Forex – U.S. Dollar Near Flat Ahead of Fed Minutes

© Reuters.  © Reuters.

Investing.com – The U.S. dollar was near flat on Wednesday in Asia as traders remained cautious ahead of the release of minutes from the U.S. Federal Reserve’s last policy meeting due later in the day.

The that tracks a basket of other currencies last traded at 97.9by 1:20 AM ET (05:20 GMT), up 0.02%.

Hopes for trade progress were dashed overnight by another warning from U.S. President Donald Trump, who said that he may raise tariffs even further if talks collapse.

Tensions between the two sides rose even further after the U.S. Senate passed two Hong Kong-related bills that support protesters in the city.

China’s foreign ministry spokesman called the decision a blatant interference in China’s internal affairs, and said the U.S. faced “negative consequences” if it persisted.

CNBC reported earlier this week that Beijing is pessimistic about reaching an agreement with the U.S.

“Trade headlines is dominating sentiment but in terms of the key event risk, the release of the Fed minutes will be a big one for market participants,” said Morten Lund, a senior FX strategist at Nordea in a Reuters report.

The pair inched up 0.1% to 7.0277.

The pair fell 0.2% to 0.6813. Minutes published on Tuesday showed that the Reserve Bank of Australia “agreed a case could be made” for another cut in the 0.75% cash rate at its November meeting.

The pair also dropped 0.2% to 0.6419.

The pair was little changed at 108.51. Ministry of Finance data showed today that Japan’s fell 9.2% in October from a year ago, a bigger decline than the expected 7.6% drop.

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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GBP/USD is near support

The pound is under pressure

The pound is under pressure

GBP/USD formed a lower high at the start of this month, pressured by the strong resistance in the 1.30 area. Not far above it, there are the declining 100- and 200-week MAs.

This zone looks even more like a hard obstacle if we remember about the ongoing political uncertainty in the UK and the recent hints from the Bank of England that it’s ready to cut rates in a no-deal Brexit scenario.

The Awesome Oscillator is declining on the D1. The decline below support at 1.28 will confirm a “double top” and lead the price down to 1.2730 (50-week MA) and 1.2700 (200-day MA). There will likely be demand for the pound at these levels limiting the further decline.

The short-term downtrend creates resistance around 1.2850 and 1.2880 (50- and 100-period MAs on the H4). An increase above the latter is needed to allow GBP/USD retest 1.2950 (resistance line connecting October and November highs). 

GBP chart

This post is written and submitted by FBS Markets for informational purposes only. In no way shall it be interpreted or construed to create any warranties of any kind, including an offer to buy or sell any currencies or other instruments.

The views and ideas shared in this article are deemed reliable and based on the most up-to-date and trustworthy sources. However, the company does not take any responsibility for accuracy and completeness of the information, and the views expressed in the article may be subject to change without prior notice. 

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Ruble Recaptures Emerging-Market Crown With Yields Near 2013 Low

© Reuters.  Ruble Recaptures Emerging-Market Crown With Yields Near 2013 Low © Reuters. Ruble Recaptures Emerging-Market Crown With Yields Near 2013 Low

(Bloomberg) — Russia’s is once again the year’s best performer in emerging-markets and benchmark bond yields have dropped to levels not seen since before the annexation of Crimea as a dovish central bank and renewed risk appetite help extend a rally.

The ruble shrugged off sliding oil prices and headed for its best week since March, while the rate on , known as OFZs, dropped toward the lowest closing level since 2013. Central Bank Governor Elvira Nabiullina gave fresh impetus to the bond rally last week when she hinted during a rates meeting at deeper-than-expected cuts.

“The likelihood of seeing a key rate lower than 6.5% has grown since the meeting,” said Tatiana Evdokimova, an analyst at Nordea Bank in Moscow. “In the short term that will increase interest in OFZs.”

After cutting the key rate at a third consecutive meeting to 7% last week, the Bank of Russia removed mention of a 6%-7% neutral rate in its outlook, implying that there may be room to cut further. Emerging-markets assets also got a boost on Thursday when European Central Bank President Mario Draghi announced large-scale stimulus, including a bond-purchase program, and reduced its deposit rate.

Currencies in developing nations climbed for an eighth day on Friday, set for their longest stretch of gains since January 2018 on growing optimism for a resolution in the U.S.-China trade conflict.

Markets at a glance:

  • The ruble was the second-best performer among developing-nation peers on Friday, strengthening 0.8% to 64.18 against the dollar as of 2:53 p.m. in Moscow
  • The currency has handed carry traders a return of 4.2% this month
  • The yield on 10-year ruble notes was two basis points lower at 6.98%, down 14 basis points in September
  • The cost of insuring Russia’s soveriegn debt against default has tumbled to the lowest level since 2007

Inflation in Russia has plunged this year, meaning that even after three rate reductions, Russia’s real rates are still among the highest in emerging markets. They offer some of the juiciest returns globally at a time when central banks worldwide are cutting.

“With its positive real yield, negative net debt and budget surplus, the ruble looks extremely attractive as a carry trade,” Andrei Kochetkov, Otkritie Brokerage analyst, wrote in a note

From last week: Bank of Russia Signals More Easing

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 Hovering Near 2-Week Highs, Sterling Edges Up

© Reuters.  © Reuters.

Investing.com – The U.S. dollar was hovering near two-week highs against a currency basket on Monday as U.S. Treasury yields bounced back from recent lows amid hopes that major economies will seek to prop up slowing growth with fresh stimulus.

The , against a basket of six major currencies was at 98.05 by 03:01 AM ET (07:01 GMT), not far from the two-week high of 98.20 reached on Friday.

The stood at 1.57%, having pulled away from a three-year trough of 1.47% marked last week in the wake of global slowdown fears.

Falling yields last week caused the two-year/10-year Treasury curve to invert for the first since 2007, a phenomenon widely regarded as a recession signal that puts the Federal Reserve interest rate deliberations into focus.

“This week’s main event is the Jackson Hole symposium and Fed Chairman (Jerome) Powell’s speech,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.

Powell will deliver a speech on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming.

“What Powell has to say is in focus as the discrepancy remains between what he said on interest rates and what the markets have come to expect the Fed will do,” Ishikawa said.

Powell said after the Fed lowered rates in July that the easing was not the start of a series of cuts. But market expectations for the Fed to cut rates by another 25 basis points at the next policy meeting in September have increased.

The was steady at 1.1092 while the edged up 0.15% to 1.2166.

The dollar was little changed against the at 106.37.

The was slightly lower after U.S. President Donald Trump said he was not ready yet to make a trade with China.

Traders were also cautious ahead of the debut of China’s new benchmark lending rate on Tuesday, which was announced at the weekend.

The People’s Bank of China on Saturday unveiled interest rate reforms to help lower borrowing costs for companies and support slowing growth, which has been hit by the trade war with the U.S.

–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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CHP officer killed and 2 wounded in shootout near L.A.-area freeway

Riverside, Calif. – One officer is dead, another in critical condition and a third has minor injuries after a shootout Monday that also killed the gunman, authorities said. Dozens of gunshots were fired near Interstate 215 in Riverside, east of Los Angeles.

CHP Assistant Chief Scott Parker told reporters at a Monday night news conference an officer who pulled over a white GMC pickup truck was filling out impound paperwork when the driver pulled a rifle of unknown caliber from the truck and began firing.

The officer was wounded but managed to call for help. He was airlifted to a hospital but succumbed to his wounds.

Trending News

Authorities said CHP officers, Riverside police and sheriff’s deputies arrived and continued trading gunfire, with the suspect taking cover in the front of the pickup. Two other CHP officers were hit before the gunman was killed.

chp-gun-battle-081219.jpg
Officers in shootout near Riverside, Calif. freeway on August 12, 2019 CBS Los Angeles

Police withheld the shooter’s name and said they don’t have a motive for the attack. It wasn’t clear why the car was stopped.

California Gov. Gavin Newsom extended his condolences via Twitter:

Riverside Police Chief Sergio Diaz told reporters officers’ body cam video and civilian eyewitness accounts would be part of the investigation of the shooting. “It was a long and horrific gun battle,” he said.

Video from the scene shows bullet holes in the front windows of two patrol cars and large holes blown in their back windows. What appeared to be an assault-style rifle was on the ground.

Two civilians were hurt – one was in another car and hit by flying glass that caused minor injuries, authorities said. The other civilian’s injuries also were minor.

Jennifer Moctezuma, 31, of Moreno Valley told the Los Angeles Times that she was driving home with her 6-year-old twins when a bullet flew through her front windshield.

Charles Childress, 56, a retired Marine from Moreno Valley, was in the car behind her.

He led the family as they crawled to the bottom of a bridge to hide and none were harmed, the Times reported.

“He’s my hero,” Moctezuma said.

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U.S. – CBSNews.com

Forex – Pound Recovers Slightly; Yuan Near Flat After PMI Data, Trade News

© Reuters.  © Reuters.

Investing.com – The British pound recovered slightly on Wednesday in Asia after falling to near two-year lows in the previous session amid the increasing likelihood of a disruptive Brexit on October 31.

The pair inched up 0.1% to 1.2155 by 12:30 AM ET (04:30 GMT).

Incoming Prime Minister Boris Johnson reiterated earlier this week that he would not meet with other European leaders unless they first agreed to remove the contentious “Irish backstop” provisions from the Withdrawal Agreement negotiated by his predecessor, Theresa May.

Johnson also said he wants to take the U.K. out of the European Union (EU) in October regardless of whether or not there is a deal by then.

Meanwhile, EU officials continued to insist that the Withdrawal Agreement – which has been rejected three times by the U.K.’s parliament – won’t be reopened.

The pair was little changed at 6.8812.

Negative news on the Sino-U.S. trade development were in focus.

In a tweet overnight, U.S. President Donald Trump accused China of not purchasing more U.S.-made agricultural products as promised.

Trump said on Twitter: “The problem with them waiting … is that if & when I win, the deal that they get will be much tougher than what we are negotiating now … or no deal at all.”

The Global Times, China’s state-owned media, said the U.S. must show “sincerity” in trade talks to ease tensions between the two sides, adding that the U.S. side should hold “reasonable expectations” after making “unrealistic demands that infringe upon China’s sovereignty and dignity”.

“If Washington still holds the illusion that Beijing will somehow cave in and compromise on issues concerning sovereignty and other related core interests to reach a deal, then no deal is fine,” the article said.

On the data front, China’s in July came in at 49.7, higher than the forecasted 49.6 and June’s 49.4. for the month was at 53.7, lower than the expected 54.0 and last month’s 54.2.

The safe-haven yen was also near flat despite falling stock markets in Asia today. The pair last traded at 108.56, down 0.02%.

The that tracks the greenback against a basket of other currencies was unchanged at 97.817.

The pair rose 0.3%, while the pair fell 0.2%.

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 Near Flat Ahead of Fed; Sino-U.S. Trade Talks in Focus

© Reuters.  © Reuters.

Investing.com – The U.S. dollar was near flat on Monday in Asia as traders remained cautious ahead of the highly anticipated U.S. Federal Reserve decision due later this week.

Policymakers are widely expected to deliver their first rate cut in more than a decade amid concerns over slowing growth and subdued inflation.

The central bank has faced repeated criticism from President Donald Trump over its rate increases and the ongoing reduction of its balance sheet. Trump believes the measures are holding back growth.

The U.S. Dollar that tracks the greenback against a basket of other currencies was little changed at 97.722 by 11:35 AM ET (03:35 GMT).

The greenback was near two-month highs last week. Last Friday, data showed U.S. grew at a 2.1% annualized rate in the second quarter, weaker than the 3.1% pace in the first quarter but stronger than the 1.8% forecast by economists.

Looking ahead, U.S. job report for July is due later this week. Analysts expect the economy to add 160,000 jobs, slowing from 224,000 in June. The unemployment rate is expected to tick down to 3.6%.

The pair was down 0.1% to 1.2370. The pound has now fallen more than 5% against the U.S. dollar since May, largely on fears of a no-deal Brexit.

The Bank of England is expected to keep rates on hold at its meeting on Thursday.

The pair slipped 0.1%. The Bank of Japan is expected to hold rates unchanged on Tuesday when it meets. Governor Haruhiko Kuroda’s briefing will follow the meeting on the same day.

Meanwhile, the pair gained 0.2% to 6.6911. Chinese and U.S. officials will meet on Tuesday for two days of trade talks, according to reports. It is suggested neither side is expecting much hope for a breakthrough. Vice Premier Liu He is expected to lead the talks for China.

The talks will come after a truce reached by President Donald Trump and Chinese leader Xi Jinping on the sidelines of the G-20 summit Japan in June.

“There is still a huge gap between the two sides on key sticking points,” said Robin Xing, chief China economist at Morgan Stanley (NYSE:) in Hong Kong, in a Bloomberg report. “So far there is still no clear path toward a comprehensive deal.”

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 Slips, Euro Remains Near 2-Month Lows Ahead of ECB Policy Meeting

© Reuters.  © Reuters.

Investing.com – The euro remained near 2-month low against the U.S. dollar on Thursday in Asia ahead of the European Central Bank’s (ECB) policy meeting due later in the day.

The pair was little changed at 1.1136 by 1:04 AM ET (05:04 GMT).

Some traders expect dovish guidance from the central bank, which paves the way for easing in September.

The euro is now down about 2% in July on speculation of an ECB easing amid continuing concerns surrounding the Sino-U.S. trade war.

Meanwhile, data that showed Germany’s manufacturing sector contracted at the quickest pace in seven years and French business growth has also unexpectedly slowed also sent the euro lower.

Meanwhile, the pair slipped but was off session lows. Boris Johnson on Tuesday won the contest to be the next British prime minister and raised concerns of a no-deal Brexit.

The pair inched up 0.1% to 6.8753. PBOC sets USD/CNY reference rate for Thursday trade at 6.8737 versus Wednesday’s 6.8860.

The that tracks the greenback against a basket of other currencies was unchanged at 97.460. Officials from the U.S. and China will resume in-person trade talks in Beijing as soon as next week, Treasury Secretary Steven Mnuchin said.

“I would say there are a lot of issues,” Mnuchin said. “My expectations is this will be followed up with a meeting back in D.C. after this and hopefully we’ll continue to progress.”

The pair slipped 0.1% to 108.08.

The pair and the pair also slipped 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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Euro stuck near two-month low as markets brace for dovish ECB

By Stanley White

TOKYO (Reuters) – The euro was mired near a two-month low on Thursday ahead of a European Central Bank meeting that could signal monetary easing as growth in the currency zone falters.

Sentiment toward the single currency took a blow after data showed Germany’s manufacturing sector contracted at the fastest pace in seven years while French business growth unexpectedly slowed, sending European bond yields lower.

In Asia, emerging currencies edged lower after North Korea fired two short-range missiles into the sea early on Thursday, diminishing appetite for riskier assets in the region.

However, investor focus in Asia remains predominantly on global central bank and political developments, particularly in Europe and the United States.

Sterling held onto gains it made since Boris Johnson took office as Britain’s new prime minister on Wednesday, but investors are still wary of a no-deal Brexit in which Britain would leave the European Union without a trade agreement.

The dollar found support after U.S. Treasury Secretary Steven Mnuchin said he would not advocate for a weaker currency.

Investor focus shifts to the ECB’s meeting later on Thursday and a widely expected interest rate cut from the U.S. Federal Reserve next week, which are both expected to dictate the tempo for currencies and bond yields in coming months.

“I see more downside for the euro, because there are no good signs coming from Europe at the moment,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities in Tokyo.

“Don’t expect European bond yields to rise anytime soon. The U.S. is headed toward lower rates, which used to be a supportive factor for the euro, but that is no longer the case.”

The common currency () traded at $ 1.11415 after touching $ 1.11270, its lowest since May 31.

The euro has fallen 2.0% so far this month on increased speculation the ECB would join other central banks in easing policy as a trade war between the United States and China weakens the global economy.

Traders see a 48% probability that European policymakers will lower a key deposit rate by 10 basis points to minus 0.50%, according to interest rate swaps.

If the ECB keeps policy on hold Thursday, economists say President Mario Draghi could flag a rate cut for the next policy meeting in September.

The Ifo institute will release its closely-watched index of German business sentiment later on Thursday, which will provide further clues about the health of Europe’s largest economy.

Sterling was a shade higher at $ 1.2484, staging a modest recovery from a 27-month low of $ 1.2382 reached last week.

Johnson promised in his first speech as prime minister to lead Britain out of the EU on Oct. 31 with “no ifs or buts” and warned there would be a no-deal Brexit if the bloc refused to negotiate.

The dollar traded at 108.200 yen , near a one-week high of 108.290 yen.

Mnuchin told CNBC in an interview the United States benefits from the greenback’s standing as the world’s reserve currency.

The dollar was also supported by a White House statement that top U.S. negotiators will meet their Chinese counterparts in Shanghai starting July 30.

The world’s two-biggest economies are seeking a resolution to their bruising trade war.

The (), which measures the greenback against six major currencies, stood at 97.701 after touching an eight-week high of 97.810 on Wednesday.

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USD/JPY into positive territory as US stocks near record

USD/JPY to take a look at yesterday’s high

USD/JPY to take a look at yesterday's high

USD/JPY has erased today’s loss as equity markets grind higher. The S&P 500 opened 10 points lower but has steadily battled back and is now up 12 points to 3017 — just shy of the all-time record.

 

Watch out for stops in stocks and USD/JPY if they both break higher.

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