Forex – U.S. Dollar Slips as Euro Still Lifted by Brexit Deal

© Reuters.  © Reuters.

Investing.com – The U.S. dollar was lower against other currencies on Friday, while the euro was buoyed by hope that a Brexit deal will help mitigate risks of a recession in the bloc.

U.K. Prime Minister Boris Johnson made a deal with the EU on Thursday, which hinges on Northern Ireland applying a limited set of EU rules on some goods, with the U.K. only charging EU tariffs on goods passing through to EU markets.

The deal now must be passed by the British Parliament on Saturday. However, Northern Ireland’s Democratic Unionist Party said it is opposed to the proposed agreement, making it uncertain if the deal will be approved.

inched up 0.1% to 1.2897 as of 10:56 AM ET (14:56 GMT) while was up 0.2% to 1.1139.

Meanwhile the U.S. dollar dipped, as traders remained cautious after data showed the impact of the trade war has taken its toll on China.

China’s gross domestic product grew 6% annually in the third quarter, which was the slowest rate in 30 years. The news comes on the back of China trying to get more concessions from the U.S. before it signs a temporary phase 1 deal agreed on last week.

The , which measures the greenback’s strength against a basket of six major currencies, was down 0.2% to 97.172.

Elsewhere, the surged 1.4% to 0.1728 against the dollar after a five-day ceasefire against the Kurds in Syria was agreed on between President Recep Tayyip Erdogan and U.S. Vice President Mike Pence. However, reports have surfaced that the ceasefire may have already been broken.

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Turkish Markets Rally as Erdogan Clinches Syria Deal With U.S.

© Reuters.  Turkish Markets Rally as Erdogan Clinches Syria Deal With U.S. © Reuters. Turkish Markets Rally as Erdogan Clinches Syria Deal With U.S.

(Bloomberg) — The jumped to its strongest level in almost two weeks while bonds and stocks rallied after the U.S. agreed not to impose any further sanctions on Turkey as part of a temporary cease-fire deal in Syria struck between Ankara and Washington on Thursday.

The currency gained as much as 1.3% to 5.7585 per dollar, erasing losses that were fueled in recent days by concern Washington would impose punitive measures against the Turkish economy in response to the offensive against Kurdish rebels in Syria.

The benchmark stock gauge jumped almost 4% at the open, its biggest advance since June. The yield on five-year benchmark bonds dropped more than 160 basis points, falling below 15% for the first time in a week.

“The truce deal, even a temporary one, fueled optimism among investors that the risk of sanctions has diminished significantly,” said Can Oksun, senior manager of institutional sales at Global Securities in Istanbul. “The mood is broadly more positive.”

The agreement enshrines Turkish control of a 20-mile deep “safe zone” in northern Syria, representing a victory for President Recep Tayyip Erdogan, who had been seeking one for years. The U.S. has also promised to withdraw sanctions announced earlier this week once a permanent cease-fire takes effect.

‘Brutal’ House Bill

Still, risks remain. Republican and Democratic lawmakers have vowed to move ahead with sanctions despite Thursday’s announcement. The measures would penalize Turkish leaders, financial institutions and its energy sector, as well as prohibit any U.S. firms or individuals from buying the country’s sovereign debt.

“If this bill holds as is and is passed it would be brutal,” said Timothy Ash, a strategist at BlueBay Asset Management in London. “Sanctioning sovereign debt would be lights out for Turkey, given it has $ 180 billion in short-term external debt to finance every year.”

While there is strong bipartisan opposition to Turkey’s incursion into northern Syria, Senate leaders haven’t committed to bringing a sanctions bill to a vote.

The lira was trading 0.9% stronger at 5.7803 per dollar as of 10:53 a.m. in Istanbul. The Borsa Istanbul 100 Index trimmed its advance to 3.5%, with gains being led by Turkiye Garanti Bankasi AS and Akbank TAS, the nation’s largest listed lenders.

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 – Pound Gives Up Gain as DUP Rejects Deal “as Things Stand”

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Investing.com – The British pound gave up gains on Friday in Asia as traders digested the latest Brexit news.

The British pound rose to near a five-month high against the U.S. dollar after the European Union Commission President Jean-Claude Juncker and U.K. Prime Minister Boris Johnson both confirmed via twitter that a Brexit deal had been reached.

However, the pound reversed gains after Northern Ireland’s Democratic Unionist Party (DUP) said it remains opposed to the proposed agreement, making it uncertain if the deal will be passed by the U.K. Parliament when it votes on Saturday.

The DUP said the proposals are not beneficial to the economic wellbeing of Northern Ireland.

The pair last traded at 1.2852 by 11:45 PM ET (03:45 GMT), down 0.3%.

For the week, the pound was on course for a 1.7% gain versus the dollar.

The pair was little changed at 7.0765. The release of China’s GDP data had little impact on the currency pair.

China’s economic growth in the third quarter slowed more than expected to 6.0% from last year, the National Bureau of Statistic reported on Friday. Analysts expected GDP to grow 6.1% year-on-year.

Meanwhile, industrial output gained 5.8% year-on-year in September, compared with a 5.0% growth expected by analysts.

Retail sales rose by 7.8% year-on-year, in line with expectations.

Fixed asset investment grew 5.4% year to date, also matching expectations.

The pair slipped 0.1% to 108.56.

The pair and the pair gained 0.1% and 0.4% respectively.

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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NewsBreak: No Brexit Deal Today – Reports

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Investing.com – The U.K. and EU will not announce a deal on Brexit Wednesday, according to several published reports. But a deal could still be announced later in the week as it was unclear at what juncture negotiations were at.

  • , which had been bouncing around on headlines throughout the trading day, retreated after the reports, but was still up 0.3% at $ 1.2827.
  • ITV (LON:) political editor Robert Peston tweeted that there was “now no chance of Brexit deal tonight. Not at all sure about what that means for what can be agreed by EU leaders on Thursday and Friday.”
  • 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 – Pound Gives Up Some Gains; U.K., EU Inch Closer to Brexit Deal

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    Investing.com – The British pound gave back some gains on Wednesday in Asia after gaining overnight. A Bloomberg reported that the U.K. and European Union are close to agreeing on a legal draft of a Brexit deal.

    The pair was down 0.2% to 1.2755 by 12:18 AM ET (04:18 GMT).

    The pound spiked yesterday after European Michel Barnier said a draft legal text was being drawn up, and that an agreement “is still possible this week.”

    “Our team(s) are working hard, and work has just started now today, this work has been intense over the weekend and yesterday, because even if the agreement will be difficult, more and more difficult, to be frank, it is still possible this week,” Barnier told reporters in Luxembourg on Tuesday morning.

    He added that “any agreement must work for everyone,” saying it is “high time to turn good intentions into a legal text.”

    The deal however is dependent on Prime Minister Boris Johnson getting support from the Northern Irish Democratic Unionist Party, which is uncertain. The two sides are racing to reach a deal before the Oct. 31 deadline, but remain optimistic that an agreement will be made by the end of Tuesday.

    Meanwhile, the last was little changed at 98.042.

    Tensions between the U.S. and China flared up again after the U.S. House passed four measures, including the “Hong Kong Human Rights and Democracy Act”, on Tuesday in unanimous voice votes.

    A similar bill is in front of the Senate.Beijing has threatened to retaliate if Congress passes a bill.

    The pair gained 0.2% to 7.0964.

    On the data front, the U.S. retail sales data are set to be released later in the day and are forecast to increase for a seventh straight month.

    China will release third-quarter GDP, September industrial production and retail sales data on Friday.

    The pair lost 0.3% to 0.6731. The pair dropped 0.2% to 108.63.

    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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    DUP will not back Brexit deal if Boris Johnson makes more concessions

    Fresh report

    The DUP won’t support a Brexit deal if Boris Johnson has to make more concessions to get it over the line, the Huffington Post reports.

    DUP leaders held a 90-minute meeting with Boris Johnson yesterday and are expecting an update today.

    Ahead of the update, a source said: “It would seem that we are notified all the way through, but I just don’t see us going beyond the move that we made and the PM put forward last week.

    “The problem is that the EU and Republic of Ireland see it as a chance to push for more.

    “We will not be going more or giving more.

    “Difficult times ahead.”

    Cable is at 1.2726, about three-quarters of a cent from the highs.

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    Forex – Pound Leaps Again as Barnier Stokes Brexit Deal Hopes

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    Investing.com — The British pound took center stage again on Tuesday, rising sharply against the dollar and euro on renewed speculation of a deal to allow the U.K. to leave the EU smoothly at the end of the month.

    By 3 AM ET, was at $ 1.2667, up 0.5%, while was at 0.8715, down 0.3%.

    The latest wave of optimism was fueled by comments from the EU’s top negotiator Michel Barnier, who told reporters that a deal at a summit at the end of the week “is still possible”.

    “I will debrief the EU 27 ministers as usual and just to tell them where we are, where we stand today,” newswires quoted Barnier as saying.

    “Our team(s) are working hard, and work has just started now today, this work has been intense over the weekend and yesterday, because even if the agreement will be difficult, more and more difficult, to be frank, it is still possible this week,” Barnier added.

    Barnier has repeatedly stressed the gap between the U.K.’s rhetoric and its ability to deliver effective solutions in a legally enforceable framework.

    He said Tuesday that “any agreement must work for everyone,” adding that it is “high time to turn good intentions in a legal text.”

    Prior to Barnier’s comments, there had also been rumors of an emergency summit on Oct. 31, only hours before the U.K.’s membership of the EU is scheduled to end. The thinking behind the rally is that such a summit would only take place if it had a reasonable chance of delivering a deal.

    The prospect of a Brexit deal has also helped the euro against the dollar. rose 0.1% to $ 1.1037 by 3 AM. The , which measures the greenback against a basket of developed market currencies, fell 0.2% to 98.035, its lowest since Friday.

    Elsewhere, the bounced after falling to its lowest since a brief currency panic in May, as the “big sanctions” promised by President Donald Trump against Turkey turned out to be more manageable than feared. By 3 AM ET it was at 5.8782, up over 1% from Monday’s levels.

    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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    Dollar loses steam versus yen as trade deal, Brexit hopes face reality check

    By Tomo Uetake

    SYDNEY (Reuters) – The dollar hovered below 2-1/2-month highs against the yen on Tuesday, failing to extend recent gains as optimism over trade negotiations between the world’s two largest economies and for an orderly British exit from the European Union started to fade.

    In early Asian trade, the dollar was steady at 108.35 against the yen, still not far from its 2-1/2-month high of 108.63 yen marked on Friday.

    The euro also stood flat at $ 1.1026 () versus the greenback, off Friday’s three-week high of $ 1.1062.

    Although markets initially welcomed the “Phase 1” trade deal between the United States and China that President Donald Trump outlined last week, a lack of details kept many investors cautious.

    “Media reports suggest China wants another high-level meeting later this month to finalize Friday’s agreement, suggesting that not all the details are nailed down,” said Alex Stanley, senior interest rate strategist at National Australia Bank.

    “Market participants are conscious that previous U.S.-China ‘agreements’ have subsequently broken down amidst misunderstandings among the two sides.” 

    A Bloomberg report on Monday, citing sources, said China wants more talks as soon as the end of October to hammer out the details of Trump’s phase 1 deal before Chinese President Xi Jinping agrees to sign it.

    The negotiation between the UK and the European Union over Britain’s exit also looked equally fleeting.

    Sterling slipped from a three-month high touched on Friday as last week’s euphoria gave way to doubts over whether a timely Brexit deal could be clinched. The pound was last quoted at $ 1.2604 versus the dollar, little changed on the day.

    A deal to smooth Britain’s departure from the EU hung in the balance on Monday after diplomats indicated the bloc wanted more concessions from Prime Minister Boris Johnson and said a full agreement was unlikely this week.

    Johnson says he wants to strike an exit deal at an EU summit on Thursday and Friday to allow an orderly departure on Oct. 31. If an agreement is not possible, he says he will lead the United Kingdom out of the club it joined in 1973 without a deal – even though parliament has passed a law saying he cannot do so.

    The lira showed limited reaction after Trump imposed new sanctions on Turkey, but the currency stayed near seven-week lows against the dollar on concerns about a fallout from the country’s incursion in northern Syria.

    In early Asia, the lira stood at 5.9239 per dollar , after having weakened some 0.8% on Monday.

    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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    Mnuchin: Progress made last week. Phase 1 deal is substantial

    Speaking on CNBC

    • China will step up agricultural purchases
    • There needs to be a dispute resolution enforcement provisions
    • has every expectations that if US China trade deal is not in place December 15 tariffs will be imposed, but expects a deal
    • dispute resolution mechanism is important
    • There is a fundamental agreement in principle. There are still some issues that need to be worked out. But we have every expectations that phase 1 will close
    • The deputy level calls this week.  Lighthized and Mnuchin will make a call to vice premier next week.
    • NBA must work out China deal on its own

    Mnuchin put on his best face on the deal which he typically does, in what will be a long drawn out process. However, there are some things that need to be done and agreed to, that will make or break the progress just in Phase 1.  Stocks are still lower but marginally higher from the start of his speech.  

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    Citi says it remains cautious on an ‘eventual’ US-China trade deal

    A weekend note via Citi on the conclusion of US-China talks on Friday.

    • Says the result is a ‘down payment’ that is ‘to keep discussion going’
    • ‘despite what has been achieved … we remain cautious on an eventual trade deal’.

    State media in China is a bit more upbeat, says ‘substantial progress’ was made. But no deal. 

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