Thread: Forex News from InstaForex

Canadian Dollar Drops Against Most Majors





The Canadian dollar weakened against most major currencies in the Asian session on Tuesday.
The Canadian dollar fell to a 4-day low of 79.18 against the yen, from yesterday's closing value of 79.81.
Against the euro and the U.S. dollar, the loonie dropped to 1.4349 and 1.2892 from yesterday's closing quotes of 1.4322 and 1.2845, respectively.
If the loonie extends its downtrend, it is likely to find support around 76.00 against the yen, 1.46 against the euro and 1.31 against the greenback.


News are provided byInstaForex.

Line Lifts IPO Price Range to Meet High Demand





Japan's Line Corp., the nation's biggest messaging application operator moved its price range for an upcoming IPO by as much as 115.5 billion yen or $1.12 billion due to the strong demand.


Line lifted its price range from 2,700 yen to 3,200 yen a share up to 2,900 yen to 3,300 yen or $28.50-$32.50 a share. The company is targeting a dual listing in Tokyo and New York scheduled on July 14 and 15. It is expected to be the biggest technology listing so far in 2016.


Line stated in a news release that its decision to lift its price range has factored in demand trends and the current stock market environment that revealed that investors remain interested on the IPO regardless of the market disruption post-Brexit.


The Japanese firm is offering 13 million shares and 22 million shares in Japan and New York, respectively. An additional 5.25 million shares could be offered via a “green shoe” option, which enables the offering of more shares in case of exceptional demand.


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Fxwirepro: Usd/jpy Breaks Key Support at 101.39, Intraday Bias Remains Bearish





USD/JPY is currently trading around 101.19 marks.
It made intraday high at 101.76 and low at 101.05 levels.
Intraday bias remains bearish till the time pair holds key resistance at 102.80 marks.
A daily close above 103.39 will take the parity higher towards key resistances around 103.78, 104.80, 106.12 and 107.46 levels respectively.
On the other side, a sustained break below 101.39 will drag the parity down towards key supports at 100.98, 99.27 and 98.82 levels respectively.
No major economic data is scheduled from Japan but on the other side, US will release ISM non manufacturing PMI as well as FOMC meeting minutes later today.


News are provided byInstaForex.

BlackBerry to Halt Classic Smartphone Model Production





BlackBerry Ltd. will stop manufacturing the BlackBerry Classic, an updated version of the original and classic model that made the company a smartphone trendsetter before other smartphone giants Apple Inc. and Samsung Electronics Co. unseated it.


CEO John Chen unveiled the Classing after becoming part of the firm back in 2013, reviving the Blackberry's signature raised-button keyboard. The resolution to out phase the Classic is another step to continue the extermination of the BB10 OS, which will now only be operating on Passport model, as they change focus to new phones running on Android platform.


In addition to BlackBerry's introductory Android phone model, the Priv, the firm is also working on two more Android phones.


BlackBerry dropped 2.3% to $6.61 at 12 noon in NY. The stock has plunged 27% so far this year.


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Moody's: Korea's Public Sector Reforms Present Mid- and Long-Term Credit Challenges for State-owned Companies





Moody's Investors Service says that the Korean government's (Aa2 stable) planned public-sector reforms will raise the risk of credit quality erosion for many rated infrastructure and corporate government-related issuers (GRIs) and their subsidiaries over the medium and long term. "Such issuers will face rising medium- and long-term credit challenges, as a result of the reforms, because a stable regulatory and policy environment has been a key factor underpinning their issuer ratings, which incorporate the probability of extraordinary government or parental support," says Mic Kang, a Moody's Vice President and Senior Analyst. "However, the credit quality of these rated issuers will mostly remain steady over the next 1-2 years because the Korean government's reform plan, announced on 14 June 2016, calls for only moderate changes in the operations of most companies," says Kang. Kang was speaking on Moody's recently-released sector-in-depth report on Korea's GRI sector, "Government-Related Issuers -- Korea: Public-Sector Reforms Raise Medium- to Long-Term Credit Challenges". The report was authored by Kang and Wan Hee Yoo, a Moody's Vice President and Senior Analyst. "Of the rated state-owned companies, Korea Resources Corporation will likely be the most exposed to reform-related challenges, owing to its waning policy role," says Yoo. We also note that the government intends to downsize Korea Resources Corporation's (Aa3 negative) mining investment business and loss-making mining portfolio. In contrast, although Korea National Oil Corporation (Aa2 stable) also recorded a sizeable impairment loss in 2015, its strategic importance will likely remain largely intact, given its continued ownership of major oil and gas exploration and production assets, and an oil stockpiling business. Uncertainty over the future ownership structures of Korea Electric Power Corporation's (KEPCO, Aa2 stable) six power-generating companies (gencos) -- all rated Aa2 with stable outlooks -- clouds their credit profiles in the medium to long term. The six gencos are Korea Hydro and Nuclear Power Company Limited, Korea South-East Power Co., Ltd., Korea East-West Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd. and Korea Southern Power Co., Ltd. The potential listing of the gencos also raises the possibility of further government reform that could lead to changes in their relationships with their parent. On the other hand, over the next 1-2 years, KEPCO will likely maintain controlling stakes in the subsidiaries, given that only 20%-30% stakes will be offered in the planned listings. We believe that the regulated power and gas utility companies -- KEPCO, Korea Gas Corporation (Kogas, Aa2 stable) and Korea District Heating Corporation (KDHC, A1 stable) -- will be able to cope with proposed reforms. The planned progressive opening up of KEPCO's retail electricity sales and Kogas' natural gas import for wholesaling to private companies, and KDHC's issuance of new shares to private investors are unlikely to reduce their strategic importance, or the likelihood of the government's extraordinary support. However, their credit profiles will likely be under pressure, if the government further dilutes the policy roles of the three utilities and/or its stake in KDHC in the future.


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Three more UK Property Funds Freezes Selling





Three more UK fund managers restricted investors from abandoning their UK property funds, entrapping additional 5.5 billion British pounds and now with six total property funds halting withdrawal requests post-Brexit. More than half of the 25 billion pounds of investment poured by retail investors towards commercial property are now detained by their fund managers, which are collapsing under pressure to sell off infrastructures to obtain cash. Henderson Global Investors, Columbia Threadneedle and Canada Life suspended redemptions on Wednesday amid 'panic' withdrawals. The succeeding announcements of fund 'gatings' that started on Monday have rattled the bigger markets and has raised concerns from the Bank of England that warned on Tuesday that the series of events could magnify any slump in the commercial real estate industry.


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Japan Overall Bank Lending Rises 2.0% In June





Overall bank lending in Japan was up 2.0 percent on year in June, the Bank of Japan said on Friday - coming in at 497.518 trillion yen.


That was beneath expectations for 2.2 percent, which would have been unchanged from the May reading.


Excluding trusts, bank lending also added an annual 2.0 percent to 432.514 trillion yen. That also missed forecasts for 2.2 percent, which would have been unchanged.


Lending from trusts climbed 2.3 percent to 65.003 trillion yen after rising 2.2 percent a month earlier.


For the second quarter of 2016, overall lending and lending excluding trusts both advanced an annual 2.1 percent.


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Oil Prices Recover from Two-Month Lows





Oil prices rose from two-month lows in the prior session on Friday, when prices plunged 5% on information that the U.S. weekly draw was below the forecast.


Brent crude futures traded at $46.88 per barrel, rising 48 cents or 1.03% from their last settlement while U.S. crude rose to $45.51 a barrel by 0.82% or 37 cents. The Energy Information Administration reported that U.S. commercial crude stocks climbed down by 2.22m barrels to 524.35 million barrels, a lower withdrawal rate than what was expected by most traders.


The Brent is expected to average at $51 per barrel and $52 per barrel in the third quarter and fourth quarter of this year respectively by the Global Risk Management.


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Fxwirepro: Singapore Dollar Erases Previous Gain Against US Dollar, Bias Turns Bullish





USD/SGD is currently trading around 1.3460 marks.
It made intraday high at 1.3580 and low at 1.3432 levels.
Intraday bias remains bullish till the time pair holds key support at 1.3432 marks.
A daily close below 1.3432 will drag the parity down towards key supports at 1.3357 (April 20, 2016 low)/1.3318/1.3302/ 1.3271 levels.
Alternatively, a sustained close above 1.3538 will tests key resistances at 1.3646, 1.3799, 1.3836, 1.3851(March 16, 2016 high), 1.4073 (20D EMA) and 1.4132(20D, 30D and 55D EMA crossover).
Important to note here that, 20D, 30D and 55D EMA heads down and confirm the bearish trend. Current downside movement is short term trend correction only.


We prefer to take long position in USD/SGD around 1.3450, stop loss 1.3410 and target 1.3502/ 1.3538 marks.


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Nikkei surges to 3.6 percent





Following the rise of U.S. stocks, Japan's Nikkei share average surged to more than 3 percent and by mid-morning the currency topped to 3.6 percent. In wake of the landslide victory of the coalition, Prime Minister Shinzo Abe's win has produced market confidence and has also directed a message to foreign investors that his policies are a sign for future growth.


Everyone in the Topix was in a bullish mood. Continuing last week's profit, Nintendo Co increased more than 20 percent with optimism that their new Pokemon GO smartphone will produce better outcome. Panasonic Corp surged by 6.6 percent and anticipates its lithium-ion batteries from Tesla Motors Inc to boost annual sales in the following years. The demand for exports produced a 3.7 percent rise for Toyota Motor Co and 3.8 percent for Tokyo Electron Ltd. JPX-Nikkei Index 400 increased to 3.4 percent with 11,245.46


News are provided byInstaForex.