Daily Currency Outlook

Dollar/Rupee  The Indian rupee extends losses for the second straight day Tuesday on dollar demand from oil importers in a truncated weak, while bond yields traded mixed on profit booking by nationalized and private banks amid growing optimism of a rate cut by the central bank at policy review next…

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No respite! Rupee falls against US dollar; hits fresh 2-year low

Continuing with its recent downward bias, rupee depreciated 34 paise to 65.34, to hit fresh two-year low against the US dollar in trade today. The domestic currency had snapped a seven-day losing streak, settling 10 paise higher at 65 against the greenback on Friday amid fresh selling of the US…

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FX round-up: Dollar responds to disappointing home sales sata

The dollar rose but trimmed gains against most major currencies on Monday after lower-than-expected results came in for US home sales and speculation continued over whether Greece would announce acceptable conditions for is bailout extension. The National Association of Realtors revealed that existing home sales fell 4.9% to 4.82m units…

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FX round-up: Dollar falls amid consumer sentiment data

The dollar fell slightly against most major currencies on Friday as US consumer sentiment data drew concern for the country’s economic recovery. According to the University of Michigan, the consumer sentiment index fell from 98.1 in January to 93.6 on February. Inflation expectations also rose for the next year, from…

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Dollar recedes amid poor US economic data

The dollar fell against most major currencies on Tuesday after US factory orders data came in lower than expected. The US Census Bureau said factory orders dropped 3.4% in December, undercutting consensus expectations of -2.2%. The figures followed Monday’s disappointing data which said that consumer spending had fallen faster in December…

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Europe close: Santa holds sway in London, but Madrid and Paris fall

With many stock markets on holiday already or due to close early, volumes remained minimal across Europe on Christmas Eve as low levels of newsflow prompted many traders to hit the road early. Trading volumes were “thinner than the spread on Scrooge’s Christmas table”, according to analyst Chris Beauchamp from…

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Broker tips: Rolls-Royce, GKN, Thorntons

Investec has trimmed its target for Rolls-Royce from 900p to 860p and kept its ‘hold’ rating, saying that a faster decline in Trent 700 production “increases headwinds” for the engine maker. “The Trent 700, that powers the A330ceo, is currently Rolls’ most significant in production engine. We reduce our forecasts…

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Russian rouble plummets as traders bet against central bank

Overnight, Russia’s central bank hiked short-term interest rates in a bid to stem a rout in the country’s currency. The increasingly tense geopolitical situation and accompanying sanctions have been weighing on investment flows into the country, which even before the current crisis in Ukraine always had trouble attracting investors’ monies.…

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Broker tips: Rio Tinto, Intertek, Balfour Beatty, Berkeley, Betfair

Citigroup has said that a potential spin-off of Rio Tinto’s Canadian aluminium business could be good for the business. It believes Alcan is “worth more outside of Rio than within” and said it doesn’t offer Rio any diversification benefits given its overall margins. “We believe there would be 10-20% value…

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Commodities: Strengthening dollar weighs on oil and copper futures

The commodities complex saw widespread selling pressure on Tuesday as the US dollar continued to gain ground as expectations surrounding a prompt start to the Fed’s interest rate cycle continued to cristalise. US Federal Reserve vice-chairman Stanley Fischer reiterated for a second day that the moment to remove the reference…

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Asia: Chinese stocks surge, as economist warns of bubble

Asian equities saw gains almost across the board on Thursday, as bullish sentiment surrounding Chinese stocks continued to build. Acting as a backdrop, the US dollar/yen was fast approaching the 120 yen mark, a level it had not surpassed since July 2007. That propped up stock in Japanese car manufacturer…

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FX round-up: US dollar index at five-year high, rouble at record low

The US dollar index closed higher for a fifth consecutive month last Friday, its longest such stretch since March 2013, even as the European single currency managed to eke out a small weekly gain. Weakness in oil-related currencies sent the spot dollar index 0.6% higher to 1,106.90, with the euro/dollar…

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Commodities: Iraq says OPEC must act to support prices

The commodity patch saw some selling pressure at the start of the week, as market operators braced for the release of a barrage of economic data due out Stateside, not to mention the OPEC summit due to take place in Vienna, on Thursday. Some market commentary described the upcoming meeting…

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Broker tips: Sky, J Sainsbury, Wolseley

Deutsche Bank has reinstated its coverage of Sky with a ‘hold’ rating and 1,000p target, saying that “investors can afford to wait” amid material near-term uncertainties regarding the company’s future. The bank previously had a ‘buy’ recommendation on the stock with a 1,100p target. The bank said: “Near-term, the new…

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US Stock Report

Happy Thanksgiving to Everyone! Please enjoy a safe and enjoyable holiday with family and friends. The U.S. Commerce Department on Wednesday reported the sale of new U.S. single family homes rose by 0.7% during October, to a seasonally adjusted annual rate of 458,000 units. The rise in October was the…

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Commodities: Iraq says OPEC must act to support prices

The commodity patch saw some selling pressure at the start of the week, as market operators braced for the release of a barrage of economic data due out Stateside, not to mention the OPEC summit due to take place in Vienna, on Thursday. Some market commentary described the upcoming meeting…

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Broker tips: BT, Sage, Compass, Thomas Cook

UBS has speculated that if BT follows through with its current talks to buy O2 or EE it would become less aggressive in the forthcoming Premier League rights auction and produce a better outcome for Sky. “We think concerns about Sky losing the EPL rights are weighing on investor sentiment…

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Week in FX Europe – Draghi Hands Ammo to Euro Bear

Draghi’s Dovish Remarks Suffocate EUR Market expects ECB to announce new measures in December Greater Euro/U.S rate divergence needs to be priced The euro bear got a subtle hint yesterday to consider “not” booking any EUR profits just yet, all because the EUR bull happened to be blinded by flash…

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U.S. Dollar Ducks and Dives for Respect

Sterling bulls stung by QIR The “Wonder” from down-under hurt by RBA comments Japan to weaken Yen by any means Swiss gold referendum nears This market is a natural U.S. dollar lover, nevertheless, investors are still searching for an incentive to help kick-start the buck to regain focus and begin…

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Dollar regains some ground as markets digest U.S. jobs data

The dollar regained some ground against a basket of other major currencies on Monday, as markets digested Friday’s softer than expected U.S. jobs report which had prompted investors to book profits in the greenback after its recent rally. The US dollar index, which tracks the performance of the greenback against…

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Gold Rallies Most in Five Months, SPX 500 Stalling Near Record High

US DOLLAR TECHNICAL ANALYSIS – Prices appear vulnerable to a correction lower having produced a bearish Dark Cloud Cover candlestick pattern. A daily close below the 23.6% Fibonacci retracement at 11211 exposes the 11143-55 area marked by the October 3 high and the 38.2% level. Alternatively, a turn above the…

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Bitcoin Rally Stalls at $350

The $350 figure proved to be a formidable barrier yet again. The $345-$350 area was significant support on the way down but after prices broke below two weeks ago, it switched to a resistance level. Last week a short-lived spike took prices briefly above the $350 mark but less then…

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Forex – EUR/USD rises off 2-year lows on U.S. data

The euro rose against the U.S. dollar on Friday, pulling away from a two-year low as disappointing U.S. nonfarm payrolls data dampened demand for the greenback. EUR/USD hit 1.2439 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2422, gaining 0.41%. The pair was likely to find…

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The Secrets of Insider Trading

The Secrets of Insider Trading By Geoffrey Pike Amid allegations of manipulation, the world’s largest banks are voluntarily changing their practices regarding currency trading.While this is being done in the name of regaining customer trust, some speculate that the banks are doing this preemptively in order to prevent further action…

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Bitcoin Slightly Up, New Trading Range Defined

Bitcoin prices are trading slightly up today. After reaching a low of $465.99 in the early trading session, BTC/USD rallied to hit a daily high of $474.20. The move up stopped there however and in the next 10 hours prices have remained more or less unchanged. One bitcoin is currently…

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