NewsBreak – Scottish High Court Rules U.K. Prorogation Unlawful

© Reuters.  © Reuters.

Investing.com – Three judges on the Scottish High Court ruled that U.K. Prime Minister’s Boris Johnson’s decision to suspend parliament is unlawful. An appeal is expected to be heard in the Supreme Court on Tuesday.

• rose 0.1% to 1.2356 as of 5:23 AM ET (9:23 GMT).

• fell 0.2% to 0.8921.

• The yield rose 5.5% to 0.674.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

US treasury sells $32 billion of 7-year notes at a high yield of 1.489%

WI level at auction was 1.468%

  • high yield 1.489% well above the 1.468% WI level. Tail of 2.1 bps
  • Bid to cover 2.16x vs 2.44x 6 month average
  • dealers take 33.8%
  • Directs take 16.1%
  • Indirects take 50.2%

This is a poor auction with a 2.1 basis point tail and bid to cover well below the 6 month average. Dealers were also forced to take a much greater percentage of the auction. The 6 month average was only 23%. They are settled with 33.8%.  

Yields are moving higher at a result post the auction with the 5 year up from 1.404% to 1.4224%. The 10 year is up from 1.514% to 1.5299%.

ForexLive

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed

Forex – U.S. Dollar Falls From Two-Year High  

© Reuters.  © Reuters.

Investing.com – The U.S. dollar fell back slightly from a two-year high after the excitement of the Federal Reserve’s wait-and-see approach wore off.

The Fed cut rates by 25 basis points on Wednesday, the first cut in a decade, but indicated it would not be aggressive on its approach to monetary policy.

Fed Chairman Jerome Powell called the cut a small correction and “not the beginning of a long series of cuts.”

“You would do that if you saw real economic weakness … That’s not what we’re seeing,” he said during his press conference.

The , which measures the greenback’s strength against a basket of six major currencies, was up 0.1% to 98.382 by 11:03 AM ET (15:03 GMT) after reaching an earlier high of 98.665.

The dollar was higher against the Japanese yen, with falling 0.5% to 108.19.

Sterling was still in the red, with down 0.1% to 1.2143, after the Bank of England kept rates steady. The bank voted unanimously to keep the rate at 0.75%, as expected, but downgraded its projections for growth for the next two years.

The BoE did not warn against a no-deal scenario, but did say that “companies expect output, employment and investment to be much lower in a no-deal Brexit.”

The pound lost more than 4% in July on fears of a hard Brexit, as newly elected Boris Johnson has insisted that the U.K. will leave the European Union on October 31 with or without a deal.

Elsewhere, was down 0.1% to 1.1058, and rose 0.2% to 1.3209, while was up 0.3% to 19.1852.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Forex – Dollar Hits 2-Month High on Brexit Woes; GDP Data Eyed

Investing.com — The dollar hit its highest level in two months early Friday in Europe, resuming its upward trend against both the euro and sterling after unconvincing performances on Thursday from both the European Central Bank and the U.K.’s new Prime Minister.

The , which tracks the greenback against a basket of developed-market peers, rose 97.627 during Asian trading and was hovering just below that level 4 AM ET (0800 GMT). That was its highest since late May.

The dollar’s rise is somewhat counter-intuitive, given that second-quarter figures for the U.S., due at 8:30 AM ET (1230 GMT), are expected to show a sharp slowdown in growth to an annual rate below 2%.

“A number below 2% would be the first reading that low since Q1 2017, and represent a meaningful deceleration,” said John Velis, a currency strategist with BNY Mellon.

The dollar is partly the beneficiary of other currencies’ weakness. Brexit continues to cast shadows over both the pound and, to an increasing extent, the euro, after Prime Minister Boris Johnson’s first overtures to the EU were brusquely rejected by officials on Thursday.

Johnson has said that the Withdrawal Agreement hammered out by his predecessor Theresa May is dead. However, in a telephone call, outgoing European Commission President Jean-Claude Juncker rejected his demands for a renegotiation and said it was “the best and only deal possible.”

has bumped along at multi-year lows since the prospect of a “N-Deal” Brexit under Johnson became the central case scenario two months ago. A new paper by analysts at the Peterson Institute for International Economics argued that while Brexit will leave no country better off, it will hit the U.K. far harder than anyone else.

However, the Brexit effect on the euro is more recent. Clemens Fuest, the head of the Ifo think tank in Munich, told Bloomberg on Thursday that German manufacturing is “in freefall” and that he didn’t expect the decline to bottom out in the event of a No-Deal Brexit.

Sterling’s brief bounce after Johnson’s appointment has now completely reversed and the pound was heading back toward the two-year low it hit on Tuesday.

The euro, meanwhile, was treading water, roughly where it was before the ECB’s ‘all-talk-and-no-action’ governing council meeting Thursday. The euro zone’s central bank indicated it could ease policy substantially in September but disappointed hopes for a modest 0.1% cut in its deposit rate.

Elsewhere, the Turkish lira showed few ill effects of the sharp cut in interest rates from Turkey’s central bank on Thursday. The 425 basis point cut to 19.75% in the CBRT’s key rate was the largest since the country switched to inflation targeting in 2002, and was sharper than the 300 basis points called for by President Recep Tayyip Erdogan. The was at 5.6848 to the dollar, well within its recent ranges.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Forex – U.S. Dollar Flat as Philly Fed Index Jumps to 1-Year High 

© Reuters.  © Reuters.

Investing.com – The U.S. dollar was flat on Thursday after data showing that business activity in the Mid-Atlantic jumped to its strongest level in a year.

The , which measures the greenback’s strength against a basket of six major currencies, was unchanged at 96.850 by 10:32 AM ET (14:32 GMT).

The Philadelphia Federal Reserve said its rose to 21.8 in July, the highest level since July 2018.

A figure above zero suggests the region’s business activity is growing.

Meanwhile a separate report showed that while unemployment claims rose slightly last week, the labor market still remained strong. Initial jobless claims rose 8,000 to a seasonally adjusted 216,000 for the week ended July 13, the Labor Department said, while data for the prior week was revised down by 1,000.

Taken together, the data add little to arguments for the half-point cut in interest rates that some still expect from the Federal Reserve at the end of the month.

The dollar did give up some of its recent gains against the British pound after U.K. lawmakers approved an amendment that would make it harder for the next Prime Minister to suspend parliament in order to force through Brexit on Oct. 31. The amendment would require parliament to be sitting to consider Northern Irish affairs for several days in September and October even if it was suspended.

Sterling rose as high as $ 1.2495 on the news, after having traded below $ 1.24 for the first time in two years earlier this week. By 10:50 AM ET (1450 GMT), it was up 0.4% on the day at $ 1.2480.

Lawmakers backed a proposal by 315 to 274 that would require parliament to be sitting to consider Northern Irish affairs for several days in September and October even if it was suspended.

Elsewhere, traders pushed the rand higher after the South African Reserve Bank cut its key interest rate by 25 basis points to 6.5% and cut its growth forecast to 2019 to a mere 0.6%. The dollar fell 0.7% against the rand to test a new seven-month low at below 13.8900.

That followed an interest rate earlier in the day by the central bank of South Korea, after which the won strengthened some 0.2%.

Ongoing trade disputes between the U.S. and China also weighed on the dollar. The Wall Street Journal reported that the two have stalled on progress towards a deal over disputes on how to ease restrictions on Chinese tech giant Huawei.

Elsewhere, was flat at 1.1221, while gained 0.2% to 1.3075.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Forexlive Americas FX news wrap: Dollar moves lower as Fed speak this week sinks in. PS All time high closes in US stocks

Forex news for NY trading on July 12, 2019.

In other markets: 

  • Spot gold is trading up $ 11.36 or 0.80% at $ 1414.96.  The yelllow metal was helped by a lower USD. Technically, the price at the session lows,  stalled near the 100 hour MA support level, giving the buyers more confidence (and forcing the sellers to buy). See technical post here.
  • WTI crude oil future are trading at $ 60.26, up $ .06 or 0.10%. The high today reached $ 60.74. The low extended to $ 59.93. For the week, the price was up over 4.5% helped by a much larger than expected drawdown of inventories on Wednesday.  For a technical look at the pair CLICK HERE.
  • The price of Bitcoin is trading up $ 447 at $ 11600 despite negative comments on cryptocurrencies from Pres. Trump.
Forex news for NY trading on July 12, 2019.
The major stock indices moved to new record highs just ahead of what is the start of the earnings calendar on Monday.    Moreover the S&P index closed above the 3000 level, after toying with the level on Wednesday and Thursday.  European shares closed mixed with the German Dax and UK FTSE down marginally. 
The US indices closed at the highs for the day and at all time highs heading into the start of the earnings calendar next week. After two days of loads of Fedspeak that did not stop the market from expecting a Fed cut in July, today was a “digest the words” type of day.  That feeling, led to a slightly softer tone for the dollar despite higher than expected PPI. 

However, when Fed’s Evan’s (a new voice this week) started chirping in Chicago, the dollar started to take on an even weaker tone.   Comments included:

  • Business investment weaker than expected
  • Sees growth for 2019 around 2% which is close to what he regards as sustainable trend
  • Business investment has been weaker despite fiscal aid
  • Nervous about under running inflation objective
  • Policy is currently about neutral but could be more accommodated if the aim was to lift inflation
  • A couple of rate cuts could lift inflation by 2021
  • Framework is adequate as long as policymakers are going to actively push for inflation of 2% to assure target is met symmetrically
  • Hard for businesses to make long-term plans given uncertainty around trade landscape
  • Slowing foreign growth is going to dampen the US economy
  • Rsk management approach means being a little more accommodative in case downside risks materialize, but we don’t want to go too far
  • Now am more concerned policy isn’t on  accommodative side
  • Takes seriously the current rates may be more restrictive than should be
  • Could argue for rate cuts on inflation, global slowdown

He seemed to get more and more dovish as he went along.

Overall, the votes are there for a rate cut in July and if Charlie Evans, Vice Chair Williams, Chair Powell, Thomas Barkin, et. al. take the chatter from this week into the meeting at the end of the month, the bias may shift even more to the dovish side for other meetings this year.  

Below is a snapshot the rankings of the strongest and weakest currencies. The AUD is ending as the strongest on risk on sentiment, the USD is the weakest. 

The USD is the weakest of the major currencies.

In the US debt market, yields are ending the session lower, but  off the day’s lowest levels.

The US yields are ending lower
Some technical views/thoughts going into the weekend:
EURUSD: The EURUSD traded up. It traded down. It traded up again and is closing near the day highs. In between the high at 1.12744 and the low at 1.1237 sits the 100 day MA and 200 hour MA at 1.1253. In the NY session,dollar selling in the NY afternoon, took the price back above that bullish above/bearish below barometer. In next week’s trading, the levels will remain
key for the technical bias.   For the week, the low for the week was reached on Tuesday at 1.11927. The high was on Thursday at 1.1285.  The 38.2% of the move down from the June 18 high comes in at 1.1276. A move above that level would be more bullish in the new week.

USDJPY: The USDJPY fell below a neckline level at 107.93, and the 100 bar MA on 4-hour (at 107.956) and 50% retracement of the move up from June 18 on Friday (at 107.878). That area will be close resistance in the new trading week.  Next week on more selling, the 107.53-57 will be a key swing area from June 18 and July 3rd to get below.  If the 108.00 is breached above, the 200 hour MA and 200 bar MA on the 4-hour chart will be a key upside target.  

USDCHF: This is another currency pair that breached a neckline on the hourly chart (see post here), but has other support levels to get below in order to solicit more selling. Those levels include the 100 bar MA on 4-hour at 0.98377 a swing levels from July 2, and July 3rd at 0.9831-35.  Get below in the NY week and there should be more downside momentum.

AUDUSD: The AUD is the strongest of the major currencies today. In the process, the pair based against the 200 hour MA at 0.6984 , moved above a swing area at 0.7012-16 and breached the 100 day MA at 0.70209. The pair did stall near that 100 day MA, leaving the “higher?” or “lower?” decision for next week’s trading.   On more upside, the 0.7047 is the July high  and the highest level since May 1.

USDCAD: The USDCAD was pushed lower on more bearish USD flows, and higher oil in the second half of the week. The pair is closing at the lowest level of the year, and lowest level since October 2018 (trading at 1.3032). A move below the 1.3000 level opens the pair for a shot at the 100 week MA at 1.2980.  

My fingers are tired and I must have lost finger weight from all the typing exercise without Adam this week (and all the Fed speak and other events). I will return part of the favor on Monday and Tuesday (family in town), but look forward to my return on Wednesday.  Thank you for all your support this week and wishing you all a great and safe weekend. 

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed

Investors pour $28 billion in money-market funds as S&P hit record high: Lipper

Investors pour $  28 billion in money-market funds as S&P 500 hit record high: Lipper Investors pour $ 28 billion in money-market funds as S&P 500 hit record high: Lipper

By Jennifer Ablan

(Reuters) – U.S.-based money-market funds attracted about $ 28 billion in the week ended Wednesday, their largest weekly inflow since mid-May, as the rose above 3,000 for the first time on Wednesday.

It was money funds’ third consecutive week of cash inflows, with a four-week moving average of $ 18.8 billion, according to data by Refinitiv’s Lipper.

The move in safe, conservative money-market funds is notable as the S&P 500 Index and the rose above 3,000 and over 27,000 for the first time, respectively, this week.

Earlier this year, BlackRock (NYSE:) CEO Larry Fink pointed out that mom-and-pop investors were under-invested in equity markets and that the group could put money to work in U.S. stocks if markets continue to rise. “We have a risk of a melt-up, not a meltdown here,” Fink said at the time.

For the week ended Wednesday, U.S.-based equity funds – which include both mutual funds and exchange-traded funds – attracted just $ 1 billion in the week, following three weeks of cash withdrawals.

Pat Keon, senior research analyst at Lipper, said this week’s inflows stem from “the strength of equity ETFs (Exchange-Traded Funds) with plus-$ 4.3 billion of inflows, while equity mutual funds saw negative $ 3.3 billion leave their coffers – the group’s 21st straight week of net outflows.”

The flows into equity ETFs were concentrated in one product, the SPDR S&P 500 ETF (NYSE:), which took in over $ 3.7 billion, Keon said.

“Domestic equity mutual funds were responsible for the lion’s share of the net outflows at negative $ 2.6 billion,” he said. “This is the continuation of a long-term trend as the group has had 22 straight weeks of net outflows for a total of -$ 87.1 billion.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Economy News

Forex – U.S. Dollar Slips After Rising to Near Three-Week High on Jobs Report

© Reuters.  © Reuters.

Investing.com – The U.S. dollar slipped on Monday in Asia after jumping to a three-week high on a better-than-expected jobs report that dampened expectations the U.S. Federal Reserve will cut rates aggressively to combat a slowing economy.

Nonfarm payrolls rose by 224,000 in June, well above consensus expectations for 160,000 and a sharp rebound from a downwardly-revised 72,000 in May.

The data boosted the greenback on Friday and sent the U.S. currency to a three-week high of 96.968, before giving up some of its gains today.

The last traded at 96.792 by 1:23 AM ET (5:23 GMT), down 0.1%.

The solid data reduced chances of a Fed rate cut at the end of July. Previously, traders expected the central bank to cut rates by 25 basis points in July and a total of three rate cuts this year to mitigate the effects of the U.S.’s various trade disputes.

The pair was little changed at 1:1227. Data last week showed that German industrial orders fell far more than expected in May.

The country’s Economy Ministry also warned that this sector will likely remain weak in the coming months.

The pair inched down 0.1% to 108.31. The Cabinet Office reported that the country’s core orders fell 7.8% in May from the previous month.

The reading compared with an expected decline of 4.7% and followed a 5.2% rise in April.

Separately, Bank of Japan (BOJ) Governor Haruhiko Kuroda said he expects the country’s economy to grow moderately and gradually push inflation toward the central bank’s 2% target.

“The BOJ will make necessary policy adjustments to sustain the economy’s momentum towards achieving its inflation target,” Kuroda said in a speech on Monday.

The pair traded 0.2% higher to 0.6990.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

The Hong Kong Dollar Is On a Tear, Climbing to Two-Year High

© Bloomberg. Hong Kong one-hundred dollar banknotes are arranged for a photograph in Hong Kong, China, on Wednesday, Jan. 20, 2016.  Photographer: Justin Chin/Bloomberg © Bloomberg. Hong Kong one-hundred dollar banknotes are arranged for a photograph in Hong Kong, China, on Wednesday, Jan. 20, 2016. Photographer: Justin Chin/Bloomberg

(Bloomberg) — The advanced to its strongest since May 2017 as tight liquidity in the city keeps borrowing costs elevated.

The currency rose as much as 0.19% to 7.7827 versus the greenback Thursday, days after it started trading in the strong half of its band for the first time since September. The local one-month interbank rate rose 29 basis points to 2.99% — the highest in more than decade — while the overnight Hibor jumped 84 basis points to 3.14%.

Local money rates are surging as companies hoard cash to pay for dividends and large share sales lock up funds, outstripping the income a trader can expect on U.S. dollars. That’s undermining a once-popular trade to sell the Hong Kong dollar and buy the greenback that had pushed the city’s currency to the weak end of its trading band only months ago. The tighter liquidity has also coincided with recent demonstrations in Hong Kong.

“Hong Kong dollar movement comes with liquidity tightness,” said Frances Cheung, head of Asia macro strategy at Westpac Banking Corp. The liquidity situation will persist until after the second large share offering, she added.

The Asia-Pacific arm of Anheuser-Busch InBev this week started preparing for a listing that could raise as much as $ 9.8 billion, while Alibaba (NYSE:) Group Holding Ltd. is said to have filed for an IPO that could raise $ 20 billion.

The Hong Kong Monetary Authority spent HK$ 22.1 billion ($ 2.8 billion) in March to defend the currency’s peg. The peg means Kong Kong’s de facto central bank effectively imports U.S. monetary policy.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

ForexLive Americas FX news wrap: Canadian dollar touches 7-month high

Forex news for New York trade on June 28, 2019:

Market:

  • Gold flat at $ 1409
  • WTI crude down $ 1.23 to $ 58.20
  • S&P 500 up 17 points to 2941
  • US 10-year yields down 1 bps to 2.00%
  • NZD leads, JPY lags on the day

The Canadian dollar made a pair of attempts to break out and it crossed the finish line on the second one, only to back off later. The GDP number gave it a boost but it was the Business Outlook Survey that sent USD/CAD below the January low of 1.1069 and a further 9 pips lower. However it rebounded all the way to 1.3100 later as oil sank.

EUR/USD was caught up in the month-end madness. It fell briefly on the PCE data but recovered and as around 1.1390 when it chopped on fixing flows before falling to 1.1350 in a quick move and the bouncing 20 pips.

Cable was similarly whippy into month end as it grindied to 1.2730 from 1.2680 only to fall back 30 pips into the London close.

USD/JPY climbed in fits and starts but ultimately ended the day a few pips higher after falling in Europe. Credit a strong finish for US stocks in what was a great month.

AUD and NZD also had strong finishes to the month with NZD/JPY finishing with six straight daily gains. The RBA is on Tuesday but first we will have to get through the G20 and OPEC meeting.

Have a great weekend.

Forex news for New York trade on June 28, 2019:

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed