Dollar nudged off three-week peak as U.S. yields dip before Jackson Hole meet

By Shinichi Saoshiro

TOKYO (Reuters) – The dollar was on the defensive on Wednesday, elbowed off a three-week peak by a reversal in U.S. yields as they headed south again ahead of a meeting of central bankers, at which the Federal Reserve is expected to give clues on further rate cuts.

Central bankers will gather at Jackson Hole, Wyoming, on Friday with markets focused on a scheduled speech by Fed Chair Jerome Powell.

His comments will take center stage especially after last week’s inversion of the U.S. yield curve -widely regarded as a recession signal- boosted expectations for the Fed to lower interest rates at its September policy meeting. Faced with rising risks to the U.S. economy, the central bank in July cut rates for the first time since the financial crisis.

The () against a basket of six major currencies was flat at 98.210 after shedding 0.2% overnight.

The index had climbed to 98.450 on Tuesday, its highest since Aug. 1, as U.S. yields bounced back from multi-year lows at the week’s start on signs global policymakers were ready to step up stimulus support to stave off a steep economic downturn.

U.S. yields, however, declined overnight on the prospect of more easing by the Fed.

Takuya Kanda, general manager at Gaitame.Com Research Institute, believes U.S. President Donald Trump’s “strong desire for deep rate cuts” may raise hopes among some traders of strong easing signals at Jackson Hole. But he also warned that Powell may opt to give little away in his speech as the Fed prepares for the September policy review.

Investors will also be looking for clues on the Fed’s plans in minutes of its July policy meeting due later on Wednesday.

The dollar was little changed at 106.330 yen after shedding 0.4% the previous day, while the euro was steady at $ 1.1094 (), having put on 0.2% overnight.

The single currency dipped briefly after Italy’s Prime Minister Giuseppe Conte announced his resignation on Tuesday.

“Conte’s resignation won’t have a strong impact on the euro in the longer run as it is only a chapter in the ever-shifting Italian politics,” said Kanda at Gaitame.Com Research.

Sterling traded at $ 1.2162 , holding a bulk of the gains made on Tuesday when it advanced 0.4%.

The pound rose after German Chancellor Angela Merkel said the European Union would think about practical solutions regarding the post-Brexit Irish border.

The Australian dollar was largely flat at $ 0.6775 after edging up 0.2% on Tuesday.

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

Vietnam Investors Shrug Off U.S. Trade Threat in Favor of Growth

© Reuters.  Vietnam Investors Shrug Off U.S. Trade Threat in Favor of Growth © Reuters. Vietnam Investors Shrug Off U.S. Trade Threat in Favor of Growth

(Bloomberg) — Foreign investors in Vietnam stocks are shrugging off the threat of additional U.S. tariffs on the country’s exports, even as the Southeast Asian manufacturing hub draws increased scrutiny from President Donald Trump’s government.

Robust economic growth and the government’s planned sale of stakes in state-controlled companies will offset dips in equity prices triggered by trade frictions, according to investors including Federico Parenti at Sempione Sim SpA in Milan.

“I didn’t change my view,” said Parenti, who helps manage about $ 3 billion including Vietnam equities at Sempione Sim in Milan. “When you invest in a country, you do it for the long term.” Vietnam Dairy Products JSC and Saigon Beer Alcohol Beverage Corp. are among the firm’s holdings.

Foreign investors have poured $ 843 million into Vietnam’s $ 191 billion stock market in the 12 months through Aug. 14, even as the benchmark Ho Chi Minh Stock Index fell about 0.9% in the period. The gauge has climbed 9.7% so far this year through yesterday’s close, the most among Southeast Asian markets and outpacing the 0.8% rise in the MSCI AC Asean Index.

The government’s sale of shares in state-enterprises helped raise about 5.16 trillion dong ($ 222 million) in the first half of this year, adding to a record $ 5.09 billion from initial public offerings last year. Corporate tax breaks, along with economic expansion exceeding 6%, “augur well for the capital market,” said Mark Mobius, who runs Mobius Capital Partners LLP.

To be sure, most investors can’t ignore the risk of the U.S. increasing duties on Vietnam goods, said Felix Lam, who manages close to $ 2 billion in Asia Pacific equities at BNP Paribas (PA:) Asset Management. While Lam doesn’t hold Vietnam shares as turnover is too low for his mandate, he said an increase in liquidity could allow him to buy the stocks.

READ: Vietnam Won the U.S.-China Trade War But Is Now in Trouble

“If trade negotiations take longer and are more severe, then Vietnam will be affected alongside other Asian countries,” said Lam. Still, he added, “one would expect that companies would have captured quite a lot of that in their share prices already.”

The Trump administration has been increasing pressure on Vietnam to reduce its growing trade surplus with the U.S., including increasing to 400% in July the duty on steel imports that it alleges originated in Taiwan and South Korea. Exports to America equaled 20% of gross domestic product last year and almost 26% in the first half of 2019.

For Bharat Joshi, who helps oversee $ 650 billion as a fund manager at Aberdeen Standard Investments, Vietnam’s domestic demand outweighs risks arising from trade tensions. The firm counts Vietnam Dairy Products as an “anchor investment” in the country.

“There is structural growth happening on the ground, you have rising middle-class income, demand for credit is starting to expand, and the government is doing all it can to privatize,” said Joshi.

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

U.S. and Britain discuss trade deal that could take effect on Nov. 1

© Reuters. U.S. National Security Advisor John Bolton arrives for a meeting with Britain's Chancellor of the Exchequer Sajid Javid  at Downing Street in London © Reuters. U.S. National Security Advisor John Bolton arrives for a meeting with Britain’s Chancellor of the Exchequer Sajid Javid at Downing Street in London

LONDON (Reuters) – Britain and the United States are discussing a partial trade accord that could take effect on Nov. 1, the day after Britain is due to leave the European Union, a senior Trump administration official said on Tuesday.

The official also said visiting U.S. national security adviser John Bolton and British trade minister Liz Truss had discussed the possibility of the two countries’ leaders signing a road map declaration toward a trade deal at this month’s G7 summit meeting in France.

The official told reporters that Bolton and British finance minister Sajid Javid had discussed the possibility of a temporary trade agreement that covered all sectors and could last for something like six months.

During his two-day London visit, Bolton told British Prime Minister Boris Johnson that President Donald Trump wanted to see a successful British exit from the European Union on Oct. 31 and that Washington would be ready to work fast on a U.S.-UK free trade agreement.

Bolton, who has now left Britain, was seeking an improved U.S.-British relationship with Johnson after sometimes tense ties between Trump and Johnson’s predecessor, Theresa May.

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

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

Let’s block ads! (Why?)

Forex News

Forex – U.S. Dollar Dips as Trump Says No Deal to Huawei 

© Reuters.  © Reuters.

Investing.com – The U.S. dollar fell slightly on Friday after U.S. President Donald Trump said America will cut all ties with Chinese tech company Huawei in a signal that the tit-for-tat trade war is unlikely to end anytime soon.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.1% to 97.417 by 10:48 AM ET (14:48 GMT).

The news came after Beijing halted its purchases of U.S. farming goods on Monday. Trade tensions escalated this week after the U.S. officially declared China a currency manipulator and China allowed the yuan to weaken to below 7 to the dollar.

In additions, Huawei was blacklisted in May for national security concerns, which prevented American companies from doing business with the tech giant.

The Japanese yen, which is seen as a safe-haven in times of market turmoil, rose with down 0.4% to 105.59.

The euro inched up slightly, held back by political uncertainty in Italy after Deputy Prime Minister Matteo Salvini called for a vote of no confidence in the governing coalition, which could lead to snap elections. rose 0.2% to 1.1198.

Meanwhile fell 0.5% to 1.2073 after second-quarter GDP fell 0.2%, increasing recession fears on the back of Brexit uncertainty.

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

U.S. overtakes Germany as UK’s biggest source of imports: UK trade department

LONDON (Reuters) – The United States overtook Germany as the biggest supplier of imports into Britain for the first time on record in the last financial year, the UK government said on Friday.

British trade minister Liz Truss has said the United States tops her priority list for post-Brexit trade deals and has been in Washington this week, along with Foreign Secretary Dominic Raab, to promote UK-US ties.

Imports from the United States increased by 14% to 78.27 billion pounds ($ 94.43 billion) in the year to April, the Department for Trade said, while imports from Germany fell by 0.1% to 78.26 billion pounds.

While Germany has long been Britain’s biggest source of imports, the United States was already Britain’s largest export market, with exports reaching a record high of 121.6 billion pounds in the last financial year.

“Now that the U.S. is our largest market for both exports and imports, there has never been a better time for us to make the most of this golden opportunity and deliver a free trade agreement with the US,” Truss said in a statement.

The trade department said financial services imports from the United States had grown by 15% since 2018, with transatlantic trade in services worth more than 55 billion pounds annually to both countries.

During her four-day visit to Washington and New York, Truss met U.S. Trade Representative Robert Lighthizer and U.S. Secretary of Commerce Wilbur Ross, as well as senior officials and figures from Congress and businesses.

The trade department also said Britain’s Royal Air Force Red Arrows aerobatic team, famed for their aerial displays at military and royal occasions, had this week begun a three-month tour of North America to promote British trade and defense in more than 25 cities across the US and Canada.

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

U.S. Stock Futures Climb After Yuan Fix Stronger Than Expected

(Bloomberg) — U.S. stock index futures rose in Asia after China’s central bank set its daily fixing stronger than expected, tempering concerns that the nations’ trade war will worsen.

S&P 500 Index futures contracts expiring in September rose 0.2% as of 11:30 a.m. in Tokyo, rebounding from an earlier 0.4% loss after the People’s Bank of China set its daily reference rate at 7.0039 per dollar. Analysts and traders had projected a rate of 7.0156, according to the average of 21 forecasts compiled by Bloomberg in a survey. Futures on the and rebounded as much as 0.3% and 0.2%, respectively.

“If the Chinese government intervenes less and lets the currency find its own level, it’s actually better from a reputational point of view,” Nader NaeImi, AMP Capital’s head of dynamic markets in Sydney, said on Bloomberg Television.

The bounce in Asia came after U.S. equities and benchmark Treasury yields mounted an impressive comeback late Wednesday, reversing sharp drops as investors turned more positive on the outlook for global growth amid central-bank moves to ease monetary policy. The S&P 500 Index eked out a modest gain after tumbling as much as 2%, while yields on 10-year Treasuries edged higher after an earlier plunge.

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

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

Let’s block ads! (Why?)

Forex News

Forex – U.S. Dollar Falls After Jobs Report Fails to Diminish Fed Cut Expectations

© Reuters.  © Reuters.

Investing.com – The U.S. dollar fell after the jobs report failed to diminish expectations of the Federal Reserve cutting rates next month.

The U.S. economy just 164,000 jobs in July, compared to 193,000 in June, while job creation was as expected and the unemployment rate held steady near 50-year lows.

Trade tensions continued to weigh on investors, with demand for more traditional safe-haven assets rising after U.S. President Donald Trump threatened another 10% of tariffs on $ 300 billion worth of Chinese goods, which would put tariffs on all U.S. imports from China. Beijing warned on Friday it would retaliate.

The announcement was made just one day after the U.S. and China wrapped up trade discussions in Shanghai, and ended a trade truce the two countries struck in June.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 97.975 by 10:37 AM ET (14:37 GMT).

The safe-haven Japanese yen was higher, with falling 0.7% to 106.59.

The euro rose due to the weakness in the greenback. The currency was also boosted by reports that Trump is expected to make a trade announcement regarding the European Union at 1:45 PM ET (17:45 GMT). No details were given about what the agreement would entail.

gained 0.2% to 1.1101.

Sterling dipped down slightly, with down 0.1% to 1.2114. Elsewhere, rose 0.3% to 1.3241, while jumped 0.5% to 19.3248.

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

Group of 12 U.S. states challenge Trump fuel economy penalty freeze

© Reuters. Traffic backs up on the Brooklyn Queens Expressway in New York © Reuters. Traffic backs up on the Brooklyn Queens Expressway in New York

By David Shepardson

WASHINGTON (Reuters) – A group of 12 states led by California and New York on Friday challenged the Trump administration’s decision to suspend a 2016 Obama administration regulation that more than doubled penalties for automakers that fail to meet fuel efficiency requirements.

Automakers protested the higher penalties, which they said could cost the industry up to $ 1 billion annually, and the Trump administration finalized the regulatory freeze on July 12. The 12 states, joined by the District of Columbia, filed a petition in the U.S. Court of Appeals for the Second Circuit to reverse the rule released by the National Highway Traffic Safety Administration (NHTSA).

Congress in 2015 ordered federal agencies to adjust a wide range of civil penalties to account for inflation and, in response, the NHTSA, under Democratic President Barack Obama, issued rules to eventually raise fines to $ 14 from $ 5.50 for every 0.1 mile per gallon of fuel that new cars and trucks consume in excess of the required standards.

The NHTSA, in response to a question on the lawsuit, on Friday reiterated its statement from last month that it was following the intent of Congress to ensure the penalty rate was set at the level required by law.

In a statement, the California attorney general, Xavier Becerra, said the Trump administration wants to “make these penalties meaningless,” while New York’s attorney general, Letitia James, called the rule “another misguided and reckless attempt by the Trump Administration to roll back the clock on our clean air standards.”

The move comes as the NHTSA and the Environmental Protection Agency are working to finalize a rewrite of the Obama administration’s fuel efficiency requirements through 2026.

The Obama-era rules called for a fleetwide fuel-efficiency average of 46.7 miles per gallon by 2026, compared with 37 mpg under the Trump administration’s preferred option.

The Alliance of Automobile Manufacturers, a trade group representing General Motors Co (NYSE:) , Volkswagen AG (DE:), Toyota Motor Corp (T:) and others, had said the higher penalties could increase industry compliance costs by $ 1 billion annually and result in “significant economic harm.”

Some automakers historically have paid fines instead of meeting fuel efficiency requirements. In February, Fiat Chrysler Automobiles (MI:) told Reuters it had paid $ 77 million in U.S. civil penalties in 2018 for failing to meet 2016 economy requirements.

Environmental groups urged the administration to retain the increase, noting U.S. fuel economy fines have lost nearly 75% of their original value.

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

U.S. withdraws from Reagan-era nuclear arms pact with Russia

US United States Russia
Dec. 8, 1987 file photo shows President Reagan and Soviet leader Mikhail Gorbachev exchanging pens during the Intermediate Range Nuclear Forces Treaty signing ceremony in the White House East Room; Gorbachev’s translator, Pavel Palazhchenko, stands in the middle Bob Daugherty / AP

The U.S. has formally withdrawn from the Intermediate-Range Nuclear Forces (INF) Treaty, a missile reduction agreement signed by Presidents Ronald Reagan and Mikhail Gorbachev in 1987. Secretary of State Mike Pompeo made the announcement Friday after announcing in February that U.S. participation in the pact was being suspended.

The U.S. has been unhappy with what it asserts has been Russia’s lack of compliance with the treaty for years, dating back to the Obama administration.

Senior Trump administration officials put the blame for the U.S. pulling out of the pact squarely on Russia. 

Trending News

In a statement, Pompeo said, “Russia is solely responsible for the treaty’s demise. … The United States will not remain party to a treaty that is deliberately violated by Russia.”

Pompeo, who is in Thailand for an Asian security conference, added, “The United States remains committed to effective arms control that advances U.S., allied, and partner security; is verifiable and enforceable; and includes partners that comply responsibly with their obligations.”

He took to Twitter, as well:

Although the U.S. has long considered Moscow a “serial violator” of the accord, the Trump administration officials pointed to a new finding that the Kremlin has been producing and fielding multiple battalions of the Novator 9M729 ground-launched cruise missile, placing some in western Russia, in striking distance of European targets. Its estimated range is 1,600 miles.

The officials say they believe “all of western Europe is within range of this missile system.” The officials say that poses a critical threat to the security of the U.S. and its allies, making the U.S. withdrawal from the treaty “unavoidable.”

The treaty has been a key component of European security.  

The INF Treaty required the destruction of of a particular class of weapons, banning medium-range, ground-based missiles capable of carrying nuclear arms — with a range of 310 to 3,400 miles. After it was signed, the U.S. and Russia dismantled more than 2,600 missiles.

The Council on Foreign Relations says missiles in this class are particularly dangerous because they’re capable of reaching their targets in 10 minutes, allowing for very little response time and creating the potential for deadly mistakes.

Reporting by Sara Cook. Kathryn Watson contributed to this report.

Let’s block ads! (Why?)

World – CBSNews.com

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

© Reuters.  © Reuters.

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

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

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

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

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

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

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

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

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

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

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

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

Let’s block ads! (Why?)

Forex News