Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

EUR/USD Heads Toward 7-Month Lows; Nikkei Loses 0.30%

By IFC MarketsMarket OverviewNov 27, 2015 08:44AM ET
www.investing.com/analysis/focus-on-asia-272727
EUR/USD Heads Toward 7-Month Lows; Nikkei Loses 0.30%
By IFC Markets   |  Nov 27, 2015 08:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The US stock market was closed on Thursday due to the Thanksgiving Day and is closed today for most of the afternoon. The US dollar index, a measure of the dollar value against a basket of six major currencies, stood at 99.844.

The European stocks advanced on Thursday ahead of the ECB meeting next week, where the bank is to ease monetary policy in order to boost inflation. The EUR/USD pair headed towards the 7-month lows on expectations of ECB decision next week. Markets believe more in aggressive actions by ECB, which provokes rally in the European markets that already outperform the US stocks and drives euro even lower. The divergence between the ECB and the Fed monetary policies in case the Fed finally hikes the rates in December will further weaken the euro. The pan-European FTSEurofirst 300 index rose 0.8% while the Euro STOXX 50 rose 1.1%. Companies continue releasing their quarterly operating profits and outlook for the next financial year, which has a great influence on their stocks. Chipmaker Infinion surged 14% on its strong financial statements and dividend increase that were above the expectations. The news drove up the other chipmakers’ stocks: STMicro (N:STM) rose 5.6% and Dialog Semiconductor (L:0OLN) rose 4.8%. Royal Unibrew (CO:RBREW) sh=ky-rocketed 8.4%, while Remy Cointreau (PA:RCOP) lost 2%. Notorious Volkswagen (DE:VOWG_p) was 3.8% up after 10 consecutive days of growth. Other auto stocks were gaining ground as well thanks to the weakening euro. Miners saw their stocks growing on the rebounding base materials prices after hitting multi-year lows.

Nikkei index lost 0.30% on Friday on mixed economic data. The USD/JPY pair was nearly flat at 122.60. Today in Japan, the data came out that the October household spending fell 2.4% year over year in real terms. The core consumer prices are declining for the 3rd month already driven lower by falling energy prices, which shows that consumers are not strongly confident in the economy. On the other hand, the unemployment fell to 3.1%, the record low since mid-1995. Nevertheless, experts say forex is not too sensitive to the Japanese macroeconomic news.

Today the China’s stock markets slumps losing 5%, its record daily drop since this August. The market is highly volatile ahead of the IMF decision and the news the stock regulator probes one of the China’s major brokerages. On Monday the IMF will announce its decision on whether the yuan will become one of the reserve currencies included in a basket of SDR.

Brent crude oil prices edged down 1.2% in a thin trade on Thursday closing at $45.46 a barrel, while WTI futures fell to $42.51 a barrel. Markets remain concerned about the oil supply glut and stronger dollar further supports the case for demand-supply imbalance making oil contracts more expensive for international investors. Since the start of the year, Brent oil has already lost around 20%, and 8% out of them in November. On Thursday, the Chinese commercial crude oil stockpiles for October were released showing the 4.4% fall in October month over month, which is their biggest drop since 2010. Meanwhile, the oil stockpiles are increasing in the US and the EU.

Spot gold was nearly flat at $1,071.50 an ounce, its growth is limited by the expected interest rate hike in the US next month.

EUR/USD Heads Toward 7-Month Lows; Nikkei Loses 0.30%
 

Related Articles

EUR/USD Heads Toward 7-Month Lows; Nikkei Loses 0.30%

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fulfilling trading operations under conditions of significant leverage, or relatively little changes of the rate of financial tool (currency pair, index, etc.) can cause significant changes to the customer trading account (proportionally to this leverage) . At movement of the market against the customer position he can incur significant loss of part or the whole deposit. The customer is fully responsible for using his financial resources and choosing the trading strategy. Many financial tools have high volatility and/or have significant intraday time ranges of price changes that define high probability of reception of both fast profits and losses from trading operations.
Continue with Google
or
Sign up with Email