Sterling sparkles after election poll, yuan up on trade deal reports

© Reuters. The Wider Image: African churches boom in London's backstreets © Reuters. The Wider Image: African churches boom in London’s backstreets

By Stanley White

TOKYO (Reuters) – The pound rose to a three-and-a-half year high versus the euro and the highest in more than a year versus the dollar after exit polls suggested a win for the Conservatives, which should help ensure the UK’s smooth exit from the European Union.

The rose in offshore trade and the Japanese yen fell after a source told Reuters that the United States and China have agreed some tariff reductions and a delay on tariffs set to go effect on Dec. 15.

The early results suggest the election will relieve almost four years of uncertainty about when Brexit would take place, which should be supportive of the pound.

A successful scaling back of trade tension would relieve one major headwind to economic growth, which suggests lower demand for the safe-haven yen. Avoiding new tariffs should also be a boost to China’s slowing economy, which should draw more investors to the yuan.

“We’ve already seen a strong reaction in the pound from the exit poll,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“We also see a rise in stock futures in reaction to two very important pieces of news for markets. This should support global growth. The yuan can also go higher, but it depends on how much dollar strength we get.”

Against the euro, sterling () rose around 2% to as high as 82.80 pence, the highest since July 2016, which is shortly after the Brexit referendum that hammered the currency.

The pound surged by 2.2% to $ 1.3474, reaching the highest since May 2018.

The pound plunged more than 10% in the immediate aftermath of Britain’s vote to leave the European Union in June 2016, while $ 2 trillion was wiped off world markets.

The exit poll, which suggested UK Prime Minister Boris Johnson would get a majority of 86 – the largest of any Conservative leader since Margaret Thatcher won in the 1980s – should empower him to deliver Brexit on Jan. 31.

Official results will be declared over the next seven hours.

Even if Brexit is completed on Jan. 31, there is still some uncertainty because Britain will then enter a transition period during which it will negotiate a new relationship with the remaining 27 EU states.

In the offshore market, the Chinese yuan rose 0.33% to 6.9273 per dollar, after surging on Thursday to the highest since Aug. 1 due to relief about a resolution to trade friction.

As part of the trade deal, China has also agreed to purchase $ 50 billion of U.S. agricultural goods next year, sources familiar with the talks told Reuters.

The yuan rallied and the yen fell late on Thursday after Bloomberg News reported that U.S. President Donald Trump signed off on a trade deal with China that will delay a new round of tariffs scheduled for Dec. 15.

A trade dispute between the United States and China over Chinese trading practices that Washington says are unfair has dragged on for almost two years, making the stand off the biggest risk to the global economy.

Against the dollar, the yen fell to 109.595, the weakest since Dec. 2.

The () against a basket of six major currencies fell 0.35% to 96.736, approaching the lowest since July this year.

Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

Let’s block ads! (Why?)

Forex News

NewsBreak: No Brexit Deal Today – Reports

© Reuters.  © Reuters.

Investing.com – The U.K. and EU will not announce a deal on Brexit Wednesday, according to several published reports. But a deal could still be announced later in the week as it was unclear at what juncture negotiations were at.

  • , which had been bouncing around on headlines throughout the trading day, retreated after the reports, but was still up 0.3% at $ 1.2827.
  • ITV (LON:) political editor Robert Peston tweeted that there was “now no chance of Brexit deal tonight. Not at all sure about what that means for what can be agreed by EU leaders on Thursday and Friday.”
  • 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

    Politico reports US House Democrats will delay a full house vote authorizing Trump impeachment inquiry

    HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

    ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

    Let’s block ads! (Why?)

    Forexlive RSS Breaking news feed

    Japan media reports the G7 summit this weekend may end acrimoniously due to trade dispute

    HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

    ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

    Let’s block ads! (Why?)

    Forexlive RSS Breaking news feed

    Amazon Echo devices made by Chinese teens ‘working through night’ – reports

    Amazon has pledged to investigate allegations that hundreds of teenagers are working illegal hours at a Chinese factory producing its Echo devices.

    A new report by China Labor Watch claims more than 1,500 “interns” were manufacturing the smart assistants at a factory run by supplier Foxconn.

    The teenagers, aged between 16 and 18, were reportedly pressured into work 60 hours a week and night shifts.

    Foxconn has blamed local managers and vowed to improve monitoring of staff.

    The company, which makes products for a number of technology giants, has allegedly fired two senior staff members at the site in Hengyang, Bloomberg reports.

    It is the latest in a string of controversies surrounding working conditions at the manufacturer, which is headquartered in Taiwan.

    In 2017, it emerged some students were working illegal overtime at another Foxconn facility making Apple iPhone Xs.

    What does the report say?

    The latest report into Foxconn, first detailed in the Guardian, alleges hundreds of school students have been drafted in from local vocational schools to help fulfil orders.

    The report alleges the so-called interns are paid as little as $ 1.42 (£1.18) an hour, or about $ 248 (£205) a month, for their time. The teenagers were reportedly expected to work 10 hour shifts, including two hours overtime, six times a week.

    China Labor Watch say many students sleep in shared dormitories and face pressure from teachers, who are also recruited, to work hours that violate labour regulation.

    “If interns were unwilling to work overtime or night shifts, the factory would arrange for teachers to pressure workers,” the report says. “For interns who refuse to work overtime and night shifts, the factory requests teachers from their schools to fire them.”

    Activists also make allegations of physical and verbal abuse by teachers at the site. The intern’s schools are compensated financially for their time, the report adds.

    One student, a 17-year-old named as Xiao Fang, was quoted by China Labor Watch describing her role putting protective film over about 3,000 Echo Dot devices a day.

    The report says she found working in the “very bright” and “hot” factory very tiring and she did not want to work overtime.

    “The teacher went to speak to Xiao Fang and said that if she doesn’t work overtime, she can’t intern at Foxconn and this will affect her graduation and scholarship applications at the school etc,” the report says.

    “With no choice, Xiao Fang could only endure this.”

    What has the response been?

    Amazon, owned by the world’s richest man Jeff Bezos, said in a statement to the BBC it does not tolerate violations to its supplier code of conduct.

    “We are urgently investigating these allegations and addressing this with Foxconn at the most senior level,” the statement said. “Additional teams of specialists arrived on-site this wee k to investigate, and we’ve initiated weekly audits of this issue.”

    The BBC has approached Foxconn for comment. In a statement to the Guardian newspaper, the company said it had “doubled the oversight and monitoring” of its school programme.

    “There have been instances in the past where lax oversight on the part of the local management team has allowed this to happen and, while the impacted interns were paid the additional wages associated with these shifts, this is not acceptable and we have taken immediate steps to ensure it will not be repeated,” they said.

    Foxconn also reportedly pledged to review salaries and increase regular worker levels.

    Media playback is unsupported on your device

    Let’s block ads! (Why?)

    BBC News – Technology

    ForexLive Americas FX news wrap: US and Canada jobs reports go in opposite directions

    Forex news for North American trading on June 7, 2019:

    Markets:

    • S&P 500 up 30 points to 2873
    • WTI crude up $ 1.45 to $ 63.50
    • Gold up $ 5 to $ 1340
    • US 10-year yields down 4 bps to 2.08%
    • CAD leads, USD lags

    The jobs report were the big story of the day and a weak non-farm payrolls number along with soft wage growth sparked US dollar weakness across the board. Talk of rate cuts ramped up with the market now looking at a 75% chance in July.

    In Canada it was a different story as the unemployment rate fell to an all-time low on another month of surprise strength. USD/CAD fell 0.75% with the pair down to 1.3267 and finishing just above the lows of the day.

    The head-scratcher in markets continues to by why equity markets are so buoyant. Rate cut hopes are obviously part of the equation but that’s going to be little consolation of there is a recession or sharp slowdown due to a trade war. USD/JPY reflected that push and pull as it fell to 107.88 after the jobs report but clawed back to 108.19 late as stocks jumped. The low held the post-ADP lows so that’s a level to watch next week.

    Gold is another interesting technical trade. It took out — briefly — the February high of $ 1346 before settling $ 6 below it. I imagine that if the Fed strongly hints at a rate cut in July at next week’s meeting then it’s going to break out.

    Have a great weekend. US CPI and retail sales are highlights next week and with a deadline on the Mexico tariff file on Monday it is sure to be an interesting week.

    forex news wrap ticker

    Let’s block ads! (Why?)

    Forexlive RSS Breaking news feed

    Forex – Pound Falls After Reports of Pressure on May to Resign

    © Reuters.  © Reuters.

    Investing.com – Sterling slumped on Wednesday after reports that U.K. Prime Minister Theresa May could resign as soon as today amid Brexit chaos caused a sell-off of the pound.

    fell 0.5% to 1.2637 as of 10:22 AM ET (14:22 GMT), a low not seen since January. The pound also fell to a four-month low against the euro, with jumping 0.6% to 0.8833.

    May proposed a revised version of the Withdrawal Agreement Bill to Parliament on Wednesday. The bill will be officially published on Friday and includes the option of a second referendum on Brexit. Her cabinet and backbench lawmakers have revolted at the new version, which threatens to leave the U.K. as a “rule-taker” from the EU on labor and environmental issues, as well as crimping its future trade policy.

    As she loses support from her Cabinet for the deal, other reports have surfaced that members of parliament could put pressure on her to resign as soon as today, by changing the party’s internal rules to allow another challenge to her leadership.

    Meanwhile, the , which measures the greenback’s strength against a basket of six major currencies, was unchanged at 97.877 as fears of an escalating trade war between the U.S. and China resurfaced.

    The U.S. is looking to blacklist more Chinese companies, just days after it eased restrictions on Chinese tech giant Huawei. Investors are concerned that banning Chinese companies from buying American products could have negative consequences across the broader technology sector.

    The U.S. is looking at similar restrictions on other companies, including Chinese video surveillance company Hikvision, according to Bloomberg and the New York Times.

    The greenback was down against the safe haven Japaese yen, with falling 0.1% to 110.36. rose 0.1% to 1.1164 and dipped 0.1% to 1.3392.

    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 – Sterling Falls on Reports That Theresa May Could Resign in June

    © Reuters.  © Reuters.

    Investing.com – Sterling was lower on Thursday after reports that U.K. Prime Minister Theresa May will step down over the summer regardless of whether or not her Brexit withdrawal agreement passes.

    Cable was down 0.4%, with at 1.2790 as of 10:16 AM ET (14:16 GMT). Parliament is expected to vote on the Brexit agreement in June and the prime minister has previously said she would step down if the plan is passed.

    Boris Johnson confirmed earlier that he would run to replace May.

    Meanwhile, the dollar gained after jobless claims rose less than expected.

    The , which measures the greenback’s strength against a basket of six major currencies, was up 0.3% to 97.643.

    Data showed that the number of people applying for fell to 212,000 from the week prior, as the U.S. economy continues to be strong.

    The dollar was up against the safe-haven yen, with rising 0.2% to 109.82.

    Elsewhere, the euro slipped, with falling 0.2% to 1.1172 while was at 1.3428.

    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

    Mattel’s Fisher Price recalls all ‘Rock ‘n Play’ models due to reports of death

    © Reuters. FILE PHOTO: The Mattel company logo is seen at the 114th North American International Toy Fair in New York City © Reuters. FILE PHOTO: The Mattel company logo is seen at the 114th North American International Toy Fair in New York City

    (Reuters) – U.S. Consumer Product Safety Commission said on Friday that toymaker Fisher-Price has voluntarily recalled all its “Rock ‘n Play Sleeper” products after reports of more than 30 infant deaths.

    The regulator said consumers should immediately stop using the product and contact Fisher-Price for a refund or voucher.

    “We stand by the safety of our products. However, due to reported incidents in which the product was used contrary to the safety warnings and instructions, we have decided to conduct a voluntary recall of the Rock ‘n Play Sleeper in partnership with the Consumer Product Safety Commission,” Fisher Price-owner Mattel Inc (NASDAQ:) 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.

    Let’s block ads! (Why?)

    Stock Market News

    Reports: Harper to join Phillies on $330 million deal

    © Reuters. MLB: Miami Marlins at Washington Nationals © Reuters. MLB: Miami Marlins at Washington Nationals

    Bryce Harper’s major payday finally arrived Thursday, as the outfielder landed a 13-year, $ 330 million deal with the Philadelphia Phillies, according to multiple reports.

    The contract, when signed, would be the largest guaranteed deal in North American professional sports.

    Harper, 26, is a six-time All-Star who was pursued to the end by the San Francisco Giants and Los Angeles Dodgers. The 2015 MVP with the Washington Nationals, Harper has hit 184 home runs with 521 RBIs over 927 games, with a .279 career batting average.

    Harper reportedly rejected a $ 300 million offer to stay in Washington and instead entered a turbulent free-agent market. But while his deal did not come until teams already had started to play spring-training games, Harper still landed the major contract he was seeking.

    The Harper deal came over a week after Manny Machado signed a 10-year, $ 300 million deal with the San Diego Padres.

    According to The Athletic’s Ken Rosenthal, Harper’s deal will not have an opt-out clause, per the player’s request. It will include a full no-trade clause, which Harper could waive.

    Harper’s annual average deal is $ 25.38 million, or about $ 4.5 million less than Machado’s contract. Harper’s agent, Scott Boras, said contract length was more important than money, according to the New York Post’s Joel Sherman.

    Sherman attributed the following to Boras, via Twitter:

    "The goal was to get the longest contract possible. Bryce wanted 1 city for the rest of his career. That is what I was instructed to do. It is very difficult in this time to get length of contract that takes a player to age 37, 38, 39."

    Boras added that shorter-term deals were offered with an annual average value of $ 45 million, but the commitment of Philadelphia’s owners and a chance to play in their ballpark helped to sway him to the Phillies.

    Harper’s 14 home runs at Citizens Bank Park are his most in any stadium other than Nationals Park. He has a .564 slugging percentage at Philadelphia, and a .930 OPS in 50 games.

    Harper was the No. 1 overall selection in the 2010 draft and made his major league debut less than two years later with the Nationals. He hit 22 home runs and batted .270 in that first season to win the National League Rookie of the Year Award.

    During his MVP season of 2015, Harper led the National League in runs scored (118), home runs (42), on-base percentage (.460), slugging percentage (.649) and OPS (1.109). He led the National League with 130 walks last season, while hitting 34 home runs and collecting a career-best 100 RBIs.

    But while the Nationals advanced to the playoffs in four of Harper’s first six seasons, they did not reach the postseason last year, finishing a disappointing 82-80, while ending the season eight games back in the National League East.

    In going to Philadelphia, Harper joins a club that has not reached the postseason since 2011, although their 80-82 record last season showed the Phillies to be a team on the rise. The club’s .494 winning percentage was their best since they finished .500 in 2012.

    –Field Level Media

    Let’s block ads! (Why?)

    Sports and General News