Dollar hovers near 16-month high, yen pares intraday gains

The dollar traded slightly below a 16-month high versus a basket of peers on Tuesday, benefiting from save-haven flows sparked by political uncertainties in Europe and fears of a global economic slowdown. The dollar index, a gauge of its value versus six major peers, traded at 97.5, sitting shy of its 16-month high of 97.69 hit on Monday. The Japanese yen traded at 113.99 on Tuesday, as the greenback gained 0.1 percent versus the yen. “The yen will now have a greater safe haven pull than the dol


The dollar traded slightly below a 16-month high versus a basket of peers on Tuesday, benefiting from save-haven flows sparked by political uncertainties in Europe and fears of a global economic slowdown. The dollar index, a gauge of its value versus six major peers, traded at 97.5, sitting shy of its 16-month high of 97.69 hit on Monday. The Japanese yen traded at 113.99 on Tuesday, as the greenback gained 0.1 percent versus the yen. “The yen will now have a greater safe haven pull than the dol
Dollar hovers near 16-month high, yen pares intraday gains Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13
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Dollar hovers near 16-month high, yen pares intraday gains

The dollar traded slightly below a 16-month high versus a basket of peers on Tuesday, benefiting from save-haven flows sparked by political uncertainties in Europe and fears of a global economic slowdown.

Investor confidence has been eroded by bitter trade tensions between the United States and China, fears of a no-deal Brexit, and a standoff between Rome and the European Union over Italy’s deficit-deepening budget.

Added to that litany is a view that corporate earnings growth has peaked amid rising borrowing costs.

Shares on Wall Street tumbled on Monday, with falls led by technology stocks.

The bearish mood crept into Asian trade as well with the MSCI ex-Japan index falling 0.87 percent to trade at 477.5 on Tuesday.

The U.S. Federal Reserve is set to raise rates by 25 basis points in December, with two more hikes to follow by mid-2019, as wage pressures build in a booming economy.

The CME group’s FedWatch tool puts the probability of a December rate hike at 75 percent.

The dollar index, a gauge of its value versus six major peers, traded at 97.5, sitting shy of its 16-month high of 97.69 hit on Monday.

“The dollar has broken out of a 17-month range on the back of safe-haven buying, led by falling equity prices as well as the heavy sell-offs in the euro and sterling,” said Nick Twidale, chief operating officer at Rakuten Securities.

The Japanese yen traded at 113.99 on Tuesday, as the greenback gained 0.1 percent versus the yen. The yen touched a six-week low of 114.20 on Monday.

The dollar has been preferred over the yen due to the diverging monetary policies of the Fed and the Bank of Japan, which is expected to retain its ultra-loose monetary policy settings for some time in the face stubbornly sluggish inflation.

But analysts believe that the yen will strengthen if global risk sentiment worsens, thanks to its safe-haven status.

“The yen will now have a greater safe haven pull than the dollar if equities witness a further correction. We see dollar/yen downside in that scenario,” added Twidale.

Sterling staged a mild relief rally in Asian to trade at $1.2879, gaining 0.28 percent. It has slipped against the dollar in the last three trading sessions and posted its largest percentage decline versus the dollar since Sept. 21 on Monday.

“Sterling was a bit oversold and much of last night’s move occurred in thin liquidity. The lack of follow-through in Asia has led some to take profits on their shorts,” said Stephen Innes, head of trading, APAC at Oanda.

Investor sentiment has weakened as doubts grow over Prime Minister Theresa May’s ability to win the backing of the European Union or her own party for a Brexit deal.

With less than five months before Britain is due to leave the EU on March 29, negotiations are still stuck over how to prevent a return to a hard border between British-ruled Northern Ireland and EU member Ireland.

However, sterling traders got some encouragement after the European Union’s chief Brexit negotiator said the main elements of an exit treaty text were ready to present to the British cabinet on Tuesday.

The euro gained 0.2 percent to trade at $1.1243 on Tuesday, after tumbling more than one percent versus the dollar on Monday.

The standoff between Rome and Brussels over Italy’s free-spending budget and wide fiscal deficit has put immense strain on the single currency, which has lost 5.9 percent of its value over the last six months.

The European Commission rejected Italy’s 2019 budget last month, saying it flouted a previous commitment to lower the country’s deficit.

Italy is expected to submit a revised version of its budget on Tuesday, keeping euro traders active.


Company: cnbc, Activity: cnbc, Date: 2018-11-13
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Asia markets retrace some losses; oil prices closely watched after OPEC warns on output

Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices. Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019. That announcement came as rising supply and a weaker outlook for demand


Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices. Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019. That announcement came as rising supply and a weaker outlook for demand
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Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: saheli roy choudhury
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Asia markets retrace some losses; oil prices closely watched after OPEC warns on output

Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices.

Japan’s Nikkei 225 erased early losses of more than 0.7 percent to trade fractionally higher while the Topix index was near flat. In South Korea, the Kospi retraced losses of more than 0.6 percent to trade down 0.1 percent.

Markets in Greater China were mostly positive in early trade. Taiwan’s Taiex index was up 0.35 percent while Hong Kong’s Hang Seng Index added 0.14 percent. Major indexes in the mainland markets traded mostly flat: The Shanghai Composite at around 2,600 while the Shenzhen composite added nearly 0.2 percent.

In Australia, the ASX 200 erased earlier losses to trade marginally higher around 5,923. The heavily-weighted financial subindex fell 0.66 percent as shares of some major banks tumbled: ANZ shares were down 3.74 percent and the National Australia Bank declined 0.24 percent. Westpac shares were up 0.13 percent and Commowealth Bank rose 0.58 percent.

Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019.

A committee of several OPEC members and other crude exporters said that a larger group of roughly two dozen nations may have to launch a fresh round of output cuts in order to keep the oil market balanced. That announcement came as rising supply and a weaker outlook for demand have contributed to a sharp pullback in oil prices.

“The fairly quick downward correction in oil prices has finally stirred OPEC members to broach the topic of more output cuts over the weekend,” Wei Liang Chang, a foreign-exchange strategist at Mizuho Bank, wrote in a morning note. “Even so, the correction in oil prices appears partly due to a pullback in global equities, and output management risks exaggerating price moves when market sentiment reverses.”

U.S. crude traded up 0.8 percent at $60.67 a barrel while global benchmark Brent was up 0.95 percent at $70.85.

In the currency market, the dollar index, which measures the U.S. dollar against a basket of its peer, traded at 96.984, up from levels below 96.000 in the previous week.

Analysts said that the dollar “reasserted itself” as sentiment fell in the stock market last Friday.

The Japanese yen traded at 113.95 to the dollar while the Australian dollar traded at $0.7229.

— CNBC’s Tom DiChristopher contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: saheli roy choudhury
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Dollar stands tall, inches closer to its 16-month high

The dollar built on last week’s gains and rose towards as 16-month high on Monday as traders expect the U.S. Federal Reserve to keep tightening monetary policy. The dollar index gained 0.12 percent on Monday, changing hands at 97.02, sitting a little below its 16-month high of 97.2 hit on Oct. 31. The dollar index has strengthened four weeks in row, gaining 0.37 percent last week. “The dollar index was firm all last week, bouncing back after the mid-term election results. The dollar has been pre


The dollar built on last week’s gains and rose towards as 16-month high on Monday as traders expect the U.S. Federal Reserve to keep tightening monetary policy. The dollar index gained 0.12 percent on Monday, changing hands at 97.02, sitting a little below its 16-month high of 97.2 hit on Oct. 31. The dollar index has strengthened four weeks in row, gaining 0.37 percent last week. “The dollar index was firm all last week, bouncing back after the mid-term election results. The dollar has been pre
Dollar stands tall, inches closer to its 16-month high Cached Page below :
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Dollar stands tall, inches closer to its 16-month high

The dollar built on last week’s gains and rose towards as 16-month high on Monday as traders expect the U.S. Federal Reserve to keep tightening monetary policy.

The Fed has reaffirmed its plan to raise interest rates by 25 basis points in December, followed by two more potential rate hikes by mid-2019 on the back of an upbeat economy and rising wage pressures.

The greenback has also benefited from a safe haven bid as market participants moved away from riskier assets due to U.S.-Sino trade tensions, an economic slowdown in China, Brexit uncertainty, and the standoff between Rome and the European Union over Italy’s plan for a big-spending budget and wide fiscal deficit.

The dollar index gained 0.12 percent on Monday, changing hands at 97.02, sitting a little below its 16-month high of 97.2 hit on Oct. 31. The dollar index has strengthened four weeks in row, gaining 0.37 percent last week.

“The dollar index was firm all last week, bouncing back after the mid-term election results. Looking ahead, moves will be driven by the developments around the Italian budget and Brexit politics,” said Sim Moh Siong, currency strategist at Bank of Singapore.

The dollar gained 0.1 percent on the Japanese yen which quoted at 113.94 on Monday, near a 5-week low of 114.08. The dollar has been preferred over the yen because of the diverging monetary policies of the Fed and the Bank of Japan.

While the Fed is on track to raise interest rates, the BOJ is expected to keep its monetary policy ultra-loose in the face of slow growth and inflation.

The widening interest rate differential between U.S. and Japanese bonds has made the dollar a more attractive bet than the yen, which is often a funding currency for carry trades.

The British pound lost 0.25 percent to $1.2941 on Monday. Sterling has been weighed down by Brexit fears, with investors yet to see an orderly exit plan.

Less than five months before Britain is due to leave the EU on March 29, negotiations are still stuck over a backup plan for the land border between British-ruled Northern Ireland and EU member Ireland, should they fail to clinch a long-term deal.

Four British ministers who back remaining in the European Union are on the verge of quitting Theresa May’s government over Brexit, the Sunday Times reported, adding to the political uncertainty.

“Eventually, the EU and May will come to a deal. Both parties want to conclude the deal, but the only risk is whether May will still be Prime Minister. I expect sterling to remain choppy in its recent wide range,” added Sim Moh Siong.

The euro traded at $1.1322 on Monday, down 0.11 percent. The single currency lost ground versus the dollar in the previous three trading sessions as investor confidence weakened due to the standoff over Italy’s budget.

The European Commission (EU) rejected Italy’s 2019 budget last month, saying it flouted a previous commitment to lower the country’s deficit. The EU gave Rome until Tuesday to present a revised version of the budget.

The EU also cut its forecasts for Italian growth last week, adding to investor concerns over Italy’s debts and economic outlook.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: beawiharta
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There’s something behind this market sell-off that no one is talking about: The strong dollar

Stocks investors are spooked about a lot of things, and the strong dollar biting into earnings growth is now one of them. As the dollar rose, the Dow Jones Industrial Average lost 602 points to 25,387, and the S&P 500 was down nearly 2 percent to 2,726. The question is whether the U.S. economy can withstand a slowdown in global growth, and I don’t think it can in the long run.” Marc Chandler, chief market strategist at Bannockburn Global Forex, said the dollar in recent sessions has been getting


Stocks investors are spooked about a lot of things, and the strong dollar biting into earnings growth is now one of them. As the dollar rose, the Dow Jones Industrial Average lost 602 points to 25,387, and the S&P 500 was down nearly 2 percent to 2,726. The question is whether the U.S. economy can withstand a slowdown in global growth, and I don’t think it can in the long run.” Marc Chandler, chief market strategist at Bannockburn Global Forex, said the dollar in recent sessions has been getting
There’s something behind this market sell-off that no one is talking about: The strong dollar Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: patti domm, osman orsal
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There's something behind this market sell-off that no one is talking about: The strong dollar

Stocks investors are spooked about a lot of things, and the strong dollar biting into earnings growth is now one of them.

The dollar index, which measures the greenback versus a basket of other currencies, jumped 0.7 percent on Monday to 97.58, a 17-month high. As the dollar rose, the Dow Jones Industrial Average lost 602 points to 25,387, and the S&P 500 was down nearly 2 percent to 2,726.

The dollar’s strength Monday was largely attributed to weakness in the British pound and euro because of negative Brexit news and concerns about Italy’s budget. But the dollar has also been rising on trade war concerns, rising U.S. interest rates and weaker growth rates outside the U.S.

“It could be a challenge for the stock market in the fact that about 40 percent of the S&P 500 earnings are generated from outside the United States,” said Michael Arone, chief investment strategist at State Street Global Advisors. “As the dollar strengthens, that has certainly created risk to those earnings. Another thing that could be a risk is, as the global economy has been slowing this year, the rising dollar poses a problem for many countries outside the U.S., and that has contributed to the slowdown in growth. The question is whether the U.S. economy can withstand a slowdown in global growth, and I don’t think it can in the long run.”

Marc Chandler, chief market strategist at Bannockburn Global Forex, said the dollar in recent sessions has been getting a boost from the Fed. After last week’s meeting, the Fed’s statement indicated a rate hike is coming in December and several more could be in store for next year.

“Broadly, the dollar is at its best levels of the year,” said Chandler. “We just got done with earnings season, and many people are afraid earnings peaked, and the stronger dollar just adds to that.”

Peter Boockvar, chief investment officer at Bleakley Advisory Group, said margins appear to have peaked at a record 10 percent level for the S&P 500 in the third quarter. Third quarter profits were 28 percent higher for the S&P 500, according to Thomson Reuters. Fourth quarter profits are expected to grow about 18 percent.

Boockvar said the decline in Apple after a key supplier reported slower orders was one catalyst for Monday’s decline in stocks. The market was also still reacting to Friday comments from White House trade advisor Peter Navarro, who said any trade deal will be on President Donald Trump’s terms.

But the dollar was also a factor since it plays into a theme of peaking earnings that the market has been worried about.

“It’s another clip to earnings,” said Boockvar, adding the market was already anxious about higher interest rates. “You’ve had low wages. That’s reversing. Now you get clipped via higher costs from tariffs, higher transportation costs, and you throw in the stronger dollar. You can make a strong argument that the third quarter was the peak for profit margins.”

Boockvar said corporate profit margins peaked at lower levels in the last cycles. They topped out at a high of 9.5 percent in the mid-2000s, and at 7.75 percent in the early 2000s, he said.

“[The dollar] was certainly a factor all through the third-quarter earnings for multinationals. We hear as an excuse that it was the stronger dollar, and the dollar is still below where it was in 2016, even with all these rate hikes,” said Boockvar. “I’m not going to believe the dollar is going to run away, but it is a likely factor here.” Among the companies complaining about dollar headwinds last quarter were Apple and FANG names like Alphabet, he said.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: patti domm, osman orsal
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Gold edges down as Fed’s interest rate view strengthens dollar

Gold prices inched lower on Friday as the dollar firmed after the U.S. Federal Reserve kept interest rates steady with a fourth hike for this year expected next month. Prices fell to their lowest in a week at $1,219.59 in the previous session. Gold was down about 0.9 percent for the week and on track to post its biggest weekly fall since August. The Fed’s statement on Thursday overall reflected little change in its outlook for the economy since its last policy meeting in September. Inflation rem


Gold prices inched lower on Friday as the dollar firmed after the U.S. Federal Reserve kept interest rates steady with a fourth hike for this year expected next month. Prices fell to their lowest in a week at $1,219.59 in the previous session. Gold was down about 0.9 percent for the week and on track to post its biggest weekly fall since August. The Fed’s statement on Thursday overall reflected little change in its outlook for the economy since its last policy meeting in September. Inflation rem
Gold edges down as Fed’s interest rate view strengthens dollar Cached Page below :
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Gold edges down as Fed's interest rate view strengthens dollar

Gold prices inched lower on Friday as the dollar firmed after the U.S. Federal Reserve kept interest rates steady with a fourth hike for this year expected next month.

Spot gold was down 0.1 percent at $1,221.78 per ounce at 0124 GMT. Prices fell to their lowest in a week at $1,219.59 in the previous session.

Gold was down about 0.9 percent for the week and on track to post its biggest weekly fall since August.

U.S. gold futures was down 0.2 percent to $1,223 per ounce.

Asian stocks dipped on Friday as Wall Street took a breather after the Fed kept intact its plans to continue raising interest rates at a gradual pace, while the dollar gained against its major peers.

The Fed’s statement on Thursday overall reflected little change in its outlook for the economy since its last policy meeting in September. Inflation remained near its 2 percent target, unemployment fell, and risks to the economic outlook were still felt to be “roughly balanced.”

China wants to resolve problems with the United States through talks but it must respect China’s choice of development path and interests, President Xi Jinping said on Thursday ahead of a meeting with the U.S. leader in Argentina.

China reported much stronger-than-expected exports for October as shippers rushed goods to the U.S., its biggest trading partner, racing to beat higher tariff rates due to kick in at the start of next year.

Canada is pushing back against U.S. attempts to change the text of their September trade pact and the issue may have to be referred to ministers to settle, a Canadian source with direct knowledge of the matter said on Thursday.

The euro zone economy will continue expanding but risks ranging from trade tensions to high asset prices are growing, European Central Bank President Mario Draghi told Irish lawmakers on Thursday.

South Africa’s total mining output fell 1.8 percent year-on-year in September compared with the consensus figure which forecast it rising 0.30 percent, Statistics South Africa said on Thursday.


Company: cnbc, Activity: cnbc, Date: 2018-11-09
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Dollar firmer as Fed maintains hawkish guidance, yen near five-week low

The yen, as a result, remains near a five-week low against the dollar. While the Fed is on track to raise interest rates, the BOJ is expected to keep its ultra loose monetary policy due to low growth and inflation. The widening interest rate differential between U.S. and Japanese bonds has made the dollar a more attractive bet than the yen, which is often a funding currency for carry trades. The Australian dollar gained 0.1 percent to trade at $0.7262. The Aussie dollar has rallied more than 3.3


The yen, as a result, remains near a five-week low against the dollar. While the Fed is on track to raise interest rates, the BOJ is expected to keep its ultra loose monetary policy due to low growth and inflation. The widening interest rate differential between U.S. and Japanese bonds has made the dollar a more attractive bet than the yen, which is often a funding currency for carry trades. The Australian dollar gained 0.1 percent to trade at $0.7262. The Aussie dollar has rallied more than 3.3
Dollar firmer as Fed maintains hawkish guidance, yen near five-week low Cached Page below :
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Dollar firmer as Fed maintains hawkish guidance, yen near five-week low

The dollar gained against its major peers on Friday as the U.S. Federal Reserve kept interest rates steady but reaffirmed its monetary tightening stance, setting the stage for a rate hike in December.

Broader risk appetite took a step back in global trade, following this week’s strong Wall Street relief rally after the U.S. midterm elections produced no major political surprises for investors.

In foreign exchange markets, investor focus is now shifting back to the divergence between the monetary policies of the United States and other major economies, such a Japan where interest rates are seen staying extremely low. The yen, as a result, remains near a five-week low against the dollar.

The dollar index, a gauge of its performance against six major peers traded at 96.63 on Friday, after clocking a gain of 0.66 percent on Thursday.

“The Fed looks set to raise (rates) in December. They have been largely unfazed by the equity market correction in October,” said Ray Attrill, head of currency strategy at NAB.

Attrill added that the dollar strength also follows a weak euro and a jittery sterling over the last few trading sessions.

The Fed has raised its key policy rate three times this year, and the market expects another rate hike in December on the back of a robust U.S. economy, rising inflation and solid jobs growth.

According to the CME group’s FedWatch tool, the likelihood of the Fed raising rates by another 25 basis points in December is 75 percent.

The dollar has gained 2.4 percent versus the yen over the last 10 trading sessions due to the diverging monetary policies of the Fed and the Bank of Japan.

While the Fed is on track to raise interest rates, the BOJ is expected to keep its ultra loose monetary policy due to low growth and inflation.

The widening interest rate differential between U.S. and Japanese bonds has made the dollar a more attractive bet than the yen, which is often a funding currency for carry trades.

Meanwhile, the euro traded at $1.1366 on Friday, relatively unchanged in early Asian trade. The single currency fell 0.54 percent on Thursday as traders reacted to negative news out of Europe.

The European Commission forecast on Thursday that the Italian economy would grow more slowly in the next two years than Rome thinks, making government budget deficits much higher than assumed by Italy.

The standoff between the EU and Rome over Italy’s budget deficit and concerns over Europe’s slowing economic growth have dragged the euro which has fallen 4.2 percent versus the dollar over the last six months.

The British pound changed hands at $1.3062 on Friday, trading marginally higher versus the dollar. The sterling has gained 2.3 percent against the dollar in November.

The pound has benefited from growing investors expectations that Britain is close to reaching a deal with the European Union less than five months before it is due to exit the bloc.

The Australian dollar gained 0.1 percent to trade at $0.7262. The Aussie dollar has rallied more than 3.3 percent since it hit a more than a two-year low of $70.18 on Oct. 26.


Company: cnbc, Activity: cnbc, Date: 2018-11-09
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Gold inches lower on firmer dollar; investors await Fed rate call

Higher U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion. But for now, we think the Fed will continue with the monetary policy tightening,” said Benjamin Lu, a commodities analyst with Phillip Futures. Spot gold was down 0.2 percent at $1,223.70 per ounce, as of 0410 GMT, while U.S. gold futures fell 0.3 percent to $1,224.7 per ounce. Palladium fell 0.3 percent to $1,130.60 per ounce, after touching a two-week high of $1,139.50


Higher U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion. But for now, we think the Fed will continue with the monetary policy tightening,” said Benjamin Lu, a commodities analyst with Phillip Futures. Spot gold was down 0.2 percent at $1,223.70 per ounce, as of 0410 GMT, while U.S. gold futures fell 0.3 percent to $1,224.7 per ounce. Palladium fell 0.3 percent to $1,130.60 per ounce, after touching a two-week high of $1,139.50
Gold inches lower on firmer dollar; investors await Fed rate call Cached Page below :
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Gold inches lower on firmer dollar; investors await Fed rate call

Gold prices inched lower on Thursday on the back of a stronger dollar as investors digested the U.S. midterm election results and turned their focus to the Federal Reserve’s monetary policy decision due later in the day.

The Fed is not expected to raise interest rates until its next gathering in December, however market participants are waiting to see whether it offers clues about possible rate increases in December and in 2019.

Higher U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion.

“Gold has found support around $1,223. If we see good news from the Fed, we may see a bounce. But for now, we think the Fed will continue with the monetary policy tightening,” said Benjamin Lu, a commodities analyst with Phillip Futures.

Spot gold was down 0.2 percent at $1,223.70 per ounce, as of 0410 GMT, while U.S. gold futures fell 0.3 percent to $1,224.7 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, traded in a narrow range and was last up 0.2 percent, having touched a more than two-week low in the previous session.

“I suspect gold will ping pong along with the U.S. dollar as traders begin to re-evaluate the current state of the USD,” Stephen Innes, APAC trading head at OANDA in Singapore, said in a note.

Meanwhile, Asian stocks rose to a one-month peak following a post-election rally on Wall Street.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.19 percent to 755.23 tonnes on Wednesday, marking the fourth straight session on declines.

Spot gold still targets $1,211, said Reuters technical analyst Wang Tao.

In other precious metals, silver was down 0.2 percent at $14.54 per ounce.

Palladium fell 0.3 percent to $1,130.60 per ounce, after touching a two-week high of $1,139.50 an ounce in the previous session.

Platinum was 0.7 percent lower at $866.85 an ounce, after hitting its highest since June 25 at $877.50 an ounce on Wednesday.


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Dollar range-bound as investors await Fed rate decision; yen trades with weak bias

The dollar traded in a narrow range on Thursday as markets settled after U.S. midterm election results came in as expected, leaving investors free to focus on a Federal Reserve’s policy decision later in the global day. “The dollar is likely to benefit as we still expect the Fed to maintain its hawkish stance. The dollar strengthened 0.14 versus the yen to trade at 113.66 on Wednesday. The euro traded at $1.1429 on Thursday. The New Zealand dollar traded flat at $0.6776, with little reaction to


The dollar traded in a narrow range on Thursday as markets settled after U.S. midterm election results came in as expected, leaving investors free to focus on a Federal Reserve’s policy decision later in the global day. “The dollar is likely to benefit as we still expect the Fed to maintain its hawkish stance. The dollar strengthened 0.14 versus the yen to trade at 113.66 on Wednesday. The euro traded at $1.1429 on Thursday. The New Zealand dollar traded flat at $0.6776, with little reaction to
Dollar range-bound as investors await Fed rate decision; yen trades with weak bias Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08
Keywords: news, cnbc, companies, dollar, euro, traded, rates, bias, currency, versus, fed, decision, weak, bank, trades, rangebound, rate, investors, yen, trade


Dollar range-bound as investors await Fed rate decision; yen trades with weak bias

The dollar traded in a narrow range on Thursday as markets settled after U.S. midterm election results came in as expected, leaving investors free to focus on a Federal Reserve’s policy decision later in the global day.

The central bank’s Federal Open Market Committee (FOMC) is expected to maintain the hawkish language seen in recent policy statements, while keeping interest rates unchanged this time.

The Fed has raised rates three times this year as the U.S. economy boomed and inflation started to pick up, and it has signaled a rate rise in December, with two more hikes by mid-2019.

“The dollar is likely to benefit as we still expect the Fed to maintain its hawkish stance. The U.S. economy needs rising rates as wage pressures are building and there is a risk of an overheating of the economy,” said Sim Moh Siong, currency strategist at Bank of Singapore.

The prospect of further Fed tightening helped the dollar recover against the euro and yen, having lost ground after the mid-term elections resulted in a split Congress, with Democrats winning control of the House of Representatives and Republicans cementing their majority in the Senate.

Expectations that the Washington will descend into gridlock has reduced President Donald Trump’s chances of pushing through a fiscal stimulus package.

The dollar index, a gauge of its value versus six major peers traded at 96.22 on Thursday, gaining 0.23 percent.

The dollar strengthened 0.14 versus the yen to trade at 113.66 on Wednesday. The dollar has gained around 1.9 percent over the Japanese currency over the last nine trading sessions due to the diverging monetary policies of the U.S. Fed and the Bank of Japan (BoJ).

While the Fed is on track to raise interest rates the Bank of Japan will press on with ultra loose monetary policy because of low growth and inflation.

The widening interest rate differential between U.S. and Japanese bonds has made the dollar a more attractive bet than the yen, which is often a funding currency for carry trades.

The euro traded at $1.1429 on Thursday. The single currency had touched an intra-day high of $1.15 on Wednesday, due to dollar weakness rather than any substantial improvement in the euro zone’s economic fundamentals.

The standoff between the EU and Rome over Italy’s budget deficit and concerns over Europe’s slowing economic growth have handicapped the euro, which has lost 4 percent versus the dollar over the last six months.

Elsewhere in the currency market, the pound traded flat at $1.3124 in early Asian trade after gaining 3.36 percent versus the dollar in the last six trading sessions, as traders bet a Brexit agreement was close.

The New Zealand dollar traded flat at $0.6776, with little reaction to its central bank keeping rates on hold at 1.75 percent on Thursday.

The Australian dollar built on its gains of the previous three trading sessions versus the greenback to trade at $0.7283, to gain 0.1 percent versus. The Aussie was cheered by stronger than expected trade data out of China, its largest trade partner.


Company: cnbc, Activity: cnbc, Date: 2018-11-08
Keywords: news, cnbc, companies, dollar, euro, traded, rates, bias, currency, versus, fed, decision, weak, bank, trades, rangebound, rate, investors, yen, trade


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Asia trades mostly higher as US midterm election results filter in

Asia markets turned mostly positive Wednesday morning as results filtered in from the much-anticipated midterm elections in the U.S., which could potentially have significant implications. In Hong Kong, the Hang Seng index traded fractionally higher. Some analysts said that markets were in a “holding pattern” ahead of the U.S. mid-term election results. “The impact on Asia markets arising from the US mid-term elections is not clear cut,” DBS analysts wrote in a morning note. The trading session


Asia markets turned mostly positive Wednesday morning as results filtered in from the much-anticipated midterm elections in the U.S., which could potentially have significant implications. In Hong Kong, the Hang Seng index traded fractionally higher. Some analysts said that markets were in a “holding pattern” ahead of the U.S. mid-term election results. “The impact on Asia markets arising from the US mid-term elections is not clear cut,” DBS analysts wrote in a morning note. The trading session
Asia trades mostly higher as US midterm election results filter in Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, higher, results, traded, index, midterm, election, trades, morning, asia, filter, dollar, major, markets, potentially


Asia trades mostly higher as US midterm election results filter in

Asia markets turned mostly positive Wednesday morning as results filtered in from the much-anticipated midterm elections in the U.S., which could potentially have significant implications.

Japan’s Nikkei 225 gained 1.15 percent while the Topix index added 1.06 percent. In South Korea, the Kospi traded up 0.65 percent, reversing early losses. Australia’s ASX 200 rose 0.25 percent, as major banking stocks in the country traded up.

In Hong Kong, the Hang Seng index traded fractionally higher. The Shanghai composite traded near flat while the Shenzhen composite added 0.33 percent.

Some analysts said that markets were in a “holding pattern” ahead of the U.S. mid-term election results.

“The impact on Asia markets arising from the US mid-term elections is not clear cut,” DBS analysts wrote in a morning note. “It might be better to focus on domestic fundamentals, valuation and cues from the (dollar) to gauge flows.”

See the key election races that markets are watching as early indicators.

The results hold massive stakes for future U.S. economic policy — and potentially President Donald Trump’s political fate.

The view of major firms like Bank of America Merrill Lynch, Goldman Sachs and Morgan Stanley is for a mixed outcome, with Democrats gaining control of the House and Republicans holding or even adding to their majority in the Senate. The market reaction to that scenario could be muted, but not so if there’s an upset, with either party staging a surprise victory and gaining total control of Congress.

The trading session in Asia comes after a higher close on Wall Street, where all three major indices advanced.

In the currency market, the dollar index, which measures the greenback against a basket of its peers, traded at 96.314 Wednesday morning during Asian hours. The index slipped from levels above 96.800 it reached last week.

The Japanese yen traded at 113.69 to the dollar while the Australian dollar fetched $0.7217.

Oil prices fell during Asian hours after declining overnight as the U.S. granted top buyers of Iranian oil sanction waivers.

U.S. crude was down 0.56 percent at $61.86 a barrel while global benchmark Brent declined 0.25 percent to $71.95.

— Reuters and CNBC’s Patti Domm contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, higher, results, traded, index, midterm, election, trades, morning, asia, filter, dollar, major, markets, potentially


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Gold gains on weaker dollar; US election in focus

Spot gold was up 0.2 percent at $1,228.40 per ounce at 0118 GMT. U.S. gold futures climbed 0.3 percent to $1,229.7 per ounce. The U.S. Federal Reserve’s Federal Open Market Committee will start its two-day meeting on interest rates on Wednesday. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.08 percent to 756.70 tonnes on Tuesday from 757.29 tonnes on Monday. China’s gold output in the first three quarters of 2018 fell 7.46 percent from a year ear


Spot gold was up 0.2 percent at $1,228.40 per ounce at 0118 GMT. U.S. gold futures climbed 0.3 percent to $1,229.7 per ounce. The U.S. Federal Reserve’s Federal Open Market Committee will start its two-day meeting on interest rates on Wednesday. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.08 percent to 756.70 tonnes on Tuesday from 757.29 tonnes on Monday. China’s gold output in the first three quarters of 2018 fell 7.46 percent from a year ear
Gold gains on weaker dollar; US election in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: leonhard foeger
Keywords: news, cnbc, companies, need, gain, gold, weaker, dollar, gains, tonnes, futures, traders, election, seats, rates, political, focus, trade


Gold gains on weaker dollar; US election in focus

Spot gold was up 0.2 percent at $1,228.40 per ounce at 0118 GMT.

U.S. gold futures climbed 0.3 percent to $1,229.7 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.3 percent, as traders awaited the U.S. election results for implications on Washington’s broader economic and political agenda.

Wall Street stock futures ticked down slightly while Asian shares held very tight ranges early on Wednesday.

The Democrats are favored by election forecasters to pick up the 23 seats they need to gain a majority in the House, but opinion polls show they have slimmer hopes of picking up the two seats they need to gain control of the Senate.

The U.S. Federal Reserve’s Federal Open Market Committee will start its two-day meeting on interest rates on Wednesday. Fed policymakers are not expected to raise key rates, but traders are waiting to see whether they offer clues about possible rate increases in December and in 2019.

The United States and China will hold a delayed top-level security dialogue on Friday, the latest sign of a thaw in relations, as China’s vice president said Beijing was willing to talk with Washington to resolve their bitter trade dispute.

The European Commission could impose sanctions on Italy as a last resort if they cannot reach an agreement over Rome’s rule-breaking budget, but Brussels wants to avoid that option, the EU’s economics commissioner said on Tuesday.

Euro zone business growth slumped to a two-year low in October as growing trade tensions and tariffs, alongside rising political uncertainty, put a dent in exports and optimism, a survey showed on Tuesday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.08 percent to 756.70 tonnes on Tuesday from 757.29 tonnes on Monday.

Gold-backed exchange-traded funds (ETFs) registered increased inflows to both North American and European funds during October, as tumultuous equity markets triggered flight-to-quality buying, the World Gold Council said on Tuesday.

China’s gold output in the first three quarters of 2018 fell 7.46 percent from a year earlier to 289.75 tonnes, the China Gold Association said on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: leonhard foeger
Keywords: news, cnbc, companies, need, gain, gold, weaker, dollar, gains, tonnes, futures, traders, election, seats, rates, political, focus, trade


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