Forex – Sterling Slips vs Dollar, Euro as Vlieghe Fuels Rate Hopes

© Reuters.  © Reuters.

Investing.com — The dollar opened the week stronger against the and the Japanese , but weaker against the euro, with markets still unsettled by the weak labor market report on Friday.

The , which measures the greenback against a basket of currencies, was effectively unchanged at 3:10 AM ET (0810 GMT) at 97.130. However, that masked a 0.5% rise for the dollar against sterling, which continued to suffer from speculation on an interest rate cut from the Bank of England. The was up marginally at $ 1.1128.

Speeches by Governor Mark Carney and Monetary Policy Committee member Silvana Tenreyro last week had encouraged hopes of a cut. Over the weekend, another MPC member Gertjan Vlieghe, had signalled in an interview with the Financial Times that he would also back a rate cut barring “an imminent and significant improvement in the U.K. data.”

Vlieghe will get his chance to judge on that at 4:30 AM ET (0930 GMT) with the latest update on and its components, along with data for November. The National Institute of Economic and Social Research publishes its later at 9 AM ET (1400 GMT).

“Sterling seems to be caught between the bid from the under-weight asset managers and some speculators seeing the Brexit uncertainty lifted on the one hand, and the under-appreciated risks of a rate cut and a no-deal Brexit still on the other,” said Marc Chandler, managing partner of Bannockburn Global Forex. He sees a near-term range of $ 1.2900-$ 1.3200 for Cable.

The continued unrest in Iran over the weekend appears to have had little impact on broader sentiment, which is firmly in risk-on mode as the risk of war with the U.S. recedes and the signing of the preliminary trade agreement between China and the U.S. – scheduled for Wednesday – draws nearer.

The broke through 6.90 to the dollar for the first time in five months overnight, while the rose to a 20-month high. The dollar also continued to lose ground against other barometers of risk appetite such as the Indonesian and Turkish .

Analysts at Nordea pointed to the incongruity of sharply rising emerging market currencies, given the consistently weak numbers coming out of global purchasing manager indexes.

“Either EM FX and equities are too expensive or else the global manufacturing PMI is about to explode higher. It is do or die time,” analysts Andrea Steno Larsen and Martin Enlund said. “It’s very hard to find a trigger for a weakening market at present (outside of Iran maybe) but maybe that is a worrying sign in itself?”

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Asian shares rise on China’s policy easing, trade deal hopes

© Reuters. Passersby are reflected on a stock quotation board outside a brokerage in Tokyo © Reuters. Passersby are reflected on a stock quotation board outside a brokerage in Tokyo

By Andrew Galbraith

SHANGHAI (Reuters) – Asian shares kicked off the new decade higher on Thursday, after global stocks ended the previous one at record highs, and buoyed by Chinese markets after Beijing eased monetary policy to support slowing growth.

Investors also cheered news that the United States and China will sign a trade pact soon after a year of volatile negotiations between the world’s two largest economies.

MSCI’s broadest index of Asia-Pacific shares outside Japan () was up 0.35% in morning trade after rising 5.6% in December.

U.S. President Donald Trump said on Tuesday that Phase 1 of trade deal with China would be signed on Jan. 15 at the White House, though uncertainty surrounds details about the agreement.

Rising hopes for a resolution to the U.S.-China trade war helped propel global equities to record highs late last year and depress the value of the U.S. dollar.

MSCI’s all-country world index () of stock performance in 49 nations touched an all-time high of 567.80 on Dec. 27. It was last quoted at 565.46, off 0.41% from that peak.

In China, the blue-chip CSI300 index (), one of the world’s best-performing indexes last year, was 1.34% higher in early trade.

China’s central bank on Wednesday that it would cut the amount of cash that banks must hold as reserves, releasing around 800 billion yuan in funds effective Jan. 6.

“I think the monetary angle in terms of what it means for the companies, is not that important,” said Jim McCafferty, head of Asia ex-Japan equity research at Nomura in Hong Kong.

“However for what it means for the consumer point of view, then clearly if there’s easy money and … individuals can borrow cheaply, repay debt quickly, then that of course is going to help the economy and the companies.”

McCafferty said he expects a memory up-cycle and new handset development prompted by the rollout of 5G mobile technology could help to lift tech-heavy markets like Korea and Taiwan this year.

Australian shares () flicked between small gains and losses, and were last up 0.2%. Seoul’s Kospi () began the year down 0.85%, while shares in Taiwan () added 0.51%.

Markets in Japan are closed for a national holiday.

The gains in Asia follow a bullish end to the year on Wall Street on Tuesday. The Dow Jones Industrial Average () rose 0.27% to 28,538.44 and the S&P 500 () gained 0.29% to 3,230.78. The Nasdaq Composite () added 0.3% to 8,972.60.

In currency markets on Thursday, the dollar continued to weaken slightly against major peers as investors bet on a better outlook for global growth and trade.

The dollar was 0.06% weaker against the yen at 108.64 while the euro () gained 0.11% to 1.1222.

The (), which tracks the greenback against a basket of six rivals, was little changed, rising 0.04% to 96.427.

U.S. crude () was up 0.36% to $ 61.28 and global benchmark Brent crude () rose to $ 66.24 per barrel, building on a rise that gave oil its biggest annual gain in three years in 2019.

Gold, which has benefited from a weaker greenback, was up 0.18% on the spot market, fetching $ 1,519.64 per ounce. [GOL/]

Graphic: Asian stock markets https://product.datastream.com/dscharting/gateway.aspx?guid=516bc8cb-b44e-4346-bce3-06590d8e396b&action=REFRESH

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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.

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; 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.

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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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

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 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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