Currency News

Once again, mixed trading and jittery sentiment marks the European session, and undoubtedly the royal currency is the dominant victor in the equation. Investors are still wary over the prospects for further quantitative easing and monetary easing to stimulating waning growth. The outlook for the global economy remains the cornerstone for investors and the market is fluctuating today following downbeat earnings from Europe, which weighed negatively on equities and on the overall risk appetite. Nonetheless, amid the dark cloud smothering the market, rays of light did shine in UK skies and sterling emerged strongly after the better than expected data. UK reported 0.8% expansion in the third quarter, double the pace expected which casted further doubt and confusion over investors amid their debate over possibilities for APF expansion next week. Arch MPC dove Adam Posen argued for the APF increase to £250 billion citing the weak economic outlook and downside pressures on the recovery which will keep inflationary pressures in place. Yet, the...

Oct 26 - (IFR) - USD/SGD traded a 1.2910-1.2995 range in Asia on Monday; last at 1.2915. It was a whippy session but after a stuttering start the downside was back in play on the back of the change in the G20 communique and a Goldman's note talking big numbers required for QE. The Straits Times closed up a very modest 0.3% with the bourse weighed down by the SGX takeover offer for Australia's ASX (A$8.4bln). Sep CPI +3.7%yoy vs expected 3.6%yoy. Overnight USD/SGD made a minor new low at 1.2905 before moving into a sideways consolidation phase eventually closing in NY at 1.2930 after Wall Street gave back most of its opening gains. This morning has traded up to 1.2944 on Euro weakness following Fed member Dudley comments. Peter.Whitley@thomsonreuters.com

Asian stocks continue to drop to reach their lowest level in four five after the Chinese economy recorded its lowest growth pace this year within the fourth quarter, alongside a drop in financial stocks in the region due to expectations that the Chinese economy is on its way to continue using incentives in order to reduce lending operations and liquidity in markets. The MSCI Asian Stock Index lost 0.2% to reach 129.44 points as of 01:34 Tokyo. Nikkei 225 Index: The Nikkei 225 Index dropped 5.12 points by 0.05% to close around 9376.48 points; 71 shares rose while 136 fell, whereas 18 remained unchanged. The index recorded its highest around 9479.25 and lowest around 9326.78 points. As for other sectors that supported this drop, the industrial sector spearheaded the descend losing 4.13 points by 0.15%, alongside the basic  metals sector also dropping by 0.50% to lose 3.54 points; whereas the financial sector also lost 0.59% to record 3.43 points from the index. The share...

The United Kingdom continues to provide more surprises for the market supporting sterling's rally on eased fears of a double-dip recession as the recovery continued into the third quarter.  Today's Advanced GDP estimate for the third quarter showed that the economy expanded double the rate expected by 0.8% in the three months through September. Growth surely slowed from the second quarter's 1.2% strong growth yet still was much more optimistic than the weak 0.4% expected.  On the year, the economy expanded 2.8% following 1.7% in the second quarter and also beating estimates for 2.4% growth. 

SYDNEY/WELLINGTON, Oct 25 (Reuters) - The Australian dollar jumped on Monday after data showed producer prices rose much faster than expected in the third quarter, feeding speculation rising price pressures could lead to a rate hike in November. * Aussie AUD=D4 strong at $0.9906, up from $0.9856 seen before the data, and above New York's $0.9807. The rise was accelerated after stop-loss buy orders kicked in above $0.9888 and $0.9900. * Next resistance at hourly high of $0.9955, and support at $0.9831. More stop-loss buying would kick in if the Aussie breaks above $0.9950. * Data showed producer prices jumped 1.3 percent in the third quarter, more than twice the 0.5 percent rise forecast. That lifted prices up 2.2 percent from a year ago, well above forecasts for a 1.4 percent climb. * Even though producer...

The main moving sentiment in the market this week is the weekend G20 meeting and the new pledges from member nations which all sided to the disadvantage of the dollar. The Group of 20 finance leaders in South Korea pledged to avoid intervening in the market to weaken their currencies to gain trade advantages, which gave the dollar the bearish bias on expectations in the market that nations will refrain from unilaterally selling their currencies versus the dollar at least into next month when the nations’ leaders meet. This sentiment worked against the dollar and weakened it further adding to the quantitative easing prospects and weakening recovery outlook. The pledges rather calmed markets and eased the jitters seen recently over prospects for a new round of currency wars, and adding to that it supported expectations for China to move faster on the yuan revaluation which will also be good support for global trade and the recovery. The dollar was moving bearishly since this...

Japan's merchandise trade surplus widened to 687.0 billion yen during September, compared with the previous reading of 103.2 billion yen in August, which revised to 86 billion yen; nonetheless, median estimates were for a stronger rise in the balance at 710 billion yen.  Japan's adjusted merchandise trade balance inclined to 587.6 billion yen in September, compared with the prior reading 589.7 billion yen during August that revised to 570.2 billion yen, beating expectations for 495.5 billion yen. Furthermore, the Japan's merchandise trade exports rose 14.4% in the year ending September, compared with the previous 15.3%, below the expected 23.5. Also the Japan's imports (YoY) came at 9.9% in September compared with a prior reading of 17.9%, and still above the expected 7.4%.  

The world's leading economy saw its shares opening in green ahead of the Fed's Beige Book; a survey on Current Economic Conditions, although worries remain spread regarding the present stagnated recovery of the country having the Bank of America Corp was the most active U.S. stock while other actively traded shares include Citigroup Inc; Amylin Pharmaceuticals Inc; Alkermes Inc; and Wells Fargo & Co. The U.S. Dollar index, which measures the green Benjamin's performance versus six major currencies, declined to currently trade at 81.20 recording a high of 78.35 and a low 77.37, while gold is inclining faintly on the daily base to trade around $1335.76 an ounce and the black gold for instance plunged slightly to trade around $80.61 a barrel. The best performing sectors within the Dow were the Basic Materials next to Telecommunications and Consumer Services shares, The S&P 500's best performing sectors were the Basic Materials, Telecommunications and Utilities shares, the NASDAQ Composite index best performing sectors were...

 GYEONGJU, South Korea (Reuters) - Treasury Secretary Timothy Geithner suggested that he sees no reason for the dollar to sink further against the euro and the yen, saying these major currencies are "roughly in alignment," the Wall Street Journal reported on Thursday. In an interview with the newspaper, Geithner also emphasized that the United States was not pursuing a deliberate policy of devaluing the dollar. This echoed comments he made on Monday in Palo Alto, California, saying "No country around the world can devalue its way to prosperity." In the Journal interview, he referred to three groups of currencies. In one, he put countries with currencies "undervalued by any measure" and in the second he put emerging economies with flexible exchange rates that intervene or impose taxes to try to reduce risks. "In the third group, he put "the major currencies, which are roughly in alignment now," a suggestion that he sees no need for the dollar to sink more than it already has...