Yen Declines as Signs of Global Recovery Damp Demand

The yen weakened, dropping most against its higher-yielding peers, as the latest round of international sanctions against Russia failed to damp speculation of a strengthening global economic recovery.

The euro fell for the first time in six days after German inflation accelerated less than economists forecast in April, increasing pressure on the European Central Bank to add stimulus. South Korea’s won advanced to the strongest level since 2008 after the nation said its current-account surplus widened. Russia’s ruble climbed after the sanctions over Ukraine failed to penalize the country’s major companies or banks.

The yen fell 0.2 percent to 102.70 per dollar at 8:42 a.m. New York time after dropping 0.3 percent yesterday. It was little changed at 141.92 per euro. Europe’s shared currency declined 0.3 percent to $1.3817 after touching $1.3879, matching the strongest level since April 11.

The yen declined 0.7 percent against the won, 0.6 percent versus the South African rand and 0.4 percent against the Norwegian krone.

German Inflation Misses Estimates as ECB Pressure Mounts

German inflation (GRCP2HYY) accelerated less than economists forecast in April, increasing pressure on the European Central Bank to add stimulus in the euro area.

Inflation, calculated using a harmonized European Union method, was 1.1 percent, up from 0.9 percent in March, the Federal Statistics Office in Wiesbaden said today. Economists predicted a rate of 1.3 percent, according to the median of 21 estimates in a Bloomberg News survey. Eurostat, the EU’s statistics office in Luxembourg, will release consumer-price data for the euro area at 11 a.m. tomorrow.

ECB President Mario Draghi has signaled he’ll use unprecedented measures from negative interest rates to quantitative easing if needed to avert the risk of deflation in the 18-nation currency bloc. Inflation in the region was 0.5 percent (ECCPEST) in March, the lowest rate in more than four years and well below the ECB’s goal of just under 2 percent.

The euro dropped after the report and traded at $1.3812 at 2:30 p.m. in Frankfurt, down 0.3 percent today. The yield on the 2-year German bund slid 11 basis points to 0.161 percent. The Stoxx Europe 600 Index was at 337.48, up 1 percent.

Consumer prices in the euro area probably rose 0.8 percent this month from a year ago, according to a separate Bloomberg survey before tomorrow’s data. Economic confidence in the bloc unexpectedly fell, while remaining near the highest level since 2011, a European Commission report showed today.

The ECB’s 24-member Governing Council gathers in Brussels next week and will announce its interest-rate decision on May 8. The Frankfurt-based central bank has kept its benchmark rate at a record low of 0.25 percent since November and the deposit rate has been at zero since July 2012.

Brazil Real Tumbles as Central Bank Avoids Holding Rollover Sale

Brazil’s real fell the most this year after the central bank refrained from calling an auction to roll over foreign-exchange swaps, adding to speculation that it is easing support for the currency.

The real declined 1.3 percent to 2.2436 per U.S. dollar at the close of trade in Sao Paulo, the worst performance among 16 major currencies tracked by Bloomberg. The drop was the biggest since Dec. 11, pushing the currency down 0.3 percent for the week.

The central bank avoided scheduling an auction for today to extend maturities on swaps contracts due next month, marking the first time since April 3 that it didn’t call such a sale. The sale of swaps under a program to support the real and limit import price increases has helped it rally 5.2 percent this year, the most among 24 emerging-market currencies.

The central bank, which usually sends statements calling rollover auctions the night before at 6:30 p.m. Sao Paulo time, declined to comment when contacted by Bloomberg News. It rolled over about $6.5 billion of the $8.7 billion in currency swaps due May 2. In March, the bank extended the maturity on about $7.5 billion of $10.6 billion of swap contracts due April 1. Brazil did sell $198.2 million of foreign-exchange swaps today.

In the interest-rate futures market, swap rates on contracts maturing in January 2015 climbed one basis point, or 0.01 percentage point, to 11 percent.

Euro Advances on Industry Growth; Aussie Falls

The euro rose the most in two weeks versus the dollar as manufacturing and services in the currency bloc expanded more than economists forecast, damping bets the European Central Bank will further ease monetary policy.

Australia’s dollar slumped the most in more than a month against the greenback after a government report showed inflation was less than analysts forecast. New Zealand’s currency fell before the central bank is forecast to raise interest rates. The Bloomberg Dollar Spot Index fluctuated as the U.S. is scheduled to report on new-home sales and manufacturing. A measure of market volatility slid toward a seven-year low.

The euro advanced 0.2 percent to $1.3836 at 8:54 a.m. New York time, after touching $1.3855, the highest since April 17. The shared currency fell 0.1 percent to 141.58 yen, snapping a six-day gain. Japan’s currency rose 0.3 percent to 102.33.

JPMorgan Chase & Co’s Group of 7 Volatility Index dropped to 6.56 percent, a second daily decline, approaching the record low of 5.73 percent reached in June 2007. It is down from a record high 27 percent in October 2008, shortly after the collapse of Lehman Brothers Holdings Inc.

Dollar Gains 7th Day as Economic Data Signal Growth

The Australian dollar rose the most in two weeks against the U.S. currency before a government report tomorrow that economists said will show inflation accelerated, boosting speculation interest rates will increase.

The Aussie gained versus all of its 16 major counterparts. The yen strengthened for the first time in eight days against the dollar as China’s largest manager of bad debt said the country’s bad-loan ratio increased “significantly,” spurring demand for safe-haven assets. The Bloomberg Dollar Spot Index snapped a seven-day gain before a report forecast to show U.S. home sales fell in March.

The Australian dollar gained 0.4 percent to 93.63 U.S. cents at 9:03 a.m. London time, the biggest advance since April 8. The yen strengthened 0.1 percent to 102.49 per dollar and rose 0.1 percent to 141.47 per euro. The euro was little changed at $1.3803.

The trimmed mean gauge of Australian consumer prices was 2.9 percent in the first quarter from a year earlier, up from an inflation rate of 2.6 percent in the previous three months, according to the median forecast of economists in a Bloomberg News survey before the Bureau of Statistics issues the data.

The RBA has said inflation is expected to stay consistent with its target over the next two years. The central bank reiterated in minutes published last week of its April 1 meeting that the most prudent course is likely to be a period of interest rates on hold. It targets average annual inflation of 2 percent to 3 percent.

Yen Falls Versus Major Peers After Japan’s Trade Deficit Widens

The yen fell versus its 16 major peers after a report showed Japan’s trade deficit widened more than forecast last month.

The dollar held its biggest weekly advances in a month versus the yen and the euro ahead of leading U.S. economic indicators that may back speculation the Federal Reserve will remove stimulus this year. New Zealand’s dollar remained lower before the Reserve Bank sets policy on April 24. Currency volatility sank to an almost seven-year low on April 17, the day before financial markets from Sydney to New York were closed to observe Good Friday.

The yen fell 0.2 percent to 102.63 per dollar as of 12:04 p.m. in Tokyo from April 18, when it completed a 0.8 percent weekly slide, the biggest since the five days to March 21. Japan’s currency dropped 0.2 percent to 141.74 per euro. The dollar traded at $1.3811 per euro from $1.3813, following a 0.5 percent weekly gain.

Financial markets in the U.K., Germany, Hong Kong, Australia and New Zealand are among those closed for a holiday today. The U.S. markets reopen after being shut on April 18.

Canadian Dollar Falls as Central Bank Signals Slow Export Growth

The Canadian dollar touched its lowest point in over a week after the Bank of Canada maintained a neutral bias on interest rates and said a forecast pickup in business investment has been slow to materialize.

The currency fell against most of its major peers as the central bank held its benchmark interest rate at 1 percent for the 29th straight policy meeting, as forecast by all 18 economists in a Bloomberg News survey. The economy’s recovery “hinges critically” on a shift in demand from indebted consumers to exports and business investment, which will be aided by a weaker Canadian dollar and rising U.S. orders, the bank said in a statement today.

The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, depreciated as much as 0.4 percent to C$1.1024 per U.S. dollar, the weakest since April 4, before trading at C$1.1007 at 11:19 a.m. in Toronto, down 0.3 percent. One loonie buys 90.85 U.S. cents.

The Canadian dollar has been the worst-performing of the greenback’s 16 major peers this year as shifts in the Bank of Canada’s outlook prompted bets it would signal a need for easier monetary policy to spur inflation and boost exports.

Forex Spot (Trade Done) 14 APR 2014

Forex Spot - Trade Done 14 APR 2014

Long position was opened with GBP/JPY on 14 Apr 2014 at 10:15am (SG Time).

Entry price at 169.82, Stop Loss at 169.40 and Target Profit at 170.80.

Trade closed by Target Profit trigger on 16 APR 2014 at 8:49am (SG Time). 97pips profit.

Binary Options (Trades Done) 15 Apr 2014

Binary Options - 15 Apr 2014

Tough night, 6 done deals.

3 wins, 2 lose, 1 break-even

(3 x 70%) + (1 x 0%) - (2 x 100%) = 210% + 0% - 200% = 10% Profit (Based on per trade size)

Stamina depleting, I am out.

Binary Options (Trades Done) 14 APR 20114

Binary Options - 14 Apr 2014

5 Done Deals: 3 Wins, 1 Break-even, 1 Lose

(3 x 70%) + (1 x 0%) - (1 x 100%) = 210% + 0% - 100% = 110% Profit (Based on per trade size).

I am out for tonight.

Dollar Snaps Five-Day Losing Stretch Amid Drop in Risk Appetite

The dollar ended five days of losses against a basket of its major counterparts as investor risk appetite shrank and global stocks dropped.

The Bloomberg Dollar Spot Index rose from almost a five-month low as U.S. equities declined. The Swiss franc gained versus most major peers, while Brazil’s real pared a fourth weekly advance. Futures traders turned bullish on the Australian dollar for the first time in 11 months.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, rose as much as 0.3 percent to 1,007.65 before trading at 1,006.46 at 5 p.m. in New York, up 0.1 percent. It sank yesterday to 1,004.01, the lowest since Oct. 30. The gauge fell 1 percent this week.

The dollar was little changed at $1.3885 per euro, dropping 1.3 percent this week, the most since the five days ended Sept. 20. The U.S. currency gained 0.1 percent to 101.62 yen, paring a weekly decline to 1.6 percent. The yen depreciated 0.1 percent to 141.13 per euro.

The Standard & Poor’s 500 index of U.S. stocks fell 1 percent, and the MSCI World Index dropped 1.1 percent. Equities declined amid concern that company earnings are failing to justify rising share prices.

Yen Rises to Three-Week High on China Exports

The yen gained to the strongest in three weeks against the dollar as an unexpected decline in Chinese exports revived demand for safer assets after the Federal Reserve damped bets of raising interest rates.

The dollar rose from a five-month low against a basket of peers as the smallest number of Americans since before the last recession filed applications for unemployment benefits last week. Sweden’s krona slumped after a government report showed consumer prices dropped twice as much as economists predicted. The Australian dollar increased on jobs gains.

The yen advanced 0.4 percent to 101.57 per dollar as of 10:55 a.m. in New York after appreciating to 101.42, the strongest level since March 19. Japan’s currency gained 0.2 percent to 140.99 per euro. The dollar fell 0.2 percent to $1.3880 after sliding to $1.3883, the weakest since March 19.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major counterparts, fell 0.1 percent to 1,004.94. It earlier slid to 1,004.08, the lowest level since Oct. 30.

Dollar Falls to Lowest in 5 Months as Emerging Currencies Gain

The dollar dropped to the lowest level in more than five months against a basket of peers as a decline in currency volatility spurred investors to seek out higher-yielding assets.

The U.S. currency fell for a second day against the euro after a U.S. job report last week showed employers added fewer workers than economists forecast, damping speculation the recovery is gaining momentum. Australia’s dollar strengthened along with the currencies of New Zealand and South Africa. The yen rose as the Bank of Japan refrained from adding extra stimulus at a policy meeting. A Bloomberg index of emerging-market currencies reached an almost four-month high.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 of its major counterparts, declined 0.5 percent to 1,009.19 at 10:58 a.m. in New York after falling to 1,008.58, the lowest level since Oct. 31.

The dollar dropped 0.3 percent to $1.3789 per euro after sliding 0.3 percent yesterday. The greenback depreciated 0.9 percent to 102.16 yen after sliding to 102.07, the weakest since March 28. Japan’s currency rose 0.6 percent to 140.86 per euro

Loonies climbed the strongest in six weeks on employment growth

Canada’s dollar gained to the strongest level in more than six weeks after the economy added more jobs than forecast in March, rebounding from a decline the previous month, and the unemployment rate unexpectedly fell.

The currency, called the loonie, rose versus 10 of its 16 major peers as employment in the U.S., Canada’s biggest trade partner, grew less than projected. The loonie has been the biggest loser this year among major currencies on bets slowing growth would lead the Bank of Canada to wait longer than the Federal Reserve to raise interest rates. The bank meets April 16. Governor Stephen Poloz said March 18 a rate cut might be possible if the economy worsens.

The loonie, nicknamed for the image of the aquatic bird on the C$1 coin, gained 0.5 percent to C$1.0981 per U.S. dollar at 5 p.m. in Toronto. It was the strongest closing level since Feb. 18. The currency gained for a second week, appreciating 0.7 percent. One loonie buys 91.07 U.S. cents.

Canada’s government bonds rose, pushing the yield on the benchmark 10-year security down the most in three weeks. It fell as much as six basis points, the biggest intraday drop since March 13, to 2.49 percent. The price of the 2.5 percent debt due in June 2024 increased 49 cents to C$100.10.

The Canadian dollar has declined 3.3 percent this year against its U.S. counterpart, the worst performance among 16 major peers. The loonie has fallen 4 percent this year in a basket of 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, also the biggest loss. The U.S. dollar declined 0.4 percent, and the euro lost 0.7 percent.