Thread: Forex News from InstaForex

Fxwirepro: Japanese Yen Gains in Early Asia on Robust Core Cpi Data





USD/JPY is currently trading around 109.76 marks.
It made intraday high at 109.79 and low at 109.55 levels.
Today Japan released core CPI data with positive numbers at -0.3% m/m vs -0.4% m/m consensus forecast. Intraday bias remains neutral for the moment.
A sustained close above 110.38 is required to take the parity higher towards key resistances around 111.34 (April 05, 2016 high), 112.60 (55D EMA) and 113.42 levels respectively.
Alternatively, a sustained break below 109.41 will drag the parity down towards key supports at 108.72, 107.94, 106.15, 105.71, 105.45 and 104.55 levels respectively.


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Abe poised to defer 2017 sales tax hike - sources





Japanese Prime Minister Shinzo Abe will postpone a national sales tax hike initially planned in April next year.
Government sources disclosed the postponement was caused by woes the tax increase might push the country back into deflation. They added the premier will defer the tax raise by one to three years.
Abe will hold a meeting with Finance Minister Taro Aso Sunday and coalition partner Komeito head Natsuo Yamaguchi Monday to determine the right timing to implement the tax increment.


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Fxwirepro: Usd/krw Hovers Around Key Resistance at 1194, Intraday Bias Remains Neutral





USD/KRW is currently trading around 1190 levels.
It made intraday high at 1190 and low at 1189 levels.
Intraday bias remains neutral for the moment.
A daily close above 1194 is required to drag the parity higher towards key resistances at 1195, 1201, 1209 (20D EMA) and 1220 (March 03, 2016 high) marks respectively.
Alternatively, a sustained close below 1182 will tests key supports at 1172, 1162, 1153 (November 2015 low) /1142 (20D EMA)/ 1134/1127 (October 2015 low) /1121/1115 levels respectively.
Daily chart showing the 20D EMA has crossed over 30D and 55D EMA, which signals bullish trend. In addition, a sustained close above 1194(high as on May 24, 2016) is also required to confirm the same.
Today South Korea released Manufacturing BSI index with positive numbers at 72 m/m vs 69 m/m previous release.
We prefer to take long position in USD/KRW only above 1194, stop loss 1177 and target 1209 marks.


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Gold hits lowest level since February as Fed implies rate hike





Gold touched its weakest level since February as Federal Reserve Chair Janet Yellen indicated another interest rate hike might be considered in the following months, citing strengthening US economy. The Fed head backed what some policymakers have mentioned last week, that signs of improving US economy meant raising rates could now be taken into account. Bullion for immediate delivery closed at $1,200.03 per ounce, down 1%, the lowest since February 17. Prices, which have dropped for ninth consecutive days, are poised for its biggest monthly decline since 2013.


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Challenging Operating Environment and Deteriorating Asset Quality and Profitability





Moody's Investors Service says the outlook on China's banking system remains negative, reflecting a challenging operating environment, and banks' deteriorating asset quality and profitability.
"Rising system leverage and worsening credit conditions exert continued pressure on the banks' asset quality and profitability," says Yulia Wan, a Moody's Assistant Vice President and Analyst.
"In addition, China's sovereign outlook change to negative from stable in March 2016 affected the ratings of banks that had incorporated a degree of government support and uplift," says Wan.
The presentation -- "Rising System Leverage and Impact on Banks' Credit Profiles" -- was held at Moody's 2016 Mid-Year China Conference: Understanding the Risks of High and Rising Leverage in Beijing on 31 May. The Shanghai conference is scheduled for 2 June. The morning seminars feature senior Moody's managers and analysts, and cover a broad range of sub-themes.
The change in Moody's Macro Profile on China's banking system to "Moderate" from "Moderate+" in March 2016 reflected the continued rise in leverage in the Chinese economy from an already high level. The change of the Macro Profile has led Moody's to reassess Chinese banks' financial factors and standalone profiles.
"While our rated banks are not immediately affected by this Macro Profile change, their standalone credit profiles face downward pressure," says Wan.
According to Moody's, asset quality is deteriorating with increasing nonperforming loans (NPLs) and rising credit costs; there is a widening gap between NPLs and 90+ day delinquencies as greater numbers of 90+ day delinquencies are not recognized as NPLs.
In addition, shadow banking assets accounted for nearly 80% of GDP in 2015. Increasing interconnectedness between banks and the shadow banking system could put additional pressures on banks' asset quality.
Investments in loans and receivables among the 26 listed banks in China jumped four-fold to RMB10.4 trillion from RMB2.5 trillion between 2012 and 2015.
Moody' stressed that these investments are an opaque source of asset risk.
However, Moody's says there are several mitigating factors that support the credit profiles of Chinese banks.
These include the banks' (1) good profitability relative to global peers, despite increasing impairment charges and pressure on net interest margin; (2) loan loss reserves, which provide a buffer against losses despite its rapid decline; (3) broadly stable liquidity, despite pressures from capital outflows and a growing portfolio of illiquid investments; (4) adequate capital, though falling behind global standards; (5) increasing NPL write-offs and sales; (6) support from the government, which remains a strong and key credit factor.


This year's conference will include the following plenary sessions:
• Incorporating government support in the ratings of SOEs amid rising defaults
• China property outlook -- slowing growth and increasing competition raise risks
• Why does the build-up in corporate leverage matter to the sovereign?
• Does high leverage pose a risk to financial system stability?
• What risks do corporates face from high leverage, overcapacity and restructuring?
• Diversifying sources of finance


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Chinese woes, Fed rate hike force investors to ditch Asian holdings





Chinese economic woes and the Federal Reserve's brewing interest rate hikes have pressured investors to sell its Asian bonds and currencies. An HSBC data indicated a net $3.2 billion ditched equity markets in the region, excluding Japan, the biggest outflow since January. The report added bond markets in Indonesia and South Korea are now receiving huge reverse of inflows, while currencies have slumped sharply. The MSCI Asia-Pacific Index climbed 19% between late January and the end of April in the wake of tailwinds of a dovish Fed, hopes the Chinese economy will recuperate, and stabilization in commodity prices.


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Fxwirepro: South Korean Won falls on the Back of Lower Than expected Cpi Data





USD/KRW is currently trading around 1190 levels.
Overnight South Korea released CPI data with negative numbers.
South Korea’s May CPI growth Y/Y decreases to 0.8 % (forecast 0.90 %) vs previous 1.0%. In addition, CPI growth M/M decreases to 0.0 % (forecast 0.20 %) vs previous 0.1 %.
On the other side, South Korea’s April current account balance decreases to 5.14 bln $ vs previous 10.07 bln $ (revised from 10.07 bln $).
South Korea’s May trade balance prelim decreases to 7.1 bln $ vs previous 8.80 bln $.
Intraday bias remains bullish till the time pair holds key support at 1177 marks.
A daily close above 1194 is required to drag the parity higher towards key resistances at 1195, 1201, 1209 (20D EMA) and 1220 (March 03, 2016 high) marks respectively.
Alternatively, a sustained close below 1182 will tests key supports at 1172, 1162, 1153 (November 2015 low) /1142 (20D EMA)/ 1134/1127 (October 2015 low) /1121/1115 levels respectively.
Daily chart showing the 20D EMA has crossed over 30D and 55D EMA, which signals bullish trend. In addition, a sustained close above 1194(high as on May 24, 2016) is also required to confirm the same.
We prefer to take long position in USD/KRW only above 1194, stop loss 1177 and target 1209 marks.


News are provided byInstaForex.

EU hate speech accord highlights escalating pressure over content regulation





When the European Union and four major US internet firms agreed to halt illegal hate speech from their services, they are facing intense pressure to curtail and monitor content. Under the agreement, Facebook Inc., Google's YouTube, Microsoft Corp., and Twitter Inc. will look into reports of hate posts within 24 hours and disable or revoke access to the content, if needed. Governments in the region have been responding to increasing commentaries on pro-Islamic State, anti-immigrant, and other sensitive issues on social media. Although the four companies played down the importance of the agreement, people privy to the matter disclosed the recent EU pact is inclined to implementing more prohibitions.


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Nikkei down Over 2 Pct, Gold steady Above $1210





All the major Asian stock indices are trading on a lower note on Thursday but the Japan’s Nikkei falls the most above 2 pct. In addition, Japanese Yen hits fresh 2 –week high against US dollar after comments from the BOJ’s Sato. USD/JPY breaks 109.00 marks and trading around 108.90 levels. On the other side, Gold remains well supported above $1200 and trading around $1215 marks. Expected trading range for the gold is $1208 to $1227 marks. Japan’s Nikkei N225 was trading 2.29% lower at 16,568 points in Tokyo. South Korea’s Kospi was trading 0.11% higher at 1,984.60 points. Shanghai composite index to open down 0.1 pct at 2,911.22 points and China's CSI300 index to open down 0.1 pct at 3,158.03 points. Hong Kong’s Hang seng index was trading 0.52% higher at 20,864.52 points. Australia’s S&P/ASX 200 was trading 0.83% lower at 5,278.50 points.


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U.S. Pushes to Block North Korea from Banking System





The United States government warned that foreign banks doing business with North Korea will face U.S. sanctions or fines. The insular communist country's series of ambitious nuclear arms tests that started this January raised accusations of money laundering activities to fund its lucrative nuclear testing, prompting the U.S. administration to call North Korea a "primary money laundering concern” and to take actions to cut off the country from accessing the U.S. financial system. U.S. Treasury also stated that all government and financial authorities are expected to follow suit and cut banking ties with North Korea.


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