Thread: Forex News from InstaForex

Wall Street Slips, Weighed Down by Goldman Sachs, J&J





U.S. equities retreated as the S&P 500 dropped for the fourth time in five sessions, pulled down by declines in Goldman Sachs and Johnson & Johnson after their quarterly results. Investors remained cautious due to lingering geopolitical tensions and ahead of the French presidential election.


The Dow Jones industrial average slipped 0.55 percent at 20,523.28, as Goldman Sachs led losses while Coca-Cola outperformed. The S&P 500 fell 0.29 percent at 2,342.19, with health care leading six sectors down while consumer staples being the top gainer. The Nasdaq Composite dropped 0.12 percent at 5,849.47.


Goldman Sachs posted lower-than-expected-first-quarter results across the board, with trading revenue falling short of analysts expectations. Johnson & Johnson also posted mixed quarterly results that sent its shares falling over three percent.


Netflix reported better-than-expected earnings, however, its guidance missed estimates. Bank of America recorded upbeat first-quarter results with nearly every single metric meeting or exceeding analysts expectations.


Healthcare dropped one percent while financials lost 0.8 percent, and were the two worst-performing of the 11 major S&P sectors. Shares of Cardinal Health tumbled 11.5 percent, which also added pressure on healthcare following a weak profit forecast that outweighed a deal to purchase a medical supplies business from Medtronic for $6.1 billion.


News are provided byInstaForex.

Fxwirepro: Thai Baht Marginally Higher in Early Hours of Asia, Faces Strong Support at 34.24





USD/THB is currently trading around 34.30 marks.


It made intraday high at 34.35 and low at 34.30 marks.


Intraday bias remains bearish till the time pair holds key resistance at 34.45 mark.


On the top side, key resistances are seen at 34.45, 34.56, 34.67, 34.85, 34.97, 35.11, 35.20, 35.32, 35.42, 35.62, 35.74, 35.84, 35.93, 36.01, 36.08 and 36.39 marks respectively.


Alternatively, a daily close below 34.35 will drag the parity down towards key supports around 34.24 and 34.01 marks respectively.


Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.


We prefer to take short position in USD/THB only below 34.24, stop loss at 34.44 and target of 34.01.


News are provided byInstaForex.

New Zealand’s Consumer Price Inflation Accelerates Above Expectations in Q1 2017





New Zealand’s consumer price index rose 2.2 percent year-on-year in the first quarter of this year, showed Statistics New Zealand. This is the highest annual rise since the first quarter of September 2011. It is above market expectations of 2 percent. Statistics New Zealand senior manager Jason Attewell stated that increasing prices of petrol along with the annual increase in tax of cigarette and tobacco lifted inflation.


Prices related to housing continued to rise in the quarter, rising 3.3 percent year-on-year. Meanwhile, transport prices were up 3.5 percent, the second largest contribution to the inflation, with petrol partly countered by declines in other private transport services. Stripping out cigarettes, petrol and tobacco, the consumer price index rose 1.5 percent year-on-year in the March quarter.


On a quarter-on-quarter basis, the consumer price index was up 1 percent in the first quarter after a 0.4 percent rise in the fourth quarter of 2016. This is above the market expectations of a rise of 0.8 percent. Adjusting for seasonal effects, consumer price inflation rose 1 percent.


“Higher prices for cigarettes and tobacco, petrol, and fruit were partly offset by lower prices for international air transport, and package holidays,” added Attewell.


Prices for tobacco and cigarette upwardly contributed the most to inflation on a quarter-on-quarter basis, noted Statistics New Zealand.


News are provided byInstaForex.

U.S. Stocks Mostly Lower as IBM, Oil Prices Weigh





Wall Street finished mostly lower, with IBM and oil prices weighing on the Dow Jones industrial average. Investors priced in the newest round of earnings and are also focused on France, with the country's presidential election drawing close.


The Dow Jones industrial average dropped 0.58 percent at 20,404.49, as IBM led losses while Merck outperformed. The S&P 500 slipped 0.17 percent at 2,338.17, with energy leading seven sectors down and healthcare being the top gainer. The Nasdaq composite added 0.23 percent at 5,863.03.


IBM plunged 4.9 percent to $161.69 following its larger-than-expected decline in revenue for the first time in five quarters. The energy sector tumbled 1.4 percent for its fifth slip in six sessions with oil prices settling almost four percent down.


Financials traded higher earlier in the session after Morgan Stanley reported a strong first-quarter as its fixed-income trading revenue doubled year over year. The lender's results climbed to the top of Wall Street expectations, in contrast to Goldman Sachs that surprised investors with weak earnings and revenue. Shares of Morgan Stanley climbed two percent.


Intuitive Surgical jumped 6.4 percent at $807.94 to help raise the Nasdaq after the firm posted higher-than-expected first-quarter revenue and profit. The stock is on course for its best day in almost two years.


News are provided byInstaForex.

Creditors' Experts to Finalize Greece Accord Next Week: Official





Experts representing global lenders will return to Greece to work out the provisions of an agreement for the country next week, according to an EU official.


Greece and its creditors agreed on April 7 on major aspects of reforms to secure new financing and concurred these experts would return to the nation the soonest possible time to finalize the deal.


However, Europe's official on economics Pierre Moscovici said technical reasons caused the delay. He added they would discussion the completion of the said pact in Washington, on the sidelines of the yearly IMF gathering.


The Greek government's spokesperson had mentioned the institution may fund the nation's bailout scheme with a minimal amount for around one year, although the matter was still being discussed between the country and its lenders.


News are provided byInstaForex.

Fxwirepro: Eur/krw Rejects Key Resistance at 1,224 Mark, Consistent Close Below 1,217 Targets 1,201 Mark





EUR/KRW is currently trading around 1,220 mark.


Pair made intraday high at 1,220 and low at 1,216 levels. Intraday bias remains neutral till the time pair holds key support at 1,217 mark.


A daily close below 1,217 will drag the parity down towards key supports around 1,208, 1,200, 1,194, 1,189, 1,178, 1,163 and 1,154 marks respectively.


Alternatively, a sustained close above 1,217 will take the parity higher towards key resistances around 1,224, 1,228, 1,233, 1,242 and 1,252marks respectively.


Seoul shares open up 0.56 pct at 2161.24.


Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.


We prefer to take short position in EUR/KRW only below 1,217, stop loss at 1,224 and target of 1,201.


News are provided byInstaForex.

Canadian Retail Sales Likely to have dropped Sequentially in February, says Td Economics





The Canadian retail sales is likely to have eased in February, following a growth in January. According to a TD Economics research report, total retail sales are expected to have fallen 0.4 percent sequentially, whereas excluding auto it is likely to have dropped 0.5 percent month-on-month. Subdued prices for gasoline might be a considerable headwind for nominal consumer spending, whereas a wider drop in seasonally adjusted consumer prices might result in a moderate outperformance in volumes. In January, retail sales had expanded 2.2 percent sequentially, whereas ex-auto sales had risen 1.7 percent.


In spite of the 3.8 percent rise in motor vehicle sales last month, a pullback is unlikely. Meanwhile, industry reports indicate towards a moderate growth that might lead to a new monthly record. A surge in home sales might stimulate demand for furnishings and furniture. Outside these industries, a more disappointing performance is expected, but might downplay any adverse implications for the Canadian central bank amid increased worries regarding imbalances and a desire to witness a more balanced growth profile, noted TD Economics.


Moreover, the Bank of Canada is not expected to be greatly concerned with a moderate slowdown in February because of the real retail sales strength last month, which might be a mainstay for the quarter, added TD Economics.


News are provided byInstaForex.

French Election: Euro Cheers French Election Outcome, Yen Hammered





The single currency is up almost 1.5 percent as the centrist, pro-European Union candidate Emmanuel Macron is set to win the first round of French Election, initial results show. The euro is currently trading at 1.087 against the dollar and at one point the single currency was trading at as high as 1.094 against the dollar.


According to latest numbers, Emmanuel Macron is leading with 23.7 percent of the votes, followed by Front National leader Marine le Pen, who is set to receive 21.7 percent of the votes. The other two top candidates, Republican François Fillon and the leftist leader Jean-Luc Mélenchon are set to receive 20 percent and 19.5 percent of the votes respectively. Since no candidate received 50 percent of the votes required to become the next President, the top two candidates will face each other in the second round of the election, to be held on May 7th.


A lightning Ipsos poll of second round voting intentions shows Macron beating Marine Le Pen in the second round by 24 percent margin. However, the outcome would depend a lot on undecided voters and abstention.


As the political tensions ease with a first round victory for Macron, the safe haven currency yen took a beating. The yen is trading more than a percent down at 110 per dollar. At one point, it was down to as low as 110.6 per dollar.


News are provided byInstaForex.

Macron, Le Pen Hails Victory on First Round of French Presidential Election





Centrist Emmanuel Macron and far-right nationalist Marine Le Pen came out victorious during the first round of the French presidential election, sparking a runoff on May 7 between two radically distinct perspectives of the country's future.


Macron is on track to gain 23.8 percent in Sunday's election, and National Front Leader Le Pen with 21.7 percent, as stated in the predictions from the Interior Ministry based on over 90 percent of votes counted. The turnout signifies that for the first time in modern French political history, both establishment parties were eliminated in the first round.


Republican Francois Fillon conceded after placing third with a forecasted 20 percent, Communist-supported Jean-Luc Melenchon had 19.4 percent, and Socialist Benoit Hamon followed in fifth place with only 6.3 percent.


The rejection of the two main parties indicates the displeasure flowing through a society that has to deal with Islamic terrorism and years of subpar economic growth and high unemployment. The next two weeks will examine the appeal of both candidates' stand on the economy, Europe and security.


News are provided byInstaForex.

Moody's: the Upcoming Adoption of Ifrs 17 in Korea Will Pressure Capitalization, But Promote Structural Improvements





Moody's Investors Service says that International Financial Reporting Standard (IFRS) 17 -- when implemented in Korea -- will challenge the reported capitalization of life insurers, by requiring them to measure their policy liabilities at current interest rate values and therefore provide higher levels of reserves.


"Nevertheless, beyond the pressure on insurers' capitalization profiles, the new standard will, over time, promote structural improvements and value creation in the industry," says Stella Ng, a Moody's Assistant Vice President and Analyst. Specifically, IFRS 17 will improve insurers' pricing discipline and product mix by better reflecting the true economic cost of embedded options and guarantees in their products.


"It will also encourage insurers to sell more longer-term protection products instead of volume-driven, short-term savings products," adds Ng. "We note that the industry has been increasing its higher-margin protection policy sales, including long-term healthcare and critical illness products, and we expect that this trend will continue even after IFRS 17 is implemented".


Moody's analysis is contained in its just-released report titled "Life Insurance - Korea: IFRS 17 Will Reduce Reported Capitalization, But Drive Structural Improvements" and is authored by Ng.


Moody's report points out that under IFRS 17, the banning of netting between policy surplus and deficits, and the use of market-consistent discount rates -- which will likely be lower than the average discount rates currently used by Korean life insurers -- to arrive at best estimate liability (BEL), will result in broadly lower reported capitalization.


Also, the impact will be more significant for insurers that have a large book of negative spread in-force business. As a result, insurers will be under pressure to strengthen their capitalization, with many likely to do so through hybrid bond issuance.


Moody's also says that IFRS 17 will provide a strong incentive for insurers to reduce their duration mismatches.


Because the new accounting standard requires closer monitoring and matching of economic assets and liabilities, Moody's expects that IFRS 17 will push the industry towards more dynamic asset-liability management and investment strategies to minimize duration mismatches and the associated interest-rate risk exposure. This situation will lower the potential sensitivity of insurers' solvency and earnings to financial market shocks.


As for small insurers, they will face greater operational challenges because the more explicit recognition and disclosure of the contractual service margin and risk margin under IFRS 17 will expose their relatively weak earnings quality, given that they rely heavily on spread income.


Smaller insurers will therefore face more difficulty in adapting to IFRS 17, and in addition they will need to devote substantial resources and incur adjustment costs to meet the more stringent measurement and disclosure standards.


Moody's explains that Korean life insurers are preparing for IFRS 17 that is scheduled to be finalized by the International Accounting Standards Board in May 2017, and which will come into effect in Korea on 1 January 2021. The Financial Services Commission and the Financial Supervisory Service in Korea have announced that they will issue guidelines to insurance companies after the finalized standards of IFRS 17 are released.


News are provided byInstaForex.