Forex – U.S. Dollar Little Changed, AUD/USD Pair Rises Ahead of Jobs Data

© Reuters.  © Reuters.

By Alex Ho

Investing.com – The U.S. dollar was near flat on Monday in Asia, while the Aussie dollar gained ahead of the release of the country’s latest jobs data.

The U.S. dollar index was near flat at 97.365. Figures released by the Commerce Department on Friday showed U.S. housing starts in December were well above economists’ estimates for 1.38 million and were the biggest gain in 13 years.

Retail sales were also on the rise and a gauge of manufacturing activity rebounded to its highest in eight months.

The positive data reduced chances that the Federal Reserve would slash rates when it meets later this month.

Meanwhile, the pair rose 0.2% to 0.6886 as traders awaited Australian jobs data due on Thursday. The Reserve Bank of Australia meets next month and might announce further stimulus following three rate cuts last year amid widespread bushfires.

The pair also rose 0.2% to 0.6620.

The gained 0.2% against the U.S. dollar after jumping late last week on strong economic growth figures. China reported that its gross domestic product grew 6% in the fourth quarter, meaning economic growth slowed to 6.1% in 2019. While this is in line with expectations, it’s also the country’s weakest growth in nearly three decades.

The pair was near flat at 110.17.

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.

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US futures keep a little higher ahead of North American trading

S&P 500 futures up by 8 points currently

E-minis 17-01
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The equities market continues to be in a more cheerful mood as we look to wrap things up on the week. Investors are still using the US-China trade deal as a platform to squeeze more gains as we navigate through earnings season in Wall St.

The more steady risk tone is helping to keep currencies a little more quiet too with USD/JPY keeping around 110.15-25 during the European morning session.

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U.S. to Lift Yuan Manipulator Tag Ahead of China Trade Deal

© Reuters.  U.S. to Lift Yuan Manipulator Tag Ahead of China Trade Deal © Reuters. U.S. to Lift Yuan Manipulator Tag Ahead of China Trade Deal

(Bloomberg) — President Donald Trump’s administration plans to lift its designation of China as a currency manipulator, people familiar with the matter said, removing an obstacle to a trade deal the two nations are set to sign this week.

The Treasury Department will make the move in a semi-annual report, expected to be released soon, after being delayed as the U.S. and China finalize a “phase one” trade pact, said the people, who spoke on condition of anonymity.

Treasury Secretary Steven Mnuchin in August first formally labeled China a currency-manipulator, a move that further escalated the trade war with Beijing after the country’s central bank allowed the yuan to fall in retaliation to new U.S. tariffs.

A Treasury Department spokeswoman declined to comment. A reporter for Fox Business Network earlier tweeted the news about Treasury’s plans.

Now that a deal is in sight, the designation is being lifted. The administration had at one point considered maintaining the label and instead announcing it would monitor the yuan with the possibility of lifting the designation in August of this year, according to the people.

The offshore strengthened to 6.883 per dollar on Monday.

Mnuchin’s August 2019 announcement prompted authorities in Beijing to increase transparency around how they manage the yuan. Some of that data has provided support for the Treasury’s view that the People’s Bank of China engages in competitive devaluations of its currency, the people said.

But economists have criticized the U.S. decision to call China a manipulator. The International Monetary Fund said in September the yuan is fairly valued and that there’s no evidence of manipulation. China’s weakening currency could also be attributed to a slowdown in growth.

China also doesn’t meet the criteria outlined in a 2015 U.S. law for formally designating a country a currency-manipulator. Mnuchin instead relied on a 1988 trade law that has a looser definition of currency manipulation to justify the claim. He did so after the yuan broke the 7 per dollar level for the first time since 2008, drawing Trump’s ire. Mnuchin had resisted using the label in the previous five reports he released.

The August announcement was made in a press release, outside the normal issuance of the report. That left currency strategists and policy experts without a full explanation for the decision. Treasury’s currency report examines 20 countries for possible currency manipulation, a number that was increased from 12 in May.

Trump was involved in drafting the press release, which on his direction refers to China as a “Currency Manipulator,” using capital letters, one of the people said.

When Treasury officials briefed congressional committees in August on their decision, they read quotes by Chinese leadership officials stating that they had all the necessary tools to prop up the yuan. According to the Treasury officials, those statements prove intent and serve as evidence that the country was manipulating its currency, two people familiar with the briefings said.

Mnuchin in October said that if a trade deal with China were signed, he would consider removing the manipulator tag, saying that signing an agreement would be “a big step in the right direction.”

(Updates with market move in sixth paragraph.)

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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Forex – U.S. Dollar Flat Ahead of Inflation Data, Trade Deal Signing in Focus

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Investing.com – The U.S. dollar was flat on Monday in Asia ahead of the release of the latest inflation data. The potential signing of the phase one trade deal later this week is also in focus.

The U.S. dollar index that tracks the greenback against a basket of other currencies last traded at 97.078 by 11:35 PM ET (03:35 GMT), unchanged from yesterday’s close.

The latest U.S. inflation figures, due on Tuesday, are expected to remain broadly in line with the 2% inflation target, while retail sales numbers from the holiday season will also be closely watched.

A number of Federal Reserve officials will also speak this week. Boston Fed President Eric Rosengren and Atlanta Fed head Raphael Bostic will both discuss the economic outlook in appearances on Monday. Kansas City Fed President Esther George is due to deliver remarks on Tuesday, while Patrick Harker of the Philadelphia Fed and Robert Kaplan of the Dallas Fed are both due to make appearances on Wednesday.

The pair dropped 0.2% to 1.3036. Figures on fourth-quarter growth, trade, industrial output, retail sales and inflation all due to be released this week. The data will be closely watched after Bank of England Governor Mark Carney last week promised a “relatively prompt response” if economic weakness persists.

On the Brexit front, the U.K. is due to leave the EU on Jan. 31. It is uncertain whether 11 months will be enough to reach a deal. EU chief Ursula von der Leyen has earlier warned that a comprehensive U.K.-EU trade deal is “impossible” by the 2020 deadline.

“We will go as far as we can, but the truth is that our partnership cannot and will not be the same as before and it cannot and will not be as close as before because with every choice comes a consequences with every decision comes a trade off,” she said earlier this month.

The pair and the pair both rose 0.2%.

The safe-haven yen retreated as Asian equities traded higher today. The pair slid 0.2% to 109.62.

The pair lost 0.2% to 6.9004. China’s GDP data is due later this week.

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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Forex – USD stays strong ahead of signing of trade deal

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Investing.com – The U.S. dollar remained strong on Friday and was set to end the week on a high note just days before the signing of a phase one trade deal between the U.S. and China.

The was flat at 97.45 by 9:30 PM ET (02:30 GMT).

The pair was down 0.02% to 0.6855 and the was down 0.11% to 0.6607. The Australian dollar was helped on Friday by strong retail sales data. Australia’s statistics agency said retail sales jumped 0.9% in November, more than double the expected 0.4% increase.

The pair was up 0.02% to 109.53.

The People’s Bank of China (PBOC) set the reference rate of the yuan at 6.9351, stronger than the 6.9497 fix set on Thursday. The yuan has been strengthening over the past few weeks.

On Thursday, China’s National Bureau of Statistics reported that consumer prices rose 4.5% in December from a year earlier while producer prices fell 0.5%.

Meanwhile, markets continue to look forward to the signing of a phase one trade deal between the U.S. and China next week.

The was down 0.01% to 1.3064 after the passage of Prime Minister’s Boris Johnson’s Brexit bill, which sets the stage for the United Kingdom to leave the European Union by January 31.

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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Forex – U.S. Dollar Unmoved Ahead of Fed Meetings, Looming Tariff Deadline

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Investing.com – The U.S. dollar was unmoved on Tuesday in Asia ahead of central bank meetings and a looming tariff deadline later this week.

The U.S. dollar index that tracks a basket of other currencies was unchanged at 97.610 by 12:30 AM ET (04:30 GMT).

On the radar this week are policy meetings at the U.S. Federal Reserve and the European Central Bank. While the two central banks are not expect to announce any significant changes to their policies, traders will pay attention to clues on whether more easing is in store next year.

On the Sino-U.S. trade front, investors awaited to see whether Washington will go ahead with a planned Dec. 15 tariff hike on Chinese goods.

Bloomberg reported overnight that U.S. Agriculture Secretary Sonny Perdue said Washington is unlikely to impose more tariffs on Chinese exports on Dec. 15.

“We have a deadline coming up on the Dec. 15 for another tranche of tariffs, I do not believe those will be implemented and I think we may see some backing away,” Perdue said, according to Bloomberg.

The EUR/USD pair was near flat at 1.1065, while the GBP/USD pair inched up 0.1% to 1.3151.

The AUD/USD pair and the NZD/USD pair both gained 0.2%.

The USD/JPY pair edged up 0.1% to 108.62.

The USD/CNY pair was little changed at 7.0382, little impacted by data today that showed China’s producer price index was down 1.4% year-on-year, falling for the fifth month in a row. The drop compared with the 1.5% expected decline and the 1.6% fall in October.

Meanwhile, the consumer price index for November jumped 4.5% year-on-year, as food prices skyrocketed 19.1% amid an outbreak of African swine fever.

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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France will soften, not give up pension reform ahead of strikes

© Reuters. French PM Philippe attends news conference after weekly cabinet meeting in Paris © Reuters. French PM Philippe attends news conference after weekly cabinet meeting in Paris

By Sophie Louet and Sudip Kar-Gupta

PARIS (Reuters) – The French government is willing to compromise on its pension reform but will not abandon plans to rebuild a system that allows some workers to retire in their fifties, it said on Wednesday, a week before a planned transport workers’ strike.

President Emmanuel Macron was elected in May 2017 on a pledge to overhaul the generous social security system and has promised to introduce a points-based pensions system under which all workers will have the same rights.

But as his centrist government is working on a first draft of the pension reform, unions at state-owned rail and metro operators – where some workers can retire in their early fifties – plan a nationwide transport strike on Dec. 5.

“The government is determined to build a universal pension system … but we will take the time we need to get there,” Prime Minister Edouard Philippe told a news conference.

He said he favours a compromise between “an immediate and brutal transition” that would make the reforms applicable to people born after 1963, and a “grandfathering” clause that would impact only people entering the labour market from 2025.

France’s official retirement age is 62, but it has more than 40 different pension systems, with some allowing workers to retire in their mid- to late fifties or even their early fifties for Paris subway conductors.

Philippe said workers will be able to hang on to “acquired rights” but said the government is determined to end special pension regimes.

“The system of corporatist solidarity is no longer suitable for this day and age and has created injustices,” he said.

Leftist opposition parties and the more radical unions reject the pension reform plan, but the moderate CFDT union agrees with the principle of a points-based pension.

Next week’s transport strike will be a key test of the unions’ determination and of Macron’s ability to continue reforms in the second half of his five-year mandate. Civil servants and energy sector workers will join the protest.

In the first year of his term, Macron made labour law more flexible and in June 2018 his government ended the special benefits for new workers joining the SNCF state railway.

But the eruption late last year of often-violent “yellow vest” protests against the high cost of living crimped Macron’s reform drive and several planned measures have been shelved.

The government will reveal a draft of the pension reform around Dec. 9 or 10 and parliament will vote on it early 2020.

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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Forex- U.S. Dollar Treads Water Ahead of Powell Speech 

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Investing.com – The U.S. dollar was mostly flat on Monday, as investors waited for possible rate cut guidance from Federal Reserve Chair Jerome Powell later in the day.

Powell is expected to speak at the Greater Providence Chamber of Commerce annual dinner later in the day. Traders expect that he will underline the central bank’s decision to pause on monetary policy easing after cutting rates three times this year.

Powell said in testimony to Congress last week that the effects of those cuts have yet to be felt.

The greenback was also impacted by reports of possible trade progress between the U.S. and China, with investors waiting to see if a deal will be reached. The Chinese state-backed Global Times newspaper reported Monday that the two sides were “very close” to a deal on trade, which added to optimism from China’s announcement over the weekend that it plans to improve protection for intellectual property rights.

The , which measures the greenback’s strength against a basket of six major currencies, was steady at 98.123 as of 10:16 AM ET (15:16 GMT). The dollar was higher against the safe-haven Japanese yen, with gaining 0.2% to 108.83.

Meanwhile sterling jumped after British Prime Minister Boris Johnson promised to bring a Brexit deal to parliament before Christmas. His Conservative Party leads in opinion polls ahead of the Dec. 12 election.

rose 0.6% to 1.2906 while fell 0.6% to 0.8534.

was flat at 1.1020 after the German Ifo index showed that the euro bloc’s biggest economy is still in a recession.

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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Latest UK election poll has Conservatives 12 points ahead

No big swing in voting intentions

A YouGov poll puts the Conservatives at 42 compared to Labour at 30%.

So long as the lead remains in double-digits, I don’t think it’s a big factor for the pound. If it narrows below 10 points, I would expect to see some GBP selling.

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Forex – U.S. Dollar Near Flat Ahead of Fed Minutes

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Investing.com – The U.S. dollar was near flat on Wednesday in Asia as traders remained cautious ahead of the release of minutes from the U.S. Federal Reserve’s last policy meeting due later in the day.

The that tracks a basket of other currencies last traded at 97.9by 1:20 AM ET (05:20 GMT), up 0.02%.

Hopes for trade progress were dashed overnight by another warning from U.S. President Donald Trump, who said that he may raise tariffs even further if talks collapse.

Tensions between the two sides rose even further after the U.S. Senate passed two Hong Kong-related bills that support protesters in the city.

China’s foreign ministry spokesman called the decision a blatant interference in China’s internal affairs, and said the U.S. faced “negative consequences” if it persisted.

CNBC reported earlier this week that Beijing is pessimistic about reaching an agreement with the U.S.

“Trade headlines is dominating sentiment but in terms of the key event risk, the release of the Fed minutes will be a big one for market participants,” said Morten Lund, a senior FX strategist at Nordea in a Reuters report.

The pair inched up 0.1% to 7.0277.

The pair fell 0.2% to 0.6813. Minutes published on Tuesday showed that the Reserve Bank of Australia “agreed a case could be made” for another cut in the 0.75% cash rate at its November meeting.

The pair also dropped 0.2% to 0.6419.

The pair was little changed at 108.51. Ministry of Finance data showed today that Japan’s fell 9.2% in October from a year ago, a bigger decline than the expected 7.6% drop.

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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