Euro basks at 3-month highs as dollar bears charge

The euro surged to a high of $1.1581 overnight, its highest level since mid-October before trimming some of its gains and settling at $1.153, broadly steady on the day. The surge in the euro took some traders by surprise who had added some big stop losses around the $1.15 levels, forcing them to unwind their positions and prompting further euro gains. That has lifted China’s offshore yuan to its highest level since August along with recent assurances from Beijing of further fiscal boosts to the


The euro surged to a high of $1.1581 overnight, its highest level since mid-October before trimming some of its gains and settling at $1.153, broadly steady on the day. The surge in the euro took some traders by surprise who had added some big stop losses around the $1.15 levels, forcing them to unwind their positions and prompting further euro gains. That has lifted China’s offshore yuan to its highest level since August along with recent assurances from Beijing of further fiscal boosts to the
Euro basks at 3-month highs as dollar bears charge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, euro, 3month, bears, charge, key, levels, yuan, highest, highs, dollar, basks, gains, traders, steady, level


Euro basks at 3-month highs as dollar bears charge

The euro consolidated gains on Thursday after posting its biggest daily jump in more than six months, having cleared some key market levels after Fed minutes signaled a more cautious approach towards further rate hikes.

With the euro broadly hemmed in a $1.12-$1.15 range over the last three months, the dovish minutes gave dollar bears a further excuse to buy the euro, propelling it past a 100-day moving average, a level it hasn’t traded above in more than three months.

The euro surged to a high of $1.1581 overnight, its highest level since mid-October before trimming some of its gains and settling at $1.153, broadly steady on the day.

“This is more of a dollar bearish story causing some stop losses to be triggered around key levels rather than a rerating of the European story,” said Kamal Sharma, director of G10 FX strategy at Bank of America Merrill Lynch in London.

The surge in the euro took some traders by surprise who had added some big stop losses around the $1.15 levels, forcing them to unwind their positions and prompting further euro gains. Data out of Europe has been fairly tepid. French industrial production fell more than expected in November while Swedish private sector production data was fairly flat.

Minutes from the Fed’s Dec. 18-19 meeting showed that several policymakers were in favour of the U.S. central bank keeping rates steady this year.

“This drop in the dollar is an overdue correction following a surprisingly robust few weeks despite the massive collapse in U.S. rate expectations,” said Ulrich Leuchtmann, a currency strategist at Commerzbank.

China and the United States have extended trade talks in Beijing, boosting oil prices and broader sentiment.

That has lifted China’s offshore yuan to its highest level since August along with recent assurances from Beijing of further fiscal boosts to the slowing economy.

The yuan has breached the key 6.8 per dollar level in both onshore and offshore trade.

Commodity currencies such as the Canadian dollar have been the biggest beneficiaries of improving risk sentiment this week. It fetched C$1.3230, hovering close to its highest level in more than a month, helped by the rebound in oil prices.

The dollar index rose .09 percent at 95.30, after losing 0.7 percent on Wednesday. It has weakened in four out of the last five sessions as traders wager that US interest rates will stay steady in 2019.


Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, euro, 3month, bears, charge, key, levels, yuan, highest, highs, dollar, basks, gains, traders, steady, level


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European stocks open higher as the US and China agree to hold trade talks

Markets in the continent got a slight lift after China’s commerce ministry said the U.S. and Chinese would hold vice-ministerial level negotiations over trade in Beijing on Jan. 7-8. The Caixin/Markit services purchasing managers’ index (PMI) rose to a six-month high of 53.9 in December, up November’s reading of 53.8. He said disappointing iPhone revenue driven by poor sales in Greater China was a primary factor in Apple’s earnings warning. Innocenzi was one of three temporary administrators app


Markets in the continent got a slight lift after China’s commerce ministry said the U.S. and Chinese would hold vice-ministerial level negotiations over trade in Beijing on Jan. 7-8. The Caixin/Markit services purchasing managers’ index (PMI) rose to a six-month high of 53.9 in December, up November’s reading of 53.8. He said disappointing iPhone revenue driven by poor sales in Greater China was a primary factor in Apple’s earnings warning. Innocenzi was one of three temporary administrators app
European stocks open higher as the US and China agree to hold trade talks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: ryan browne
Keywords: news, cnbc, companies, et, higher, stocks, index, talks, week, agree, pmi, investors, european, services, deal, open, chinese, euro, china, trade, hold


European stocks open higher as the US and China agree to hold trade talks

The pan-European Stoxx 600 index rallied almost 1 percent, with all sectors and major bourses in positive territory.

Markets in the continent got a slight lift after China’s commerce ministry said the U.S. and Chinese would hold vice-ministerial level negotiations over trade in Beijing on Jan. 7-8. The two countries are trying to reach a breakthrough to resolve their differences over a 90-day tariffs truce.

Last year was marred by an intense sparring of tariffs between the world’s two largest economies, resulting in uncertainty for companies and nervousness for investors. Friday’s news buoyed Chinese equities, with the Shanghai composite climbing 1.81 percent higher, the Shenzhen Composite up 2.24 percent and Hong Kong’s Hang Seng index rising 1.3 percent.

Data showing China’s services sector extended a solid expansion in December also provide support for the market, amid fears of a slowdown in growth. The Caixin/Markit services purchasing managers’ index (PMI) rose to a six-month high of 53.9 in December, up November’s reading of 53.8. Chinese manufacturing PMI data earlier this week showed a contraction in factory activity for the first time in 19 months, news which had put investors on edge.

This week, Apple raised the alarm on China’s weakening economy, citing such weakness as a reason in part to lower its first-quarter revenue guidance. Chief Executive Tim Cook said in a letter to investors Wednesday that the firm saw an impact to the Chinese economy from “rising trade tensions with the United States.” He said disappointing iPhone revenue driven by poor sales in Greater China was a primary factor in Apple’s earnings warning.

News of the upcoming trade talks also gave U.S. futures a boost Friday, with the Dow expected to open 100 points higher and S&P 500 and Nasdaq futures climbing more than half a percent.

Investors stateside are closely watching domestic political developments. The House of Representatives on Thursday passed a bill that would end a partial government shutdown which has seen workers furloughed or working without pay. The funding package does not include money for President Donald Trump’s proposed border wall between the U.S. and Mexico, however, a key sticking point in the bid to end the shutdown.

Meanwhile, over in Europe, a survey released Friday showed that 57 percent of U.K. Prime Minister Theresa May’s Conservative Party members would rather withdraw from the European Union without a deal than stick with the government’s Brexit deal. The poll added to concerns that May will be unable to get her deal through parliament at a vote scheduled for the week beginning Jan. 14.

In corporate news, troubled Italian lender Banca Carige is exploring the use of a 320 million euro ($364.6 million) convertible bond to boost capital and avoid the use of taxpayers’ money, Fabio Innocenzi, formerly the bank’s chief executive, said Thursday in an interview with Class CNBC. Innocenzi was one of three temporary administrators appointed by the European Central Bank to take control of the lender earlier this week.

On the earnings front, British textile rental firm Johnson Service Group will release a trading statement on Friday.

In terms of data, British nationwide house prices for December will be released at 2 a.m. ET, euro zone composite PMI and services PMI for December are due at 4 a.m. ET, and the euro zone December inflation rate is due at 5 a.m. ET.

Elsewhere, traders are looking ahead to a joint discussion with Federal Reserve Chairman Jerome Powell and former Fed chiefs Janet Yellen and Ben Bernanke, due to take place at 10:15 a.m. ET. The U.S. central bank raised interest rates four times in 2018, however expectations for the Fed to pause rate rises — or even cut rates — have increased amid fears around slowing global economic growth.


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: ryan browne
Keywords: news, cnbc, companies, et, higher, stocks, index, talks, week, agree, pmi, investors, european, services, deal, open, chinese, euro, china, trade, hold


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Safe-havens yen and the Swiss franc rise on global growth concerns

The yen and the Swiss franc rose on Friday, as investors sought shelter in safe-haven assets due to renewed U.S.-China trade tensions and weaker-than-expected data in those two economies that revived global growth fears. In Asian trade on Friday, the yen added 0.4 percent against the dollar, while the Swiss franc tacked on 0.3 percent as renewed growth fears pushed investors back into safe havens. Financial markets are expecting U.S. growth to slow next year as the spillover effects from rising


The yen and the Swiss franc rose on Friday, as investors sought shelter in safe-haven assets due to renewed U.S.-China trade tensions and weaker-than-expected data in those two economies that revived global growth fears. In Asian trade on Friday, the yen added 0.4 percent against the dollar, while the Swiss franc tacked on 0.3 percent as renewed growth fears pushed investors back into safe havens. Financial markets are expecting U.S. growth to slow next year as the spillover effects from rising
Safe-havens yen and the Swiss franc rise on global growth concerns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-28
Keywords: news, cnbc, companies, interest, dollar, trade, versus, safehavens, rise, swiss, concerns, prices, global, rates, investors, data, euro, yen, franc, growth


Safe-havens yen and the Swiss franc rise on global growth concerns

The yen and the Swiss franc rose on Friday, as investors sought shelter in safe-haven assets due to renewed U.S.-China trade tensions and weaker-than-expected data in those two economies that revived global growth fears.

Reuters reported on Thursday that the Trump administration was considering an executive order in the new year to declare a national emergency that would bar U.S. companies from using products made by Chinese firms Huawei Technologies and ZTE.

“With the end of 90-day tariff moratorium looming ominously on the horizon, this announcement is yet another bump in the rocky path to a trade resolution,” said Stephen Innes, head of Asian trading at Oanda in a note.

Trade tension between the world’s two largest economies has been one of this year’s biggest risk factors, though Washington and Beijing on Dec. 1 agreed to a 90-day ceasefire in their tariff dispute while they try to negotiate a durable deal.

Markets remain skeptical whether the two sides can bridge their differences, which go beyond trade to intellectual property rights and other issues.

In Asian trade on Friday, the yen added 0.4 percent against the dollar, while the Swiss franc tacked on 0.3 percent as renewed growth fears pushed investors back into safe havens.

The anxiety in markets has helped these currencies this month put on 2.3 percent and 1.2 percent, respectively.

Currencies generally are trading in thin volumes, with year-end positioning adding to volatility.

The dollar index, a gauge of its value versus six major peers, fell by around 0.15 percent to 96.34, after losing 0.5 percent overnight.

Data showing consumer confidence at its weakest in more than three years in the United States, as well as an unexpected drop in industrial profits in China, provided a stark reminder to investors of the deteriorating global growth outlook.

That came just a day after a dramatic surge on Wall Street had given some respite to battered investor sentiment. Overnight, U.S. stocks ended higher in a volatile session.

In December, the Federal Reserve raised rates for the fourth time this year and it forecast two more rate hikes in 2019.

Financial markets are expecting U.S. growth to slow next year as the spillover effects from rising interest rates hit corporate profits and economic activity.

For this reason, the interest rate futures market is barely pricing in just one more hike in 2019 as many traders expect the Fed to pause on its monetary tightening path if economic data weakens in coming quarters.

“There are intensifying headwinds facing the US economy in 2019 – namely the lagged effects of higher borrowing costs, the stronger dollar, the fading support from the fiscal stimulus and weaker external demand at a time of rising trade protectionism,” said James Knightley, chief international economist at ING in a note.

“These factors will increasingly weigh on sentiment in 2019,” he said.

Oil prices have tumbled in recent months, which has kept commodity currencies such as the Canadian dollar under heavy pressure. The loonie changed hands at C$1.3620 and has lost 7.5 percent of its value versus the U.S. dollar this year.

Some analysts expect the Canadian dollar to strengthen if oil prices rebound in the new year.

“The Canadian dollar was the only currency that failed to benefit at year-end because of oil but as crude prices stabilize, so will the loonie,” said Kathy Lien, managing director of currency strategy at BK Asset Management in a note.

The euro gained 0.2 percent, fetching $1.1452. But the single currency has struggled this year due to weak euro zone data, low inflation and political risks. That has led to the European Central Bank maintaining ultra-low interest rates. The euro is on track for a loss of 4.5 percent versus the greenback this year.


Company: cnbc, Activity: cnbc, Date: 2018-12-28
Keywords: news, cnbc, companies, interest, dollar, trade, versus, safehavens, rise, swiss, concerns, prices, global, rates, investors, data, euro, yen, franc, growth


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Euro slips as ECB’s Draghi lowers growth forecast for Europe

The euro currency has slipped in value after the European Central Bank (ECB) trimmed its growth forecasts for this year and next. The ECB’s three-year, 2.6 trillion-euro ($3tn) bond buying program is ending this month, and the central bank has claimed it is still on track to raise rates after the summer of next year. Delivering his prepared remarks to reporters in Frankfurt, ECB President Mario Draghi said 2018 growth in the euro area was expected to be 1.9 percent rather than the 2.0 percent fo


The euro currency has slipped in value after the European Central Bank (ECB) trimmed its growth forecasts for this year and next. The ECB’s three-year, 2.6 trillion-euro ($3tn) bond buying program is ending this month, and the central bank has claimed it is still on track to raise rates after the summer of next year. Delivering his prepared remarks to reporters in Frankfurt, ECB President Mario Draghi said 2018 growth in the euro area was expected to be 1.9 percent rather than the 2.0 percent fo
Euro slips as ECB’s Draghi lowers growth forecast for Europe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: david reid, jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, ecb, growth, europe, ecbs, draghi, forecasts, lowers, central, trimmed, currency, euro, forecast, slips, bank


Euro slips as ECB's Draghi lowers growth forecast for Europe

The euro currency has slipped in value after the European Central Bank (ECB) trimmed its growth forecasts for this year and next.

The ECB’s three-year, 2.6 trillion-euro ($3tn) bond buying program is ending this month, and the central bank has claimed it is still on track to raise rates after the summer of next year.

Delivering his prepared remarks to reporters in Frankfurt, ECB President Mario Draghi said 2018 growth in the euro area was expected to be 1.9 percent rather than the 2.0 percent forecast in September.

“The risks surrounding the euro area growth outlook can still be assessed as broadly balanced. However, the balance of risk is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility,” Draghi said.

The 2019 GDP (gross domestic product) figure was also trimmed back to 1.7 percent from an earlier forecast of 1.8 percent.

The euro/dollar currency pair was at $1.1375 as Draghi begin speaking and fell to $1.1340 following the data release. On the day, the currency was lower by around 0.25 percent versus the dollar.

For inflation forecasts, Draghi announced that a slight upward revision in his staff projection for 2018 to 1.8 percent, has been offset by a corresponding fall next year.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: david reid, jasper juinen, bloomberg, getty images
Keywords: news, cnbc, companies, ecb, growth, europe, ecbs, draghi, forecasts, lowers, central, trimmed, currency, euro, forecast, slips, bank


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ECB announces the end of crisis-era stimulus, switches to reinvestments

They will stop expanding quantitative easing (QE) from the end of December — when bond purchases will fall from 15 billion euros a month to zero. In winding up its massive bond-buying program, the ECB said it planned to spend cash from maturing bonds to purchase additional debt. “With the most prominent crisis-fighting measure of the ECB now almost back in the toolbox, the big question is, what will be next?” “It seems as if the ECB wants to keep as many cards as possible close to its chest,” Br


They will stop expanding quantitative easing (QE) from the end of December — when bond purchases will fall from 15 billion euros a month to zero. In winding up its massive bond-buying program, the ECB said it planned to spend cash from maturing bonds to purchase additional debt. “With the most prominent crisis-fighting measure of the ECB now almost back in the toolbox, the big question is, what will be next?” “It seems as if the ECB wants to keep as many cards as possible close to its chest,” Br
ECB announces the end of crisis-era stimulus, switches to reinvestments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: sam meredith
Keywords: news, cnbc, companies, ecb, stimulus, zone, policymakers, crisisera, end, qe, announces, euros, switches, program, reinvestments, purchases, euro, trillion


ECB announces the end of crisis-era stimulus, switches to reinvestments

The ECB’s governing council confirmed what policymakers had been saying since the summer. They will stop expanding quantitative easing (QE) from the end of December — when bond purchases will fall from 15 billion euros a month to zero.

It marks a historic moment for the central bank, as President Mario Draghi dismantles one of his most contentious policies.

In winding up its massive bond-buying program, the ECB said it planned to spend cash from maturing bonds to purchase additional debt.

These purchases are designed to keep borrowing costs down through to sometime in 2021.

In theory, the open-ended timeline should allow policymakers to push back the date at a relatively low cost to credibility if the economy falters.

The ECB’s asset purchasing program — under which the bank bought more than 2.6 trillion euros ($2.9 trillion) — was introduced in March 2015 in a bid to rescue the euro zone economy from deflationary forces and rebuild confidence.

The measures are widely credited to have helped revive the 19-member currency bloc after a double-dip recession and the residual effects of the European debt crisis.

“With the most prominent crisis-fighting measure of the ECB now almost back in the toolbox, the big question is, what will be next?” Carsten Brzeski, chief economist at ING, said in a research note published Thursday.

“It seems as if the ECB wants to keep as many cards as possible close to its chest,” Brzeski said.

The central bank’s decision to end QE after nearly four years is thought to symbolize the end of crisis-era policies in the euro zone, despite coming at a difficult time for Europe.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: sam meredith
Keywords: news, cnbc, companies, ecb, stimulus, zone, policymakers, crisisera, end, qe, announces, euros, switches, program, reinvestments, purchases, euro, trillion


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Euro zone inflation dips as ECB braces to end bond buying

Euro zone inflation slowed as expected in November, while core inflation readings were below market expectations, supporting European Central Bank policymakers who favor a cautious exit from monetary stimulus. Indeed, Eurostat said that energy prices rose by 9.1 percent year-on-year, from 10.7 percent in October, while unprocessed food prices were up 1.8 percent, from a 2.1 percent increase last month. Another core inflation reading often watched by economists, which removes all food, energy, al


Euro zone inflation slowed as expected in November, while core inflation readings were below market expectations, supporting European Central Bank policymakers who favor a cautious exit from monetary stimulus. Indeed, Eurostat said that energy prices rose by 9.1 percent year-on-year, from 10.7 percent in October, while unprocessed food prices were up 1.8 percent, from a 2.1 percent increase last month. Another core inflation reading often watched by economists, which removes all food, energy, al
Euro zone inflation dips as ECB braces to end bond buying Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: aris messinis, afp, getty images
Keywords: news, cnbc, companies, energy, dips, euro, core, end, bond, buying, prices, zone, braces, inflation, policy, yearonyear, bank, ecb


Euro zone inflation dips as ECB braces to end bond buying

Euro zone inflation slowed as expected in November, while core inflation readings were below market expectations, supporting European Central Bank policymakers who favor a cautious exit from monetary stimulus.

Consumer prices in the 19 countries sharing the euro rose by 2.0 percent year-on-year in November after a near six-year high of 2.2 percent in October, EU statistics agency Eurostat said on Friday.

The decline matched the average expectation in a Reuters poll of economists.

Headline inflation has been at or above the ECB’s target of almost 2 percent for months, but the bank has downplayed the risk of an overshoot, arguing that underlying trends remain weak and only volatile energy costs are pushing up consumer prices.

Indeed, Eurostat said that energy prices rose by 9.1 percent year-on-year, from 10.7 percent in October, while unprocessed food prices were up 1.8 percent, from a 2.1 percent increase last month.

Inflation excluding those two volatile components — the core indicator that the ECB watches in its policy decisions — also fell, to 1.1 percent from 1.2 percent in October, against expectations of a slight increase.

Another core inflation reading often watched by economists, which removes all food, energy, alcohol and tobacco prices, also dropped to 1.0 percent. Forecasts were for it to be unchanged at 1.1 percent.

Both indicate that record employment and rising wages have yet to fully feed through to prices.

The ECB still plans to end its 2.6 trillion euro ($2.96 trillion) bond purchase scheme next month, arguing that inflation is now well on its way to the target and the euro zone economy will continue to expand even with reduced support.

But it also expects to maintain an oversized balance sheet for years to come and interest rates at record lows at least through next summer to keep monetary policy highly accommodative for an extended period.

The ECB now expects inflation to average 1.7 percent through 2020 but an oil price drop of more than 30 percent since early October has raised downside risks to its projections.

The bank will next meet on December 13 and investors expect it to reaffirm its policy stance and to detail how it will use cash from maturing bonds to keep borrowing costs low.

Eurostat’s flash estimate does not include a month-on-month calculation.


Company: cnbc, Activity: cnbc, Date: 2018-11-30  Authors: aris messinis, afp, getty images
Keywords: news, cnbc, companies, energy, dips, euro, core, end, bond, buying, prices, zone, braces, inflation, policy, yearonyear, bank, ecb


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Meet the ‘Hanseatic League’ — the group of European countries frustrating France

There is a group of European countries that gets uncomfortable every time France comes up with ideas to deepen ties with other euro economies. Labeled the “Hanseatic League,” this group includes the Netherlands, Finland, Denmark and Latvia. “We are strongly in favor of euro zone reform. Differing opinions on how to move forward within the euro zone are nothing new, of course. “Let’s imagine that France tries to create a club of the southern countries with Portugal, Italy, Spain — what would be t


There is a group of European countries that gets uncomfortable every time France comes up with ideas to deepen ties with other euro economies. Labeled the “Hanseatic League,” this group includes the Netherlands, Finland, Denmark and Latvia. “We are strongly in favor of euro zone reform. Differing opinions on how to move forward within the euro zone are nothing new, of course. “Let’s imagine that France tries to create a club of the southern countries with Portugal, Italy, Spain — what would be t
Meet the ‘Hanseatic League’ — the group of European countries frustrating France Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-28  Authors: silvia amaro, anadolu agency, getty images, thierry monasse, getty images news, -european official
Keywords: news, cnbc, companies, hanseatic, think, league, told, countries, european, france, zone, group, euro, meet, member, reform, states, europe, frustrating


Meet the 'Hanseatic League' — the group of European countries frustrating France

There is a group of European countries that gets uncomfortable every time France comes up with ideas to deepen ties with other euro economies.

Labeled the “Hanseatic League,” this group includes the Netherlands, Finland, Denmark and Latvia. Its name refers to the confederation free-trading city states in the northern part of Europe that started in the 14th century.

The Hanseatic League has for about a year questioned France’s determined efforts to strengthen the economic union through motions that include putting together a euro zone budget.

Instead, the group believes that each government needs to consider its own fiscal obligations and put the necessary policies in place — doing so would reduce efforts at the euro zone level to further deepen integration between the 19 countries.

“We are strongly in favor of euro zone reform. The question is what kind of reform,” a European official, who is a member of the so-called league and who did not want to be named due to the sensitivity of the discussions, told CNBC.

Differing opinions on how to move forward within the euro zone are nothing new, of course. But they seemed to reach a new level last weekend when France’s Finance Minister Bruno Le Maire publicly stated Paris’ frustration with the group.

“Let’s imagine that France tries to create a club of the southern countries with Portugal, Italy, Spain — what would be the reaction of the other member states? Do you think that it would be a positive one? Do you think it would improve the situation of Europe?,” Le Maire told the Financial Times.

“I am not comfortable with the idea of creating new circles, new clubs, new leagues within Europe,” he added.


Company: cnbc, Activity: cnbc, Date: 2018-11-28  Authors: silvia amaro, anadolu agency, getty images, thierry monasse, getty images news, -european official
Keywords: news, cnbc, companies, hanseatic, think, league, told, countries, european, france, zone, group, euro, meet, member, reform, states, europe, frustrating


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Euro zone slowdown not enough to derail ECB plans, Draghi says

The euro zone has lost some growth momentum but this was mostly normal and not enough to derail plans by the European Central Bank (ECB) to dial back stimulus further, ECB President Mario Draghi and two of his top lieutenants said on Monday. Euro zone growth has been disappointing since the summer months, and Germany, the bloc’s biggest economy, even contracted last quarter, raising some concern that the ECB may be cutting support at the worst possible moment. “A gradual slowdown is normal as ex


The euro zone has lost some growth momentum but this was mostly normal and not enough to derail plans by the European Central Bank (ECB) to dial back stimulus further, ECB President Mario Draghi and two of his top lieutenants said on Monday. Euro zone growth has been disappointing since the summer months, and Germany, the bloc’s biggest economy, even contracted last quarter, raising some concern that the ECB may be cutting support at the worst possible moment. “A gradual slowdown is normal as ex
Euro zone slowdown not enough to derail ECB plans, Draghi says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-26  Authors: francois lenoir
Keywords: news, cnbc, companies, ecb, derail, plans, support, euro, draghi, praet, zone, extended, slowdown, period, growth


Euro zone slowdown not enough to derail ECB plans, Draghi says

The euro zone has lost some growth momentum but this was mostly normal and not enough to derail plans by the European Central Bank (ECB) to dial back stimulus further, ECB President Mario Draghi and two of his top lieutenants said on Monday.

Euro zone growth has been disappointing since the summer months, and Germany, the bloc’s biggest economy, even contracted last quarter, raising some concern that the ECB may be cutting support at the worst possible moment.

“A gradual slowdown is normal as expansions mature and growth converges towards its long-run potential,” Draghi told the European Parliament’s committee on economic affairs in Brussels.

“Some of the slowdown may also be temporary,” Draghi added. “In fact, the latest data already show some normalizing of production in the car industry which has been impeded by one-off factors.”

Still, data on Monday showed that German business morale fell by more than expected in November, pointing to weak growth this quarter, even if a rebound was still likely. But Draghi along with ECB chief economist Peter Praet and board member Sabine Lautenschlaeger all said the case to end the ECB’s 2.6 trillion euro bond purchase scheme remained unchanged as inflationary pressures build and employment is rises.

The ECB is due to decide on ending the bond buys on December 13 but the decision is seen largely a formality as bar to changing this guidance is very high and would require a true shock.

Praet said the fall in crude oil prices — 30 percent since early October — was a positive for the bloc as the euro zone is a net importer and cheaper crude increases disposable incomes.

Praet added that the ECB could in December provide more elaborate guidance on the time-frame for reinvesting cash from maturing bonds. With fresh purchases ending in December, reinvestments will become the bank’s key tool to influence market prices and setting the time horizon for buys is a way for the ECB to provide support. The ECB currently guides markets for reinvestments for an “extended period” which markets interpret as two to three years.

“At the following meetings of the Governing Council, we have to explain a little bit what we mean by an extended period of time,” Praet said.

“I cannot tell you about the December meeting but I think you’re right to expect the ECB to clarify what we mean that we expect to reinvest for an extended period of time,” Praet said. “How are we going to clarify this, let’s wait for December.”


Company: cnbc, Activity: cnbc, Date: 2018-11-26  Authors: francois lenoir
Keywords: news, cnbc, companies, ecb, derail, plans, support, euro, draghi, praet, zone, extended, slowdown, period, growth


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Euro, sterling steady as traders look to Brexit progress

The euro and sterling traded marginally higher on Friday, having advanced overnight by 0.2 percent and 0.8 percent respectively. Much of the weakness is due to the strength in the euro and sterling, which together constitute 70 percent of the index. The Japanese currency has traded in an extremely narrow range with a soft bias over the last four trading sessions. This interest rate differential between U.S. and Japanese bonds makes the dollar a more attractive bet than the yen. The Australian do


The euro and sterling traded marginally higher on Friday, having advanced overnight by 0.2 percent and 0.8 percent respectively. Much of the weakness is due to the strength in the euro and sterling, which together constitute 70 percent of the index. The Japanese currency has traded in an extremely narrow range with a soft bias over the last four trading sessions. This interest rate differential between U.S. and Japanese bonds makes the dollar a more attractive bet than the yen. The Australian do
Euro, sterling steady as traders look to Brexit progress Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-23  Authors: dan kitwood, getty images
Keywords: news, cnbc, companies, look, gauge, japanese, trading, traders, euro, progress, brexit, fed, markets, rate, traded, steady, meeting, dollar, sterling


Euro, sterling steady as traders look to Brexit progress

The euro and sterling edged higher against the dollar on Friday after Britain and the European Union agreed a draft text setting out their future relationship before a summit on Sunday.

Traders were cautiously optimistic about the draft declaration agreed by the United Kingdom and the European Commission which outlined how the trading relationship, security and other matters will work once the divorce is finalized.

The euro and sterling traded marginally higher on Friday, having advanced overnight by 0.2 percent and 0.8 percent respectively.

Traders are still waiting for more clarity around the Brexit deal as it faces a rocky ride once it reaches a deeply divided British parliament, with hardline euroskeptic and staunch pro-EU factions, and various shades of gray in-between.

“A full read through of the text suggests a lot of important details need to be clarified. ..this document is not convincing the market that it will pass through parliament,” said David de Garish, director economics and markets at NAB.

He said the market is still positioned with a short bias in the pound, so there is scope for a move of 5-10 percent if a breakthrough deal is achieved.

The dollar index, a gauge of its value versus six major peers, traded marginally lower at 96.46. Much of the weakness is due to the strength in the euro and sterling, which together constitute 70 percent of the index.

The dollar has lost ground for two consecutive trading sessions and is drifting lower from a 16-month high of 97.69 hit earlier this month.

Dollar skeptics are concerned about the pace of future interest rate increases by the U.S. Federal Reserve.

The Fed is expected to deliver its fourth rate hike of 2018 in December, but markets are trying to gauge how much tighter can policy get next year without risking a slowdown in the domestic economy, which has so far held up well even as borrowing costs have risen.

“The Fed is most likely to hike rates in December. I don’t see a shift in forward guidance at next month’s meeting as that would imply that a significant deterioration in economic activity is already taking place,” said De Garis.

The yen was fetching 112.96, little changed from its previous close. The Japanese currency has traded in an extremely narrow range with a soft bias over the last four trading sessions.

While the Fed is on a monetary tightening path, the Bank of Japan remains committed to its ultra loose monetary policy due to low growth and inflation. This interest rate differential between U.S. and Japanese bonds makes the dollar a more attractive bet than the yen.

According to some analysts, another factor supporting the dollar/yen is that Japanese investors remain heavily invested in U.S. and foreign assets.

The greenback was up 0.14 percent on the Canadian dollar, changing hands at $1.3206 as crude prices tumbled on supply glut fears. Canada is one of the largest oil exporters in the world.

The Australian dollar, often considered a gauge for global risk appetite weakened 0.08 percent to trade at $0.7251. Analysts expect the Aussie to remain subdued ahead of a meeting between U.S. and Chinese leaders at a G20 meeting in Argentina at the end of the month, with markets watching out for any signs on whether the two sides would agree to de-escalate their heated trade war.


Company: cnbc, Activity: cnbc, Date: 2018-11-23  Authors: dan kitwood, getty images
Keywords: news, cnbc, companies, look, gauge, japanese, trading, traders, euro, progress, brexit, fed, markets, rate, traded, steady, meeting, dollar, sterling


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Safe-haven dollar dips as risk appetite improves, euro strengthens

The dollar had been actively bid over the last two trading sessions as risk appetite receded on fears over a global growth slowdown and the U.S.-Sino trade conflict. The dollar index, a measure of its value versus six major peers, eased 0.1 percent to 96.62 on Thursday. The Japanese yen changed hands at 113, relatively unchanged for the day, after weakening over the last two trading sessions versus the dollar. The euro gained 0.12 percent versus the dollar to trade at $1.1397. The Australian dol


The dollar had been actively bid over the last two trading sessions as risk appetite receded on fears over a global growth slowdown and the U.S.-Sino trade conflict. The dollar index, a measure of its value versus six major peers, eased 0.1 percent to 96.62 on Thursday. The Japanese yen changed hands at 113, relatively unchanged for the day, after weakening over the last two trading sessions versus the dollar. The euro gained 0.12 percent versus the dollar to trade at $1.1397. The Australian dol
Safe-haven dollar dips as risk appetite improves, euro strengthens Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-22  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, fed, dips, risk, appetite, rate, versus, trading, trade, strengthens, safehaven, improves, euro, dollar, slowdown, sessions


Safe-haven dollar dips as risk appetite improves, euro strengthens

The dollar drifted lower in Asian trade on Thursday as demand for safe haven currencies remained subdued after a rebound in global equities, while the euro strengthened on hopes for a resolution of Italy’s budget dispute.

The dollar had been actively bid over the last two trading sessions as risk appetite receded on fears over a global growth slowdown and the U.S.-Sino trade conflict.

The dollar index, a measure of its value versus six major peers, eased 0.1 percent to 96.62 on Thursday. The index lost 0.13 percent in the previous trading session.

Analysts believe the medium-term direction of the dollar will be decided by the monetary tightening path of the Federal Reserve.

The Fed is expected to announce its fourth rate hike of 2018 in December, but investors are beginning to question how many rate hikes the Fed can implement next year without risking a slowdown in the U.S., which has held up well so far even as borrowing costs have risen.

According to a Reuters poll published on Tuesday, a median of analysts’ forecasts show three more increases next year, taking the federal funds rate to 3.00-3.25 percent by end-2019. But the third rate rise is a close call.

The poll also showed economists have increased the probability of a U.S. recession in the next two years to a median 35 percent.

“The Fed is widely expected to hike in December.. but this meeting is getting a lot more focus as market is looking for any change in forward guidance,” said Sim Moh Siong, currency strategist at Bank of Singapore.

Sim added that while Bank of Singapore’s house view was still for the Fed to hike four times in 2019, any change in the policymakers’ ‘dot plot’ projections would prompt significant repricing in the markets.

Last week, Fed Vice Chair Richard Clarida and Dallas Fed President Robert Kaplan raised concerns over a potential global slowdown that has markets betting heavily that the rate-hike cycle is on its last legs, even as the senior central bankers still signaled further interest rate increases ahead.

The Japanese yen changed hands at 113, relatively unchanged for the day, after weakening over the last two trading sessions versus the dollar.

Analysts expect dollar/yen to trade in the 111.5-114 range and move with the U.S. 10-year treasury bond yields.

While the Fed is on a monetary tightening path, the Bank of Japan looks set to maintain its ultra loose monetary policy for some time due to low growth and inflation. This interest rate differential between U.S. and Japanese bonds makes the dollar a more attractive bet than the yen.

The euro gained 0.12 percent versus the dollar to trade at $1.1397. The single currency gained 0.1 percent on Wednesday despite the European Union rejecting Italy’s fiscal plans for failing to comply with euro zone rules.

Traders were relieved after Italian Prime Minister Giuseppe Conte expressed concern about the government bond spread and pledged reforms.

The euro has risen in six out of the last seven sessions but analysts said it remained vulnerable to political risks from Italy.

“The situation remains pretty tense but there are incentives from both sides to reach a compromise. ..that’s why the market remains hopeful,” added Sim.

The next cue for euro traders would be PMI data from France and Germany due on Friday.

Elsewhere, the British pound was little changed at $1.2775 as traders await clarity on the progress of a Brexit agreement.

“Until an agreement is reached, sterling will remain under pressure because with each passing day, the risk of a no deal Brexit grows,” said Kathy Lien, managing director of currency strategy at BK Asset Management in a note.

The Australian dollar, often considered a gauge for risk appetite, lost 0.17 percent to quote at $0.7249 as Asian equities trimmed earlier gains.


Company: cnbc, Activity: cnbc, Date: 2018-11-22  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, fed, dips, risk, appetite, rate, versus, trading, trade, strengthens, safehaven, improves, euro, dollar, slowdown, sessions


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