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Gbp/jpy Breaks Major Support 193, Targets 190.60
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Potential Reversal zone (PRZ)- 193 GBP/JPY has broken short term trend line support and also PRZ . It confirms short term weakness , a decline till 190.55 cannot be ruled out. On the downside any break below will target 192/190.60 in short term. The pairs minor resistance are 193.10/193.75/194.25. Weekly Major resistance - 194.25 Major support - 192 It is good to sell on rallies around 192.85-90 with SL around 193.60 for the TP of 191/190.55.
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Fxwirepro: Usd/jpy Faces Strong Support Near 124,good to Buy at Dips
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USD/JPY has made a temporary top around 125 and retreated from that level. Overall trend is till bullish as long as short term support 124 holds. It has made a low of 124.09 on Friday and has started to recover from that level. On the downside major support is around 124 (20 day MA) and any break below will target 123.50/123 in short term. Major intraday resistance 125 and intraday support -124. Any break of 125 will extend gains till 125.85. It is good to buy around 124.35-40 with SL around 123.95 for the Tp of 125.84
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Eur/jpy Breaks Short Term Resistance 138, Targets 140
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EUR/JPY has broken major resistance 138 and this confirms short term bullishness , a jump till 141 cannot be ruled out. Short term weakness can be seen only below 136.85 level.Any break below 136.85 will drag the pair further down till 136/135. On the higher side minor resistance is around 139.20 and break above would extend gains till 140./141. Intra day major resistance -139.20 and major support level -136.90. It is good to buy at dips around 138.10-15 with SL around 136.80 for the TP of 140/140.90.
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Australian dollar skids following Chinese yuan devaluation
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The Australian dollar touched its weakest level since 2009 Wednesday following the People's Bank of China weakened the Chinese yuan to bolster exports. China's central bank set the midpoint rate at 6.3306 to the US dollar. Previously, PBOC devalued the currency by 1.85%. The Aussie ended at 65.61 euro cents from Tuesday's 66.72 euro cents, and 72.16 US cents from 73.23 US cents. The Australian dollar is declining on woes about China's official attitude. Chinese policymakers “have strong concerns about their growth and economy,” said Masashi Murata, Senior Currency Strategist at Brown Brothers Harriman.
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Eur/usd Faces Strong Resistance Around 1.1218, Further Bullishness Only Above That Level
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EUR/USD has recovered till 1.12123 and retreated from that level. It is facing strong resistance around 1.1218 (61.8% retracement of 1.1465 and 1.08190) and any break above only will confirm further bullishness. Any break above would extend gains till 1.1250/1.1280 in short term. On the downside minor support is around 1.1130 and any break below will drag the pair further down till 1.1080/1.1035/1.100. Bearish invalidation only above 1.1218. It is good to sell on rallies around 1.1175-80 with SL around 1.1220 for the TP of 1.1085/1.1035
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Companies burdened by Bitlicense’s Real Cost
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The August 8 deadline for New York's bitcoin companies to apply for BitLicense saw many companies of the cryptocurrency ecosystem halting their operations in New York. While different companies cited different reasons for their unwillingness to apply, the hefty non-refundable application fee of $5000 played a crucial part. On the other hand, the companies that did apply for the BitLicense had to bear high cost not only in monetary terms but also non-monetary terms. While speaking to CoinDesk, George Frost, executive VP and chief legal officer at Bitstamp, the world's third largest exchange in terms of BTC/USD trading volume, said, "Applying for the BitLicense is an expensive and difficult process, as many have noted. Some other firms have chosen to abandon the New York market entirely, rather than comply. We do not fault them for doing so". "Our UK parent company has contributed a lot of time, expertise and money in the BitLicense effort, but much of this investment will benefit the entire Bitstamp group," said Frost. However, unlike Bitstamp, which employs nearly 50 people reportedly, there are other relatively smaller and new start-ups like MonetaGo, who have also applied for BitLicense. "Given that we are a new startup company we have been extremely diligent with our expenditures. In terms of hard costs we've spent approximately $50,000 ... by far the biggest costs have been the man-hours to date," said Patrick Manasse, chief compliance officer. Patrick said that the team invested nearly 1,200 hours to compile the documentation for the BitLicense application, and pointed out that an additional 2,000 man hours had been already spent in formulating MonetaGo's global compliance program. "Add to this programmers and developers putting in place systems and service providers, and you start to get a sense of the size and scope of the undertaking," he said, noting: "If all the hours were added up, the total would easily be upwards of a quarter million US dollars." Yet another cryptocurrency exchange, Bittrex, applied for the license. Bill Shihara, Bittrex founder, told CoinDesk that the process is expected to have cost his company somewhere between $18,000 and $20,000, along with nearly 80 hours of compiling and reviewing the documentation. "I am sure larger companies incurred much higher costs than we did ... we were lucky that we had a lot of the paperwork already available."
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Euro modestly changed following German GDP data
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The euro was somewhat changed Friday as the German gross domestic product climbed in the second quarter. Official figures showed Germany's GDP escalated 0.4%, previously 0.3%. The common currency ended at 1.1147 to the US dollar, 0.7142 to the British pound, and 1.0881 to the Swiss franc. Against the Japanese yen, it finished at ¥138.66. Meanwhile, Greek legislators have begun debating on the new €85 billion bailout.
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Australian dollar tumbles ahead of Fed rate decision
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The Australian dollar inched lower Monday, as the currency steadies following the volatility last week due to weakened Chinese yuan. Investors will be awaiting the minutes of the Federal Reserve's meeting due Wednesday to know if the central bank is inclined to raise interest rates next month. The Aussie ended at 66.44 euro cents from Friday's 66.17 euro cents, 73.72 US cents from 73.87 US cents, and 47.11 British pence from 47.32 British pence. Meanwhile, the Reserve Bank of Australia is scheduled to release the minutes of its board meeting Tuesday.
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Aussie Takes Support Near 0.7340, Jump Till 0.7500 Is Possible
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AUD/USD consolidates in narrow range 0.7340-0.73955 for the past two trading session. Major trend reversal level- 0.7400 Break above would extend gains till 0.7450/0.7500 in short term. On the downside minor support is around 0.7340 and break below targets 0.7300/0.7250 in short term. It is good to buy around 0.7375 with SL around 0.7340 for the TP of 0.7490.
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Usd/jpy Range-Trading Near 124.31-39 Hourly Ichimoku Cloud
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Pair move little over last 24 hours
200 HMA at 124.50 above
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British pound retains gains as inflation climbs
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The British pound held its advances Wednesday following UK inflation rate surged in July, retaining bets the Bank of England will raise interest rate soon. The Office for National Statistics reported the Consumer Price Inflation climbed 0.1% last month from 0% in June, while core inflation rose 1.2% last month from 0.8% in June. Sterling stood at 70.24 pence per euro. Against the US dollar, the pound finished at $1.5661. More surprises in core inflation prints, specifically services inflation, can make hawkish policymakers “more comfortable in pulling the trigger for voting for a hike,” said analysts at Credit Suisse.
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Eur/usd Recovers After Dovish Fomc Minutes, Targets 1.12150
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EUR/USD recovers from low of 1.1016 after dovish FOMC minutes has broken short term resistance 1.1130 and is trading at 1.11320. On the higher minor resistance is around 1.1150 and break above would extend gains till 1.1178/1.1210. Overall trend reversal only above 1.1215 and break above would target 1.1348/1.1468. On the downside minor support is around 1.1070 and break below will drag the pair further down 1.1045/1.1000. It is good to buy at dips around 1.1100 with SL around 1.1050 for the TP of 1.1215
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Australian dollar holds earlier advances
The Australian dollar retained its earlier gains Thursday, levelling off earlier following a volatile session. The currency also lost momentum in the light of slumping oil prices, but surged following the minutes of the Federal Reserve's July policy meeting showed apprehensions about increasing interest rates in September. The Aussie finished at 66.03 euro cents from Wednesday's 66.45 euro cents, and 73.52 US cents from 73.53 US cents.
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Japan Manufacturing Sector Picks Up Steam In August - Nikkei
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The manufacturing sector in Japan continued to expand in August, and at an accelerated pace, a preliminary survey from Nikkei revealed on Friday, with a Performance of Manufacturing Index score of 51.9. That's up from 51.2 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Among the individual components, the output index slipped to 51.9 from 52.2 in July. Growth in production was little changed from July's five-month high.
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Canadian Dollar Extends Slide Against Majors
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The Canadian dollar extended its early decline against the other major currencies in New York deals on Friday. The loonie fell to 1.4840 against the euro, lowest since June 2014. The loonie dropped to 0.9646 against the aussie and 1.3142 against the greenback, off early 8-day high of 0.9536 and a 2-day high of 1.3058, respectively. The loonie declined to near a 9-month low of 93.28 against the yen, from an early high of 94.45. The next possible support for the loonie is seen around 1.33 against the greenback, 1.49 against the euro, 0.97 versus the aussie and 92.00 against the yen.
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Dollar Continues To Weaken Heading Into The Weekend
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The dollar is losing ground against all of its major competitors at the end of the trading week. The U.S. currency has been falling since the release of the minutes from the July Federal Reserve policy meeting Wednesday afternoon. The minutes suggested that the Fed is moving closer to raising interest rates. In a strong sign that the Fed is considering a September rate hike, it said the pace of job gains had been "solid," with a range of labor market indicators suggesting that underutilization of labor resources had continued to diminish. Most members judged that the conditions for tightening had not yet been achieved, but they noted that conditions were "approaching that point." There were no U.S. economic reports released Friday, following the large number of releases yesterday. There were a number of reports released in Europe, where the data was largely positive. The dollar has dropped to a 2-month low of $1.1350 against the Euro Friday, from Tuesday's high of around $1.10. Eurozone consumer confidence strengthened for the first time in five months during August, preliminary data from the European Commission revealed Friday. The flash consumer confidence index for the euro area rose to -6.8 from July's -7.1. Economists had expected a -6.9 reading. Eurozone private sector growth improved in August underpinned by German activity, while the expansion in France eased to a four-month low, signaling the widening divergence between two largest euro area economies. At 54.1, the flash Purchasing Managers' Index ticked higher from July's final reading of 53.9 and remained at an expansionary level for the twenty-sixth successive month, preliminary data from Markit Economics showed Friday. The pace of increase was one of the fastest seen over the past four years and stayed above the expected level of 53.7. Germany's private sector grew at the fastest pace in four months in August, flash survey data from Markit revealed Friday. The flash composite output index rose to 54 in August from 53.7 in July. The reading reached a 4-month high in August. The French private sector growth slowed to a 4-month low in August, flash survey data from Markit Economics showed Friday. The composite output index fell to a 4-month low of 51.3 in August from 51.5 in July. German consumer sentiment is set to drop unexpectedly in September, as economic and income expectations floundered despite Greece reaching an agreement on a controversial debt deal. The forward-looking consumer sentiment index fell to 9.9 in September from 10.1 in August, survey data from market research group GfK showed Friday. Economists had forecast it to remain unchanged at 10.1. The buck also slipped to a 2-month low of $1.5722 against the pound sterling Friday, but has since bounced back to around $1.5695. The U.K. logged its first July budget surplus since 2012, the Office for National Statistics showed Friday. Public sector net borrowing excluding public sector banks decreased by GBP 1.4 billion to a surplus of GBP 1.3 billion or equivalent to -0.1 percent of gross domestic product in July. This was the first reported July surplus since 2012. Economists had forecast a surplus of GBP 1.1 billion. British households perceive that the value of their home increased in August, a survey from Knight Frank and Markit Economic showed Friday. The house price sentiment index, or HPSI, rose to 59.5 in August from 58.6 in the previous month. This marked the twenty-ninth successive month of the index remaining above 50. The greenback has fallen to a month and a half low of Y122.250 against the Japanese Yen Friday, from around $124.500 on Tuesday. The manufacturing sector in Japan continued to expand in August, and at a faster rate, a preliminary survey from Nikkei showed on Friday, with a Performance of Manufacturing Index score of 51.9. That's up from 51.2 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
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Korean Won Touches 1200 on Opening Trades
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USD/KRW opens on Monday at 1198
Kospi down 0.8% but all eyes now on SSEC performance on Monday
JPY/KRW 9.83 (up 0.5%)
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New Zealand dollar rises as traders defer rate hike bets
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The New Zealand dollar climbed Monday as traders held up their projections for the timing of the Federal Reserve's interest rate hikes. Bloomberg data shows investors predict a 34% chance the US central bank will raise rates next month from last week's nearly 50%. The kiwi closed at 58.82 euro cents from Friday's 58.68 euro cents, 67.07 US cents from 66.24 US cents, 42.42 British pence from 42.20 British pence, and ¥80.97 from ¥81.42. All year, investors have anticipated rates to climb. The problem is “they have got no inflation to justify it,” said Derek Rankin, Director at Rankin Treasury Advisory.
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China Leading Index Rises 0.9% In July - Conference Board
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A leading economic index for China remained positive in July, the latest survey from the Conference Board showed on Tuesday, advancing 0.9 percent. That follows the downwardly revised 0.6 percent increase in June (originally up 1.0 percent) and the 1.1 percent jump in May. The coincident jumped 1.1 percent, up sharply from the downwardly revised 0.2 percent increase in the previous month (originally up 0.4 percent).
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Japan Corporate Service Prices Rise 0.6% In July
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Corporate service prices in Japan were up 0.6 percent on year in July, the Bank of Japan said on Wednesday.
That beat forecasts for an increase of 0.4 percent, which would have been unchanged from the June reading.
On month, prices added 0.2 percent following the flat reading a month earlier.
Among the individual components, advertising and transportation prices were up, while leasing prices were down.
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Volkswagen July vehicle sales down 3.7 percent on China, Russia
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The vehicle sales of Volkswagen, a German carmaker, slipped 3.7% in July, and were down 1% over the January to July period, affected by weak markets in China, Russia, and Bazil. In a statement, Christian Klinger, carmaker's head of group sales, said the overall economic situations of those three countries remain difficult.
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NZ Dollar Advances Against Most Majors
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The New Zealand dollar strengthened against most major currencies in the Asian session on Thursday. The NZ dollar rose to 0.6473 against the U.S. dollar, from yesterday's closing value of 0.6431. Against the yen and the euro, the kiwi edged up to 77.85 and 1.7498 from yesterday's closing quotes of 77.14 and 1.7555, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.67 against the greenback, 83.00 against the yen and 1.66 against the euro.
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Japanese yen weakens following Kuroda comments
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The Japanese yen dwindled Thursday following Bank of Japan Governor Haruhiko Kuroda said the country can still attain inflation target. On Wednesday, the BOJ head mentioned he is depending on a tight labor supply to increase consumer inflation toward the bank's 2% target, as well as Chinese policy actions to bolster their sluggish exports. The yen finished at ¥136.28 per euro and ¥120.07 per US dollar. Kuroda added the Japanese central bank will assess both upside and downside perils to the economy and make adjustments, if needed.
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China Industrial Profits Fall In July
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Profits earned by Chinese industrial enterprises decreased in July after rising in the previous month, figures from the National Bureau of Statistics showed Friday. Industrial profits fell 2.9 percent year-over-year to CNY 471.56 billion in July following a 0.3 percent rise in the preceding month. The agency said the fall in industrial profit for the month was impacted by a slowdown in industrial production and sales growth, a decline in industrial producer prices and raw material purchase price, and a fall in investment income. During the first seven months of the year, total industrial profits declined by 1.0 percent as compared to the corresponding period last year. Among sub sectors, profits earned by mining industry plunged 57.4 percent in the January to July period, while manufacturing sector registered profit growth of 5.7 percent.
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Australian dollar skids as rate speculations escalate
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The Australian dollar tumbled Monday as expectations of a US interest rate hike strengthened. Bets for a September and October rate hike soared after remarks from Federal Open Market Committee members last week. The Aussie stood at 64.12 euro cents from Friday's 63.61 euro cents, and 71.64 US cents from 71.67 US cents. On Tuesday, the Reserve Bank of Australia will unveil its decision on rate and its remarks about China's outlook.
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Fxwirepro: Buy Usd/jpy at Dips Around 120.95-121 With Sl Around 120.50 for the Tp of 121.75/122
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USD/JPY has made a low of 120.64 and recovered till 121.72. It is currently trading at 121.07. Overall trend is weak as long as support 120.50 holds. On the downside any break below 120.50 confirms further weakness , a decline till 120/119.70 cannot be ruled out . The pair's minor resistance is around 121.20 and any break above targets 121.75/122.35. It is good to buy at dips around 120.95-121 with SL around 120.50 for the TP of 121.75/122
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Australian dollar tumbles despite higher crude prices
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The Australian dollar dropped Monday although US crude oil ended almost 9% higher on lower domestic production estimate. US crude oil futures settled at $49.20 a barrel. The Aussie stood at 63.48 euro cents from Friday's 63.62 euro cents, and 71.17 US cents from 71.42 US cents.
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Canadian dollar wipes out advances as oil prices slide
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The Canadian dollar erased earlier gains Tuesday as crude prices slumped on worries about how the degenerating growth in China can affect the global economy. That made the oil price lose 8%. Prices had surged almost 25% over three sessions. The loonie stood at 75.63 US cents from Monday's 76.01 US cents. No one places much confidence on oil prices. It remains noisy “and there's still a lot of volatility,” said Amo Sahota, Director at Klarity FX. The currency jumped earlier as the Canadian economy constricted by 0.5% in the second quarter.
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US dollar leaps on volatile stock markets
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The US dollar bounced Thursday as global investors scaled back on riskier equities, aggravated by China's devitalizing economy and its volatile stock markets. China's degenerating economy and woes about global growth pressed investors to cut bets in the euro and the Japanese yen. The greenback finished at $1.1210 per euro. Versus the Japanese yen, the dollar closed at ¥120.655. We believe additional easing is possible before the year ends. Such message should uphold sentiment, “which so far has been a drag on risky assets,” said strategists at Barclays. With China's markets shut for a national holiday, investors will now focus on the European Central Bank policy meeting today.
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Euro declines following ECB dovish stance
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The euro held losses Friday after the European Central Bank retained its asset purchase program and implied the likelihood of prolonging the program. ECB President Mario Draghi said the central bank's bond-buying program may run beyond September 2016, and its extent and composition may be changed. Against the US dollar and the Japanese yen, the common currency closed at $1.1122 and ¥133.13. The stipulation the ECB's asset purchase program may be extended beyond September next year is escalating, “which should continue to weigh on euro and eurozone short-term swap rates,” said Elias Haddad, Senior Currency Strategist at Commonwealth Bank. The central bank cautioned growth would suffer from devitalizing momentum in emerging markets, specifically China and slumping oil prices could pull eurozone back into deflation in the next months.
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Moody's: Taiwanese Banks Resilient to Economic Slowdown
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Moody's Investors Service says its stable outlook for Taiwan's banking system reflects its expectation that rated banks in Taiwan will maintain their steady credit profiles, despite an economic slowdown, and that they will continue to benefit from strong government support. "Although weak external conditions are leading to slower growth in industrial production and exports, the impact on Taiwanese banks' asset quality should be buffered by low interest rates and healthy corporate balance sheets," says Sonny Hsu, a Moody's Vice President and Senior Analyst. "We expect Taiwanese banks to report stable profitability over our outlook horizon, as higher margins from overseas lending will be partially offset by higher credit charges due to tightening regulatory provisioning requirements and slower economic growth," adds Hsu. Moody's analysis is contained in its just-published report "Banking System Outlook: Taiwan," which provides an overview of credit trends affecting the banking system in the next 12-18 months. Moody's baseline scenario assumes a material slowdown in Taiwan's real GDP growth to 1.5% in 2015 and 2.0% in 2016, from 3.8% in 2014, with weak exports being a key driver. This slowdown, coupled with low expected inflationary pressure, will argue for the central bank's monetary policy to stay accommodative for an extended period, even when the US Federal Reserve begins hiking interest rates. "While the more challenging operating environment will pressure banks' asset quality metrics, we expect the resultant impact to be mitigated by sound corporate financials, continued low interest rates, and a resilient labor market," says Hsu. Moody's report highlights that Taiwan's economic and financial linkages with China (Aa3 stable) are growing, with banks' total Mainland China exposures rising to 62% of total shareholder equity as of end-June 2015, from 50% as of end-September 2013. The banks' rising Mainland China lending will expose them to risks associated with the Chinese economy, including the current economic slowdown and the country's ongoing economic rebalancing. Nevertheless, regulatory caps on banks' Mainland China exposures to 100% of banks' common shareholders' equity limit the extent of such exposures. Meanwhile, Taiwanese banks will likely strengthen their capitalization as they raise fresh equity and maintain modest overall asset growth, although capitalization remains weak relative to regional peers. Some banks will face increasing capital pressure if their expansion, mostly overseas, continues to outpace that of their local peers. Moody's also expects the government's willingness and capacity to provide support in a stress situation to remain strong. The government has made no effort to introduce a statutory bank resolution regime that entails imposition of losses on creditors on a going-concern basis if a bank becomes non-viability. The stable outlook on Taiwan's banking system is consistent with the stable outlooks for seven out of 10 Moody's-rated banks in Taiwan. The system's asset-weighted average long-term bank deposit rating is A1, while the asset-weighted average standalone baseline credit assessment is baa2. The stable outlook is also consistent with Moody's outlook on Taiwan's Aa3 government bond rating.
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Moody's Lowers Asia Growth Forecasts on Slowing Exports, subdued Domestic Demand
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Moody's Investors Service has adjusted downwards its GDP growth forecasts for many Asia Pacific (APAC) sovereigns, noting that subdued global growth, exacerbated by weaker demand from China, leads APAC growth lower. Nevertheless, APAC sovereign credit profiles are resilient to lower growth, because most other APAC sovereign credit indicators, such as government debt and balance of payments ratios, remain in line with Moody's assumptions, and within the range for each sovereign's peer group. Moody's conclusions are contained in its just-released report titled "Asia Pacific Sovereigns: Credit Profiles Resilient to Slowing Exports, Subdued Domestic Demand". The report describes the adjustments to each rated Asian sovereign's growth forecast, as well as the reasons behind Moody's lower growth expectations. It highlights that weak demand from China (Aa3 stable) has dampened the overall export outlook for the region, while softer commodity prices weigh on some sovereigns' export revenues, growth and fiscal balances. Moody's report says that domestic demand in most APAC countries is unlikely to offset the effect of slower global growth, partly because an anticipated investment boost from government infrastructure spending has not materialized in some cases. In addition, households are saving more of their income gains from lower energy costs than previously expected, despite monetary easing by central banks in the region. Market volatility and political risk are also weighing on confidence. Nonetheless, Moody's sees most APAC sovereign credit profiles as resilient to the ongoing slowdown in global growth. The report points out that growth in Asia is slowing from high levels, and is on average still stronger than most other regions. The risk of deflation at this point is minimal, while lower oil prices have supported current account and fiscal positions in many Asian countries; offsetting the risks from slower growth and external financial volatility. In addition, government debt-to-GDP levels are largely moderate in much of Asia -- except in India (Baa3 positive), Japan (A1 stable), Pakistan (B3 stable) and Sri Lanka (B1 stable) -- offering some space for fiscal stimulus. On capital account volatility, Moody's expects that the pressures on exchange rates and reserves in many Asian countries will continue, as international markets respond to slower emerging market growth, and potential US Federal Reserve action. Nevertheless, the negative sovereign credit implications of such pressures are limited by currency flexibility, and reserve levels that are significantly higher in Asia than during the late nineties.
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US dollar dives as Asian equities falter
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The US dollar declined Tuesday as Asian equities waddled, favoring safe-haven assets including the Japanese yen. The Nikkei slid 1.7%, as Shanghai stocks dropped on weak Chinese import data. Trading was also subdued as US markets are shut for Labor Day holiday. The greenback stood at $1.1190 per euro and $1.5298 per British pound. Against the Japanese yen, the currency closed at ¥119.00. Looking at the USD/JPY, the pair has been affected by equities, specifically “the impact of Chinese shares on Japanese stocks," said Koji Fukaya, President at FPG Securities.
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Yen Little Changed After Japan Consumer Confidence Indexl
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The Cabinet office released the Japan consumer confidence index for August at 1:00 am ET Wednesday. After the data, the yen changed little against its major rivals. As of 1:01 am ET, the yen was trading at 134.28 against the euro, 185.00 against the pound, 122.67 against the Swiss franc and 120.25 against the U.S. dollar.
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Canadian dollar rises as oil prices surge
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The Canadian dollar climbed Thursday after oil prices escalate, but traders do not expect its surge to last as they assimilate whether the Federal Reserve will increase interest rates as early as next week. US crude ended at $45.92 a barrel. As the Bank of Canada retained rates yesterday, investors turn their attention to Fed's rate decision next week. The loonie finished at 75.60 US cents from Wednesday's 75.47 US cents. Whether a rate increase happens next week or later in the year, the currency may weaken as traders “favor the US dollar,” said Ken Wills, Head of Corporate Exchange North America at CanadianForex.
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Indian Rupee Rises To 2-day High Against U.S. Dollar
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The Indian rupee strengthened against the U.S. dollar in the morning deals on Friday. Against the greenback, the rupee rose to a 2-day high of 66.2900 from yesterday's closing value of 66.3500. If the rupee extends its uptrend, it is likely to find resistance around the 65.60 area.
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Usd/jpy Struggles to Break Above 121.30, Decline Till 119.60 Is Possible
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USD/JPY has broken minor trend line support around 120.50 (trend line joining 119.96 and 120.35) and a short decline till 119.95 is possible. On the higher side intraday resistance is around 120.75 and break above will take the pair till 121.30. Short term trend reversal only above 121.30. The pair's minor support is around 120.20 and break below targets 119.95/119.50. It is good to sell on rallies around 120.40-45 with SL around 120.76 for the TP of 119.95/119.60
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BoJ Leaves Monetary Policy Unchanged
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The Bank of Japan kept its massive stimulus unchanged on Tuesday as expected by economists. In a statement, the BoJ announced that the policy board headed by Governor Haruhiko Kuroda decided by an 8-1 majority vote to maintain its target of raising the monetary base at an annual pace of about JPY 80 trillion. The bank will conduct purchases in a flexible manner in accordance with financial market conditions. The bank also revealed that private consumption has been resilient and housing investment has been picking up against the background of steady improvement in the employment and income situation. The bank said that the annual rate of increase in consumer prices was flat. Inflation expectations appear to be rising on the whole from a somewhat longer-term perspective. The BoJ maintained its optimistic assessment of the economy by stating that the economy has continued to recover moderately as a trend.
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Mexico Leading Index Falls For Third Month: Conference Board
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The leading index for Mexico, which measures the future economic activity, decreased for the third consecutive month in July, as majority of its components made negative contributions, figures from Conference Board showed Tuesday. The Conference Board leading economic index fell 1.6 percent in July, following a revised 0.7 percent decrease in June. Out of the six components, only one contributed positively to the index in July. The index declined by 1.9 percent between January and July 2015, but the contraction was not as deep as the decline of 5.5 percent over the previous six months. At the same time, the coincident index that reflects the current economic acticity rose 0.3 percent in July, the same rate of increase as in the previous month. Two of the three components gained during the month.
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Canadian dollar rises before Fed rate decision
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The Canadian dollar climbed Tuesday as crude prices inched higher, but investors were mostly hesitant to make huge bets before the much-awaited Federal Reserve's rate decision. Market participants are split on whether the US central bank will raise interest rates or defer such a move until later in the year or 2016. The loonie finished at 75.49 US cents from Monday's 75.43 US cents. The risk from Fed's policy decision is just too important “to not pay attention to,” said Brad Schruder, Director of Foreign Exchange at BMO Capital Markets. Meanwhile, US crude ended at $44.59 a barrel, buoyed by higher gasoline prices and advances on Wall Street.
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