Dollar passes ¥118 as Asian stock markets climb

The dollar climbed 0.5% against the yen in Asian trade Tuesday, as diminished risk aversion led to a rise in Asian stocks and prompted investors to exit the perceived safety of the Japanese currency.

The dollar USDJPY, +0.76%  was at ¥118.39 compared with ¥117.57 late Monday in North America.

The euro EURUSD, -0.22%  was at $1.1575 from $1.1608 and at ¥136.83 from ¥136.07. Against the Swiss franc EURCHF, -0.08%  , the euro was steady but still not far off parity, at 1.0206 francs. 

The dollar USDCHF, +0.11%  was also little changed against the Swiss currency, around 0.8813 francs.

The WSJ Dollar Index BUXX, +0.32%  , a measure of the dollar against a basket of major currencies, was up 0.32% at 84.14.

KLSE Stock Recommendations

MARKET UPDATES :

Malaysia’s export of crude palm oil in 2014 slipped to 17.27 million tonnes, worth RM44.43 billion, against an offtake of 18.14 million tonnes, valued at RM45.26 million, registered in 2013.Output rose to 19.67 million tonnes in 2014 from 19.22 million produced in 2013, said the Malaysian Palm Oil Board (MPOB).Chairman Datuk AR Wan Khair-il Anuar Wan Ahmad said exports this year was expected to hover around that of last year’s level.“It will depend on demand from importing countries,” he told Bernama when commenting on the latest export figures.Meanwhile, Phillip Futures Sdn Bhd said demand for CPO was likely to record a marginal increase only in 2015 in view of weaker demand.

STOCK RECOMMENDATION :

BUY VS INDUSTRY ABOVE 3.070 TARGET 3.100 3.150 SL 3.000

KLSE IForex Recommendations

TRADING TIPS :

GBP/USD hit 1.5234 during European morning trade, the session high; the pair subsequently consolidated at 1.5177, adding 0.18%.The dollar remained broadly supported after the Swiss National Bank abandoned its three- year old 1.20 per euro exchange rate cap in a shock move last Thursday.In addition, the University of Michigan said, in a preliminary report on Friday, that its consumer sentiment index rose to a 11-year high of 98.2 this month from 93.6 in December, compared to expectations for a rise to 94.1.The pound had come under pressure last week after data showed that the annual rate of consumer inflation in the U.K. slowed to 0.5% last month from 1.0% in November.The slowdown in inflation underlined expectations that the Bank of England will keep interest rates on hold at record lows for most of this year.

INTRADAY OUTLOOK
Support: 1.5052
Resistance: 1.5101

RECOMMENDATION:
1. Buy GBP/USD Above 1.5103-TG: 1.5123/1.5153 SL 1.5073
2. Sell GBP/USD Below 1.5050-TG: 1.5020/1.4990 SL 1.5080

INTRADAY OUTLOOK
Immediate Support: 1.1548
Immediate Resistance: 1.1620

RECOMMENDATION:
1. Buy EUR/USD Above -1.1622 TG: 1.1642/1.1672 SL 1.1592
2. Sell EUR/USD Below -1.1546 TG:1.1526/1.1496 SL 1.1576

KLSE Comex Recommendations

INTERNATIONAL COMMODITY NEWS :

Oil markets dipped on Tuesday as China’s economic growth for 2014 undershot a government target and hit its weakest annual expansion in 24 years, adding to worries in energy markets already suffering from slowing demand and oversupply.The world’s second- largest economy grew 7.4 percent last year, China’s National Bureau of Statistics said, less than the target of 7.5 percent. Growth in the fourth quarter held at its weakest in nearly six years, although coming in slightly better than expected at 7.3 percent.



TRADING STRATEGY :

BUY GOLD ABOVE 1282 TARGET 1287 1293 SL 1276
SELL GOLD BELOW 1271 TARGET 1266 1260 SL 1277

Gasoline Market Update

Nymex reformulated gasoline blendstock for February RBG5, +3.54%   — the benchmark gasoline contract — was flat at $1.3580 a gallon, while February diesel traded at $1.6649, 7 points lower.