Forex News from InstaForex

**InstaForex Gertrude** · 06-06-17, 02:52

New Zealand Building Volume Slides 3.5% In Q1

The total volume of building in New Zealand was down a seasonally adjusted 3.5 percent on quarter in the first three months of 2017, Statistics New Zealand said on Tuesday.

That misses forecasts for a gain of 0.3 percent following the downwardly revised 1.3 percent increase in the previous three months (originally 1.9 percent).

Residential building activity shed 0.8 percent on quarter, while non-residential building activity skidded 7.2 percent.

The value of building work on new homes was NZ$2.7 billion in Q1.

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**InstaForex Gertrude** · 06-06-17, 04:03

Treasury Yields Jumps Amid Mixed Economic Data

U.S. government bond yields rallied amid a string of data that did not help clarify U.S. economic prospects after a disappointing jobs report helped trim growth expectations.

The 10-year Treasury note yield advanced 2.2 basis points to 2.182 percent. Despite its rally, the benchmark yield's closing was still its lowest close this year. Yield on the two-year note rose 1.8 basis point to 1.308 percent, while the yield on the 30-year bond or the long bond advanced 3.1 basis point to 2.840 percent.

The movement in yields came after the ISM services index for May slid to 56.9 percent against the 57.5 percent seen in the previous month. However, April's reading marked a 12-year high and the index continued to be above the adjusted annual average of 55.9 percent.

Another report showed that U.S. productivity growth during the first quarter of the year was revised upward from 0.6 percent, indicating that economic data in Q1 was not as soft as initially reported.

In the last few weeks, muted economic data, underlined by a dismal May nonfarm payrolls report, has barely discouraged investors from betting a June rate hike. Traders are now wagering in a 95.8 percent odds of a rate increase during the Fed's next policy meeting, based on the Chicago Mercantile Exchange's FedWatch tool.

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**InstaForex Gertrude** · 07-06-17, 03:16

Australia Manufacturing Sector Picks Up Steam In May - AIG

The construction sector in Australia continued to expand in May, and at a faster rate, the latest survey from the Australian Industry Group revealed on Wednesday with a Performance of Construction Index score of 56.7.

That's up sharply from 51.9 in April, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction.

It also marks the fastest rate of expansion in more than two and a half years.

Individually, apartment building saw the biggest jump, although house building fell back into contraction.

Engineering construction and commercial construction were firmly in expansion territory.

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**InstaForex Gertrude** · 07-06-17, 04:01

Macy’s Warning Triggers Retail Sector Selloff

Macy's finance chief Karen Hoguet cautioned analysts that the department store's gross margin might continue to erode in February, triggering renewed panic in the already struggling retail sector.

Hoguet warned that gross margins of the retailer would decline by around 1 percent in its current quarter compared to the same period a year prior. She added that it will drop less than 1 percent for the full fiscal year.

In February, the firm said it expected margin declines but did not specify the level of the drop. It assured that it is not downgrading its sales and profit targets and looks to make up the difference via cost-cutting and efforts to enhance the performance of its stores.

The executive said margins are under pressure because Macy's is taking a longer time than expected to get rid of surplus inventory. She also noted that Macy's was experiencing the impact of increased promotions of beauty products and stagnant watch sales.

The comments caused Macy's shares to tumble 8.2 percent to trade at $21.90, the company's lowest close in over six years. The remarks also triggered a selloff in the sector, underlining the sector's fragility. Other retailers were dragged down by the dim guidance, as J.C. Penney Co., Kohl's Group, Nordstrom Inc., Target Corp. and Wal-Mart Stores Inc. all experienced declines during the session.

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**InstaForex Gertrude** · 09-06-17, 03:59

Uk Election: Odds are in Decline for Conservatives

After exit polls somewhat shocked the market and pointing to YouGov model prediction just weeks ago that forecasted a hung parliament weeks ago, betting odds are in decline, except for the odds for most seats.

The betting market is pricing 93 percent probability that the Conservative will win most of the seats in 650 members’ parliament.

The market is pricing less than 62 percent probability that Theresa may be the next Prime Minister. The odds for Jeremy Corbyn has moved higher from 20 percent to 33 percent.

The market is also pricing 66 percent probability that the Conservatives will be able to hold on to their majority in the election. The odds of a Labour Party majority is currently at less than 7 percent.

The odds of a hung parliament has moved up from less than 20 percent before the election to 33 percent as of now.

Foreign Secretary Boris Johnson is the favorite with 30 percent odds to become the next Conservative Party leader if Theresa May is replaced.

Results so far:
So far, the Labour Party has won 10 seats, while the Conservatives have secured wins in five. Still, a very long way to reach the magic figure (326).

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**InstaForex Gertrude** · 09-06-17, 04:27

Dow Touches Record High but Ends Flat After Comey Testimony

U.S. equities finished mostly higher on Thursday as Wall Street priced in former FBI Director James Comey's testimony. The “Trump trade” made a comeback but the S&P and Dow industrials eventually ended little changed.

The Dow Jones industrial average climbed 0.04 percent to finish at 21,182.53, as Caterpillar led gains while Walt Disney lagged behind. The S&P 500 added 0.03 percent to 2,433.79, with financials leading five sectors up and utilities was the largest decliner. The Nasdaq composite rose 0.39 percent to end at 6,321.76.

The Trump 'reflation trade' was back for the day with the S&P 500 financial sector gaining 1.1 percent.

The S&P 1500 construction and engineering index climbed 1.4 percent while the measure of construction materials stocks rose 1.5 percent. The S&P 1500 steel sector index advanced 4.1 percent, the most since April 20.

The announcement of Commerce Secretary Wilbur Ross that a national security review of the U.S. steel industry will be made to protect interests of domestic steel producers and consumers had bolstered infrastructure stocks.

Utilities stocks dropped the most on the S&P 500 as Treasury yields rose. The S&P utilities sector fell 0.88 percent, the most since mid March.

Among stocks active in corporate news, Alibaba jumped 13.3 percent to $142.34 after the company said it sees revenue growth of 45 to 49 percent in the 2018 fiscal year. Yahoo, which has a 15.5 percent stake in Alibaba, advanced 10.2 percent to $55.71.

Chipmaker Nvidia bounced 7.3 percent to $159.94 after Citigroup cited its bullish outlook on the stock and said in the long term it could reach $300.

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**InstaForex Gertrude** · 13-06-17, 07:07

Treasury Yields Continue to Rally Ahead of Fed Meeting

U.S. government bond yields edged up as prices retreated ahead of the closely monitored two-day U.S. Federal Reserve policy meeting scheduled to start on Tuesday.

The yield on the two-year Treasury note, which is particularly sensitive to shifts in Fed policy, advanced 2.1 basis points to 1.359 percent. Meanwhile the yield on the 10-year note advanced 1.4 basis points to 2.215 percent. The yield on the long bond or the 30-year bond advanced 1.5 basis points to 2.867 percent.

Treasury yields rallied due to expectations of a quarter-point rate increase by the Fed by the end of the June policy meeting. Aside from this, investors will also be looking for clues on the pace of the rate increases after the latest one, with odds of a fifth rate hike since December 2015 falling below 50 percent.

Market participants are also expected to look forward to consumer price data slated to be released on Wednesday as Fed policymakers called the weak consumer price data in March and April as temporary to build up a June rate hike.

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**InstaForex Gertrude** · 14-06-17, 03:10

New Zealand Food Prices Gain 2.4% In May

Food prices in New Zealand were up 2.4 percent on month in May, Statistics New Zealand said on Wednesday - following the 0.8 percent gain in April.

Fruit and vegetable prices rose 8.2 percent on month, while meat, poultry, and fish prices rose 2.3 percent.

Seasonally adjusted, food prices gained 1.6 percent on month.

On a yearly basis, prices were up 3.1 percent.

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**InstaForex Gertrude** · 15-06-17, 03:36

New Zealand Reports Stable Q1 Economic Growth Despite Slowdown in Building Activity

The New Zealand economic growth accelerated slightly on a sequential basis in the first quarter of this year. GDP grew 0.5 percent after rising 0.4 percent in the fourth quarter of 2016, showed Statistics New Zealand.

"Much lower building activity combined with mixed results for the service sector took the shine off higher dairy production and saw a second quarter of moderate overall GDP growth. At an industry level, 11 out of 16 industries increased this quarter, with agriculture and retail trade having the biggest increases, while construction was significantly down,” said national accounts senior manager Gary Dunnet.

Construction dropped 2.1 percent, with all building sectors indicating a decline. Non-residential building construction, declining from a recent peak, was the important driver. This was also reflected with declining investment in both residential and non-residential building construction.

Service industries activity came in mixed, rising 0.4 percent in the first quarter. Retail trade and accommodation mainly drove the service growth. On the contrary, postal, transport and warehousing and rental hiring and real-estate services dropped.

Household spending rebounded in the first quarter, growing 1.3 percent. This shows solid growth in retail trade. This rise added to the year-on-year growth rate of 4.7 percent, the largest rise in household spending in more than a decade. Meanwhile, net exports dropped in the March quarter. Exports of goods and services dropped 0.4 percent, while imports of goods and services were up 1.3 percent.

On a year-on-year basis, the GDP growth of New Zealand came in at 3 percent.

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**InstaForex Gertrude** · 16-06-17, 04:43

Fxwirepro: Usd/jpy Hits Fresh 2-Week High at 111.14 Mark, Markets Await Boj’s Policy Rate Decision

USD/JPY is currently trading around 111.03 marks.

It made intraday high at 111.14 and low at 110.81 levels.

Intraday bias remains neutral for the moment.

A daily close above 110.94 will take the parity higher towards key resistances around 111.84, 112.62, 113.79, 114.88, 115.50, 117.21, 118.18, 118.66, 119.52 and 120.46 levels respectively.

On the other side, a sustained close below 110.94 will drag the parity down towards key supports around 109.27, 108.32, 106.72, 106.03 and 104.96 levels respectively.

BOJ will release latest monetary policy statement and policy rate today.

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**InstaForex Gertrude** · 19-06-17, 03:48

Japan Has Y203.367 Billion Trade Deficit In May

Japan had a merchandise trade deficit of 203.367 billion yen in May, the Ministry of Finance said on Monday.

That missed forecasts for a surplus of 43.3 billion yen following the 481.7 billion yen surplus in April.

Exports were up 14.9 percent on year, shy of expectations for a gain of 16.0 percent following the 7.5 percent gain in the previous month.

Imports climbed an annual 17.8 percent versus expectations for 14.5 percent and up from 15.1 percent a month earlier.

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**InstaForex Gertrude** · 19-06-17, 06:02

U.K. and EU Begin Brexit Talks

British Brexit Secretary Davis Davis launches official talks in Brussels on Monday, that will forge the terms on with the UK will divorce from the European Union and set its ties with the zone for the coming years.

Almost a year since Britons shocked the world by voting on June 23 to sever ties with their main trading partner and almost three months since PM Theresa May triggered a two-year countdown to Brexit in March 2019, there is almost no clarity to what the future holds for both parties.

Even the British premier's political survivability is in question. Theresa May's conservatives lost their majority in a general election 10 days ago.

Davis is slated to meet chief EU arbitrator Michel Barnier at the European Commission's headquarters. They are scheduled to give a joint press conference following dialogue among their teams that will last seven hours.

Both parties attempted to downplay expectations for the possible results after a day of discussions. EU diplomats hope that the first meeting can enhance the talks' atmosphere following heated exchanges.

Davis conceding to Monday's agenda led some EU officials to perceive that May's government may be beginning to come around how the Brexit talks should proceed on Brussel's terms.

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**InstaForex Gertrude** · 20-06-17, 04:36

Dow, S&P 500 Log Record Close as Tech Stocks Regain

US equities rallied on Monday as technology stocks recuperated following their not-so-impressive performance in the last session.

The S&P 500 and Dow Jones glided higher as the technology sector climbed 1.7%, pushing equity indices higher. Previously, the sector lost 3.4% in the last few weeks.

Major tech shares including Facebook, Apple, and Alphabet all inched higher. Also, Amazon logged an all-time high as the trading session started.

The Dow stood at 21,528.99, up 0.83%, with Apple leading the advances. The Nasdaq ended at 6,239.01, up 1.42%. The S&P 500 closed at 2,453.46, with the IT leading eight sectors to their surge.

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**InstaForex Gertrude** · 22-06-17, 05:51

Gold Climbs as Treasury Yields Hit Near 10-Year Low

Gold prices rose Thursday as the US dollar's easing made the Treasury yields hit its lowest in almost a decade.

The curve of the Treasury yield straightened to almost 10-year troughs as investors assessed how the Federal Reserve's hawkish tool shaped the economy but inflation measures are slumping. The greenback tumbled from a one-month peak versus a bunch of currencies.

US gold futures for August settlement traded at $1,253.10 an ounce, up 0.6%. Spot gold stood at $1,251.91 an ounce, up 0.5%. Earlier, it gained 0.3%, its biggest intraday percentage change since June 6.

Meanwhile, the holdings of SPDR Gold Trust climbed 0.4% to 853.98 tonnes, previously 853.68 tonnes.

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**InstaForex Gertrude** · 27-06-17, 03:38

New Zealand Has NZ$103 Million Surplus In May

New Zealand had a merchandise trade surplus of NZ$103 million in May, Statistics New Zealand said on Tuesday.

That was shy of expectations for a surplus of NZ$419 million and down from the downwardly revised NZ$536 million a month earlier (originally NZ$578 million).

Exports were up 8.7 percent on year to NZ$4.95 billion - beating forecasts for NZ$4.93 billion and up from NZ$4.70 billion.

Imports jumped an annual 15.0 percent to NZ$4.85 billion versus expectations for NZ$4.48 billion and up from NZ$4.16 billion.

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**InstaForex Gertrude** · 27-06-17, 04:12

Bitcoin, Ethereum Headline Plunge of Digital Currencies

Bitcoin and ethereum spearheaded the decline of virtual currencies after posting record highs and experiencing a flash crash last week.

Data showed that bitcoin stood at a low of about $2,255.44 in intraday trading, its lowest since June 15. Ethereum traded at $221.45, down 26%. Also, ripple has lost around 13% to about 26 cents.

Ether, a cryptocurrency based on the ethereum blockchain, dropped June 21 following the congestion on its network slowed down deals, prompting digital currency exchange operators such as Bitfinex to stop transactions.

Still, the two largest digital currencies have soared in value this year. Bitcoin has gained around 150% year to date. Ether started 2017 about $8.

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**InstaForex Gertrude** · 28-06-17, 03:43

Wall Street Stumbles After Senate Delays Health Vote

U.S. equities faltered with large-cap technology stocks losing over one percent after a healthcare bill was delayed by the U.S. Senate which fueled policy uncertainty. The S&P 500 recorded its largest one-day decline in nearly six weeks and ended at its weakest point since May 31.

The Dow Jones industrial average retreated 0.46 percent to finish at 21,310.6, as Verizon led losses while JPMorgan Chase the best performer. The S&P 500 fell 0.81 percent to close at 2,419.38, with information technology leading ten sectors lower while financials being the only gainer. The Nasdaq composite dropped 1.61 percent to end at 6,146.62.

Major indexes extended declines after U.S. Senate Republican leader Mitch McConnell delayed a planned vote on a bill to take down the Affordable Care Act until after the Senate's July 4 recess.

The tech sector fell 1.7 percent. Google-parent Alphabet lost over two percent. The European Union fined the company a record $2.7 billion, with regulators ruling Google with a violation of antitrust rules.

Shares of Facebook, Netflix and Amazon also retreated, ending nearly 1.5 percent lower.

However, technology stocks continue to be the best-performing major group in 2017 as the sector gained almost 20 percent so far.

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**InstaForex Gertrude** · 28-06-17, 04:26

ARGENTINA: Macri Defends Greater Integration With Chile

Argentina's President Mauricio Macri stressed to Chilean lawmakers the importance of an increase in both nations integration and of an improvement in bilateral trade. Macri's made the comments during a speech at Chile's National Congress. Maur?cio Macri also pointed out that Argentina and Chile should agree on "long-term" energy policies that will help to develop both countries soon, according to a statement by the Casa Rosada. Also, Macri called on Chilean lawmakers to help to promote integration between the Mercosur and the Pacific Alliance. Later, in the Audience Hall of the La Moneda's Palace, the Chilean President Michelle Bachelet and Macri held a bilateral meeting aimed to strengthen ties between both nations.

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**InstaForex Gertrude** · 29-06-17, 04:52

COLOMBIA:Chile Suspends Beef Imports Due To Foot-and-mouth Disease Outbreak

Chile's Agricultural and Livestock Service (SAG) said in a statement that it would temporarily suspend imports of Colombian meat products after a foot-and-mouth disease outbreak in the department (state) of Arauca.

"The SAG has already contacted the Colombian authorities to monitor the case, and better assess the situation," said the Chilean agency. SAG also noted that just a month ago it had authorized meat imports from Colombia after a thorough evaluation process.

Last Saturday, Colombia's Agricultural and Livestock Institute (ICA) reported the detection of a foot-and-mouth disease outbreak, the first since 2009. Since the news came, Chile, Peru, and Panama have suspended their meat imports, and Ecuador reported that it would strengthen sanitary controls.

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**InstaForex Gertrude** · 30-06-17, 03:52

China Manufacturing Sector Picks Up Steam In June

The manufacturing sector in China continued to expand in June, and at a faster pace, the latest survey from the National Bureau of Statistics showed on Friday with a manufacturing PMI score of 51.7.

That beat forecasts for 51.0, and it's up from 51.2 in May.

It also moves farther above the boom-or-bust line of 50 that separates expansion from contraction.

The bureau also said that its non-manufacturing PMI came in with a score of 54.9, up from 54.5 in the previous month.

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