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Dear traders, participants and guests of the portal!

 

In this thread we present fresh Forex news provided by InstaForex Company. Our news contain exhaustive information about topical events and facts of the financial world; we offer international statistical data in order to help you correct and enhance your trading strategy. We also present video news from InstaForex-TV portal. InstaForex-TV channel provides the latest information about fluctuations of currency rates and forecasts their influence on the future movement of currencies. Our news will be especially useful if you prefer intraday trading and use fundamental analysis.

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China Inflation to Stay "modest" at 3-5 Pct - Govt Researcher

 

News:

Xu Lianzhong, a director at NDRC said that inflation in China will stay at a modest 3-5 pctfor a long time due to rising costs at home and higher commodity prices abroad

He opined that China's monetary policy tightening couldn't address food-driven inflation

Quotes:

"As grains, vegetables and pork prices are rising because of supply problems, we can't control price rises by curbing overall money supply," - Xu wrote

 

 

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China Warns Independents Against Running for Local Legislatures

News:

In another sign of tightening political controls, China warned independents against contesting for local legislatures.

 

The warningcame in response to a small but spreading online campaign by dozens who hope to fight for seats on local legislatures with no endorsement from the Party.

 

China's leaders have been shaken by anti-authoritarian uprisings across the Arab world, which they fear could inspire challenges to their grip on power.

Quotes:

"There are no so-called 'independent candidates', and there is no legal basis for 'independent candidates'," said the NPC official quoted in the People's Daily.

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Ecb's Trichet: Nations With Weak Structural Reforms have faced Slow Growth

 

News:

ECB's Trichet reported that nations that did not undergo far-reaching structural reforms have faced slow growth.

Trichet repeated ECB's warning that the new EU debt rules had not gone far enough.

Quotes:

"Those countries that have yet to implement more far reachingstructural reforms also have relatively low growth prospects after thecrisis," Trichet said.

"Results (of analysis) suggest that those who are questioning theviability of the euro area as a single currency area on the grounds ofeconomic heterogeneity are misguided," Trichet added.

 

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U.S. Dollar Slightly Off Early Highs Against Most Majors

 

The U.S. dollar eased slightly from early Monday Asian session's highs against most major currencies in later part of the deals.

The greenback eased slightly from an 11-day high of 1.4323 against the euro, 10-day high of 80.70 against the yen, 4-day high of 0.9801 against the loonie, 12-day high of 0.8470 against the franc and near a 3-week high of 1.0527 against the aussie.

The greenback is now trading at 1.4340 against the euro, 80.45 against the yen, 0.9766 against the loonie, 0.8453 against the franc and 1.0552 against the aussie.

 

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Euro Hits 4-day High Against Dollar And Yen

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In the Asian session on Tuesday, the euro edged up against its US and Japanese counterparts. As of now, the euro is trading at a 4-day high of 115.91 against the yen and 1.4442 against the dollar, compared to yesterday's close of 115.66 and 1.4417, respectively. The next upside target level for the European currency is seen at 1.450 against the dollar and 116.5 against the yen.

 

 

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Euro Falls Against Most Majors

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The euro declined against its most major counterparts in the early Asian session on Wednesday on worries over Eurozone debt crisis.

The talks held by the Eurozone finance ministers failed to reach a consensus regarding second bailout for Greece.

The euro declined to a 2-week low against the loonie and the aussie.

The euro is now trading at 1.2177 against the franc and 1.4418 against the greenback, compared to Tuesday's close of 1.2209 and 1.4441, respectively. The next downside target level for the euro is seen at 1.21 against the franc and 1.42 against the greenback.

Against the pound and the yen, the euro is worth 0.8811 and 115.94, respectively. If the euro falls further, it may target 0.875 against the pound and 113.00 against the yen. The euro closed Tuesday's trading at 0.8824 against the pound and 116.23 versus the yen.

The euro fell to a 2-week low of 1.3969 against the loonie and 1.3502 against the aussie in the Asian session. The European single currency is now quoted at 1.3507 against the aussie and 1.3979 versus the loonie and the next downside target level for the euro is seen at 1.34 against the aussie and 1.38 versus the loonie. At Tuesday's close, the euro-loonie pair was worth 1.3985 and euro-aussie pair was worth 1.3518.

Consumer sentiment in Australia declined in May, according to index readings reported today by Westpac Bank and the Melbourne Institute.

The consumer sentiment index declined 2.6 percent in June compared to May. The reading of 101.2 was the lowest in two years. The index was at a seasonally adjusted 103.9 for May.

Meanwhile, a report from the Australian Bureau of Statistics said that the total number of housing starts in Australia was up a seasonally adjusted 3.1 percent in the first quarter of 2011 compared to the previous three months. That was well above analyst expectations for a decline of 0.8 percent following the upwardly revised fall of 4.0 percent in the fourth quarter of 2010.

In the European session, French CPI, Switzerland's producer and import prices data and the U.K. claimant count rate - all for May and the Eurozone industrial production for April are due for release.

Canada's manufacturing shipments for April is due at 8:30 am ET.

The U.S. CPI for May, results of the New York Federal Reserve's empire state manufacturing survey for June, Treasury Department's report on the flows of financial instruments into and out of the U.S. for April, industrial production for May and the NAHB housing market index for June are expected to influence trading in the North American session.

 

 

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Euro Drops To More Than 2-week Low Of 0.8724 Against Pound

 

Euro Declines To More Than 3-week Low Of 114.33 Versus Yen

 

Euro Slides To Fresh 3-week Low Of 1.4115 Against U.S. Dollar

 

Euro Falls To 2-day Low Of 1.2066 Against Franc

 

Dollar Index Hits Three-Week High As Euro Slides Sharply, on Greece Debt Owes

 

Euro/dollar Hits Three-Week Low Below $1.4156

 

Euro Dips To Fresh 3-week Low Of 1.3845 Against Canadian Dollar

 

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Euro Slides Against Most Majors

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The euro fell against most major counterparts in the Asian session on Friday.

The euro is now trading at 1.2022 against the franc and 1.4145 against the greenback, compared to yesterday's close of 1.2040 and 1.4205, respectively. If the euro weakens further, it may find target at 1.20 against the franc and 1.41 against the greenback.

Against the pound and the yen, the euro is now quoted at 0.8778 and 114.06, respectively. The next downside target levels for the euro are seen at 0.8793 against the pound and 113.00 versus the yen. At yesterday's close, the euro was worth 0.875 against the pound and 114.56 versus the yen.

Japanese total cash earnings decreased for the second straight month in April, final data published by the Ministry of Health, Labor and Welfare showed. Total labor cash earnings fell by 1.4 percent year-on-year in April.

The European currency also fell to as low as 1.3914 against the loonie with 1.38 seen as the next downside target level. The euro-loonie pair closed Thursday's trading at 1.3941.

Looking ahead to the European session, Eurozone trade data for April is due for release.

Canada's wholesale sales data for April, preliminary figures of university of Michigan confidence for June from U.S are expected in the New York session.

 

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European Economics Preview: Eurozone Current Account Data Due

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Current account figures from Eurozone and producer prices from Germany are the major statistical reports due on Monday.

At 2.00 am ET, the Federal Statistical Office is slated to release German producer prices for May. Producer price annual inflation is seen at 6.3 percent, down slightly from 6.4 percent in April.

The European Central Bank is slated to issue current account figures for April at 4.00 am ET. The Eurozone current account showed a deficit of EUR 4.7 billion in March.

In the meantime, Italy's industrial order data is due. Industrial orders are forecast to fall 4 percent month-on-month in April, after rising 8.1 percent in March.

Eurozone labor cost figures are due at 5.00 am ET. Economists expect labor costs to rise 1.9 percent annually, following last month's 1.6 percent increase.

 

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European Economics Preview: U.K. PSNB, German ZEW Survey Data Due

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Public sector finances from the U.K. and ZEW economic confidence survey results from Germany are due on Tuesday.

Statistics Finland is set to release unemployment figures for May. Economists expect the jobless rate to rise to 9.5 percent from 8.2 percent in April.

At 3.00 am ET, the Swiss National Bank is scheduled to issue money supply data for May. Swiss money supply increased 6.9 percent year-on-year in April.

At 4.30 am ET, the Office for National Statistics is slated to release U.K. public sector finance figures for May. Public sector net borrowing is seen at GP 16.5 billion compared to GBP 7.7 billion in April.

German ZEW economic sentiment survey results are due at 5.00 am ET. The economic sentiment indicator is expected to show a negative reading of 3 after logging positive 3.1 points in May.

Half an hour later, Swiss KOF institute is set to publish June Economic Forecast.

At 6.00 am ET, U.K. Industrial Trends survey results are due from the Confederation of British Industry. The order book balance is seen at negative 5 for June compared to minus 2 in May.

 

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European Economics Preview: BoE Minutes Due

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The minutes of the last Monetary Policy Committee meeting of the Bank of England and industrial new orders from Eurozone are due on Wednesday.

At 2.45 am ET, the French statistical office Insee is slated to release business confidence survey results. Business sentiment is forecast to fall to 106 in June from 107 in May.

The National Institute of Economic Research is scheduled to release Sweden's economic tendency survey data at 3.15 am ET. Economists expect the economic tendency index to fall to 110.5 from 112.4 in May. The institute is also set to publish Economic Outlook.

At 3.30 am ET, Dutch consumer confidence and Sweden's SCB unemployment figures are due. Dutch consumer sentiment is seen at minus 12, down from minus 10 in May. Sweden's jobless rate is forecast to fall to 7.7 percent in May from 7.9 percent in April.

Half an hour later, unemployment figures from Norway and Poland are due. Economists expect Poland's jobless rate to drop to 12.1 percent in May from 12.6 percent in April.

At 4.30 am ET, the Bank of England is scheduled to issue the minutes of the last MPC meeting held on June 8 and 9. The central bank had retained its record low interest rate and GBP 200 billion asset purchase plan.

At 5.00 am ET, Eurozone industrial new orders data is due. Economists expect industrial orders to rise 1 percent month-on-month in April after falling 1.6 percent in March.

The European Commission is set to publish Quarterly Report on euro area at 6.00 am ET.

 

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Eurodollar Futures steady After fED Cuts Economic Forecasts

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Eurodollar futures contracts expiring in March 2012traded steady at 99.51, implying a dollar LIBOR of 0.49 pctcompared with 0.24550 pct currently

Dollar funding in Singapore edged higher from a 16-month low hit onWednesday

China, short-dated IRS rates extended rise, one-year IRS rates were at 3.95 pct

China benchmark 7-day govt bond repo ratejumped to 9 pctprompting the c.bank to pump in funds to alleviate the shortage

 

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U.s. Corn Extends Gains for 2nd Day, Soy Rebounds on Greece News

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Сhicago Board of Trade July corn gained 1.2 pct to$6.88-3/4 a bushel by 0249 GMT

July wheat slid 0.4pct to $6.46-1/2 a bushel

CBOT soybeans for July deliveryrose 0.7 pct to $13.26-3/4 a bushel

Greece's deal with international lendersfor a new austerity plansupports commodities

Market remained underpressure from improved weather conditions in Europe, raisinghopes of ample supplies

 

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Yen Trades At Fresh Multi-year Low Against Franc

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The yen has been declining against the European majors ahead of the European session on Monday. At present, the yen is trading at a fresh multi-year low of 96.63 against the franc.

Against the euro and the pound, the yen is now worth 114.34 and 128.97, respectively.

 

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Swiss UBS Consumption Indicator Rises Significantly In May

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Switzerland's consumption indicator rose significantly in May, driven by an increase in new car registrations, the UBS bank said Tuesday.

The bank's consumption indicator rose 0.34 points to 1.91, its highest level since August last year. This follows a 0.1 point decline in April.

The continued rise in new car registrations as well as growth in retail sector activity supported the economy. New car registrations rose 20.2 percent compared to the same month last year.

UBS Wealth Management Research sees private consumption as a key driver of the Swiss economy. Consumption is supported by low interest rates, consistently high immigration and falling unemployment. UBS expects consumer spending to play a major role in growth again this year.

The UBS consumption indicator is an index designed to provide concrete conclusions regarding the annual growth rate of private consumption.

 

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European Economics Preview: Eurozone Economic Sentiment Due

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Economic sentiment survey results from Eurozone, mortgage approvals from the U.K. and quarterly national accounts from France are the major reports due on Wednesday.

At 1.30 am ET, French final GDP figures from the statistical office Insee is due. The economy expanded 1 percent sequentially in the first quarter, according to preliminary estimate.

Spanish retail sales data is due at 3.00 am ET. Spanish retail sales had declined 2 percent annually in April. At the same time, Hungary's jobless data is also due. Economists expect the jobless rate to fall to 11.2 percent in May.

The Bank of England is scheduled to release mortgage approvals data at 4.30 am ET. Economists expect mortgage approvals to increase to 46,300 in May from 45,200 in April.

Half an hour later, Eurozone economic sentiment survey results are due. Economic sentiment is seen at 105 in June, down from 105.5 in May.

At 5.30 am ET, Swiss KOF leading indicator is due. The leading index is expected to fall slightly to 2.23 in June from 2.3 in May.

 

 

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U.K. June House Prices Remain Stable: Nationwide

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British house prices remained flat in June on a monthly comparison after rising 0.3 percent in May, data from the Nationwide Building Society showed Thursday. The latest level matched consensus forecast.

 

Price of a typical home in June was 1.1 percent lower than a year ago. That follows May's 1.2 percent drop. The consensus forecast called for a 1.3 percent drop for June.

 

"A combination of low transaction volumes, still tight housing supply and flattish house prices looks set to stay for the remainder of the year," said Robert Gardner, Nationwide's chief economist.

 

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French Manufacturing PMI Fall In June

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French manufacturing sector expanded in June, but at the slowest pace since August 2009, latest report from Markit Economics showed Friday.

 

The headline seasonally adjusted purchasing managers' index dropped to 52.5 in June from 54.9 in May. The figure matched the flash estimate. A PMI score above 50 indicates expansion of the sector, while a reading below 50 suggests contraction.

 

Production levels rose at the weakest pace since July 2009, with particular softness registered in the intermediate goods sector, Markit said. The moderation in output growth reflected a slowdown in new order growth.

 

The latest rise in new work was the least marked in twenty-three months, while growth in new export orders eased to the slowest in the current two-year period of expansion.

 

Input price inflation eased to a sixteen-month low in June, the report said. A weaker rise in output prices was also recorded during the latest survey period. Although still strong, the rate of charge inflation eased to the slowest since December 2010.

 

 

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French Manufacturing PMI Fall In June

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French manufacturing sector expanded in June, but at the slowest pace since August 2009, latest report from Markit Economics showed Friday.

 

The headline seasonally adjusted purchasing managers' index dropped to 52.5 in June from 54.9 in May. The figure matched the flash estimate. A PMI score above 50 indicates expansion of the sector, while a reading below 50 suggests contraction.

 

Production levels rose at the weakest pace since July 2009, with particular softness registered in the intermediate goods sector, Markit said. The moderation in output growth reflected a slowdown in new order growth.

 

The latest rise in new work was the least marked in twenty-three months, while growth in new export orders eased to the slowest in the current two-year period of expansion.

 

Input price inflation eased to a sixteen-month low in June, the report said. A weaker rise in output prices was also recorded during the latest survey period. Although still strong, the rate of charge inflation eased to the slowest since December 2010.

 

 

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Franc Declines Amid Swiss Retail Sales

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Following the release of the Swiss retail sales for May at 3:15 am ET Monday, the franc slipped against its major counterparts. As of now, the franc is worth 0.8489 against the dollar, 95.03 against the yen, 1.3685 against the pound and 1.2341 against the euro.

 

 

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Dollar Advances Against Majors

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In the Asian session on Tuesday, the U.S. dollar rose against other major currencies as risk appetite reduced on speculation of an interest rate hike by China.

The People's Bank of China on Monday said inflationary pressure still remains at a high level and vowed to maintain prudent monetary policy.

In the Monetary Policy Committee meeting, policy makers stressed the need for paying close attention to the current international and domestic economic and financial situation and also the importance of 'stability' in implementing prudent monetary policy.

The PBOC's statement increased speculation that an interest rate hike could be imminent.

Adding to worries, Moody's Investor Service warned today that the scale of problem loans at Chinese banks may be larger than estimated by the National Audit Office (NAO).

The Chinese audit agency could be understating banks' exposures to the local governments borrowers and the local government debt may be CNY 3.5 trillion higher than estimated, the rating agency said.

It also warned that the absence of a clear master plan to deal with this issue may potentially turn the outlook for the Chinese banking system to negative.

The dollar rose to a 4-day high of 81.13 against the yen. The next upside target level for the dollar is seen at 81.3. At yesterday's close, the dollar-yen pair was quoted at 80.80.

Against the euro, the dollar strengthened to a 4-day high of 1.4467, compared to yesterday's close of 1.4539. On the upside, 1.445 is seen as the next target level for the U.S. currency.

The dollar climbed to a 4-day high of 1.6032 against the pound and if the dollar advances further, it may likely target the 1.600 level. The pound-dollar pair closed yesterday's trading at 1.6089.

The US dollar edged up to a 6-day high of 1.0667 against the Australian dollar, compared to yesterday's close of 1.0736. On the upside, 1.055 is seen as the next target level for the greenback.

As expected, the Reserve Bank of Australia decided to maintain its cash rate unchanged at 4.75 percent.

At today's meeting, the Monetary Policy Board judged that the current "mildly restrictive" stance of monetary policy remained appropriate. In future meetings, the board will continue to assess carefully the evolving outlook for growth and inflation, the bank said in a statement.

Against the New Zealand dollar, the US dollar rose to a 4-day high of 0.8268. The next upside target level for the greenback is seen at 0.824. The kiwi-greenback pair was worth 0.8297 at yesterday's close.

The U.S. dollar is trading at a 4-day high of 0.9622 against the Canadian dollar. If the US dollar rises further, it may likely target the 0.965 level. At yesterday's close, the greenback-loonie pair was quoted at 0.9612.

Traders are now likely to focus on the European session, in which final readings of services PMI for June from the major European economies and the Eurozone May retail sales are expected to influence trading.

The U.S. factory goods orders report for May is due at 10:00 am ET.

 

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European Economics Preview: German Factory Orders Due

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Factory orders from Germany and revised estimates of first quarter gross domestic product from Eurozone are the major highlights of the European economics news on Wednesday.

Spain is slated to release the industrial output data at 3 am ET. Economists expects production to remain unchanged in May.

At 5 am ET, Eurostat is expected to publish the third estimate of the first quarter Eurozone GDP. The economy expanded 0.8 percent sequentially in the first quarter, taking the annual rate to 2.5 percent.

At 6 am ET, the Federal Ministry of Economy and Technology is expected to release German factory orders data for May. Economists expect orders to rise 9.5 percent year-on-year after 10.5 percent growth in April. On a monthly basis, orders are forecast to fall 0.5 percent.

 

 

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