Thread: Forex News from InstaForex

Dollar Tumbles on Trump’s Political Uncertainty





The dollar pared gains from the post election rally that drove the currency to its highest level since 2002, in an indication that investors are losing more faith in the so-called Trump trade. The ICE U.S. dollar index, which tracks the dollar versus a basket of six peers, dropped 0.8 percent in late Wednesday in New York to 97.39. The greenback fell versus the Japanese yen, euro and the British pound. Just days ahead of the election of President Donald Trump, the dollar surged in a wide market rally.


Several investors fear that political turmoil in Washington is wearing away the U.S. administration's ability to deliver on its tax-overhaul and fiscal-spending proposals. Such plans were highly anticipated to stimulate U.S. economic growth and also helped sent the greenback to a 14-year peak following the election.


Hedge funds and other investors have pulled back wagers on a firmer dollar, which has fallen to its weakest level since early October.


The dollar dropped two percent against the perceived safe-haven yen. It is the largest daily percentage fall since July 2016. Other assets seen as safe, which includes the Swiss franc and gold, have all gained.


Markets are implying a 65 percent likelihood that the Federal Reserve will hike interest rates at its next meeting in June, CME Group data revealed.


News are provided byInstaForex.

Fxwirepro: Eur/krw Remains Well supported Above 1,251 Mark, sustained Close Above Targets 1,287 Mark





EUR/KRW is currently trading around 1,252 mark.


Pair made intraday high at 1,252 and low at 1,251 levels.


Intraday bias remains neutral till the time pair holds key support at 1,251 mark.


A daily close below 1,251 will drag the parity down towards key supports around 1,234, 1,225, 1,218, 1,207, 1,200, 1,194, 1,189, 1,178, 1,163 and 1,154 marks respectively.


Alternatively, a sustained close above 1,251 will take the parity higher towards key resistances around 1,260, 1,274, 1,287 and 1,304 marks respectively.


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


Seoul shares open up 0.08 pct at 2292.90. We prefer to take long position in EUR/KRW around 1,251, stop loss at 1,240 and target of 1,260/1,287.


News are provided byInstaForex.

Wall Street Gains, Rebounds from Largest Sell-Off in the Year





EUR/KRW is currently trading around 1,252 mark.


U.S. equities advanced, recovering from their worst day of the year, with investors pricing in President Donald Trump's chances of proceeding with his pro-growth agenda.


Investors remain focused on Washington following reports that Trump attempted to interfere with a probe into former National Security Adviser Michael Flynn's relations with Russia.


The Dow Jones industrial average climbed 0.27 percent to 20,663.02, as Wal-Mart led gains and Cisco lagged behind. The S&P 500 rose 0.37 percent to close at 2,365.72, with telecommunications leading nine sectors up while energy led losses. The Nasdaq composite was up 0.73 percent at 6,055.13.


The Telecommunications Services sector was the S&P's largest percentage advancer with a 1.2 percent gain. U.S. telecom regulators voted to proceed with a Republican plan to reverse a 2015 “net neutrality” order. The S&P 500's technology sector rebounded 0.6 percent.


Among shares active on corporate news, Cisco Systems dropped 7.2 percent after the firm issued weak guidance. Shares of Wal-Mart climbed 3.2 percent at $77.54 after its quarterly earnings exceeded analysts' forecasts.


News are provided byInstaForex.

Fxwirepro: South Korean Won Marginally Higher Despite Lower Than expected Ppi Growth Data





EUR/KRW is currently trading around 1,249 mark.


Pair made intraday high at 1,251 and low at 1,248 levels.


Intraday bias remains neutral till the time pair holds key support at 1,250 mark.


A daily close below 1,250 will drag the parity down towards key supports around 1,242, 1,234, 1,225, 1,218, 1,207, 1,200, 1,194, 1,189, 1,178, 1,163 and 1,154 marks respectively.


Alternatively, a sustained close above 1,250 will take the parity higher towards key resistances around 1,260, 1,274, 1,287 and 1,304 marks respectively.


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


Seoul shares open up 0.53 pct at 2300.68.


South Korea’s April PPI growth m/m decrease to -0.1 % vs previous 0.0 % (revised from -0.1 %).


South Korea’s April PPI growth y/y decrease to 4 % vs previous 4.3 % (revised from 4.2 %).


We prefer to take short position in EUR/KRW only below 1,247, stop loss at 1,260 and target of 1,240/1,234.


News are provided byInstaForex.

Subaru Plans to Spend $1.2 Billion on R&D, Considers Electric Vehicles





Subaru Corp. is weighing on electric versions of its current models for the company's first venture into technology, as it looks into battery-powered vehicles in the face of tightening emissions rules. The Japanese automaker is planning to make record investments in research and development during this financial year. It is considering installing electric powertrains in existing models instead of producing an all-new vehicle, according to Chief Executive Officer Yasuyuki Yoshinaga.


The decision will provide Subaru the advantage of capitalizing on its reputation for safety while also removing the need to team up with another automaker, Yoshinaga said.


Subaru aims to spend more on electrification than other technologies as it quickly moves into plug-in a hybrid model to market in 2018 and an all-electric vehicle by 2021. The Japanese company is budgeting 134 billion yen ($1.2 billion) on research and development in the 12 months through March 2018.


Other big Japanese automakers have also stepped up efforts to produce electric vehicles. Toyota Motor Corp. is planning to spend 1.05 trillion yen on R&D while Honda Motor Co. is aiming to invest 750 billion yen.


News are provided byInstaForex.

Euro Area Manufacturing Pmi Index Likely to have dropped Slightly in May





Manufacturing industry globally has been rebounding from quite a subdued performance recorded in the last few years. The markets would be able to measure if the recent improvement in the manufacturing continues to be in place after the flash manufacturing PMIs are released for the euro area and Germany.


In April, the euro area manufacturing PMI was at a high of 56.7 in April. According to consensus expectations, the manufacturing PMI is expected to have dropped slightly to 56.5 in May. The manufacturing PMI has been gradually improving in the euro area since August 2016. In the meantime, the German manufacturing PMI is expected to have come down a bit to 58 in May from April’s reading of 58.2. If the projections are correct, it would be the second straight drop in the index in 2017.


News are provided byInstaForex.

Gold Holds on to Gains, Supported by US Political Concerns





Gold prices were steady on Tuesday in spite of the explosion at a concert in the English city of Manchester which killed nearly 19 people in what British police said was being treated as a terrorist incident.


The precious metal has been lifted as the dollar fell versus the euro amid political uncertainty in the United States due to the controversies surrounding President Donald Trump.


Spot gold rose 0.1 percent at $1,261.62 an ounce. U.S. gold futures were little changed at $1,261 per ounce. Spot gold gained 2.2 percent the previous week as the uproar on Trump's alleged links to Russia and his dismissal of former Federal Bureau of Investigation chief James Comey have raised doubts on his ability to push through pledged fiscal stimulus.


Holdings in SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, climbed 0.21 percent to 852.48 tonnes.


Investors' net long position in COMEX gold has dropped to a two month-low, according to data from the U.S. Commodity Futures Trading Commission (CFTC).


News are provided byInstaForex.

New Zealand Has NZ$578 Million Trade Surplus





New Zealand saw a merchandise trade surplus of NZ$578 million in April, Statistics New Zealand said on Wednesday.


That beat forecasts for a surplus of NZ$267 million following the NZ$332 million surplus in March.


Exports climbed 9.8 percent on year to NZ$4.75 billion - also exceeding expectations for NZ$4.40 billion and up from NZ$4.65 billion in the previous month.


Imports gained an annual 4.9 percent to NZ$4.17 billion versus forecasts for NZ$4.10 billion and down from NZ$4.31 billion a month earlier.


News are provided byInstaForex.

U.S. Stocks Climb after Release of Trump Budget





Wall Street advanced on Tuesday as hopes surrounding the Trump trade was revived among investors. However, gains were pared by losses in consumer discretionary stocks amid weakness in auto-parts firms. Trump's budget called for an increase in infrastructure and military spending, as well as politically sensitive reductions in areas like healthcare and food assistance. Investors also eyed the White House's proposed budget for 2018. Stated in it, the White House aims to trim federal spending by $3.6 trillion in the next ten years.


The Dow Jones industrial average climbed 0.21 percent to 20,937.91, as Goldman Sachs outperformed while Home Depot lagged behind.


The S&P 500 added 0.18 percent to close at 2,398.42, with financials leading ten sectors up while consumer discretionary was the only decliner. The Nasdaq Composite rose 0.08 percent to 6,138.71.


Financials gained 0.8 percent supported by a 1.2 percent advance in the bank subsector. Consumer discretionary lagged behind the most with a 0.4 percent decline.


Autozone Inc weighed on the consumer sector the most, dropping 11.8 percent to $58.14. The auto part retailer's quarterly results did not meet expectations. Advance Auto Parts slipped 4.6 percent and O'Reilly Automotive was down 3.3 percent while Genuine Parts dropped nearly two percent.


News are provided byInstaForex.

HP Inc. Lifts Profit Guidance as PC, Printer Units Outperform





HP Inc.'s sales strongly performed in the second quarter, posting growth in both PC and printer units for the first time in over five years.


The company also reported better-than-anticipated revenue on stronger consumer demand, prompting it to lift its annual profit projection. Shares of the firm climbed 3.6 percent to $19.7 in extended trading.


Revenue from the personal computer business surged 9.6 percent to $7.66 billion in the period ending April 30. The unit represents almost two-third of the firm's overall sales. The firm's printer and copier division also posted its first increase in revenue since 2011, driven partially by the strong demand for its handheld photo printer, HP Sprocket.


Total revenue jumped 6.9 percent to $12.4 billion during the second quarter, as strong consumer demand caused a 12 percent jump in laptop deliveries. Earnings before adjustments registered at 40 cents per share, marginally higher than the expected 39 cents per share.


The firm also lifted its projection for third-quarter profit that beat estimates and also raised its outlook for the entire fiscal year. Full-year adjusted profit is seen to clock in between a range of $1.59-$1.66 per share, exceeding average estimates of $1.62 per share.


News are provided byInstaForex.