USD buying sees USDJPY back up towards 89.20

Mon, Sep 28 2009, 01:43 GMT
http://www.forexlive.com

Bargain hunters, profit takers and Importer bids has seen USDJPY trade back up towards 89.20. There are sellers here, looking to re-establish shorts for another look lower. If we can get above 89.30 convincingly then its back up to 89.70 we go.

Sterling keeps printing lower lows

Mon, Sep 28 2009, 02:02 GMT
http://www.fxstreet.com

FXstreet.com (Buenos Aires) – GBP/USD Current Price: 1.5820. Pair keeps printing lower lows in the hourly charts, accelerating the fall with the risk aversion dollar rally triggered by local shares. Rally seems over extended both in 1 and 4 hours charts, yet no signs of reversal or upside corrections yet.

“Break under 1.5800 level, will find next supports at 1.5754, past May 22th daily low, followed by the 1.5710 area,” said Valeria Bednarik, collaborator at FXstreet.com.

Support levels: 1.5800 1.5754 1.5710. Resistance levels: 1.5860 1.5920 1.5990.

Yen continues strengthen across the board

Mon, Sep 28 2009, 02:14 GMT
http://www.fxstreet.com

FXstreet.com (Buenos Aires) – USD/JPY Current Price: 89.00. With Japan Minister of Finance blessing, yen continues strengthen across the board, reaching extreme hourly readings at the 88.20 level, and rebounding to current 89.00 zone, still bearish in bigger time frames.

20 SMA above current price, in both 1 and 4 hours charts, suggest trend remains strong, yet 4 hours indicators approach to extreme readings. “Watch for the pair to regain the 89.60 level to extend upside corrections to the 90.00 area,” said Valeria Bednarik, collaborator at FXstreet.com.

Support levels: 88.60 88.20 87.90. Resistance levels: 89.30 89.60 89.00.

ASIA MARKETS: Japan Exporter Shares Skid As Yen Surges

Mon, Sep 28 2009, 03:21 GMT
http://www.djnewswires.com/eu

ASIA MARKETS: Japan Exporter Shares Skid As Yen Surges

By V. Phani Kumar

Japanese exporters plunged Monday as the yen jumped to an eight-month high against the U.S. dollar, sparking fresh fears that repatriated earnings of automobile and electronics companies could take a hit.

The yen's latest rally came after Japanese finance minister reiterated the government's continued unwillingness to intervene in the currency market.

In early Asian trading, the U.S. dollar fell as low as 88.23 yen, a level it hasn't seen since January 21, according to FactSet Research data. The dollar hit a 13-year low of 87.10 yen that month, according to EBS. More recently, the dollar was buying 89.08 yen, down from 89.61 yen in late New York trading Friday.

The yen also soared against other currencies, with the euro recently changing hands at 129.96 yen, down from 131.70 yen late Friday. The British pound slumped to 140.78 yen from 143.00 yen Friday, and the Australian dollar slid to 76.67 yen from 77.81 yen Friday.

Automakers were hurt the most Monday, with shares of Honda Motor Co. (HMC) slumping 5.3%, Nissan Motor Co. (NSANY) skidding 6.2% and Toyota Motor Corp. (TM) sliding 3.8%.

The steep fall in exporter shares reflected concerns that many of them, which had assumed an exchange rate of 90 yen to 95 yen against the U.S. dollar when they made their annual forecasts, might miss those targets as the stronger yen erodes the value of their overseas earnings.

But some analysts remained positive about automobile makers.

"While Japanese auto stocks have weakened since August, reflecting the impact of yen appreciation to [90 yen to a U.S. dollar], there is growing evidence of U.S.-led earnings recovery," Goldman Sachs analysts Kota Yuzawa and Yuichiro Isayama wrote in a report.

"We see improvement in both U.S. individual consumption and the sales financing environment, which has shackled sales," they wrote, adding that stronger-than-expected production volumes at Toyota were likely to drive analysts' consensus forecasts.

Among other exporters, shares of Nintendo Co. (NTDOY) dropped 3.4% and Toshiba Corp. fell 5.2%.

In wider Asian market action, Japan's Nikkei 225 Average dropped 2.4% to 10,023.99, China's Shanghai Composite rose 0.2%, Hong Kong's Hang Seng Index fell 1.1%, Australia's S&P/ASX 200 slid 1.3% and South Korea's Kospi shed 1.1%.

'Not abnormal'

Japanese Finance Minister Hirohisa Fujii said Monday that recent movements in the U.S. dollar/yen exchange rate are "not abnormal" at this point, suggesting he still isn't worried about the Japanese currency's rise, according to Dow Jones Newswires.

Fujii also reiterated that "foreign exchange dumping" to defend Japanese exporters would be the wrong policy for the government to take, and that artificially influencing foreign exchange rates would be "a mistake."

Analysts have attributed the yen's rally also to seasonal, end-of-quarter strength as exporters repatriated their overseas earnings.

Fuji reportedly made similar comments Friday, echoing comments he has consistently made since being appointed Finance Minister earlier this month in the new government of Prime Minister Yukio Hatoyama.

Despite Fujii's stated opposition to intervention, some analysts were skeptical the government can really afford to wait much longer to intervene if the yen's strength continued.

"In our opinion, even though Fujii has proven to be more supportive of a stronger than weaker yen, political pressure on the new government may force them to intervene prematurely," Kathy Lien, director for currency research, wrote in a note to clients.

Lien, however, cautioned selling in the dollar-yen pair could accelerate "if there are any disappointments in economic data next week."

Fujii's Friday comments "are probably an indication that he wouldn't intervene even if the dollar breaks below 90 yen," Eisuke Sakakibara, who served as vice finance minister for international affairs in 1997-1999, said in an interview with Dow Jones Newswires Friday.

Sakakibara was also quoted as saying that the finance minister would likely take fall below 80 yen as abnormal.

"These comments are about as clear a buy signal as is likely to be heard," said Societe Generale's Asia forex and rates strategist Patrick Bennett.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=qaPjW9BvV%2BVg1VIZNjeFbw%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

September 27, 2009 23:21 ET (03:21 GMT)

China confident it can overcome economic crisis

Mon, Sep 28 2009, 02:29 GMT
http://www.forexlive.com

Vice Chairman, Liu Tienan, of the NDRC, has said that they are confident that China can overcome the economic crisis but should guard against risks such as inflation. He also said there was an improvement in production in recent months.

Shanghai Composite turns negative, Nikkei trades under 10,000

The Shanghai Composite is trading in negative territory after opening up this morning, currently its down 0.3%, as weak Shanghai copper prices weigh on the Index. The move lower has accelerated the Nikkei's losses, now trading under 10,000, down 2.8% as a strong Yen contiues to hit shares of exporters.

Fujii says currency moves becoming one-sided, USDJPY edges higher, Fu

In his latest comments, Hirohisa Fujii said that currency moves were becoming one-sided in favour of a rising Yen, and that he was watching the Yen's rise carefully. He said he favours stable currency moves. Seems he has changed his tone a bit after such a big move. USDJPY has moved up thru 89.30.

Japan Fin Min Fujii: Desirable If Forex Rates Stable

Mon, Sep 28 2009, 05:14 GMT
http://www.djnewswires.com/eu

Japan Fin Min Fujii: Desirable If Forex Rates Stable

TOKYO -(Dow Jones)- Japanese Finance Minister Hirohisa Fujii Monday adjusted his pro-strong-yen comments from earlier in the day, saying the currency's recent rise is slightly "one-sided" and that it is desirable for foreign exchange rates to stay stable.

"The temporary movements (in the yen against the dollar) at present are a little one-sided," Fujii said at a seminar in Tokyo. "Prime Minister (Yukio) Hatoyama said in Pittsburgh that it's desirable if foreign exchange rates are stable, and I feel absolutely the same," he added.

Fujii also said that although he voiced opposition to nations devaluing their currencies to lift exports, he did not mean to signal support for a further rise in the yen.

Fujii's comments suggest that while he has little intention to intervene in markets to curb a strengthening yen, he doesn't want to unnecessarily fuel speculation and encourage dealers to push the currency higher to the detriment of Japan's export-led economy.

-By Takashi Nakamichi, Dow Jones Newswires; 813-6895-7558; takashi.nakamichi@dowjones.com

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(END) Dow Jones Newswires

September 28, 2009 01:14 ET (05:14 GMT)


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Asian Forex Wrap

Mon, Sep 28 2009, 04:32 GMT
http://www.forexlive.com

Merkel to form Center-Right Coalition. EURUSD trades up to 1.4720 on the back of the Merkel victory. RBA says downturn in Australia "mild", interest rates to move higher. Japan Finance Minister, Fujii, says recent FX moves normal. Accelerates USDJPY sell off. NDRC: Confident China can overcome economic crisis. Nikkei smashed down thru 10,000. Gold lower at 988.50. Fujii Backtracks, says currency moves becoming one sided in favour of a rising Yen. Prefers stable currency moves. USDJPY pops up above 89.30 on the comments. Probably the busiest days so far in USDJPY seen in Asia. It was a wild and volatile day which started with the EURUSD taking out stops above 1.4700 for a run to 1.4720 on the back of the Merkel win, only to end up over 100 points lower soon after. USDJPY started steadily but with comments from the new Japanese government implying that they will not intervene in the FX market, the sell off was soon under way. It fell away thru the much talked about bids at 89.50 like a knife thru butter. Stops were hit all the way down before eventually pulling up at 88.20. Support came via importer bids and profit takers which saw USDJPY rebound back above 89.00 and continue higher with backtracking comments from Fujii saying that the FX moves were one sided in favour of arising Yen. Yen crosses also suffered, GBPJPY the most volatile, falling from 143.15 to 139.70 at one stage, before recovering to above 141.40. EURJPY followed the USDJPY lower trading under 130.00, but found support from importer bids into the Tokyo fix, helping it recover back above 130.50 in the afternoon. It found no support via the EURUSD though, it collapsing down thru Sovereign bids at 1.4620 and taking out stops under 1.4600 and 1.4580. Notable sellers towards 9300 in EURGBP also added to its fall. AUDUSD found some early morning resilience via hawkish RBA comments but was no match for the sell off in AUDJPY, pushing the AUD back below 86c, in what turned out to be a 100 pip range trading day. Ranges: EURUSD 1.4559 - 1.4720 GBPUSD 1.5768 - 1.5972 USDJPY 88.22 - 89.65 EURJPY 129.80 - 131.81 AUDUSD 8582 - 8682 Goodluck, Sam

GLOBAL MARKETS: European Stocks Seen Lower On Earns Concerns

Mon, Sep 28 2009, 06:26 GMT
http://www.djnewswires.com/eu

GLOBAL MARKETS: European Stocks Seen Lower On Earns Concerns

  By Ishaq Siddiqi
  Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--European stock markets are expected to open on a weaker note Monday, weighed down by negative sessions on U.S. markets Friday and Asia earlier Monday, as concerns mount over the quality of upcoming third quarter corporate earnings.

Following the disappointment from Blackberry maker Research in Motion, there’s a growing feeling among analysts that the next set of results out of corporate America won’t be as rosy as the previous quarter, said Ben Potter, research analyst at IG Markets.

"Globally, the momentum generated from second quarter earnings is fast abating with investors concerns growing by the day as to whether or not this market has got ahead of itself. Gone are the days of rising on ‘less bad’ economic releases. The market is desperately searching for the next catalyst to take us higher and at the moment, no one seems to know where it might come from," he said.

Potter expected London's FTSE 100 index to open 15 points lower at 5067, Frankfurt's DAX index off 11 points at 5570, and the CAC-40 index in Paris 21 points lower at 3718.

Still, as the week progresses, "we have the final U.K. GDP figure for 2Q tomorrow (at 0830 GMT) and the U.S. non farm payrolls on Friday (at 1230 GMT) as just a couple of the higher profile numbers due, so although the short term may end up being focused on consolidation, there’s certainly scope for another break out in the coming days," Potter added.

Earlier Monday, Asian stock markets were sharply lower, tracking Wall Street's weak showing on Friday. Tokyo stocks were leading the losers, hurt by the Japanese yen's continued strength against the dollar.

"Concern over the yen’s recent appreciation and how this will impact profits in Japan is weighing heavily across the continent and with the month-end nearing, the potential for traders to keep taking money off the table amidst this current uncertainty cannot be overlooked," said Potter.

Japan's Nikkei 225 index closed 2.5% lower at 9994.66, below the key 10,000 mark for the first time since July. South Korea's Kospi Composite was down 0.8%, and Hong Kong's Hang Seng Index was down 1.6%.

On Wall Street Friday, a prevailing concern that the nearly six-month surge in stocks may have overextended the current economic environment forced some of the best-performing companies of the third quarter, including Caterpillar and American Express, to the downside Friday, while Research In Motion paced technology companies into the red.

Overall, the Dow Jones Industrial Average slipped 0.4% to 9665.19, marking its fourth decline in five sessions. The index lost 155.01 points, or 1.6%, this week, snapping a two-week winning streak. For September, the DJIA remains up 1.8%. The Standard & Poor's 500 lost 0.6% to 1044.38, on Friday, closing out the week down 23.92, or 2.2%.

In the currency markets, the spotlight was on the rising Japanese yen. At 0620 GMT, the dollar was buying Y89.36, down from Y89.76 late in New York trade on Friday. The dollar hit Y88.23 earlier, an eight-month low, with the yen bolstered by increased risk aversion as well as exporters' yen purchases for settling accounts before the end of the third quarter.

Japanese Finance Minister Hirohisa Fujii told reporters early Monday that he had no comment on the current level of the yen against the dollar, but the yen's recent strengthening trend was "not abnormal." He added that it was a mistake to use "foreign exchange dumping" to defend industry.

Royal Bank of Scotland said in a note that "investors may try to push the dollar below the year's low of Y87.10 in the early stage of this week. But still, we don't think the Japanese government will step into the market to curb the yen's rise."

The euro was also hit by increased risk aversion, and touched a two-month low against the yen of Y129.84. It was last at Y130.58 from Y131.72 in late New York trade on Friday. The euro was at $1.4613, from $1.4672.

Meanwhile, the sterling continued its recent selloff against the greenback. At 0620 GMT, sterling stood at $1.5844, compared with $1.5932 on Friday.

Elsewhere, spot gold traded at $989.55 per troy ounce, down over $4 from the New York close, while Nymex light, sweet crude contract for November delivery was 36 cents lower on Globex, at $65.66 per barrel.

European government bonds have opened strongly Monday, boosted by the weak tone on the equity markets. At 0625 GMT, the December bund contract stood at 121.73, 0.25 higher.

-By Ishaq Siddiqi, Dow Jones Newswires; +44-20-7842-9488; ishaq.siddiqi@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=T8ZKY07wPDWtrJ1DMHaoMw%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

September 28, 2009 02:26 ET (06:26 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Asian stocks fall on earns concerns, Yen continues with its strengthening

Mon, Sep 28 2009, 07:00 GMT
http://www.fxstreet.com

FXstreet.com (Barcelona) – Asian stocks markets have started today's session following the weak note posted by Wall Street last Friday on the back of concerns on earnings and yen strengthening. European markets seem to continue with the red numbers. USD/JPY fell to 8-month low.

Nikkei 225 collapses 2.50% today to trade just above 10,000 points level. Hang Seng index drops 1.66% so far today, S&P 500 posts 0.75% declines, MSCI Asia Apex 50 decreases 1.75%.

Asian stocks, as well as European markets, are concerning on earnings on the back of the Yen strengthening and the Japanese finance minister blessing the recent appreciation

Yen has continue today with its strengthening against the Dollar with the pair losing 0.35% on the day from opening price at 89.63 to the current 89.30, and collapsing around 335 pips from last Thursday high at 91.60 to 8-month low at 88.22.

EUR/USD is falling 0.90% from opening price action at 1.4704 to the current 1.4610/20 after posting 1.4560 as 2-week low. GBP/USD is trading at 4-month lows close to 1.5800, 0.90% below todqay's opening price action at 1.5966.

EUR/JPY trades 0.75% lower than 131.76 opening price to the current 130.80. GBP/JPY declines 1.00% from opening at 143.10 to the 141.50 zone.

DATA SNAP: Hungary Jun-Aug Jobless Rate At 13-Year High

Mon, Sep 28 2009, 07:00 GMT
http://www.djnewswires.com/eu

DATA SNAP: Hungary Jun-Aug Jobless Rate At 13-Year High

  By Veronika Gulyas
  Of DOW JONES NEWSWIRES

BUDAPEST (Dow Jones)--Hungary's average unemployment rate in June-August again hit a 13-year high, meeting analysts' expectations, as a result of the deep economic downturn, data published Monday showed.

The three-month moving-average rate of unemployment rose in June-August to 9.9%, from 9.7% in May-July and from 7.5% in the corresponding period a year earlier, the Central Statistics Office, or KSH, said.

The data met the forecast of three analysts polled by Dow Jones Newswires for 9.9%.

Unemployment hit a 13-year high of 9.9% in the February-April period.

Statistics office Web site: www.ksh.hu

-By Veronika Gulyas, Dow Jones Newswires; +361-267-0623; veronika.gulyas@dowjones.com

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September 28, 2009 03:00 ET (07:00 GMT)


Copyright 2009 Dow Jones & Company, Inc.

DATA SNAP:Italy Sep Consumer Confidence Highest Since Dec 06

DATA SNAP:Italy Sep Consumer Confidence Highest Since Dec 06

  By Luca Di Leo and Chiara Vasarri
  Of DOW JONES NEWSWIRES

ROME (Dow Jones)--Italian consumer confidence rose unexpectedly in September to its highest level in nearly three years on households' optimism over the economy and their own personal situation, data showed Monday.

State-funded research center ISAE said its seasonally-adjusted consumer confidence index for Europe's fourth-largest economy jumped to 113.6 in September from 111.8 in August.

The 113.6 reading was well above the 111.4 forecast by eight economists polled by Dow Jones Newswires. Consumer confidence has been rising since March, when the index hit a low of 99.8.

  Web site: www.isae.it

-By Luca Di Leo and Chiara Vasarri, Dow Jones Newswires; 39 06 69766925; luca.dileo@dowjones.com

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September 28, 2009 03:39 ET (07:39 GMT)


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UK Mandelson: Economy Has Relied Too Much On Financial Services

Mon, Sep 28 2009, 07:48 GMT
http://www.djnewswires.com/eu

UK Mandelson: Economy Has Relied Too Much On Financial Services

LONDON -(Dow Jones)- The U.K. economy has relied too heavily on financial services and failed to develop alternative generators of rapid growth, Secretary of State for Business, Innovation and Skills Peter Mandelson said Monday.

Mandelson was speaking to the BBC during the annual conference of the ruling Labour Party, which is set to sharply increase regulation of the banking sector, having championed the industry as a source of dynamism since it came to power in 1997.

"We relied too much on financial services," Mandelson said. "We should have been nurturing different bases in our economies."

Mandelson defended the government's record in regulating the banking sector, and particularly the decision to create the Financial Services Authority, which concentrated powers previously distributed across a variety of different agencies, including the Bank of England.

"It's not that it didn't work," Mandelson said. "It should have been more intrusive, should have imposed its will on more banking practices, on banking bonuses. We did the right thing, but we could have supplied the solutions in a tougher way."

-Paul Hannon, Dow Jones Newswires, +44 20 7842 9491, paul.hannon@dowjones.com

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September 28, 2009 03:48 ET (07:48 GMT)


Copyright 2009 Dow Jones & Company, Inc.