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Showing posts with the label EU FX I Currencies

EU FX I Currencies: Dollar drops to lowest since October on US-China trade hope

Elizabeth Schulze 3 minutes Dan Kitwood | Getty Images The dollar sank on Wednesday to its lowest since October, with gains led by the euro and sterling , as risk appetite improved on optimism over U.S.-China trade negotiations, prompting investors to reduce their safe-haven bets. After initially slipping following poor German and French economic data, the euro recovered to post its highest in about three months. News that China and the United States had extended trade talks in Beijing for an unscheduled third day boosted oil prices and broader sentiment. Expectations of more easing in China helped the mood as well, with Asian and European shares rallying. “As long as you don’t see a situation where there is a negative turn much like what we saw over the last quarter, markets will probably view any trade development, even if they’re not concluded by the March 1 deadline, with modest optimism just because it reduces the downside risk t

EU FX I Currencies: Dollar eases, but off lows, after Fed signals few more hikes ahead

Sam Meredith The dollar  came off its lows but remained weaker overall on Wednesday after the Federal Reserve’s guidance on its tightening cycle was less dovish than expected, even though it forecast fewer interest rate hikes than it had in September. The Fed raised interest rates, as expected, while citing the impact of ongoing market volatility and potential slowdowns around the world. The greenback earlier hit a seven-week low against the yen and a roughly one-week trough versus the euro before paring losses after the Fed’s decision. In its policy statement, the Fed said the U.S. economy has been growing at a strong rate and the job market has continued to improve. It noted that “some” further gradual rate hikes would be needed, a subtle change that suggested it was preparing to stop raising borrowing costs. Fresh economic forecasts released by the Fed on Wednesday showed policymakers expect two rate hikes next year and one the following year. “We’ve s

EU FX I Currencies: Euro slips as ECB ends bond purchases.

David Reid The euro fell against the dollar on Thursday after the European Central Bank as expected halted new bond purchases and promised to maintain policy support for the euro zone due to risks from trade tensions, Brexit and budget woes in Italy and France. Sterling held steady following UK Prime Minister Theresa May’s prevailing in her party’s vote on her leadership the previous day. It had rallied on Wednesday in anticipation as traders bet her win might allow her to negotiate more generous terms for Britain in its exit from the European Union in March. The dollar strengthened against most major currencies stemming from optimism on some progress between China and the United States to resolve their trade issues, analysts said. “Continuing confidence and increasing caution,” was how ECB President Mario Draghi at his news conference described ECB’s decision for ending the 2.6 trillion euro ($2.95 trillion), four-year-long quantitative easi

EU FX I Currencies: Dollar falls after weak jobs report, set for biggest weekly drop in two months David Reid 3-4 minutos Dan Kitwood | Getty Images The U.S. dollar fell after the weaker-than-expected monthly job report was released, suggesting the Federal Reserve will tighten monetary policy at a slower rate than previously forecast. Nonfarm payrolls increased by 155,000, well below expectations, while wage growth also missed expectations. The greenback was down 0.15 percent after the report. It has since fallen further, down 0.24 percent at 96.58. The dollar sustained a large overnight drop as growing speculation that the U.S. central bank may be readying to signal a pause in its three-year rate hiking campaign was offset by concerns that global growth is slowing. Expectations the Fed was readying to pause rates was bolstered after Fed Chairman Jerome Powell said last week that U.S. interest rates were nearing neutral levels, which markets interpreted as signalling a slowdown in rate hikes. Those hopes

EU FX I Currencies: Dollar firms as countdown to Trump-Xi meeting gets underway

Osman Orsal | Reuters The dollar strengthened on Friday, as markets nervously awaited the outcome of talks between the leaders of the world's two biggest economies this weekend which could determine whether trade tensions between them will escalate further. The discussions could also determine the direction of the U.S. currency, which has gained more than 5 percent against its rivals this year on concerns that rising trade tensions will hurt world economic growth and boost its safe-haven appeal. President Donald Trump and China's President Xi Jinping are expected to meet at a G20 summit in Buenos Aires which kicks off on Friday, discussing con

EU FX I Currencies: Euro set for biggest weekly drop in a month on PMI data, oil fall Dan Kitwood | Getty Images The euro slumped half a percent on Friday on signs that economic growth could be slowing across the euro zone with worries about Brexit and Italy's budget negotiations also weighing on the single currency. A steep drop in oil prices on Friday fueled a risk-off wave across the board, setting the dollar on track for its biggest weekly rise in a month. Business growth in the euro zone slowed much faster than expected this month, a Purchasing Managers Index survey showed. The

EU FX I Currencies: Dollar rebounds from 2-week low as risk sentiment worsens

Matt Cardy | Getty Images The dollar rallied from a two-week low on Tuesday as a sell-off in world stock markets

EU FX I Currencies: Dollar at new 16-month high as US data lends support I CNBC CNBC The dollar edged up to a fresh 16-month high against a basket of key currencies on Wednesday on the back of continued U.S. economic strength, putting the greenback on pace for a seventh straight month of gains. Against a basket of its rivals, the dollar, was up 0.13 percent at 97.12, its highest level since June 2017. "If you look at the G10 as well as some of the emerging markets, they have been battered quite a bit over the last six months and the movements over the past two, three weeks has not helped," said Minh Trang, senior FX trader at Silicon Valley Bank in Santa Clara, California. "Especially if you look at currencies like the euro or the pound," Trang added. The euro slipped 0.28 percent against the greenback, while the dollar climbed 0.06 percent against the Japanese yen . Both currencies have shed more than 2 percent in October. Less-than-stellar economic news from the euro zone region has weighed on the eur

EU FX I Currencies I Dollar recovers as equity sell-off eases I CNBC CNBC The dollar edged up on Friday, reflecting investor confidence in the U.S. economy, despite criticism by President Donald Trump of the Federal Reserve and a sell-off in U.S. equities. A recent decline in stocks has yet to spread into foreign exchange markets, with emerging-market currencies still appreciating and the safe-haven Japanese yen and Swiss franc not budging significantly. The dollar has risen 2.5 percent since July on expectations interest rates will soon rise further and on safe-haven flows from the U.S.-China trade war.