Dollar Strengthens as Durable Goods Orders Gain in April

http://goo.gl/gJTV6c

The dollar strengthened to almost a one-month high after a report showed U.S. orders for durable goods unexpectedly rose in April.

The euro headed for the biggest monthly drop since January versus the U.S. currency after European Central Bank President Mario Draghi signaled yesterday that policy makers are ready to expand stimulus. Hungary’s for-int extended losses after the central bank cut interest rates to a record low. The Turkish lira fell the most in a week as consumer confidence dropped. A gauge of volatility in Group of Seven currencies fell to almost the lowest in seven years.

The Bloomberg Dollar Spot Index, which tracks the greenback against the performance of a basket of 10 major currencies, gained 0.1 percent to 1,011.19 as of 9:55 a.m. New York time. The index reached 1,012.43 on May 23, the strongest level since April 24.

http://goo.gl/gJTV6c

Binary Options - Trades Done (21 May 2014)

After a long break, managed to catch two entry tonight. 

2 wins. 76% x 2 = 152% profit.

I am out for tonight =]

Dollar Rises With U.S. Yields Before Fed Minutes

The dollar rose as Treasury yields increased from almost six-month lows before the release of minutes from the Federal Reserve’s April meeting.

The pound rallied as retail sales jumped more in April than economists forecast and the Bank of England said the case for interest-rate increases is becoming more balanced. The yen reached a three-month high earlier after the Bank of Japan refrained from expanding stimulus that tends to weaken a currency and said it projects a moderate economic recovery will continue.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, rose 0.1 percent to 1,009.95 as of 9:13 a.m. New York time.

The U.S. currency added 0.3 percent to $1.3664 per euro. The yen was little changed at 101.31 per dollar, after reaching 100.82, the strongest level since Feb. 5. Japan’s currency appreciated 0.3 percent to 138.42 per euro after touching 138.15, the most since Feb. 6.

Treasury 10-year note yields rose three basis points, or 0.03 percentage point, to 2.54 percent. The yield reached 2.47 percent on May 15, the lowest level since October.

Pound Rallies as Retail-Sales Jump Stokes Rates Bets

The pound rose for a fifth day against the dollar as a jump in U.K. retail sales last month stoked speculation the Bank of England will move closer to raising interest rates as the economy strengthens.

Sterling appreciated versus all but two of its 16 major counterparts. While minutes of this month’s meeting showed officials on the BOE’s Monetary Policy Committee voted unanimously to keep the benchmark interest rate at a record-low 0.5 percent, they also indicated the policy decision was becoming “more balanced” for some of the nine members. U.K. government bonds fell for a fourth day.

The pound rose 0.3 percent to $1.6886 at 10:34 a.m. London time after reaching $1.6921, the highest level since May 9. Sterling added 0.3 percent to 81.17 pence per euro, after touching 81.03 pence, the strongest level since January 2013.

The U.K. currency strengthened in the past 12 months as speculation shifted to the timing of the first increase in central bank rates from bets the BOE may have been prepared to add stimulus. Sterling gained more than 10 percent since this time last year, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro added 4.5 percent, and the dollar fell 2.2 percent

Pound Climbs to 4-Year High on U.K.’s Resurgent Economic Growth

The pound advanced to the strongest level in more than four years against the dollar this week as signs the U.K. economic recovery is gathering momentum boosted the allure of British assets.

Sterling climbed for a fourth week versus the greenback as data showed growth accelerated in the first quarter and house prices rose at the fastest pace since 2007. The U.K. currency advanced against the euro as a purchasing managers index for manufacturing rose more than analysts forecast. Government bonds were little changed after Bank of England Governor Mark Carney said the recovery is starting to “broaden out” before the Monetary Policy Committee’s interest-rate decision on May 8.

The pound rose 0.4 percent this week to $1.6865 at 5:07 p.m. London time yesterday after rising to $1.6920 on May 1, the highest level since August 2009. The U.K. currency strengthened 0.2 percent since April 25 to 82.20 pence per euro.

Sterling has climbed 5.5 percent in the past six months, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, as the strengthening recovery fuels speculation the Bank of England will raise borrowing costs sooner than other central banks. The euro gained 2.1 percent and the dollar weakened 1 percent.

Adding to signs economic resurgence, a Markit Economics index will show growth in services output accelerated in April, according to the median forecast of analysts in a Bloomberg survey before the data is released on May 6. U.K. markets are closed for a public holiday on May 5.

Benchmark 10-year gilt yields were little changed on the week at 2.64 percent. The price of the 2.25 percent bond maturing in September 2023 was at 96.77.

Gilts returned 3.3 percent this year through May 1, according to Bloomberg World Bond Indexes. German securities earned 3.2 percent and U.S. Treasuries gained 2.6 percent.

Fed Resigned to Diminished Growth Expectations

Federal Reserve Chair Janet Yellen and her colleagues have lowered their sights on how fast the economy needs to expand to meet their goal of cutting unemployment.

No longer are they saying growth must accelerate from the 2 percent to 2.5 percent pace it has generally averaged since the recession ended. Instead, they are stressing the importance of preventing the expansion from faltering.

Exhibit number one: the Fed chief herself. Yellen said on April 16 that a key question facing the central bank is what “may be pushing the recovery off track.” Contrast that with her comments on March 4, 2013, of the importance of seeing “a convincing pickup in growth.”

The central bank on April 30 pushed ahead with its plan to gradually wind down its asset-purchase program in spite of news earlier in the day that growth ground to a virtual halt in the first quarter. Saying the economy is rebounding, the Federal Open Market Committee voted unanimously to reduce its bond purchases by another $10 billion a month, to $45 billion.

Most FOMC participants forecast gross domestic product growth of 2.8 percent to 3 percent this year and 3 percent to 3.2 percent in 2015, according to projections released March 19.