Denmark Continues T Bill Auctions on Easing of Kroner Peg to the Euro

The Danish Government recommenced public sale of Treasury bills as pressure on the kroner’s ceiling to the single currency eased. The website of Denmark’s central bank published an announcement that DKR 100 million worth of T-bills due this June 1st were auctioned at a yield equal to (negative) 0.9 percent.

Meanwhile, DKR 1 billion for September 1 were sold at a yield equal to (negative) 0.75 percent. This may be an indication that severe pressure on the kroner’s cap to the euro has gone down even as negative profit would have been anticipated following the decision of the central bank to fix negative benchmark rates in July of 2012.

The central bank used up billions of dollars to defend the ceiling. Speculators presumed that this would be removed after the Swiss National Bank removed its cap versus the euro last January.

It pushed down the deposit rate further forcing the government to put on hold bond sales and intervened assertively in FOREX markets in answer to this assumption. Foreign reserves increased to a record high.

Earlier in March, an economic team from Goldman Sachs helped alleviate speculations stating that Denmark has the capability to defend the shared currency’s peg.

Euro Plunges versus US Dollar

The euro currency fell versus the US dollar due to apprehensions that Greece will run out of money before any aid is released by the troika of creditors.

Nevertheless, the Greek government was positive about the negotiations for the rescue package.

The shared currency was behind 0.7 percent against the US currency dollar at $1.0813. However, it performed better than the yen going up 0.2 percent at 129.94 Japanese yen.

The quarterly regression reached 10.6 percent which is said to be the biggest since the last quarter of 1992.

The euro fared better versus the yen, up 0.2 percent at 129.94 yen.

Economic sentiment index of the European Commission scaled up to a peak of 103.9 this month bolstered by low energy prices and the ECB’s stimulus agenda.

Meanwhile, the US dollar index increased 98.054 following continuous losses in previous weeks. The greenback was up 0.9 percent against the yen at 120.18 yen, while the sterling was down 0.6 percent against the dollar at $1.4796.

Concerns were softened by upbeat data in the Euro region. A recent report underscored confidence in the European economy climbing to the highest since July of 2011. Likewise, there is affirmative reading on German inflation increasing hopes the region can stay away from deflation.

Market analysts say the euro is weighed down by different policy paths undertaken by the European Central Bank and US Federal Reserve. They also believe the EU currency will be in equivalence with that of its US counterpart within the year.

UK Pound Sterling to US Dollar

There will be highs and lows for the pair of UK Pound Sterling and US Dollar this week influenced by publication of US data such as personal income, spending and consumption expenditures along with home sales.

Statistics on US consumer confidence are expected to decline from 96.4 to 96.3 this month. Even statements of US Fed officials can affect exchange rates of USD and GBP, USD and EUR as well as USD and CAD.

There will be pressure on USD with the publication of MARKIT PMI for manufacturing, ISM Prices Paid and Manufacturing, MBA Mortgage Applications, and Employment Change.

Meanwhile, statistics about the national economy are also expected this week. The US Dollar movement can have effects on the market. Also to be released are initial unemployment and continuing claims, trade balance and factory orders.

Improvements in the labor market will likely cause a rally of the US currency as the central bank said before that tightening in unemployment can propel interest rate increases.

However, the jobless rate is not expected to move which can turn out as an upbeat development. Trading on the US dollar trading will surely be influenced by changes in Non-Farm Payrolls, average hourly earnings, and changes in household employment.

Gold Declines for Second Day

Gold plunged for the second day after going up to a three week peak until March 26 after the statement of Fed chair Janet Yellen that she is expecting rates to go up in 2015.

Prices increased previously after Saudi Arabia led airstrikes on Shiite insurgents in Yemen which spurred haven demand for gold on apprehensions hostilities may upset oil supplies. Meanwhile, gold holdings scaled up for the seventh week, according to data provided by Commodity Futures Trading Commission.

Bullion for immediate settlement dropped 0.2 percent to $1,195.91 per ounce. It was recorded at $1,197.50 in Singapore. The precious metal gave up 0.5 percent to stop the longest stretch of profits since 2012. However, it is still expected to achieve the first quarterly growth since June of last year.

Meanwhile, silver also retreated and Shanghai gold declined for the second day.

The Australia and New Zealand Banking Group also observed the regression of gold due to economic and political developments. Gold for delivery in June lost 0.3 percent to $1,196.80 at the COMEX. On the other hand, bullion (99.99 percent purity) gave up 0.3 percent to 239.80 Yuan per gram or $1,200.10 per ounce at the Shanghai Gold Exchange.

Silver for prompt delivery plunged 0.2 percent to $16.9194 per ounce. It is expected to go up 7.6 percent within the quarter. Platinum had no significant change at $1,136.75 per ounce and was headed for a third consecutive quarterly loss. Palladium metal also declined 0.3 percent to $739.25 per ounce.

Japanese Yen Gains versus US Dollar

The Japanese yen erased past losses against the US dollar in Asian trading and remained unaffected above 119 handle as investors ignored lackluster macro data from Japan and awaited the GDP report of the US.

The currency pair of USD and JPY traded flat at the 119.20 level and bounced off session highs of 119.41 during the initial session. This pair wiped out previous gains as traders absorbed the weak Consumer Price Index of Japan while retail sales brought about new losses. Investors are expected to look for new incentives henceforth.

In addition, weak treasury yields for both 10-year and 2-year notes also pulled down the USD and JPY. US dollar index traded even at the 97.62 level.

The next resistance is seen at 119.41 levels and can possibly extend gains to 119.85. On the downside, immediate support is perceived at 119 below the 118.65 levels.

Traders are now focusing on vital US macro figures which include gross domestic product along with consumer sentiment statistics for further direction related to the pair.

Greece Submits New List of Reforms to Creditors

Athens drafted a new list of structural reforms which is submitted to creditors yesterday even as the Greek government said it will ceases fulfilling debt commitments if negotiations faltered and no assistance is given to the hard-pressed nation.

Minister for International Economic Affairs Euclid Tsakalotos stated his country was seeking an accord and could exit the Union in case of negative outcome. However, they are always amenable to a compromise.

Representatives of the European Union, ECB and IMF are expected to study the proposed reforms closely.

Greece has come up with 18 items in its revised package of transformation that will hopefully release £7.2billion worth of financial assistance.

The minister said Athens will not give up its anti-austerity stance and instead focus on payment of wages and pensions.

An unidentified Greek official insisted the reform-for-cash arrangement does not contain recessionary measures.

On the other hand, lenders were adamant that such measures are inevitable if Greece wants its economy to recover.

The proposal projected a GDP growth of 1.4 percent for 2015 and reduction of primary surplus which is anticipated to reach 1.5 percent this year.

The Euro working group will be responding to this new package on Monday.

Meanwhile, Fitch Ratings relegated long-term foreign as well as domestic currency default ratings of Greece from “B” to "CCC". Likewise, ratings on primary unsecured overseas and local currency bonds were also reduced to "CCC". Temporary FOREX IDR was downgraded from “B” to "C"

The next schedule for review (Fitch sovereign rating on Greece) is on May 15.

Oil Prices Surge as Saudi Launches Air Strikes in Yemen

Prices of crude oil climbed up after Saudi Arabia let loose air strikes against Iran and its allies in Yemen. Oil prices surged particularly in Asia as air forces of the Saudi Arabian coalition made up of 10 countries started bombing selected targets.

Brent crude practically touched 60 while WTI broke resistance to almost 50.00 and for a short time touched 52.00. However, the two benchmarks recovered later during Asian trading.

At the start, markets were apprehensive regarding possible supply interruptions along with likelihood that hostilities will spread to the rest of the Middle East.

Yet some of these worries eased after Asian importers said supply disruptions did not bother them at all.

These offered support to the usual safe bets in the FOREX markets like the yen and Swiss franc.

Meanwhile, the dollar dropped to 118.33 yen which is the weakest since February 20 before rallying to 118.73. It also reached a low versus the franc (0.9491 francs).

The bombing of Yemen is expected to heighten the conflict with Iran even if Yemen is not a principal producer of crude oil. At any rate, the global market was shaken because Saudi Arabia is the biggest oil exporter in the whole world.

Analysts are also concerned with the approach of the euro zone in handling this situation since Saudi Arabia exports oil to Europe through the shoreline of Yemen. Hence, the continent’s importers will most likely be affected than Asian traders.

Gold Gains on Middle East Tension

Gold reached a high in more than three weeks as conflicts in the Middle East continue to rise with currencies and stocks dropping and investors gong for low risk assets like the precious metal.

Spot gold went up to as much as $1,219.40 per ounce. It moved up 0.7 percent at $1,203 per ounce. Gold for delivery in April settled at $7.80. It was higher at $1,204.80.

Commodity analysts are convinced that prices will continue to go up if the situation does not improve. Gold looks headed for seven successive session gains which is the longest run 2012.

In Yemen, prices rose two percent but this is not seen to affect gold.

Just 10 days ago, the yellow metal fell to a four-month trough when markets were expecting the US Fed would increase interest rates.

Nonetheless, traders were still wary about gold's outlook with ongoing outflows coming from SPDR Gold Trust. Holdings of the biggest gold-backed exchange-traded fund in the world declined 0.2 percent to 743.21 tons.

Premiums in China, which indicated demand, eased to the range of $2 to $3 per ounce versus $6 to $7 last week.

The country is the second-largest consumer of gold worldwide.

. Meanwhile, data showed that gold imports by of China from Hong Kong decreased last month because of slow purchases.

Euro Climbs against US Dollar

The single currency went up to $1.10 versus the US dollar egged on by the positive German business confidence poll which contributed to prospects that economic recovery in Europe is building up.

Traders believe that with the 1.1 trillion euro asset acquisition agenda of the ECB ready, abbreviated euro region bond profits will possibly be restricted and keep gains restricted.

The IFO Business Climate index (based on the monthly survey of 7,000 companies) soared to 107.9 this month from 106.8 last month.

This is higher than the common projection of 107.3 and strongest interpretation since July of 2014. It also followed the upbeat survey of ZEW on robust data of purchasing managers index which was circulated last Tuesday. Regional business surveys came out positive with the European composite flash PMI increasing to a peak of almost four years.

The euro went up to 0.3 percent (1.0955) after significant swings last week. This was ahead of a 12-year slump of $1.0457 established on March 16.

Investors reduced long dollar positions after the US central bank assumed a dovish position on cash rates sending the currency to multi-year peaks.

Index for the US dollar remained at 96.981 after setting a two-week trough of 96.387 which was down approximately four percent from close to a 12-year peak of 100.39 this month.

Analysts said among the primary consensus trades that will be subjected to pressure are the common currency.

IMF to Accept China’s Yuan as Major Currency

The International Monetary Fund is planning to take on board the Chinese Yuan into the aggregate that comprises its international FOREX benchmark.

This is what economists from Bank of America Merrill Lynch say. They are convinced the IMF will take in the Asian currency as among the notes composing SDR or “Special Drawing Rights” this October. It is a form of meta-currency for IMF transactions. The other currencies are USD, EUR, GBP, and JPY.

Economists say this will legitimize the Yuan as reserve currency. Moreover, the benefit for Beijing is that it can possibly lessen the nation’s foreign borrowing expenditures and offer more leverage in subsidizing current account arrears for the future. The People’s Bank of China has been advocating inclusion of the currency in the SDR for so long.

As reserve currency, its weight in the SDR system will probably be higher than pound sterling and yen. Based on forecasts from Merrill Lynch, central banks worldwide have an aggregate of over $80 billion in terms of Chinese government bonds making it the seventh biggest reserve currency globally.

Meanwhile, the China Construction Bank Corporation opened the first-ever money-market fund denominated in the Chinese currency which is based in the euro zone. It is considered a landmark in the Yuan’s emergence as primary force in world FOREX markets. This is a new exchange-traded fund included in the London Stock Exchange. It is also available to traders across the EU as well as the first product that provides Western investors access to securities in the interbank bond market of China. The fund is known as CommerzBank CCBI RQFII (Money Market UCITS-ETF) and began trading yesterday.

Said ETF may be the first of numerous Chinese currency funds to be launched in developed economies to entice investors with higher returns.

US Currency Recovers while Aussie Currency Slips

The US dollar achieved moderate gains early today. This turn-about in less than one day indicates at least tentatively that the latest sell-off may be over for now.

It rallied to 119.73 Japanese yen from a slump of 119.22 and expected to reach 120.00.

Meanwhile, the euro remained at $1.0915 from a peak of $1.10295. Traders said failure to go over the post-central bank policy meeting peak of $1.10625 caused said reversal.

According to analysts, the pair of EUR and USD was not able to keep up the test higher than 1.10 with somewhat better-than- estimated consumer price index data leading to the sharp rebound of the dollar.

They said price action has matched market expectations that long-term market participants are inclined to purchase the USD above $1.10.

Notwithstanding this scenario, the euro was ahead of a 12-year trough ($1.0457) set last March 16.

The dollar also performed better versus commodity currencies like the Australian dollar which slipped below 79 cents from a two-month high of $0.7939.

US Treasury yields declined because of firm demand for two-year note sale.

The Reserve Bank of Australia will also come out with the twice a year report about the status of the nation’s banking industry today.

Greece Faces Huge Cash Problems

Reliable sources claim Greece can possibly run out risks of money by the third week of April unless it obtains additional funding earlier.

The truth is Athens has almost no time left to persuade its creditors that it is serious in implementing economic changes. Nevertheless, Prime Minister Alexis Tsipras stated his government is presenting a set of reforms to its partners in the euro region by Monday to stay away from defaulting.

On the other hand, German Chancellor Angela Merkel did not disclose details of her meetings with the Greek President. All she said was that Greece must collaborate with the triumvirate of creditors to release the cash infusion.

Remarks made by the foreign minister of Germany as well as chair of euro area finance ministers suggested the probability that this matter will be resolved soon.

Athens expects to get approval for its list and facilitate the return of nearly 1.9 billion euro in profits incurred by the European Central Bank from Greek bonds, sources revealed.

Greek officials contend their own bank rescue source should have given back only 9.7 billion euro instead of 10.9 billion euro considering it spent its own cash reserves and not EFSF bonds for recapitalization.

Greek officials did not give any details about the latest reforms but hinted it contained structural modifications and not recessionary measures.

Financial markets in Athens recovered as the two-year bond yield declined almost two percentage points to less than 20 percent. A person speaking for the European Financial Stability Facility rescue program said the Euro Group head asked for an assessment of cash refund case.

Various Factors Affect Supply and Demand for Oil

Demand and supply for world crude is currently being affected by OPEC’s production agenda, the treaty on nuclear relations with Iraq, rig oil counts in the United States, and current turmoil in Libya.

At the same time, oil traders have watching retail investors closely in recent weeks. Meanwhile, there are also factors shaping stabilization of crude prices. These include reversal of price reduction; investments in exchange traded products worth billions of dollars; market investors; and, hedge funds.

Concerns regarding storage capacity in the US generated a renewed decline during the past week. At the same time, investors have poured more cash into financial commodities supported by oil futures.

Yet, there are possibilities their bets can send oil prices dropping once more due to a market collection where spot prices may go lower.

Observers believe the US benchmark can slip from the current $47 to $20.

Holdings in ETF products have climbed up since the start of 2015 such as the highly-leveraged Velocity Shares and Long Crude Oil ETN.

At present, US Oil Fund holds roughly 60,000 contracts for oil futures which are over 10 percent (open interest) at the New York Mercantile Exchange.

However, investors may have to shell out additional costs as they wait for the markets to recover.

When the US Oil Fund unleashed its shares, the contract cost effectively downsized holders of investors.

Market analysts say these investors may withdraw as a group if they lack the resources to sustain their positions through price changes.

Although funds like the USO may be expensive for retail investors, hedge funds may utilize exchange traded commodities as a means of managing momentary exposure to the crude oil market.

UK Pound Sterling Stumbles

The British Pound Sterling declined due to apprehensions of economic slowdown as the United Kingdom appeared to be heading towards depression. The currency touched a three-week low versus the common currency and scaled down by more than one percent. Market traders were also cautious about the forthcoming general elections. The pound touched a three-week slump versus the euro (€1.3664). Meanwhile, the dollar dropped to under $1.48 which is near a five-year low of $1.46 after the release of minutes by the Bank of England Monetary Policy Committee.

The decrease of the pound follows a weak industrial trends report by the Confederation of British Industry. CBI data disclosed orders for exports this month went down to their lowest level in over two years. Total orders for book balance decreased to zero this month compared to +10 last month.

Investors are also looking at the most recent inflation data from the UK which the Office of National Statistics will publish tomorrow.

Those are expected to show consumer price inflation has dropped to almost zero thanks to shrinking food prices and a drop in the oil price back to $56 a barrel.

The CBI poll for this month indicates UK manufacturers are being restrained by dismal export orders. Export orders balance dropped sharply to a 26-month slump of -26 percent in March from -8 per cent during the previous month. According to Howard Archer, head economist of IHS Global, the survey is unacceptable though the weakness is focused on export demand.

ASIC to Reduce Retail FOREX Trading Controls

The Australian Securities and Investments Commission (ASIC) may bring down the leverage for retail foreign currency trading. Australia intends to go after the United States, Japan, the US and other areas in putting a ceiling on maximum leverage presented to traders within the span of 50 to 100.

The issue on leverage ratios was reopened by regulators after exposure to negative account balances experienced by FOREX brokerages brought about by the Swiss National Bank’s abandonment of the 1.20 cap on the common currency last January.

Excessively high leveraged trades are very uncertain for clients.

Nonetheless, there is a new outlook with regards to FX brokerages that offer high leverage.

ASIC chairman Greg Medcalf declared Australia is preferred by online FOREX brokers which function under ASIC with maximum leverage of 1:500 compared to Western nations like the United States which have restricted leverage to drastically lower levels.

The commission is very moderate when it comes to FX brokerages and warned clients on the consequences of trading retail currency through online platforms.

Australia is said to be a preferred destination Western FOREX companies partly due to the country’s systematized business environment and excellent regulatory supervision.

It is also near the Asia-Pacific region and boasts of the capability to provide investors from China with high leverage and appealing terms. Australia has strong trade relations with Asian nations whose trading population as a rule do not manifest the same adherence to middle-of-the-road trading practices compared to investors from Japan.

US Oil Drillers Deplore Fed Rules

Oil rig drillers in the United States have condemned new Fed laws on hydraulic drilling or fracking calling these unwarranted and costly. They immediately opted for legal remedies.

The US Interior Department announced drillers on government property must reveal the kind of chemicals they use, comply with construction benchmarks for wells and get rid of contaminated water using safe measures.

According to a legal counsel of an industry alliance of drilling companies, this policy made by the Bureau of Land Management will just aggravate departure from federal and ancestral lands to private property administered by more conventional state laws.

The law firm’s spokesperson also said it will adversely affect domestic employment and federal revenues.

The company (Baker & Hostetler) represents Western Energy Alliance as well as Independent Petroleum Association of America in a court case challenging said regulation in a federal court in Wyoming. The lawsuit stated that rule was based on unproven concerns.

Research conducted on behalf of Western Energy Alliance disclosed the federal regulation will put in $97,000 to the cost of one oil well.

On the other hand, Interior Secretary Sally Jewell told media representatives that the new law protects government land resources and guarantee responsible development.

There are over 100,000 oil wells located on federal property and comprise 11 percent of natural gas output and five percent of crude production. 90 percent of these companies use hydraulic fracturing.

The government estimated compliance cost at $5,500 for each well. The shale well costs roughly $7 million. This rule will be effective after three months.

Euro Currency to Lose Value by 2017

Analysts from Goldman Sachs the shared currency will lose ¼ of its value from present levels and set new lows at $0.80 during the last quarter of 2017.

This was countered by economists from HSBC who insist that the euro is going to increase in value to $1.20 or 15 percent during the same period.

Said estimates border on extremes as against current speculation which is generally for more weakness of the currency which is now trading at $1.06. Yet, both opinions are anchored on concrete arguments depending on how the international economy progresses.

The perspective of Goldman Sachs depends on prospects that US monetary guidelines will stabilize. In other words, the US central bank will finally increase its principal interest rate from the close to zero levels as the economy gets better. Once the Federal Reserve tightens, the scenario is for the European Central Bank to maintain monetary policy. Hence, investors will transfer money from euro zone assets to the US.

Goldman says while the US dollar is strong, money flows failed to keep in step with ubiquitous views. Company analysts assert domestic demand will increase in the euro region and shove the euro downward. They project the fair value of the euro at approximately $1.20.

The Fed is watching the dollar’s appreciation with intent. Since the US is a closed economy, the exchange rate has less bearing on the domestic market compared to the United Kingdom.

In the interim, the escalating dollar has exerted downward weight on prices of commodities which pushed down inflation as well.

Latest Moves of Central Banks Worldwide

The Reserve Bank of New Zealand maintained its policy on interest rates but said it looked forward to more considerable decline for the kiwi.

RBNZ officials also stated the exchange rate is still baseless with reference to existing economic conditions.

The central bank of Hungary hinted at easier policy in the future after unexpected policy changes made by central banks of Switzerland, Denmark, India, and Canada during the first part of this month.

Singapore’s Monetary Authority also surprised markets by a shift in policy for slower pace in currency escalation.

This trend continues and adds more volatility to FOREX markets, according to currency strategists.

The US currency benefited from these actions as well as easy policies. In 2015, the dollar went up by almost seven percent versus euro, over seven percent against the CAD and six percent against the kiwi.

The dollar also strengthened over 20 percent against the currencies of Sweden and Norway.

Numerous economists, strategists and the Treasury market read that more risk factors indicate a higher bar for increasing interest rates.

In spite of this, the US dollar was able to get back quickly.

The Australian dollar has weakened due to decreasing prices of iron ore and crude oil. Speculators say the Reserve Bank of Australia may trim interest rates during the institution’s policy meeting next week.

Likewise, central banks of Mexico and South Africa will release their respective policy decisions on Thursday with stakeholders forecasting that the South African Reserve Bank will defer any increases.

The Mexican central bank is also expected to retain policy rates.

Analysts also believe the Bank of Korea will recommence easing in a little while and follow the worldwide trend of looser fiscal policy.

Swiss Franc Forecasts and Updates

Exchange rate for the Swiss currency fluctuated versus its peers due to mixed figures and apprehensions that the Swiss National Bank could modify policies to devalue the strong franc.

Earlier this week, the national retail report bared a (negative) 0.3 percent yearly slide last January after the adjusted increase of 1.9 percent in December. Import Price and Producer Index also dropped more than projections.

This data was followed by the ZEW survey one expectations. Sentiment measure got better from (negative) 73 to (negative) 37.9.

The gain was solid but not impressive enough as economists expected. Trade surplus narrowed down from 3.41 billion in January to 2.47 in February (CHF). This was brought about by a (negative) 2.8 percent monthly drop in exports and 3.1 percent increase for imports.

UK pound sterling to CHF was listed at 1.459. CHF to EUR came in at 0.947 while CHF to USD was 1.025 dollar.

The franc was softer versus the pound and dollar following the decision of the SNB on interest rates. Sight deposit rate remained at (negative) 0.75 percent as the central bank reduced its growth position and projected a sharp slide of prices because of the robust domestic currency. Central bank officials said it will be active in the FOREX market if required. The franc declined against the pound after the SNB came up with its decision.

The currency pair (CHF and GBP) traded within the range of 1.0084. The single currency showed a 0.3 percent drop versus the franc at 0.9418. Meanwhile, the CHF and USD traded at 1.0092. It was down by nearly one percent

GBP and USD Trading

The pair of GBP and USD dropped within the 100-hour moving average during the last 11 hours in trading sessions. The moving average came in at 1.4792 while low for that day was 1.47944. The level rebounded in morning trading at London. Traders banked on this level to delineate and reduce risks. This gamble paid off for them.

Corrective high off that low (as traders from New York joined the trading) was more than the 200-hour moving average at 1.4924 against the 1.4900 for the 200-hour median.

However, this extension was rejected due to volatility. 50 percent of this also came close to the 200-hour MA (1.4999). Meanwhile, GBP and USD pulled away from a low of 1.4796 to 1.4895 in euro region trading although it was still down by 0.58 percent.

The UK pound sterling declined to practically five-year lows versus the US dollar on Wednesday following the declaration made by the Office for National Statistics (United Kingdom) that the jobless rate remained at 5.7 percent during the first three months which failed expectations for a decrease of 5.6 percent.

Likewise, minutes of the policy meeting of the Bank of England pointed out that all members of the Monetary Policy Committee preferred to maintain interest rate at 0.5 percent along with the £375 billion asset-purchasing agenda. The UK pound was higher versus the shred currency as EUR and GBP stumble 1.18 percent to 0.7168.

Bank of New York Mellon in FOREX Settlement

Bank of New York (Mellon) management agreed to a number of settlements over deceptive FOREX practices and agreed to pay $714 million for resolution of these cases.

Offices of concerned New York Attorney Generals gave statements said bank will settle with the US Departments of Justice and Labor; New York Attorney General; US Securities and Exchange Commission as well as private class lawsuits.

BNY Mellon acknowledged it promised to provide clients with a very fair interbank price of the day on FOREX transactions. On the contrary, they were given the worst price, the attorney general’s office said.

BNY Mellon owned up the fraud and announced it would fire bank executives who were part of these transgressions. The bank also vowed to improve its practices and be transparent with information for clients.

For these settlements, bank officials stated the justice department and New York Attorney General's office would each be given $167.5 million. On the other hand, the amount of $335 million will go to customer class action litigation.

In addition, government prosecutors said market investors rely on banking institutions to be truthful as to how their investments are being handled. Yet, the bank misinformed customers and made trades to their detriment.

The settlement simply proves that banks and individuals liable for deceiving investors will have to accept severe consequences for their unlawful activity.

Japanese Yen Surges Ahead

The Japanese yen climbed up and contained gains for stock shares.

NIKKEI Stock Average moved back by (negative 0.62 percent) or 0.4 percent lower. On the other hand, the TOPIX index absorbed a loss of 0.3 percent. However, the scope of retreat was limited to some extent after US stocks also rallied overnight.

USD and JPY pair scaled down more than one yen to ¥119.73 after the US Fed seemed to be taking time in bringing up cash rates. Meanwhile, US Fed officials reduced median projections for the rate of federal funds at the end of this year to approximately 0.625 percent compared with estimates of 1.125 last December. Median forecasts for 2016 decreased from 2.5 to 1.875 percent, based on the quarterly review of economic projections made by the Federal Open Market Committee.

The FOMC downplayed its evaluation claiming that growth tones down a bit after January.

Japanese analysts say that it will be hard to see any rate hike this June and the schedule will probably be postponed. The comparative strength index was pegged at 79 in Tokyo above the 70 cap that traders watch as indication that stocks have gone up rapidly and too far.

Negative Currency Effects Bring Losses to European and North American Firms

Many companies in the Euro Region and North American have already incurred revenue losses amounting to billions of dollars because of impacts cause by negative currencies based on recent studies.

They lost $39.54 billion with North American corporations’ losses increasing by 53 percent to $27.13 billion last year while European institutions reported $12.41bn shortfall due to this development.

Overall negative currency impact went up more than twice during the fourth quarter as these enterprises gave up $20.18 billion during that period as against only $8 billion in the previous quarter.

During the last quarter of 2014, the US currency climbed up four percent versus the euro with North American companies reporting FOREX impacts reaching $18.66 billion which is the biggest since the peak of the economic crisis in Europe.

The report made the recommendation that said companies need to reset their respective budget rates or modify their guidance considering the persistent instability in foreign exchange rates.

Monetary officials all over the world say foreign exchange rates are priorities amidst the background of the highest volatility in the last two decades.

Canadian Dollar and Euro Currency

The Canadian Dollar moderated against most of its peers due to the significant decline of oil prices. However, there is a clear sign of recovery even as the price remains below $44 per barrel.

EUR and CAD pair is trading within the 1.3524 range.

Since the Canadian dollar is a commodity asset, it is easily affected by any changes in prices of crude.

Canadian economic figures were positive although there was minimal impact because of the effect from low crude prices. International Securities Transactions showed a surplus of approximately 5.73 billion last January which eclipsed median market projection of a trade shortfall which is -2.00 billion.

Depleted oil price in the market will possibly cause the Canadian currency to trend lower. As a result, Euro to CAD exchange rate is expected to remain as it is for the time being.

However, it is also likely that there will be instability in the EUR/CAD mainly because of the release of important data in the euro region.

Euro to Canadian Dollar exchange rate went up to a peak of 1.3569 yesterday.

Russian Currency Strengthens

The Russian ruble got a lift from currency sales which market analysts credited to exporters preparing for the tax period before March ends.

A break in the surge of the US dollar, which affected currencies of emerging economies, also fortified the Russian note. The ruble was 0.7 percent stronger versus the dollar (61.77) and earned 0.3 percent to trade at 65.58 against the shared currency.

FOREX sales balanced the negative effect of oil prices’ decline which is the main driver for Russian assets. Brent crude traded at approximately $53 per barrel which is 1.6 percent lower compared to the previous finish.

The country’s economic officials are keeping track of exporters' currency sales to prevent another collapse of the ruble which took place last December.

The currency already recovered over 12 percent versus the US dollar since last month.

This was facilitated by increasing crude oil prices, improved current account excess and central bank loans bolstering foreign currency liquidity. It allowed the central bank to reduce cash rates and stimulate the local economy.

In its recent report, ING Bank stated it believes the ruble will be approximately 52 to the US dollar in one year.

On the other hand, Russian shares bounced back after dropping with oil prices earlier this week.

The RTS index increased 1.5 percent to 824 points. Meanwhile, the ruble-based MICEX was 0.5 percent up at 1,617 points.

GBP Exchange Rate Remains Unstable

The UK pound sterling (GBP) is projected to remain volatile as British citizens cast their votes this year. Given this political situation, the GBP/EUR exchange rate will definitely remain shaky these coming months.

According to research made by HIFX currency broker, the rate of GBP versus EUR increased in terms of volatility by 40 percent during the previous seven general polls.

Instability was the highest in 2010 as it soared to 156 percent when the coalition government came to power. Meanwhile, the pair of EUR and GBP was trading 0.42 percent higher day-to-day at 0.7148. On the other hand, the pair of EUR and USD traded higher at 0.87 percent on a daily basis.

On the other hand, outlook for the common currency exchange rate is expected to be undercut as demands of investors for currency hedges remains higher.

Insignificant data in the Euro Zone allowed the euro some room for recovery.

The German DAX touched new records due to increasing demand for Euro area stocks which is seen as key for further weakness of the EU currency.

At the same time the head analyst for markets at Danske Bank said demand of global investors to hedge their exposure to assets in Europe will pave the way for a lower EU currency.

Momentum continues to be lower in EUR and USD with the cross reaching 1.05 within the week.

Negative euro rate along with excess liquidity is expected to drive traders to risky assets like euro stocks and peripheral bonds.

FSMA in Belgium Warns of New FOREX Fraud Scheme

The Financial Services and Markets Authority in Belgium warned of another fraudulent scheme in FOREX and binary options. This regulator said anonymous groups are returning funds allegedly to ill-fated traders after they lose cash deposits. The FSMA says unscrupulous individuals and companies claim to be law firms or financial services entities with different fictitious identities.

They connive with unregulated and clandestine currency and binary options brokers using databases obtained from clients to go on cold calls offering their help after finding out the victim lost money.

Another scheme is more of the usual information collection tactic used in the Internet. There were instances when unidentified groups ask for personal email addresses and contact information through web-based forums and blog posts.

This illicit practice has become popular and is now dubbed as ‘recovery room”.

Victims are contacted after being scammed. The caller pretends to help the victim recover but the real motive is to extort more cash.

The FSMA has cautioned the public to ignore uncalled-for offers of services purportedly to recoup losses due to currency trading. It also urged traders, who have already lost money against transferring funds to banks or mysterious payment services accounts.

IBM Considers Bitcoin Technology for Major Currencies

US multinational corporation (International Business Machines) is looking at the possibility of using “block chain” which is the core technology behind bitcoin.

An insider said this will be utilized in creating an electronic cash payment system for primary international currencies. With this approach, consumers can transfer cash or pay immediately using the technology without relying on any bank. At the same time, there is no need for clearing eliminating transaction costs. Transactions will be posted in a financial record book of a particular country's currency like the euro or US dollar.

Block chain is said to be the principal innovation that allows customers to make payments immediately, incognito and without the need for government guidelines.

The ledger can be viewed by all those involved in the bitcoin network instead of being kept in an independent server and manipulated by a person, enterprise or bank.

Said digital currency system will function in a similar manner.

IBM is among global technology firms planning to develop use of the block chain further than the bitcoin.

This digital currency was introduced six years ago which prompted a following among technology adherents and market investors. Since then, IBM has been engaged in informal talks regarding a block chain cash system with the US Fed and other central banks, according to the same source.

In case, these central banks endorse this concept, IBM will create the secure and variable infrastructure for this project. Last September (2014), the Bank of England referred to this open ledger as a noteworthy innovation that can change the financial system into a more universal model.

Consistent with plans, the digital currency may be tied up with a user's bank account through wallet software integrating that account with the suggested digital currency record.

US Dollar versus other Currencies

The US dollar has picked up against most major currencies to include the euro. However, the UK pound sterling remained formidable.

The dollar scaled upwards since the financial crisis commenced in 2008. Based on trade-weighted index of the ICE exchange, the US note increased 7.7 per cent during the third quarter of 2014. It gained five percent in the last quarter and climbed to an amazing 10.4 percent so far during the first three months of 2015.

In fact, it is well on its way for the strongest performance in a quarter since 1992.

What set off the US dollar's rise was the plunge in crude oil prices last year. Oil deals are denominated in the US currency so drops in oil are linked to increases of the US dollar.

This time, the most recent boom of the dollar all boils down to differences in monetary policies and cash rates. The ECB is all focused on acquisition of QE bonds while other central banks in the up-and-coming world have trimmed down rates. The US Fed appears to be boosting rates in 2015 while the Bank of England may follow its US counterpart after.

For some Asian countries like South Korea, the won dropped 11 percent versus the dollar since last year. However, it gained nine percent over the Japanese Yen during the same duration and 60 percent during the last three years.

Meanwhile, projections in the euro region are filled with excitement as brokers called for 17.2 percent growth in 2015 revenues. Said estimates increased significantly during the last three weeks as common currency floundered which caused an extreme growth in valuations of stocks in Europe.

USD and CAD Updates

The US dollar went up to a six-year high versus the Canadian currency as market sentiment deteriorated after unsatisfactory data on the US economy and the increase of unemployment rates in Canada last month.

USD and CAD pair reached 1.2816 during early trading in US markets which is the highest since March of 2009. It then consolidated at 1.2783 and advanced 0.77 percent.

The pair would probably get support at 1.2617 which is the low last Thursday and resistance at 1.3063. Meanwhile, the US labor department revealed producer prices dropped 0.5 percent last month, leading to more expectations of a 0.3 percent gain after the 0.8 percent drop in January.

Main producer prices excluding food, trade and energy also decreased 0.5 percent in February as against assumptions of a 0.1 percent growth.

On the other hand, Statistics Canada made public that employment figures went down by 1,000 last month versus projections of a 5,000 decline. This came after a rise of 35,400 in January.

The report also disclosed Canada's unemployment numbers went up 6.8 percent last month from 6.6 percent in January The Canadian currency was higher versus the EU euro with EUR and CAD slipping 0.20 percent to 1.3467.

Impetus of US Dollar Buying Lifts Currency to 12-Year Peak

The momentum of US dollar buying boosted the currency to a new 12-year peak versus the single currency surmounting below par US inflation and outlook of consumer sentiment.

Analysts say there seems to be positioning earlier than the US Central Bank’s fiscal policy meeting this coming week which was also one of the reasons for the dollar’s rise.

The euro dropped to $1.04625 fell (1.60 percent) on the EBS trading platform.

Meanwhile, Some FOREX strategists in New York observed that the dollar’s upward climb is not sustained by front-end profits. Producer prices dropped 0.6 percent in February which indicates subdued inflation.

Likewise, the consumer sentiment index of the University of Michigan declined even if inflation prospects increased for a second successive month since September.

The QE program of the European Central Bank was designed to accelerate borrowing and investments. This strategy stands out against that of the Federal Reserve which is to begin increasing cash rates in the middle of this year to enhance the US currency's yield advantage.

The dollar-buying thrust has overcome increasing European yields according to currency experts.

For instance, a break in Euro bond buying pushed yields to unprecedented lows and even negative levels.

The pound sterling decreased one percent to another five-year low of $1.4697. Bank of England Governor Mark Carney said there was no hurry in interest rates.

IMF Bailout for Ukraine

The International Monetary Fund (IMF) finally consented to infuse a total of $10 billion into the problematic economy of the Ukraine until 2016.

The IMF’s board gave its nod to the $17.5 billion loan with $5 billion to be released before the weekend and $5 billion more within the next few months, officials of the institution declared.

Aside from this sum, the Ukrainian Government will also get another $7.5 billion in advances from other global organizations and a possible $15.4 billion (debt relief) that Ukraine hopes to bargain with bondholders.

IMF Managing Director Christine Lagarde announced from Berlin that Ukraine has satisfied all previous requirements to start the program.

This is considered an immediate program of economic stabilization for a nation embroiled in hostilities with Russia as well as insecurity regarding territorial integrity.

For Prime Minister Arseny Yatseniuk, the effect of the IMF aid will be felt at once in a country that has to cope with issues in balance of payments problems and a collapsing currency.

Due to geopolitical turmoil, the economy of Ukraine is floundering with a currency barely recovering from exceptional lows, exorbitant interest rates in the last decade and a half, as well as central bank reserves of only $6.4 billion. This amount is not even sufficient to cover up five weeks of the nation’s imports.

The IMF projects Ukraine’s economy to rise by at least two percent in 2016 after shrinking approximately 5.5 percent within the rest of 2015. During that time, Kiev should have an adequate amount reserves to account for one quarter of imports. Ukraine's parliament endorsed a draft of IMF-supported amendments to its budget which formed part of major preconditions for approval of its rescue.

Euro Currency’s Precarious Situation

The shared currency managed to stay just over a 12-year slump as the European Central Bank launched its bond-buying drive worth 1 trillion euro.

The ECB agenda has pushed yields of bonds downwards into negative territory and even unprecedented lows. In fact, a 30-year bond in Germany now offers profit which is below a two-year Treasury note in the United States.

Traders avoided the euro which was last recorded at $1.0554.

It dropped to the lowest in more than seven years (70.11) pence versus the UK pound sterling.

The euro also touched a record (NZ$1.4434) and declined to a trough of 127.64 yen.

Quite the reverse, the US dollar surged forward partly because of projections that the US Central Bank will be raising interest rates soon.

The dollar index came close to 100.00 since April of 2003. Against the Japanese note, it traded at 121.41 which are not far from an eight-year height of 122.04.

Meanwhile, the US dollar stayed close to six-years high ranged against the AUD and CAD.

The official employment data of Australia is expected today and will be serve as the next test for the Australian currency. On the other hand, the NZ dollar was near a four-year low (NZ$0.7177) but recovered to 73 cents (US) after the Reserve Bank of New Zealand was less dovish than what currency markets were looking at.

Lawyers Defer Lawsuits against Commercial Banks

Legal counsels of investor, who filed an anti-trust case against 12 major banks of manipulating prices in the FOREX market, consented to postpone proceedings because of a criminal investigation being conducted by the United States Department of Justice. The department filed a letter before the Manhattan federal court and disclosed that petitioners agreed to a deferment of six weeks with hardly any exceptions on evidences and document swaps.

The postponement was announced as probes (including one to be done by a federal grand jury) whether banks fixed currency markets for over one year will be made.

Banks including JP Morgan Chase, Royal Bank of Scotland Group, Citigroup Incorporated and UBS AG confirmed investigations by US authorities.

A DOJ spokesperson said the investigation has been ongoing but gave no other details.

JP Morgan Chase was the first bank to agree to a settlement last January paid a total of $99.5 million. Investors insisted private banks obstructed competition by conniving to influence WM and Reuters Closing Spot Rates in emails, chat rooms and instant messaging.

The other accused parties are the Bank of America, Barclays, BNP Paribas SA, Credit Suisse Group, Deutsche Bank AG, Goldman Sachs, HSBC, Morgan Stanley, and RBS.

At the start of 2015, District Judge Lorna Schofield refused an attempt by these banking institutions to set aside the case due to lack of evidence in connection with the alleged collusion.

Part of the agreement said that plaintiffs can still get hold of transaction data and restricted information from the banks' attorneys

. The first hearing has been set this coming March 26.

Euro Extends Decline

The EU currency dropped to a new 12-year slump and continued a considerable regression as the European Central Bank started printing notes to acquire sovereign bonds.

Debt yields of almost all euro bloc nations went down to unparalleled lows immediately. 10-year earnings of Germany were down by 16 basis points or 0.237 percent this week. A two-year bond offers negative return of 0.235 percent.

The euro slipped to $1.0666 with this most recent decline nearly matching the 2003 low of $1.0501.

It also touched a seven-year trough versus the UK pound sterling at 70.79 pence while plunging to an 18-month low point against the Japanese currency or 129.48 yen.

The euro remains under duress because of continuing doubts regarding Greece.

The greenback has been kept afloat by expectations that the US Central Bank can increase interest rates by the middle of 2015. The dollar index climbed to the highest level in over a decade at 98.776.

The dollar was at par with the Swiss franc and reached close to an eight-year peak of 122.04 yen. Currency pairs bannered by USD surpassed numerous projections and achieved trading targets. However, scores of market stakeholders are wondering whether moves were unwarranted.

Of different commodity currencies, the Aussie dollar plunged to a six-year low of $0.7603. Reserve Bank of Australia Assistant Governor Christopher Kent claims the decline of the domestic currency will boost the national economy.

GBP and USD Forecast

The UK pound sterling to US dollar exchange rate will serve to test the January low of 1.4953 as markets supposedly miscalculated the dollar’s positive aspect sooner than the recent primary release of economic data.

Market experts believe the highest target is $1.51. Anything lower means traders will lean on a 50-hour moving median of $1.5160. FOREX markets reacted to the upbeat side of US payrolls figures and took no notice of weak data.

US yields were higher together with USD. GBP and USD rates were flexible with the UK pound to US dollar exchange rate trading 0.57 percent higher. 1 GBP was equal to 1.5126 USD.

Meanwhile, EUR to USD was 0.12 percent higher 1 EUR was equal to 1.0853 USD.

The pair of GBP and USD was subjected to intense negative pressure during the past week.

At the beginning of the week, buying interest for the British currency is noticeable while the broader US dollar remains feeble. According to an analyst, currency recovery in GBP and USD is not yet stable.

The GBP and USD is still in the downward trend with initial downside goal of $1.50. This can lead to $1.4970 if said level is breached.

Italian Economy to Benefit from Weakening of Global Currencies

The significant slide of the common currency versus its US counterpart and other primary international currencies can be beneficial for Italy’s currency and the country’s economy as well.

The euro relinquished less than one quarter of its value ranged against the US dollar in 2014. This was from the high of 1.395 U.S. dollars for every euro in March of 2014 to a one-day low of 1.058 dollars per one euro exactly one year later.

Trading levels yesterday correspond to the lowest position for the common currency since 2003.

It is below 18 months after the euro officially replaced Italy's lira, German mark, French franc, and other currencies of European nations.

The shared currency lost sizeable ground to other global currencies like the UK Pound Sterling, Swiss Franc, Chinese Yuan, and Japan's Yen. On the Russian ruble has declined and lost to the euro.

This trend is probably a boost for Italy's sluggish economy since it is cheaper for people outside the 19-member bloc to purchase Italian-made merchandise and consumers from these countries to travel to Italy.

However, primary raw materials (oil and natural gas) are valued in US dollars, making them more costly.

Although the weak currency makes it easy for consumers overseas to purchase Italian commodities, it is harder for Italian citizens to buy products from other nations with stronger FX notes. These include the United States and China which happen to be the two biggest trading partners of Italy outside the euro region.

The profit on standard 10-year government bonds at the end of trading was a very small 1.28 percent. This is a lift for Italy which subsists on low borrowing costs.

ECB Begins Purchase of Government Bonds

The European Central Bank embarked on an acquisition program of government bonds as part of the bank’s extended QE plan to lift price increase in the euro area.

Central banks allegedly purchased German and Italian arrears as well as Belgian securities and French currency, according to anonymous sources.

The profit on Germany’s 10-year bonds decreased five basis points (0.05 percentage points) or 0.35 percent. It reached the record trough (0.283 percent) fixed last February 26. Meanwhile, the 10-year yield of Italy decreased three basis points or 1.29 percent.

Quantitative easing purchases have affected markets positively, according to currency strategists in Germany. Expectancy of the 1.1 trillion-euro program has stimulated debt market recovery that propelled yields in the European Union to unprecedented lows.

10-year yields in Belgium dropped six basis points (0.57 percent) while the rate on French maturity debt went down five basis points or 0.64 percent.

Certain holders of government securities are not keen on selling fueling concerns that there will be shortage of accessible debt for the ECB. It is also probable that elasticity and restricted information about this plan can produce market precariousness.

The ECB announced that purchases of public and private liabilities will be made in minor markets by national central banks through present counterparties.

It disclosed that only outstanding securities between two years and three decades (one year at the time of acquisition) will be entitled.

Bond purchases will be conducted in comparison to the capital that member central banks have contributed to the central bank. At the same time, guidelines do not have to be followed strictly each month. There will be adaptability on bond maturity intended for procurement by central banks to achieve the goal of 60 billion euro monthly.

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US Dollar Eases

The US currency plunged as market investors gained from outlook that the robust employment report of the US last week reinforced prospects the Fed will lift interest rates before 2015 ends.

The dollar prolonged gains versus the euro to a new high (11 and ½ years) following the impressive non-farm jobs figures for February.

Markets analysts believe consolidation of gains contributed to the positive employment report although it will take time before it returns to the $1.0760 scale.

The shared currency was up 12 percent ($1.08575), based on the Electronic Broking Services (EBS) trading platform of Netherlands. It dropped earlier to $1.0822 in Asian trading marking the euro currency's lowest point since September of 2003. The $1.07620 phase is considered the subsequent major area of support.

The disparity between US Treasury and Euro Zone profits became broader making US investments more appealing to investors looking for high-performing and profitable returns.

Inflation remains muted while payrolls data manifested limited wage growth which is a primary factor in determining rate increase. Observers say an abrupt raise in rates can suppress economic growth.

The euro was ahead 0.30 percent to 131.31 Japanese yen. The dollar rose versus the yen by a reasonable 0.10 percent to 120.96 Japanese yen. This was still off the three-month peak of 121.29 yen last Friday.

Meanwhile, traders also focused on the issues of financial reforms in Greece. According to Dutch Finance Minister and Euro Group President Jeroen Dijsselbloem, Athens should put the last touches to its bailout agenda and implement true reforms.

India’s FOREX Reserves Touch New High

As overseas investors continue pouring in dollars to currency markets of this country, the Reserve Bank of India is amassing currency reserves.

India’s FOREX stocks picked up to another life-time peak at $338.079 billion (US) which is an increase of $3.886 billion during the last week of February because of higher FX assets. Before this period, reserves have increased by $1.023 billion to $334.193 billion, according to figures presented by the Reserve Bank of India.

FOREX assets, which serve as primary component of total reserves, went up by $3.902 billion to $12.200 billion.

These assets are shown in dollar terms and take in the outcome of appreciation as well of depreciation for non-US currencies. These include the common currency, UK pound sterling and Japanese yen.

India’s gold reserves have not moved at $20.183 billion for this week.

On the other hand, special drawing rights plunged by $11.4 million to $4.065 billion while the country’s reserve stand with the International Monetary Fund also decreased by $4.6 million to $1.630 billion for the given period.

The rate of special drawing rights was reduced by $11.4 million during the week at $4.06 billion.

Meanwhile, gold reserves during the week ending February remained stagnant at $20.18 billion. Reserves went up by $805.3 million or $20.18 billion during the first week of last month

Time Is Running out for Greek Bailout

European Central Bank officials are keen on resolving issues with Greece to put the last touches on the bailout concerns. However, time may not be on their side, according to central bank executive board director Benoit Coeure.

The EU forged a pact with Greece last month to extend the rescue program for another four months. Athens was given until next month to specify proposed reforms for implementation and to effectively bring to a close a bailout assessment before the country is given additional assistance.

Greek officials vowed to work together with the European Central Bank, European Commission and International Monetary Fund to facilitate a quick and successful wrapping up.

According to Coeure, a follow-up bargain will be taken up with finance ministers of the euro zone if the review is finished successfully concluded. This will take place if Athens is amenable to this arrangement.

Nonetheless, the ECB official said Greece has to manifest that it is ready to generate growth and reclaim financial autonomy. Right now, Greece needs cash badly because it has been kept out from global markets while international support has been frozen against dropping tax revenues.

Last month, the ECB ceased providing standard lending to Greek commercial banks by rejecting low-rate government bonds as security.

This adds strain to local lenders compelled to obtain emergency liquidity aid from the nation’s central bank.

Coeure mentioned the ECB will recommence regular lending to Greek banks if it finds out the Greek program review will be concluded successfully based on the result of Greek officials negotiations with creditors.

The ECB said it cannot subsidize Greece since this is against the EU law. It will not also permit Greece to increase the limitation on issuance of interim debt so Greek PM Tsipiras can ward off a funding crisis.

Aussie Dollar Stronger in Trading

The Australian dollar performed better in Asia sooner than reports on trade and retail sales.

The currency pair of AUD and USD traded at 0.9630. This was up 0.04 percent while USD and JPY swapped hands at 119.72 or up 0.03 percent. The US dollar index posted numbers of 95.97 down 0.02 percent.

Australia reported a trade balance for January. A$950 million shortfall was noted while retail sales went up 0.4 percent during the same month.

Yesterday, the Greek government made public the auction of 1.138 billion for Treasury bills (six months) and allowed refinancing for matured issues. Treasury bills were sold at a profit of 2.97 percent which is up from 2.75 percent during a previous sale in February.

The meeting set in Cyprus for issues in Greece also includes the following projections for inflation and growth. The duration and scope of the program as well as projections for interest rates can increase again in the euro region.

Gold Prices Fall Pending US Jobless Data

Gold prices were lower as market traders waited for jobless data before the weekend to have a more reliable reading of the economy.

Gold for settlement in April was down 0.3 percent ($1,200.90) per troy ounce at the New York Mercantile Exchange (COMEX Division).

Moody’s and Automatic Data Processing conducted an employment survey which showed business hiring last month as moderate. This was what economic experts predicted.

Sharp increase in employment can boost justification for the US Central Bank to lift up interest rates earlier. This move can affect gold which needs to contend with yield-bearing investments once the costs of borrowing move up.

Securities specialists believe weak data will probably encourage the market to put off rate-hike expectations which can prop up gold. Robust data can bring it forward and depress prices, according to analysts.

Gold was pressured by the rally of US stocks which pulled away investors during the past months. S&P 500 index as well as Dow Jones Industrial Average ended with fresh records while NASDAQ Composite surged above 5000 after almost 15 years.

Depletion of gold-concentrated exchange-traded funds has impacted the precious metal’s price.

The decline brought down other valuable metals lower. The June contract for palladium was down 0.1 percent at $830.65 per troy ounce.

US Dollar Rallies

The US dollar surged to new highs while the euro plunged below $1.11 which is an 11-1/2 year trough before the European Central Bank starts quantitative easing.

The dollar reached its highest level since September of 2003 versus major currencies and increased 0.60 percent (95.957). It even touched 96.041 during trading after the publication of economic data.

The ADP National Employment Report presented 212,000 jobs in the private sector.

The ADP figures showed strength highlighting expectations for an early interest rate increase and a boost for the US currency, according to economic analysts.

The single currency stood at $1.1072 which was 0.90 percent off for the trading day and below the primary support level. Data revealed It declined to $1.1066, the lowest for the euro versus the dollar since September of 2003.

It also decreased to one-month lows against the Japanese currency which was even compared to the US currency (119.72 yen to the dollar).

US dollar index gained approximately 6.3 percent for the first two months of this year aided by better performance of the national economy against other major economies.

The ECB will make public details of its 1.1 trillion euro bond-acquisition agenda which can stimulate other European economies as the Fed prepares to increase cash rates for the first time dating back to 2006.

Euro Weakens while Italian and Spanish Bonds Gain

The single currency waned as it slipped 0.5 percent to $1.1123 in New York markets. Meanwhile, bonds in Italy and Spain gained even as measure of business activity declined before the European Central Bank convenes to thresh out its bond-buying platform. Stocks in the euro region wiped out gains while US equity index futures dropped. Profit on 10-year Spanish notes stumbled (1.35 percent) or four basis points while Italy’s rate slumped 1.39 percent. On the other hand, UK 10-year earnings scaled up which is the highest for 2015.

The European STOXX Index decreased 0.1 percent while the index for Standard Poor’s 500 Index futures decreased 0.4 percent. According to MARKIT, purchasing managers’ index for manufacturing and services in the euro region climbed to a seven-month peak. International equities added over $6 trillion in terms of market value since the middle of October in the midst of monetary reduction and indications of a stronger US economy. Private employment report provided by ADP Research Institute will show US firms adding more workers to February payrolls.

On the other hand, the Institute for Supply Management revealed a non-manufacturing index that plunged.

The single currency fell against majority of major currencies and weakened 0.5 percent to 133.12 Japanese yen. It dropped significantly versus the New Zealand dollar.

Bonds in Spain, Italy and Portugal edged higher. Germany’s 10-year bonds hardly moved with yield recorded at 0.37 percent.

The Ukrainian currency increased 8.1 percent and extended a 9.3 percent progress. The National Bank of Ukraine increased the refinancing rate to from 19.5 to 30 percent.