The euro rose against the dollar as market participants expect the outcome of today's meeting of the Federal Open Market Committee Federal Reserve. Likely to change monetary policy at this meeting virtually eliminated. Likely to be announced plans for the conservation of bond purchases at the current level.
Note also that the impact on the dynamics of trade data, which showed that manufacturing activity in the U.S. in April slowed, thereby exceeded the estimates of economists. According to the report, the purchasing managers' index for the manufacturing sector in April fell to 50.7 against 51.3 in March. Recall that the index values above 50 indicate an increase in activity in the sector. We also note that, according to the average forecast value of this indicator was reduced to the level of 51.0. All indexes in the ISM report showed mixed trends, but overall showed an increase in activity. The new orders index rose in April to 52.3 against 51.4 in March, having fallen sharply compared to 57.8 in February. Export index fell to 54.0 from 56.0. The production index rebounded in April to 53.5 from 52.2. The employment index slowed to 50.2 from 54.2. The index of inventories remained in negative territory for the second month in a row and fell to 46.5 from 49.5. ISM report shows a weakening of price pressure on manufacturers in April. Prices paid index fell to 50.0 from 54.5 in March, jumped to 61.5 in February.
The Australian dollar fell against most of its 16 most-traded currencies, after the Chinese government report showed that the outcome of last month's manufacturing activity expanded, but at a slower rate, and an increase in new orders and production declined, increasing the likelihood that recovery in the second largest economy in the world, still remains unstable. According to the report, the purchasing managers' index, which measures activity in the manufacturing sector fell last month to a level of 50.6, up from 50.9 in March. We add that, according to the average forecast of economists, the value of this index was down to 50.8. Recall that the index value above 50 indicates expansion of the sector. It should be noted that PMI is in growth area for seven months. In addition, it was reported that the growth of new orders was moderate, against which the relevant index fell to 51.7 from 52.3 in March. Note also that the production index fell to 52.6 from 52.7 in the previous month.
The pound rose to a 11-week high against the dollar, as it became known, that the situation in the UK manufacturing sector improved in April, buoyed by an increase in export orders and levels of production. The data showed that the index of purchasing managers in the manufacturing sector in the UK April rose to 49.8 from a revised figure for March at 48.6. Recall that the index value below 50 indicates contraction activity. Note that economists had expected growth of the April index to 48.6, compared with the March index at 48.3, which was reported initially. Economists said that the main incentive steel export orders, which rose for the first time in over a year and the fastest pace since July 2011.
The price of oil fell more than 3%, dropping below $ 100, as concerns over the economic growth in China and the United States and the build-up of oil in the United States has weakened demand prospects. Note that by the end of April, oil prices fell by 7%, showing the biggest monthly drop in 11 months, against the background of the fact that many indicators suggest that the global economy remains in a fragile state.
Note that the dynamics of today's trades affected the data that was presented the Energy Information Administration. As it became known, last week, U.S. crude inventories rose 6.7 million barrels to 395.280 million barrels level, which is the highest value ever recorded. Note that according to the average forecasts of experts, the reserves were to increase by 1 million barrels. The submitted report also showed that U.S. gasoline inventories fell by 1,818 million barrels to 215.984 million barrels, distillate stocks in the U.S. rose by 0.474 million barrels to 115.752 million barrels, while stocks of oil in Cushing terminal fell to 1.382 million barrels 49801000 barrels. The Department of Energy also reported that refinery utilization in the U.S. 84.4% compared to 83.5% the previous week.
Also affected by the oil price data for China. According to the report, the purchasing managers' index, which measures activity in the manufacturing sector fell last month to a level of 50.6, up from 50.9 in March. We add that, according to the average forecast of economists, the value of this index was down to 50.8. Recall that the index value above 50 indicates expansion of the sector. It should be noted that PMI is in growth area for seven months.
We add that the survey of industry participants and analysts showed that by the end of last month, the volume of oil production in the Organization of Petroleum Exporting Countries (OPEC) has grown significantly, reaching thus the highest level since November of last year. However, it is still significantly below the level of 31 million barrels per day reached in late last year. As it became known that the cartel's oil output in April to an average of 30.466 million barrels a day, or about 240,000 barrels a day more than the 30.226 million barrels a day in March. This is the highest after the end of last year, Saudi Arabia lowered its production by almost 5% in response to a decrease in demand from Asian buyers. Note that the increase in OPEC production in April was largely the result of increased oil production in Iraq, Libya, the United Arab Emirates and Iran. Meanwhile, it was revealed Iran's oil production has also increased. Recall that last week, the U.S. Energy Department announced that sanctions have led to a decrease in the export of oil from the Islamic republic to its lowest level since 1986.
The cost of the June futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 90.20 dollars per barrel.
June futures price for North Sea Brent crude oil mixture fell $ 2.81 to $ 98.84 a barrel on the London exchange ICE Futures Europe.
Gold prices fell, as the holidays in China and some European countries the volume of purchases has slowed. Meanwhile, we note that many investors are waiting for the Federal Reserve System of the USA, which is expected to maintain its economic stimulus programs. Economists predict that the Fed will keep the amount of bond buying program at the level of $ 85 billion a month due to the recent weak economic data. Also on the dynamics of trade influences that tomorrow its decision on the basic interest rate of the European Central Bank will announce.
Many experts believe that the ECB will lower interest rates by 0.25% to 0.5%.
It is equally important event, which is expected, many market participants, will be the publication of the report on the number of people employed in non-agricultural sectors of the economy, which will be presented on Friday.
Note that the data released today showed that the stocks in the SPDR Gold Trust - the largest gold exchange-traded fund in the world, fell yesterday by 0.19% to 1,078.54, while reaching the lowest level since September 2009.
Note also, gold could recover more than half of the losses incurred between April 12 and 16, which was caused by strong physical demand, especially by consumers in China and India.
The cost of the June gold futures on COMEX today dropped to 1444.60 dollars an ounce.
Components |
April |
March |
Change |
New Orders |
52.3 |
51.4 |
+0.9 |
Production |
53.5 |
52.2 |
+1.3 |
Employment |
50.2 |
54.2 |
-4.0 |
Supplier Deliveries |
50.9 |
49.4 |
+1.5 |
Inventories |
46.5 |
49.5 |
-3.0 |
Customers' Inventories |
44.5 |
47.5 |
-3.0 |
Prices |
50.0 |
54.5 |
-4.5 |
Backlog of Orders |
53.0 |
51.0 |
+2.0 |
Exports |
54.0 |
56.0 |
-2.0 |
Imports |
55.0 |
54.0 |
+1.0 |
EUR/USD
$1.3100, $1.3150
USD/JPY Y97.00, Y98.00, Y98.20, Y98.50, Y99.00
EUR/GBP stg0.8425, stg0.8475
AUD/USD $1.0300, $1.0325, $1.0350, $1.0410
U.S.
stock are mixed as investors awaited a statement from the Federal
Reserve and a report on manufacturing.
Global Stocks:
Nikkei 13,799.35 -61.51 -0.44%
FTSE 6,462.91 +32.79 +0.51%
Crude oil $91.34
-2.27%
Gold $1457.70 -0.98%
Next minor resistance seen at $1.3250, more strong - $1.3280.
EUR/USD
Offers $1.3340/50, $1.3315/20, $1.3290/300, $1.3250/60, $1.3225/30
Bids $1.3130/20, $1.3105/00, $1.30085/80, $1.3055/50, $1.3030/10
GBP/USD
Offers $1.5690/700, $1.5670/75, $1.5650, $1.5630, $1.5600/10
Bids $1.5500, $1.5475/65, $1.5450, $1.5430/20
AUD/USD
Offers $1.0500, $1.0475/80, $1.0450, $1.0420, $1.0395/00
Bids $1.0310/00, $1.0265/60, $1.0250
USD/JPY
Offers Y98.45/50, Y98.30, Y98.10/15, Y97.95/00, Y97.80
Bids Y97.25/20, Y96.80, Y96.60/50
EUR/JPY
Offers Y130.00, Y129.80, Y129.50, Y129.00
Bids Y128.30/25, Y128.00, Y127.80, Y127.60/50
EUR/GBP
Offers stg0.8580/85, stg0.8530/35, stg0.8500/10, stg0.8485
Bids stg0.8460-40, stg0.8425/20
EUR/USD
$1.3100, $1.3150
USD/JPY Y97.00, Y98.00, Y98.20, Y98.50, Y99.00
EUR/GBP stg0.8425, stg0.8475
AUD/USD $1.0300, $1.0325, $1.0350, $1.0410
Asian stocks declined from the highest
level since June 2008, led lower by Japanese shares as data
signaled a slowdown in global manufacturing. U.K. equities rose,
while oil and industrial metals dropped. Australian and Chinese
reports today signaled a slowdown in manufacturing before a U.K.
Purchasing Managers' Index forecast to show a third month of
contraction. Markets in the U.K., Denmark and Ireland are open
today while most others in Europe and Asia are closed for
holidays.
Nikkei 225 13,799.35 -61.51 -0.44%
Hang Seng Closed
S&P/ASX 200 5,166.18 -25.04 -0.48%
Shanghai Composite Closed
Tokyo Electric Power Co., operator of the stricken Fukushima nuclear power plant, slid 3 percent after reporting a loss six times bigger than its forecast.
Astellas Pharma Inc. slid 1.2 percent after U.S. regulators said its cancer drug produced with Aveo Pharmaceuticals Inc. may need another clinical trial.
Canon Inc., the world's biggest camera maker, declined 1.6 percent.
ASX Ltd. rose 0.4 percent to its highest closing level in two years after the operator of Australia's main stock exchange reported a 9.5 percent increase in third-quarter sales.
00:00 France Bank
holiday
00:00 Germany Bank holiday
00:00 Switzerland Bank holiday
01:00 Australia HIA New Home Sales, m/m March -5.3% +4.2%
01:00 China Manufacturing PMI April 50.9 50.8 50.6
01:30 Japan Labor Cash Earnings, YoY March -0.7% -1.0% -0.6%
03:25 Australia RBA Assist Gov Edey Speaks
The dollar fell versus the yen for a fifth day, the longest losing streak since September, on speculation the Federal Reserve won't slacken its bond-buying program to cap borrowing costs as the economy loses momentum. The Fed, which concludes a two-day meeting today, is buying $85 billion of bonds a month in the third round of its quantitative-easing strategy to put downward pressure on borrowing costs.
The greenback was 0.2 percent from a almost two-week low against the euro before a report today forecast to show U.S. private employers added the fewest jobs in six months. Private employment rose by 150,000 in April after gaining 158,000 the previous month, data from the Roseland, New Jersey- based ADP Research Institute will probably show, according to the median estimate of economists surveyed by Bloomberg News. U.S. payrolls increased by 148,000 workers after an 88,000 gain in March, a separate survey forecasts before a May 3 Labor Department report.
Australia's dollar fell for a second day versus Japan's currency as Chinese data showed manufacturing growth slowed in the South Pacific nation's largest trading partner. China's manufacturing purchasing managers index slipped to 50.6 in April from 50.9 the month before, according to a report from the National Bureau of Statistics and China Federation of Logistics and Purchasing. A reading above 50 indicates expansion.
EUR/USD: during the Asian session the pair traded in the range of $ 1.3155-80
GBP/USD: during the Asian session the pair traded in the range of $ 1.5525-45
USD/JPY: during the Asian session the pair fell to Y97.05.
The UK calendar gets underway at 0600GMT, with the release of the April Nationwide House Price Index. Analysts are looking for a modest uptick in prices, as the Spring boost and recent surveys both suggest increased strength in the market. At 0828GMT, the April CIPS/Markit Manufacturing PMI data will be released. At 1000GMT, BOE MPC member Ben Broadbent is set to give a speech In London. US employment data/components remain a key driver with this afternoon's ADP and PMI and ISM releases in focus ahead of tonight's FOMC and Friday's NFP. Thursday's ECB rate decision, with many forecasting a cut of
25bps, remains in the background.
Change % Change Last
GOLD 1,475.10 7.70 0.52%
OIL (WTI) 93.02 -1.48 -1.57%
Change % Change Last
Nikkei 225 13,860.86 -23.27 -0.17%
Hang Seng 22,737.01 +156.24 +0.69%
S&P/ASX 200 5,191.22 +65.41 +1.28%
Shanghai Composite Closed
FTSE 100 6,430.12 -27.90 -0.43%
CAC 40 3,856.75 -11.93 -0.31%
DAX 7,913.71 +40.21 +0.51%
Dow +16.9 14,835.65 +0.11%
Nasdaq +21.77 3,328.79 +0.66%
S&P +3.59 1,597.20 +0.23%
(pare/closed(00:00 GMT +02:00)/change,
%)
EUR/USD $1,3167 +0,57%
GBP/USD $1,5535 +0,28%
USD/CHF Chf0,9294 -0,83%
USD/JPY Y97,37 -0,47%
EUR/JPY Y128,21 +0,09%
GBP/JPY Y151,27 -0,19%
AUD/USD $1,0365 +0,20%
NZD/USD $0,8565 +0,12%
USD/CAD C$1,0071 -0,46%
00:00 France Bank holiday
00:00 Germany Bank holiday
00:00 Switzerland Bank holiday
01:00 Australia HIA New Home Sales, m/m March -5.3%
01:00 China Manufacturing PMI April 50.9 50.8
01:30 Japan Labor Cash Earnings, YoY March -0.7% -1.0%
03:25 Australia RBA Assist Gov Edey Speaks
06:00 United Kingdom Nationwide house price index April 0.0% +0.4%
06:00 United Kingdom Nationwide house price index, y/y April +0.8% +1.3%
06:30 Australia RBA Commodity prices, y/y April -7.5%
08:30 United Kingdom Purchasing Manager Index Manufacturing March 48.3 48.6
12:15 U.S. ADP Employment Report April 158 153
13:00 U.S. Manufacturing PMI (Finally) April 52.0 52.1
14:00 U.S. Construction Spending, m/m March +1.2% +0.7%
14:00 U.S. ISM Manufacturing April 51.3 51.1
14:30 U.S. Crude Oil Inventories April +0.9
18:00 United Kingdom MPC Member Dr Ben Broadbent Speaks
18:00 U.S. Fed Interest Rate Decision 0.25% 0.25%
18:00 U.S. FOMC Statement
20:00 United Kingdom BOE Deputy Governor Andrew Bailey Speaks
22:05 Canada BOC Gov Carney Speaks
23:50 Japan BoJ Monetary Policy Meeting April
23:50 Japan Monetary Base, y/y April +19.8%