Dollar down after 10-week rally!

Euro gains capped

The dollar slipped in Asia Tuesday following a 10-week rally, while gains in the euro were capped by concerns about slackening European economic growth.

The greenback bought 108.74 yen in Singapore afternoon trade against 108.94 yen in New York late Monday. The euro rose to $1.2851 from $1.2850, while slipping to 139.72 yen from 139.78 yen.
Japanese financial markets are closed for a public holiday.

The dollar's upward momentum has taken a breather after last week hitting highs above 109 yen not seen since August 2008.

The gains came after the the Federal Reserve hinted that interest rates could rise further than expected when they are eventually hiked, probably in mid-2015.

Singapore's United Overseas Bank said the dollar was facing some selling in Asian trade after a "surprisingly weak set of US housing data" released on Monday.

The National Association of Realtors said existing-home sales in the US fell 1.8 percent in August, following four straight months of gains.

The euro saw an uptick in Asia after hitting 14-month lows a day earlier as traders digested a speech by European Central Bank chief Mario Draghi to the European Parliament.

Draghi dismissed market disappointment about demand from banks for a new lending programme launched last week, saying it was on track to pump more liquidity into the financial system but needed time to take full effect.

He noted that the eurozone recovery was sputtering but said the central bank would keep its accommodative monetary policy in place for some time.

The dollar rose against most Asia-Pacific currencies.

It climbed to Sg$1.2672 from Sg$1.2655 in Tokyo on Monday, to 11,978 Indonesian rupiah from 11,961 rupiah, to 60.89 Indian rupees from 60.77 rupees, and to 44.57 Philippine pesos from 44.42 pesos.

It rose to Tw$30.23 from Tw$30.19 while easing to 1,040.64 South Korean won from 1,040.75 won.

The Australian dollar stood at 89.08 US cents from 89.36 cents, while the Chinese yuan bought 17.71 yen from 17.70 yen.

Source: yahoo.com

Rumors that Circulates at Wall Street

Siemens to Acquire Dresser Rand for $83/Share

The Deal:

Dresser-Rand Group Inc. (NYSE: DRC) announced Sunday, that it has entered into a definitive merger agreement with Siemens under which Siemens will acquire all of the outstanding shares of Dresser-Rand common stock for $83.00 per share in cash, in transaction valued at approximately $7.6 billion.

The deal is expected to close in the summer of 2015, subject to Dresser-Rand shareholder approval, as well sas regulatory approval in the U.S., Europe and certain other jurisdictions.

Sulzer (OTC: SULZF) confirmed Monday they had terminated discussions with Dresser-Rand and were pursuing other M&A projects. General Electric (NYSE: GE), which was rumored by Financial Times on Friday to be preparing a bid for Dresser-Rand, was not heard from on Monday.

Dresser-Rand shares closed Monday at $81.97, a gain of 2.5%.

Report Silver Lake in Talks to Acquire Shutterfly for $50+/Share

The Rumor:

Shares of Shutterfly (NASDAQ: SFLY) surged higher Monday, following a report from Reuters that private equity firm Silver Lake was in talks to acquire the photo sharing company for more than $50.00 per share.

Spokespersons for Shutterfly and Silver Lake did not respond to requests for comment.

Shutterfly shares closed Monday at $50.12, a gain of more than 5%.

Merck KGaA to Acquire Sigma-Aldrich for $140/Share in Cash

The Deal:

Merck KGaA (OTC: MKGAY) and Sigma-Aldrich (NASDAQ: SIAL) announced Monday, that Merck KGaA will acquire Sigma-Aldrich for $17.0 billion or $140 per share in cash. The deal is expected to close in mid-year 2015, subject to regulatory approvals and other customary closing conditions.

Sigma-Aldrich closed Monday at $136.40, a gain of 33%.

EMC Reportedly Held Merger Talks with Hewlett-Packard

The Rumor:

EMC Corporation (NYSE: EMC), reportedly held talks with Hewlett-Packard (NYSE: HPQ), according to a report from WSJ. The discussions are said to have taken place over a period of almost a year, and according to sources, the talks have recently ended. It is not known if the talks can be revived.

Other companies seen as potential suitors for all or part of EMC, include Dell, Cisco (NASDAQ: CSCO) and Oracle (NASDAQ: MSFT). Shareholder Elliott Management has been urging EMC to consider a breakup, including a sale of its 80% VMware stake, to unlock shareholder value.

EMC closed Monday at $29.68, a gain of $0.15, on three times average volume. Shares of VMware (NYSE: VMW) rose 2% Monday, to close at $96.16.

Report Allergan Rejected Bid from Actavis; Allergan in Talks to Acquire Salix

The Rumor:

Allergan Inc. (NYSE: AGN) recently rejected a takeover bid from Actavis plc (NYSE: ACT), according to a report from WSJ. Actavis is said to still be interested in a deal for Allergan.

Sources say Allergan is in talks to acquire Salix Pharmaceuticals Ltd. (NASDAQ: SLXP) in an all-cash deal worth more than $10 billion. Salix has already agreed to a merger with Cosmo Pharmaceuticals.

Allergan has been fighting off a hostile takeover by Valeant Pharmaceuticals International, Inc. (NYSE: VRX), led by investor Bill Ackman.

Allergan closed Monday at $166.12, a loss of more than 1%, and traded up 1.5% after-hours. Actavis closed Monday at $235.62, a loss of 2.5% and gained $1.38 after-hours. Salix Pharmaceuticals lost 2.5% to close at $159.83, but traded at $185.00 after-hours.

Source: benzinga.com

Dollar Gauge Set for Highest Close

Yen Drops

The dollar was set for the highest closing level in four years versus major peers after Federal Reserve officials raised their target-rate forecast. The yen slid to a six-year low before the Bank of Japan governor speaks.

The greenback returned to levels unseen since the collapse of Lehman Brothers Holdings Inc. after Fed policy makers increased their median estimate for the key rate to 1.375 percent at the end of 2015 versus June's forecast for 1.125 percent. The pound remained higher as Scotland votes today on independence. The euro touched its weakest since July 2013 with the European Central Bank preparing to allot the first funds under its so-called targeted longer-term refinancing operations.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, rose 0.2 percent to 1,055.71 as of 1:33 p.m. in Tokyo, poised for the highest closing level since June 2010.

The U.S. currency climbed to 108.75 yen, the strongest since Sept. 8, 2008, before trading 0.3 percent higher at 108.67. It was little changed at $1.2864 per euro and touched $1.2835, the most since July 2013.

Considerable Time

The Federal Open Market Committee retained a commitment to keep interest rates near zero for a “considerable time” after winding down a bond-purchase program under the quantitative-easing stimulus strategy. It said in a statement a “significant underutilization of labor resources” remains.

Policy makers tapered monthly bond buying to $15 billion in their seventh consecutive $10 billion cut, staying on course to end the program in October.

Yellen, at a press conference after the two-day meeting, said the language of the low-rate pledge isn’t a form of calendar-based guidance. The odds the central bank will increase its benchmark interest-rate target to at least 0.5 percent by July 2015 were 78 percent, up from 73 percent at the end of last month, federal fund futures showed.

An interest-rate increase would be the first since 2006. The rate has been in a range of zero to 0.25 percent since December 2008.

Kuroda Speaks

BOJ Governor Haruhiko Kuroda is scheduled to speak today at the National Securities Industry Convention in Tokyo. A stronger dollar isn’t negative for Japan’s economy and the central bank will continue unprecedented monetary stimulus as long as necessary to achieve its target of 2 percent inflation “in a stable manner,” Kuroda said Sept. 16 in Osaka.

The pound held a gain since Sept. 15 before voters in Scotland decide today on the future of a political union that dates back to 1707. Voting ends at 10 p.m. local time. A final batch of opinion polls before the referendum showed the “no” campaign remained in the lead by a slim margin.

“Uncertainty around the final result is mounting,” Shinichiro Kadota, a foreign-exchange strategist at Barclays Plc in Tokyo, wrote in an e-mailed note to clients today. “GBP will likely rebound further in case of a ‘No’ vote, though it has already seen some rebound in the past few days, while a ‘Yes’ vote would likely exert further downward pressure.”

ECB Loans

Sterling was little changed at $1.6265 after climbing 0.3 percent since Sept. 15 through yesterday to $1.6276.

The ECB will announce today the allotment of its first targeted lending program as part of its effort to stave off deflation in the euro area. Banks will receive 150 billion euros ($193 billion), according to the median estimate of analysts surveyed by Bloomberg News.

New Zealand’s currency added 0.2 percent to 81.09 U.S. cents. The nation’s economy grew at the fastest pace in 10 years in the second quarter, outperforming most major developed markets. Gross domestic product increased 3.9 percent in the second quarter from a year earlier, Statistics New Zealand said today. That beat the 3.8 percent median forecast in a Bloomberg survey of 10 economists.

Source: bloomberg.com

Dollar Falls From 14-Month High as Production Declines

The dollar fell from the highest level in 14 months against its major peers after data showed U.S. industrial production unexpectedly dropped in August.

The Bloomberg Dollar Spot Index climbed earlier amid bets the Federal Reserve will change its stance this week on keeping rates low for a “considerable” time after ending bond purchases. U.S. Treasury yields declined, damping the appeal of dollar-denominated assets, and the greenback fell against the yen for the first time in six days. A gauge of emerging-market currencies decreased.

“Soft data did contribute to today’s move; Treasury yields are slightly lower,” Eric Viloria, a strategist at Wells Fargo & Co. in New York, said in a phone interview. “There’s a bit of cautiousness ahead of the Fed meeting. Positioning in dollar longs is a bit stretched. That could restrain the dollar going forward.” Long positions are bets a currency will gain.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, fell as much as 0.1 percent to 1,049.31 after rising earlier to 1,052.14, the highest since July 2013. It was little changed at 1,050.55 at 5 p.m. New York time.

The dollar weakened 0.1 percent to 107.19 yen after reaching 107.39 yen on Sept. 12, the strongest since September 2008. The U.S. currency gained 0.2 percent to $1.2940 per euro. The European currency fell 0.3 percent to 138.70 yen. Japanese financial markets were shut today for a national holiday.

Aussie Drops

Australia’s dollar dropped as much as 0.6 percent to 89.84 U.S. cents, the lowest since March 12, after the weakest growth in China, the nation’s biggest trade partner, since the global financial crisis. The Aussie pared its loss to 90.28 cents.

“The risks now are building for the Australian dollar, not just from the U.S. higher yields, but from the Chinese angle as well,” said Ian Stannard, head of European foreign-exchange strategy at Morgan Stanley in London. “We’ve seen the Aussie already moving below 90, giving quite a bearish signal. It’s an important week for global risk-assessment.”

Chinese industrial output rose 6.9 percent from a year earlier in August, the statistics bureau said Sept. 13. That was down from 9 percent in July and the slowest pace outside the Lunar New Year holiday period of January and February since December 2008, based on previously reported data compiled by Bloomberg.

Output at U.S. factories, mines and utilities fell 0.1 percent in August after a 0.2 percent gain the prior month that was smaller than previously reported, Fed data showed. The median forecast in a Bloomberg survey of 79 economists called for a 0.3 percent rise. Manufacturing declined 0.4 percent as auto production slumped 7.6 percent.

Source: yahoo.com

Forex Market Daily Trading Outlook

UR/NOK traded within the range of 8.1567 – 8.1340 and closed at 0.12% lower at 8.1385, its sixth straight losing session.

At 6:52 GMT today EUR/NOK was up 0.02% for the day to trade at 8.1387. The pair held in a daily range between 8.1331, the lowest in more than two months, and 8.1438.

Germany

Destatis reported today that Germany’s Import Price Index fell by 0.4% in July on a monthly basis, compared to expectations for a 0.1% decline following June’s 0.2% jump. Year-on-year, import prices lost 1.7%, compared to a 1.2% decline the previous month. Analysts had projected a 1.4% drop.

The Import Price Index measures the changes in prices of imported goods in Germany. It is used to distinguish changes in trade volume versus changes in trade prices. While the former suggests rising consumer demand and economic activity, the latter implies higher production costs and inflation. Generally speaking, a better-than-projected reading should be seen as bullish for the euro, and vice versa.

France

France’s National Institute of Statistics and Economic Studies (INSEE) reported that business conditions in the second-biggest EU economy were the worst in more than a year. The Business Climate index matched expectations and slid to 96 this month, the lowest since July 2013, down from 97 during the preceding month.

The index reflects the performance of the French economy in the short-term perspective. It is compiled from a survey of around 4 000 business leaders from varying sectors.

A higher value is seen as bullish for the euro and vice versa.

Italy

Italy’s consumer confidence is also expected to have fallen in August. The Italian National Institute of Statistics will likely report at 8:00 GMT that its index fell to 104.0 from 104.6 in July.

Like with any other country, Italy’s consumer confidence is also a leading indicator as it gives a preliminary insight into consumer spending, which makes up most of GDP. Thus, higher readings are generally seen as bullish for the euro, and vice versa.

Norway

The rate of unemployment in Norway probably remained flat at 3.2% in the three months to July, according to the median forecast by experts.

It represents the percentage of the eligible work force that is unemployed, but is actively seeking employment. Unemployed persons are persons who were not employed in the survey week, but who had been seeking work during the preceding four weeks, and were available for work within the next two weeks. Persons in the labor force are either employed or unemployed. The remaining group of persons is labeled not in the labor force. Unemployed persons and persons not in the labor force constitute the group of non-employed persons. In case the unemployment rate met expectations or even increased further, this would have a bearish effect on the krone. Statistics Norway will release the official employment data at 8:00 GMT.

If EUR/NOK manages to breach the first key support at 8.1294, it will probably continue to slide and test 8.1204. With this second key support broken, movement to the downside will probably continue to 8.1067.

Source: binarytribune.com

Dollar inches down ahead of Yellen speech

The dollar inched down in Asia Friday as investors awaited a speech by the US Federal Reserve chief for any hint at when the bank will start raising interest rates.

The US unit was changing hands at 103.71 yen in Tokyo afternoon, compared with 103.85 yen in New York Thursday afternoon.

The euro was mixed, buying $1.3287 and 137.81 yen against $1.3280 and 137.91 yen in US trade.
"It is likely to remain very, very quiet today, ahead of Fed Chair's speech," National Australia Bank (NAB) said in a note.

All eyes were on he Fed's annual monetary policy meeting in Jackson Hole, Wyoming, where the heads of the US and eurozone central banks will speak.

Fed Chair Janet Yellen is schedule to speak first, at 1400 GMT Friday, followed by Mario Draghi, the European Central Bank president, at 1830 GMT.

"This forum has been known to signal the Fed's intentions and at the very least guide market direction with regards to policy. So there is often a lot of anticipation," the Australian bank said.

The dollar has risen over the past week as solid data and Fed minutes fuelled speculation that the Fed may start raising its key interest rates sooner than expected.

Unless Yellen is supportive of the latest improvements in the labour market, "there is likely to be some USD disappointment," NAB said.

"The risks are far more weighted to USD downside, than up, at these levels," it said.
The dollar fell against other Asia-Pacific currencies.

It slipped to Sg$1.2478 from Sg$1.2519 on Thursday, to 31.89 Thai baht from 32.06 baht and to 11,655.00 Indonesian rupiah from 11,724.50 rupiah.

The greenback also dropped to 1,017.35 South Korean won from 1,023.90 won, to 43.79 Philippine pesos from 43.82 pesos, to Tw$29.96 from Tw$29.99 and to 60.42 Indisn rupees from 60.63 rupees.

The Australian dollar rose to 93.23 US cents from 92.53 cents, while the Chinese yuan fell to 16.81 yen from 16.88 yen.

Source: yahoo.com

Forex market closed today for Parsi New Year

The forex and money market will remain closed on Monday on account of 'Parsi New Year'.

The rupee appreciated for the second week in a row last week and closed up by 39 paise to end at two-week high of 60.76 against the US dollar during the shortened week under review following sustained dollar selling by exporters and some banks amid bullish local equities.

The forex market was closed on Friday, August 15, on account of 'Independence Day'.

At the Interbank Foreign Exchange (Forex) market, the local unit commenced the week better at 61.09 a dollar from last weekend's close of 61.15 and dropped to a low of 61.30 on Wednesday on fresh dollar demand from importers, amid uptick in retail inflation and slowing industrial production growth.

Later, it bounced back to settle the week at its highest level of 60.76, showing a rise of 39 paise, or 0.64 per cent.

On Thursday, it gained 45 paise -- its best single day gain in three months -- amid fall in wholesale inflation to five-month low in July.

The benchmark S&P BSE Sensex snapped its two-week losses and closed the week sharply higher by 774.09 points, or 3.06 per cent, while FIIs bought shares worth Rs 1,595.72 crore during last week, including provisional data of August 13 and 14.

Meanwhile, the country's industrial production (IIP) slowed to 3.4 per cent in June as against 5 per cent in May, while retail inflation, as measured by consumer price index (CPI) rose to 7.96 per cent in July from 7.46 per cent in June, as per government data announced on Tuesday.

Source: zeenews.com

Dollar extends gains in Asia

The dollar extended its gains on Tuesday, recovering from a sharp fall last week fueled by Washington's announcement that it had authorized air strikes in Iraq. The dollar strengthened to 102.31 yen in Tokyo midday trade, against 102.21 yen in New York late Monday.

The euro was quoted at $1.3372 and 136.86 yen, from $1.3382 and 136.79 yen in New York as concerns persisted over a possible Russian military incursion into eastern Ukraine. As the geopolitical factors have been factored in, the market continues to see a retreat of risk-off moves, which supported dollar-buying sentiment against the yen, said the analyst of the Bank of Tokyo-Mitsubishi UFJ which is Yasuaki Amatatsu.

Investors tend to buy the yen in times of uncertainty and turmoil. The dollar rallied Monday after plunging last week on President Obama's announcement that he had authorized air strikes on Iraq along with humanitarian supply drops to prevent a "genocide" by Islamist extremists.

The prospect for a steady recovery of the US economy is also behind dollar-buying sentiment. Dealers are now moving their focus to an annual economics conference in Jackson Hole later this month to be attended by Federal Reserve Chair Janet Yellen.

Source: yahoo.com