Forex - Yen weaker ahead of retail sales, jobs, household spending

Category: Forex

The yen eased in Asia on Monday with spending and jobs data ahead in Japan this week.USD/JPY changed hands at 113.48, up 0.32%, while AUD/USD traded at 0.7506, down 0.04%.In Japan, household spending for February is due on Tuesday with a fall of 1.5% seen year-on-year. At the same time, the unemployment rate is expected to hold steady at 3.2%, while retail sales are expected to show a 1.7% gain year-on-year.In the week ahead, investors will be awaiting Friday’s U.S. jobs report for March. The nonfarm payrolls report is viewed as the clearest indicator of how the U.S. economy is performing.Wednesday’s euro zone inflation report will also be in focus and investors will be closely watching Friday’s data on Chinese manufacturing and service sector activity.Markets in Australia, Hong Kong, London, Frankfurt, Paris and Milan will be closed for Easter Monday. Later on the day, the U.S. is to release reports on personal spending and pending home sales.The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 96.17.Last week, the dollar edged higher against the other major currencies in thin trade on Friday as an upward revision to U.S. fourth quarter growth underpinned expectations for an interest rate increase in the coming months.The Commerce Department fourth quarter gross domestic product was revised up to an annualized 1.4% from last month’s estimate of 1% growth.Economists had expected an unchanged reading. The data came after hawkish comments by Federal Reserve officials earlier in the week raised the prospects that the central bank could act soon to raise interest rates.St. Louis Fed President James Bullard said on Wednesday that policymakers should consider a rate hike at their next meeting in April. Philadelphia Fed President Patrick Harker said that there is a strong case to continue to raise interest rates and added that he would like to see three rate hikes before the years end.Separately, Chicago Fed President Charles Evans said he expects two more rate hikes this year, if the economy remains on track.Higher interest rates would boost the dollar by making it more attractive to yield seeking investors.

NYMEX crude up in early Asia with producers meeting looming in April

Category: Commodities

Crude oil posted early gains in Asia with a key meeting on a proposal to freeze output by major producers looming next month.On the New York Mercantile Exchange, crude oil for delivery rose 0.81% to $39.77 a barrel.In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.Developments surrounding a potential deal between OPEC and non-OPEC producers to cap output will also be in focus. Markets in Australia, Hong Kong, London, Frankfurt, Paris and Milan will be closed for Easter Monday.Later on Monday, the U.S. is to release reports on personal spending and pending home sales.Last week, oil futures settled lower on Thursday, as a massive build in U.S. crude inventories helped prices tally their first weekly loss in six weeks.The crude oil market remained closed Friday in observance of the Good Friday holiday.The U.S. benchmark came off the lowest levels of the session in late trade after oilfield services provider Baker Hughes said the number of rigs drilling for oil in the U.S. fell by 15 last week to 372. The report follows an increase of one rig the week before, which marked the first oil-rig count rise of the year.According to the U.S. Energy Information Administration, crude oil inventories rose by a more-than-expected 9.4 million barrels last week to an all-time high of 532.5 million barrels.Since falling to 13-year lows at $26.05 on February 11, U.S. crude futures have rebounded by approximately 45% as a decline in U.S. shale production boosted sentiment. However, analysts warned that market conditions remained weak due to an ongoing glut.Elsewhere, on the ICE Futures Exchange in London, Brent oil for May delivery shed 3 cents, or 0.07%, on Thursday to close at $40.44 a barrel, after slumping to a daily low of $39.22, a level not seen since March 16.Officials from the Paris-based International Energy Agency (IEA) admitted on Thursday that a highly anticipated output freeze between four major producers could essentially be "meaningless".Producers from the Organization of the Petroleum Exporting Countries and non-members are due to meet on April 17 in Qatar discuss the output freeze. But it isn’t clear exactly which, or how many, OPEC and non-OPEC members will attend the meeting.Brent futures are up by roughly 45%, since briefly dropping below $30 a barrel on February 11. Short-covering began in mid-February after Saudi Arabia and fellow OPEC members Qatar and Venezuela agreed with non-OPEC member Russia to freeze output at January levels, provided other oil exporters joined in.