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Showing posts with the label Currencies.

News | Businesss | Currencies: The Chinese yuan is 'a long way' from achieving reserve currency status, says strategist

  Eustance Huang 2-3 minutes - Source: CNBC US dollar and Chinese yuan arranged for a photograph on September 7, 2017. studioEAST | Getty Images SINGAPORE — The Chinese yuan has “a long way” to go before it comes anywhere close to challenging the U.S. dollar ’s status as a reserve currency. That’s according to David Roche, president and global strategist at Independent Strategy. “Dethroning the dollar — which the euro tried to do, and settled at a miserable 18-20% of all the international things that go on — is very, very difficult,” Roche told CNBC’s “Squawk Box Asia” on Monday. A number of “almost abstract” conditions, including not having too much leverage in the system as well as the rule of law, need to be met before a currency can achieve reserve status, the strategist said. He added that the Chinese yuan is “a long way from achieving that.” “There is a certain amount of illusion at the moment that the (yuan) — which accoun

Currencies: West Africa’s new currency could now be delayed by five years

  Elliot Smith 4 minutes - Source: CNBC Lomé, Togo: The Central Bank of West African States tower, located on Avenue Abdoulaye Fadiga, serves the eight west African countries which comprise the West African Economic and Monetary Union. Curado | Getty Images The arrival of West Africa’s new flagship common currency , the eco, could now be up to five years away after being derailed by the coronavirus pandemic, Ivorian President Alassane Ouattara announced. Leaders of the eight countries of the West African Economic and Monetary Union (WAEMU) and the broader 15-member Economic Community of West African States (ECOWAS) had hoped that the replacement for the French colonial CFA franc would be in place by the end of this year. The agreed criteria among WAEMU members for the currency’s launch was for national budget deficits to be contained at or below 3% of GDP (gross domestic product). However, Ouattara told journalists in the city

Currencies | The Dollar: Dollar gains ground on economic concerns

  3-4 minutes - Source: CNBC wakila | E+ | Getty Images The U.S. dollar traded at a two-month high and was set for a fifth day of gains on Thursday as investors sought safety on concerns over economic recovery as coronavirus cases surged in Europe and on U.S. data showed rising unemployment claims. Federal Reserve policymakers have called on the U.S. government to provide more fiscal support, fuelling a bout of selling in risky assets overnight, while European economic data has worsened in recent days prompting investors to lighten their positions after a rally in August. Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 870,000 for the week ended Sept. 19, compared to 866,000 in the prior week and economist expectations for 840,000 applications. “The U.S. dollar weakness theme got over-extended and there are people covering their shorts and wondering if the weaker dollar trend has had enough. Economic data cou

British pound could rally to $1.65 in 2020, strategist predicts

Chloe Taylor 3minutes - Source: CNBC Matt Cardy | Getty Images The British pound could soar to $1.65 in 2020 and the currency will be one of the biggest trades in the world, a currency strategist told CNBC Thursday. Speaking to CNBC’s “Squawk Box Europe,” Michael Harris, founder of Cribstone Strategic Macro, predicted the currency could see a surge as investors revaluated the U.K.’s long-term potential. “What we’re going to get is a country where everyone has been on hold — this is massive pent-up demand — and as soon as it becomes clear that there’s an investable case here based upon some clarity of the direction of this country, the pound has to rerate,” he said. “It’ll be one of the biggest trades in the world.” The pound rallied to $1.35 — a jump of more than 2% — following pro-Brexit Boris Johnson’s election victory last month. However, the currency plunged to $1.31 just days later as Johnson’s government set a dea

EU - FX Report: Euro sees sigh of relief as dollar weakens on US-China trade deal hopes

3-4 minutos - Source: CNBC Hong Kong one-hundred dollar banknotes and U.S. one-hundred dollar banknotes are arranged for a photograph in Hong Kong on April 15, 2019. Paul Yeung | Bloomberg | Getty Images The euro enjoyed a small respite on Monday, jumping to an 11-day high versus the U.S. dollar, on expectations that Washington and Beijing can soon sign off on a deal to end a trade war that has been a drag on global economic growth. Faint optimism for a breakthrough was supported by a report on Sunday from Chinese state news wire Xinhua, which said the two sides had “constructive talks” over the weekend. The export-oriented European economy has suffered from the 16 month long trade dispute between the world’s two largest economies. The tariff war has taken a toll on the world’s manufacturing. Investors injected $3 billion of inflows into European equities over the past two weeks, ending a record run of 85 weeks of persis

EU - FX on Friday 8, November 2019: Euro hits lowest in three weeks as dollar gains from trade optimism

3-4 minutos - Source: CNBC U.S. dollar bank notes are arranged for a photograph on September 7, 2017 in Hong Kong. studioEAST | Getty Images The euro edged down to hit a new three-week low against the dollar on Friday as the U.S. currency shone on news that China and the United States had agreed to cancel some tariffs as part of a potential preliminary pact to end their trade war. The two countries have agreed to roll back tariffs on each others’ goods in a “phase one” trade deal if it is completed, officials from both sides said on Thursday. Sentiment is likely to remain supportive for the dollar, equities and other risky assets as a de-escalation in the U.S.-China trade war removes a huge risk to the global economic outlook. However, there is still some scepticism about a trade deal as officials inside and outside the White House have bristled at the notion of giving up punitive tariffs. Muddying the waters further, White House spokeswoman Stephan

EU - FX: Dollar rises against yen, Swiss franc on nearing US-China trade deal

3-4 minutos - Source: CNBC A hand holding U.S. dollar banknotes in China on January 25, 2018. Zhang Peng | LightRocket | Getty Images The dollar climbed to more than a five-month peak against the safe-haven yen and a three-week high versus the Swiss franc on Thursday, bolstered by expectations the United States and China were inching closer to a trade deal. The world’s two largest economies have agreed to roll back tariffs on each others’ goods as part of the first phase of a trade deal, officials from both countries said on Thursday, offering a new sign of progress despite the two sides’ ongoing divisions over trade. The Chinese commerce ministry, without laying out a timetable, said the two countries had agreed to cancel the tariffs in phases. That pushed investors’ risk appetite higher, lifting not only the greenback against the safe-haven yen and Swiss franc, but also commodity-linked currencies such as the Australian and Canadi

EU - FX: Dollar rises vs yen, Swiss franc as risk appetite improves

3minutos - Source: CNBC The new £10 note is seen alongside euro notes and US dollar bills on October 13, 2017 in Bath, England. Matt Cardy | Getty Images The dollar on Monday was broadly higher against safe-haven currencies such as the yen and Swiss franc, bolstered by higher risk appetite due to U.S.-China trade hopes and Friday’s generally upbeat U.S. non-farm payrolls report for October. “Market trends are being influenced by a better risk mood overall,” said Shaun Osborne, chief FX strategist at Scotiabank in Toronto. He said trade hopes rose on U.S. Commerce Secretary’s Wilbur Ross’ optimism that a preliminary deal would be signed this month. Licenses for U.S. companies to sell components to China’s Huawei Technologies Co “will be forthcoming very shortly,” Ross said in an interview with Bloomberg published on Sunday. He noted the U.S. government had received 206 requests for licenses. The euro slipped as investors awaited Chris

EU - FX (11/1/19): Dollar drops on mixed data, trade optimism

3minutos - Source: CNBC Background of U.S. dollar bills. Alena Vikhareva | iStock | Getty Images The dollar dropped on Friday after data showed a mixed view on the economy, and as optimism that the United States and China will reach a deal to end their trade war reduced safe-haven demand for the greenback. The dollar initially gained after U.S. jobs growth slowed less than expected in October, while wages gained and hiring in the prior two months was stronger than previously estimated. “The data is much better than expected. Markets were braced, certainly in headline terms, for some much weaker numbers given the expected impact from the GM strike and the census hiring. So very good data in that context,” said Shaun Osborne, chief foreign exchange strategist at Scotiabank in Toronto. Striking workers who do not receive a paycheck during the payrolls survey period are treated as unemployed. The strike by about 46,000 workers at GM pla

EU - FX on October 31, 2019: Euro rises as dollar weakens on questions about more Fed rate cuts

3-4 minutos - Source: CNBC U.S. dollar bank notes are arranged for a photograph on September 7, 2017 in Hong Kong. studioEAST | Getty Images The euro gained on Thursday as the dollar weakened after the Federal Reserve on Wednesday cut interest rates for the third time this year and left open the question of whether it would cut them further. The dollar was falling against most currencies, particularly the Chinese offshore yuan, which rose to an 11-week high. The Fed lowered its benchmark rate by 25 basis points to a target range of 1.50% to 1.75%. But it dropped a reference in its policy statement that it would “act as appropriate” to sustain economic expansion — language considered a sign of future cuts. Still, lack of an explicit signal the Fed was done with easing for now was taken as less hawkish than expected, helping to drive the dollar down. “The new, slightly shorter, statement tries to keep their options

EU - FX | Currencies: Dollar dips on trade optimism, before Fed meeting

3minutos - Source: CNBC A Chinese bank employee counts 100-yuan notes and U.S. dollar bills at a bank counter in Nantong in China’s eastern Jiangsu province on August 6, 2019. STR | AFP | Getty Images The U.S. dollar slipped on Monday as optimism that the U.S. and China will reach a trade deal reduced demand for safe haven currencies, and as investors waited on the Federal Reserves meeting this week. U.S. President Donald Trump said on Monday he expected to sign a significant part of the trade deal with China ahead of schedule but did not elaborate on the timing. The comments come after the U.S. Trade Representative’s office and China’s Commerce Ministry said on Friday that U.S. and Chinese officials are “close to finalizing” some parts of a trade agreement, with talks to continue. The trade war between the U.S. and China has been blamed for adding to global economic weakness, which in turn has prompted central banks globally to cut

EU - FX | Currencies: Pound whipsaws after Johnson calls for UK election

2-3 minutos - Source: CNBC wakila | E+ | Getty Images The British pound boomeranged on Thursday following Prime Minister Boris Johnson’s call for a national election, plunging then recouping some losses to land half a percent lower on the day against the dollar. Johnson said on Thursday he was asking parliament to approve a national election on Dec. 12 in an effort to break the political deadlock over Brexit and ensure the UK leaves the European Union. In a letter to opposition Labour leader Jeremy Corbyn, the prime minister said he would give parliament more time to approve his Brexit deal but that lawmakers must back a December election. Although uncertainty about Brexit has hurt the pound, the currency has been bolstered in October as the chances of a no-deal exit have been all but eliminated. It was against that backdrop the pound retraced its initial losses after Johnson announced his third attempt to force a snap poll. The pound

EU - FX | Currencies: Dollar up against sterling, euro on revived Brexit fears

3minutos - Source: CNBC Background of U.S. dollar bills. Alena Vikhareva | iStock | Getty Images The dollar rose on Tuesday against the pound and euro as uncertainty spread ahead of the British parliament’s vote on the Withdrawal Agreement Bill which will shine light on when and how Britain will exit the EU. The United Kingdom is expected to leave the European Union on Oct. 31, but the deal Prime Minister Boris Johnson and his European counterparts agreed last week has not been yet voted on in Britain’s parliament, which forced Johnson to request an extension to the leaving date from Brussels. The bill is expected to be presented for a vote around 1800 GMT. Sterling was down 0.35% to $1.291 in mid-morning trade after Johnson told parliament that if it delayed his Brexit legislation he would abandon his attempt to ratify the deal to leave the European Union and push for an election instead. The euro was down 0.19% versus the dollar,

EU - FX | Currencies: Dollar skids as Brexit optimism lifts pound and euro

3minutos - Source: CNBC In this photo illustration, £1 coins are seen with the new £10 note on October 13, 2017 in Bath, England. Matt Cardy | Getty Images The dollar was crawling toward its worst month since January 2018 on Monday as intermittent waves of Brexit optimism pushed the pound to a 5-1/2 month high and kept the euro’s bumper October intact. Although Prime Minister Boris Johnson this weekend was forced by his opponents to send a letter to Brussels seeking a delay to Britain’s departure from the European Union as UK lawmakers delayed a vote on a reworked Brexit deal, the currency market reflected tentative hopes that it would eventually be passed. Johnson will again try to put his Brexit deal to a vote in parliament on Monday. Against the dollar , sterling was last up 0.1% in North American trade, having earlier broken above $1.30 for the first time in 5-1/2 months. The euro was 0.18% higher against the dollar, having also b

EU - FX | Currencies: Dollar dented as data disappoints; sterling soars

3-4 minutos - Source CNBC A stack of British one pound sterling coins stand in front of a British Union flag in this arranged photograph in the United Kingdom, on June 13, 2016. Jason Alden | Bloomberg via Getty Images The U.S. dollar fell across the board on Wednesday after dismal U.S. retail sales data painted a gloomy picture of the economy and supported the case for further interest rate cuts by the Federal Reserve. The dollar index , which measures the U.S. currency against six major currencies, was down 0.1% at 98.188. U.S. retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy. “The U.S. economy is indeed revealing further weaknesses, justifying another rate cut by the Fed,” Marc-André Fongern, a strategist at MAF Global Forex in Frankfurt, said. With two weeks to go until their next policy meeting, U.S. central bankers remain di

EU - FX | Currencies: Dollar up for a 2nd day as US-China trade deal optimism fades

3minutos - Source: CNBC A cashier, left, returns cash to a customer at a Vineyard Vines store in Illinois, the United States, on  November 23, 2017. Daniel Acker | Bloomberg | Getty Images The dollar gained for a second consecutive day on Tuesday as fading optimism over the latest China-U.S. trade truce prompted traders to buy the greenback after a selloff last week. The greenback had come under selling pressure recently as the combination of some tepid U.S. data and hopes of a breakthrough in a protracted trade conflict between Washington and Beijing prompted funds to unwind some of their extreme dollar long bets. “After the recent flushout of dollar long bets, currency investors have reassessed the short-term outlook and have come to the view that there is not going to be much of a movement on the trade issue,” said Stephen Gallo, European Head of FX Strategy at BMO. Reports of a “Phase 1” trade deal between the United States and Ch

EU - FX | Currencies: Dollar set for biggest fall in 5 weeks as trade talks resume

3-4 minutes - Source: CNBC A Chinese clerk counts renminbi yuan banknotes at a bank in China on December 2015. Jie Zhao | Corbis News | Getty Images The dollar  was on track for its biggest daily drop in five weeks on Thursday against its rivals as the prospects of a partial trade deal between China and the United States fuelled appetite for trade-oriented currencies such as the euro and the Australian dollar. Reports the United States is weighing a currency pact with China that could also see a planned tariff hike next week being suspended fueled a rally in risky assets, though trading remained volatile as negotiations got underway. “We are not surprised by the dollar weakness as a trade deal would trigger further risk appetite and the Fed also seems to be in easing mode,” said Nikolay Markov, a senior economist at Pictet Asset Management. Against a basket of its rivals, the dollar fell 0.4% to 98.66 and was on track for its biggest si

EU - FX | Currencies: Dollar steady as traders look to trade talks, Fed for direction

3-4 minutes - Source: CNBC A Chinese bank employee counts 100-yuan notes and US dollar bills at a bank counter in Nantong in China’s eastern Jiangsu province on August 6, 2019. STR | AFP | Getty Images The dollar was little changed against a basket of currencies on Monday as traders awaited U.S.-China trade talks later in the week for clues to the state of the prolonged trade war between Washington and Beijing, even as chances of a deal appeared low. Investors’ overall appetite for risk was weak on Monday after a Bloomberg report said that Chinese officials were reluctant to agree to U.S. President Donald Trump’s broad trade deal. Top-level U.S.-China trade talks are scheduled to resume next Thursday and Friday, when Chinese Vice Premier Liu He meets with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington. “The tone of markets overall has softened again today following news that Chinese

EU - FX | Currencies: Euro drops to 28 month low on growth concerns

3-4 minutes - Source: CNBC A customer pays with cash at a Best Buy store in Texas, United States, on November 26, 2010. Aaron M. Sprecher | Bloomberg | Getty Images The euro fell to its lowest in two-and-a-half years against the U.S. dollar on Monday as concerns about euro zone growth weighed on the single currency, while the greenback benefited from seasonal demand and uncertainty arising from the U . S . -China trade war. German annual inflation unexpectedly slowed for the third consecutive month in September, data showed on Monday. The German CPI print this morning was a little bit on the disappointing side, said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto. Germany’s leading economic institutes have also revised down their growth forecast for Europe’s biggest economy for this year, two sources with knowledge of their decision told Reuters on Monday. The revisions, which feed into the governmen

EU - FX | Currencies: Euro pinned at more than two-year lows; sterling drops

3 minutes - Source: CNBC A cashier, left, returns cash to a customer at a Vineyard Vines store in Illinois, the United States, on  November 23, 2017. Daniel Acker | Bloomberg | Getty Images The euro held at its lowest level in more than two years on Friday as quarter-end rebalancing flows boosted demand for the dollar, with investors unfazed by the latest political news out of the United States. The euro fell 0.1% lower to $1.0904, its lowest level since May 2017. Against a basket of its rivals, the greenback pushed 0.1% higher to 99.27, its highest level in more than three weeks. “Some corporate demand in the last few days seems to be boosting the dollar but our models show there should be net selling later in the day due to  rebalancing flows,” said Manuel Oliveri, a currency strategist at Credit Agricole in London. Sterling was the other big loser in early London trading after Bank of England policymaker Michae