The Nasdaq recently came in touch with the neutral line, but was unable to extend the move into positive territory. It has since slid back to a modest loss.
Treasuries are facing some upward resistance of their own. Despite the weakness in the broader stock market, the benchmark 10-year Note has been unable to push higher in order to drive down its yield below 2.90%. The Note's yield has not yet been below that line this year.
The dollar rose against most of its 16 major counterparts after Federal Reserve Chairman Ben S. Bernanke signaled yesterday that the central bank won’t add to stimulus measures that could erode the value of the currency.
The Fed’s $600 billion program of U.S. debt purchases, its second round of quantitative easing, ends this month.
“We’re seeing dollar strength today because as QE2 ends the Fed has ignored the prospect for QE3, as they said the main reason for doing QE2 was to avoid deflationary pressures, which are no longer an issue,” said Eric Viloria, senior currency strategist at Gain Capital Group LLC in New York.
The euro fell versus the greenback as European Central Bank President Jean-Claude Trichet said the debt crisis threatens to infect banks. Currencies of oil-exporting countries, such as Canada’s dollar, tumbled after the International Energy Agency said it will release oil from emergency stockpiles.
The Swiss franc rose against all of its major peers, reaching a record against the euro, amid concern the global economy will falter.
A report showed European services and manufacturing growth slowed in June more than economists forecast, adding to signs the economy is losing momentum. A composite index based on a survey of euro-area purchasing managers fell to 53.6 from 55.8 in May, London-based Markit Economics said.
Applications for jobless benefits in the U.S. rose 9,000 in the week ended June 18 to 429,000, the Labor Department said today. Purchases of new houses fell in May for the first time in three months, dropping 2.1 percent to a 319,000 annual pace, Commerce Department data showed today in Washington.
The euro dropped amid concern Greek Prime Minister George Papandreou will face difficulty in getting parliamentary approval for budget cuts and asset sales needed to qualify for more aid.
European leaders meet today in Brussels for a two-day summit on Greece. German Chancellor Angela Merkel told reporters they’ll reaffirm a time-line for assistance to Greece hammered out by euro-area finance ministers. The finance chiefs will decide on July 3 whether Greece has met conditions for its next aid payment.
Antonis Samaras, leader of the opposition in the Greek parliament, said his party will vote against the government’s new austerity measures, contrary to European Union calls for unity, the Financial Times reported, citing an interview.
Recent efforts to trim losses have run into resistance. Although the stock market is retracing part of the upward move, it is still above its session low.
USD/JPY recovers after printing an hourly lows around Y80.60. Rate earlier declined from session high on Y80.80. Resistance at Y80.90/95 (Y80.94 - 16 June intraday high) with a break above opens Y81.05/10 where large offers placed. Initial bids at Y80.30/25.
GBP/USD probes a new session lows around $1.5948 with options were earlier mentioned at $1.5950. Stops at $1.5940. A break below opens the way to $1.5920. Next support at $1.5915 and then - barrier at $1.5900. Bids placed between $1.5880/85.
EUR/USD $1,.4200, $1.4300, $1.4315, $1.4330, $1.4375-80, $1.4400, $1.4430
USD/JPY Y81.00, Y81.50, Y81.65, Y81.80
GBP/USD $1.6100, $1.6120, $1.6155
EUR/GBP stg0.8865
GBP/CHF Chf1.3690
AUD/USD $1.0400, $1.0455, $1.0465, $1.0480, $1.0750
AUD/JPY Y85.15, Y82.50
U.S. stocks were poised to extend declines from the previous session Thursday, as a weak report on unemployment claims and the Federal Reserve's gloomy comments about the economy weighed on investors.
Economy: A report on initial claims showed 429,000 Americans filed for their first week of unemployment benefits last week. That marked an increase of 9,000 new claims over the week before, and was far weaker than the 413,000 claims economists had expected.
Further attention is on May new home sales at 14:00 GMT.
Companies: Shares of Red Hat (RHT) added 5% before the market open, after the company reported better-than-expected first-quarter results and hiked its full-year forecast late Wednesday.
Pfizer (PFE, Fortune 500) and Bristol Myers Squibb (BMY, Fortune 500) released positive results. Shares of Pfizer rose 4% in premarket trading, while shares of Bristol Myers Squibb climbed 7%.
Looks like market decided to ignore the US Labor Department data on Jobless claims (+429k versus median +415k). Currently EUR/USD weakens, holding around session lows on $1.4164 amid EU summit. GBP/USD also under pressure after weak CBI data, trading around $1.5970.
Data released:
06:58 France PMI (June) flash 52.5 53.8 54.9
06:58 France PMI services (June) flash 56.7 60.3 62.5
07:28 Germany PMI (June) flash 54.9 56.8 57.7
07:28 Germany PMI services (June) flash 58.3 55.5 56.1
07:58 EU(17) PMI (June) flash 52.0 53.7 54.6
07:58 EU(17) PMI services (June) flash 54.2 55.4 56.0
08:00 Italy Consumer confidence (June) 105.8 105.0 106.5
10:00 UK CBI retail sales volume balance (June) -2% 12% 18%
The euro weakened before European leaders begin a two-day summit in Brussels today to discuss Greece’s financial problems. The single currency dropped for a second day against the dollar on prospects Greek Prime Minister George Papandreou will face difficulty in getting parliamentary approval next week for a package of budget cuts and asset sales, needed to be eligible for a second round of aid.
European finance chiefs will decide on July 3 whether Greece has met conditions for its next aid payment.
European Central Bank President Jean-Claude Trichet said the debt crisis threatens to infect banks.
The euro also declined as Athens-based newspaper Kathimerini reported that officials from the European Union and International Monetary Fund assessing Greece’s efforts to cut its budget deficit have expressed doubts about the viability of 3.8 billion euros of measures slated for this year. The measures are part of a total of 6.4 billion euros in deficit-reduction measures this year.
EUR/USD remains under pressure after rate triggered stops between $1.4250/40. Next support placed at $1.4214 (61.8% Fibo of $1.4073/1.4442 move). Bids suggested from this level and extending toward $1.4200. Resistance now seen at $1.4250/60 ahead of $1.4280.
GBP/USD tries to recover after it tasted support at $1.5980. Bids remain around $1.5980/70. A break below to open a deeper move toward $1.5950 ahead of $1.5915/00. Resistance placed at $1.6000/05.
USD/JPY retreated from session highs on Y80.65 and currently holds a bit lower. Support is near Y80.35 (local lows).
US data for today include initial jobless clains at 12:30 GMT and new home sales at 14:00 GMT.
GBP/USD challenges support around $1.5980, trading a bit higher. Bids remain around $1.5980/70. A break below to open a deeper move toward $1.5950 ahead of $1.5915/00. Resistance placed at $1.6000/05.
EUR/JPY follows euro decline and refreshed session lows at Y114.55. Cross now holds at Y114.60 with bids between Y114.50/40 try give some support. Break under opens the way to Y114.05/00 with techs support comes at Y113.98 (200 day MA). Resistance at Y115.30/40, further offers waiting at Y115.75/80.
EUR/USD still weakening, holding currently around $1.4222 after rate triggered stops between $1.4250/40. Next support placed at $1.4214 (61.8% Fibo of $1.4073/1.4442 move). Bids suggested from this level and extending toward $1.4200. Resistance now seen at $1.4250/60 ahead of $1.4280.
The euro weakened against most of its major counterparts before European leaders begin a two-day summit in Brussels today to discuss Greece’s financing needs as the nation struggles to stave off default.
EUR/USD $1,.4200, $1.4300, $1.4315, $1.4330, $1.4375-80, $1.4400, $1.4430
USD/JPY Y81.00, Y81.50, Y81.65, Y81.80
GBP/USD $1.6100, $1.6120, $1.6155
EUR/GBP stg0.8865
GBP/CHF Chf1.3690
AUD/USD $1.0400, $1.0455, $1.0465, $1.0480, $1.0750
AUD/JPY Y85.15, Y82.50
Resistance 3: Y81.80 (high of June)
Resistance 3: Chf0.8520 (Jun 20 high)
Resistance 3: $ 1.6255/60 (area of Jun 21-22 high)
Resistance 3: $ 1.4500 (area of Jun 14 high)
07:28 Germany PMI (June) flash 56.8 57.7
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