Forex – Dollar Mixed as PMIs Show World Economy Still Struggling

© Reuters.  © Reuters.

Investing.com — The dollar was mixed after early trading in Europe on Tuesday as the first shots in a barrage of economic data failed to trigger any dramatic moves in major currencies.

In Asian trading, for China came in slightly below expectations, in what analysts called evidence of ongoing factors holding the economy back, such as the lack of a trade deal with the U.S. and the threats to exports of high-value 5G goods and services.

“These uncertainties make us strongly believe that the Chinese government will continue its fiscal stimulus to support industrial sectors through infrastructure stimulus, and will provide enough credits to smaller private firms to keep them running and so stabilise the job market,” ING analyst Iris Pang said in a blog post.

The data pushed the slightly lower, along with the and .

The Chinese data were followed by the first reading for French in the first quarter. As with the U.S. numbers last week, a solid headline number of 0.3% quarterly growth was made to look weaker by a strong contribution from inventories, which would normally be reversed in successive quarters.

There was less ambiguity in Germany’s consumer confidence report, where ’s index stayed unchanged from March’s level.

An estimate of Eurozone is due at 05:00 AM ET (0900 GMT), while German data for April are also due before then.

At 03:00 AM ET (0700 GMT), the was at $ 1.1192, extending a tentative and modest recovery falling to a two-year low last week.

The , which measures the greenback against a basket of six major currencies, was at 97.505, around 0.2% where it was a day earlier.

The was also a touch higher despite a report in The Sun newspaper that Prime Minister Theresa May is to face an emergency meeting of local party heads at which she will likely be asked to stand down. The meeting will take place in June after the European parliament elections, at which May’s Conservatives appear likely to haemorrhage support to the newly-formed Brexit Party.

Of importance to the future course of Brexit is a meeting later today by the opposition Labour Party’s national executive committee, which has to decide whether or not to include a commitment to a second referendum in its manifesto for the European elections, in the teeth of opposition from leader Jeremy Corbyn.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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2 dead, 4 injured in shooting at UNC Charlotte, EMS says

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Two people are reported dead and four wounded in a shooting Tuesday at the University of North Carolina-Charlotte. Mecklenburg EMS confirmed the casualties. The suspect is in custody, CBS Charlotte affiliate WBTV reports.

Two people suffered life-threatening injuries and two others suffered non-life-threatening injuries, according to Mecklenburg EMS.

The school is on lockdown, the school’s website said.

UNCC senior Shamar Crosby described it to CBSN as “madness.”

UNCC Emergency Management sent a tweet saying “Run, Hide, Fight. Secure yourself immediately. Monitor email and emergency.uncc.edu.”

This is a developing story. Check back for updates.

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Forex – U.S. Dollar Declines for Third Day as Fed Kicks off Policy Meeting

© Reuters.  © Reuters.

Investing.com – The U.S. dollar fell against major rivals on Tuesday, dropping for a third-consecutive session, as signs of cooling inflation bolstered market expectations that the Federal Reserve will cut rates this year.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.3% to 97.34 by 11:10AM ET (15:10 GMT).

Policymakers kicked off a two-day meeting on Tuesday that is widely expected to result in no changes to when the decision is announced a day later.

The Fed changed its tune this year as concerns over global growth and weak inflation caused it to retreat from prior forecasts that it would hike rates twice in 2019 and be “patient” with further tightening.

But markets have gone further, pricing in more than a 60% chance that the Fed will in fact cut interest rates in December, according to Investing.com’s .

“With the U.S. economy experiencing a Goldilocks period of firm growth and benign inflation, the focus this coming Wednesday will be on how far the Fed pushes back against the market view that they will be forced to cut rates later this year,” James Knightley, chief international economist at ING, said in a preview to the Fed decision.

The dollar began its current stretch of declines last Friday amid signs of weakening price pressures. Inflation data released with first-quarter growth numbers last week and the core personal consumption expenditures price index for March – generally considered the Fed’s preferred inflation measure – on Monday have seen the dollar retreat from near two-year highs.

In currency pairs, the traded higher against the dollar as better-than-expected in the euro zone boosted the single currency.

got a boost on reports that cross-party talks between ruling Conservatives and the opposition Labour Party over Brexit, the U.K.’s departure from the European Union are progressing positively. Reuters cited one Labour official as saying that both sides were working on the “nuts and bolts” of an agreement.

In Asia, Tokyo markets are closed this week for a holiday, which analysts say exacerbates volatility due to the lack of liquidity, but the still managed to strengthen to three-week highs.

An unexpected drop in China’s outweighed the generalized weakness in the greenback, leaving the unchanged on the day, although the data did force a sustained drop in the .

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Samsung unveils TV that can switch to vertical mode

Samsung has unveiled a TV that switches from a horizontal, landscape-style orientation to vertical – so it can easily display smartphone content.

The 43in device is called Sero and comes with an integrated easel-like stand upon which the screen pivots.

It will go on sale in South Korea towards the end of May and cost 1.89m won (£1,250).

One TV analyst said it was an interesting concept – but might have limited applications.

Sero will come with a microphone and Samsung’s virtual assistant Bixby built in. It can also be set up to display photographs, a clock face or other images.

Among the content users might choose to watch on it may be a new series of shows by Snapchat, designed for mobile consumption and set to be launched in May.

It was an interesting design but faced challenges in the TV market, said Matthew Rubin at market research firm Futuresource.

“The use case for the Sero, beyond that of a regular landscape position TV, is limited, especially with a relatively high price tag,” he said.

“A lot of content from the likes of YouTube is already in landscape mode.

“It is telling that the TV will initially launch in South Korea, which is a market with very high mobile phone usage, so the likely success can be gauged quite early.”

The South Korean tech giant is known for its sometimes experimental TV designs. In 2017, it showed off a TV with a wooden frame that is designed to display artwork and look more like a painting when not in use.

And earlier this year at the CES tech trade show in Las Vegas, the firm unveiled a 75in (190cm) television made of modular micro LED panels.

The BBC has asked Samsung whether the Sero is likely to be released outside South Korea and is awaiting a response.

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BBC News – Technology

China says trade talks with US have achieved ‘much positive progress’

Comments by senior Chinese diplomat, Wang Yi

  • Says hopes both countries can reach a mutually beneficial agreement on trade

ForexLive

Some positive headlines rippling from the US-China meeting in Beijing but there aren’t many details to really back up the headlines here as of yet. Until then, market participants have heard these words one too many a time.

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Dollar awaits China data to gauge global growth pulse

© Reuters. An employee of a bank counts US dollar notes at a branch in Hanoi © Reuters. An employee of a bank counts US dollar notes at a branch in Hanoi

By Wayne Cole

SYDNEY (Reuters) – The dollar was all but flatlining in Asia on Tuesday as investors awaited readings on Chinese manufacturing and the European economy to gauge the pulse of the global economy.

China’s official purchasing management index (PMI) is forecast to hold at 50.5 in April after bouncing in March in what analysts hoped was evidence that policy stimulus was gaining traction in the economy.

A solid report could support risk assets and currencies leveraged to Chinese growth, including the Australian dollar, while pressuring the safe-haven yen.

Figures for economic growth in the Eurozone out later in the session are forecast to show a modest rise of 0.3 percent in the first quarter, but at least that would be up from the previous quarter and may be taken as a hint of stabilization.

Even such tentative growth could squeeze speculators who have been amassing large short positions in the euro, worth a net $ 14.8 billion in the week to April 23.

For now, the euro was steady at $ 1.1184, having edged away from a near two-year trough of $ 1.1110 hit last week.

The dollar was stuck at 111.67 yen, having traded a very tight range with Japan on holiday. Resistance is lined up at the recent top of 112.39, with support at 111.37 and 110.83.

Against a basket of currencies, the dollar was a fraction softer at 97.856, having eased from last week’s near two-year peak of 98.330.

The major hurdle for the dollar remains the Federal Reserve’s two-day policy meeting which ends on Wednesday with a statement and a news conference by Chairman Jerome Powell.

No change in policy is expected but the market is keen to hear how Powell resolves the divergence between solid economic growth and slowing inflation.

U.S. data overnight showed consumer spending enjoyed the sharpest rebound in 9-1/2 years in March, yet core inflation still slowed to a 14-month low.

The core personal consumption expenditures index, the Fed’s favored measure of inflation, slowed to 1.6 percent and further way from the central bank’s 2 percent target.

“A sustained acceleration in core inflation remains elusive and is contributing to low inflation expectations,” said ANZ economist Felicity Emmett. “This is not just an issue for the FOMC, it is a real concern for other major central banks.”

“We expect the dovish tone from central banks to continue for the foreseeable future,” she added. “Given evidence of a recovery in growth, this is very positive for risk assets.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Mexican Senate passes labor bill, key to approving new NAFTA

© Reuters. FILE PHOTO: The flags of Canada, Mexico and the U.S. are seen on a lectern before a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City © Reuters. FILE PHOTO: The flags of Canada, Mexico and the U.S. are seen on a lectern before a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City

MEXICO CITY (Reuters) – Mexico’s Senate approved a bill to strengthen the rights of trade unions on Monday, one of the final steps toward enacting a law that Democratic U.S. lawmakers have insisted must pass before they can proceed to a vote on the revamped North American trade pact.

The bill, which was passed by the lower house earlier in April, enshrines the right of Mexican workers to organize and gives them more control over their contracts.

House Speaker Nancy Pelosi, a Democrat, had called on Mexico to enact the legislation, saying U.S. Congress could not even begin to take up the pact unless Mexico put the new law in place.

Democratic lawmakers say the new United States-Mexico-Canada Agreement (USMCA) must ensure workers in Mexico have the right to unionize, a step that requires new labor laws.

Shortly after passage of the bill, U.S. Trade Representative Robert Lighthizer weighed in with a vote of confidence for the legislation.

“These reforms will greatly improve Mexico’s system of labor justice and are exactly what labor leaders in the United States and Mexico have sought for decades,” he said in a statement.

He added that President Donald Trump’s administration will work with the U.S. Congress and Mexican government to “ensure these reforms are implemented and enforced.”

Critics of the 25-year-old North American Free Trade Agreement, which USMCA would replace, argue that it allowed Mexican wages to stagnate.

The legislation now heads to Mexican President Andres Manuel Lopez Obrador, who has previously voiced his support for the measure, for his signature.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Notebook: Eagles pick up Wentz’s fifth-year option

© Reuters. FILE PHOTO: NFL: New England Patriots at Tennessee Titans © Reuters. FILE PHOTO: NFL: New England Patriots at Tennessee Titans

The Philadelphia Eagles said Monday that they have exercised the fifth-year option on quarterback Carson Wentz for the 2020 campaign.

Wentz will make more than $ 20 million in 2020, though exact figures for fifth-year options won’t be firmed up until a later date.

Wentz, the second overall pick in the 2016 NFL Draft, has passed for 10,152 yards, 70 touchdowns and 28 interceptions in 40 career games. He finished third in MVP balloting in 2017 and passed for a franchise-record 33 touchdowns in 13 games before tearing the ACL in his left knee.

Wentz returned from the injury to play in 11 games last season and passed for 3,074 yards and 21 touchdowns against seven interceptions.

Wentz, 26, is the Eagles’ undisputed starter after Super Bowl-winning backup Nick Foles departed for the Jacksonville Jaguars this offseason.

–The Detroit Lions exercised the fifth-year option of offensive tackle Taylor Decker.

Decker has started all 40 games in which he has played since being the No. 16 overall pick of the 2016 draft.

–Tight end Jacob Hollister is on the move, traded from the New England Patriots to the Seattle Seahawks for a conditional 2020 draft pick, per reports.

Hollister made the 53-man roster as an undrafted rookie in 2017 out of Wyoming and played in 23 games over two seasons with the team.

–Field Level Media

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Sky-High Hedging Costs Are Fueling a ‘Turbo Bid’ for Dollars

© Bloomberg. A pressman aerates a stack of 2017 50 subject uncut sheet of $  1 dollar notes at the U.S. Bureau of Engraving and Printing in Washington, D.C. Photographer: Andrew Harrer/Bloomberg © Bloomberg. A pressman aerates a stack of 2017 50 subject uncut sheet of $ 1 dollar notes at the U.S. Bureau of Engraving and Printing in Washington, D.C. Photographer: Andrew Harrer/Bloomberg

(Bloomberg) — Yield-starved investors outside the U.S. are abandoning their currency hedges on American assets, and that’s good news for dollar bulls.

After factoring in the price of a 3-month forward contract, the yield on benchmark 10-year Treasuries falls to about negative 0.6 percent for euro-based investors. It’s the same story for Japanese bond buyers: Benchmark U.S. debt yields around negative 0.4 percent. That compares with 2.53 percent for those purchasing the note without paying up for protection against currency swings.

Costly hedges have pushed the likes of Nippon Life Insurance Co. to boost its holdings of unhedged foreign bonds. The flip side of the phenomenon is that U.S.-based asset managers are steering clear of shorting the dollar.

Japan- and Europe-based companies and bond funds “throwing currency caution to the wind” is one critical factor behind the greenback’s recent “turbo bid,” according to the Canadian Imperial Bank of Commerce.

“Just put yourself in the shoes of an asset manager in either the Eurozone or Japan that has allocated capital to US assets,” Bipan Rai, North American head of foreign-exchange strategy at CIBC, wrote in a note Monday. “Ask what the incentive is to hedge FX risk given that it offsets your yield pickup.”

Expensive hedging dynamics are one of the reasons why Rai is shifting to be long the dollar on a tactical basis, he said in a follow-up email. The greenback has gained against most of its Group-of-10 peers in 2019, and the Bloomberg touched its highest level of 2019 last week.

Sticking Around

The dynamic could persist for years. Short-term interest rates — which determine the price of currency futures contracts, or forwards — are much higher in the U.S. than in Europe and Japan. For example, the three-month London interbank offered rate for dollars is almost 300 basis points above the comparable rate for euros. The difference has almost doubled in the past two years, raising the cost of shorting the greenback for American fund managers.

Forgoing hedging carries risk, Rai warns. Should the dollar falter, that could spur an exodus from U.S. assets and reignite long-dormant currency volatility, he wrote.

The more “under-hedged positions there are in the market, the more imbalances start to rise,” Rai wrote. “An adverse move against investors that are under-hedged means there’s a very good chance that assets are dumped and FX vols increase.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Winnie-the-Pooh forest up in flames

Fans of “Winnie-the-Pooh” know the beloved bear and his friends live in the “Hundred Acre Wood.” But the real-life forest that inspired the children’s story is Ashdown Forest, which is now being engulfed in flames, the BBC reports.

About 14 acres of Ashdown Forest in Sussex County, United Kingdom, had burned by Sunday night. Six fire crews were on the scene battling the worst of the blaze. The emergency personnel has been scaled back to four crews, a fire service spokesman said.

Ashdown Forest fire
East Sussex Fire and Rescue Service was called on Sunday evening to tackle the blaze which covered 14 acres of the forest, which inspired the Hundred Acre Wood in A.A. Milne’s Winnie-The-Pooh.  Gareth Fuller / AP

“It’s unusual to have a fire of this size at night. This seems to have caught hold before people noticed the fire,” the spokesman said. “The undergrowth was very dry in the forest, despite the recent rain, and the fire caught quite quickly.”

Ashdown Forest was once the home to author A.A. Milne. The “Winnie-the-Pooh” creator lived in the area, near the town of Hartfield, in the 1920s, when he came up with “The Hundred Acre Woods.”

The forest was originally used for deer hunting but it is now under national and international protection because of its wildlife. While Winnie-the-Pooh and friends are just imaginary inhabitants, there are many creatures that live in the woods now suffering from the fire.

90th anniversary of Winnie-the-Pooh
The 90th anniversary of Winnie-the-Pooh was celebrated in the “100 Acre Wood” in Ashdown Forest, in 2016. Matt Crossick

Ground-nesting birds likely saw their eggs and nests destroyed in the blaze, Ashdown Forest Ranger Chris Sutton said. “Reptiles like adders and lizards would not have been able to move fast enough. Large animals like foxes and deer would have been able to move out of the area quite quickly.”

However, “all is not lost,” Sutton said.  “Within four weeks we’ll have grass growing and in six months you probably won’t know too much has gone on here.”

It is not believed that the fire was started deliberately, the BBC reports. In February, the forest suffered two fires which were accidentally started by volunteers during a planned burning.

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