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Showing posts with the label FX

FX | EU Currency: Dollar rises on bullish data, euro's fall

3 minutes - Source: CNBC The U.S. dollar has regained some strength in recent weeks. Getty Images The dollar rallied on Friday on bullish economic data and hit a two-week high against the euro as expectations of central bank stimulus weighed on the single currency. U.S. homebuilding fell for a third straight month in July amid a steep decline in the construction of multi-family housing units, but a jump in permits to a seven-month high offered hope for the struggling housing market. Better-than-expected retail sales data in the United States on Thursday also encouraged buying of the dollar. “Any downturn in the U.S. economy appeared on a further rather than closer horizon after bullish retail spending data this week suggested America’s main growth engine had ample horsepower to extend the record-long expansion,” said Joe Manimbo, senior market analyst at Western Union Business Solutions. The euro fell 0.14% to $1.109, shy of the two

FX I Currency Report: Dollar recovers as strong US data soothes market nerves

3 minutes - Source: CNBC The dollar recovered from early weakness against the safe-haven yen as better-than-expected U.S. retail sales data on Thursday eased fears that the U.S. economy could be headed for a recession. The Japanese yen, which tends to benefit during geopolitical or financial stress as Japan is the world’s biggest creditor nation, has strengthened about 0.3% against the dollar this week as investors reached for safety. The yen started the day strong against the dollar as investors fretted over this week’s economic data from China and Germany that revealed the extent of the damage the China-U.S. trade dispute is causing to the world economy. The Japanese currency advanced sharply against the greenback on Wednesday after the first inversion in the U.S. Treasury yield curve in 12 years sparked heightened fears of an imminent end to the longest economic expansion in U.S. history. However, the yen retreated against the green

FX: Recession indicator, trade pessimism sink dollar versus yen

3 minutes themorningglory | Getty Images The Japanese yen jumped to a session high against the dollar on Wednesday after the U.S. Treasury bond yield curve inverted for the first time since 2007 and investors, gripped by fear of a looming global recession, fled to the safety of perceived safe-haven assets. An inversion of the yield curve - when the spread between 2- and 10-year Treasury yields falls below zero - is an indicator of coming recession. The chill the inverted curve sent through global markets was compounded by weak data from China and Germany and waning optimism about progress reported in U.S.-China trade talks on Tuesday. The yen , already stronger on the day, was boosted by the inversion and was trading up 0.73% at 105.94, though still off a 1-1/2-year high -excepting a flash crash in January - hit Monday. “There is plenty of doom and gloom to spread across the globe,” said John Doyle, vice president for dealing and t

FX : Dollar soars versus yen after US makes trade concessions

3 minutes - Source: CNBC Torsakarin | iStock / 360 | Getty Images The U.S. dollar took off on Tuesday morning, clobbering the Japanese yen, after the Trump administration said it would delay 10% tariffs on some Chinese products scheduled to begin next month, a significant concession in the trade conflict between Washington and Beijing. The U.S. Trade Representative said it would delay tariffs on laptops and cellphones, among other products, set to be imposed in September. The U.S. dollar rose 1.49% to 106.85 Japanese yen per dollar. The yen is a safe-haven asset which benefits in moments of geopolitical uncertainty and during economic downturns. The U.S.-China trade war had begun to affect economic growth in the United States and raise fears that the conflict could lead to a recession. Other safe havens like Treasury bonds also saw prices fall as investors moved money into riskier assets. The dollar index was 0.38% higher at 97.749, a

FX: Dollar flat, sterling, euro tick up with market in August lull

3 minutes - Source: CNBC Tomohiro Ohsumi | Bloomberg | Getty Images The U.S. dollar index was roughly flat on Monday and sterling and the euro saw a modest rise as the foreign exchange market fell into an August lull, a traditionally quiet trading period with many investors and traders on vacation. The British pound was 0.37% higher to trade at $1.208, with the euro up 0.17% against the dollar at $1.1219. “It has been a pretty quiet day overall. We have had sterling and euro bubbling up. I don’t think there’s any particular super-positive news behind that. But, markets held substantial shorts in both currencies,” said Gregory Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. The currency market is “heading into the deepest part of the holiday period. People are taking the shorts off and it puts upward pressure on both currencies. It’s probably the biggest story in FX for today.” The dollar ind

FX: Yuan gains as China appears to curb currency weakness

3 minutes - Source: CNBC Chinese yuan and dollar China Photos | Getty Images The Chinese yuan strengthened and demand for safe haven currencies like the Japanese yen and Swiss franc fell on Tuesday as China appeared to take steps to stabilize its currency, after the yuan on Monday breached a key level and sparked broad risk aversion. Stocks and emerging market currencies plunged on Monday and safe havens jumped after Chinese authorities allowed the yuan to break through the psychologically important level of 7 per dollar, its lowest level since the 2008 financial crisis. Risk appetite improved on Tuesday after the People’s Bank of China fixed the daily reference rate for the onshore Chinese yuan at 6.9683, firmer than the expected 6.9871, and below the key 7 rate. The central bank also said it was selling yuan-denominated bills in Hong Kong, a move seen as curtailing short selling of the currency. The signs that China’s not willing t

FX: China's yuan drops below 7 per dollar as trade war escalates

3 minutes Foreign exchange currencies. Getty Images China let its yuan weaken below 7 to the dollar on Monday, an 11-year low, adding to broad risk aversion on concerns about the escalation of the U.S.-China trade war. Investors dumped export-oriented Asian currencies and rushed into safe havens, with the Japanese yen surging to a seven-month high. Chinese authorities, who had been expected to defend the psychologically important level , allowed the currency to drop to its lowest in the onshore market since the 2008 global financial crisis. “We’ve had a pretty meaningful reaction, where 7 in particular was a level that the market was very sensitive to in dollar/CNY. Now that weve broken that, risk appetite has taken a hit,” said Brian Daingerfield, head of G10 FX strategy for the Americas at NatWest Markets in Connecticut. “I think there’s a sense that President Trump might try and escalate in terms of a reaction if he thinks tha

FX | The Dollar | Dollar weakens as September rate cut bets mount

3 minutes The dollar fell broadly on Friday as news of slower U.S. employment growth in July and heightened U.S.-China trade tensions fueled expectations that the Federal Reserve would cut interest rates again in September. Nonfarm payrolls increased by 164,000 jobs in July, fewer than the month prior, and wages increased modestly, the Labor Department said. The report came a day after U.S. President Donald Trump announced an additional 10% tariff on $300 billion worth of Chinese imports starting Sept. 1, leading financial markets to almost fully price in a September rate cut. The dollar fell 0.76% against the Japanese yen to its lowest since Jan. 3, last at 106.50. Versus the euro it was 0.22% weaker at $1.1109. The Swiss franc, which like the yen serves as a safe-haven investment in times of market volatility, was 0.83% stronger to 0.9818 franc per dollar. “On balance it is probably a slightly dollar-negative number because I do think

Fx on Thursday 1, August 2019 | Dollar falls after Trump imposes more tariffs on China

2 minutes Frank van den Bergh | E+ | Getty Images The dollar fell on Thursday after President Donald Trump said the U.S. would put additional tariffs on China. The president said additional tariffs of 10% on the remaining $300 billion in Chinese goods would be added in September. The dollar index fell 0.18% to 98.34. Earlier, the dollar was stronger after the Federal Reserve sounded cautious on more rate cuts sent the euro to a 26-month low on Thursday, as investors decided a lengthy U.S. easing cycle was unlikely. In a widely expected move, the U.S. central bank cut rates on Wednesday for the first time since the financial crisis, in response to the growing risk of higher import tariffs and a slowdown in the world’s major economies. But it also signalled that the quarter point cut may not be the start of a lengthy campaign to shore up the economy. “It’s not the beginning of a long series of rate cuts,” Fed Chairman Jerome Powell sa

FX I Currencies I Dovish Fed spurs dollar's biggest two-day drop in a year.

3 minutes Antara Foto | Hafidz Mubarak via Reuters The U.S. dollar sank against its rivals on Thursday, putting it on track for its biggest two-day drop in a year after the Federal Reserve signaled it was ready to cut interest rates as early as next month. The Fed joined global peers such as the European Central Bank and the Reserve Bank of Australia this week in signaling that more policy stimulus is needed to maintain growth. That fueled a rally in higher-yielding currencies such as the Australian dollar and the Korean won. “Certainly the market has taken this as a dovish turn and as a reason to sell dollars,” said Lee Ferridge, head of macro strategy for North America at State Street. “The theme of the day is going to stay with the dollar under pressure.” The dollar fell 0.47% against a basket of its rivals to 96.66, putting it on course for its biggest two-day losing streak since February 2018. It also retreated to a six-month

FX | Currencies: Dollar drops after Fed holds rates steady, risk assets gain

2 minutes Mark Wilson | Getty Images The dollar weakened against other major currencies on Wednesday after the Federal Reserve held interest rates steady at its regular meeting. The dollar index , which measures the currency against a basket of six rivals, was down 0.51% to 97.148. The drop slowed however as the market digested the news and some initial losses were retraced. Against the euro , the dollar was down 0.46% to $1.124 , and against the pound it was down 0.8% to $1.267. In response to the announcement, investors moved money out of safe-haven assets like the dollar and U.S. Treasuries and into stocks. President Donald Trump said on Tuesday he would have an extended meeting with Chinese President Xi Jinping at the Group of 20 summit later this month, raising hopes they can ease tensions in a trade dispute that has damaged the world economy. U.S. Trade Representative Robert Lighthizer on Wednesday said he and U.S. Treasury Se

FX I Currencies I CNBC I Dollar stalled amid Fed meeting; dovish Draghi depresses euro

3 minutes John Phillips | Digital Editor | CNBC The U.S. dollar was little moved on Tuesday as traders held off making large bets before the Federal Reserve’s policy announcement on Wednesday. The Federal Open Market Committee began its two-day meeting on Tuesday, and will issue a statement and economic projections at the close of Wednesday’s session. The committee is expected to leave its benchmark overnight policy rate unchanged at the current range between 2.25% and 2.5%. But slow employment growth in May, the ongoing trade war with China and weak inflation data have increased expectations for dovish remarks. The dollar index was last up 0.08% at 97.640, its highest since June 3. “Markets are largely keeping the powder dry ahead of tomorrow’s Fed announcement,” said Karl Schamotta, chief market strategist at Cambridge Global Payments. “We’re thinking that we are going to see a relatively dovish announcement, certainly acknowled

FX I Currencies I Dollar steady ahead of Fed meeting; low chances of June rate cut

3 minutes Athit Perawongmetha | Reuters The U.S. dollar was roughly unchanged on Monday, hovering near the two-week high set earlier in the session as investors reconsidered how dovish the Federal Reserve is likely to be at this week’s policy meeting. Broader currency markets were quiet, as traders hesitated to put on large positions before the Fed’s two-day meeting, a meeting of European Central Bank policymakers in Portugal and the Bank of England’s interest rate decision on Thursday. “It wouldn’t surprise us to see a bit of volatility going into these meeting but ultimately you’re going to see people taking more of a wait-and see approach,” said Charles Tomes, portfolio manager at Manulife Asset Management. Expectations of a rate cut at the Fed’s June 18-19 meeting have fallen to a probability of 20.8%, according to CME Group’s FedWatch tool. But bets for monetary easing at its July meeting remain elevated, with markets pricing in

FX I Currencies I CNBC I Dollar steady before Fed meeting, G20 summit

2 minutes Tomohiro Ohsumi | Getty Images The U.S. dollar was little changed against the euro on Thursday as investors were reluctant to take large positions before next weeks Federal Reserve meeting and the G20 summit in Japan later this month. Tepid inflation and weakening economic data in the midst of a U.S.-China trade war has fed expectations that the Federal Reserve is close to cutting interest rates. That has brought the U.S. dollar down from two-year highs reached in May, yet investors are reluctant to get too bearish on the greenback without further confirmation that rate cuts are near. I think in order to see the dollar weaken further you need to see some follow through from the Fed on rate easing, said Mazen Issa, senior fx strategist at TD Securities in New York. The Fed is not widely expected to cut rates when it meets on June 18-19, though investors will watch for new signals that a cut may come in July. Interest rate

FX I Currencies I CNBC I Dollar gains as trade tensions, Fed policy in focus

3 minutes Athit Perawongmetha | Reuters The U.S. dollar gained on Wednesday as trade tensions and U.S. interest rate policy remained in focus after President Donald Trump expressed optimism over making a trade deal with China. The greenback has come under pressure recently as the U.S.-China trade war threatens to derail global economic growth, adding to bets that the Federal Reserve is closer to cutting interest rates. A sustained decline against the euro has not yet emerged, however, as the U.S. currency still benefits from relatively higher rates than in Europe. “You still have a very large divergence between the Federal Reserve and the European Central Bank, and that’s really what’s precluding a sustained euro/dollar rally based on the expectations of what the Fed’s going to do going forward,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto. The dollar was boosted on Wednesday after Trump s

FX | Currencies | Dollar flat, poised for fourth month of gains

3 minutes A trader shows U.S. dollar notes at a currency exchange booth. Akhtar Soomro | Reuters The dollar was flat on Thursday, on track to post a fourth straight month of gains, as the trade stand-off between China and the United States prompted traders to put money into perceived safe currencies including the greenback. Safe-haven demand lifted the dollar to a two-year high against a basket of currencies last week. Appetite for the greenback was somewhat curbed on Thursday as Wall Street stabilized following steep losses due to the trade worries. The euro and sterling holding above key support levels at $1.11 and $1.26, respectively, also restrained the greenback’s momentum, analysts said. “The dollar is getting tired at these levels,” said Dean Popplewell, chief currency strategist at Oanda. “Some people want to take off some of these positions before June.” At 1:00 p.m., an index that tracks the dollar against six major curre

FX | Currencies | Swiss franc, yen shine as trade tensions dominate

2-3 minutes The Swiss franc gained across the board on Wednesday and the yen rallied to a two-week high versus the dollar as investors flocked to perceived safe havens assets amid growing fears about trade and growth. The wave of risk aversion sent sovereign bond yields tumbling across the world. Benchmark U.S. Treasury yields fell to their lowest levels since September 2017 while New Zealand bond yields tumbled to a record low. The mood darkened after the People’s Daily newspaper, owned by China’s ruling Communist Party, said Beijing was ready to use rare earths for leverage in its trade dispute with the United States. “Don’t say we didn’t warn you,” it added in a strongly worded commentary. “Concerns about global trade are being felt across asset classes and the currency markets are feeling the pressure,” said Nikolay Markov, a senior economist at Pictet Asset Management. The Swiss franc, a currency that usually gains when risk aver

FX | Currencies | Dollar holds steady as US yields hit 19-month low

2-3 minutes An employee of a bank counts US dollar notes. Kham | Reuters The dollar stayed firm against a basket of currencies on Tuesday, supported by trade and political worries and a strong rise in U.S. consumer confidence, even as longer-dated U.S. bond yields dropped to 19-month lows. The euro rebounded from session lows as investors were relieve that pro-Europe parties won a majority of European parliamentary seats. Currency trading remained light even as U.S. and U.K.-based traders returned from holidays. “This is the first full day for the markets after holidays in both U.K. and U.S. yesterday and the economic calendar is nearly barren today adding to the lackluster tone in the trade,” said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York. At 2:36 p.m. ET, an index that tracks the greenback against the euro, yen, sterling and three other currencies was 0.3% higher at 97.93. The dollar

FX I Currencies I Dollar at two-year high, safe havens up on stormy global economy

David Reid 3-4 minutes Torsakarin | iStock / 360 | Getty Images The dollar hit its highest level in two years and the yen rose half a percent on Thursday as economic and political uncertainties swept through Europe and Asia, pinning down the euro and the yuan. Worries over German manufacturing, the impact of a trade war on Asian economies and deepening concerns over Brexit and European parliamentary elections have broadly curbed risk appetite and sent investors to perceived safe-haven assets. “Safe havens were the currencies of choice as confidence in global growth faltered,” said Joseph Manimbo, senior market analyst at Western Union Business Solutions. “The greenback and safer rivals from Japan and Switzerland were in the driver’s seat.” While the United States is not without its own worries - namely trade conflict with China - investors see the greenback as a relative safe haven because of its preeminence in the global

FX | Currencies | Dollar holds near one-month high ahead of Fed minutes

Tucker Higgins 3-4 minutes Mohamed Abd El Ghany | Reuters The U.S. dollar held near a one-month high on Wednesday amid heightened trade tensions between the United States and China and ahead of the release of Federal Reserve meeting minutes which may provide more clues on why the central bank stood pat on interest rates earlier this month. At its May 1 meeting, the Federal Open Market Committee kept interest rates steady and signaled little appetite to adjust them any time soon, taking note of strong jobs growth. Still, the minutes may not add much to what the market has learned from a slew of comments from Fed members this week. In Hong Kong earlier Wednesday, James Bullard, president of the Federal Reserve Bank of St. Louis, said further weakness in inflation could prompt the Fed to cut rates, even if economic growth maintains its momentum. Bullard’s comments echoed those made by other Fed members this week, including the Chicago Fed’s Charles Ev