The US dollar just hit a two-year high and is threatening to make another major milestone

The dollar hit a two-year high on Tuesday as slowing global growth and more aggressive monetary easing overseas sent investors into the reserve currency. The U.S. Dollar index rose to 99.37, its highest level since May 2017, when it hit 99.696. The index, which measures the greenback against a basket of other currencies, is teetering near the 100 level, which it hasn’t hit since April 2017. Although more than $15 trillion of government bonds are trading at negative yields around the world, U.S.


The dollar hit a two-year high on Tuesday as slowing global growth and more aggressive monetary easing overseas sent investors into the reserve currency. The U.S. Dollar index rose to 99.37, its highest level since May 2017, when it hit 99.696. The index, which measures the greenback against a basket of other currencies, is teetering near the 100 level, which it hasn’t hit since April 2017. Although more than $15 trillion of government bonds are trading at negative yields around the world, U.S.
The US dollar just hit a two-year high and is threatening to make another major milestone Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, easing, high, growth, dollar, fed, slowing, twoyear, rates, threatening, major, global, reserve, hit, milestone, world


The US dollar just hit a two-year high and is threatening to make another major milestone

The dollar hit a two-year high on Tuesday as slowing global growth and more aggressive monetary easing overseas sent investors into the reserve currency.

The U.S. Dollar index rose to 99.37, its highest level since May 2017, when it hit 99.696. The index, which measures the greenback against a basket of other currencies, is teetering near the 100 level, which it hasn’t hit since April 2017.

“Going forward, the dollar will have a hard time declining unless the Fed gets aggressively dovish, simply because global growth remains lackluster and global central banks are easing policy or are about to ease policy,” said Tom Essaye, founder of the Sevens Report.

Although more than $15 trillion of government bonds are trading at negative yields around the world, U.S. bonds are still in positive territory. Growth is slowing at a much faster rate abroad and global central banks are easing at unprecedented levels. Although the Federal Reserve cut interest rates in July for the first time since the financial crisis, the U.S. economy is strong compared with the rest of the world. And it’s unclear whether the Fed will keep cutting rates regularly. Fed policymakers meet in two weeks.


Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, easing, high, growth, dollar, fed, slowing, twoyear, rates, threatening, major, global, reserve, hit, milestone, world


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Another Asian central bank cuts interest rates — analysts say the region’s not done easing yet

Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall. Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing. A lower


Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall. Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing. A lower
Another Asian central bank cuts interest rates — analysts say the region’s not done easing yet Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: yen nee lee
Keywords: news, cnbc, companies, central, inflation, regions, monetary, global, easing, growth, rates, policy, rate, economy, say, indonesias, analysts, bank, interest, asian, cuts


Another Asian central bank cuts interest rates — analysts say the region's not done easing yet

Indonesia’s surprise interest rate cut is the latest in a wave of monetary policy easing in Asia, and analysts say central banks in the region have to ease monetary policy further as growth threatens to stall.

Bank Indonesia on Thursday cut its key policy rate by 25 basis points to 5.5% to support growth amid an increasingly fragile global economy. A total of 17 out of 19 economists polled by Reuters had expected the central bank to keep policy steady in August after last month’s easing.

Perry Warjiyo, Indonesia’s central bank governor, told CNBC on Friday there’s room to cut interest rates this time because inflation for the year is expected to remain within its target range of 2.5% to 4.5%. That will help Indonesia to maintain its growth momentum at a time when the ongoing tariff fight between the U.S. and China has held back global economic activity, he explained.

A lower interest rate environment generally encourages businesses and consumers to spend more, which boost the economy but could cause inflation to rise. Prices rising too much and too quickly are harmful for the economy, so central banks typically adjust monetary policies to keep inflation in check.

“This is a preemptive move to support our growth momentum and to anticipate the possibility of downward risks on the global economic outlook going forward,” Warjiyo told CNBC’s “Street Signs.”

The central bank expects Indonesia’s economy to grow between 5% and 5.4% this year. Last year, the country — Southeast Asia’s largest economy — grew by 5.17%.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: yen nee lee
Keywords: news, cnbc, companies, central, inflation, regions, monetary, global, easing, growth, rates, policy, rate, economy, say, indonesias, analysts, bank, interest, asian, cuts


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Fed says July rate cut was ‘recalibration’ and not part of ‘pre-set course’ for more easing

Federal Reserve officials who voted to lower interest rates three weeks ago agreed that the move shouldn’t be viewed as an indication that there is a “pre-set course” for future cuts, according to meeting minutes released Wednesday. Markets have been pricing in a series of rate cuts, so Powell’s use of the term spread concern that the Fed might not be as accommodative with policy as anticipated. Ultimately, the Federal Open Market Committee, which sets monetary policy, voted to lower the central


Federal Reserve officials who voted to lower interest rates three weeks ago agreed that the move shouldn’t be viewed as an indication that there is a “pre-set course” for future cuts, according to meeting minutes released Wednesday. Markets have been pricing in a series of rate cuts, so Powell’s use of the term spread concern that the Fed might not be as accommodative with policy as anticipated. Ultimately, the Federal Open Market Committee, which sets monetary policy, voted to lower the central
Fed says July rate cut was ‘recalibration’ and not part of ‘pre-set course’ for more easing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: jeff cox
Keywords: news, cnbc, companies, voted, policy, recalibration, federal, outlook, market, viewed, fed, preset, course, minutes, easing, meeting, cut, rate, participants


Fed says July rate cut was 'recalibration' and not part of 'pre-set course' for more easing

Federal Reserve officials who voted to lower interest rates three weeks ago agreed that the move shouldn’t be viewed as an indication that there is a “pre-set course” for future cuts, according to meeting minutes released Wednesday. The summary indicated that policymakers viewed the move as a “mid-cycle adjustment,” an expression Chairman Jerome Powell used in a news conference afterward that was seen as contributing to a stock market sell-off after the July 30-31 meeting. Markets have been pricing in a series of rate cuts, so Powell’s use of the term spread concern that the Fed might not be as accommodative with policy as anticipated. Ultimately, the Federal Open Market Committee, which sets monetary policy, voted to lower the central bank’s benchmark rate by 25 basis points to a target range of 2% to 2.5%. It was the first rate cut in 11 years, dating to the financial crisis. However, members did not commit to future cuts.

Recalibration

“In their discussion of the outlook for monetary policy beyond this meeting, participants generally favored an approach in which policy would be guided by incoming information and its implications for the economic outlook and that avoided any appearance of following a pre-set course,” the minutes stated. The document went on to say that “most participants” saw the quarter-point cut “as part of a recalibration of the stance of policy, or mid-cycle adjustment” in response to changing conditions. “A number of participants suggested that the nature of many of the risks they judged to be weighing on the economy, and the absence of clarity regarding when those risks might be resolved, highlighted the need for policymakers to remain flexible and focused on the implications of incoming data for the outlook,” the minutes said.

US Federal Reserve Chairman Jerome Powell speaks during a press conference after a Federal Open Market Committee meeting in Washington, DC on July 31, 2019. Andrew Caballero-Reynolds | AFP | Getty Images


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: jeff cox
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Oil soars 4% on easing US-China trade tensions

Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months. “The U.S.-China trade war has caused energy demand growth to take a big hit. The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks. OPEC and its allies, known as OPEC+, hav


Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months. “The U.S.-China trade war has caused energy demand growth to take a big hit. The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks. OPEC and its allies, known as OPEC+, hav
Oil soars 4% on easing US-China trade tensions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-13
Keywords: news, cnbc, companies, states, prices, united, oil, soars, opec, chinese, uschina, trade, easing, million, tensions, bpd, energy, futures


Oil soars 4% on easing US-China trade tensions

Oil prices rose almost 5% on Tuesday after the United States said it would delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummeled the market in recent months.

The Chinese products include laptops and cellphones. The tariffs had been scheduled to start next month.

“The U.S.-China trade war has caused energy demand growth to take a big hit. Any glimmer of hope revives the prospects for a more positive demand landscape,” said John Kilduff, partner at energy hedge fund Again Capital Management in New York.

Brent futures were up 4.5%, at $61.20 a barrel, while U.S. West Texas Intermediate (WTI) crude was up 4%, at $57.10.

That put Brent futures on track for their biggest daily percentage gain since December.

The Chinese Ministry of Commerce said in a statement on Tuesday that U.S. and Chinese trade officials spoke on the phone and agreed to talk again within two weeks.

“The possibility that the United States and China can get the trade talks on track … is raising hopes that they might actually get some type of deal,” said Phil Flynn, analyst at Price Futures Group in Chicago.

“That’s why we are seeing this big rebound in prices,” Flynn said.

Before the U.S. announcement about the tariff delay, Brent futures were still trading about 20% below the 2019 high they hit in April.

Oil prices seesawed earlier in the day, caught between demand worries and rising global supplies and expectations for deeper production cuts from leading producers.

U.S. oil output from seven major shale formations was expected to rise by 85,000 barrels per day (bpd) in September to a record 8.77 million bpd, the Energy Information Administration forecast in a report.

Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), last week said it planned to keep its crude exports below 7 million bpd in August and September to help drain global oil inventories.

“Saudi Arabia and its Gulf allies standing firm on their commitment to the OPEC+ output-cut agreement has supported prices,” said Abhishek Kumar, head of analytics at Interfax Energy in London.

OPEC and its allies, known as OPEC+, have agreed to cut 1.2 million bpd of production since Jan. 1.

In the United States, meanwhile, analysts forecast crude stockpiles fell by 2.8 million barrels last week, according to a Reuters poll.

“If we get the drawdown in (U.S.) inventory that most people are looking for, that is going to get the market a lot tighter,” said Flynn at Price Futures.

The American Petroleum Institute (API), an industry group, was due to release its inventory report at 4:30 p.m. EDT (2030 GMT) on Tuesday, followed by U.S. government data on Wednesday morning.


Company: cnbc, Activity: cnbc, Date: 2019-08-13
Keywords: news, cnbc, companies, states, prices, united, oil, soars, opec, chinese, uschina, trade, easing, million, tensions, bpd, energy, futures


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Treasury yields rise after Fed dampens hopes of more rate cuts

“What I said was it’s not the beginning of a long series of rate cuts. The 2-year Treasury note yield, more representative of changes to Fed policy, held higher at 1.896%; the rate peaked around 1.96% on Wednesday. “He clarified that this wasn’t the beginning of a long easing cycle and that threw some reality into the market.” Going forward, “I think they’re also going to be cognizant of global trade tensions, which was sort of the ignition of market’s expectations of rate cuts,” Pollack added.


“What I said was it’s not the beginning of a long series of rate cuts. The 2-year Treasury note yield, more representative of changes to Fed policy, held higher at 1.896%; the rate peaked around 1.96% on Wednesday. “He clarified that this wasn’t the beginning of a long easing cycle and that threw some reality into the market.” Going forward, “I think they’re also going to be cognizant of global trade tensions, which was sort of the ignition of market’s expectations of rate cuts,” Pollack added.
Treasury yields rise after Fed dampens hopes of more rate cuts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: thomas franck
Keywords: news, cnbc, companies, hopes, dampens, long, fed, rise, think, yield, rate, easing, cuts, cut, higher, treasury, yields


Treasury yields rise after Fed dampens hopes of more rate cuts

U.S. government debt yields rose Thursday after Federal Reserve Chairman Jerome Powell said in the prior session that the central bank’s quarter-point cut to interest rates wasn’t necessarily the beginning of a longer cycle of easier monetary policy.

Markets whipsawed amid Powell’s comments as investors, who’d already factored in the 25-basis-point cut into their models, punished riskier assets after realizing that the Fed would not guarantee additional cuts before the end of 2019.

“We’re thinking of it essentially as a midcycle adjustment to policy,” Powell said following the release of the Fed’s decision. “What I said was it’s not the beginning of a long series of rate cuts. I didn’t say it’s just one or anything like that.”

“When you think about rate-cutting cycles, they go on for a long time and the committee’s not seeing that,” he added.

At around 7:29 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.044%, while the yield on the 30-year Treasury bond was also higher at around 2.542. The 2-year Treasury note yield, more representative of changes to Fed policy, held higher at 1.896%; the rate peaked around 1.96% on Wednesday.

Powell’s “press conference was not as smooth as I know they can be,” said Gary Pollack, head of fixed-income trading at Deutsche Bank Private Wealth Management. “He clarified that this wasn’t the beginning of a long easing cycle and that threw some reality into the market.”

Going forward, “I think they’re also going to be cognizant of global trade tensions, which was sort of the ignition of market’s expectations of rate cuts,” Pollack added. “[Trade policy’s] certainly out of their hands, but the think the Fed allowed the market to push them into these easing expectations.”

Still, the Fed’s interest rate cut was the first in more than a decade, with central bank citing “global developments” along with “muted inflation” as reasons for easing. The federal funds rate target range is now 2%–2.25%.

On the data front, the latest weekly jobless claims will be released at around 8:30 a.m. ET.

The closely-watched ISM manufacturing index for July, manufacturing Purchasing Managers’ Index (PMI) data for July, construction spending figures for June and the latest reading of light vehicle sales will follow later in the session.


Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: thomas franck
Keywords: news, cnbc, companies, hopes, dampens, long, fed, rise, think, yield, rate, easing, cuts, cut, higher, treasury, yields


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Trump’s Treasury could cause financial market conditions to tighten even with Fed cut

U.S. Treasury Secretary Steven Mnuchin talks to reporters about cryptocurrency in the Brady Press Briefing Room at the White House July 15, 2019 in Washington, DC. On Monday, the Treasury Department announced an aggressive plan to build up its cash balances. The Treasury is slated to borrow an additional $433 billion during the quarter that runs from July to September, with a stated ending balance of $350 billion. In comparison, the Treasury borrowed just $40 billion from April to June. The larg


U.S. Treasury Secretary Steven Mnuchin talks to reporters about cryptocurrency in the Brady Press Briefing Room at the White House July 15, 2019 in Washington, DC. On Monday, the Treasury Department announced an aggressive plan to build up its cash balances. The Treasury is slated to borrow an additional $433 billion during the quarter that runs from July to September, with a stated ending balance of $350 billion. In comparison, the Treasury borrowed just $40 billion from April to June. The larg
Trump’s Treasury could cause financial market conditions to tighten even with Fed cut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: jesse pound, thomas franck
Keywords: news, cnbc, companies, monetary, trumps, cut, cash, conditions, financial, debt, cryptocurrency, mnuchin, department, fed, cause, market, easing, treasury, tighten, driving


Trump's Treasury could cause financial market conditions to tighten even with Fed cut

U.S. Treasury Secretary Steven Mnuchin talks to reporters about cryptocurrency in the Brady Press Briefing Room at the White House July 15, 2019 in Washington, DC. Mnuchin said the Treasury is very concerned about Facebook’s Libra cryptocurrency and that he wants the government to “make sure that the U.S. financial system is protected from fraud.”

The Federal Reserve took steps toward easing monetary policy on Wednesday, but the Treasury Department, no longer constrained by the debt ceiling, is poised to perhaps tighten financial conditions through its upcoming funding actions.

On Monday, the Treasury Department announced an aggressive plan to build up its cash balances. The Treasury is slated to borrow an additional $433 billion during the quarter that runs from July to September, with a stated ending balance of $350 billion.

In comparison, the Treasury borrowed just $40 billion from April to June.

The large increase in debt issuance has the potential to partially offset the monetary easing just announced by the Fed. As the Treasury floods the market with new debt to rebuild its cash reserves, the new supply could have the effect of driving down prices and driving up yields of Treasurys and other market-determined interest rates.


Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: jesse pound, thomas franck
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European markets close lower after Draghi’s mixed message on stimulus

European stocks fluctuated Thursday afternoon but ended lower after the European Central Bank ECB kept interest rates on hold but signaled that more monetary easing could be on the horizon. The pan-European Stoxx 600 clkosed provisionally down by 0.5% during trade, with most sectors and major bourses in negative territory. However, ECB President Mario Draghi gave a more mixed message in a subsequent press conference, suggesting that some members of the central bank weren’t convinced on certain a


European stocks fluctuated Thursday afternoon but ended lower after the European Central Bank ECB kept interest rates on hold but signaled that more monetary easing could be on the horizon. The pan-European Stoxx 600 clkosed provisionally down by 0.5% during trade, with most sectors and major bourses in negative territory. However, ECB President Mario Draghi gave a more mixed message in a subsequent press conference, suggesting that some members of the central bank weren’t convinced on certain a
European markets close lower after Draghi’s mixed message on stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: chloe taylor sam meredith, chloe taylor, sam meredith
Keywords: news, cnbc, companies, stimulus, different, ecb, message, markets, easing, central, draghis, lower, mixed, close, told, european, members, bank, low


European markets close lower after Draghi's mixed message on stimulus

European stocks fluctuated Thursday afternoon but ended lower after the European Central Bank ECB kept interest rates on hold but signaled that more monetary easing could be on the horizon.

The pan-European Stoxx 600 clkosed provisionally down by 0.5% during trade, with most sectors and major bourses in negative territory.

The ECB prepared markets for more easing measures on Thursday, causing the euro to briefly fall to a two-year low against the dollar, also sending shares higher. However, ECB President Mario Draghi gave a more mixed message in a subsequent press conference, suggesting that some members of the central bank weren’t convinced on certain aspects of a possible stimulus package.

He told CNBC’s Annette Weisbach that all ECB members agreed that further stimulus was needed, but there were differences regarding the various elements of any program. “We had a broad discussion,” he said, “Whenever we have a package so complex as this, you’d expect that people have different nuances about the different parts of the package.”

Draghi also told reporters Thursday that the risk of a recession in the region was low.


Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: chloe taylor sam meredith, chloe taylor, sam meredith
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Gloomy data sends euro to 2-month low ahead of ECB meeting

Money markets are pricing in a 54% chance of a 10 basis point cut on Thursday’s ECB meeting. The ECB could also signal further reductions down the road or a fresh round of quantitative easing (QE), investors said. The euro hit a two-year low of $1.1105 in May. Markets betting on ECB easing have lifted the Swiss franc , which traded at 1.0980 francs per euro, not far from the two-year high of 1.0972 reached on Tuesday. Sterling was last up 0.44% at $1.2491, not far from the 27-month low of $1.238


Money markets are pricing in a 54% chance of a 10 basis point cut on Thursday’s ECB meeting. The ECB could also signal further reductions down the road or a fresh round of quantitative easing (QE), investors said. The euro hit a two-year low of $1.1105 in May. Markets betting on ECB easing have lifted the Swiss franc , which traded at 1.0980 francs per euro, not far from the two-year high of 1.0972 reached on Tuesday. Sterling was last up 0.44% at $1.2491, not far from the 27-month low of $1.238
Gloomy data sends euro to 2-month low ahead of ECB meeting Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24
Keywords: news, cnbc, companies, fell, 2month, ecb, ahead, sends, easing, meeting, data, low, currencies, dollar, hit, twoyear, swiss, gloomy, euro


Gloomy data sends euro to 2-month low ahead of ECB meeting

The euro fell to a two-month low against the dollar on Wednesday, hit by weak economic data and speculation that the European Central Bank may open the door to aggressive monetary policy easing as soon as this week.

Money markets are pricing in a 54% chance of a 10 basis point cut on Thursday’s ECB meeting.

The probability rose after the eurozone purchasing managers’ index unexpectedly fell to a three-month low of 51.5 in July from 52.2 in June. Economists polled by Reuters had expected a slight decline to 52.1.

The 50 mark separates economic growth from contraction.

The ECB could also signal further reductions down the road or a fresh round of quantitative easing (QE), investors said.

“Disappointing PMIs out of the euro area will only increase expectations further for (Mario) Draghi to deliver a dovish sounding message tomorrow,” said Mohammed Kazmi, a portfolio manager at UBP.

“He will be expected to strongly hint at both rate cuts and QE ahead of easing that is anticipated for September.”

The common currency was down 0.1% at $1.1137 after earlier hitting $1.1127, its lowest since May 30. The euro hit a two-year low of $1.1105 in May.

Markets betting on ECB easing have lifted the Swiss franc , which traded at 1.0980 francs per euro, not far from the two-year high of 1.0972 reached on Tuesday.

The surging franc is heaping pressure on Swiss officials to act to protect their export-heavy economy.

The euro has shed 2% of its value this month as investors priced in the probability of euro zone borrowing costs falling deeper into negative territory. A broadly stronger dollar also contributed to the single currency’s woes.

Expectations of lower interest rates in developed economies weighed on other currencies, such as the Australian dollar, which fell 0.5% to a two-week low of $0.6973.

Three consecutive days of lower iron ore prices may also be hurting currencies sensitive to commodity prices like the Aussie, analysts said.

The U.S. dollar firmed after Washington reached a deal to lift government borrowing limits, which analysts said could limit the U.S. Federal Reserve’s appetite for rate cuts.

The dollar was flat against a basket of currencies at 97.65, having edged up to a five-week high of 97.76 earlier following gains of nearly 0.5% the previous day.

The pound rose slightly from recent lows after Boris Johnson on Tuesday won the contest to be Britain’s next prime minister, focusing investor attention on the prospect of a no-deal Brexit.

Some market watchers expect sterling to fall after eurosceptic Johnson’s speech on Wednesday, when he takes over as prime minister.

“Boris Johnson is deliberately provocative… That would be enough to get people to worry,” said Helen Thomas, chief executive of macroeconomic consulting firm BlondeMoney.

Sterling was last up 0.44% at $1.2491, not far from the 27-month low of $1.2382 it hit last week.


Company: cnbc, Activity: cnbc, Date: 2019-07-24
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The Fed is leading a global push to lower rates, and Europe is getting ready to follow suit

Turkey’s central bank is also expected to meet Thursday to cut rates, and the list of central banks now easing or getting ready to ease is long. Deutsche Bank economists said they expect all the central bank easing to help keep growth positive. They expect global growth of 3.2%, and central bank policy easing should keep the expansion going and limit downside risks. He does expect the ECB to cut rates in September and ultimately take its negative 0.4% discount rate to negative 0.6%. They could e


Turkey’s central bank is also expected to meet Thursday to cut rates, and the list of central banks now easing or getting ready to ease is long. Deutsche Bank economists said they expect all the central bank easing to help keep growth positive. They expect global growth of 3.2%, and central bank policy easing should keep the expansion going and limit downside risks. He does expect the ECB to cut rates in September and ultimately take its negative 0.4% discount rate to negative 0.6%. They could e
The Fed is leading a global push to lower rates, and Europe is getting ready to follow suit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: patti domm
Keywords: news, cnbc, companies, global, ecb, easing, getting, ready, leading, follow, fed, push, bank, rate, cut, central, interest, rates, suit, lower


The Fed is leading a global push to lower rates, and Europe is getting ready to follow suit

Jerome Powell, chairman of the U.S. Federal Reserve, right, walks with Mario Draghi, president of the European Central Bank (ECB), during the spring meetings of the International Monetary Fund (IMF) and World Bank in Washington, D.C., U.S., on Friday, April 20, 2018. Andrew Harrer | Bloomberg | Getty Images

With global growth slowing, the world’s central banks are in a race to cut interest rates to boost their economies, and the European Central Bank is expected Thursday to weigh lowering its already-negative interest rate. The ECB could act, but strategists and economists say it’s much more likely the central bank will set the stage for an interest rate cut and other easing at its September meeting. The ECB meets ahead of the Fed’s much-anticipated vote next week, when it is expected to cut rates and begin a new cycle of interest rate reductions. “I think [the ECB] is going to lay out a framework for doing more in the way of rate cuts and quantitative easing, in keeping with what [ECB President Mario] Draghi said at the Sintra conference,” said Rick Rieder, BlackRock’s CIO of global fixed income. “They are going to do whatever it takes to try to stem some of this disappointment around inflation and growth. He raised the bar quite a bit. This is a very big meeting … Quite frankly, I think what the ECB is doing and what the other central banks are doing in cutting rates in some way forces the Fed’s hand.”

Turkey’s central bank is also expected to meet Thursday to cut rates, and the list of central banks now easing or getting ready to ease is long. It includes emerging markets like Vietnam and Brazil, as well as Australia, Russia, South Africa, South Korea, Chile and, Indonesia, among others. Deutsche Bank economists said they expect all the central bank easing to help keep growth positive. They expect global growth of 3.2%, and central bank policy easing should keep the expansion going and limit downside risks. “I think the phrase is ‘when the Fed sneezes, the world catches a cure,'” said Ethan Harris, head of global economic research at Bank of America Merrill Lynch The flurry of central banks cutting rates, even before the Federal Reserve, is somewhat unusual, Harris said. “You have this slow but steady diet of cuts all over the place. For a lot of the smaller countries, it’s much easier for them to cut when the Fed cuts because they don’t have to worry about an attack on their currency,” he said. “These are countries that have weakening economies that were hurting while the Fed was tightening and now they’re cutting ahead of the Fed. The Fed is giving them an opening.”

Fed’s actions ‘off the charts unprecedented’

The Fed kicked off a round of rate cuts when it sent a strong signal about its own policy shift, telling markets after its June meeting that it is concerned about the impact of trade wars and the slower global economy. The Fed statement after that meeting echoed earlier comments from Chairman Jerome Powell that the bank would take appropriate action to sustain the U.S. expansion. “There’s a case for easing in Europe, but it’s not pressing hard on them. What the Fed is doing now is off the charts unprecedented where they move without any hard evidence in the data, and the ECB is not in that frame of mind at all. They’re going to lag the Fed,” Harris said. He does expect the ECB to cut rates in September and ultimately take its negative 0.4% discount rate to negative 0.6%.

The ECB could also provide some details on more quantitative easing, or asset purchases. It now buys sovereign debt and some corporate bonds. It could discuss buying more corporates and even stocks. “That kind of thing is much further out. Their tool kit for the next few year includes many things. Buying stocks would be one. They could explicitly change the way they guide on interest rates,” Harris said. When the Fed cuts that should help weaken the dollar, which is viewed by the International Monetary Fund as being overvalued relative to its trading partners. Market speculation has circulated that the U.S. could intervene to weaken the dollar because of President Donald Trump’s repeated comments about other central banks being currency manipulators, but strategists doubt that the Trump administration would do such a thing.

Fighting against the trade war


Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: patti domm
Keywords: news, cnbc, companies, global, ecb, easing, getting, ready, leading, follow, fed, push, bank, rate, cut, central, interest, rates, suit, lower


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Dow futures give back gains on fading hopes of aggressive easing from the Fed

The new 2020 C8 Corvette Stingray guns for Ferrari with first… The base version of the sports car will punch out 495 horsepower, 40 more than the seventh-generation car and enough to launch it from 0 to 60 in “less than three seconds”…Autosread more


The new 2020 C8 Corvette Stingray guns for Ferrari with first… The base version of the sports car will punch out 495 horsepower, 40 more than the seventh-generation car and enough to launch it from 0 to 60 in “less than three seconds”…Autosread more
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Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: elliot smith
Keywords: news, cnbc, companies, firstthe, stingray, secondsautosread, dow, gains, guns, futures, fading, seventhgeneration, launch, car, easing, hopes, aggressive, horsepower, version, punch, fed


Dow futures give back gains on fading hopes of aggressive easing from the Fed

The new 2020 C8 Corvette Stingray guns for Ferrari with first…

The base version of the sports car will punch out 495 horsepower, 40 more than the seventh-generation car and enough to launch it from 0 to 60 in “less than three seconds”…

Autos

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Company: cnbc, Activity: cnbc, Date: 2019-07-19  Authors: elliot smith
Keywords: news, cnbc, companies, firstthe, stingray, secondsautosread, dow, gains, guns, futures, fading, seventhgeneration, launch, car, easing, hopes, aggressive, horsepower, version, punch, fed


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