Japanese yen trades lower against the US dollar and at a one-week low against the euro as global stocks rally.
- Risk appetite for investors is on the rise again on the back of good earnings reports from the US so far. The yen weakened against 15 of the 16 major currencies after Goldman Sachs reported higher than expected earnings and Intel Corp.'s revenue forecast beat estimates yesterday, sending their share prices up 7%. Today's corporate reporting calendar includes Abbot Laboratories and Gannett Co Inc.
- US stocks advanced on better than estimated retail sales, Asian stocks followed higher for the second day. The rise in global equities and a drop in gasoline inventories as reported by the American Petroleum Institute yesterday, helped oil climb from an eight week low.
- China said today that its foreign-exchange reserves increased by $178 billion, breaking above $2 trillion for the first time. This is a large increase when compared with a $7.7 billion gain in the previous three month and adds to the difficult the nation faces in finding places to invest.
- Bank of Japan kept its target interest rate at 0.1% as was widely expected and extended its emergency credit programs to December 31 from September 30.
Currency and commodities to watch out for: USDJPY & Gold
- The USDJPY pivot point is at 93.00 with a preference to enter into long positions at 93.05
- Morning intraday technical report shows gold under pressure with the pivot point at 932 and a preference to enter into short positions below 932 with 918 and 915 in sight.
Today's calendar and market movers:
- UK Claimant Count Change expected to rise 41.4K
- US Core CPI month on month expected to rise to 0.2%
- US Industrial Production month on month expected rise to -0.6%
- US FOMC Meeting Minutes
- US stocks were able to finish higher on better than expected corporate profits. The Dow is up 0.3%, S&P up 0.5% and the NASDAQ up 0.4%
- As of 06:30 GMT the Nikkei is slightly higher at 0.08% and the Hang Seng at 1.6%