Crude Back at $50 as Traders Anticipate Sharp Draw in US Stocks

Oil prices are little-changed at the time of this writing after they snapped back into the positive territory and above $50 a barrel late in the day yesterday. Both oil contracts were lower in the first half of yesterday's session. This was possibly due to a rebounding US dollar and profit-taking ahead of US oil inventories data, especially since prices had risen rather sharply in the prior couple of days. Crude oil, which has been unable to decouple itself from risk assets, was also tracking the movements in equities and GBP ahead of the all-important Brexit vote on Thursday. The GBP/USD and stocks gave up their earlier advance yesterday after new polls showed support for Brexit had increased a tad. So oil was coming under pressure from this source, too.

EUR/USD – Euro Resumes Slide, Markets Eye Fed Rate Statement

EUR/USD has posted considerable losses on Tuesday, erasing the gains which marked the Monday session. The pair is trading slightly above the 1.12 level. On the release front, Eurozone Employment Change Industrial Production. Both indicators beat their estimates. In the US, today's highlights are Core Retail Sales and Retail Sales. The estimate for both reports stands at 0.4%.
All eyes are on the Federal Reserve's policy meeting, which will conclude with a rate statement on Wednesday. The markets have written off a rate hike in June, while a July move remains unlikely, according to the CME Group. The chances of a June hike are just 1.9% compared to a 26.3% in May. The chances of a July hike is 17.9%, compared to 43.2% in May. The sharp drop in market sentiment for a rate hike can be attributed to the dismal US Nonfarm Payrolls report as well as some back pedaling by Fed over the past few weeks.

USD/JPY – Yen Edges Lower, Fed Rate Statement Looms

The Japanese yen has edged lower, as the yen continues to show limited movement. USD/JPY is slightly below the 106 line. On the release front, Japanese Revised Industrial Production slipped to 0.5%, within expectations. In the US, today’s highlights are Core Retail Sales and Retail Sales. The estimate for both reports stands at 0.4%.
USD/JPY continues to show little movement, but the yen has recorded strong gains against the euro and the British pound. EUR/JPY and GBP/JPY are at 3-year lows, in response to continuing uncertainty over the Brexit referendum, as the “Leave” camp has gained strength in recent polls.

Amlin purchase bid boosts sterling

With very little economic news of note discharged on Tues, sterling announce gains against each the monetary unit and North American nation dollar as news poor of a £3.5 billion bid by a Japanese company, Mitsui Sumitomo Insurance, to buy Great Britain nondepository financial institution Amlin.

With investors recently pushing back dates on once the Bank of European country (BoE) area unit doubtless to boost interest rates within the Great Britain, sterling has found itself fraught, falling to its lowest levels since Gregorian calendar month towards the tip of last week. However, with a major purchase of sterling doubtless to require place within the wake of this deal, sterling found support across the board. Confidence appearance set to come back to British people economy generally

Revised Eurozone growth figures do little to help boost the euro

Yesterday was another muted day for the euro as the only significant data releases consisted of revised growth figures for the Eurozone, which came out at 0.4%, slightly better than the forecasted 0.3%, and the trade balance data for Germany which came out close to expectations and again highlighted the power of the German economy to generate exports. Against sterling, the euro briefly weakened to its worst level in three-weeks but did regain some ground in the afternoon. The euro was largely unchanged for the second day in a row against the US dollar, with the US markets opening again yesterday after Labour Day.

It would appear that the quiet week will continue for the single currency as there is no news out on Wednesday. This means that the euro is more susceptible than usual to events elsewhere.

If you are looking to buy or sell euros, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Busier today following Labour Day in the US

Yesterday was a quiet day for data releases in the US, with only JOLTs job openings data released, which showed a figure that was slightly better than expected. This shows that there are continued job opportunities, which could be why the US Federal Reserve are not too worried about last week’s slump in non-farm employment change. We saw some movement in the US dollar, as sterling strengthened as a result of takeover talks at insurance giant Amlin.

There are more data releases from the US on the table today compared to the last couple of days. The weekly unemployment claims is expected to show a slight drop, while import prices are expected to decrease further due to the strengthening US dollar.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

USD/JPY Forecast: Yen soars as US Retail Sales miss

Yen soars as US Retail Sales miss. The USD/JPY pair extended its pullback after being as high as 123.72 earlier this week, weighed by poor US Retail Sales data. The big miss helped the Japanese yen to resume its advance, and the USD/JPY now struggles around the 123.00 level. Technically, the 1 hour chart shows that the 100 and 200 SMAs stand well below the current price, with the largest offering a dynamic support in the 122.45 region,whilst the technical indicators head sharply lower in negative territory. In the 4 hours chart, the technical indicators have also turned strongly lower from overbought levels, but so far remain above their mid-lines, suggesting the bearish movement could be just corrective. Nevertheless, renewed selling pressure below 122.90 should lead to a test of the mentioned 122.45 level, while below this last, the slide can extend down to 122.00. To the upside, 123.30 is key, as selling interest should surge around the level, to maintain the bearish tone in place.

Support levels: 122.90 122.45 122.00

Resistance levels: 123.30 123.70 124.10 

Source:    www.fxstreet.com

POUND REMAİNS WEEK AS CONFİDENCE REACHES RECORD LOW

The Great Britain strengthened a little yesterday as the retail sales rose last month, but the currency hasn't been able to retain its upward momentum and currently moves without a clear direction.

The volume of the UK retail sales increased 0.6 percent in October from September, following the 0.5 percent increase in the preceding month. That’s much better than market expectations of a 0.2 percent drop. The value of the sales rose 0.7 percent. The report noted that small stores performed better than larger ones.

What Is Forex Margin Trading?

In the world of forex, margin trading (or "buying on margin", or "trading on margin") means trading with short-term borrowed capital. Margin is thus a form of borrowed money or debt. This borrowed capital is used to buy much more currency that you’d be able to purchase ordinarily (unless you have hundreds of thousands of dollars available). In the forex market, currencies are usually traded in lots, with a standard lot being $100,000. (The forex market is a highly leveraged market.)

CANADIAN DOLLAR ADVANCES ON GDP FIGURES

After Canada posted positive quarterly gross domestic product figures, the national currency benefited on the economic outlook and optimism, advancing versus most of the 16 main traded currencies in foreign-exchange markets.

POUND DOWN ON WEAKER THAN EU OUTLOOK

The pound started the week down versus the euro and the U.S. dollar as sentiment towards other wealthy nations in the world remain more positive than the U.K.’s economic perspectives, forcing investors to abandon pound priced assets to inject capital in more attractive currencies backed by fast recovering nations.

MEXICAN PESO UP AS STOCKS HIT RECORD HIGH

The Mexican currency had a winning performance versus several important currencies as stocks rallied on speculations that the Latin American economy will recover faster than other emergent markets.

YEN DROPS ON INTERVENTION TALKS

The Japanese currency declined versus most of the 16 main traded currencies after speculations rose that Japanese officials are ready to intervene on the current yen’s level, as it would be an obstacle for the Japanese economic recovery, decreasing competitiveness for the nation’s exports.

DOLLAR RISE ON U.S. STOCKS DECLINE

After a very sharp fall versus the euro and high-yielding currencies, the dollar gained today as equities markets, specially in the U.S. ended a rally that started in the beginning of the week with renewed optimism regarding the Dubai debt.

BRAZILIAN REAL BENEFITS FROM CHINA’S MANUFACTURING

The Brazilian real, together with most emergent markets currencies, climbed today, specially versus the greenback and the yen, as risk appetite returned to markets on renewed optimism.

Dollar Slumps After Jobs Miss and Other Top Forex News.

The U.S. dollar fell against most of its rivals on Friday after U.S. jobs data came in under expectations, fuelling uncertainty over the Federal Reserve’s next move.

Official data showed that the U.S. economy added 169,000 jobs in August, less than the expected 180,000 increase, after a downwardly revised 104,000 rise the previous month.