Daily Market News By FXNET

Fundamental Analysis May 1
EUR/USD gained 11 points after eurozone inflation printed better this month than the previous months. But it still does not take the ECB off the hook.

GBP/USD eased by 11 points to trade at 1.6817 as traders sold off to book profits after the pair skyrocketed on yesterday’s GDP data. The pound performed fairly well yesterday as the Office for National Statistics announced that the British economy expanded by 0.8% in the first quarter.

AUD/USD climbed by 18 points after private sector credit met expectations and a general shift in sentiment to support the commodity currencies after falling on Monday,

USD/JPY is dead on its trading range at 102.49 ahead of the Bank of Japan decision. Although most believe that the Bank will sit tight at this meeting traders are hoping for some indication of if and when the bank is expecting to add additional stimulus and their evaluation of the current economic situation.

Gold gave up $4 to trade at 1292.30 ahead of the FOMC decision. There was no change to the holdings of the SPDR gold ETF or the Gold Trust, once again. Their respective holdings still stand at 792.139 tonnes and 164.41 tonnes.

EUR/USD is exchanging at 1.3880 crawling higher on Thursday having ridden out two days of more terrible than anticipated news on Eurozone swelling and the US economy that have not in a broad sense modified observations of the approach viewpoint in either.
GBP/USD outperformed its crosses to hit a 2014 trading at 1.6911 after strong manufacturing PMI data surprised the markets to the upside.
AUD/USD is down just 2 points at 0.9287 after data releases this morning. Australia’s dollar held a two-day gain after Chinese data showed manufacturing picked up in April.
USD/JPY is trading at 102.30 up by 7 points after the US dollar declined on Wednesday; the pair is recovering the overreaction to lackluster GDP data but extremely positive ADP payroll numbers.
Gold continued to creep down trading at 1285.00 down almost $11 after the US FOMC continued its tapering program and tensions eased in the Ukraine. Traders pushed the Dow Jones to a record high yesterday.

Fundamental Analysis May 7
EUR/USD picked up 52 focuses to exchange at 1.3927 setting itself up for a significant fall. Climbing relentlessly after eurozone administrations PMI basically beat desires and Spanish unemployment reported much superior to anticipated. Numerous accept this is all a measurable abnormality as Spain is not in a recuperation mode and with the Easter occasion amidst the month a considerable measure of information was most likely not arranged.

GBP/USD added 83 points to be the best market performed today after Services PMI data beat expectations. The pound soared to trade at 1.6951 with the possibility of breaking the 1.70 level later in the session.

AUD/USD gained 7 points after the announcement of the RBA decision to hold rates and policy this morning. The pair is trading at 0.9280. In a strange twist, data showed that Australia’s trade surplus has narrowed, driven by a fall in mining exports.

USD/JPY climbed off the 101 level touched as markets opened on Monday on safe haven trades with tensions escalating in Ukraine. The yen strengthen last week as the BoJ held rates and fire offering a better than expected assessment of the Japanese economy.

Gold is trading at 1307.60 down by $1.70 as traders closely monitor the situation in Ukraine but strong US data seems to be outweighing the flight to safety as ISM data a day before surprised markets to the upside. Gold has been trading sideways after it fell sharply after hitting a seven-month high at 1392 USD in mid-March.

Fundamental Analysis May 8
EUR/USD gave back most of its earlier gains to trade at 1.3932 ahead of the European Central Bank meeting scheduled tomorrow. A dismal German factory orders release also weighed on the currency.

GBP/USD could not gain momentum today and is trading at 1.6971 as traders sell off to book profits as the currency bounces off a record high. Technical selling keeps triggering every time the pound gathers a bit of momentum.

AUD/USD gave up 8 points this morning to trade at 0.9340 in sympathy to the decline of the kiwi dollar after the Director of the New Zealand central bank said that he would intervene to reduce the strength of the kiwi

USD/JPY eased to 101.58 dipping 10 points. The US dollar remains weak, but flat in this morning’s session. Therefore the moves have been in the strength of the Japanese yen, as traders remain in risk off mode pushing the strength of the yen.

Gold eased a bit today as traders prepared for Janet Yellen’s testimony due in the later part of the day. Gold is trading at 1303.90 down by $4.70. Tensions in the Ukraine seem to be easing today after violence this past weekend turned up the heat.

Fundamental Analysis May 13
EUR/USD gained 9 points to trade at 1.3765 recovering a few pips after its tumble since Mr. Draghi’s comments on Thursday. The euro-area’s fastest economic growth in three years probably won’t be enough to stop Mario Draghi from easing monetary policy.

USD/JPY gained 14 points heading back to its 2014 trading range around the 102.50 level as tensions in the Ukraine ease after the weekend vote seemed to end a good deal of the violence.

GBP/USD gained 35 points today to trade at 1.6886 as the US dollar eased. Another transition session Monday, with the dollar from little changed to a tad weaker versus major’s competitors and the pound among the best performers ahead of the BoE Quarterly Inflation Report to be released next Wednesday.

AUD/USD is trading at 0.9362 remaining strong even as the US dollar continues to climb back towards the 80 level. The Aussie is trading flat this morning making little of the business confidence release as traders are expecting comments from the RBA about the strength of the AUD.

Gold moved between small gains and losses up by $3 at 1290.90 at this writing. “Precious metals have been extremely quiet this morning, holding tight ranges,” said William Adams, head of research at FastMarkets.com. “The gold price continues to oscillate sideways either side of $1,290 an ounce — for now we would expect more of the same.” Gold could benefit from some technically-driven buying said Robin Bhar, head of metals research at Societe Generale.

Fundamental Analysis june 2
EUR/USD picked up 14 focuses today to exchange at 1.3616 after German retail deals missed desires and Italian CPI kept on decliing. Euro zone swelling remained at only 0.7 percent in April and is relied upon to stay at the same level in May. Bank of Italy Governor Visco said the pace with which swelling desires can change implied definitive activity was required to take off any danger of a deflationary winding.

GBP/USD trade at 1.6746 remaining well below its monthly trading range. News printed yesterday revealed that Bank of England policymaker Martin Weale wants interest rates to rise “sooner rather than later”.

AUD/USD eased by 43 points after building approvals tumbled well below expectations. The Aussie was trading just above the 93 level but slid to trade at 0.9267. The price of iron ore dropped 4 per cent ending another tumultuous month for the commodity. Australia’s largest export has now fallen in price for six consecutive months; with Friday’s fall one of the heaviest during that span, even if it doesn’t rate alongside the 8 per cent nosedive seen on March 10. The commodity is at its lowest level since September 2012 and just over 5 per cent above a five-year low.

The USD/JPY continues to weaken after the IMF said that the Bank of Japan needs to stimulate the economy now and the Bank Governor changed his rhetoric ahead of this month’s meeting. The JPY moved back into the 102 level to trade at 102.04 giving up 27 points to the greenback. Japan’s consumer prices rose 3.2 percent in April from a year earlier to the highest level since 1991, the government said Friday. The rise was largely due to the first stage of a two-part sales tax hike that is expected to dent growth this quarter.

Gold continued to decline giving up $3 to trade at 1254.10 as global tensions ease, inflation remains tame and the economic crisis seems to be easing into recovery.

Forex Daily Analysis - 18 June 2014
EUR/USD moved by 7 focuses on astonishing information from Germany. The pair exchanged at 1.3566 after German ZEW monetary opinion tumbled indicating concerns after the ECB included its huge weapons a couple of weeks prior. The dollar edged higher, however was kept to a thin run by alert in front of this present week's U.s. Central bank gathering and worry about raising viciousness in Iraq.
GBP/USD eased by 4 points after the release of inflation data today. The pound is trading at 1.6980 after CPI and PPI both printed below forecast. The Pound immediately weakened against the majors this morning, dropping from a 19 month high against the Euro and close to a 5-year high versus the U.S Dollar.
AUD/USD took a fall this morning after dovish comments from the RBA minutes release. The Aussie gave up 45 points to trade at 0.9355. The Aussie dropped 0.4 percent to 93.66 U.S. cents as of 11:12 a.m. in Tokyo. It rose to 94.38 on June 12, approaching this year’s high of 94.61 The AUD dropped after the Reserve Bank reiterated it expects to keep its benchmark at a record low and a report that investment into China unexpectedly declined.
USD/JPY gained 19 points to trade at 102.03 as traders showed disappointment in Prime Minister Abe’s revised “Arrow Three” plans. Traders also are keeping an eye on escalating violence in Iraq as the US prepares for a meeting with Iran. Prime Minister Shinzo Abe’s team on Monday unveiled more policies aimed at cheering companies and investors, including a plan to reduce corporate taxes, with the aim of raising share prices at home.
Gold continued to ease throughout the day giving up $10.50 to trade at 1264.80. Gold price fell further from a three-week high as investors withdrew money from the top bullion fund at the fastest pace in two months and as markets nervously waited for a Federal Reserve meeting this week.

Fundamentals analysis 23 July
EUR/USD surrendered 40 focuses today to exchange at 1.3484 as the US dollar profited from the place of refuge disposition of the business sectors on any expectations of a stronger recuperation in the US while Eurozone viewpoints get to be troubling as issues mounted in the Ukraine. Indeed with the European Central Bank's remarkable simple approach including the as of late uncovered extraordinary negative store rates, close zero premium rates and a new adjust of ease advances to pump up loaning the saving money framework is delicate.
GBP/USD eased as traders moved to the US dollar for safety giving up 9 points to trade at 1.7068. The dollar index rose to a six-week high on Tuesday, buoyed by its gains against the euro as speculators bet on a robust inflation reading in the United States
AUD/USD gained 12 points this morning as global tensions eased a bit in the morning. The Aussie is trading at 0.9386. Reserve Bank of Australia (RBA) Governor Glenn Stevens said quantitative easing had clearly worked to lower borrowing costs across the globe, but it was not clear that this had led to much higher business investment.
USD/JPY gained 7 points to trade at 101.47 as global tensions eased a bit. Japan is unlikely to meet its international commitment to achieve a government budget surplus by fiscal 2020, even if it proceeds with another consumption tax increase, sources said Saturday. New U.S. dollar-denominated funds sold to Japanese retail investors have attracted 39% of almost ¥1 trillion, or $9.7 billion, of inflows from May 2013 to June this year, reports Ben McLannahan for Financial Times.
Gold reacted in the reverse of expectations falling 7.00 to trade at 1306.90 as traders moved into the US dollar as the alternative for safety. Prices gained around 0.1 percent and rose above $1,300 an ounce on Monday as U.S. equities slipped and political tensions intensified after the shooting down of a passenger plane in eastern Ukraine last week and incessant fighting in Gaza. Bullion rebounded after last week’s two-percent drop, as investors took profits after Thursday’s strong rally when a Malaysian airliner over Ukraine was shot down and Israel launched a massive ground offensive into Gaza against Hamas militants.

Forex Daily Analysis - 28 July 2014

EUR/USD tumbled 13 focuses after German business information baffled dealers. The euro is exchanging at 1.3450 and keeps on decliing. German business estimation tumbled to its most reduced level in nine months in July in a sign that organizations in Europe's biggest economy are agonized over the emergencies in Ukraine, Iraq and Gaza. The Munich-based Ifo research organization's business atmosphere list, directed from July 4 to 24 and focused around a month to month study of exactly 7,000 organizations, tumbled to 108.0 from 109.7 as geopolitical pressures weighed on certainty.
GBP/USD is slightly in the red against the strong US dollar. The GBP is trading at 1.6984 on continued weakness after a miss in yesterday’s data and today GDP met expectations, but did not support the currency after the BoE made it clear that it was not going to raise interest rates any time soon.
AUD/USD is flat this morning at 0.9395 with almost no volume. The markets seem spooked as traders are just uninterested in making commitments. The AUD remains in a strong range but below last week when its momentum seemed to be pushing it towards the 95 price level. In Australia, no major economic data is scheduled. In the US, the pending home sales index, the “flash” services index and Dallas Federal Reserve index are all released.
USD/JPY is trading at 101.80 down 4 points as the yen gains a bit of momentum on safe haven trades as most market focus remains on the Ukraine, Gaza, Iraq and Libya. World violence and turmoil are keeping most traders out of the markets today. Israel renewed its operations in the Gaza Strip yesterday after a brief cease-fire called by the United Nations for humanitarian reasons ended as militants in the Hamas-controlled territory launched more rockets and mortars.
Gold recovered $2 as traders took advantage of depressed prices to buy up the commodity while the US dollar soared above the 81 price level. German business sentiment fell to its lowest level in nine months in July in a sign that firms in Europe’s largest economy are worried about the crises in Ukraine, Iraq and Gaza.

Forex Daily Analysis - 30 July 2014

EUR/USD is flat moving between small gains and losses with a complete lack of momentum with low volumes. The euro is trading at 1.3440. The Federal Open Market Committee (FOMC) is also meeting in Washington today and tomorrow, with a further round of tapering expected. US jobs numbers, starting with the ADP non-farm employment change, will also start flowing out tomorrow.
GBP/USD is flat to a bit down in today’s session with no economic data although a speech by MPC member Broadhurst supported the BoE in holding off on interest rate increases for a while. The pound is trading at 1.6982. Data on Friday showed UK gross domestic product expanded by 0.8 per cent in the April-June period, the same strong pace as in the first three months of the year
AUD/USD eased by 3 points against a stronger US dollar to trade at 0.9381. The Aussie is trading in a tight range as the market waits for a clearer picture on the state of the US economic recovery. US gross domestic product data for the June quarter will be released on Wednesday night, Australian time, and US Federal Reserve finishes its two-day policy meeting early on Thursday morning.
USD/JPY climbed above the 102 level and gained a bit more momentum today after a disappointing Japanese industrial production report. The pair is trading at 102.14. The June industrial output fell at the fastest rate since the tsunami in March 2011 as companies slowed production to offset a build-up in inventories, official data showed on Wednesday, clouding the outlook for the economy.
Gold gained $5.80 but with little real conviction or direction as traders begin to position themselves ahead of the FOMC meeting beginning soon. Gold is trading at 1311.60. Gold was little changed just above $1, supported by geopolitical tensions in the Middle East and Ukraine. Investors also focused on US jobs data and a Federal Reserve policy meeting this week.

Fundamental Analysis August 6
EUR/USD maneuvered by 34 focuses as dealers start to concentrate on developing financial and saving money issues in the eurozone. The euro tumbled to 1.3388 in front of Thursday's ECB meeting. Later in the day, the spotlight movements to ISM Non-Manufacturing Composite gage. Economists recommend the discharge will reveal to US benefit part development quickened to the speediest pace in 11 months in July.
GBP/USD rallied after a strong Services PMI print beat expectations pushing the pound to 1.6868 up by 7 points. The British currency strengthened against the other key counterparts in the early European session on Tuesday after data showed that U.K. services PMI rose more-than-expected in July.
AUD/USD fell below the 93 price level as the US dollar gained momentum this morning. The AUD gave up 5 points to trade at 0.9299. The Australian dollar is lower after US stocks lost almost one per cent on concerns that the conflict in Ukraine could worsen. Polish Foreign Minister Radoslaw Sikorski told reporters overnight that Russia had increased its military presence on the Ukraine border, suggesting a possible escalation in the conflict.
USD/JPY eased by 7 points as the JPY continued to gather momentum on safe haven trades after Russia moved troops closer to the Ukraine border and President Putin threatened sanctions against the West. Geopolitical tensions continue to raise sending traders to risk off mode.
Gold was a surprise and gained today adding $3.60 to trade at 1292.50 after the US dollar picked up momentum to climb to trade at 81.54 and silver fell. Gold held steady below $1,300 an ounce on Tuesday, although a strong dollar and the first outflow in more than a week from the world’s top bullion fund weighed on sentiment.

Fundamental Analysis August 7
EUR/USD kept on decliing exchanging at 1.3369 after German production line requests missed desires. The euro slipped to a nine-month low on Wednesday, broadening its misfortunes after information demonstrated a sharp drop in German mechanical requests, while the New Zealand dollar took a hit after a fall in dairy costs. A Singapore-based dealer said financial specialist hazard revultion on worries about the strains in Ukraine served to reinforce the dollar extensively, and weighed on the euro.
GBP/USD eased 44 points to trade at 1.6842 after industrial and manufacturing production missed expectations following a drop in PMI last week. Businesses and taking on more staff, but a strong sterling is hurting exports. The Confederation of British Industry (CBI), the UK’s largest business lobbyist, said in its monthly SME manufacturing survey for July that 31% of firms reported output increasing, while 16% said that it decreased, giving a balance of +15%.
AUD/USD took a major fall after the release of unemployment numbers this morning tumbling to 0.9285 down 69 points when just last month traders were hoping to see the currency break 95. The unemployment rate has surged to a 12-year high in July as the number of Australians in jobs went backwards, adding to political pressure on the government.
USD/JPY tumbled on Wednesday to trade at 102.12 and recovered 7 points this morning to reach 102.19 after the greenback lost a bit of its momentum. US data remained positive with the trade balance narrowing well below forecasts as exports skyrocketed again this month. The Bank of Japan (BoJ) looks set to bring no major surprises at its policy meeting this week, but the market will be keeping an ear out for any changes in Governor Haruhiko Kuroda’s optimistic stance on the economy.
Gold was steady after climbing in the Asian session adding $6.50 to trade at 1291.80. Gold edged up slightly and could benefit from a bout of market risk aversion as fears of increasing military action along the Ukraine border put global equities under pressure. Geopolitical tensions in Ukraine and the Middle East have largely been responsible for gold’s 7 percent gain this year. Gold, often seen as alternative investment to riskier assets such as equities, could gain if stocks fall further.

Fundamental Analysis August 8
EUR/USD moved by 3 focuses in front of today's ECB declaration. The national bank is relied upon to hold rates and approach. The firecrackers will come amid Mr. Draghi's question and answer session late in the exchanging day. ECB authorities have said quantitative maneuvering is a choice, however remarks by the bank's German unexpected propose the bar may be high.
GBP/USD is holding at 1.6844 ahead of the BoE announcement. Policy makers will keep their asset-purchase target at 375 billion pounds, and the benchmark interest rate has been at 0.5 percent since March 2009. “As the economy normalizes, Bank Rate will need to start to rise in order to achieve the inflation target,” Carney said in a speech in Glasgow, Scotland, on July 23. “But the MPC has no pre-set course and the timing of any increases in interest rates will be determined by the data.”
AUD/USD tumbled to trade at 0.9256 while the US dollar held strong, after President Obama announced airstrikes in Iraq surprising the world. There was little reaction to the Chinese trade balance which printed in the green at 47.30 billion against expectations of 27.00 billion, although imports tumbled leaving questions about the Chinese recovery.
USD/JPY gave up 29 points this morning to trade at 101.80 as the yen surged on safe haven buying after the Americans announced an air offensive against ISIS in Iraq. President Barack Obama authorizes the U.S. military to conduct airstrikes against Islamist forces as needed but says the nation would not send new ground troops there.
Gold gave back some of yesterday’s gains to trade at 1305.40. Gold held on to overnight gains above $1,300 on Thursday, trading near its highest in more than a week as fears of Russian military action against Ukraine and retaliation by Moscow over Western sanctions burnished gold’s appeal as a safe haven.

Forex Daily Analysis - 11 Aug 2014
EUR/USD recouped and included 27 focuses today, as German exchange offset numbers missed desires yet sends out for surpassed imports helping giving a superior take a gander at the report. The US dollar pushed higher against the euro and the pound on Thursday after the European Central Bank and the Bank of England left their financial stances unaltered in strategy surveys.
GBP/USD eased by 23 points to trade at 1.6809 and looks to break into the 1.67 range but the US dollar continued to weaken as traders worry about the US entering the war in Iraq after President Obama approved air strikes against ISIS. The pound was weighed down by disappointing trade balance numbers along with worries about Scotland leaving the United Kingdom
AUD/USD gained 6 points to trade at 0.9282 against a strong dollar. Traders this morning are correcting an overreaction late last week when the Aussie tumbled on global stress and a mixed up Chinese trade balance print. Positive data from China over the weekend helped support the currency.
USD/JPY gained 12 points as the yen declined after lackluster data and a dovish BoJ monthly report. The pair moved to trade at 102.16. The Bank of Japan on Friday maintained record stimulus after recent production and export data highlighted weakness that could challenge Governor Haruhiko Kuroda’s push to stoke faster inflation.
Gold is holding on to early morning gains trading at 1318.50 as geopolitical tensions are the only market focus after President Obama approved air strikes in Iraq and war returned to Gaza. Spot gold prices rose this morning on increasing safe haven bids and gained more than half a percent amid rising tensions in Iraq and Ukraine. Prices turned positive on reports that U.S. President Barack Obama approved air strikes and emergency relief airdrops to help 40,000 religious minorities in Iraq, who are trapped on a mountaintop after threats by Islamic militants.

Forex Daily Analysis - 13 Aug 2014
EUR/USD given way today after German information hit the ropes. The euro tumbled to exchange at a 9 month low, falling 45 focuses to exchange at 1.3338. The euro slid Tuesday after a droop in German monetary notion further powered stresses that the financial standoff with Russia over the clash in Ukraine is harming Europe's economy.german government obligation turned higher, while German shares falled behind a pickup in most local value markets.
GBP/USD eased by 8 points on the prospect of a disappointing UK jobs data to trade at 1.6778. BoE Governor Mark Carney will address the press after the inflation report, which is also going to be crucial for sterling. What follows is another important event – the second quarter GDP data, due on Friday. The UK claimant count is forecast to have dropped by 30,000 in July compared to the 36,300 drop recorded in June. Forecasters see the ILO unemployment rate for the three months to June at 6.4%, down from 6.5% in May.
AUD/USD eased by 3 points against the dollar rally. Strong data from Oz helped fight off the climbing US dollar. Australian house prices beat expectations along with the NAB business survey. The Australian dollar has stabilized following dramatic moves last week when the currency fell to two-month lows on the back of weaker-than-expected data and economic growth forecasts from the central bank.
USD/JPY climbed 13 points as traders moved away from safe haven trades leaving the JPY weak after a rash of disappointing economic data yesterday and last week as traders wait for the release on industrial production numbers. The US dollar surged 10 points in the morning session climbing to 81.61. On Monday, the US dollar rallied against the yen and euro after the unit plunged in the wake of last week’s announcement that Washington had authorized air strikes in Iraq.
Gold is moving between small gains and losses trading at 1311.60 but hugging the $1310 price level all day as geopolitical risks kept markets watchful. In Iraq, a new political crisis was brewing just days after Washington launched its first military action against insurgents from the Islamic State.

Forex Daily Analysis - 14 Aug 2014
GBP/USD tumbled 103 focuses after remarks from Bank of England Governor to exchange at 1.6708 in the wake of hopping on better than anticipated employments information. The pound tumbled to a two-month low versus the dollar as merchants pushed back their desires for premium rate expands after the Bank of England cut its estimate for pay development. The British pound spiked quickly before tumbling.
AUD/USD added 13 points to trade at 0.9281 after a significant jump in consumer confidence. Weak economic data and a downbeat central bank statement dampened sentiment towards the Australian dollar recently, but one analyst told CNBC investors shouldn’t give up faith. The currency fell 2.6 percent from its July 1 year-to-date high of $0.9504 against the U.S. dollar to a two-month low of around $0.9236 last week amid rising unemployment and a weaker growth outlook.
USD/JPY gained 4 points to trade at 102.30 after Japanese GDP missed expectations. Gross domestic product shrunk by an annualized 6.8% in the three months ended June, Japan’s Cabinet Office said Wednesday. The result was actually better than the 7% contraction expected by economists. Government officials were more sanguine about Wednesday’s data. Economy Minister Akira Amari said the figure didn’t change the government’s outlook that the economy continues to improve steadily. He said the government would respond flexibly on the economy but added that he didn’t currently see a need to compile an additional budget.
Gold was directionless today, remaining flat in the Asian session and moving between small gains and losses during European trading to sell for 1310.20. The Federal Reserve is cutting debt purchases and contemplating interest-rate increases as the economy strengthens. The dollar was near a nine-month high versus the euro after data showed yesterday German investor confidence slumped and before a report today that may show U.S. retail sales increased for a sixth month.

Fundamental Analysis August 15
EUR/USD recuperated 27 focuses to exchange at 1.3391 after a large number of blended information and a confounded ECB month to month report. The dollar gave back increases the greater part of the morning to trade at 81.53. Euro zone swelling will be weaker than long ago expected in the not so distant future and next, an overhauled review for the European Central Bank showed today, obscuring the euro zone's monetary standpoint.
GBP/USD is flat today holding at 1.6691 after disappointing inflation information and comments from the central bank on Wednesday. The BoE lowered its growth estimate for U.K. wages to 1.25% for the year, down from 2.5%, or half of the previous estimate; 2015 wage growth estimates were also revised downward.
AUD/USD eased by 8 points to trade at 0.9298 after iron ore prices tumbled to their weakest this month weighing on the Aussie. Earlier in June, the iron ore price dropped to as low as $US89 a ton, but despite a minor rebound since then year-to-date falls are still over 30 per cent. The latest downward move comes amid continued oversupply in the market due to increased supply from heavyweights like BHP Billiton and Rio Tinto and softer demand from China.
USD/JPY continued to rise as the US dollar gained momentum as traders overlooked weak US data but focused on a significant drop in Japanese GDP. The USDJPY is trading at 102.60 up by 17 points this morning. The Japanese Yen traded on a negative note and depreciated around 0.2 percent yesterday on the back of expectation that global policy makers will keep borrowing costs low for longer, damping demand for haven assets. The Yen touched an intra-day low of 102.36.Japan’s Core Machinery Orders gained 8.8 percent in June as against a fall of 19.5 percent in June.
Gold is moving between small gains and losses holding at 1315.80. Gold consumption fell by an annualized 16 percent in the second quarter of 2014 as Chinese and Indian buyers cut back on record purchases a year earlier, sector data showed.

Fundamental Analysis August 22
EUR/USD gained 8 points as traders breathed a sigh of relief when PMI numbers were not as bad as expected. The US dollar gave back some early gains but remains strong at 82.29. Data from Germany eased pressure on the struggling euro today after speculation of an earlier rate rise from the Federal Reserve had pushed the dollar to an 11-month high. Share markets had been feeling flat following a disappointing survey on Chinese manufacturing overnight but they too got a lift from the news that Germany’s private sector grew for a 16th month running in August.
GBP/USD is trading at 1.6588 down just 6 points after a strong retail sales release. The pound, down more than six cents in the past month, had gained a foothold on Wednesday after minutes from the Bank of England’s own last policy meeting showed the first dissenting votes on its policy committee for a rise in interest rates. But a similarly hawkish message from the Fed sent the dollar higher across the board after UK markets closed, driving the pound to less than $1.66 for the first time since early April.
AUD/USD lost 6 points to trade below 93 touching 0.9296 after a speech from RBA Governor Stevens. In Australia, the Reserve Bank Governor gave testimony to the House of Representatives Economics committee. In the US, weekly mortgage finance data is released with the minutes of the last Federal Reserve meeting.
Gold tumbled $13.60 to trade at 1281.60 as traders moved to more profitable assets. Gold extended losses to a fifth session on Thursday, dropping to a two-week low after the US dollar strengthened on indications from the US Federal Reserve that it could raise interest rates sooner than expected. A surprisingly strong recovery in the US job market could lead the Fed to raise interest rates earlier than it had been anticipating, minutes from the Fed’s July meeting showed, although most officials wanted further evidence before changing their view.

Daily Fundamental News from FxNet June 2

After two weeks of gains the U.S. dollar reached its 12 and a half year high against the Japanese yen over the weekend, almost touching 125.00 yen a number it has not touched since 2002.

On Tuesday the USD/JPY pair added 0.08 percent and traded at 124.88.

Elsewhere the U.S. dollar was stronger than the Australian dollar which lost 76 U.S. cents for the first time in seven weeks. The Australian dollar remained at 0.7630 dollars ahead of the Reserve Bank of Australia (RBA) interest rate decision.

Overnight the Euro faltered against the strengthening dollar, and reached the low of 1.0886. Tuesday morning the Euro edged slightly higher with the EUR/USD pair adding 0.21 percent and trading at 1.0948.

The Euro despite its struggle with the ongoing Greece situation also rose against the Japanese yen with the EUR/JPY pair reaching a two week high of 136.62.

Expectations that the Organization of the Petroleum Exporting Countries (OPEC) would not cut output dampened oil prices. The Organization is set for a meeting on Friday to decide on a production strategy and whether it will cut back. Expectations are that it won’t.

Brent crude for July lost 0.57 cents on the Intercontinental Exchange (ICE) and was at 64.99 dollars a barrel.
Brent crude fell back to 64.85 dollars a barrel.

Gold futures for August on the Comex of the New York Mercantile Exchange added 0.04 percent to 1,189.20 dollars a troy ounce.
Silver for July delivery added 0.03 percent to 16.737 dollars a troy ounce.

Copper for July delivery added 0.11 percent to 2.717 dollars a pound.

DOLLAR REBOUNDS AGAINST JAPANESE YEN

The Japanese Yen rose against its U.S. counterpart on Wednesday following comments by Bank of Japan (BOJ) Governor Haruhiko Kuroda saying the yen is not likely to get weaker. By Thursday the U.S. dollar rebound against the yen.
The USD/JPY pair added 0.46 percent and reached 123.19.
The U.S. dollar had lost 1.3 percent on Wednesday, its biggest one day fall in six months. Investors supported the Yen after Kuroda spoke of how the yen’s current weakness means it will likely not fall any further.
The dollar also rose against the Euro with the EUR/USD pair falling to 1.1305.
The Euro enjoyed small gains on Wednesday as an agreement between Greece and its lenders was reported to be close, with EU Economic affairs commissioner Pierre Moscovici saying “I really like Greek tragedy but now we must move to a happy ending”. German Chancellor Angela Merkel was reported to be offering Greece a more lenient deal if they accepted specific reforms.
The AUD/USD added 0.21 percent on Thursday and reached 0.7793 as the Aussie was supported by positive data release.
The U.S. dollar index which measures the currency against 6 other major currencies added 0.22 percent and was at 94.79.