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S&P futures add to gains after data

admin — Tue, 27 Sep 2011 16:18:30 +0000

NEW YORK | Wed Sep 28, 2011 9:13am EDT

NEW YORK (Reuters) – Stock index futures pointed to a slightly higher open on Wednesday as investors remained cautiously optimistic about progress on plans to lessen the euro zone’s debt woes.

International auditors headed to Greece to scrutinize new austerity measures they must endorse for Athens to get the next tranche of aid.

German Chancellor Angela Merkel suggested that parts of a planned new 109-billion-euro ($148.6 billion) rescue for the debt-laden country could be reopened, depending on the outcome of the audit.

Recent efforts to solidify a euro zone rescue fund and alleviate the region’s sovereign debt crisis lifted stocks on Tuesday for a third consecutive session and came after four straight days of losses for the benchmark S&P 500.

“At least they are doing something and for the moment it has taken away the fear of a collapse for now,” said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.

“It is certainly interesting that we had that nice rally yesterday and gave it all back late afternoon but it just shows how nervous the markets are and it is tough to commit. We will probably continue like this until there is a little more clarity and who knows when that comes.”

Market volatility could remain as traders react to European headlines.

Analysts also said equities would be supported by quarter-end “window dressing,” when portfolio managers drop underperforming stocks and buy outperformers.

S&P 500 futures rose 3.7 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures gained 35 points, and Nasdaq 100 futures added 4.5 points.

In the latest economic data, new orders for long-lasting U.S. manufactured goods slipped in August on weak demand for motor vehicles, but a rebound in a gauge of business spending suggested the economy would avoid another recession.

In the latest quarterly earnings reports, spicemaker McCormick & Co Inc posted a profit that topped estimates, while discount chain Family Dollar Stores Inc recorded higher quarterly income.

Darden Restaurants Inc, parent of the Red Lobster and Olive Garden chains, posted a 6 percent drop in earnings.

Family Dollar shares slid 8 percent to $53.75 and Darden ticked up 2 cents to $47 in premarket trade.

(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

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Stock futures signal gains; Caterpillar eyed

admin — Sun, 25 Apr 2010 17:01:02 +0000

(Reuters) – Stock index futures pointed to a higher open on Wall Street on Monday, with futures for the S&P 500 up 0.16 percent, Dow Jones futures up 0.16 percent and Nasdaq 100 futures up 0.1 percent at 5:06 a.m. ET.

Companies set to report quarterly earnings include Dow component Caterpillar Inc (CAT.N), Boston Scientific (BSX.N), Texas Instruments (TXN.N) and BlackRock Inc (BLK.N).

Greece’s finance minister said on Sunday that aid will arrive in time to avert the euro zone’s first sovereign debt default as signs grew that a 45 billion-euro ($60.49 billion) rescue would have to be bigger.

Greece’s debt troubles dominated weekend talks among world financial leaders in Washington after Athens bowed to intense pressure from markets and requested funds from the European Union and the IMF in what would be the first bailout of a euro zone member.

The two Democratic Senators charged with writing rules for the $450 trillion private swaps market are near a deal, and will include a provision to require banks to spin off swaps desks, people familiar with the talks said on Sunday.

UAL Corp’s (UAUA.O) United Airlines and Continental Airlines (CAL.N) disagree over the price of a potential stock-for-stock merger, according to source familiar with the situation.

U.S. car rental firm Hertz Global Holdings Inc (HTZ.N) had agreed to buy smaller rival Dollar Thrifty Automotive Group Inc (DTG.N) for about $1.2 billion to boost its presence in the leisure rental market.

Japan’s Canon Inc (7751.T) raised its annual outlook closer to market expectations on Monday after posting a more than fourfold jump in quarterly profit on brisk demand for digital cameras and printers.

U.S. clinical research company Charles River Laboratories International (CRL.N) said on Monday it had agreed to buy China’s WuXi PharmaTech (WX.N) for $1.6 billion to expand its contract research and drug development services.

U.S. industrials group Emerson Electric (EMR.N) has made a 723 million pounds ($1.1 billion) approach for Chloride Group (CHLD.L) in its second attempt to buy the power protection company to strengthen its position in Europe.

Best Buy (BBY.N), the world’s No.1 electricals retailer, will do whatever it takes to succeed in the UK, joint venture partner Carphone Warehouse (CPW.L) said as it raised profit expectations for the third time in six months.

Oil edged higher on Monday with Brent touching an 18-month high, as robust U.S. economic data boosted hopes of a sustained recovery in the world’s largest energy user, but dollar strength capped oil’s gains.

European stocks were up 1 percent in morning trade, led by banking shares such as BNP Paribas (BNPP.PA) and Barclays on easing worries over Greece’s debt woes .EU, while Japan’s Nikkei average jumped 2.3 percent.

U.S. stocks rose to a 19-month high on Friday as Merck eased concerns about the impact of healthcare reform, saying its costs will be relatively low.

The Dow Jones industrial average .DJI gained 69.99 points, or 0.63 percent, to 11,204.28. The Standard & Poor’s 500 Index .SPX rose 8.61 points, or 0.71 percent, to 1,217.28. The Nasdaq Composite Index .IXIC added 11.08 points, or 0.44 percent, to 2,530.15.

(Reporting by Blaise Robinson; Editing by Hans Peters)

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The pound gains on the data

admin — Wed, 21 Apr 2010 11:59:53 +0000

During the last couple of month the British currency used to be under pressure more often than not for a couple of reasons. Firstly, the economy didn’t perform as good as the market hoped. Secondly, the BoE responded with the heaviest intervention on the bond market among the developed economies and just as these factors began to fade, the political picture became complicated. The political scene still remains puzzled, with no outright majority likely to emerge after elections scheduled for May 6th (such outcome translates into a smaller chance for a rejuvenation in public finances). However, the pound gains support from the macroeconomic data. Higher CPI was followed yesterday with better labor market data (number of unemployed fell by 33k against expected 8k).

Due to the fiscal woes hurting the euro, a solid performance of the British currency this week is evident especially on the EURGBP. The pair managed to break another support (at 0,87) and is currently testing a long-term support created by a bottom line of a large triangle which eclipsed the pair during the past year and the half. Further support lines can be found at 0,86 and 0,84. The closest resistance on the GBPUSD is at 1,5527. While the political picture will not be clarified for (at least) another two weeks, the pound may advance further on macroeconomic figures scheduled for today (retail sales, 4.30 ET, 10.30 CET, exp 0,7% m/m) and tomorrow (flash GDP).

eBay disappoints, double-peak remains a threat

An avalanche of results in the last three days helped ease Goldman worries but didn’t drive the indices to the new highs. Reactions to reports released yesterday confirmed elevated expectations among investors. Even though reports were mostly positive, reactions were mostly negative. Morgan Stanley was a bright spot as it reported stellar earnings (1,03 USD against expected 53c) and higher revenues from trading and wealth management. On the other end was eBay which reported in-line earnings but forecasted subpar results for the second quarter – the company slid as much as 8% in aftermarket trade. Some big names, including Wells Fargo, AT&T or United Technologies reported in-line or better profits but disappointed with revenues. Today investors await results from Microsoft (expected EPS 42c), AmEx (62c) and Amazon (61c) – all after the close.

The results didn’t provide the much needed boost to drive the indices (including S&P500 and DJIA30) to the new highs and the double-peak formation still remains a worry for the bulls. Two supports can be found at 1188 (ascending short-term line) and 1180 (neck-line).

Events to watch – US macro, Microsoft, BoC report

As the earnings season has culminated, the attention is slowly switching to macroeconomic figures. The figure of the day is a report on the US initial claims (8.30 ET, 14.30 CET, consensus 452k). The number of people claiming unemployment benefits for the first time increased in the past two weeks. The market didn’t react significantly to this deterioration but investors might become concerned unless this tendency reverses. The figure is released along with the PPI report (exp at 0,4% m/m and 0,1% for core) and the figure will be followed by used home sales (10.00 ET, 16.00 CET, consensus 5,28 mln). After weak reading in January and February, the market expects a solid improvement in March. In general, expectations seem to be high so a positive surprise seems unlikely.

Today there the Bank of Canada will release a quarterly report (10.30 ET, 16.30 CET) and comment it on the conference (11.15 ET, 17.15 CET). Those events gained importance as the Bank surprised on Tuesday signaling imminent interest rates increases (read more in yesterday’s snapshot). The Canadian dollar responded with a nearly 2% gain against the US dollar.

Published on Thu, Apr 22 2010, 08:57 GMT

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Dai-ichi Life gains on debut after $11 billion IPO

admin — Thu, 01 Apr 2010 14:57:51 +0000

TOKYO (Reuters) – Dai-ichi Life Insurance rose 14 percent on its debut on Thursday after pricing its $11 billion IPO at a discount to rivals, but investors remain wary of its growth prospects outside a mature Japanese market.

Deals | Asian Markets

The IPO was the world’s largest since Visa Inc’s $19.7 billion offering two years ago and was seen as a test of investor appetite in Japan, where the value of new listings slumped to their lowest in nearly two decades last year.

Dai-ichi opened at 160,000 yen ($1,712), against the IPO price of 140,000 yen. Nearly 151 billion yen worth of shares changed hands, accounting for 8 percent of turnover on the Tokyo Stock Exchange.

Trade in Dai-ichi shares was halted after the first price was set at 1:00 p.m. (0400 GMT) in a special measure taken by the stock exchange to ensure the massive listing went smoothly. Dai-ichi shares will trade regularly from Friday.

Dai-ichi drew strong demand as the stock was priced at a discount to rivals such as T&D Holdings as well as fortunate timing with Japanese shares hitting an 18-month high.

The stock is also sought after by index-tracking funds, which need it in their portfolios when it is added to the Topix index of all first section shares next month.

“Dai-ichi shares look cheap from a valuation perspective and also attractive relative to T&D Holdings,” said Takeshi Osawa, senior fund manager, at Norinchukin Zenkyoren Asset Management.

“Overall market sentiment is improving and that’s bolstering sentiment toward the financial sector, including insurers. The uptrend in Dai-ichi’s stock should continue for a while.”

Yet investors remained worried about Dai-ichi’s growth prospects with its business so firmly based in Japan, where the population is shrinking and the value of new life insurance contracts has shrunk by three-quarters since a peak in 1991.

Dai-ichi, which went public after distributing its stock to 8 million policyholders in a process known as demutualization, did not raise any funds in the IPO, but is expected to issue new shares over the next few years to fund acquisitions overseas.

“You know the nice thing about becoming a stock company is that we can discuss all kinds of possibilities,” Koichiro Watanabe, a martial arts expert who became Dai-ichi’s CEO on Thursday, told Reuters in an interview.

RISKS AHEAD

The first price values Dai-ichi at 1.6 trillion yen ($15 billion), where it trades at 64 percent of its embedded value, a common measure of an insurer’s worth that includes the present value of future earnings from life insurance contracts.

By comparison, T&D Holdings trades at about two-thirds embedded value and Korea Life Insurance,, which debuted in Seoul last month, at about 110 percent.

“This was pretty strong. But I think this rise was pretty much anticipated and, once the stock starts trading normally, there’ll be profit-taking,” said Nagayuki Yamagishi, strategist at Mitsubishi UFJ Securities.

About 2.9 million of the 10 million shares outstanding were in the hands of policyholders at the time of listing, while 5.01 million went to Japanese institutional and retail investors and 2.1 million were allocated to overseas funds.

The overseas portion was cut from an original target of 2.5 million, a sign demand overseas was not as strong as hoped.

Watanabe, who visited the United States and Europe to drum up interest in the offering, told a news conference on Thursday it was possible its business model was not yet fully understood by foreign investors.

Dai-ichi, which ranks behind Nippon Life Insurance Co in Japan, manages a massive stock and bond portfolio worth 29.4 trillion yen ($317 billion), leaving it vulnerable to swings in equity markets and Japanese government bonds.

The insurer has established several overseas subsidiaries but still generates nearly all of its sales in Japan.

“You’ve got people who think there is fundamental value in this name,” said Makarim Salman, an insurance industry analyst at Macquarie Securities in Tokyo who has an “outperform” rating and 175,000 yen target price on Dai-ichi Life.

“On the flipside, you are going to have people who are going to take a very different view and highlight the fiscal anxieties surrounding government debt and the fact that life insurers are big holders of that, the structural decline in the life insurance industry, and a potential capital raising.”

Managing the IPO propelled Nomura Holdings and Mizuho Securities to the top two spots in global undewriter rankings for January-March, according to Thomson Reuters data. Bank of America Merrill Lynch was also a bookrunner for the deal.

Japanese brokers are hoping Dai-ichi’s strong debut will breathe life into the IPO market and help the Nikkei average, which rose 1.4 percent on Thursday to an 18-month high, keep gaining ground.

“There are a lot of people that became owners of stock for the first time in this IPO. The fact that it went well could help revitalize the market,” said Masayoshi Yano, a senior market analyst at Meiwa Securities.

($1=93.46 Yen)

(Additional reporting by Elaine Lies, Daiki Iga and Nathan Layne; Editing by Chris Gallagher, Edwina Gibbs and Ian Geoghegan)

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FTSE gains in midday trade (AFP)

admin — Wed, 31 Mar 2010 09:26:24 +0000

LONDON (AFP) – Shares in London rose in late morning trade on Wednesday, the last day of the first quarter, as traders eyed the Easter holiday weekend and upcoming US jobs data.

The FTSE 100, which had slipped at the open, gained 0.24 percent to 5,685.97 points.

Trade has been somewhat subdued before the upcoming Easter break, although investors are awaiting Friday's release of crucial US unemployment data.

“The markets are taking a pause for breath as we have a shortened week,” said ODL Securities analyst Owen Ireland.

“Traders may be sitting on the sidelines until we see the release of non farms on Friday.”

Wall Street edged higher in quiet trade Tuesday as investors digested housing and consumer confidence data and worried about the struggle to recover from the worst global recession in decades.

us.rd.yahoo.com

Corrected: Dow gains on Boeing strength, S&P dips (Reuters)

admin — Mon, 22 Mar 2010 17:53:47 +0000

rose on Thursday on Boeing's strength, while the
slipped after a round of economic data and corporate results.
Earlier in the session, the Dow climbed as high as 10,773.88 — its highest in 17 months.
showed factory activity expanded more than expected in March, although
fell. Earlier, the government said consumer prices were flat in February, backing up the Federal Reserve's commitment to keep its
ultra low for a while. A separate report showed a dip in new claims for
in the latest week.
“The data are a net positive since it reinforced the idea that the Fed won't be raising rates soon,” said Tom Nyheim, portfolio manager of Christiana Bank & Trust in Greenville, Delaware.
“What's limiting us right now is the fact that we've just been up so much lately.”
.N), up 1.7 percent at $70.54, gave the Dow its biggest boost. Boeing, on track for its highest close since June 2008, is the Dow's best-performing stock so far this year. Earlier in the session, Boeing hit a 52-week intraday high at $70.62.
(.DJI) gained 32.12 points, or 0.30 percent, to 10,765.79.
& Poor's 500 Index (.
) slipped 1.77 points, or 0.15 percent, to 1,164.44. The
(.
) rose 1.24 points, or 0.05 percent, to 2,390.33.
.N) and GameStop (
.N) rallied after reporting results. Nike's stock climbed 5.3 percent to $74.63, a day after the largest global sports gear maker reported a third-quarter profit that beat expectations. GameStop shares jumped 7.7 percent to $21.39 after the video-game retailer forecast full-year sales growth of 4 percent to 6 percent.
.N) posted a sharply higher quarterly profit that beat
's estimate. Some analysts, though, had said expectations called for even stronger results.
gained 0.5 percent to $90.27. The
(.DJT), which includes FedEx, rose 0.4 percent.
.O) fell 0.4 percent to $22.16, dragging on the
. Macquarie Equities Research started coverage of the chip maker with a “neutral” rating, expecting utilization rates for the semiconductor sector to peak in the next one or two quarters.
Another pocket of strength came from the healthcare sector, with
. U.S. House Majority Leader
said momentum was growing for the legislation despite solid Republican opposition. The
U.S. House of Representatives
is on track to vote on the bill on Sunday.
“It's almost a 'buy the news' type of thing. People have been playing it from the short side, and now we've got a little more clarity and the cover is taking place today,” said Craig Miller, market maker in healthcare trading at
in Baltimore.
Healthcare Payor Index (.HMO) rose 3.2 percent.
The Dow marked a seven-day winning streak in Wednesday's session, its longest since an eight-session run in August 2009. Volume, however, has been tepid ahead of key options expirations on Thursday and Friday, when four different types of
expire in a convergence known as “quadruple witching.”

us.rd.yahoo.com

Stock futures signal gains; housing data eyed

admin — Mon, 22 Mar 2010 09:23:22 +0000

(Reuters) – Stock index futures pointed to a higher open on Wall Street on Tuesday, with futures for the S&P 500 up 0.21 percent, Dow Jones futures up 0.21 percent and Nasdaq 100 futures up 0.15 percent.
TWX.N
), Lions Gate Entertainment Corp (
LGF.N
) and billionaire Len Blavatnik’s Access Industries put up rival bids of $1.2 billion to $1.5 billion for studio Metro-Goldwyn-Mayer, sources familiar with the matter told Reuters late on Monday.
7203.T
) has lifted its global production plans by 1 percent to 7.57 million vehicles for 2010, anticipating better demand in Japan and other Asian markets, a source at a group company said on Tuesday.
GOOG.O
) has not violated the rights of luxury goods maker Louis Vuitton and two other firms by allowing online advertisers to buy search keywords identical to trademarks, Europe’s top court said.
Oil slipped toward $81 a barrel on Tuesday, under pressure as the dollar firmed ahead of a European Union summit to discuss Greece’s debt crisis.
After the bell on Monday, shares of Wendy’s/Arby’s Group Inc (
WEN.N
) rose 1.7 percent to $4.76 after the company announced an increase in its stock repurchase authorization, while shares of Massey Energy (
MEE.N
) fell 3.1 percent to $49.25 in extended trade after the firm said it intends to offer 8.5 million shares of common stock.
ADBE.O
), Jabil Circuit (
JBL.N
), Walgreen (
WAG.N
DRI.N
), while Tuesday’s economic diary includes February existing home sales and January FHFA House Price Index.
European stocks were up 0.8 percent in morning trade, reversing recent losses, led by banks and miners such as Banco Santander (
SAN.MC
RIO.L
).
U.S. stocks rose on Monday, building on last week’s strength, as the passage of a bill overhauling the healthcare system ended much of the uncertainty for investors. While some analysts raised concerns the bill, approved on Sunday, could squeeze company profits and add to costs, they said much of the negative impact was already priced in.
was up 43.91 points, or 0.41 percent, at 10,785.89. The Standard & Poor’s 500 Index .SPX was up 5.91 points, or 0.51 percent, at 1,165.81. The Nasdaq Composite Index
was up 20.99 points, or 0.88 percent, at 2,395.40.

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Euro gains on Greece’s bailout plan

admin — Tue, 16 Mar 2010 17:52:13 +0000

Tue, Mar 16 2010, 18:57 GMT
The 16-nation currency gained severely against the Dollar as E.U finance ministers drafted a blueprint to aid Greece with its ballooning deficit, in addition news from the Standard & Poor’s of affirming Greece’s credit rating at BBB+ despite its debt issues while downgrading the country from “creditwatch Negative”, where it stated that the country’s budget cuts that was passed by Greece’s government “was the appropriate thing to do”, thus investors turned into Greek Bonds along with the high yielding assets and sent the Dollar to suffer in today’s trading session along with pushing commodities and stocks higher where the S&P 500 index is currently trading at 17 month high.
The U.S dollar index, which tracks the performance of the Dollar against a basket of currencies, sank in today’s trading session where it’s currently trading at 79.878, compared with the opening levels of 80.110 where it managed to reach the highest levels for today at 80.326 and the lowest at 79.746.
The euro-dollar pair managed to gain against the Dollar as its showing on the daily and four hour scale where the pair is currently in attempt to test the 50% Fibonacci levels at $1.3735 that was breached yesterday, which was considered a strong support levels in today’s trading session and converted to resistance in today’s trading session. the pair is currently trading at $1.3725 where expectations show that the pair will continue to ascend further if trading remains above $1.3610, due to the positive signs provided by the Stochastic Oscillator. The pair reached the highest for today at $1.3771 and the lowest at $1.3655 meanwhile the upcoming support and resistance levels they are set at $1.3715 and $1.3770 respectively.
Moving to the Sterling, the pair slashed all yesterday’s losses where its currently trading at $1.5187 where its testing a strong resistance levels at $1.5210, expectations show that if the pair managed to breach those levels that it will continue to rise further supported from the positive signs that is provided by the Stochastic Oscillator, therefore the upcoming targets for the pair is set on those resistance levels in order for the pair to continue to rise on the daily scale, the pair managed to reach the highest at $1.5206 and the lowest at $1.4975 meanwhile the upcoming support and resistance levels can be witnessed at $1.5130 and $1.5210 respectively.
Finally talking about the USDJPY pair, expectations show that the pair will decline but maintain its sideway trading as the RSI indicator is providing further signs of narrow trading in the upcoming period, given the fact that the Stochastic Oscillator is signaling a drop in the daily scale as the pair’s trading in an overbought areas. Meanwhile the pair is rising on the daily scale with targets at the resistance levels at $90.90. The pair is currently trading at $90.66 where it managed to reach the highest for today at $90.73 and the lowest at $89.97, as for the upcoming support and resistance levels can be witnessed at $90.10 and $91.25 respectively.

fxstreet.com

CEE gains on US payrolls outcome

admin — Sun, 07 Mar 2010 17:18:49 +0000

Mon, Mar 8 2010, 09:27 GMT
profited from the better than expected US payrolls release. The EUR/CZK currency pair failed to stay above 25.80 and moved sharply lower at the end of the week, somehow catching up with recent sharp gains of the Polish zloty.
This week is full of interesting domestic data and events. As it seems that Greece received broad support from European politicians after the austerity package, the CEE is well positioned to extend gains. The Czech data-front is also going to be interesting. Today, we expect a significant improvement in Czech foreign trade despite the waning out of the effect of the scrap premium and more expensive commodity imports. Later during the week the attention should shift towards the CPI and second estimate of GDP, where we expect a significant positive revision.
On Friday,the Czech yield curve in the above-average trading volume fell across the whole length and steepened as the shorter end lost over 10 bps and the longer one closed by 0.5 bps lower only. On the domestic scene the most important event came from the Senate that rejected the bill reducing the VAT on employee benefits. Reduced benefits were the main reason why trade unions wanted to strike last week.
Today’s trade balance should show quite a nice surplus. However, we expect it to have hardly any influence on (bond) markets. For these bonds markets, investors must keep in mind that the Ministry of Finance intends to issue a higher volume of bonds denominated in euro versus crown bonds. This may sustain some interest in domestic government bonds. Nevertheless, after Friday’s fairly significant steepening, the curve may suffer from a partial correction.
finished the week in a good mood after better than expected US data spurred optimism on risky markets. The pair broke through the key level of 266.00 and appreciated to 265.50 later in the afternoon. It seems that the market ignores recent data about higher inflation and the budget deficit and instead is concentrating on the global growth outlook.
The February budget deficit swelled to 44% of the annual target, indicating that concerns about the feasibility of this year’s 3.8% of GDP target are real, but this does not seem to matter at the moment. On the political front, far-right wing Jobbik seems to strengthen to the level of the Socialist party and new research suggests that it may even surpass it at the national level, while on a regional basis it could be as strong as leading opposition party Fidesz in some areas.
continued to rally on the last day of the week and yields fell about 8 bps at the longer end. The 10-year yield fixing fell to 7.33%, while the 5-year lowered to 6.75% as the market continues to see decent demand from foreign investors. The 5y5y forward spread also compressed to below the key 250bps level. On the other hand, the risk of a significant energy price rise has intensified as energy companies and the regulator emphasized that the more expensive dollar and higher prices for crude oil will have to feed into domestic prices. This could hurt the already optimistic inflation outlook, which may be a risk for the future, while these concerns look to be ignored by the market for now.
extended gains running to the 3.87 EUR/PLN area. The rally was fueled by better than expected US payrolls and the continuing impact of hawkish comments made by central bankers earlier during the week. Nevertheless we are somewhat suspicious whether recent comments represent prevailing sentiment on the newly reelected board. Although we expect the monetary tightening to come in the second half of the year, it may be difficult for the board to be too aggressive in case of a sharp appreciation of the Polish zloty.
This week is empty on the domestic scene. We are curious to hear any comments from key policy-makers on recent gains of the Polish currency. If the situation in Greece continues to improve, the zloty may try to test another important technical level at 3.85 EUR/PLN.

fxstreet.com

Dollar extends gains vs. majors

admin — Sun, 28 Feb 2010 16:10:33 +0000

Dollar extends gains vs. majors
Mon, Mar 1 2010, 11:46 GMT
Investors are patiently waiting for the jobs report that is to be released from the U.S. economy this week, sinceit will help us determine the current job conditions in the economy. Currently, we see that the dollar is surging in the markets versus major currencies while the Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 80.74 while recording a high of 80.75 and a low of 80.28.
In the euro zone, the focus remains on Greece’s debt which stood at 12.7% of their GDP last year, while today the European Union Monetary Affairs Commissioner is going to help Greece narrow that budget deficit, since later on they will meet with Prime Minister George Papandreou and might offer them 25 billion euros. The news of Greece being aided by European officials did not support the euro, while we see the EUR/USD traded at 1.3595 between the support of 1.3515 and the resistance of 1.3670, the pair so far recorded a high of 1.3653 and a low of 1.3585.
The pound tumbled heavily in markets versus the dollar, since polls revealed that the United Kingdom might have had a hard time narrowing their budget deficit, which therefore might weigh on growth prospects. The GBP/USD is currently traded at 1.4977 between the support of 1.4850 and the resistance of 1.5065, while recording a high of 1.5202 and a low of 1.4963. The momentum indicators on the one-hour charts show us that the pair is being traded in an oversold area while there is low volume in the markets.
As Asian stocks climbed, demand reduced for lower yielding assets which is why the yen tumbled in markets against the federal currency, as the pair currently trades at 89.32 while recording a high of 89.35 and a low of 88.80. For the pair, we see there is a support at 88.50 and a resistance at 90.00, while the momentum indicators on the one-hour charts are showing us that the pair is being traded close to an overbought area.

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