Euro Headed for Weekly Decline Against Dollar, Yen on Greek Debt Concern

Posted by Forexsq 1271 days ago (
img - The euro headed for a weekly decline against the dollar and the yen as Greece and its creditors struggle to reach an agreement on a debt swap.

The greenback was headed for a weekly loss against most of its major peers before a report economists said will show U.S. employers increased payrolls in January. Japan’s currency traded within one yen of a postwar high versus the dollar,

Euro above $1.35 for first time in 13 months

Posted by Forexsq 909 days ago (
img The euro rally continued Wednesday, with the shared currency topping the $1.35 level for the first time since December 2011 and hitting its highest level versus the Japanese yen since April 2010. The euro EURUSD +0.3172% traded as high as $1.3516 and changed hands in recent action at $1.3505, up from $1.3490 in North American trade late Tuesday, as traders await data on fourth-quarter U.S. gross

Euro shows signs of life against US dollar, Surprise!

Posted by Forexsq 125 days ago (
img The euro is making a comeback, surprising trash-talking traders who had been predicting it would soon hit parity with the U.S. dollar.

It traded as high as $1.10 Tuesday, bouncing back from a 12-year low of $1.05 last week.

The euro's mini-surge is due almost entirely to Europe's economy finding its heartbeat again after the eurozone barely dodged a recession last year.

"Signs of improvement in the European economy and the weight of money flooding into European equity markets ... has triggered a savage correction," explained strategist Kit Juckes from Societe Generale. "Many of the euro short-sellers are running for cover."

Fresh data from Markit on Tuesday showed that business activity in the eurozone grew by the most in nearly four years in February. The euro moved higher immediately after the release.

Traders have been betting against the euro and buying the dollar for the last few months based on a combination of three factors that "are clear, and almost universall

Rising global growth expectations threaten dollar’s rally

Posted by Forexsq 165 days ago (
img The dollar traded flat against its rivals Friday as shifting growth expectations threatened the dollar’s seven-month long rally.

Recent weakness in U.S. data — January retail-sales figures slumped for the second month, and the Labor Department reported a surprisingly high uptick in weekly jobless claims Thursday — contrasted with stronger-than-expected growth in the eurozone economy, and improved growth forecasts from the Bank of England, to weigh on the dollar for a second session.

The ICE U.S. Dollar Index DXY, +0.01% which measures the dollar’s strength against a trade-weighted basket of six rival currencies, was up 0.1% to 94.21750 after sliding nearly 1% in the prior session.

“The recent moves in Forex markets have caught many people off guard,” wrote Angus Campbell, senior analyst at FxPro. “Perhaps not to the extent of the [Swiss National Bank] floor removal a month ago, but the dollar strength of last year and the first part of January has come to a grinding halt.”

Oil up more than $1 after Saudi's Asia price hike

Posted by Forexsq 113 days ago (
img Oil futures climbed more than $1 a barrel on Monday, after Saudi Arabia raised its prices for crude sales to Asia for the second month running, signaling improved demand in the region.

International benchmark Brent regained ground after tumbling as much as 5 percent on Thursday, when a preliminary nuclear deal was finally reached between world powers and Iran. More Iranian oil could enter global markets if that is followed by a comprehensive deal by June.

But expectations of an immediate increase in supply have been tempered as analysts warned a ramp-up in exports could take months and would likely not happen before 2016.

"While clearly a bearish headline, a final deal and full lifting of sanctions still faces a number of obstacles," Morgan Stanley analysts said in a note.

"Even if a final deal is reached, we do not expect any physical market impact before 2016," the analysts said.

Brent crude for May delivery LCOc1 touched a high of $56.90 a barrel and was up $1.50 fr

Asia up after dismal US jobs data, dollar pressured

Posted by Forexsq 113 days ago (
img Asian shares rose and the dollar steadied but remained under pressure on Monday, after a dismal U.S. jobs report led investors to pare bets the U.S. Federal Reserve would hike interest rates anytime soon.

Major European markets were closed from Friday to Monday for the Easter holiday, reopening on Tuesday.

Labor Department data showed U.S. employers added the fewest jobs in more than a year in March. The rise of 126,000 jobs was well below expectations for a gain of 245,000 forecast by a Reuters poll of economists.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.7 percent to push to its highest levels since September 2014. Japan's Nikkei stock average .N225 slumped 0.3 percent, though it pared earlier sharp losses as the yen gave up gains against the dollar.

U.S. stock markets were closed on Friday for the Easter holiday, but U.S. stock futures fell after the jobs data, suggesting a lower open on Wall Street later on Monday. U.S. S&P e-mini

New credit crisis warning

Posted by Forexsq 113 days ago (
img THE UK is likely to achieve little growth over the coming years and is now facing another financial crisis, potentially on a much bigger and worse scale than in 2008, says John Mills, Labour’s biggest private donor, in a forthcoming pamphlet.

Pointing to “dismally low levels of investment” and an “exceptionally large balance of payments and government deficits”, he argues that Britain “may be getting closer than is often realised to a number of critical tipping points which, if they materialise, could reinforce each other to produce a much more vicious downward spiral”.

Having previously argued that Labour risks losing the general election if it does not offer a referendum on Britain’s EU membership, Mr Mills rails against the single currency in a pamphlet to be published by the think tank Civitas later this month.

“There are very substantial obstacles to be overcome if the eurozone is to remain intact,” he says. “It is far from clear the euro will survive substantially in it

Treasuries Climb on Jobs as Stocks Futures, Dollar Fall

Posted by Forexsq 116 days ago (
img Treasuries climbed and the dollar weakened after worse-than-forecast U.S. payrolls bolstered the case for keeping interest rates lower for longer. U.S. stock futures tumbled amid concern economic growth softened in the first quarter.

The yield on 10-year Treasuries dropped 7 basis points to 1.84 percent at 12 p.m. in New York, reaching a two-month low. Standard & Poor’s 500 Index futures lost 1 percent and the Bloomberg Dollar Spot Index slid 0.8 percent. The MSCI Emerging Markets Index topped 1,000 for the first time this year in its biggest weekly gain since 2012. Markets across Asia, the U.S. and Europe were closed for holidays Friday.

Payrolls increased by the least since December 2013 and the jobless rate held at 5.5 percent. The Labor Department data capped a week of reports suggesting the economy is losing momentum, calling into question whether the recovery is strong enough to justify the Federal Reserve raising rates at the same time fueling speculation that signs of a

US Dollar tumbles on dismal March nonfarm payrolls number

Posted by Forexsq 116 days ago (
img The European session was quiet as there were no Eurozone data releases due to nearly all of Europe being closed for the Good Friday holiday. Despite the holiday, the US Labor Department released the March nonfarm payrolls report as is normal on the first Friday of every month.

Last month’s number disappointed and missed forecasts for a gain of 245,000 jobs. Instead the US economy added the fewest jobs since December 2013. Nonfarm payrolls increased by the seasonally adjusted 126,000 jobs in March .This was the first time that the nonfarm payrolls number fell below 200,000 in 12 months and was down from February’s revised 264,000 jobs. This was revised down from 295,000.

Meanwhile, the unemployment rate remained unchanged from February at 5.5% as expected. This was the lowest in more than 6-1/2-years.

The only upside to the employment report was the average hourly wage rate which rose 0.3% in March to $24.86.

Today’s nonfarm payrolls data comes after a weak ADP private payr

Greece says ready to make IMF payment on April 9

Posted by Forexsq 116 days ago (
img Greece will pay a loan tranche due on April 9 to the International Monetary Fund on time, its deputy finance minister said on Friday, seeking to quell fears of default after a flurry of contradictory statements on the issue in recent days.

Greece is fast running out of cash and its euro zone and International Monetary Fund lenders have frozen bailout aid until the new leftist-led government reaches agreement on a package of reforms.

That prompted the interior minister to suggest this week that Athens would prioritize wages and pensions over the roughly 450 million euro ($489 million) payment to the IMF, though the government denied that was its stance.

Euro zone officials then said Greece told them it will run out of money on April 9, which the finance ministry denied saying.

"We strive to be able to pay our obligations on time, Dimitris Mardas told Greece's Skai TV. "We are ready to pay on April 9."

Adding to the confusion, German magazine Der Spiegel quoted a finance

US added 126K jobs in March, jobless rate stays at 5.5%

Posted by Forexsq 116 days ago (
img The sputtering U.S. economy created just 126,000 jobs in March as bad weather, weak consumer spending and flailing corporate profits resulted in the worst report since December 2013.

Economists expected nonfarm payrolls to rise 245,000 in March, with the unemployment rate holding steady at 5.5 percent, according to Reuters. February's numbers were revised lower to 264,000 from the initially reported 295,000, while January's number fell from 239,000 to 201,000.

The total fell well short of the 269,000 average over the past year and was the first time in 14 months that the number dropped below 200,000.

However, the overall unemployment rate held steady at 5.5 percent, as a generational low in labor force participation helps keep the figure low. A separate gauge that includes those who have stopped looking for work as well those employed part-time for economic reasons—the underemployed—edged lower from 11 percent to 10.9 percent.

The jobs numbers come as both the economy and

NonFarm payrolls 126k in March vs expected 256k

Posted by Forexsq 116 days ago (
img nfp jobs reportU.S. employers added the fewest number of jobs in more than a year in March, which could heighten concerns over the recent slowdown in economic growth and delay an anticipated interest rate increase by the Federal Reserve.

Nonfarm payrolls rose 126,000 last month, the smallest gain since December 2013, the Labor Department said on Friday. The goods producing sector, which had been hurt by a strong dollar and lower crude oil prices, shed 13,000 jobs in March - the largest drop since July 2013.

The unemployment rate held at a more than 6-1/2-year low of 5.5 percent because people dropped out of the labor force.

"There's no question that the economy is showing the negative effects of the stronger dollar and the collapse in oil prices. Corporate profits have come under pressure, and hiring has been adjusted in response," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan.

Economists polled by Reuters had forecast p

US job growth weakest since 2013; unemployment rate steady

Posted by Forexsq 116 days ago (
img U.S. employers added the fewest jobs in more than a year in March amid signs the economy was starting to take strain from a strong dollar and lower oil prices, which could delay an anticipated interest rate increase from the Federal Reserve.

Nonfarm payrolls increased 126,000 last month, the smallest gain since December 2013, the Labor Department said on Friday.

The goods producing sector, which had been hurt by a strong dollar, shed 13,000 jobs last month, the largest drop since July 2013.

March's tepid increase in payrolls ended 12 straight months of job gains above 200,000, which had been the longest streak since 1994. In addition, data for January and February was revised to show 69,000 fewer jobs created than previously reported, giving the report an even weaker tone.

Economists polled by Reuters had forecast payrolls increasing 245,000 last month. The small job gains could fan fears that the recent weakness in economic activity could be more fundamental rather than t

Payrolls in U.S. Rose 126,000 in March, Least Since End of 2013

Posted by Forexsq 116 days ago (
img Employers in March added the fewest workers since December 2013 and the jobless rate held at 5.5 percent as companies sought to bring U.S. headcounts in line with an economy that throttled back at the start of the year.

The 126,000 increase was weaker than the most pessimistic forecast in a Bloomberg survey and followed a 264,000 gain a month earlier that was smaller than initially reported, the Labor Department in Washington said. The median forecast in a Bloomberg survey of economists called for a 245,000 advance. Average hourly earnings rose 2.1 percent from a year earlier.

Companies tempered the pace of the hiring as rough winter weather, tepid overseas markets and a slowdown in energy-related capital investment combined to sting the economy. Even with the moderation in March payrolls, persistent employment opportunities are keeping Americans upbeat and laying the ground for a rebound in spending.

“November to February payrolls were white-hot numbers so we may see a much

Nuclear deal means more Iran oil but just not this year

Posted by Forexsq 116 days ago (
img A framework accord to curb Iran's nuclear program forged on Thursday could eventually allow Tehran to reclaim lost ground in the global oil market. Yet the deal all but guarantees that cannot happen before next year.

By ensuring that sanctions remain intact until Western powers are satisfied Tehran is adhering to the terms, and giving negotiators until June 30 to hammer out a comprehensive agreement, the deal offers little chance for any significant increase in exports until 2016.

While global Brent oil prices tumbled as much as 5 percent on Thursday to $54 in anticipation of a deal that could allow Iran to begin selling more crude within months, traders later began weighing the timing of that return. Brent traded at more than $55 a barrel by day's end.

Verifying compliance by Iran, once the world's fifth-largest oil producer, will "likely take many months after implementation, which itself is likely to slip from the June 30 target," said Bob McNally, president of energy rese

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