ECB’s Draghi hints at a possible dip in inflation

Patience and persistence in our monetary policy are still needed, says ECB’s Draghi 2 Hours Ago | 02:05Mario Draghi, the president of the European Central Bank (ECB), hinted at the possibility of inflation not rising as quickly as expected due to euro zone firms dealing with a slew of uncertainties. “If firms start to become more uncertain about the growth and inflation outlook, the squeeze on margins could prove more persistent,” Draghi said at a banking conference in Frankfurt Friday. “This wo


Patience and persistence in our monetary policy are still needed, says ECB’s Draghi 2 Hours Ago | 02:05Mario Draghi, the president of the European Central Bank (ECB), hinted at the possibility of inflation not rising as quickly as expected due to euro zone firms dealing with a slew of uncertainties. “If firms start to become more uncertain about the growth and inflation outlook, the squeeze on margins could prove more persistent,” Draghi said at a banking conference in Frankfurt Friday. “This wo
ECB’s Draghi hints at a possible dip in inflation Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: matt clinch
Keywords: news, cnbc, companies, dip, end, bond, central, euro, hints, zone, rose, possible, draghi, firms, inflation, yields, ecbs


ECB's Draghi hints at a possible dip in inflation

Patience and persistence in our monetary policy are still needed, says ECB’s Draghi 2 Hours Ago | 02:05

Mario Draghi, the president of the European Central Bank (ECB), hinted at the possibility of inflation not rising as quickly as expected due to euro zone firms dealing with a slew of uncertainties.

“If firms start to become more uncertain about the growth and inflation outlook, the squeeze on margins could prove more persistent,” Draghi said at a banking conference in Frankfurt Friday.

“This would affect the speed with which underlying inflation picks up and therefore the inflation path that we expect to see in the quarters ahead.”

Draghi’s speech was generally positive about the region and he reiterated that the central bank’s massive crisis-era bond-buying scheme is still due to be wound down at the end of this year. He said there was no reason why the current expansion in the euro area — which is now in its fifth year — should abruptly come to an end, adding that the economic cycle was resilient.

German bond yields rose on Friday on the back of these comments. The country’s 10-year bond yield rose to session highs at 0.376 percent, extending earlier rises, according to Reuters.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: matt clinch
Keywords: news, cnbc, companies, dip, end, bond, central, euro, hints, zone, rose, possible, draghi, firms, inflation, yields, ecbs


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Euro, pound firm after draft Brexit deal; yen strengthens

The draft divorce deal with the European Union struck on Tuesday would allow the United Kingdom to leave the EU with a deal that avoids a chaotic “hard Brexit” departure. It had the same growth and deficit assumptions as a draft rejected for breaking European Union rules, stepping up its showdown with the EU over its fiscal policy. Against the Japanese yen, the dollar lost 0.13 percent to trade at 113.47. But investors think the dollar still remains the more favoured flight-to-safety currency ov


The draft divorce deal with the European Union struck on Tuesday would allow the United Kingdom to leave the EU with a deal that avoids a chaotic “hard Brexit” departure. It had the same growth and deficit assumptions as a draft rejected for breaking European Union rules, stepping up its showdown with the EU over its fiscal policy. Against the Japanese yen, the dollar lost 0.13 percent to trade at 113.47. But investors think the dollar still remains the more favoured flight-to-safety currency ov
Euro, pound firm after draft Brexit deal; yen strengthens Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, yen, brexit, likely, draft, firm, sterling, gains, trade, union, deal, dollar, euro, pound, european, strengthens


Euro, pound firm after draft Brexit deal; yen strengthens

The dollar weakened on Thursday against the pound and euro, which rose after Britain’s prime minister won cabinet approval for her draft Brexit plan, but gains were capped by concerns over whether that plan will win parliamentary approval.

Prime Minister Theresa May won the backing of her senior ministers for a European Union divorce deal on Wednesday, pushing the euro and sterling up 0.8 percent and 1.2 percent against the dollar, respectively, from their intraday lows hit on Monday.

The draft divorce deal with the European Union struck on Tuesday would allow the United Kingdom to leave the EU with a deal that avoids a chaotic “hard Brexit” departure. But EU chief negotiator Michel Barnier cautioned that the road to ensuring a smooth UK exit was still long and potentially difficult.

The dollar index, a gauge of the currency’s performance against six major peers, ticked up slightly to 96.87, but remained off a 16-month high hit on Monday.

The recent correction in the dollar index has been due to rallies in the euro and sterling, which together constitute around 70 percent of the weight in the index.

Despite their outperformance over the dollar on Thursday, analysts still see firm support for the safe haven greenback amid broader concerns about Brexit and global trade tensions.

Sterling gained 0.06 percent versus the dollar, changing hands at $1.3002.

“Getting the draft approved by the parliament will be extremely challenging and that’s why we are seeing sterling gains capped at 1.3,” said Ray Attrill, head of currency strategy at National Australia Bank.

He said the dollar’s fundamentals remain strong, backed by a robust U.S. economy and rising wage pressures which will keep the Federal Reserve on track for further rate rises.

“A rate hike in December is fully priced in and the next lift-off in rates will most likely be in March next year, which is likely to support the dollar,” said Attrill.

The euro firmed 0.15 percent to trade at $1.1328.

However, further gains will most likely be muted as traders are unwilling to place bullish bets after Italy re-submitted its draft 2019 budget to the European Commission. It had the same growth and deficit assumptions as a draft rejected for breaking European Union rules, stepping up its showdown with the EU over its fiscal policy.

Against the Japanese yen, the dollar lost 0.13 percent to trade at 113.47. The yen had gained in the previous two sessions versus the dollar. But investors think the dollar still remains the more favoured flight-to-safety currency over the yen and Swiss franc.

Adam Cole, chief currency strategist at RBC, thinks a major factor supporting dollar/yen is the emergence of a ready buyers on dips in the form of domestic investors buying unhedged U.S. bonds and taking hedges off existing holdings.

The Australian dollar gained 0.55 percent to trade at $0.7275 on the back of stronger than expected job data on Thursday.


Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, yen, brexit, likely, draft, firm, sterling, gains, trade, union, deal, dollar, euro, pound, european, strengthens


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Sterling and euro rise on Brexit hopes, dollar slips on profit-taking

The surge in the euro and sterling led investors to take profits on the U.S. dollar, which retraced from a 16-month high. The dollar index, a gauge of its value versus six major peers traded at 97.03 on Wednesday, down 0.28 percent. The euro and sterling constitute around 70 percent of the weight in the dollar index. Riding on the positive sentiment around a potential smooth and orderly Brexit deal, the euro gained 0.14 percent to trade at $1.1305 on Wednesday. The euro hit a 6-1/2 month low ver


The surge in the euro and sterling led investors to take profits on the U.S. dollar, which retraced from a 16-month high. The dollar index, a gauge of its value versus six major peers traded at 97.03 on Wednesday, down 0.28 percent. The euro and sterling constitute around 70 percent of the weight in the dollar index. Riding on the positive sentiment around a potential smooth and orderly Brexit deal, the euro gained 0.14 percent to trade at $1.1305 on Wednesday. The euro hit a 6-1/2 month low ver
Sterling and euro rise on Brexit hopes, dollar slips on profit-taking Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, profittaking, pound, hopes, deal, dollar, brexit, versus, trade, sentiment, sterling, traders, rise, slips, euro


Sterling and euro rise on Brexit hopes, dollar slips on profit-taking

The euro and sterling climbed higher on Wednesday as investor confidence rose on news Britain had struck a draft divorce deal with the European Union after more than a year of talks.

The surge in the euro and sterling led investors to take profits on the U.S. dollar, which retraced from a 16-month high.

The dollar index, a gauge of its value versus six major peers traded at 97.03 on Wednesday, down 0.28 percent. The index hit a 16-month high of 97.69 on Monday.

The sell-off in the dollar has been due to the improved risk sentiment around a potential Brexit deal and not because of any deterioration in the fundamentals of the U.S. economy. The euro and sterling constitute around 70 percent of the weight in the dollar index.

“Don’t be fooled by the pullback in the U.S. dollar…nearly all of the major currencies rebounded because of local factors and not a shift in appetite for U.S. dollars or change in economic fundamentals,” said Kathy Lien, managing director of currency strategy at BK Asset Management.

Lien expects the dollar to strengthen further on the back of a robust U.S. economy, rising interest rates and its safe haven status.

The British pound traded at $1.3006 on Wednesday, gaining 0.25 percent as traders reduced bearish bets after Britain and the European Union agreed a preliminary text that would allow the United Kingdom to leave the EU with a deal that avoids a chaotic “hard Brexit” departure.

The challenge for British Prime Minister Theresa May is now to sell this deal to the parliament, where hardline Brexit supporters accused her of surrendering to the EU. The British cabinet will meet at 1400 GMT on Wednesday to consider the draft withdrawal agreement.

“The bullish sentiment has certainly returned for the pound but we need to see the finer details of the draft deal and May needs support from her ministers,” said Michael McCarthy, chief market strategist at CMC markets.

McCarthy noted that while there is still lot of scope for further sterling appreciation, it would be prudent to wait on the sidelines for now until a clear picture emerges.

Riding on the positive sentiment around a potential smooth and orderly Brexit deal, the euro gained 0.14 percent to trade at $1.1305 on Wednesday. The euro’s gain was limited by concerns about Italy’s budget proposals and downbeat German investor confidence data, traders said.

“Italy is still a concern for traders and we can see more uncertainty in the euro zone going ahead. The gains in the euro will be muted,” added McCarthy.

The single currency lost 0.15 percent versus the pound to trade at 0.8690. The euro hit a 6-1/2 month low versus sterling of 0.8653 on Tuesday.

The dollar gained 0.11 percent versus the yen on Wednesday to trade at 113.93. The yen touched a six-week low of 114.20 on Monday.


Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, profittaking, pound, hopes, deal, dollar, brexit, versus, trade, sentiment, sterling, traders, rise, slips, euro


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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. 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
Keywords: news, cnbc, companies, intraday, high, european, traded, mondaythe, euro, led, 16month, pares, hovers, near, italys, yen, trade, dollar, versus, gains


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
Keywords: news, cnbc, companies, intraday, high, european, traded, mondaythe, euro, led, 16month, pares, hovers, near, italys, yen, trade, dollar, versus, gains


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ECB’s Praet plays down dovish tone on monetary policy; says ‘premature’ to signal rate hike path

The euro dropped to $1.121 on Tuesday morning, after the ECB’s chief economist Peter Praet told a conference in London Tuesday that a significant monetary policy stimulus is still needed. Speaking to CNBC, immediately after, Praet said: “I don’t think it is new, actually. We always communicate that to reach this inflation path, close to 2 percent in the medium-term, we need a substantial degree of monetary accommodation.” Praet, in his keynote address at the UBS European Conference, earlier on T


The euro dropped to $1.121 on Tuesday morning, after the ECB’s chief economist Peter Praet told a conference in London Tuesday that a significant monetary policy stimulus is still needed. Speaking to CNBC, immediately after, Praet said: “I don’t think it is new, actually. We always communicate that to reach this inflation path, close to 2 percent in the medium-term, we need a substantial degree of monetary accommodation.” Praet, in his keynote address at the UBS European Conference, earlier on T
ECB’s Praet plays down dovish tone on monetary policy; says ‘premature’ to signal rate hike path Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: silvia amaro
Keywords: news, cnbc, companies, needed, significant, substantial, told, plays, hike, premature, tone, signal, policy, praet, monetary, support, stimulus, path, rate, euro


ECB's Praet plays down dovish tone on monetary policy; says 'premature' to signal rate hike path

ECB’s Praet on ending the asset purchase programme and the bank’s next moves 4 Hours Ago | 02:18

The chief economist of the European Central Bank played down his previous remarks that a substantial level of monetary policy is still needed in the euro area, after those comments sent the euro to a session low on Tuesday.

The euro dropped to $1.121 on Tuesday morning, after the ECB’s chief economist Peter Praet told a conference in London Tuesday that a significant monetary policy stimulus is still needed.

Speaking to CNBC, immediately after, Praet said: “I don’t think it is new, actually. We always communicate that to reach this inflation path, close to 2 percent in the medium-term, we need a substantial degree of monetary accommodation.”

“When we announced that we anticipate to end the asset purchase program at the end of this year, we said that we still needed a substantial degree of accommodation to support the base scenario,” Praet also told CNBC’s Joumanna Bercetche on Tuesday.

Praet, in his keynote address at the UBS European Conference, earlier on Tuesday, said central banks across the world have already tightened their monetary policy stance and unconventional policies have been wound down as well as policy rates have been “gradually increased.”

He, however, noted that in the euro area “significant monetary policy stimulus is still needed to support the further build-up of inflationary pressures and headline inflation developments over the medium term.”


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: silvia amaro
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Ant Financial’s Alipay strikes payments deal with soccer body UEFA as it looks for global boost

Alipay, the payments app operated by Alibaba affiliate Ant Financial, has struck a partnership with European soccer governing body UEFA, the two firms announced Friday. Alipay is one of the biggest mobile payment services in China. So the deal will be focused on Chinese tourists heading to UEFA soccer tournaments. Those will eventually be involved in the UEFA deal, allowing users from those countries to use the services for payments. No timeline was given for when the partner wallets would come


Alipay, the payments app operated by Alibaba affiliate Ant Financial, has struck a partnership with European soccer governing body UEFA, the two firms announced Friday. Alipay is one of the biggest mobile payment services in China. So the deal will be focused on Chinese tourists heading to UEFA soccer tournaments. Those will eventually be involved in the UEFA deal, allowing users from those countries to use the services for payments. No timeline was given for when the partner wallets would come
Ant Financial’s Alipay strikes payments deal with soccer body UEFA as it looks for global boost Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: arjun kharpal, matthias doering, bloomberg, getty images
Keywords: news, cnbc, companies, deal, euro, strikes, payment, chinese, financial, uefa, looks, global, body, services, soccer, boost, financials, alipay, payments


Ant Financial's Alipay strikes payments deal with soccer body UEFA as it looks for global boost

Alipay, the payments app operated by Alibaba affiliate Ant Financial, has struck a partnership with European soccer governing body UEFA, the two firms announced Friday.

The eight-year deal will see Alipay accepted at venues where UEFA-sanctioned men’s national team events are taking place, including the Euro 2020 and Euro 2024 soccer championships.

Alipay is one of the biggest mobile payment services in China. Users link their bank account to the service and can then go into a shop, display the QR code in the app and have it scanned to complete a payment. It has over 700 million active users.

But, currently, it is only available to Chinese bank account holders. So the deal will be focused on Chinese tourists heading to UEFA soccer tournaments.

However, an Ant Financial spokesperson told CNBC that some of the company’s partner wallets could be involved in this deal. Ant Financial has invested in payments apps across Asia, including Paytm in India and Kakao Pay in South Korea. The company has several wallet partners across South East Asia.

Those will eventually be involved in the UEFA deal, allowing users from those countries to use the services for payments. No timeline was given for when the partner wallets would come online as part of the UEFA deal.

Ant Financial did not provide specific details about the products that would be included as part of the deal, but said the aim of the partnership was to “bring digital innovation to football fans, enhance their onsite experience and provide seamless payment and other services to fans in Europe and across the world.”

For UEFA, the deal could help it market the Euro soccer tournaments to the Chinese and broader Asian market and make it easier for people in the region to buy tickets, for example. For Alipay, it could help expand its overseas brand awareness and usage.

Financial terms of the deal were not disclosed.

Correction: This article has been updated to reflect that the eight-year deal will see Alipay accepted at venues where UEFA-sanctioned men’s national team events are taking place.


Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: arjun kharpal, matthias doering, bloomberg, getty images
Keywords: news, cnbc, companies, deal, euro, strikes, payment, chinese, financial, uefa, looks, global, body, services, soccer, boost, financials, alipay, payments


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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
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Italy has no future outside of the euro zone, top EU official warns

As the standoff between Rome and Brussels continues, the EU has said loud and clear that there is “no future” for Italy outside the euro zone. The European Commission — the legislation arm of the EU — and Italy have been arguing over Rome’s financial plans for 2019, after the new anti-establishment government in the country decided to increase public spending in the coming years. In its plans for 2019, Rome said that it will increase the public deficit to 2.4 percent of GDP (gross domestic produ


As the standoff between Rome and Brussels continues, the EU has said loud and clear that there is “no future” for Italy outside the euro zone. The European Commission — the legislation arm of the EU — and Italy have been arguing over Rome’s financial plans for 2019, after the new anti-establishment government in the country decided to increase public spending in the coming years. In its plans for 2019, Rome said that it will increase the public deficit to 2.4 percent of GDP (gross domestic produ
Italy has no future outside of the euro zone, top EU official warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: silvia amaro, elisabetta a villa, getty images
Keywords: news, cnbc, companies, italys, public, future, zone, euro, eu, warns, italy, deficit, official, 2019, commission, plans, european, rome, outside, increase


Italy has no future outside of the euro zone, top EU official warns

As the standoff between Rome and Brussels continues, the EU has said loud and clear that there is “no future” for Italy outside the euro zone.

The European Commission — the legislation arm of the EU — and Italy have been arguing over Rome’s financial plans for 2019, after the new anti-establishment government in the country decided to increase public spending in the coming years.

In its plans for 2019, Rome said that it will increase the public deficit to 2.4 percent of GDP (gross domestic product) — three times higher than what the previous government had promised. However, taking into account all the new policies that Rome wants to put forward, the European Commission said Thursday that Italy’s 2019 deficit will in fact be 2.9 percent — close to the EU’s threshold of 3 percent.

The European Commission said previously that it’s not only worried about Italy’s headline deficit, but mostly with its structural deficit (which excludes the state of the economy). A deviation from the European fiscal rules could put Italy’s finances under closer scrutiny by Brussels and they could even be put under certain restrictions. The latter could be the so-called excessive deficit procedure (EDP), which aims to help countries correct their finances.

In 2020, the government deficit is projected to reach 3.1 percent of GDP, the Commission said, warning that risks related to market reactions could potentially worsen that forecast.


Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: silvia amaro, elisabetta a villa, getty images
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European markets mixed amid political uncertainty; Adecco shares jump 4%

Retail and autos were the worst performers, both down by about half of a percent. WM Morrison fell 3.8 percent after reporting lower sales growth in the last quarter. Adecco and Deutsche Post also made their way into the best performing stocks Tuesday morning after reporting third-quarter results. Meanwhile, euro zone finance ministers continue to put pressure on Italy to submit a new budget to the European Commission and end the current standoff over the country’s spending plans. On the data fr


Retail and autos were the worst performers, both down by about half of a percent. WM Morrison fell 3.8 percent after reporting lower sales growth in the last quarter. Adecco and Deutsche Post also made their way into the best performing stocks Tuesday morning after reporting third-quarter results. Meanwhile, euro zone finance ministers continue to put pressure on Italy to submit a new budget to the European Commission and end the current standoff over the country’s spending plans. On the data fr
European markets mixed amid political uncertainty; Adecco shares jump 4% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-06  Authors: silvia amaro
Keywords: news, cnbc, companies, political, reporting, sales, uncertainty, amid, markets, jump, european, investors, euro, brexit, pressure, zalando, shares, adecco, retail, mixed, zone


European markets mixed amid political uncertainty; Adecco shares jump 4%

The pan-European Stoxx 600 was flat with the different sectors struggling to make strong gains. Retail and autos were the worst performers, both down by about half of a percent.

In the retail world, earnings were at the fore. WM Morrison fell 3.8 percent after reporting lower sales growth in the last quarter. Shoe retailer Zalando registered its slowest sales rate since it was launched 10 years ago. Shares dropped nearly 4 percent as a result.

Siemens Gamesa was up more than 8 percent after hitting its targets for the year. However, the company warned that commodity prices and emerging market volatility would hit margins in 2019. Adecco and Deutsche Post also made their way into the best performing stocks Tuesday morning after reporting third-quarter results.

Meanwhile, investors across the globe are watching U.S. voters head to the polls in the midterm elections scheduled for Tuesday, which could send ripples throughout capital markets. Back in Europe, investors are also monitoring Brexit and Italian politics.

Prime Minister Theresa May is due to have a Brexit meeting with her cabinet and she is likely to pressure the so-called Brexiteers to cede ground to ensure a deal is struck with the European Union.

Meanwhile, euro zone finance ministers continue to put pressure on Italy to submit a new budget to the European Commission and end the current standoff over the country’s spending plans.

On the data front, there will be services PMIs in the euro zone at 9:00 a.m. London time.


Company: cnbc, Activity: cnbc, Date: 2018-11-06  Authors: silvia amaro
Keywords: news, cnbc, companies, political, reporting, sales, uncertainty, amid, markets, jump, european, investors, euro, brexit, pressure, zalando, shares, adecco, retail, mixed, zone


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British pound firms on reports of Brexit customs deal

The dollar lost ground against most of its major peers on Monday, as growing expectations of an orderly Brexit bolstered the pound, euro and broader global investor sentiment. Despite Brexit relief supporting risk appetite in currency markets, the UK’s Telegraph newspaper reported that significant hurdles still remain for the negotiation process. The pound retraced its intra-day high in early thin Asian trade, but was up 0.3 percent for the day. The positive sentiment around a smooth Brexit also


The dollar lost ground against most of its major peers on Monday, as growing expectations of an orderly Brexit bolstered the pound, euro and broader global investor sentiment. Despite Brexit relief supporting risk appetite in currency markets, the UK’s Telegraph newspaper reported that significant hurdles still remain for the negotiation process. The pound retraced its intra-day high in early thin Asian trade, but was up 0.3 percent for the day. The positive sentiment around a smooth Brexit also
British pound firms on reports of Brexit customs deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, pound, deal, dollar, traded, jobs, british, customs, reports, yuan, brexit, trade, euro, firms, currency, versus


British pound firms on reports of Brexit customs deal

The dollar lost ground against most of its major peers on Monday, as growing expectations of an orderly Brexit bolstered the pound, euro and broader global investor sentiment.

A Sunday Times report that an all-UK customs deal will be written into the agreement governing Britain’s withdrawal from the EU cheered investors who sent the pound to $1.3062 on Monday, the highest since Oct. 22.

The dollar index, a gauge of its value versus six major peers, traded marginally lower at 96.45 due to the gains in the euro and pound, which together make up around 70 percent of the index.

However, analysts think dollar strength will return as investors shift focus back to expectations for tighter U.S. monetary policy following stronger-than-expected economic data late last week. Analysts see the Federal Reserve on track to raise interest rates in December, followed by another two hikes by mid-2019.

Data released on Friday showed that U.S. jobs growth rebounded sharply in October and wages recorded their largest annual gain in 9-1/2 years.

“The jobs data has reaffirmed the dollar’s strength due to the rates differential factor going forward. The risk is that the markets may be caught surprised by a more hawkish Fed,” said Rodrigo Catril, senior currency strategist at NAB.

U.S. 10-year Treasury yields traded at 3.2 percent on Monday, having risen on Friday on the back of the jobs report.

That is expected to help the dollar firm against the safe haven Japanese yen, which traded flat at 113.18 on Monday. The dollar weakened by 0.66 percent versus the yen in the month of October as news flow around trade tensions, geopolitical risks and a global economic slowdown gave the Japanese currency a flight-to-safety bid.

“The dollar/yen will follow the U.S. 10 year yields higher. We don’t see much downside as of now,” added Catril.

Despite Brexit relief supporting risk appetite in currency markets, the UK’s Telegraph newspaper reported that significant hurdles still remain for the negotiation process.

The pound retraced its intra-day high in early thin Asian trade, but was up 0.3 percent for the day. It has lost 3.7 percent versus the greenback year to date.

The positive sentiment around a smooth Brexit also gave the euro a small bid in early Asian trade. The single currency gained 0.11 percent and changed hands at $1.1396.

The offshore yuan traded stronger versus the dollar at 6.8948. The yuan gained in the last two trading sessions versus the greenback in offshore trading, supported by rising hopes that trade tension between China and the United States will ease.


Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, pound, deal, dollar, traded, jobs, british, customs, reports, yuan, brexit, trade, euro, firms, currency, versus


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