The yen is steady and stronger in Asian trading as there was a spike as retail sales data was better than industrial production in Japan as reported for October.
Industrial production is at 1.9% which is 0.5% less than expected but higher than the 1.1% last month. This data measures the change in the overall inflation adjusted value of outputs or production by mines, utilities and manufacturers. A higher than forecasted reading is a positive sign for the yen. In this case, the actual value is not favourable to the yen.
Retail sales increased by 1.8% and higher than the 0.8% expected increase on a yearly comparison. The retail sales value present changes in the overall value of inflation adjusted on the retail level. The reported percentage shows how much the Japanese consumer is spending that will indicative of economic activity. A rate that is higher than the expected increase is bullish for the yen.
Barclays PLC has another class suit to face which was filed last Friday. An NYC investment adviser filed the lawsuit for the rigging of FOREX trading which caused relevant damages to partners in trading.
Axiom Investment Advisors LLC submitted documents and other important papers to the Manhattan federal court to show Barclays practicing irregular FOREX practices. The class suit followed just when the bank agreed to commensurate an additional $150M as settlement to the allegations made. Barclays refused to make a statement about this new class suit.
Axiom was not the only Barclay counterpart that was deceived as the practice of the “Last Look” was not favourable to counterparties of the bank. The “Last Look” practice made profits to the bank but the counterparties were at the losing end.
Orders placed by Axiom to trade foreign exchange currencies were not paid the contract price agreed upon by Axiom and Barclays. Often times, Barclays would pay up the worse price and make profit for itself.
When the New York Department of Financial Services (NYDFS) noticed this irregular practice last year and started an investigation to the matter, Barclays immediately changed the “Last Look” policy.
The euro ended above $1.06 on the last trading day. The currency rate increased despite the speculated additional trade cuts in the euro zone next week as trading went slow due to the Thanksgiving holiday in the US.
Reports of the European Central Bank considering some changes since some banks have been hoarding currencies. The option for staggering new rules is part of a new strategy to push growth and this may be announced next week.
A strong dollar has been felt for the past week with the euro rate down $1.06 twice against the USD. However, analysts believe that the single currency can change position.
The euro was steady at $1.0612 for the last trading day and remained unchanged. The USD index was stable at 99.818 on Wednesday but still behind the 100.170 the recorded peak for an 8 ½ month period.
The US dollar was below the yen at 0.2% at 122.41 from the 3 month high of 123.77 registered on Nov 18.
The unfavourable results of the capital spending data for Australian private new capital caused the AUD to get weaker on Thursday.
AUD against the USD traded at 0.7223 which is lesser by 0.26%. NZD/USD pair changed upward at 0.6584 or 0.09% after it traded poorly. The USD/JPY pair declined at 0.12% at 122.60.
The Australian report on capital expenditure revealed that that for the 3rd quarter private capital expenditure dropped to 9.2%. The expected 3.0% dropped was way below the data provided.
In New Zealand, the report on trade balance for the month of October showed a shortfall of $963million NZD on a monthly basis and a $3.24billion on a yearly one. The data is a better one that has been expected by traders and investors.
The greenback index shows a decrease of 0.02% from previous numbers. The USD index measures how strong the currency is against some other global currencies.
Euro currency is at its lowest in several months after a report that the European Central Bank is going to widen the limits of the bond buying program or may implement a 2 level penalty charge for the banks that have money with ECB.
As the world awaits events happening with Russia and Turkey, Wall Street improved its performance on Tuesday. Trading was stable due to an increase in oil prices following the downing of a Russian war plane by Turkey that brought about concerns that oil production in the region will be affected.
The S&P 500 and the Dow gains were mostly on the materials and energy sectors. Crude oil jumped by 2.7% which was the highest one day gain in almost 3 weeks. A 2.2% increase in energy shares was also recorded. The indexes were low early Tuesday since investors were unsure of the hodgepodge of the US economic data while global crisis due to Turkey’s actions on the Russian war plane.
The immediate reaction of traders was to move to safe havens like the Swiss Franc and the Japanese Yen resulting in good performances by these currencies. The Swiss Franc at 1.0165 to USD showed gains at 0.2%. USD was at a lost by 0.3% against the Japanese Yen. Investors made profit when USD was high and then shifted to other currencies when the situation in Turkey deteriorated.
AUD and NZD benefited from the USD rate decline. AUD gained 16 points at 0.7272 and NZD at 25 points at 0.6580.