Forex News from InstaForex

**InstaForex Gertrude** · 10-08-16, 06:12

Dollar Surges to One-Month High Amid Mixed Economic Data

Following mixed U.K. economic data, the dollar has surged to its highest close since July 8 by 0.3 percent against the British pound. The WSJ Dollar Index has dropped to 0.3 percent with 86.63 while the dollar decreased against the Canadian dollar and the Japanese Yen.

A business survey from the U.K. has indicated that the like-for-like sales have grown by 1.1 percent in July however manufacturing data was lower-than-expected while trade gap is expanding. The dollar has prolonged declines against currencies of emerging markets which remain strong, implying that investors believe that the Fed will not raise rates in the upcoming term.

The dollar has reached its lowest level last seen in July 2015 when it was weak against the Brazilian real by 0.9 percent, down by 0.6 percent against the Mexican peso and fell by 1.1 percent against the South African rand.

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**InstaForex Gertrude** · 15-08-16, 06:32

Oil Prices Edge Up on Potential OPEC Production Freezes

Oil prices climbed on Monday on growing speculation that OPEC will take steps to prop up prices in the oversupplied oil market.

Brent crude oil futures traded at $47.13 per barrel, up 16 from their last close while U.S. W.T.I. crude futures climbed by 18 cents at $44.67 a barrel.

Oil prices advanced on heightening speculation of possible freezes in oil production by OPEC members as Saudi Arabia indicated that it is set to talk about steadying the markets at the informal OPEC meeting on September.

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**InstaForex Gertrude** · 16-08-16, 06:42

Gold Increases Due to Weak Dollar and Economic Data from Japan

Gold prices increased as the weak U.S. dollar and the poor economic data from Asia aided in reversing early losses. Gold for December delivery closed by 0.3 percent with $1,347.50 per troy ounce on the Comex division of the New York Mercantile Exchange.

The data which has shown that Japan's economy has stalled during the second quarter by expanding by an annualized 0.2 percent also supported the precious metal according to ETF Securities' commodities strategist Nitesh Shah. Gold is seen as a haven from currency weakness and inflation and so loose monetary policy will likely increase the demand for the precious metal.

Gold had momentarily increased above $1,360 on Friday following the reporting of the weak U.S. retail sales figures, and had settled lower.

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**InstaForex Gertrude** · 23-08-16, 06:16

Baltic Exchange Board and SGX Agrees on Bid for London Firm

Singapore Exchange and the Baltic Exchange announced on Monday that they have agreed on SGX's bid of 160.41 pounds per share and 19.30 pounds per share as a final dividend, higher than the initial 18.80 pounds per share dividend extended two weeks prior. The deal puts the market value of the London exchange firm at around 87 million pounds.

SGX looks to grow its presence in Europe through its acquisition of the Baltic Exchange. The takeover is part of SGX's ambition to further delve into the market for shipping finance with the Baltic's membership that is dominated by European shipowners.

The deal is seen to be completed by November if a vote of shareholders backs the takeover.

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**InstaForex Gertrude** · 24-08-16, 06:26

Qantas Profit Soars to A$1.53 billion and Pays First Dividend

Qantas Airways Ltd.'s Chief Executive Officer Alan Joyce's turnaround program has produced a record annual profit as the airline has announced its first dividend since 2009 and has given bonuses to its 25,000 employees. According to a Wednesday filing, Australia's flag carrier airline is going to pay a final dividend of seven Australian cents per share and buy back almost A$366 million ($279 million) worth of stocks. During the 12 months that ended on June 30, earnings before tax and one-time items soared by 57 percent into A$1.53 billion.

The A$2 billion transformation program includes thousands of jobs that were cut, aircraft orders that were delayed and unprofitable routes which were pulled out. According to Joyce, the three-year plan is on the track to exceeding the initial target. Qantas has been doing well as shares have increased by 4.1 percent to A$3.54 with the stock nearly tripling ever since Joyce has announced the program. In the past year, Qantas has delivered two one-off capital returns which produces an overall of beyond A$1 billion.

The airline's domestic business underlying operating profit has jumped by 20 percent to A$578 million and has significantly surged by 92 percent with A$512 million on its international unit.

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**InstaForex Gertrude** · 25-08-16, 06:34

Brazil Senate approves amendment of revenue appropriation

Brazil's Senate approved a constitutional amendment in which the government can readily use up to 30% of tax revenues which would have been allocated for other expenditures.

Called the DRU, this will help the Brazilian government ensure that their expenses is in check as it aims to curb its fiscal deficit in the future.

The legislation, which was passed faster than estimated, had voided in 2015 and will not be prolonged until 2023. President Michel Temer pledged to resolve the fiscal deficit in the country.

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**InstaForex Gertrude** · 26-08-16, 06:44

Italy Declares State of Emergency as Earthquake Death Toll Hits 250

Italy's government declared a state of emergency in the areas hit hardest by the massive earthquake on Wednesday. The 6.2 magnitude quake struck in the early hours of Wednesday in central Italy, severely damaging several towns.

At the minimum, 250 people have died from the disaster while 365 other people were injured. Rescue teams have continued to work through the rubble of destroyed buildings for a second night, but hopes of finding more survivors are dimming.

Prime Minister Matteo Renzi has pledged 42 million pounds in funds for rehabilitation of the affected areas. Aside from the funds, the Italian premier has scrapped taxes for locals in the disaster zones. He also announced a new measure called “Italian Homes” to address the criticism of the Italian media over poor-quality home construction, but he also stated that it was ridiculous to think that the nation could establish full quake-proof establishments.

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**InstaForex Gertrude** · 31-08-16, 06:05

Dollar Climbs to One-Month High while Investors Weigh on Fed Rate Hike

The U.S. dollar increased to a one-month high against a basket of currencies while investors carry on by assessing the next increase in interest rates. The WSJ Dollar Index increased by 0.6 percent to 87.06 bound to its highest closing level since July 28.

The dollar increased by 1.1 percent against the Japanese yen to ¥103.05. The euro slipped by 0.4 percent to $1.1143. According to CME Group data, investors currently see a 27 percent likelihood of a Federal Reserve rate increase in September as well as a 55 percent likelihood in December. A gauge of U.S. consumer confidence during August increased to its highest level in almost a year as a different report has shown that consumer spending was also up for the fourth consecutive month in July.

The dollar was higher against emerging market-currencies. The dollar climbed against the Mexican peso by 0.8 percent and also increased against the South African rand by 0.6 percent.

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**InstaForex Gertrude** · 01-09-16, 06:25

British Government to Proceed with Brexit

U.K.'s government will reportedly “push ahead” to set off Brexit despite the absence of Parliamentary approval, according to Downing Street.

Following a meeting of Prime Minister Theresa May's cabinet at Chequers, a statement released said ministers reach an agreement regarding the need for a distinct deal for the United Kingdom. This involved controls on European Union migration and a “positive outcome” on trading, Downing Street reported. May told cabinet members Britain would not remain in the EU in an unofficial way.

May reiterated that official negotiations with the rest of the European Union members regarding the Brexit will not start this year.

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**InstaForex Gertrude** · 02-09-16, 07:16

Stocks Ended Slightly Changed Ahead of Job’s Report

Major U.S. stock indexes rose and then closed slightly changed prior to the job's report. The August job's data will be a significant indicator for the Federal Reserve official's decision regarding the interest-rate hike.

The decline of oil prices have pulled down energy shares, however stocks increased near the closing of the session.The S&P 500's energy sector slipped by 0.3 percent and shares of Chevron dropped to 37 cents or 0.3 percent to $100.21. The S&P 500's financial shares was down by 0.4 percent. The broader S&P 500 slightly changed by declining 0.004 percent to 2170.86. The Nasdaq Composite increased by 0.3 percent to 5227.21 while shares of technology jumped. The Dow Jones Industrial Average climbed by 0.1 percent to 18419.30. In the blue-chip index, Wal-Mart Stores drove gains surging by two percent to 72.84.

The Institute for Supply Management has announced that the manufacturing activity index was down to 49.4 in August.

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**InstaForex Gertrude** · 05-09-16, 06:58

Dollar Strengthens after U.S. Payroll Data

The U.S. dollar strengthens following the disappointing U.S. employment growth figures for August which only slightly affected the perception of investors regarding the Federal Reserve's likelihood of increasing the interest rates in the following months. Nonfarm payrolls increased by 151,000 jobs in August, according to the U.S. Labor Department.

Average hourly wage earnings increased by 0.1 percent, which falls behind the 0.2 percent growth of market expectations. As the increase of the average payroll during the last three months tops 200,000, investors have then concluded that the jobs report would not be a severe impact to the Fed's plan to lift interest rates. U.S. fed funds futures price is at a 20 percent likelihood of a rate hike this September and a 60 percent odds by the end of the year.

The dollar's index against a basket of six major currencies .DXY=USD was buoyed as it immediately gained from its one-week low of 95.189 following the payroll data.

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**InstaForex Gertrude** · 06-09-16, 04:56

Australia Q2 Current Account Deficit A$15.535 Billion

Australia had a seasonally adjusted current account deficit of A$15.535 billion in the second quarter of 2016, the Australian Bureau of Statistics said on Tuesday.

That beat forecasts for a shortfall of A$20.0 billion following the upwardly revised A$14.9 billion in the previous three months (originally a deficit of A$20.8 billion).

New exports of GDP for the quarter was -0.2 percent - shy of expectations for a flat reading following the 1.1 percent increase in the three months prior.

The balance on goods and services was a surplus of A$10.797 billion, a decrease of A$999 million (8 percent) on the Q1 surplus of A$11.796 billion.

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**InstaForex Gertrude** · 08-09-16, 07:29

Wall Street Slightly Changed as Investors Assess U.S. Interest Rate Outlook

U.S. stocks closed slightly changed, however the Nasdaq extended gains, while investors continue to assess the outlook of U.S. interest rates. The Fed has stated in its Beige Book report of anecdotal information that the economy of the U.S. has expanded at a subdued rate during July and August.

The Dow Jones Industrial Average decreased by 0.06 percent, the S&P 500 decreased by 0.02 percent while the Nasdaq Composite gained by 0.15 percent, a record high close. Unsatisfactory predictions from Sprouts Farmers Markets pulled down grocers. Shares of Sprouts dropped by 13.7 percent at $19.68, shares of Whole Foods edged down by 5.3 percent to $29.08 while shares of Kroger fell by 4.1 percent to $31.32. Apple shares increased by 0.6 percent at $108.36. Chipotle Mexican Grill has increased by 5.9 percent.

U.S. airline stocks rose following Delta Air's report that sales trends have improved and Southwest has stated it would slow its rapid growth of flights in 2017. Stocks of Delta increased by 5.6 percent and Southwest rose by 4.7 percent.

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**InstaForex Gertrude** · 15-09-16, 07:16

Dollar Declines With Hike Rate Bets

The U.S. dollar declined while investors bet that an interest rate hike by the Federal Reserve in the coming months is unlikely. The Wall Street Journal Index decreased by 0.2 percent at 86.67.

Fed-funds futures has shown that traders and investors have assigned a 48 percent chance of an interest rate hike by December, according to the CME. Data has shown that the likelihood of an increase at the Sept.20-21 Fed meeting is at 15 percent. The dollar declined against the Japanese yen by 0.1 percent at 102.43 while the euro increased by 0.2 percent at 1.1248.

In emerging markets, the dollar increased by one percent to 19.27 against the Mexican peso and it declined by 0.4 percent to 65.15 against the Russian ruble.

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**InstaForex Gertrude** · 16-09-16, 06:44

Oil Headed for Weekly Loss on Prospect of Oil Glut Persistence

Oil is set for a weekly loss on outlook that a global crude will continue as halted supply production resumed and as demand expansion slumped.

Oil futures dropped by 0.6% in New York, adding up the weekly losses to 4.9%. Oil producers Libya and Nigeria, whose supplies have been cut back by local conflicts, are getting ready to bolster exports in the following weeks. The International Energy Agency said on Tuesday that the oil oversupply will persist as demand growth slows and as supply sustains its momentum.

U.S. W.T.I. dropped by 26 cents to $43.65 per barrel while the benchmark Brent dropped by as much as 0.8% to $46.23 per barrel.

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**InstaForex Gertrude** · 19-09-16, 07:13

Dollar Gains after U.S. Data Boosts Bets on Fed Rate Increase

The U.S. dollar reached a two-week high against a basket of major currencies as U.S. consumer prices increased more than initially expected during August, which boosted expectations regarding a potential Federal Reserve interest rate hike this 2016. The dollar index last traded as high as 96.108, its strongest level since Sept. 1.

The data regarding the increase in U.S. consumer prices indicated a steady rise of inflation which makes the Fed eligible for a Fed rate hike this year. The core CPI was up by 2.3 percent in the 12 months until August. U.S. short-term interest rate futures are currently indicating a 55 percent likelihood of an interest rate hike by December, according to CME Group's FedWatch Tool.

The U.S. dollar against the Japanese yen eased by 0.1 percent to 102.20 yen while the euro was steady at $1.1160.

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**InstaForex Gertrude** · 27-09-16, 06:32

Asian Shares Gain as Markets See Clinton Winner of U.S. Presidential Debate

Asian stocks gain while investors seem to favor Democrat representative Hillary Clinton over Republican representative Donald Trump. MSCI's broadest index of Asia-Pacific shares excluding Japan increased by 0.2 percent.

Japan's Nikkei more than halved its losses and decreased by 0.4 percent as the U.S. dollar increased against the Japanese yen at 100.74. Markets are currently inclined to view Clinton as the candidate of the status quo, as several are uncertain as to what a Trump presidency entails for U.S. trade, foreign policy and the domestic economy. The South Korean Kospi and the Shanghai SSE Composite Index were both up.

In commodity markets, oil increased by three percent as the world's biggest producers met in Algeria in order to discuss ways to address the crude glut. Brent crude LCOc1 declined 20 cents to $47.13 per barrel, as U.S. crude CLc1 was down 13 cents to $45.80.

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**InstaForex Gertrude** · 28-09-16, 07:12

Volkswagen Shares Slides on Media Report

Shares of Volkswagen fell over 4% after a Bloomberg report stated that the U.S. government is evaluating the size of the fine it will impose on the automaker without closing down its business.

U.S. Environmental Protection alleged the German automaker has been cheating on American air pollution tests last year in diesel vehicles issued between 2008 and 2015. A civil complaint was consequently filed by the Justice Department against Volkswagen after it admitted being guilty of the accusations.

Volkswagen agreed to pay a $16.5 billion civil litigation fine in the US. and now the two parties are looking to reach an agreement by January according to sources.

The carmaker's U.S.-listed stocks have lost 10% this year to date.

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**InstaForex Gertrude** · 04-10-16, 04:49

Dollar Firms Buoyed by Manufacturing Data

The U.S. dollar rose after it received a boost from an upbeat U.S. economic data which showed that the manufacturing sector rebounded in September. The WSJ Dollar Index increased by 0.3 percent to 86.61.

The Institute for Supply Management report has shown that factory activity in the U.S. rebounded in September after it shrank in August. The ISM manufacturing index was at 51.5 percent for the month. Fed-fund futures have shown a 62 percent likelihood that the Fed would increase interest rates by the December meeting, according to CME Group data.

The British pound declined by 1.1 percent to $1.2826 as U.K. Prime Minister Theresa May has finally set a March date to go ahead with leaving the European Union and claims that controlling immigration is a higher priority than full access to its biggest trading partner.

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**InstaForex Gertrude** · 05-10-16, 07:56

Oil Prices Jump on U.S. Crude Supply Data

Oil prices rose following a report that U.S. crude stocks may have dropped for the fifth week in a row, however, contracts continued to be close to the $50-per-barrel mark where most traders presently perceive a fair price for crude.

U.S. WTI oil futures traded up 49 cents or 1% from their previous finish at $49.18 a barrel while the benchmark Brent crude futures were up 42 cents or 0.8% at $51.29 a barrel.

Traders state that the surge in prices was mostly due to a report by the American Petroleum Institute on Tuesday, revealing that U.S. crude supplies most likely dropped for the fifth consecutive week, falling by 7.6 million barrels. The U.S. EIA is scheduled to release official inventory figures on Wednesday. Analysts are expecting a supply accumulation of 2.6 million barrels during the previous week.

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