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Showing posts with the label Currencies

News | Currencies | The U.S. Dollar: Riskier Currencies Recover from Friday's carnage. Risk currencies recover from Friday carnage as bonds regain composure Reuters 3-4 minutes The Australian dollar in various denominations. The Australian dollar and other riskier currencies rebounded against the U.S. dollar on Monday, as a sell-off last week in global bonds on worries about eventual monetary policy tightening appeared to have eased for now. The British pound drew additional support from bets of a faster vaccine-led economic recovery, while resurgent risk appetite pushed the safe-haven Japanese yen to a six-month low versus the dollar. "The market is overpricing (the chance of a near-term rate hike)," said Tohru Sasaki, JPMorgan's head of Japan market research in Tokyo. "Eventually it's true that if the economy continues to be strong and if inflationary pressure is getting higher, the central bank should be normalising the policy rate. But we think it&#

Currencies | The Dollar: The dollar remains vulnerable to 'significant depreciation,' warns Standard Chartered

  Eustance Huang 2-3 minutes - Source: CNBC SINGAPORE — One Standard Chartered Bank analyst warns that the greenback is vulnerable to a “significant depreciation” as sovereign fundamentals appear to be “pointing south.” “You have the twin deficits in the U.S. getting worse, you have the trade balance at the worst in 15 years,” Eric Robertsen, global head of research at Standard Chartered Bank, told CNBC’s “Squawk Box Asia” on Wednesday. Election Day is less than two weeks away and Robertsen said the outcome would determine “the path to the end result.” The analyst said a victory for former Vice President Joe Biden would mean any dollar depreciation is set to be “very clear and very pronounced.” If President Donald Trump is reelected, Robertsen said it will be “a little bit more messy in the short term.” As of Thursday morning Singapore time, the dollar index which tracks the greenback against a basket of its peers sat at 92.743 —

Currencies | The British Pound: British pound jumps as EU's top Brexit negotiator says a trade deal is within reach

  Silvia Amaro 3-4 minutes - Source: CNBC BRUSSELS, BELGIUM - FEBRUARY 3: European Union Chief Brexit negotiator Michel Barnier makes a speech during a press conference in Brussels, Belgium on February 3, 2020. Anadolu Agency Sterling jumped more than 0.8% against the U.S. dollar on Wednesday after the EU signaled that a trade deal with the U.K. is still possible. “Despite the difficulties we’ve faced, an agreement is within reach if both sides are willing to work constructively, if both sides are willing to compromise and if we are able to make progress in the next few days on the basis of legal texts and if we are ready over the next few days to resolve the sticking points, the trickiest subjects,” the EU’s chief negotiator Michel Barnier told the European Parliament. His comment provided traders with some optimism that a trade deal between the U.K. and the EU will be reached even though their negotiations have been stuck ove

Currencies | The Yuan: China's yuan will rally despite the central bank's moves to curb its strength, analysts say

  Eustance Huang 2-3 minutes - Source: CNBC SINGAPORE — The Chinese yuan will continue to strengthen against the U.S. dollar, even though China’s central bank has taken steps to curb its currency appreciation, analysts told CNBC. The onshore Chinese currency appreciated by nearly 3.9% since the start of 2020 before the People’s Bank of China changed rules over the weekend, making it cheaper for traders to bet against the yuan . The yuan’s year-to-date gains against the greenback were pared after the announcement — to about 3.4%, as of Thursday morning Singapore time. In general, though, Marc Chandler, chief market strategist at Bannockburn Global Forex, said the PBOC’s move is “a small technical adjustment.” “I think it’s just a mild protest, a mild pushback against the sharp appreciation” of the yuan, he told CNBC’s “Squawk Box Asia” on Tuesday. “I’m not sure that this is a big change of direction and I’d still be looking for

Currencies | The Dollar: Dollar higher as markets wait on stimulus news

  3 minutes A hand holding U.S. dollar banknotes in China on January 25, 2018. Zhang Peng | LightRocket | Getty Images The U.S. dollar edged higher against a basket of currencies on Thursday, but held in its recent range as investors waited for fresh news on whether new U.S. fiscal stimulus is likely in the near term. The greenback has been whipsawed by swings in risk sentiment after U.S. President Donald Trump on Tuesday halted negotiations with Democrats on a new economic package but later pushed for the approval of more targeted stimulus bills to offset economic damage from the coronavirus. There was little new information on Thursday to move the dollar strongly in either direction. “We’re just really consolidating, I think the market right now lacks near-term conviction, partly because of uncertainty about U.S. fiscal policy, and sensitivity to these U.S. presidential tweets,” said Marc Chandler, chief market strategist at Bannockburn Global Forex

Currencies | The Dollar: Dollar slides as risk sentiment rises on U.S. stimulus hopes

  4 minutes U.S. dollar banknotes. Liu Jie | Xinhua via Getty The dollar fell against most currencies in choppy trading, as risk sentiment improved after U.S. government officials expressed hope that another stimulus package could be passed to help ease the economic impact of the coronavirus-induced recession. The greenback slid against the yen and weakened versus currencies associated with higher risk appetite such as the Australian, New Zealand, and Canadian dollars. U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin both expressed hope for a breakthrough on additional COVID-19 relief on Wednesday, as they prepared to resume talks aimed at hammering out a bipartisan deal. “Renewed hopes for stimulus have whetted appetite for risk at the dollar’s expense,” said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington. “It’s encouraging to hear the rhetoric, but until it is signed,

Currencies | The Dollar: Dollar gains keep gold pressured near 6-week low

  2-3 minutes - Source: CNBC A stack of U.S. $100 bills being counted. Bay Ismoyo | AFP | Getty Images Gold extended losses to its lowest since mid-August on Wednesday as the dollar advanced, with investors awaiting further response from major central banks as economic uncertainty looms. Spot gold dipped 1.5% to $1,870.11 per ounce, having hit its lowest since Aug. 12 at $1,865.03. U.S. gold futures declined 1.8% to $1,873.20 per ounce. “Gold is currently taking its cue from the dollar ... and the dollar strength continues to weigh on gold,” said Standard Chartered analyst Suki Cooper. “We could see a retest of the lows from early August, the next technical support level thereafter is around $1,840 per ounce, however prices are closing in on oversold territory.” The dollar index hit an eight-week high, dimming the appeal of bullion to holders of other currencies. Gold prices declined, despite U.S. stocks retreating after data showed U.S. business act

Currencies | The Dollar: Dollar jumps as stocks tumble; rising COVID-19 cases dent risk appetite

  3-4 minutes - Source: CNBC U.S. dollar banknotes. Liu Jie | Xinhua via Getty The U.S. dollar index soared on Monday and riskier currencies fell as investors looked for safety while stock markets around the world tumbled on fears of the economic implications of rising COVID-19 cases. The euro and the Australian dollar fell against the greenback, and equities on Wall Street followed Asian and European stock markets lower, as the threat of new pandemic-related lockdowns prompted concerns about the global recovery. U.S. investors fretted about the ability of U.S. Congress to reach an agreement for more fiscal stimulus. “What we’re seeing here this morning for the dollar is largely a risk-off safe haven bid,” said Erik Bregar, head of FX strategy at Exchange Bank of Canada in Toronto, adding that the trigger was in the European morning on rising fears of a new U.K. nationwide lockdown. “It’s scary stuff that reminds you of March,” he said. The dollar -

EU - FX: Dollar stalls after Trump speech reveals little on trade

3minutos - Source: CNBC U.S. one-hundred dollar banknotes and Chinese one-hundred yuan banknotes are arranged for a photograph in Hong Kong on April 15, 2019. Paul Yeung | Bloomberg | Getty Images The dollar was little changed after U.S. President Donald Trump in a speech on Tuesday offered no new details on the state of the administration’s trade war with China. The dollar index held onto modest gains made earlier on Tuesday, but was last trading at 98.310 against a basket of six currencies, up 0.11% on the day, and a hair above 98.304, its level at noon when Trump’s remarks began. Speaking at The Economic Club of New York, Trump instead took aim once again at the Federal Reserve, bemoaning the fact that the United States has higher interest rates than other developed economies. “Give me some of that. Give me some of that money. I want some of that money. Our Federal Reserve doesn’t let us do it.” The speech was highly anticipated

EU - FX | Currencies: Dollar slips against euro before Fed decision; sterling dips

2-3 minutos - Source: CNBC A hand holding U.S. dollar banknotes in China on January 25, 2018. Zhang Peng | LightRocket | Getty Images The dollar dipped against the euro on Tuesday, a day before the Federal Reserve was expected to cut U.S. interest rates, while sterling dipped as Britain looked likely to go to election in December. Investors will watch the conclusion of the U.S. central bank’s two-day meeting, and the dollar may gain if the Fed indicates reluctance to cut rates more. Were looking for a hawkish reaction, which would lean toward a stronger dollar, said Mark McComick, North American head of FX strategy at TD Securities in Toronto. Given that markets are looking for the Fed to prop up the economy over the coming months, I think them signaling a little bit of a pause would kind of reinforce some consolidation in the dollar, especially against euro and sterling which have been driven by the Brexit euphoria, he said. Increas

EU - FX | Currencies: Dollar tumbles after weak US services data

3-4 minutes - Source: CNBC Customer paying cash at the checkout counter. Glow Images | Getty Images The dollar fell to a four-week low against the yen and a one-week trough versus the euro on Thursday, as investors fretted that weakness in both U.S. manufacturing and service sectors could lead to a slowdown in the world’s largest economy. “It appears that the U.S. is now catching down with rest of the G10,” said Ranko Berich, head of market analysis at Monex Europe in London. “So although it’s not a surprise that major G10 economies are seeing a manufacturing shock and it is spreading to the rest of their economies, it is new information that we are now seeing this dynamic emerge in the United States,” he added. Expectations that the U.S. economy would continue to outperform other major economies and put pressure on the Federal Reserve to slow its interest rate cutting cycle were dampened this week after weak manufacturing and servic

EU - FX | Currencies: Dollar hits highest level in two years

3 minutes - Source: CNBC U.S. dollar and Chinese yuan bank notes are arranged for a photograph on September 7, 2017, in Hong Kong StudioEAST | Getty Images The dollar index hit it highest level in two years on Thursday, after sizeable gains from the previous session. The dollar index , which measures the greenback against a basket of other currencies, rose to 99.11, its highest level of 2019 and in two years. On Wednesday the index jumped 0.7%, its largest one-day rise in about three months. “While there’s no single reason to explain the dollar’s strength, multiple factors are in play,” said Hussein Sayed, analyst at broker FXTM. “The UK is facing a political crisis with Brexit, the euro zone is near a recession, bond yields across the developed economies remain very depressed, and investors want a safe place to park their money,” he said. “Despite the impeachment drama, the U.S. dollar continues to cement its place as the major safe

EU - FX | Currencies: Dollar gains as Fed cuts rates, but easing outlook uncertain

3 minutes - Source: CNBC U.S. dollar bank notes are arranged for a photograph on September 7, 2017 in Hong Kong. studioEAST | Getty Images The dollar firmed on Wednesday after the Federal Reserve cut interest rates by a quarter of a percentage point, as expected, but gave an uncertain outlook on future easing. The dollar index , tracking the unit against a basket of other currencies, was up 0.35% at 98.60. The dollar touched session peaks against the yen after the Fed decision, rising in seven of the last eight sessions. In cutting interest rates by 25 basis points for the second time this year, the Fed gave a nod to ongoing global risks and “weakened” business investment and exports. But new projections showed policymakers at the median expected rates to stay within the new range through 2020. However, in a sign of ongoing divisions within the Fed, seven of 17 policymakers projected one more quarter-point rate cut in 2019. “Anothe

EU - FX | Currencies: Euro remains subdued before key ECB meeting this week

3-4 minutes - Source: CNBC The euro fell to a five-day low against the dollar Monday as investors remained convinced the European Central Bank would introduce a new wave of monetary policy stimulus at its meeting on Thursday. Leveraged funds have increased their net short positions on the euro, expecting the ECB to cut interest rates, announce it will buy government bonds or other European assets, or both. Other global central banks are already loosening monetary policy, including the People’s Bank of China, which on Friday cut the amount of cash that banks must hold as reserves. “ECB watchers are confident there could be a 20 bps cut and so the potential surprise (for the euro) on the rate cut isn’t that big,” said Esther Maria Reichelt, a Commerzbank analyst. “It’s far more difficult to assess what kind of unconventional measures” the ECB could use to stimulate the euro zone economy, which “could have a far bigger imp

EU - FX | Currencies: Euro slides to lowest since 2017 on investors eye ECB cuts, dollar strength

3-4 minutes - Source: CNBC Frank van den Bergh | E+ | Getty Images The euro plunged to a 28-month low against the dollar on Tuesday as investors priced in deeper negative interest rates for longer in the euro zone. The common currency’s drop also came on the back of a strengthening dollar as the trade spat between Washington and Beijing intensified and traders turned to buying U.S. assets as safe-haven investments without hedging their dollar currency exposure, analysts said. Money markets have increased to more than 80% the probability that the European Central Bank will cut its benchmark rate by 20 basis points when it meets next week. The ECB benchmark rate now stands at minus 0.40% and it has all but promised a monetary policy stimulus package as economic growth falters. Monday’s PMI survey showed European manufacturing contracted for seven straight months. The euro was last down by 0.3% at $1.0936. It fell to $1.0926 earlier,

EU - FX I Currencies: Dollar stable with eased trade tensions

3 minutes - Source: CNBC The U.S. dollar was modestly higher on Thursday as news Washington and Beijing were discussing negotiations in September eased anxieties about the ongoing trade war. The world's two largest economies are in talks about the next round of face-to-face meetings, but hopes for progress hinge on whether Washington can create favorable conditions, China's commerce minister said on Thursday. He also expressed hope the United States would cancel the additional tariffs set to go into effect on Sept. 1. Thursday saw a slight bid for riskier assets, sending safe-havens such as the Japanese yen and Swiss franc lower and Treasury bond yields higher. The dollar index , which measures the currency against a basket of six rivals, has held up despite a dramatic escalation in tariffs last week, and was last up 0.20% to 98.406. U.S. President Donald Trump on Friday said he would heap an additional duty of 5% on about $550 billio

EU - FX | Currencies: Dollar ticks up, but yen holds gains as recession fears grow

3 minutes - Source: CNBC Japanese yen John Phillips | Digital Editor for The U.S. dollar was modestly higher against the yen on Wednesday morning, but the move indicated little change in investor sentiment as the Japanese currency largely clung to its recent gains on growing fears of a global economic downturn. The yen stood at 105.83 per dollar, 0.10% weaker on the day, but nevertheless close to the 2-1/2-year high of 104.44 hit on Monday as renewed trade tension sent investors into safe-haven assets like the Japanese currency and government bonds. Two-year U.S. government bond yields rose further above 10-year yields, a deepening of the yield-curve inversion, a widely recognized signal of coming recession. Investors are worried that the trade conflict between the United States and China could tip the world into an economic slowdown. “Much, if not all, of the decline in dollar/yen is simply down to markets becoming more r

EU FX | Currencies: Yen rises as investors flock to safe-haven assets

3-4 minutes - Source: CNBC People are reflected on a window of a currency exchange in Buenos Aires’ financial district, Argentina, September 3, 2018. Marcos Brindicci | Reuters The Japanese yen rose and 10-year Treasury yields fell on Tuesday as investors fled to safer assets amid worries the U.S.-China trade conflict would get worse, days after both sides announced new tariffs. On Friday, China said it would increase tariffs on $75 billion worth of American goods. The United States retaliated by saying it would raise existing tariffs on $250 billion worth of Chinese goods to 30% from 25% on Oct. 1. U.S. President Donald Trump also said he would tax another $300 billion worth of Chinese imports 15%, rather than the 10% he had planned. Those levies go into effect on Sept. 1. On Monday, speaking on the sidelines of the G-7 summit of world leaders in France, Trump said Chinese officials had contacted U.S. trade counterpart

EU - FX | Currencies: Dollar firms as US, China throttle back trade tensions

3 minutes - Source: CNBC A clerk of ICBC bank counts Chinese 100 yuan at its branch in Beijing. Kim Kyung-Hoon | Reuters The U.S. dollar strengthened on Monday morning, recovering from overnight losses after the United States and China sought to ease trade war tensions. President Donald Trump, on the sidelines of the G7 summit of world leaders in France, said Chinese officials had contacted U.S. trade counterparts overnight and offered to return to the negotiating table. Vice Premier Liu He, who has been leading the talks with Washington, said China was willing to resolve the trade dispute through “calm” negotiations. In overnight trade prior to these remarks, China’s yuan had fallen to an 11-year low in the onshore market and a record low offshore and the U.S. dollar fell to a 2-1/2 year low against the Japanese yen. The currency market had been reacting to Trump’s announcement on Friday of an additional 5% duty on $550 billion in

EU FX I Currencies: Dollar gains vs yen, Swiss franc as risk sentiment improves

3-4 minutes U.S. dollar, British pound and euro notes. Matt Cardy | Getty Images The dollar rose against the safe-haven yen and Swiss Franc on Wednesday, as risk appetite further improved with global stocks and U.S. yields higher ahead of an annual Federal Reserve gathering later this week in Jackson Hole, Wyoming and a summit of major central banks this weekend. Market participants are waiting for any statement from the Fed and other global monetary authorities meeting at a Group of Seven summit this weekend on possible measures to lift slumping economies around the world. Fed Chairman Jerome Powell’s highly-anticipated speech in Jackson Hole on Friday comes after last week’s inversion of the U.S. yield curve - widely regarded as a recession signal. The curve inversion has boosted expectations of another interest rate cut at its September policy meeting. The interest rate futures market has priced in 100 basis points of easing over