Forex – Yen Pushes Higher; Euro in Focus as ECB Meets

© Reuters.  © Reuters.

Investing.com – The safe haven Japanese yen gained against the U.S. dollar Thursday on a sharp bout of risk aversion, as battles to contain the new pneumonia-like virus in China intensified, although volatility remained limited.

By 03:30 ET (0830 GMT), the yen had climbed 0.2% against the dollar, with trading at 109.56. The Chinese yuan dropped 0.4% against the greenback, with trading at 6.9313. The Futures, which tracks the greenback against a basket of other currencies, was essentially flat at 97.30.

Earlier Thursday, China issued a travel suspension in Wuhan, a city of 11 million at the center of the outbreak of the coronavirus, as its latest attempt to stop the spread of the disease. The virus has killed at least 17 people so far and infected hundreds of people in China, and as far afield as the U.S., Thailand, Taiwan, Japan and the Republic of Korea.

Elsewhere, the pair inched down 0.1% to 1.1087 as traders awaited the European Central Bank (ECB) policy meeting due later in the day. The meeting will be followed by a press conference with President Christine Lagarde.

Economists expect no changes in any of the monetary policy instruments, and the focus will be on the central bank’s outlook and information on its the strategic review.

“In this environment, markets could pay most attention to the comments talking about a tentative stabilization of economic data and some removal of downside risks,” said analysts at Nordea, in a research note, “which in other words would mean less need for immediate easing.”

That said, Nordea doesn’t expect the euro to receive much lasting support from the central bank, “as the bar for the market to price in any notable ECB tightening remains high.”

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.

Let’s block ads! (Why?)

Forex News

Forex – Yen Gains On Weak Export Data, Virus Fears; Yuan Drops

© Reuters.  © Reuters.

By Alex Ho

Investing.com – The Japanese yen gained on Thursday in Asia gained on Thursday in Asia amid weak export figures and fears about the mysterious virus in China.

The EUR/USD pair inched down 0.1% to 1.1082 as traders awaited the European Central Bank (ECB) policy meeting due later in the day. The meeting will be followed bya press conference with President Christine Lagarde.

The USD/JPY pair lost 0.3% to 109.53 amid ongoing fears about the widening coronavirus outbreak, as authorities ramped up efforts to contain the virus ahead of the weeklong Lunar New Year holiday next week.

The World Health Organisation will decide later on Thursday whether to declare the situation a global health emergency.

On the data front, Japanese exports for December fell 6.3% in December as compared to a year before, data from country’s Ministry of Finance data showed. That was far lower than the expected 4.2% decrease.

The USD/CNY pair lost 0.4% to 6.9283.

The Australian dollar rose 0.2% to 0.6858 after a surprise drop in unemployment.

Meanwhile,the U.S. dollar index that tracks the greenback against a basket of other currencies last traded at 97.335, up 0.04%.

The index traded higher overnight after the National Association of Realtors said pending home sales rose 3.6% to a 5.54 million annual rate. That was the strongest pace of growth since February 2018.

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.

Let’s block ads! (Why?)

Forex News

Forex – Dollar Edges Higher on Bullish Housing Data

© Reuters.  © Reuters.

Invesing.com – The dollar edged higher against its rivals Wednesday, as bullish housing data strengthened expectations that the U.S. economy will remain on solid footing.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.06% 97.58.

The National Association of Realtors said rose 3.6% to a 5.54 million annual rate. That was the strongest pace of growth since February 2018.

Lawrence Yun, chief economist at the National Association of Realtors, attributed the higher level of housing activity to strong job creation, high consumer confidence and low mortgage rates.

A sharp uptick in the pound, meanwhile, kept the dollar on the backfoot as positive U.K. economy data cooled expectations that the Bank of England will cut rates at the end of the month.

rose 0.59% to $ 1.312.

But some analysts see limited upside for cable, arguing that seasonal factors will likely weigh on the sterling.

“There is little evidence so far of a broad based rebound in sentiment following the general election plus seasonal factors tend to weigh on GBP through February and March,” Bank of America said.

With just a day ago until the European Central Bank meeting, the euro was largely flat against the dollar at $ 1.109.

rose 0.62% to C$ 1.315 after the Bank of Canada kept its benchmark rate on hold, but left the door open to a future rate cut, saying that it will monitor data to gauge whether the recent slowdown in domestic growth has accelerated.

“Today’s statement makes us more comfortable with our call for a rate cut in April, and market odds of a move by mid-year are now slightly above 50%,” RBC said

The was also knocked by a fall in oil prices after the International Energy Agency warned of a surplus in oil supplies by 1 million barrels per day in the first half of this year.

was flat at Y109.87 on subdued safe-haven demand despite reports that the death toll from the Coronavirus had increased to 17, raising fears of contagion.

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.

Let’s block ads! (Why?)

Forex News

ECB to launch review that will redefine its mission and tools

By Francesco Canepa

FRANKFURT (Reuters) – European Central Bank President Christine Lagarde is set to launch a broad review of its policy on Thursday that is likely to see her redefine the ECB’s main goal and how to achieve it.

The euro zone’s central bank has fallen short of its inflation target of just under 2% for years despite increasingly aggressive stimulus measures under Lagarde’s predecessor, Mario Draghi.

ECB rate-setters are not expected to make any policy change this week but simply stand by their pledge to keep buying bonds and, if needed, cut interest rates until price growth in the euro zone heads back to their goal.

Lagarde will, however, announce the start and scope of the ECB’s first strategic review since 2003, which will last for most of the year and span topics from the inflation target to digital money and the fight against climate change.

Investors will be looking for clues to whether the review will see Lagarde cement her predecessor’s legacy of monetary largesse, or if she will use it to acknowledge worries that years of easy credit have fueled financial bubbles.

“(Thursday’s) meeting will be important in assessing whether the aim of reconsidering the inflation target has retained the dovish motivation focus that Draghi had tried to give it,” said Greg Fuzesi, an economist at JP Morgan.

The ECB will announce its monetary policy decision at 1245 GMT and Lagarde will hold her second news conference as the central bank’s chief from 1330 GMT.

TARGET

Changing the ECB’s formulation of price stability — currently defined as an annual inflation rate below, but close to, 2% over the medium term — will be the focal point of the review.

The ECB could signal its commitment to boosting inflation by raising the goal to 2% and spelling out that it will take any undershooting just as seriously as an overshoot.

“Our inflation target must be symmetric. If the central target is seen as a ceiling, we have less a chance of meeting it,” ECB policymaker Francois Villeroy de Galhau said recently.

But policy hawks on the Governing Council, who have long called for the ECB’s money taps to be shut off, will not go down without a fight.

Some of them favor creating a tolerance band around 2%, which would lower pressure on the ECB to act, while others would leave the target unchanged or even cut it.

Rate-setters will also debate the pros and cons of their tools, such as sub-zero rates and massive bond purchases, which have been credited with staving off the threat of deflation but at the cost of an unprecedented rise in house and bond prices.

The ECB regularly lauds those instruments, recently estimating that without them, the euro zone economy would have been 2.7 percentage points smaller at the end of 2018.

But minutes of the December meeting show growing discomfort about their side effects. That led to calls by some policymakers to give housing costs greater weight in inflation calculations and take into account households’ perceptions of price growth, which is generally higher than official figures.

POLICY ON HOLD

While these matters are addressed, the ECB is expected to leave its monetary policy on hold.

That would leave it buying 20 billion euros ($ 22.16 billion) worth of bonds every month and charging banks 0.5% on their idle cash for most of the year.

“While the ECB reviews its strategy, we see no change in policy settings,” economists at Morgan Stanley (NYSE:) wrote in a note.

Euro zone data has improved recently, leading economists to believe the export-focused economy has weathered the storms of the global trade war.

Furthermore, a trade deal between the United States and China, and the prospect of an orderly Brexit are lessening the two main risks the ECB had said were clouding the horizon.

But the outlook for euro zone growth and inflation remains lukewarm, meaning the ECB is likely to strike a cautious tone by reaffirming its warning about “downside risks” to the economy.

“It is likely too early to sound the all-clear, or change the risk assessment to ‘balanced’,” Societe General economist Anatoly Annenkov said.

($ 1 = 0.9025 euros)

Let’s block ads! (Why?)

Economy News

Chinese city Wuhan suspends outbound flights and rail services

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed

Mavericks C Powell suffers ‘severe’ Achilles injury

Dallas Mavericks starting center Dwight Powell suffered a “severe” right Achilles injury during Tuesday night’s 110-107 home loss to the Los Angeles Clippers, coach Rick Carlisle confirmed.

The 28-year-old collapsed to the floor when his right leg appeared to give out while he was attempting to drive to the basket with about three minutes remaining in the first quarter.

“It’s a somber night with Dwight’s situation,” Carlisle said. “He’s going to have an MRI (Wednesday). Right Achilles injury feared to be severe, but we won’t know for sure until the diagnostic tests are done. It’s a real tough one.”

In his sixth NBA season, Powell is averaging 9.4 points, 5.7 rebounds and 26.5 minutes per game. He is shooting 63.8 percent from the field through 40 games, with 37 starts.

Powell was drafted in the second round by Charlotte in 2014. He was traded to the Cleveland Cavaliers and then to the Boston Celtics before making his NBA debut with the Celtics on Nov. 14, 2014.

Boston traded Powell and Rajon Rondo to the Mavericks for Jae Crowder, Jameer Nelson, Brandan Wright and two draft picks on Dec. 18, 2014.

Through 371 career games (89 starts), the 6-foot-10 Powell has averaged 7.7 points and 4.6 rebounds.

He signed a three-year, $ 33 million contract extension with the Mavericks in July 2019.

A Toronto native, Powell was expected to help Team Canada attempt to qualify for the 2020 Olympics in Tokyo.

–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.

Let’s block ads! (Why?)

Sports and General News

U.S. deports Honduran family with sick kids to Guatemala

Update: On Monday night, a federal judge in McAllen, Texas, denied a request to halt the deportation of the Honduran mother and her two children. The family was sent to Guatemala on Tuesday, according to a lawyer familiar with the case and the children’s father. In Guatemala, they will be required to choose between seeking refuge there or returning to Honduras. Read the original story below.


New York — Lawyers and advocates are mobilizing to try to stop U.S. immigration officials from deporting a young Honduran mother and her two sick children to Guatemala, where the Trump administration has sent dozens of asylum-seekers in recent weeks as part of a controversial deal with the Central American country.

The 23-year-old migrant mother and her two daughters — a 6-year-old and 18-month-old baby — were apprehended at the U.S. border in Texas in December and are slated to be sent to Guatemala on Tuesday, according to court records. The family’s lawyers say the two girls, who have been sick and were recently hospitalized, are in no condition to be deported to Guatemala.

A group of lawyers, led by attorneys from the group ProBAR, which provides legal assistance to asylum-seekers, sued the government last week in U.S. District Court in McAllen, Texas. They asked the court to block officials from sending the family to Guatemala and to order Customs and Border Protection (CBP) to release them so the children can continue further medical treatment at a local shelter. 

But the government said in a filing that it still plans to move forward with its plans to send the family to Guatemala on Tuesday, or whenever the mother and children have received medical clearance to travel.

screen-shot-2020-01-20-at-10-04-01-am.png
The government says the three family members are set to be deported on Tuesday, or when cleared for travel by a doctor. U.S. District Court, Southern District of Texas

The 1-year-old girl has been undergoing treatment at a hospital near McAllen, but the government said she is expected to be released soon. The mother and the 6-year-old, the government said, do “not appear” to be “suffering from medical conditions that would prevent their removal” to Guatemala.

But the family’s lawyers disagree with this assessment and argue that continued detention and potential deportation are “inadvisable and dangerous” because of the children’s health. The 6-year-old has been diagnosed with the flu, and the infant has a fever and diarrhea, which the lawyers say stems from “inadequate” food and “unsanitary” living conditions while in CBP custody. 

The woman’s husband and the children’s father, who has been in the U.S. for more than a year, is pleading with the government not to deport his family.  

“If they return my family to Honduras, I’m expecting the worst. My daughters and my wife could be harmed,” the 26-year-old father told CBS News in Spanish. “And Guatemala is almost the same or worse because they don’t know anyone there.”

CBS News is not disclosing the names of the family members since they are subject to ongoing immigration proceedings. The three are identified by initials in court filings.

CBP did not respond to a series of questions about the family’s case, including whether the family is still going to be processed for removal to Guatemala on Tuesday.

If the family is deported to Guatemala, it will join 209 asylum-seekers from Honduras and El Salvador — including more than 50 children — who have been sent there by the U.S. under an “Asylum Cooperative Agreement” with the Guatemalan government. Those subject to the agreement are denied access to America’s asylum system at the U.S.-Mexico border and required to choose between seeking refuge in Guatemala or returning home. 

The deal has elicited strong criticism from advocates, who point to Guatemala’s skeletal asylum system and the fact that hundreds of thousands of Guatemalan families have trekked north to the U.S. southern border in the past two years, many of them fleeing endemic violence and extreme poverty. 

Last week, the American Civil Liberties Union and other groups filed a lawsuit to try to block the administration from enforcing the agreement with Guatemala, as well as similar deals the U.S. forged with Honduras and El Salvador.


“This would break anyone’s heart” 

img-6157.jpg
The 1-year-old girl receiving medical treatment, with an IV in her arm.

The mother fled Honduras with her daughters in September 2019 after a gang demanded that she pay a “protection fee” for her small grocery store, according to her husband. He said the gang made several threats.

The mother and her children reached the U.S.-Mexico border in late December. During their first attempt to cross, they were kidnapped by an unknown group, the father said, noting that those who kidnapped his family asked him to pay $ 200 per person.

After pleas from the mother, the family was ultimately released, the father said. Two days later, a day before New Year’s Eve, the three again tried to cross the border and presented themselves to Border Patrol agents. They were then sent to the CBP facility in Donna, Texas, where officials detain migrants who the government intends to send to Guatemala or who are deemed ineligible for asylum under a sweeping restriction allowed by the Supreme Court.

Despite expressing fear of persecution, the mother was not referred for a so-called “credible fear” interview, the first test migrants must pass to pursue asylum claims in the U.S. Instead, the family was given what their attorneys called a “Hobbesian choice.”

“[Officials] presented the mother with a Hobbesian choice: return to Honduras from which she fled with her children in fear for their lives or be sent to Guatemala where she has no family, friends, contacts or job prospects and where she and her children likely will suffer from the same violence that compelled them to leave Honduras,” a filing by the family’s lawyers reads.

The father said his wife described the same occurrence over a phone call this week. “Those were the only options,” he added. “They were not given an option to ask for asylum here in the U.S.”

Fearing a return to “known threats” in Honduras, the mother chose to be sent to Guatemala, the family’s lawyers said. The government said the mother then underwent a so-called “threshold screening” with an asylum officer who determined she was not exempt from the U.S.-Guatemala deal.   

Like other migrants subject to this policy, the mother did not have access to counsel before or during the secreeing. One of the family’s lawyers said she tried to talk to her clients at the CBP facility in Donna, but was denied entry.

In their lawsuit, the lawyers also said the family’s continued detention, which has now reached more than 20 days, violates requirements set forth by the Flores Agreement, a court settlement that governs the care of children in U.S. immigration custody. The agreement mandates the government to release children from custody as expeditiously as possible and to detain them in the least restrictive settings as possible. 

The government in its legal filing denied that the family’s continued detention violates the Flores Agreement. 

The children’s father said the family’s detention and imminent deportation to Guatemala has taken an emotional toll on his wife. 

“She’s very bad emotionally. I know her. She’s a very happy person. I’m also a very happy man,” he said. “But with this situation — I don’t cry, because I’m ashamed, but when I’m alone in my bed, I tear up looking at photos of them and us together in Honduras. This would break anyone’s heart.”

Let’s block ads! (Why?)

World – CBSNews.com

Finding value in fear

It is not every day that markets get caught out by overwhelming fear

Fear
ForexLive

The new coronavirus outbreak brings back many lessons in markets and one of them is to not be too blinded by the fear.

There is no doubt that things may still get worse before they get better, especially with the fact that the hectic travel period during the Chinese New Year holidays is yet to come.

But ultimately, it is all about trying to identify how bad things will really be. We’re already seeing markets start to be a little more greedy over the past few hours – as compared to the pessimistic behaviour seen in trading yesterday.

US futures are up by ~0.5% while the Shanghai Composite index has erased gains of over 1% earlier to hit session highs now, keeping near flat levels on the day.

As with all such related fears and geopolitics, they will eventually pass at some point in time.

Instead, the real fear in all of this is whether or not the new coronavirus outbreak is going to have a more profound impact (longer-term) on markets. In this case, perhaps it may chip a little away at the Chinese economy this year.

However, unless this threatens to be develop into something like the SARS virus outbreak back in 2002-03 and plague markets with some element of uncertainty for a few months, expect markets to quickly move on from the pessimism here.

Sure, there may still be some days in the near-term that fear may creep back in.

But don’t squint your eyes and cower in terror. Instead, open your eyes and look for value. Eventually, there will be a turning point and that’s when fading the fear pays off.

Let’s block ads! (Why?)

Forexlive RSS Breaking education feed

Forex – Dollar Edges Higher; Loonie Downside Risk as BoC Meets

© Reuters.  © Reuters.

Investing.com – The U.S. dollar edged higher Wednesday as traders took a calmer view of the emergence of the pneumonia-like virus in China, but its gains were minimal and caution was still abundant.

At 04:10 ET (0910 GMT), the Futures, which tracks the greenback against a basket of other currencies, was up 0.1% at 97.42. The yen dropped 0.1% against the dollar, with trading at 109.97. traded 0.1% at 1.1079 and at 1.3043, down 0.1%.

As of early Wednesday, Chinese authorities confirmed that at least nine people, all in Wuhan, have died after contracting the virus and a total of 15 medical personnel have been infected.

“The obvious comparison people are making is with the SARS. While we still don’t know how lethal the new virus will be, my sense at the moment is that markets are not taking it as dire as SARS,” said Kyosuke Suzuki, director of currencies at Societe Generale (PA:), in a Reuters report.

“Back then, virtually every company was banning travel to Hong Kong. We haven’t seen that kind of reaction yet,” he said.

The 2002 SARS pandemic resulted in more than 8,000 people across 37 countries being affected, with around 800 deaths.

Looking ahead, the Bank of Canada holds a rate-setting meeting later Wednesday, markets are widely expecting no changes in the policy rate.

However, the Canadian dollar has downside risk on the back of this meeting, according to Francesco Pesole, an analyst at ING, in a research note.

“Investor sentiment around the prospect of BoC easing has shifted significantly in the past few months,” he said. But “we suspect that a downward revision to the GDP forecasts .… may be on the cards. With any significant change in the monetary policy stance unlikely for now, those projections have the potential to determine most of the market reaction.”

At 04:05 AM ET (0905 GMT), traded at 1.3077, up 0.1%.

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.

Let’s block ads! (Why?)

Forex News

Chinese stocks erase earlier losses, Shanghai Composite now up on the day

Investors are brushing aside the virus fears

SHCOMP
ForexLive

The Shanghai Composite index was down by around 1% earlier today but has recovered strongly over the past few hours as China vows to take measures to prevent and control the new coronavirus outbreak.

Markets were largely gripped by fear in trading yesterday but that seems to be receding now as we are seeing more optimistic tones across asset classes.

US futures are up by ~0.5% while bond yields are also creeping back higher as we start to move towards European trading. Meanwhile, gold is also down by 0.3% to $ 1,553.10.

In the currencies space, USD/JPY is sitting higher slightly back above the 110.00 level as investors are seemingly less fearful about the situation currently.

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed