Forex – U.S. Dollar Retreats From Earlier Gains 

© Reuters.  © Reuters.

Investing.com – The U.S. dollar was lower on Thursday, as it gave up prior gains after the Federal Reserve cut rates as expected.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 98.34 as of 11:35 AM ET (15:35 GMT).

The Fed lowered interest rates for the second time this year to the 1.75%-2% range from the previous 2%-2.25% range. Still, guidance from Fed Chairman Jerome Powell indicated that the central bank didn’t expect a slowdown in the economy anytime soon. Powell noted that “if the economy does turn down, then a more extensive sequence of rate cuts could be appropriate.”

Elsewhere, declined 0.1% to 1.3268. The Japanese yen, which is seen as a safe haven in times of market turmoil, recovered from an earlier low of 107.79 after the Bank of Japan kept its short-term rate target at -0.1%. fell 0.4% to 108.04.

The pound inched up, boosted by the Bank of England leaving interest rates on hold as it waits for more clarity on Brexit. The bank said that if Brexit uncertainty persists, inflation will likely become weaker. Staff expect inflation to remain below 2% target for the rest of this year.

rose 0.1% to 1.2484, while jumped 0.2% to 1.1053.

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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Forex – Yen Rises After BOJ Meeting; U.S. Dollar Slips as Fed Cut Rate as Expected

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Investing.com – The Japanese yen rose against the U.S. dollar on Thursday in Asia following the conclusion of the Bank of Japan’s meeting.

The pair fell 0.6% to 107.79 by 11:52 PM ET (03:52 GMT). The Bank of Japan kept its short-term rate target at -0.1%, but noted in a statement that “it is becoming necessary to pay closer attention to the possibility that the momentum towards achieving its price target will be lost.” BOJ governor Haruhiko Kuroda will provide a briefing later in the day.

“Taking this situation into account, the BOJ will re-examine economic and price developments at its next policy meeting, when it updates the outlook for economic activity and prices,” it said.

The slipped 0.1% to 98.058 after the Federal Reserve lowered its interest rates to the 1.75-2% range from the previous 2-2.25%. The move, which was widely expected by analysts, was the second rate cut this year.

The pair was down 0.5% to 0.6790 following mixed jobs reports released in the morning.

The pair lost 0.1% to 0.6312 after data showed the country’s economy grew at the slowest pace in more than five years in the second quarter.

The grew by only 2.1% from a year earlier and was the weakest annual growth since the fourth quarter of 2013, Statistics New Zealand reported on Thursday.

The New Zealand dollar initially rose after the report, but gave back its gains and currently trades in the red.

The pair rose 0.3% to 7.1029.

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 holds gains as oil shock eases, Fed in focus

By Stanley White

TOKYO (Reuters) – The dollar traded near a seven-week high versus the yen as oil markets recovered from a supply shock, but the focus is firmly on a U.S. Federal Reserve meeting later on Wednesday that is widely expected to deliver an interest rate cut.

Sterling traded near a six-week high versus the dollar as some speculators reduced excessive bets on a decline in the pound, but sentiment remained weak due to uncertainty over how the UK will exit the European Union.

Major currencies are likely to trade in narrow ranges before the Fed’s meeting. Fed Reserve Chairman Jerome Powell has clearly broadcast his intention to cut rates, so some analysts warn that the dollar could actually bounce if the Fed eases policy as expected.

“Speculators are already excessively short in the dollar,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo.

“If there are no surprises from the Fed, the speculators will have to give up their dollar shorts. The biggest reaction would be in dollar/yen, because you can’t really buy the pound or the euro at the moment.”

The dollar traded at 108.10 yen on Wednesday, close to a seven-week high of 108.37 yen.

The British pound was quoted at $ 1.2497, holding onto a 0.6% gain from Tuesday, when it briefly touched the highest since July 19.

Oil prices tumbled around 6% on Tuesday after Saudi Arabia’s energy minister said the kingdom has tapped inventories to restore oil supplies to where they stood before drone attacks over the weekend shut around 5% of global oil output.

Economists and analysts widely expect the Fed to cut its benchmark rate for the second time this year by 25 basis points to 1.75%-2.00% at a meeting ending Wednesday to counter risks posed by the U.S.-China trade war.

However, an anomaly has emerged in futures pricing.

Short-term rates spiked overnight, which led the Fed to inject $ 53.15 billion into the financial system with a money market operation it has not used in more than a decade.

The chaotic moves in money markets and late-day swings in U.S. federal funds futures mean the CME’s tool shows about a 51% chance that the Fed will cut rates by 25 basis points on Wednesday.

Elsewhere in the currency market, the euro stood at $ 1.1072 (), flat so far in Asia

The Australian dollar fetched $ 0.68605 , down 0.07% in early trade.

The () measuring the greenback against a basket of six major currencies fell 0.02% to 98.242.

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 slips ahead of Fed rate decision, euro rises

© Reuters. FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul © Reuters. FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul

By Kate Duguid and Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – The U.S. dollar fell on Tuesday in range-bound trading on the eve of an expected interest rate cut by the Federal Reserve, weakened by a fall in oil prices and a stronger euro.

Oil prices dropped about 6% on Tuesday after Saudi Arabia’s energy minister said the kingdom had fully restored its oil production, following an attack over the weekend that shut down 5% of global oil output. That reversed some of the dollar’s gains on Monday when investors rushed into safe-haven assets.

The euro was up 0.59% at $ 1.1065 (), after an influential survey showed a brightening in German investor confidence. The ZEW index improved to -22.5 in September versus forecasts of -37 and the August reading of -44.1.

Thierry Wizman, global interest rates and currencies strategist at Macquarie Group, said he was seeing a bid in the forex market. “It’s maybe why the euro is doing a little better here,” he said. “You also had some good data in Europe as well that has sparked a bit of this euro rally today too.”

While many investors are expecting the Fed to announce a 25 basis point rate cut following the close of its two-day policy meeting on Wednesday, some believe it may be the last rate cut for a while absent more evidence of a U.S. economic slowdown.

“If the Fed does cut 25 basis points, then we think it will be the last time until we really do see signs of recession,” Brown Brothers Harriman strategists said in a note.

Against a basket of its rivals (), the greenback was 0.35% lower to 98.266.

The overnight rate, or the cost for banks and Wall Street dealers to borrow dollars , surged to 10% on Tuesday, the highest level since at least January 2003, according to Refinitiv data.

Analysts attributed quarterly corporate tax payments and settlement of $ 78 billion in Treasury debt supply for the spike on Monday in interest rates in the repurchase agreement market.

“This morning’s funding squeeze has put some upward pressure earlier in the dollar, but that is not likely to be a longer-term driver,” said Erik Nelson, currency strategist, at Wells Fargo (NYSE:) Securities in New York.

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 Recovers from Safe-Haven Flight After Saudi Attacks  

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Investing.com – The U.S. dollar recovered from an earlier low caused by an attack on oil fields in Saudi Arabia.

Oil prices surged after the attack crippled nearly 5% of global oil production, rising fears of a global economic slowdown and increasing tensions between the U.S. and Iran. The U.S. government blamed Iran for the attacks, which the Islamic state denies.

Currencies linked to the price of oil rose after the news, with falling 0.2% to 1.3254 as of 10:37 AM ET (14:37 GMT), and the Norwegian crown surged to 8.9633 against the dollar.

The Japanese yen, which is seen as a safe haven in times of market turmoil, rose with falling 0.2% 107.89. The , which measures the greenback’s strength against a basket of six major currencies, gained 0.3% to 98.140, after reaching an overnight low of 97.655.

Elsewhere, sterling tumbled after Luxembourg Prime Minister Xavier Bettel said he would only delay the Brexit deadline if it serves a purpose. U.K. Prime Minister Boris Johnson is expected to ask the EU for an extension, but the bloc requires unanimity for the deadline to be extended.

slumped 0.6% to 1.2420, while the euro decline, with falling 0.5% to 1.1012.

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 – Dollar Extends Losses on Lingering Trade Hopes

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Investing.com — The dollar extended losses in early trading in Europe Friday, as higher-yielding currencies advanced on hopes of at least a temporary truce to the U.S.-China trade war.

President Donald Trump downplayed a Bloomberg report that his administration was preparing to do a temporary deal with China, potentially rolling back some of the import tariffs recently imposed on Chinese goods.

“Well, it’s something that people talk about,” Trump told reporters en route to an event late Thursday. “I’d rather get the whole deal done,”

The , which tracks the greenback against a basket of currencies, fell to its lowest in over a week in early trading and by 3:30 AM ET (0730 GMT) was at 98.07, down 0.2% from late Thursday.

Both the euro and the British pound made solid gains, rising above $ 1.2400 for the first time in seven weeks as the political and judicial problems of Prime Minister Boris Johnson embolden hopes that the country will avoid a disorderly exit from the European Union at the end of next year.

The , meanwhile, is rising despite the European Central Bank’s best efforts to keep it weak with a package of monetary easing measures. By 3:30 AM, it was at $ 1.1104, up by three-quarters of a cent from immediately before the ECB’s policy decisions.

“We expect the euro to suffer more in the coming months and believe that it is still too early to bet on a stronger euro,” said Nordea Markets analyst Jan von Gerich, who has a target of between $ 1.07-$ 1.08 for .

Von Gerich argued that the modest size of the ECB’s new quantitative easing program was a slight disappointment, despite the dovish signal effect of it being left open-ended. He said it was likely that incoming President Christine Lagarde would want to ease policy further in December, not least by raising the ECB’s current limits on how much it can buy of each government’s individual bonds. That would allow the bank to beef up the program if needed.

Emerging currencies continued to rally against a backdrop of easier monetary policy in developed markets. The hit a seven-week high against the dollar, while the rose to its highest in a month.

The was consolidating just below the three-week highs it hit on Thursday in the wake of the Turkish central bank’s 325 basis-point interest rate cut.

The mainland Chinese and Korean markets were closed Friday for holidays, while Japan’s is closed 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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Forex – U.S. Dollar Rises; Trump Goes After Fed

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Investing.com – The U.S. dollar was higher on Wednesday as U.S. President Donald Trump once again went after the Federal Reserve for not cutting interest rates as much as he would like.

Trump said in a tweet that the central bank should cut interest rates to zero or less, calling Fed officials “boneheads.”

He said negative interest rates would save the U.S. government money on its debt. Central banks in Europe and Japan introduced negative interest rates in order to try to stimulate the economy, but the lower rates have done little to boost growth or raise inflation in the regions.

The , which measures the greenback’s strength against a basket of six major currencies, gained 0.4% to 98.653 as of 11:01 AM ET (14:01 GMT).

The Japanese yen, which is seen as a safe haven in times of market turmoil, fell, with rising 0.2% to 107.73.

Sterling was flat as tensions between Prime Minister Boris Johnson and the U.K. parliament continued. A Scottish High Court ruled that Johnson’s decision to suspend parliament was unlawful. An appeal is expected in the Supreme Court next week. was flat at 1.2339 while fell 0.4% to 1.10995 due to the stronger dollar.

And the loonie turned lower after Prime Minister Justin Trudeau called for elections on Oct. 21. While not a surprise, it does increase political uncertainty in the country. rose 0.2% to 1.3168.

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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Cautious optimism supports dollar ahead of ECB

By Tom Westbrook

SINGAPORE (Reuters) – Fragile investor confidence supported the dollar and weakened the yen on Wednesday but currency markets kept to tight ranges ahead of series of major central bank meetings over the next week.

Investor focus for now is centered on the European Central Bank’s meeting on Thursday, which is expected to push interest rates even further into negative territory.

The ECB could set the tone for upcoming rate-setting decisions by the U.S. Federal Reserve and the Bank of Japan next week, and for the broader global risk appetite.

For now, a cautious risk-on mood has prevailed after political crises that had hobbled markets, from Britain to Hong Kong, abated, taking the shine off safe-haven assets.

Bonds slid overnight and the yen hit 107.65 per dollar, its lowest since Aug. 1.

Overhanging the relief buying, however, are signs of a slowdown in global demand, which have offset recent positive developments in U.S.-China trade negotiations.

The euro (), which has shed 3% since June, was flat at $ 1.1047. The dollar was flat against the Australian dollar at $ 0.6860 and steady on the yen and the New Zealand dollar .

“Expect a quiet day of trading, with some support of risk, as a broader cyclical rotation continues,” Australia and New Zealand Banking Group analysts said in a note.

“Speculation over whether the ECB will enact a new QE program on Thursday continues to ebb and flow.”

ECB policymakers are leaning toward a package that includes a rate cut, a pledge to keep rates low for longer and compensation for banks over the side-effects of negative rates, five sources familiar with the discussion said last week.

On the other hand, concerns have been building that global central banks are reaching the limits of their stimulus options, especially those with negative interest rates and sub-zero long-term sovereign bond yields.

“Given the chance that the ECB fails to match market expectations for easing policy, the balance of risks favors higher EUR/USD and European FX outperformance,” ING forex strategists said in an overnight note.

Much of the positive mood in recent days has been driven by optimism that a high-level meeting of U.S. and Chinese negotiators at Washington next month can deliver some sort of trade-war circuit breaker.

That was tamped down somewhat by White House trade advisor Peter Navarro on Tuesday, when he urged patience about resolving the two-year trade dispute between the world’s two largest economies and said to “let the process take its course.”

But the prospect of a breakthrough stoked appetite for Asian currencies such as the trade-exposed South Korean won , which drifted higher in Asian trading hours and to around 1189.50 per dollar, close to its highest since Aug. 2.

The yen, already under pressure as investors spurned safe havens, was further sold overnight after Reuters reported BOJ policymakers are more open to discussing the possibility of expanding stimulus at their board meeting on Sept. 18-19.

And the pound has held on to last week’s gains after British parliament passed a law compelling Prime Minister Boris Johnson to seek a delay to the Oct. 31 date for leaving the European Union. Sterling last traded at $ 1.2353.

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Tariffs threat to see euro fall to 1.07 against the dollar in three months – ING

ING lowers their forecasts for the euro

ING

The firm argues that the euro will weaken to levels last seen in 2017 against the dollar due to threats stemming from US trade policy. Noting that:

“Further deterioration in the US-China trade war will drive the euro lower. But there is also a non-negligible risk of the US imposing, or at least threatening to impose auto tariffs on Eurozone exports. An overhang of such tariffs should weigh on the euro.”

Expanding further, the firm also views that the market already has “very aggressive” expectations of the Fed easing and that makes it hard for the US central bank to surprise and precipitate dollar weakness against the euro.

Adding that the dollar still enjoys high carry and that makes its positioning for a decline – in terms of yields – as “unattractive”.

Also, they no longer see EUR/USD as being undervalued so that won’t provide a supportive factor to the pair and notes that short positions are not stretched:

“This means that EUR shorts can still be built and positioning does not act as a limiting factor behind the EUR/USD fall.”

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U.S jobs data supports dollar as fragile risk-on mood holds

By Tom Westbrook

SINGAPORE (Reuters) – Encouraging U.S. economic data gave the dollar an edge over its peers on Friday, arresting a recent flight from the greenback while also supporting Asian currencies as investors toned down recent gloom over the global economy.

Separate surveys suggested the world’s largest economy is in better shape than investors had feared. U.S. service sector activity accelerated in August and private employers boosted hiring beyond expectations.

It contributed to a broad risk-on shift in money, bond and stock markets stoked by news that China-U.S. trade talks would resume next month, and supported the dollar.

“Stronger than forecast employment, factory orders and productivity numbers contradicted the recent ‘slowing U.S. economy’ narrative,” said Michael McCarthy, chief strategist at brokerage CMC Markets in Sydney.

The dollar recouped some losses against the Australian and New Zealand dollars and against a basket of currencies clambered off a one-week low to hold flat around 98.419.

Traders now await the government’s monthly payrolls report due at 1230 GMT on Friday for the next snapshot on the labor market’s health.

“Investors are now hoping they can take this week’s positivity over the finishing line, so fingers crossed the August U.S. payroll report…doesn’t throw a damp towel on the proceedings,” said Stephen Innes, Asia Pacific  Market Strategist at AxiTrader.

Other factors supporting risk sentiment were a potential breakthrough in the Hong Kong political crisis and reduced chances of Britain crashing out of the European Union on Oct. 31 without a deal.

The pound rose to its highest level against the dollar in more than a month and held most of those gains to trade around $ 1.2326 in Asian hours.

That was in spite of more political chaos in Britain, as Prime Minister Boris Johnson’s plan to kick off what is in effect an election and a Brexit campaign was overshadowed on Thursday when his younger brother quit the government.

The euro () was steady at $ 1.1031 at 0030 GMT. The yuan gained overnight and held in morning offshore trade around 7.1382 per dollar. The trade-exposed South Korean won hit a month high of 1,198.40 per dollar.

Sentiment has been skittish, however, since the Brexit project remains up in the air and previous progress on U.S.-China trade negotiations has failed in the past.

The yen, which was sold to a one-month low of 107.22 per dollar on Thursday, bounced a little to 106.98, a signal some caution remains.

“These moves may prove to be short term rather than the start of a fresh cycle,” said Nick Twidale, director of Sydney-based brokerage XChainge.

“Both the major geo-political issues that seem to have turned over the last few days have a large degree of uncertainty associated with them over the medium, let alone long term,” he said, referring to Brexit and U.S-China trade talks.

“We’ve seen a lot of activity on the frequent flyer accounts of both the Chinese and US trade negotiation teams before which has resulted in little in the way of progress.”

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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