The U.S. Dollar depreciated against the common currency after the non-farm payroll data release which showed additional 162,000 jobs in the last month, while 185,000 jobs were expected by investors. Since labour market is a major point of consideration for Fed's monetary policy, the data signals that QE may continue for a while. The greenback lost 0.40% to $1.3258 versus
The greenback prolonged adds against the Japanese Yen and jumped versus the basket of currencies after U.S. bond yields increased amid forecast that optimistic jobs data will induce the Federal Reserve to scale back stimulus. The U.S. Dollar index advanced 0.1% to 82.43. The greenback rose 0.3% to about 100 versus Japanese Yen.
U.K gillts traded lower as the nation's economy indicates an accelerating pace of a recovery and demand for the safest assets diminishes. The yield on the 10-year bond gained seven basis points to 2.47% as of 12:03 p.m. in London. The British Pound strengthened 0.2% to $1.5150. Versus the common currency, the U.K. currency added 0.2% to 87.15 pence per
Asian equities advanced, with the regional stock gauge heading for the largest increase in three consecutive weeks, as global manufacturing data exceed forecasts and several central banks decided to maintain monetary stimulus policy. The MSCI Asia Pacific gauge added 1% to 134.9 at 7:42 p.m. in Tokyo. Japanese Topix index was up 2.8%.
Stock prices in the U.K. fluctuated before the U.S. employment data release. The FTSE 100 dropped 0.1% to 6,677.15 after rising 0.2% earlier today. The gauge is heading towards 1.9% weekly gain as the Fed decided not to taper its monetary stimulus yet. Economists expect the U.S. data to show that it added 185,000 jobs to the economy, compared to
GDP in Indonesia increased less than 6% last quarter for the first time in more than 3 years. The economy grew 5.81% previous quarter from a year earlier, while economists predicted growth of 5.9%. The economic activity rose 6.01% in Q1. The slowdown in the economy occurs when inflation is at the highest point in more than 4 years and
West Texas Intermediate crude set for a weekly gain ahead of monthly U.S. employment report that may indicate the economic improvement is on track. Brent surpassed $110 per barrel for the first time since April, ahead of paring adds. The September WTI contract increased to $108.82 per barrel and Brent for September delivery rose to $110.09 per barrel.
Yields on Treasuries, relative to the index of G-7 nations bond yields, rose to the highest point in three years before data, which is expected to show a decrease in U.S. unemployment rate. The difference rose to 37 basis points, the biggest margin since May 2010 as investors speculated that the Fed might taper its QE due to recovering economy.
Stock prices in Europe increased for a fifth consecutive day, the longest streak of gains since April, while bonds dropped. The Stoxx Europe 600 gauge rose 0.3% to 304.07, the highest point in 9 weeks. Standard & Poor's 500 Index future contracts jumped 0.1%, while 10-year Treasury notes' yield approached the highest point in two years.
Gold decreased to the lowest level in two weeks, after better-than-forecast U.S. economic report increased concerns the Federal Reserve may begin to scale back its bond purchases. Spot gold dropped 1.6% to $1,287.56 per ounce and U.S. gold retreated $24 to $1,287.10, adding to signs gold is heading towards the worst weekly decline in four weeks.
Growth in U.K. construction industry accelerated in July and was the fastest in 3 years. A gauge of activity in the sector rose from 51 in June to 57 in July, while experts predicted a rise to 51.5. Residential construction activity increased most since June 2010, while commercial construction activity rose the fastest since May 2012. The Pound rose 0.2%
U.K. government gilts jumped, sending 10-year note yields to the highest level in three weeks, on signals that U.K. economy is improving, damping demand for safer bonds. The U.K. 10-year note yield increased seven basis points to 2.47% and the price of the 1.75% security maturing in September 2022 declined 0.565 to 94.14.
The Pound inched up versus the U.S. Dollar as Britain's construction report was released, indicating the strongest construction production improvement since June 2010. The Sterling advanced 0.31% to $1.5165 versus the greenback and rose 0.213 to £0.8717 versus the common currency, and added 0.45% to 151.148 versus the Yen.
The British currency declined to the lowest level in two weeks versus the greenback on signs that U.K. economy's recovery will give an impact on U.S. The Sterling traded at $1.5131 by 8:33 a.m. in London, after depreciating to $1.5102, the lowest since July 17. The Pound was at 87.35 pence versus the Euro, falling 1.2% weekly.
The Canadian currency declined the most in more than a month on bets that the U.S. unemployment rate fall may lead to earlier than expected stimulus tapering. The Loonie weakened 0.7% to C$1.0346 per U.S. Dollar as of 5 p.m. Toronto time, making it the lowest level for the currency since June 21. One Canadian Dollar buys 96.66 U.S. cents.
The U.S. Dollar headed towards weekly adds versus all its major counterparts as recovery in the U.S. economy boosted the case for the Federal Reserve to scale back bond-buying programme. The greenback remained flat at $1.3210 versus the Euro and reached 99.70 against the Japanese Yen, the highest level since July 25.
German government bunds declined, with 10-year notes set for the second weekly fall, ahead of data that analysts forecast will indicate Euro block's producer costs rose in June. German 10-year bond yield advanced three basis points to 1.69% and the 1.5% note maturing in May 2023 decreased 0.225 to 98.28.
The U.S. Dollar was very bullish after manufacturing and jobs data from the United States turned out to be better-than-expected. The Swiss Franc declined 0.76% to 0.9331 at 5:20 p.m. CET after the promising U.S. data was revealed. Against the 17-nation currency, the Franc traded 0.27% lower to 1.2353 as the ECB decided not to change its monetary policy.
Developing market equities gained for the first time in almost a week as manufacturing data from China showed significant improvement and a increase in oil prices helped producers. The MSCI Emerging Markets gauge advanced 0.5% to 952.36 as of 10:50 a.m. New York time, after declining 2.2% in the last six days. Also Shanghai Composite added 1.8%.
Wall Street stocks touched record highs, with the S&P 500 and the Dow Jones reaching new highs for the second day, on positive U.S. ISM manufacturing and labor report. The Standard & Poor's 500 jumped 1.06% to 1,703.56, while the Nasdaq Composite increased 1.12% to 3,666.98, and the Dow Jones Industrial Average gained 0.86% to 15,632.33.
Canadian stocks advanced, heading for the largest increase in three consecutive weeks, as energy companies gained after China's manufacturing surprisingly improved and the Federal Reserve kept its asset-purchase programme. The S&P/TSX Composite Index added 1% to 12,612.81 as of 10:27 a.m. Toronto time.
The Australian currency reached the weakest level in 35 months versus the greenback during morning session on Wall Street. The U.S. Dollar is strengthening this week amid positive economic data releases. The Aussie declined to $0.8911, the lowest level in 35 months. The Australian Dollar also fell versus the common currency by 0.11% to A$1.4818.
Manufacturing in the United States not only grew more than analysts expected, but also did it at the fastest pace in at least two years. The Institute of Supply Management manufacturing gauge rose from 50.9 to 55.4 points in July, the highest level sine the summer of 2011. The advance exceeded any economists' forecast that participated in a Bloomberg poll.
The Standard & Poor' 500 gauge climbed above 1,700 after several central banks said to continue accommodative monetary policy and unemployment insurance claims dropped to a five-year low. The benchmark added 0.9% to 1,700.33 as of 9:33 a.m. in New York. Current news positively affects stock markets as they are driven by the Federal Reserves policy and good earnings.