.7154, which is its 7-year low.

 

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Forex News from New Forex: Oil prices are falling again

In the trading on Tuesday Brent oil hit a 2-week low. Obviously it is explained by a rising dollar.

In London Brent oil with the delivery in April is being traded at $57.90 a barrel losing 48 cents or 0.83% since February 19. On the New York Mercantile Exchange crude oil with the delivery in April lost 34 cents or 0.67% and stopped at $49.67 a barrel. Spread between Brent and WTI is $8.38.

Market participants are in the anticipation of fresh data about the oil stockpiles in the USA, it will be released in the second part of the day. According to the last week data, the U.S. crude oil inventories rose to 444.4 mln. barrels, a high in 80 years. However, low oil prices lead to the decrease of rigs in the USA, already 63 of them were closed and now the total amount is 923.

 

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Forex News from New Forex: The euro keeps falling

On Wednesday the euro dropped to the lowest against the greenback since 2003. After the rise of the U.S currency, which started last July, the single currency lost about a quarter of its price and it does not show any sign of bottoming out. On Tuesday Deutsche Bank forecast the decline of the euro by 85 US cents to the end of 2017. A strong dollar might have a negative impact on earnings of international companies.

In the morning trading the euro slid to $1.0638. Following the single currency other European currencies are falling. The Norwegian and the Danish crowns are edging down, the Swedish crown has reached a 6-year low.

In Asia the situation is not better. Low data from China led to the decline of indexes. The MIAPJ0000PUS slipped to 0.4%. The Australian shares lost 0.5% in February, the Malaysian and Indonesian are falling as well.

The Japanese index Nikkei surged 0.3%, high machinery data contributed to the rise. NewForex analyst David Fineberg notes that the market worries about the possible side-effects of the low yen. The sliding yen, often acting as a positive factor for Japanese stocks, makes some investors feel concern about its negative influence on importers.

 

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Forex News from New Forex: Asian countries cut interest rates

The trading session in Asia started with the unexpected decision of the Bank of South Korea to cut the interest rate which had a positive influence on Asian indexes breaking a 7-week low of the previous trading session.

The Bank of South Korea cut the interest rate by 25 points to the record low of 1.75%. It’s the first cut in the last 5 months. Thus, South Korea joined other countries which decided to take advantage of the low inflation and ease their monetary policy in order to boost the economic growth.

The Bank of Thailand cut its interest rate on Wednesday, March 11th, which was a surprise as well. India has done it already twice in 2015. China, Singapore, Australia, Indonesia have also opted for the policy of monetary easing.

The Asia-Pacific index MIAPJ0000PUS shows a rise on Thursday surging 0.7% after a 7-week low. The Korea Composite Stock Price Index (KOSPI) first demonstrated a solid growth but at the end of the session lost 0.5%. The Japanese Nikkei picked up 1.5% on Thursday which is its 15-year closing high.

 

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Forex News from New Forex: The rise of the European shares amidst the dropping euro

In the trading on Thursday the European shares opened with the rise. The FTSEurofirst 300 index, which includes the shares of leading European companies, has surged 0.3% to 1,578.90. On Wednesday it picked up 1.5% hitting a 7-year high.

The British FTSE 100 index gained 0.8% amidst the rise of energy shares, the German DAX lost 0.1% after its record high, the French CAC 40 advanced 0.1%.

Last year the euro lost approximately 25% against the greenback, increasing the profit of European companies whose earnings are formed outside Eurozone.

NewForex analyst Sara Rosenstein claims that the fall of the euro by 10% against the currency basket may lead to a 6-8% profit of Eurozone, When the euro is 16% lower than other currencies, the profit may edge up by 10-13%.

The single currency started its decline after the decision of the European Central Bank to launch the quantitative easing campaign, thus highlighting the difference between the US and Eurozone policies.

QE (quantitative easing) has just begun in Europe but the effect of the program is already seen in the rapid decline of the euro.

 

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Forex News from New Forex: The review of the Asian market

The Japanese index Nikkei hit a new 15-year high in the trading on Friday, March 13th. Nikkei closed 1.4% higher than in the previous trading session and reached 19,254.25, which is its closing high since April 2000. Within a week the index advanced 1.5%, the rise was observed a fifth week in a row.

The broader Topix surged 0.9% to 1,560.33 which is its 7-year high. 30 out of 33 subsectors are in the positive zone. The JPX-Nikkei Index 400 gained 1.0% to 14,201.70.

The Chinese indexes reached their high in the last two months. The CSI300 index, which includes the stocks of leading companies in Shanghai and Shenzhen, edged up to 0.7% to 3,617.66. The Shanghai Composite also picked up 0.7% to 3,372.91.

Among the most active shares in Shanghai NewForex analyst Joseph Schwartz notes the shares of Bank of China (-0.5%) and of Industrial bank (+3.3%). The total amount of A shares traded in Shanghai was 32.7 billion shares, in Shenzhen — 17.9 billion shares.

 

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Forex News from New Forex: The greenback continues its rise

On Friday, March the 13, the U.S currency is rising against the basket of currencies, investors are in the anticipation of fresh data about the economic situation in the USA.

On March 12th there was some easing of the currency due to the report of retail sales which fell by 0.6% in February. The negative trend has been observed for the third month in a row. Economists predicted a 0.3% rise.

At the same time the number of citizens applying for the unemployment benefit decreased by 36,000 to 289,000 last week. NewForex analyst Luigi Campo states that it’s a sign of a strengthening U.S economy.

The dollar index gained 0.29% to 99.41. The currency pair EUR/USD lost 0.21% to 1.0613. The euro continues being under pressure as the ECB started buying securities in the frames of the quantitative easing program.

The dollar gained ground against the yen and the Swiss franc, the pair USD/JPY advanced 0.17% and is at 121.49, USD/CHF climbed 0.22% to 1.0047. The pound is lower against the greenback, the pair GBP/USD slipped to 0.10% and is traded at 1.4865.

 

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Forex News from New Forex:The Aussie gains ground against the greenback

In the trading on Monday, March 16th, the Aussie demonstrates positive dynamics. The currency pair USD/AUD is being traded at 0.7642 picking up 0.09%. The yen has climbed versus the U.S currency at 0.05% and is at 121.33. EUR/USD gained 0.19% and is at 1.0516.

Last week the dollar broke records hitting a 12-year high against the euro, difference of monetary politics between the Fed and the European Central Bank led to the decline of the single currency. The euro dropped after the QE programme was launched by the ECB pushing the bond yields of Eurozone to new lows.

Low bond yields make the euro less attractive to investors who are looking forward to the increase of the interest rate by the Fed later this year. The sentiment round the single currency was undermined by the shaky position of Greece.

The dollar index, which indicates the position of the buck to the basket of six major currencies, is at 100.48 edging down to 0,24%.

 

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Forex News from New Forex:The review of Asian markets

In the Asian trading on Monday the Japanese index Nikkei keeps flat and closed at 19,246.06. The high of the day was 19,349.20, investors were actively buying the shares of banks and domestic companies. Among the investors who made profit it’s worth noting drugmakers, rubber makers, railway and truck companies.

The broader Topix shed 0.1%. The JPX-Nikkei Index 400 slipped to 0.2%.

In Hong Kong the shares were rising amidst the gains of Chinese companies. Investors are expecting that China will ease its policy to improve the economic situation. However, NewForex analyst Joseph Schwartz points out the negative impact of the strengthening greenback on the stock market of Hong Kong.

The Heng Seng index picked up 0.5% to 23,949.55. The China Enterprises Index surged 0.9% to 11,813.78.

Among the most active shares in Hong Kong the following can be highlighted: China National Culture Group (+30.6%), Global Tech (+48.1%) and Universe International Holdings (+36.1%).

 

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Forex News from New Forex: The review of Asian markets

On Tuesday, March 17th, the Japanese index Nikkei hit a 15-year high amidst the rise of European and American shares. The rise was contributed by the expectation that Japanese companies could improve their return on equity. The Nikkei closed at 19,437.00, which is 1% higher than in the previous trading session, hitting a high of April 2000. The broader Topix picked up 0.8% and is at 1,570.50. The JPX-Nikkei Index 400 advanced 0.9% and is at 14,303.11.

In China the situation is the opposite, leading indexes are dropping. NewForex analyst David Fineberg assumes that investors are concerned about the rise of the interest rate in the USA and it’s possibly negative influence on the liquidity of the Chinese markets.

The Hang Seng shed 0.25% and is at 23,901.49. However, the China Enterprises Index managed to surge 0.2% to 11,837.78.

Among the shares that actively participated in trades the following can be highlighted: Ping Shan Tea (+12.5%), China National Culture Group (-16.5%) and South China Financial Holdings (+8.0%).

 

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Forex News from New Forex: The euro is gaining amidst the positive data from Eurozone

The euro strengthened against the greenback in the trading on Tuesday after positive data about the economic sentiment in Germany. The index of economic sentiment picked up 1.8% in Germany to 54.8 in March against 53.0 in February.

The index of economic sentiment of Eurozone reached a 13-month high at 62.4 in March against 52.7 in February. The inflation of consumer prices slipped to 0.3% in February against 0.6% in January which meets the expectations of analysts.

The consumer price index, which includes food, alcohol and tobacco costs, edged up to 0.7% last month which is higher than the 0.6% forecast.

In the morning trading in Europe the pair EUR/USD reached 1.0615, the session high, later the pair consolidated at 1.0606, advancing 0.36%. The possible level of support for EUR/USD is 1.0456 (Monday low) and the level of resistance 1.0717 (a high of March 11th).

The euro is higher versus the pound, the pair EUR/GBP rose 0.66% and is at 0.7172.

 

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Forex News from New Forex: The Aussie and the kiwi gain ground against the U.S currency

In the trading on Wednesday, March 18th, the NZ dollar climbed 0.11% against the greenback and reached 0.7314. The pair USD/JPY changed the direction and lost 0.04% stopping at 121.31.

It was reported on Tuesday that the housing in the USA considerably dropped, by 17.0% in February to 897,000 units in comparison with the figures of January (1.081 million).

The Aussie gained 0.06% against the American opponent. On March 17th the Australian currency received support from the Reserve Bank of Australia, it was announced that it is going to wait for further economic data before decreasing the interest rate.

The market participants are also in the anticipation of the Federal Reserve System report which is due to be held today, there might be heard some signals of the interest rate rise.

The Aussie was lower against the euro on Wednesday, the pair EUR/AUD surged 0.15% and is at 1.3930.

 

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Forex News from New Forex: The Asian markets hit new highs

The Japanese index Nikkei hit a new 15-year high in the expectation of the economic improvement and high shareholder returns. The Nikkei closed 0.6% higher than in the previous trading session getting to 19,544.48, a high since April 2000. The broader Topix advanced 0.8% to 1,582.46, the JPX-Nikkei Index 400 picked up 0.6% to 14,385.44.

The shares of Toyota Motor Corp gained 1.5% to 8,463 yen, Mitsubishi UFJ Financial Group rose 1.7%, SMFG edged up 0.7%.

In Hong Kong the Hang Seng index jumped 1.0%, although investors are concerned about the possibility of liquidity due to the rise of the interest rate by the Fed.

The Chinese CSI300 and the Shanghai Composite index advanced 2.0% and reached a 7-year high in the hope that Beijing will take further measures to improve the economic situation. The China Enterprises gained 1.2% to 11,981.97.

Among the most active shares in Hong Kong were the shares of Suncorp Tech (+5.2%), Solartech International (+21.2%), Ali Pictures (-1.9%). The total trading volume of companies included in the HSI index was 1.7 billion shares.

 

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Forex News from New Forex: The review of the Asian market

On Monday the Asian markets were confidently rising. The Japanese index Nikkei continued its rise, gaining 1.1% to 19,769.71. Thus, it refreshed a new 15-year high. NewForex analyst Joseph Schwartz points out a positive sentiment of the Japanese stock market.

The broader Topix picked up 0.7% to 1,592.25. The JPX-Nikkei Index 400 edged up to 0.8% to 14,467.45. The MSCI index, which includes Asian-Pacific stocks, advanced 0.4%.

The Chinese shares are rising the ninth week in a row. The CSI300 index, which includes the largest companies of Shanghai and Shenzhen, surged 2.0% and is at 3,972.06. The Shanghai Composite climbed 2.0% to 3,687.73. Among the most active shares in Shanghai the following can be mentioned: Bank Of China (+1.1%), Agricultural Bank of China (+1.4%) and GD Power (+4.9%).

In Shenzhen the companies with high gains were: BOE Technology (+2.5%) and TCL Corp (+1.4%). The total trading volume of A shares in Shanghai was 53,5 billion shares, in Shenzhen — 32.2 billion shares.

 

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Forex News from New Forex: Oil prices fall again

On Monday, March 23rd, the oil futures plummeted. On the New York Mercantile Exchange crude oil prices with the delivery in May slipped to $1.04 or 2.24% to $45.49 a barrel. In London Brent oil with the delivery in May lost $1.04 or 1.88% and is being traded at $54.28 a barrel. The spread between Brent and WTI is $8.79 a barrel.

On March 22nd the Oil Minister of Saudi Arabia said that the country is going to keep on their defending policy against the non-OPEC oil producers. Consequently, Saudi Arabia doesn’t want to change its oil strategy. NewForex analyst Luigi Campo states that if OPEC continues the production of about 30 mln. barrels of oil per day, then the oversupply of the market will reach 1.3 mln. barrels a day.

This year oil prices have been fluctuated one day declining due to the oversupply, another day increasing due to the strong dollar. The combination of the strong dollar and high interest rates will help to keep commodity prices under control in 2015.