Forex – Dollar in Demand, Euro, Pound Under Pressure

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By Peter Nurse

Investing.com – The U.S. dollar remains strong Tuesday, as heightened concerns about the spread of the deadly coronavirus in China prompt demand for currencies as safer.

At 08:00 ET (0800 GMT), the traded 0.2% higher at 109.08, having fallen as low at 108.83 overnight. The Futures, which tracks the greenback against a basket of other currencies, pushed up 0.1% to 97.81, approaching the levels last seen in early December. That follows broad gains against commodity currencies in recent days as the market has priced in the risk of a drop in Chinese demand for basic materials.

Additionally, traded at 1.1019, after briefly visiting the 1.10 neighbourhood – or fresh yearly lows – at the beginning of the week.

The positive tone around the dollar, in combination with global growth concerns amidst the spread of the Chinese virus, have kept under heavy pressure of late.

“The pair remains under pressure although off Monday’s year-to-date lows near the psychological 1.10 mark,” said analysts at FXStreet. “Dynamics around the buck are expected to remain the exclusive driver of the pair’s price action for the time being along with alternating risk appetite trends in response to developments from the Wuhan coronavirus.”

With this in mind, attention is likely to be turned to the start of the Federal Reserve’s two day rate-setting meeting Tuesday, as well as the latest data releases in the U.S..

are due at 8:30 AM ET (1330 GMT), and are expected to have risen 0.3% last month, while at 10:00 AM ET, the January consumer confidence index is expected to come in at 128 from 126.5 in December.

Sterling was also weaker early Tuesday in Europe, amid concerns that the country will not be able to reach a trade deal with the EU by the end of the post-Brexit transition period at the end of the year. and were both around 0.2% lower.

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: Dollar Advance Kept in Check by Yen Amid Safe-Haven Rush

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By Yasin Ebrahim

Invesing.com – The dollar remained on the back foot Monday, pressured by a surprise fall in new home sales data and a bid in the yen and Swiss franc as worries intensified over the spread of the deadly coronavirus.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.12% to 97.97.

The Commerce Department said new home sales fell to a seasonally adjusted annual rate of in December, confounding expectations for a 1.5% rise to 730,000 units.

The surprise drop in new home sales did little to steady the greenback against the yen and Swiss franc following a sharp uptick in safe-haven demand on reports of more Chinese deaths from the coronavirus.

fell 0.28% to $ 109.00 and fell 0.13% to 0.968.

The weakness in the greenback comes just a day ahead of the Federal Open Market Committee’s two-day meeting, which is expected to culminate in an unchanged interest rate decision.

slipped 0.02% to $ 1.1102 as unexpectedly slipped in January, denting hopes that the weakness in the manufacturing sector had steadied.

With just a few days go until the Bank of England decision and Brexit, the remained under pressure against the greenback falling 0.21% to $ 1.308.

rose 0.28% to C$ 1.3180 as the loonie tracked oil prices lower amid ongoing fears that a continued spread of the virus could dent travel and tourism, keeping a lid on oil demand.

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 Gains as U.S. Services Activity Hits Highest Since March

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By Yasin Ebrahim

Investing.com – The dollar climbed against its rivals Friday as data showing ongoing strength in the U.S. services sector offset a continued slowing in manufacturing to a three-year low.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.18% to 97.87.

The IHS Markit flash purchasing managers index for manufacturing slipped to a three-month low in January, but the services PMI rose to the highest level since last March.

Strength in the greenback was also supported by plunge in the pound and euro.

fell 0.29% to $ 1.308 and more losses could follow when trade negotiations between the U.K. and the EU begin after the U.K. leaves the trading bloc on Jan. 31, said Jane Foley, senior foreign-exchange strategist at Rabobank.

“Once those negotiations get underway in February and March, some of us could be in for a rude awakening,” Foley added.

fell 0.20% to $ .1013 shrugging off better-than-expected PMIs from Germany amid expectations that the European Central Bank is set to persist with negative rates at least until the end of the year.

fell 0.21% to $ 109.26 as the yen was supported by an uptick in safe-demand after the CDC confirmed that a second case of the coronavirus had been identified in the U.S.

rose 0.18% to C$ 1.315 as oil prices continued to retreat on fears that a continued spread of the virus could dent air travel, keeping a lid on oil demand.

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 Edges Higher on Bullish Housing Data

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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.

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

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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.

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Forex – Dollar Edges Lower as U.S. Reports First Case of Deadly Coronavirus

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By Yasin Ebrahim

Invesing.com – The dollar fell slightly Tuesday, pressured by losses against safe-haven currencies as the first case of the deadly Chinese coronavirus was reported in the U.S.

The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.07% 97.49.

The U.S. Centers for Disease Control and Prevention announced the first case of the coronavirus in the United States, CNN reported, citing a federal source outside the CDC.

The news followed earlier reports that the coronavirus in China had spread, raising fears that a widespread outbreak could disrupt tourism and hurt economic growth.

fell 0.21% to 109.95 and was flat at 0.968.

rose 0.36% to $ 1.306 on bullish labor market data showing better-than-expected U.K. wage growth and an unchanged unemployment rate at 3.8% in November.

fell 0.01% to $ 1.109 as better January German and eurozone ZEW data signaled that investor confidence was on the mend ahead of a crucial European Central Bank meeting later this week.

Some have suggested that euro will continue to lose ground against the dollar this year amid expectations that the European Central Bank will likely cut rates in September.

The ECB will likely lower interest rates by 20 basis points and expand its bond-buying program in September while the Fed will leave rates on hold this year, said Hubert de Barochez, economist at Capital Economics.

rose 0.15% to C$ 1.306

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 Calm; Retains Strength Against Main Rivals

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Investing.com – The U.S. dollar was largely flat in European trading Monday, with the U.S. holiday providing little incentive for traders to take risks. That said, the greenback still looks strong against its main competitors.

At 03:35 ET (0835 GMT), the Futures, which tracks the greenback against a basket of other currencies, was essentially flat at 97.40. traded flat at 110.15, at 1.1095, up 0.1%, and at 1.2979, down 0.2%.

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.

The European Central Bank and the Bank of Japan are also not expected to make any changes in their first policy meetings of the year this week, but the Bank of England is widely expected to cut rates in the near future.

The dollar story is staying firm in the G3 space, analysts Chris Turner, Petr Krpata and Francesco Pesole at ING, said in a research note. “Talk of a Republican Tax Cut 2.0 may cement that trend – at least in the G3 space. US macro weakness looks less of a concern now, but the market will soon turn to U.S. election risks – especially were (Elizabeth) Warren or (Bernie) Sanders to win the Democratic nomination.”

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 Little Changed, AUD/USD Pair Rises Ahead of Jobs Data

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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.

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 Rides Bullish Housing Data Higher

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By Yasin Ebrahim

Invesing.com – The dollar advanced Friday as bullish housing data offset weaker labor data, adding to growing expectations that the U.S. economy will continue to expand.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.30% to 97.61.

The Commerce Department said rose 16.9% to a seasonally adjusted annual rate of 1.61 million units in December, well above economists’ estimates for 1.38 million and the biggest gain in 13 years.

The strong uptick in housing starts will lift forecasts for fourth-quarter residential investment, but is unlikely to be sustained, increasing the chances of a hefty correction in January is a good bet, Pantheon Macroeconomics said.

The report also highlighted a 3.9% decline in to a rate of 1.42 million units, short of estimates for 1.47 million.

The U.S. Labor Department’s latest (JOLTs) report, a measure of labor demand, showed job openings in November were 6.8 million, well below expectations for 7.23 million.

Sentiment on the economy was also supported by ongoing signs that the consumer remains in good shape.

The University of Michigan’s preliminary for January edged down to 99.1 from a seven-month high of 99.3 in December, data showed Friday.

fell 0.45% to $ 1.301 as disappointing retail sales data raised expectations that the Bank of England will cut rates at its next meeting.

fell 0.40% to $ 1.11 as bearish sentiment on the single currency continued ahead of the European Central Bank meeting next week.

was flat at Y110.14 as demand for safe-haven yen continued to fall amid a rally in equities.

rose 0.20% to C$ 1.31.

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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ForexLive Americas FX news wrap: Dollar strengthens again, housing starts jump

Forex news for New York trade on January 17, 2020:

Markets:

  • Gold up $ 4 to $ 1557
  • WTI crude up 22-cents to $ 58.74
  • S&P 500 up 13 points to record 3329
  • US 10-year yields up 1.5 bps to 1.82%
  • USD & JPY lead, GBP lags

The big surprise of the day was the 16% jump in US housing starts in the third month in a row of good gains. Some pointed to unusually warm weather but lower mortgage rates are undoubtedly part of the equation and the data gave another reason for USD bulls to cheer.

The impact was broad based but not in the yen, which was curious because the risk trade continue to improve. Both the AUD and NZD ended at the lowest levels of the day with CAD not far off.

The laggard was the pound after a dismal retail sales report pushed the odds of a BOE hike this month up to 73%. The pound finished down 64 pips and more than 110 pips off the high, which came moments before the data.

Have a great weekend!

Forex news for New York trade on January 17, 2020:

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