Online Currency Trading

Strong Euro Should Deter ECB Rate Hike Next Week

The US dollar extended yesterday's losses as Asian and London traders joined the markets overnight and repositioned themselves on the back of the less hawkish Fed comments. We had said in the last daily fundamentals that the current dollar weakness against the Euro could aim for the previous 1.2975 high in the EUR/USD and 109 low in USD/JPY. We are now over 100 points closer to those levels than yesterday with little standing in the way. The US economic data released this morning was so conflicting that it had little impact on the actual price action of the US dollar and it only further validated the Fed's shift to becoming more data dependent. Personal income came in stronger than expected, rising 0.4 percent with an upward revision the prior month. Spending along with the core PCE deflators were right in line with expectations but the lack of any upside surprises in those reports was seen as more disappointing than neutral.

FOREX-Dollar recovers from 3-week low vs yen

TOKYO, July 3 (Reuters) - The dollar recovered from a three-week low against the yen on Monday after the Japanese currency was unable to sustain a rally triggered by an upbeat survey of corporate sentiment.

The yen initially rose after the Bank of Japan's quarterly tankan poll for June produced a headline diffusion index of plus 21, a tad lower than forecasts but up from plus 20 in March and helping to pave the way for the BOJ to possibly raise interest rates from zero next week.

But the yen's gains were short lived due to dollar buying by Japanese importers and mutual funds, whose demand for the U.S. currency underlines interest among investors in higher-yielding currencies even as domestic rates look set to rise.

"People had sold dollars going into the figure, and the reaction after the data was quite small," said Luke Waddington, head of forex trading at Royal Bank of Scotland.

Market report: Brokers rediscover strong thirst for once ailing SAB Miller

SAB Miller enjoyed a much-needed boost, provided by two brokers publishing bullish notes on the brewer. The shares recovered 11 to 934p.

Bank of Japan chief apologizes for scandal

Tokyo, June 20: Japan's central bank chief apologized Tuesday for an investment scandal that has set off calls for his resignation, and said the bank has set up a committee to review rules for its officials' assets.

Gov. Toshihiko Fukui also said he would not step down and wanted to complete his job. His term runs through March 2008.

"I am very, very sorry. I deeply apologize to the people," Fukui said at a news conference. "The Bank of Japan's compliance rules have been widely criticized. This must be taken seriously."

Fukui has come under fire since stating last week that he had invested 10 million yen, or about $86,000, seven years ago in a fund managed by Yoshiaki Murakami, who was arrested June 5 on suspicion of insider trading.

The incident has raised questions about the ethic standards for Japan's financial officials and comes at delicate time when the central bank is about to start raising interest rates amid signs of a long-awaited economic recovery here.

Dollar falls further after Fed signals rate pause

TOKYO (Reuters) - The dollar hit a three-week low against the euro on Friday, extending losses after the Federal Reserve gave the clearest signal yet it may soon take a break from a two-year campaign of nonstop interest rate increases.

The Fed said slowing economic growth should help rein in inflation after it lifted overnight rates for a 17th straight time to 5.25 percent, as widely expected.

Building expectations that the Fed could raise rates to 5.5 percent in August had driven the dollar to two-month highs against major currencies in the past week.

"People have got caught long on dollars at very wrong levels," said Luke Waddington, head of forex trading at Royal Bank of Scotland in Tokyo.

"We're trading on interest rates," he added.

World oil prices set new records beyond 75 dollars

A trader in the crude oil futures pit yells out during trading at the New York Mercantile Exchange in New York. Crude oil prices hit all-time highs above 75 dollars per barrel in London and New York on signs of strong global demand and simmering geopolitical tensions, particularly over Iran and North Korea, analysts said. .