Yen Advances as Slower U.S. Growth

The yen rose against most of its major counterparts after the U.S. economy grew less than forecast and Standard & Poor’s cut Spain’s credit rating, adding to concern Europe’s debt crisis is worsening.

The yen also gained amid concern new Bank of Japan stimulus won’t be enough to boost the nation’s growth. Higher-yielding currencies including New Zealand’s dollar and Mexico’s peso climbed versus the U.S. dollar after slower growth in first- quarter gross domestic product revived bets the Federal Reserve won’t be quick to abandon efforts to support the economy.

The BOJ decision “was fairly disappointing, so the temptation to sell the yen was weakened,” said Sebastien Galy, a senior foreign-exchange strategist at Societe Generale SA in New York. “Slightly disappointing data in the U.S., as long as it’s not too disappointing, is risk-supportive because you have hope for quantitative easing.”

The yen strengthened 0.7 percent to 80.45 per dollar at 12:39 p.m. in New York, extending its weekly rally to 1.3 percent. It reached 80.42, the strongest level since April 17. The Japanese currency advanced 0.4 percent to 106.60 per euro and touched 106.16, the strongest since April 18. The euro rose 0.2 percent to $1.3250, gaining 0.2 percent this week.

Snapshot (FXCM Desk) - (25th Apr, 2:00am)

Just sharing a quick snapshot of what FXCM are seeing over at their desk as of 25th April 2012, 2:00am (Singapore Time).

Terrific Tuesday!!!

JPY
The yen made impressive gains versus all 16 of its major currency counterparts in response to political instability in both Holland and France, which is decreasing the likelihood that the European debt crisis will be contained. The biggest gainers have obviously been safe-haven assets. The JPY climbed vs. the dollar and euro ahead of Dutch Prime Minister Mark Rutte speaking before parliament today, following his cabinet’s resignation yesterday. The JPY climbed 0.3 percent to 106.44 per euro. The USD/JPY pair has slid more than 0.3 percent this morning to 80.92 yen.

CAD
The Canadian dollar made impressive gains against a majority of its peers yesterday on speculation that better growth will lead to higher interest rates. However, the CAD has lost some steam this morning versus its U.S. and Japanese currency counterparts, as growing instability in Europe has increased demand for haven currencies. The USD/CAD pair has slid 0.1 percent in the latest trading to C$0.9904. Going short on the USD/CAD pair could yield high returns today.

AUD
The Australian dollar declined as bond yields sank and consumer inflation slowed in the first quarter. This has led many analysts to the conclusion that the central bank will decrease borrowing costs. The AUD/USD pair is trading lower by about 0.6 percent this morning at the $1.0258 level. The consumer price index rose 0.1 percent in the first quarter versus the 0.6 percent forecast. The RBA has signaled that it is willing to lower rates from 4.25 percent to bolster the Australian economy. The political uncertainty in Europe has led to limited demand for the Aussie. Therefore, opening Call options for the AUD/USD pair looks to be the wise choice among investors this Tuesday.

Global Economic Calendar (25-April-2012)

Global Economic Calendar for 25th April 2012
**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (24-April-2012)

Global Economic Calendar for 24th April 2012
**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (23-April-2012)

Global Economic Calendar for 23rd April 2012
**Time is with respect to Singapore Time (GMT+8:00)

Euro Weakens Against Dollar on Funding Concern

The euro weakened against the dollar and pared an advance versus the yen as concern that European nations face difficulty funding debt damped demand.

Europe’s shared currency fell as yields on Spanish 10-year benchmark bonds and French five-year debt rose at auctions, fueling speculation on credit downgrades. The dollar climbed versus the yen as Bank of Japan officials signaled they’ll keep acting to weaken the currency. The greenback advanced against all its major counterparts except the pound and the Taiwanese dollar as weekly U.S. jobless claims were higher than forecast.

“Auction results over the past two weeks show that European sovereigns are still able to place paper, but until there is underlying economic growth, investors are going to continue to demand steep yield premiums for the peripherals and even for France,” said Greg Anderson, the North American head of Group-of-10 nations currency strategy at Citigroup Inc. in New York. “People are building yen positions in anticipation of further easing next week.”

The euro declined 0.1 percent to $1.3106 at 9:26 a.m. New York time. The 17-nation currency was up 0.2 percent to 106.81 yen, after earlier rising as much as 0.7 percent. The dollar appreciated 0.3 percent to 81.49 yen.

Global Economic Calendar (20-April-2012)

Global Economic Calendar for 20th April 2012
 **Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (19-April-2012)

Global Economic Calendar for 19th April 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (18-April-2012)

Global Economic Calendar for 18th April 2012

**Time is with respect to Singapore Time (GMT+8:00)

Euro Drops Against Major Peers Before Spain Debt Auctions

The euro fell to less than $1.30 for the first time in two months as Spanish bond yields touched a 2012 high after a minister called on the European Central Bank to do more to stem debt-market turmoil.

The 17-nation currency dropped for a second day against the yen and reached the lowest since 2010 versus the pound. The yen strengthened against all of its 16 most-traded counterparts. China’s yuan weakened as the central bank widened the currency’s trading band. Higher-yielding currencies trimmed losses against the dollar after U.S. retail sales rose in March and yields on Spanish government securities pared increases.

“There’s still a hesitation with respect to trading in European bond markets,” said Nick Bennenbroek, head of currency strategy at Wells Fargo & Co. in New York. “The U.S. data was a little bit better than expected. It’s causing a minor risk-on rally.”

The euro fell 0.3 percent to $1.3040 at 9:59 a.m. in New York after dropping to $1.2995, the weakest since Feb. 16. The shared currency weakened 0.7 percent to 105.12 yen after declining 0.8 percent on April 13. The euro slipped 0.2 percent to 82.35 U.K. pence after reaching 82.10 pence, the lowest since September 2010. The yen rose 0.4 percent to 80.58 per dollar.

Global Economic Calendar (17-April-2012)

Global Economic Calendar for 17th April 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (16-April-2012)

Global Economic Calendar for 16th April 2012

**Time is with respect to Singapore Time (GMT+8:00)

My apology...

Hi there,

I do have to apologies for not posting anything for quite sometime due to certain predicament and events that is happening at the bank.

Been quite tied up but updates are done regularly at my Facebook page for those that have added me on Facebook.

Nonetheless, posting on this page will resume soon. As soon as things gets somewhere near sanity at my desk.

Till then, trade safely everyone.

Warmest Regards,

Ash Ariffin