Category: Forex & Currency News

Natural gas shoots up on bullish U.S. stockpile report

Investing.com –

Investing.com – Natural gas futures shot up on Thursday after data revealed Americans demanded more of the commodity last week than expected.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at $4.499 per million British thermal units during U.S. trading, up 2.35%. The commodity hit session high of $4.500 and a low of $4.368.

The May contract settled up 0.43% on Wednesday to end at $4.395 per million British thermal units.

Natural gas futures were likely to find support at $4.258 per million British thermal units, Monday’s low, and resistance at $4.585, the high from March 17.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending March 21 fell by 57 billion cubic feet, surpassing expectations for a decline of 54 billion cubic feet.

Supplies fell by 90 billion cubic feet in the same week a year earlier while the five-year average change for the week is a drop of 7 billion cubic feet.

Total U.S. natural gas storage stood at 896 billion cubic feet, the lowest for this time of year since 2003.

Stocks were 899 billion cubic feet less than last year at this time and 926 billion cubic feet below the five-year average of 1.822 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 419 billion cubic feet below the five-year average, following net withdrawals of 39 billion cubic feet.

Stocks in the Producing Region were 378 billion cubic feet below the five-year average of 754 billion cubic feet after a net withdrawal of 15 billion cubic feet.

The numbers sparked a rally, which may be short-lived, as updated long-term weather-forecasting models called for a return of milder temperatures across most parts of the U.S. once a frigid winter system clears out of the eastern U.S.

Natural gas prices have been under heavy selling pressure in recent sessions amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating.

The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in May were up 1.24% and trading at $101.50 a barrel, while heating oil for May delivery were up 0.59% and trading at $2.9351 per gallon.

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EUR/USD slides on upbeat U.S. growth and jobs data

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Investing.com – Buoyant U.S. economic growth and weekly jobless claims reports bolstered the dollar against the euro on Thursday, while ongoing expectations for the European Central Bank to loosen policy weakened the single currency even further.

In U.S. trading, EUR/USD was down 0.30% at 1.3743, up from a session low of 1.3728 and off a high of 1.3828.

The pair was likely to find support at 1.3707, the low from March 5, and resistance at 1.3876, Monday’s high.

A fresh batch of improving U.S. economic indicators kept expectations firm that the Federal Reserve will wind down monthly asset purchases this year and hike rates the next, which strengthened the dollar on Thursday.

The Fed’s asset-purchasing program, currently set at $55 billion in Treasury and mortgage debt a month, weakens the dollar by suppressing long-term interest rates to spur investing and hiring.

The Commerce Department reported earlier that U.S. gross domestic product was revised up to 2.6% in the final three months of 2013, from a preliminary estimate of 2.4%. Market expectations had been for an upward revision to 2.7%.

The report showed that personal spending was revised up to 3.3% from 2.6% initially, the fastest rate of growth in three years, which drew applause from investors.

Separately, the Labor Department said the number of individuals filing for initial jobless benefits in the U.S. last week declined by 10,000 to a 311,000 from the previous week’s revised total of 321,000.

Analysts were expecting jobless claims to rise by 4,000.

Thursday’s sunny data fueled already growing opinions that a spate of disappointing economic indicators released earlier in the year were the product of rough winter weather and not due to an underlying decline in demand.

The dollar also continued to applaud the Commerce Department’s Wednesday announcement that U.S. durable goods orders rose 2.2% in February, wiping out two months of declines and surpassing expectations for a 1.0% increase.

Elsewhere, the euro came under pressure of its own on expectations for ECB to loosen policy in the near future.

Earlier this week European Central Bank officials indicated that they are considering fresh policy options to stave off the risk of deflation in the region, including negative deposit rates or liquidity injections.

The euro was down against the pound, with EUR/GBP down 0.54% to 0.8269, and down against the yen, with EUR/JPY down 0.31% at 140.25.

On Friday in the euro zone, Germany is to produce preliminary data on consumer inflation, while France is to publish data on consumer spending.

The U.S. is to round up the week with a report on personal spending and revised data on consumer sentiment.

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Dollar gains on U.S. growth rates, solid jobless claims figures

Investing.com –

Investing.com – Upbeat fourth-quarter economic growth rates coupled with better-than-expected weekly jobless claims numbers in the U.S. sent the dollar firming against most major currencies on Thursday.

In U.S. trading on Thursday, EUR/USD was down 0.26% at 1.3748.

That latest of improving U.S. economic indicators kept expectations firm that the Federal Reserve will wind down monthly asset purchases this year and hike interest rates the next, which strengthened the dollar on Thursday.

The Fed’s asset-purchasing program, currently set at $55 billion in Treasury and mortgage debt a month, weakens the dollar by suppressing long-term interest rates to spur investing and hiring.

The Commerce Department reported earlier that U.S. gross domestic product was revised up to 2.6% in the final three months of 2013, from a preliminary estimate of 2.4%. Market expectations had been for an upward revision to 2.7%.

Still, the report showed that personal spending was revised up to 3.3% from 2.6% initially, the fastest rate of growth in three years, which drew applause from investors.

Separately, the Labor Department said the number of individuals filing for initial jobless benefits in the U.S. last week declined by 10,000 to a 311,000 from the previous week’s revised total of 321,000.

Analysts were expecting jobless claims to rise by 4,000.

Thursday’s data fueled already growing opinions that a spate of disappointing economic indicators released earlier in the year were the product of rough winter weather and not due to an underlying decline in demand.

Investors shrugged off a National Association of Realtors report revealing that its pending home sales index dropped by 0.8% last month, disappointing expectations for a 0.3% gain.

Pending home sales for January were revised down to a 0.2% decline from a previously reported gain of 0.1%.

Year-on-year, pending home sales fell at annualized rate of 10.2% in February, worse than expectations for a 8.5% decline, after declining 9.3% in January.

Elsewhere, the euro came under pressure of its own on expectations for ECB to loosen policy in the near future.

Earlier this week European Central Bank officials indicated that they are considering fresh policy options to stave off the risk of deflation in the region, including negative deposit rates or liquidity injections.

The dollar was up against the yen, with USD/JPY up 0.10% at 102.16, and up against the Swiss franc, with USD/CHF up 0.13% at 0.8862.

The greenback was down against the pound, with GBP/USD up 0.21% at 1.6615.

The pound shot up against the dollar after the Office for National Statistics revealed that U.K. retail sales rose 1.7% in February, taking back most of January’s 2.0% decline, and up 3.7% from a year earlier.

Markets were expecting a 0.5% monthly increase a 2.5% on-year gain.

Core retail sales, which exclude automobile sales, jumped 1.8%, far outstripping forecasts for a 0.3% gain, after falling 2.0% in January.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.64% at 1.1030, AUD/USD up 0.32% at 0.9256 and NZD/USD up 0.96% at 0.8672.

All three currencies rose after data revealed New Zealand’s trade surplus rose sharply in February.

The kiwi, the aussie and the loonie also received additional boosts after a New Zealand central bank deputy governor indicated that the monetary authority could remove measures to cool the housing market, which would allow inflation to rise.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.14% at 80.28.

On Friday, the U.S. is to round up the week with a report on personal spending and revised data on consumer sentiment.

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Argentinean economic acitivty 1.2% vs. 1.6% forecast

Investing.com – Economic activity in Argentina fell more-than-expected last month, official data showed on Thursday.

In a report, Instituto Nacional De Estadistic y Censos said that Argentinian Economic Activity fell to a seasonally adjusted 1.2%, from 2.7% in the preceding month.

Analysts had expected Argentinian Economic Activity to fall to 1.6% last month.

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Forex

Investing.com –

Investing.com – The U.S. dollar was almost unchanged against the yen on Friday, after the release of mostly positive economic reports out of Japan, while Thursday’s strong U.S. data still lent support to the greenback.

USD/JPY hit 102.04 during late Asian trade, the session low; the pair subsequently consolidated at 102.14, easing 0.03%.

The pair was likely to find support at 101.30, the low of March 19 and resistance at 102.86, the high of March 13.

Government data earlier showed that retail sales in Japan rose at an annaualized rate of 3.6% in February, beating expectations for a 3.2% increase, after a 4.4% gain the previous month.

A separate report showed that Tokyo’s consumer price inflation rose 1.3% this month from a year earlier, exceeding expectations for a 1.2% gain, after a 1.1% increase in February.

Core consumer price inflation, which excludes fresh food, rose 1% this month from a year earlier, exceeding expectations for a 0.9% advance, after a 0.9% increase in February.

The reports came after data showed that household spending in Japan declined at an annualized rate of 2.5% last month, compared to expectations for a 0.1% uptick, after a 1.1% rise in January.

Meanwhile, the dollar remained supported after upbeat data added to hopes that the slowdown in economic activity seen at the start of the year would be temporary.

Data on Thursday showed that U.S. gross domestic product was revised up to 2.6% in the final three months of 2013, from a preliminary estimate of 2.4%. Market expectations had been for an upward revision to 2.7%.

Separately, the Labor Department said the number of people who filed for initial jobless benefits in the U.S. last week declined by 10,000 to a seasonally adjusted 311,000 from the previous week’s revised total of 321,000. Analysts had expected jobless claims to rise by 4,000.

The yen was steady against the euro, with EUR/JPY inching down 0.01% to 140.39.

Later in the day, the U.S. was to release a report on personal spending and revised data on consumer sentiment.

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Spanish retail sales -0.5%

Investing.com – Retail sales in Spain fell last month, official data showed on Friday.

In a report, INE – National Institute of Statistics said that Spanish retail sales fell to a seasonally adjusted annual rate of -0.5%, from 0.5% in the preceding month.

Analysts had expected Spanish retail sales to fall to last month.

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Spanish retail sales -0.5%

Investing.com – Retail sales in Spain fell last month, official data showed on Friday.

In a report, INE – National Institute of Statistics said that Spanish retail sales fell to a seasonally adjusted annual rate of -0.5%, from 0.5% in the preceding month.

Analysts had expected Spanish retail sales to fall to last month.

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German CPI 0.3% vs. 0.4% forecast

Investing.com – German consumer price inflation rose less-than-expected last month, preliminary official data showed on Friday.

In a report, Federal Statistical Office Germany said that German CPI rose to a seasonally adjusted 0.3%, from 0.5% in the preceding month.

Analysts had expected German CPI to rise 0.4% last month.

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U.S. stocks open higher, UoM report ahead; Dow Jones up 0.32%

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Investing.com – U.S. stocks opened higher on Friday, as renewed optimism over the strength of the U.S. economic recovery supported equities, while markets still eyed the release of a U.S. report on consumer sentiment later in the day.

During early U.S. trade, the Dow 30 rose 0.32%, the SP 500 gained 0.40%, while the Nasdaq climbed 0.44%.

Official data earlier showed that U.S. personal spending rose 0.3% in February, in line with expectations, Personal spending in January was revised down to a 0.2% gain from a previously estimated 0.4% increase.

A separate report showed that the core U.S. personal consumption expenditures price index remained unchanged at 0.1% last month, in line with expectations.

The data came after economic reports on Thursday showed that U.S. jobless claims fell to the lowest level since late November last week and that U.S. economic fourth quarter growth was revised higher.

The upbeat reports added to hopes that the slowdown in U.S. economic activity seen at the start of the year would be temporary.

In the financial sector, Bank of America (NYSE:BAC) climbed 0.82% after a U.S. judge said the lender should win dismissal of a Justice Department lawsuit accusing it of misleading investors about the quality of loans tied to $850 million in mortgage-backed securities.

Facebook (NASDAQ:FB) added to gains, up 0.55%, amid reports the social media giant is working on projects to deliver the Internet to underserved areas by building drones, satellites and lasers.

Also in the Internet sector, Yahoo! Inc (NASDAQ:YHOO) advanced 0.79% after announcing that director John Hayes, who joined the company in 2012, won’t seek re-election at the company’s shareholder meeting in June.

Elsewhere, Microsoft (NASDAQ:MSFT) saw shares rally 1.24% after launching on Thursday Office applications available for iPad users from Apple’s (NASDAQ:AAPL) app store. Apple shares were down 0.07% at the open of the U.S. trading session.

Tesla Motors (NASDAQ:TSLA) shares surged 2.33% following reports the National Highway Traffic Safety Administration had closed its investigation into fire accidents of the electric-car maker’s Model S vehicles.

Other stocks likely to be in focus included BlackBerry (NASDAQ:BBRY), scheduled to report quarterly earnings later in the day.

Across the Atlantic, European stock markets were higher. The DJ Euro Stoxx 50 gained 0.73%, France’s CAC 40 rose 0.31%, Germany’s DAX jumped 0.95%, while Britain’s FTSE 100 added 0.17%.

During the Asian trading session, Hong Kong’s Hang Seng rallied 1.06%, while Japan’s Nikkei 225 gained 0.50%.

Later in the day, the U.S. was to release revised data from the University of Michigan on consumer sentiment.

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Forex

Investing.com –

Investing.com – The euro edged higher against the U.S. dollar on Friday, as disappointing U.S. consumer sentiment data dampened demand for the greenback, although Thursday’s upbeat economic reports still lent some support.

EUR/USD hit 1.3770 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3765, adding 0.16%.

The pair was likely to find support at 1.3662, the low of February 26 and resistance at 1.3823, the high of March 26.

In a revised report, the University of Michigan said its consumer sentiment index ticked up to 80.0 in March, from a reading of 79.9 the previous month. Analysts had expected the index to rise to 80.5 this month.

Earlier Friday, official data showed that U.S. personal spending rose 0.3% in February, in line with expectations, Personal spending in January was revised down to a 0.2% gain from a previously estimated 0.4% increase.

A separate report showed that the core U.S. personal consumption expenditures price index remained unchanged at 0.1% last month, in line with expectations.

The dollar had strengthened broadly on Thursday after economic reports showed that U.S. jobless claims fell to the lowest level since late November last week and that U.S. economic fourth quarter growth was revised higher.

The upbeat data added to hopes that the slowdown in U.S. economic activity seen at the start of the year would be temporary.

In the euro zone, preliminary data showed that German consumer price inflation rose 0.3% in March, less than the expected 0.4% increase, after a 0.5% gain in February.

Data also showed that French consumer spending rose 0.1% in February, less than the expected 0.8% increase, after a 2.1% decline the previous month.

The euro was higher against the pound, with EUR/GBP edging up 0.10% to 0.8280.

Also Friday, data showed that the U.K. gross domestic product rose by 0.7% in the fourth quarter, in line with expectations.

A separate report showed that the U.K. current account deficit narrowed to 22.4 billion in the fourth quarter, from 22.8 billion in third quarter, whose figure was revised down from a previously estimated deficit of 20.7 billion.

Analysts had expected the current account deficit to narrow to 14 billion in the fourth quarter.

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