Posts

Showing posts with the label EU FX ; Currencies.

EU FX I Currencies: Sterling rises before Brexit votes, dollar flat

Image
Holly Ellyatt 2-3 minutes Euro notes and coins Danita Delimont | Getty Images Sterling rose on Tuesday before British lawmakers were scheduled to vote on whether to take a proposal off the table to leave the European Union without a deal, while the U.S. dollar was little changed ahead of a Federal Reserve two-year policy meeting. The euro, yen and other major currencies were locked in narrow trading ranges, with traders reluctant to take big positions due to uncertainty over the U.K. parliamentary vote. There were also clues from the U.S. central bank that it might pause from its current rate-hike campaign. Investors expect the Fed to adopt a more cautious stance, pressured by signs of a peak in U.S. corporate earnings and the threat of an economic slowdown both at home and globally. Fed policy makers convene Tuesday and are expected to release a policy statement on Wednesday at 2 p.m., followed by a press conference from Fed Chairm

Dollar weak as trade, growth worries cloud outlook

Image
3 minutes Torsakarin | iStock / 360 | Getty Images The dollar edged down against a basket of currencies on Wednesday as uncertainties over trade and the global economy clouded the U.S. currency's near-term outlook and restricted it to tight trading ranges against other major currencies. "The trade conflicts and tensions, the (U.S. government) shutdown and certainly more chatter about global growth in 2019, those are the factors that need to be hashed out before we get a clear direction," said Minh Trang, senior currency trader at Silicon Valley Bank in Santa Clara, California. On Monday, the International Monetary Fund cut its 2019 and 2020 global growth forecasts, citing a bigger-than-expected slowdown in China and the euro zone. Failure to resolve trade tensions could further destabilize the global economy, the IMF said. The partial U.S. government shutdown, now in its 33rd day, added to investors' unease. U.S. Republican Sena