Forex: Dollar Creeps Lower on Cooling Hopes of Delay to Tariffs on China

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Invesing.com – The U.S. dollar edged lower on Tuesday, as uncertainty over whether the U.S. would delay planned tariffs on imporrts from China continued to weigh on sentiment.

The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.17% to 97.48.

Larry Kudlow, President Donald Trump’s top economic advisor, reportedly said he could not confirm the further tariffs on China would be delayed.

That offset positive news on trade amid a Wall Street Journal report suggesting that the U.S. was mulling a delay to imposing tariffs on China.

Without a deal nor a delay to tariffs before the Dec. 15 deadline, the U.S. is slated to impose tariffs on another $ 156 billion on Chinese goods.

These would include cellphones, laptops and tablets made in China, along with toys, office and schools supplies, some clothing, and even frozen Alaskan pollock fillets.

The dollar was also hurt by a rise in both the euro and the pound.

rose 0.22% to $ 1.1086 as economic data, including a in Germany, was not as bad as feared.

With just two days until U.K. voters head to the booths, the continued to rack up gains against the greenback amid expectations that the ruling Conservative party will secure a parliamentary majority.

Firmer also underpinned a bid in sterling.

rose 0.32% to 1.3184.

As a conservative victory is almost fully priced-in, “even a landslide victory might hardly see the pound rise,” said Oliver Allen at Capital Economics.

rose 0.19% to Y108.75 and was flat at C$ 1.3237.

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Forex – U.S. Dollar Rises on Trade Hopes, Upbeat Data

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Investing.com – The U.S. dollar rose on Friday after comments from U.S. President Donald Trump on China increased hope that the two sides would sign a trade deal soon.

Speaking on Fox News, Trump said a deal with China was “potentially very close,” and also indicated that he might not sign a bill passed this week by Congress that supports Hong Kong in an attempt to appease Beijing.

“We have to stand with Hong Kong, but I’m also standing with President Xi [Jinping], he’s a friend of mine,” Trump said. “He’s an incredible guy, but we have to stand…I’d like to see them work it out, ok?”

The , which measures the greenback’s strength against a basket of six major currencies, was steady at 97.760 as of 9:56 AM ET (14:56 GMT) after rising to 97.920 earlier in the session.

The greenback was also supported by an increase in U.S. output in November, data showed. The activity also picked up, IHS Markit said, as both indexes were at their highest level since April.

The safe-haven Japanese yen was flat with at 108.61.

Elsewhere, sterling tumbled, with falling 0.5% to 1.2845 while slipped 0.1% to 1.1042. The trade-sensitive Australian dollar was flat, with at 0.6784.

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 – U.S. Dollar Little Changed; Hopes for Phase One Trade Deal Recedes

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Investing.com – The U.S. dollar was little changed on Tuesday in Asia as traders await clarity on the Sino-U.S. trade developments.

Citing a government source, CNBC reported that China is pessimistic about a trade deal and found U.S. President Donald Trump’s comment that he did not agree on cancelling tariffs troubling.

Markets preciously expected the deal to be signed in the near future as Chinese Commerce Ministry spokesperson Gao Feng said earlier this month that China and the U.S. had reached an agreement on the tariff rollback, while White House Economic Advisor Larry Kudlow said on Friday that the two sides were close to a deal.

The last traded at 97.675 by 11:44 PM ET (03:44 GMT), up 0.01%.

The pair was near flat at 7.0254. On Monday, the People’s Bank of China slashed the interest rate on its seven-day reverse repurchase agreements for the first time since October 2015

The pair was little changed at 1.2954, after rising 0.4% earlier in the session on news that all Conservative Party candidates at the Dec. 12 election have pledged to back Prime Minister Boris Johson’s Brexit deal.

The pair dropped 0.1% to 0.6797 after minutes from the latest Reserve Bank of Australia policy meeting showed the central bank considered cutting rates this month.

“The Board agreed that a case could be made to ease monetary policy at this meeting, but that the most appropriate approach would be to maintain the current stance of monetary policy and to make another full assessment once more evidence of the effects of the earlier monetary easing had become available,” the minutes said.

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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Fresh trade deal hopes gently lift dollar, Aussie

By Tom Westbrook

SINGAPORE (Reuters) – The dollar and riskier trade-exposed currencies found some support on Friday as fresh hopes for a breakthrough in Sino-U.S. trade talks were tempered with caution.

White House economic adviser Larry Kudlow said late on Thursday that the two parties were getting close to a deal and the “mood music is pretty good”.

He offered no new details, but the sentiment was enough to reverse a little of the safe-haven Japanese yen’s overnight gain and to buoy the Australian and New Zealand dollars.

The yen fell 0.2% to 108.57 per dollar and dropped 0.3% on the rising .

The Australian dollar , which had tumbled on Thursday after an unexpected rise in the national unemployment rate, added 0.2% to $ 0.6795.

The New Zealand dollar rose 0.1% to $ 0.6388. China’s yuan rose 0.2% but remained just shy of strengthening past the 7-per-dollar level at 7.0076.

Against a basket of six major currencies () the greenback was steady at 98.140 as caution and the lack of concrete news in Kudlow’s remarks kept a lid on risk appetite.

“It may not be a game-changer,” said Terence Wu, a treasury strategist at OCBC Bank in Singapore. “Thus, we think any reversal in the risk-off trades may not see a good shelf-life.”

Mixed signals on trade negotiations have abounded in recent days while evidence of the damage the dispute is wreaking on the global economy has mounted.

The next scheduled economic updates are Eurozone trade and inflation data due at 1000 GMT and the New York Fed manufacturing survey due at 1330 GMT.

On Thursday, China’s commerce ministry said the two countries are holding “in-depth” discussions, while U.S. President Donald Trump said on Tuesday a deal was close.

But the Financial Times, citing unidentified people close to the talks, said an agreement may not be reached in time to avoid a new round of U.S. tariffs taking effect on Dec. 15.

Sub-par growth figures on Thursday from China and Japan, followed by lackluster updates in Britain and Europe underlined the potential downside if a deal falters.

Few are game to make a decisive call either way.

“Until we’ve got the word from Donald Trump, no-one’s really willing to get in front of it,” said Jason Wong, senior market strategist at BNZ in Wellington.

The British pound, meanwhile, sat near peaks scaled overnight.

Sterling touched a six-month high against the euro and gained on the dollar as expectations that Britain’s ruling Conservative Party might win a majority in a Dec. 12 election fueled optimism the Brexit impasse will finally end.

The pound stood at $ 1.2880 and at 0.8559 pence per euro in Asian trade. “Markets now appear to be priced for a high likelihood of a majority Conservative government,” RBC Chief Currency Strategist Adam Cole said in a note.

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 Consolidates After Hitting 3-Week High on Trade Hopes

Investing.com — The dollar was consolidating in early trade in Friday after surging to a three-week high on Thursday in response to growing confidence that the economically damaging tariffs enacted by the U.S. and China on each other’s products will be reversed.

By 3 AM ET (0700 GMT), the was at 97.992, having risen as high as 98.078 overnight thanks to gains against the British pound, euro and Australian dollar. The index tracks the greenback against a basket of developed market currencies.

The Japanese , a haven currency that has suffered particularly badly as hopes for a trade settlement have grown staged a modest comeback overnight after stronger-than-expected numbers for September overnight.

Elsewhere in Asia, the weakened after Moody’s cut India’s sovereign rating outlook to negative from stable, citing rising public deficits and debt levels.

The , meanwhile, was opening flat. It hit a two-week low on Thursday, dipping briefly below $ 1.2800 after the Bank of England adopted a more dovish outlook about the possible need for interest rate cuts, given the weakening of global growth this year and the hit to domestic growth from the prolonged uncertainty over Brexit. That uncertainty is set to extended well into next year by the general election on Dec. 12.

For the first time in over a year, two members of the bank’s Monetary Policy Committee dissented from the overall view, calling for an immediate rate cut.

“All told, the MPC is demonstrating a clear easing bias, and given the downside risks to growth, looks increasingly minded to ease policy early next year,” said ABN Amro Bill Diviney in a morning note.

The has also traded weaker since Thursday morning when the European Commission’s forecast reflected low expectations for the kind of fiscal stimulus that many, including the European Central Bank and International Monetary Fund, say is needed to revive the euro zone economy.

After another weak set of German industrial output data earlier in the week, ’s are due at 3:45 AM ET (0745 GMT). The U.S. data calendar for Friday is led by the University of Michigan’s survey at 10 AM ET.

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 Rises Against Safe Haven Yen on Trade Deal Hopes

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Investing.com – The U.S. dollar was higher against the safe haven Japanese yen on Tuesday amid hopes that the U.S. and China are getting closer to a preliminary agreement to resolve their protracted trade war, which has raised fears of a global economic slowdown.

The dollar rose 0.26% against the to 108.82 by 03:19 AM ET (08:19 GMT), building on Monday’s gains of 0.4%. The , meanwhile, strengthened below 7 to the dollar for the first time in three months.

In recent days, Beijing and Washington have given encouraging signs of progress in trade talks.

Reuters reported that China is pushing U.S. President Donald Trump to remove more tariffs imposed in September as part of a “phase one” trade deal expected to be signed later this month at a yet-to-be determined location.

Both countries have slapped tariffs on each other’s goods in a trade war that has dragged on for 16 months.

“There may have been some expectations that the U.S. may postpone the remaining tariffs, which are due to kick in on Dec. 15. But if it goes further by rolling back existing tariffs, that would not only benefit the economy but would also make the truce seem more permanent,” said Yukino Yamada, senior strategist at Daiwa Securities.

The against a basket of six major currencies was steady at 97.32, holding just below the one-week highs of 97.47 reached overnight.

The was a touch higher against the greenback at 1.1133, while the edged up to 1.2895.

The was also higher, rising 0.43% to 0.6912 as investors became more comfortable with taking on risk.

Earlier Tuesday, the Reserve Bank of Australia left its cash rate at a record low of 0.75% and reiterated its concern about consumer spending. It said rates are likely to remain low for an extended period.

Many economists expect the RBA to cut rates at least once early next year to help revive inflation and a slowing economy.

–Reuters contributed to this report

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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 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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Forex – Pound Falls Despite Renewed Brexit Hopes; Dollar Rises Amid Trade Progress

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Investing.com – The British pound fell against the U.S. dollar on Monday in Asia despite renewed Brexit hopes. The greenback inched up amid positive trade progress with China.

The GBP/USD pair lost 0.3% to 1.2614 1:25 AM ET (05:25 GMT). The pound rose on Friday amid signs of a possible agreement on the Irish border problem.

Reports suggested that the U.K. had conceded that the province of Northern Ireland would remain in the EU customs area immediately after Brexit – a move that would satisfy EU concerns about the integrity of its border.

U.K. Prime Minister Boris Johnson said he thought there was a way forward for a Brexit deal with the European Union, adding that “there is work to be done.”

Meanwhile, the yuan gained today after the U.S. paused its plan to impose more tariffs on Chinese goods this week. The USD/CNY pair lost 0.5% to 7.0538.

On the data front, China’s U.S. dollar-denominated exports were down 3.2% in September, slightly more than expected. Imports also fell more than analysts’ forecast, customs data showed on Monday.

That left China with a trade surplus of $ 39.65 billion in September, compared with a $ 34.84 billion surplus in August.

Analysts previously expected exports to decline by 3%, while imports were expected to drop by 5.2%.

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

The U.S. dollar index inched up 0.1% to 98.123. According to the partial trade deal Washington and Beijing reached late last week, Beijing will make large agricultural purchases worth as much as $ 50 billion and take steps on intellectual property, financial services and the yuan.

The USD/JPY pair inched down 0.1% to 108.31.

The AUD/USD pair and the NZD/USD pair lost 0.1% and 0.3% 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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