japan
Day Trading Course, Yen, Dollar, and Swiss Franc strengthen as investors seek safer assets
The yen, dollar and Swiss franc rose against most of their major
peers amid renewed demand for refuge assets after earthquakes shook buildings in
Tokyo, a month after a record temblor triggered a nuclear crisis. The
yen strengthened against all of its 16 most-traded counterparts after Japan
raised the severity rating of the accident at the Fukushima Dai-Ichi power plant
to 7, matching the 1986 Chernobyl disaster rating. The yen appreciated 1.1% to
120.81 per euro from 122.12 yesterday, set for the biggest daily gain since
March 16. Japan’s currency increased to 83.88 per dollar from 84.60, after
reaching 83.47, the most since April 1. The franc rose to 1.3034 per euro from
1.3087 yesterday. It strengthened to 90.49 centimes per dollar from 90.67, after
touching 90.20, the highest level since March 23.
The greenback gained for a second day versus the euro as the Nikkei
225 (NKY) Stock Average slid 1.7%, pacing a 1.4% drop in the MSCI Asia Pacific
Index. The Standard & Poor’s 500 Index declined for a third day
yesterday. The dollar climbed to $1.44 per euro from $1.4436.
Australia’s dollar fell the most in four weeks against the yen as
Asian stocks extended a worldwide retreat, damping demand for higher-yielding
assets. The Aussie also weakened after a gauge of commodity prices
declined and a technical indicator showed the currency was poised to drop. The
14-day relative strength index for the Aussie against the dollar was at 66
yesterday, near the 70 level that some traders see as a sign an asset’s price
has risen too fast and may reverse course. Against the yen, the RSI was 69
yesterday. Australia’s currency fell 1.4% to 87.55 yen from 88.79 yesterday, the
largest daily loss since March 16, and declined 0.6% to $1.0429.
Gold retreated as a rally to a record prompted some investors to sell
and a tumble in energy prices, sparked by reduced economic growth forecasts from
the International Monetary Fund, reduced inflationary pressures.
Immediate-delivery bullion fell 0.6% to $1,454.68 an ounce this morning after
touching an all-time high of $1,478.18 yesterday. Spot silver shed as much as 1%
to $39.8375 an ounce after reaching $41.9525 yesterday, the highest level since
1980
Day Trading Course, S&P 500 Daily Price Action
Yesterday continued the push to the downside, on volume of about 2.1M contracts price traded to a low of 1305.25 yesterday. Overnight show the work of a retracement going into the open. Today’s trading could see the continuation of the retracement into the 1320′s if volume falls off. If the sellers decide to step back in and move things some more area’s to watch include 1313.75, 1311.50, 1308.50 and 1300.00 support.
Day Trading Course, Dollar and euro gain against yen – Silver beats new records
The dollar approached a six-month high versus the yen after Federal Reserve Chairman Ben S. Bernanke said inflation expectations need to be watched “extremely closely.” The euro rose toward a 10-month high against Japan’s currency on speculation the ECB will raise interest rates this week while the Bank of Japan will keep them near zero. The yen also fell against all its major counterparts before reports that economists said will show European retail sales increased and U.S. service industries expanded, reducing demand for Japan’s currency as a refuge. The yen declined to 84.36 per dollar from 84.06 yesterday, after dropping to 84.73 on April 1, the weakest level since Sept. 24. Japan’s currency fell to 119.76 per euro from 119.54 yesterday, when it depreciated to 120.06, the lowest since May 10. The euro was at $1.4203 from $1.4221.
Euro-region retail sales rose 0.1% in February from January, when they gained 0.2%, according to a survey before today’s report. The U.S. ISM’s index of non-manufacturing businesses was 59.5 in March after a 59.7 reading the previous month that was the highest since August 2005, a separate survey showed ahead of today’s data. A reading above 50 signals growth.
The Dollar Index gained for a second day after Bernanke said he expected an increase in commodity prices to create a “transitory” boost in U.S. inflation and the central bank would act if he is proven incorrect. The Fed will today release minutes of its March 15 meeting where policy makers said the U.S. economic recovery “is on a firmer footing.” The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, advanced 0.1% to 76.008.
Australia’s dollar fell for a second day after central bank Governor Glenn Stevens left interest rates unchanged and a government report showed the country unexpectedly recorded a trade deficit. The Australian currency weakened versus 15 of its 16 major counterparts after the statistics bureau said the deficit was A$205 million ($212 million) in February. Economists had predicted a surplus of A$1.2 billion. The Aussie declined 0.3% to $1.0329 from yesterday, when it rose to $1.0417, the strongest level since it began trading freely in 1983.
Silver climbed to its most expensive level versus gold since 1983 as rising inflation spurred by commodity shortages, economic recovery and turmoil in the Middle East bolstered demand for the metal. An ounce of gold bought 37.16 ounces of silver, compared with an average of 62 in the past 10 years. Silver for immediate delivery has more than doubled in the past year while gold gained 27%, cutting the ratio from a high of 70 in June. Silver for immediate delivery gained as much as 0.5% to $38.7562 an ounce, the highest level since 1980, and traded at $38.7125 this morning. The cash metal reached a record $49.45 an ounce in January 1980. Gold advanced 0.2% to $1,436.75 an ounce.
