Greece is ‘now among the top performers in the euro zone,’ IMF says

Greece, the euro zone economy that suffered the most during the sovereign debt crisis and a country with the highest debt and unemployment, is now “among the top performers in the euro zone,” according to the International Monetary Fund (IMF). In a new report on the Greek economy, the IMF – which was one of Greece’s principal lenders in bailouts during its economic crisis – said Greece had made positive economic progress. We expect growth to accelerate to nearly 2.5 percent this year from around


Greece, the euro zone economy that suffered the most during the sovereign debt crisis and a country with the highest debt and unemployment, is now “among the top performers in the euro zone,” according to the International Monetary Fund (IMF). In a new report on the Greek economy, the IMF – which was one of Greece’s principal lenders in bailouts during its economic crisis – said Greece had made positive economic progress. We expect growth to accelerate to nearly 2.5 percent this year from around
Greece is ‘now among the top performers in the euro zone,’ IMF says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: holly ellyatt, angelos tzortzinis, bloomberg, getty images
Keywords: news, cnbc, companies, economy, greece, euro, european, expect, economic, growth, zone, performers, positive, report, imf


Greece is 'now among the top performers in the euro zone,' IMF says

Greece, the euro zone economy that suffered the most during the sovereign debt crisis and a country with the highest debt and unemployment, is now “among the top performers in the euro zone,” according to the International Monetary Fund (IMF).

In a new report on the Greek economy, the IMF – which was one of Greece’s principal lenders in bailouts during its economic crisis – said Greece had made positive economic progress.

“There are a lot of positive developments to point to. We expect growth to accelerate to nearly 2.5 percent this year from around 2 percent in 2018. This puts Greece in the upper tier of the euro zone growth table,” the IMF’s mission chief for Greece Peter Dohlman said in a report Tuesday.

“The government is meeting its ambitious fiscal targets agreed with European member states, though not without some cost to growth. Market access has been re-established with two successful government bond issuances this year.”

“We also see normalization in other areas. For example, customers are now free to move their cash to any bank in Greece, and the banks themselves have almost fully repaid emergency liquidity assistance provided by the European Central Bank. Over the medium-term, we expect growth to gradually moderate as the economy reaches full employment,” he added.


Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: holly ellyatt, angelos tzortzinis, bloomberg, getty images
Keywords: news, cnbc, companies, economy, greece, euro, european, expect, economic, growth, zone, performers, positive, report, imf


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ECB in panic mode? Experts warn it’ll take more than a central bank to help Europe recover

New monetary stimulus from the European Central Bank (ECB) will do “little” to boost the region’s sluggish economy and tackle its biggest risks, analysts told CNBC. ECB President Mario Draghi said that interest rates would remain at record lows at least until December. Growth forecasts for the euro zone were slashed for this year and new loans to euro zone banks were announced. “(The announcements) are also a bit of a gamble as they will do very little to tackle the biggest risks for the euro zo


New monetary stimulus from the European Central Bank (ECB) will do “little” to boost the region’s sluggish economy and tackle its biggest risks, analysts told CNBC. ECB President Mario Draghi said that interest rates would remain at record lows at least until December. Growth forecasts for the euro zone were slashed for this year and new loans to euro zone banks were announced. “(The announcements) are also a bit of a gamble as they will do very little to tackle the biggest risks for the euro zo
ECB in panic mode? Experts warn it’ll take more than a central bank to help Europe recover Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-08  Authors: silvia amaro, -christoph schon, executive director at axioma
Keywords: news, cnbc, companies, mode, stimulus, central, experts, tackle, euro, ecbs, warn, panic, told, risks, recover, europe, little, ecb, help, zone, economy, itll


ECB in panic mode? Experts warn it'll take more than a central bank to help Europe recover

New monetary stimulus from the European Central Bank (ECB) will do “little” to boost the region’s sluggish economy and tackle its biggest risks, analysts told CNBC.

“(The ECB’s) announcements have some flavor of panic as the ECB’s base case scenario still foresees a gradual recovery and the 2020 and 2021 forecasts were hardly revised downwards,” Carsten Brzeski, chief economist at ING Germany, said in a note Thursday.

The Frankfurt-based institution surprised markets with a renewed dovish tone. ECB President Mario Draghi said that interest rates would remain at record lows at least until December. Growth forecasts for the euro zone were slashed for this year and new loans to euro zone banks were announced.

“The measures as such are not such a big surprise but the timing of the announcement is,” Brzeski added. “(The announcements) are also a bit of a gamble as they will do very little to tackle the biggest risks for the euro zone economy, which according to the ECB stem from external sources.”

Draghi even acknowledged this fact in a press conference following the ECB’s formal rate decision on Thursday. “We are aware that our decisions (new stimulus) certainly increase the resilience of the euro zone economy, but actually can they address these factors that are weighing on the euro zone economy in the rest of the world? They cannot,” Draghi told reporters, adding that protectionism and geopolitics were among those outside risks.


Company: cnbc, Activity: cnbc, Date: 2019-03-08  Authors: silvia amaro, -christoph schon, executive director at axioma
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Euro zone banks jump, Italian yields fall on report ECB discussing new cheap bank loans

Euro zone bank shares jumped and Italian government bond yields fell on Wednesday after Bloomberg reported the European Central Bank is holding discussions on the design of new ultra-cheap bank loans. The loans known more formally as Targeted Long-Term Refinancing Operations (TLTROs) are expected to boost troubled euro zone lenders. The euro zone banks index rose to a day’s high, up 0.2 percent. Italian government bond yields also briefly extended falls as investors cheered the report. The euro


Euro zone bank shares jumped and Italian government bond yields fell on Wednesday after Bloomberg reported the European Central Bank is holding discussions on the design of new ultra-cheap bank loans. The loans known more formally as Targeted Long-Term Refinancing Operations (TLTROs) are expected to boost troubled euro zone lenders. The euro zone banks index rose to a day’s high, up 0.2 percent. Italian government bond yields also briefly extended falls as investors cheered the report. The euro
Euro zone banks jump, Italian yields fall on report ECB discussing new cheap bank loans Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-06
Keywords: news, cnbc, companies, fell, bond, italian, yield, euro, ultracheap, loansthe, twoweek, jump, loans, fall, ecb, bank, zone, report, yields, discussing


Euro zone banks jump, Italian yields fall on report ECB discussing new cheap bank loans

Euro zone bank shares jumped and Italian government bond yields fell on Wednesday after Bloomberg reported the European Central Bank is holding discussions on the design of new ultra-cheap bank loans.

The ECB meets on Thursday amid speculation that it is getting ready for a fresh round of stimulus via cheap bank loans.

The loans known more formally as Targeted Long-Term Refinancing Operations (TLTROs) are expected to boost troubled euro zone lenders. The euro zone banks index rose to a day’s high, up 0.2 percent.

Italian government bond yields also briefly extended falls as investors cheered the report. Italy’s 10-year government bond yield touched its lowest level in just over a month at 2.661 percent and was last down 4 basis points on the day.

The euro fell to a two-week low at around $1.12855.


Company: cnbc, Activity: cnbc, Date: 2019-03-06
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ECB set to lower its outlook and could hint at new cheap loans for banks

When the European Central Bank’s (ECB) top officials meet Thursday, there is no way that they can ignore the worsening economic picture across the euro zone. Indeed, shares of euro zone banks jumped Wednesday after Bloomberg reported the central bank is holding discussions on the design of these new ultra-cheap bank loans. The euro zone economy continued its lowest pace of growth in four years during the final three months of 2018, data showed in January. The debate about whether it makes sense


When the European Central Bank’s (ECB) top officials meet Thursday, there is no way that they can ignore the worsening economic picture across the euro zone. Indeed, shares of euro zone banks jumped Wednesday after Bloomberg reported the central bank is holding discussions on the design of these new ultra-cheap bank loans. The euro zone economy continued its lowest pace of growth in four years during the final three months of 2018, data showed in January. The debate about whether it makes sense
ECB set to lower its outlook and could hint at new cheap loans for banks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: annette weisbach, francois lenoir
Keywords: news, cnbc, companies, deposit, economy, euro, week, outlook, central, rate, hint, loans, lower, banks, ecb, bank, zone, set, cheap


ECB set to lower its outlook and could hint at new cheap loans for banks

When the European Central Bank’s (ECB) top officials meet Thursday, there is no way that they can ignore the worsening economic picture across the euro zone.

There’s even a chance they may highlight a potential policy response for the downturn, with uncertainties such as the U.S.-China trade war and Brexit still clouding the economic horizon.

This could be a renewal of its targeted long-term financing operations (TLTROs) for banks — these are multi-year cheap loans for the lenders — or even the lifting of the ECB’s deposit rate — the charge it gives to banks to hold cash — which could help them on the cost side.

Indeed, shares of euro zone banks jumped Wednesday after Bloomberg reported the central bank is holding discussions on the design of these new ultra-cheap bank loans.

“Upon significantly downgrading its near-term projections, the ECB will probably leave the more policy-relevant forecasts for the medium-term (2021) completely untouched,” said Florian Hense, an economist with Berenberg, in a research note.

“The ECB could announce this week, or in April, that it will offer a new round of longer-term funding for banks,” he added.

The euro zone economy continued its lowest pace of growth in four years during the final three months of 2018, data showed in January. However, some economists believe the current weakness in the euro area is just temporary, and the economy will pick up again during the course of this year.

Factors behind this reasoning include the recent German sluggishness, which they say is largely attributable to a car sector being weighed down by new emissions tests. There’s also the prospect of an agreement between China and the U.S. in their lingering trade dispute which could quickly boost sentiment across the globe.

But, clearly there’s the possibility of it all going wrong: No agreement between the EU and the U.K., a no-deal Brexit and an economy which will go from bad to worse.

So, for now even the biggest hawks do favor a “wait and see” approach.

The ECB ended its massive bond-buying program at the end of last year and is still set to start raising rates at the end of this summer. The debate about whether it makes sense to actually lift its deposit rate has already begun. Some believe that now could be the time when the actual benefits of having a negative deposit rate (it’s at -0.4 percent currently) could be outweighed by the costs it gives to banks.

Nonetheless, the most likely first step to counter an unwanted tightening would be a fresh round of TLTROs.

“Approximately 380 billion euros ($430 billion) in TLTROs — cheap loans that the ECB provided to banks — are set to mature in June 2020,” said Franck Dixmier, the global head of fixed income with Allianz Global Investors.

“Without a new liquidity program in place, the TLTRO repayments in 2020 would have a negative impact on the ECB’s balance sheet and lead to a significant tightening of monetary conditions.”

Economists are divided as to whether we will get any announcement this week or only in April. But it seems to be a given that the euro zone’s central bank will provide some sort of bridge financing for the region’s lenders.


Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: annette weisbach, francois lenoir
Keywords: news, cnbc, companies, deposit, economy, euro, week, outlook, central, rate, hint, loans, lower, banks, ecb, bank, zone, set, cheap


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Italy’s finance chief says Rome’s biggest problem is investor confidence

Investor confidence is the biggest problem that Italy is facing, the country’s finance minister told Class-CNBC Monday. The euro zone’s third largest economy has struggled to convince investors that it is on a sustainable fiscal path. Since the anti-establishment government came into power last June, concerns have risen about Italy’s ability to repay its debts. “I think investor confidence is Italy’s biggest problem. But confidence can be restored,” Giovanni Tria, Italy’s finance minister told C


Investor confidence is the biggest problem that Italy is facing, the country’s finance minister told Class-CNBC Monday. The euro zone’s third largest economy has struggled to convince investors that it is on a sustainable fiscal path. Since the anti-establishment government came into power last June, concerns have risen about Italy’s ability to repay its debts. “I think investor confidence is Italy’s biggest problem. But confidence can be restored,” Giovanni Tria, Italy’s finance minister told C
Italy’s finance chief says Rome’s biggest problem is investor confidence Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: silvia amaro, simona granati, corbis news, getty images
Keywords: news, cnbc, companies, chief, italy, tria, told, euro, finance, problem, yield, think, romes, italys, confidence, biggest, debt, investor


Italy's finance chief says Rome's biggest problem is investor confidence

Investor confidence is the biggest problem that Italy is facing, the country’s finance minister told Class-CNBC Monday.

The euro zone’s third largest economy has struggled to convince investors that it is on a sustainable fiscal path. Since the anti-establishment government came into power last June, concerns have risen about Italy’s ability to repay its debts.

This is because the coalition government has increased public spending and Rome is already dealing with the second highest debt pile in the euro area – at about 130 percent of debt- to-GDP.

These concerns have been mirrored into rising yields on Italian government debt – the higher the yield, the riskier the investment is perceived. For instance, the yield on the 10-year Italian paper peaked last May from below 2 percent to about 3 percent in a matter of days, on the back of the possibility that two anti-establishment parties were about to take power. The same yield is now trading at about 2.7 percent – still one of the highest in the euro area.

“I think investor confidence is Italy’s biggest problem. But confidence can be restored,” Giovanni Tria, Italy’s finance minister told CNBC.

“I see a lot of international appreciation for Italy’s industrial system and for our economy. We need to boost our own domestic morale even in the shot-term, but I think that our basis is very strong,” Tria, who is a technocrat and not a member of any of the coalition parties, said.

Data from the Ifo Institute showed last month that investor sentiment in the 19 member region dropped to its lowest level in more than four years. Out of eight euro zone countries analyzed, Italy registered the weakest level of economic climate.

The numbers point to a tough ride ahead for Italy, especially after Rome fell into recession in the last quarter of 2018.


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: silvia amaro, simona granati, corbis news, getty images
Keywords: news, cnbc, companies, chief, italy, tria, told, euro, finance, problem, yield, think, romes, italys, confidence, biggest, debt, investor


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French court fines UBS 4.5 billion euros in tax fraud case

A French court on Wednesday found Swiss bank UBS AG guilty of illegally soliciting clients in France and laundering the proceeds of tax evasion, and ordered it to pay 4.5 billion euros ($5.10 billion) in penalties. The penalties, almost equivalent to the bank’s net profit last year, included a 3.7 billion euro fine and additional damages of 800 million euros to the French state. UBS has set aside $2.46 billion to cover potential losses from litigation and regulatory requirements. The French tria


A French court on Wednesday found Swiss bank UBS AG guilty of illegally soliciting clients in France and laundering the proceeds of tax evasion, and ordered it to pay 4.5 billion euros ($5.10 billion) in penalties. The penalties, almost equivalent to the bank’s net profit last year, included a 3.7 billion euro fine and additional damages of 800 million euros to the French state. UBS has set aside $2.46 billion to cover potential losses from litigation and regulatory requirements. The French tria
French court fines UBS 4.5 billion euros in tax fraud case Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: fabrice coffrini, afp, getty images
Keywords: news, cnbc, companies, fines, court, french, 45, net, billion, case, million, ubs, fine, tax, profit, euros, euro, fraud


French court fines UBS 4.5 billion euros in tax fraud case

A French court on Wednesday found Swiss bank UBS AG guilty of illegally soliciting clients in France and laundering the proceeds of tax evasion, and ordered it to pay 4.5 billion euros ($5.10 billion) in penalties.

Shares in UBS fell 2 percent. A lawyer for UBS said the bank would appeal the ruling.

The penalties, almost equivalent to the bank’s net profit last year, included a 3.7 billion euro fine and additional damages of 800 million euros to the French state.

UBS has denied any wrongdoing. An appeal could see the case drag on for years, analysts say.

UBS has set aside $2.46 billion to cover potential losses from litigation and regulatory requirements.

The French trial follows a similar case in the United States, where UBS accepted a $780 million settlement in 2009, and in Germany, where it agreed to a 300 million euro fine in 2014. UBS last month reported a 2018 net profit of $4.9 billion.

($1 = 0.8821 euros)


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: fabrice coffrini, afp, getty images
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Dollar slips on US-China trade hopes, Swedish crown sags

“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45. Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year. The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a


“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45. Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year. The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a
Dollar slips on US-China trade hopes, Swedish crown sags Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: matt cardy i getty images
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Dollar slips on US-China trade hopes, Swedish crown sags

The dollar on Tuesday fell against a basket of other currencies as traders scaled back their safe-haven greenback holdings on optimism that a fresh round of talks between China and the United States would help resolve their trade conflict.

The dollar index hit a near two-month peak on Friday after last week’s set of negotiations in Beijing failed to result in a deal, although officials from both sides said the talks had produced progress on contentious issues.

“We are hoping to hear more positive news on trade,” said Dean Popplewell, chief currency strategist at Oanda in Toronto. “The dollar should come under pressure as it loses some safe-haven appeal.”

The ICE index, which tracks the dollar against six other major currencies, was down 0.47 percent at 96.45.

On Friday, it hit 97.368, which was the highest since Dec. 17. U.S. financial markets were closed on Monday for the Presidents Day holiday.

Among other major currencies, the Swedish crown tumbled after weak inflation data spurred sales of the currency and a paring of bets that interest rates would rise this year.

Last week, the crown rose after Sweden’s central bank broke with growing caution among major monetary-policy makers, saying it would stick to its plan to raise rates in the second half of 2019.

The currency plunged more than 1 percent to a two-year low against the dollar at 9.4180, after a report showed inflation slowed in January.

Against the euro, it was headed for its biggest daily decline in more than 15 months. It touched 10.621, its weakest since September.

The euro appreciated against the dollar on trade optimism. It reversed earlier losses after data showed Italian industrial orders dropped 5.3 percent in December from a year earlier.

Euro zone bond yields, notably those of German bunds, fell amid the cloudy European economic outlook, weighing on the euro. When European Central Bank policymakers meet on March 7, they are expected to lower growth and inflation projections.

The euro was up 0.37 percent at $1.135, holding above a three-month low of $1.1234 set last week.

The single currency, however, fell against the British pound as data showed domestic workers’ salaries held at its fastest pace in a decade in late 2018.

The euro was 0.62 percent lower at 86.99 pence, while the pound was up 1.08 percent at $1.306. The sterling’s gains were limited ahead of British Prime Minister’s Theresa May’s meeting with the EU to find a way to get their Brexit deal through the UK parliament.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: matt cardy i getty images
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Trump will get the weak dollar he likes from a China trade deal but not if he goes after Europe

A trade deal with China could stop the dollar’s rise, but it may not stay down if President Donald Trump then turns his focus to tariffs on European cars. Everybody is just kind of waiting for some solution, whether it’s Brexit, Trump China trade issues, some of the broader discussions around trade.” The euro, in the meantime, has been responding to weakness in European data, concerns about Brexit and trade uncertainty. Trade experts have said the U.S. will likely reach a China deal before turni


A trade deal with China could stop the dollar’s rise, but it may not stay down if President Donald Trump then turns his focus to tariffs on European cars. Everybody is just kind of waiting for some solution, whether it’s Brexit, Trump China trade issues, some of the broader discussions around trade.” The euro, in the meantime, has been responding to weakness in European data, concerns about Brexit and trade uncertainty. Trade experts have said the U.S. will likely reach a China deal before turni
Trump will get the weak dollar he likes from a China trade deal but not if he goes after Europe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: patti domm, beawiharta
Keywords: news, cnbc, companies, china, goes, european, tariffs, euro, dollar, deal, trump, europe, data, global, likes, trade, weak


Trump will get the weak dollar he likes from a China trade deal but not if he goes after Europe

A trade deal with China could stop the dollar’s rise, but it may not stay down if President Donald Trump then turns his focus to tariffs on European cars.

U.S. trade negotiators are in China this week, and stocks and risk assets have risen on optimism that a deal will be reached and that Trump will not impose new sanctions on the March 1 deadline, if talks are continuing. At the same time, the dollar has moved higher, after a series of more positive U.S. data, including Thursday’s CPI.

“When you look around the world, that seems to be where the big economic risks are emanating from. The U.S. economy is slowing, but it’s still growing above trend,” said Marc Chandler, Bannockburn Global Forex chief market strategist. “The dollar has gone up every day, except for one, since the jobs data, and that’s right after the Fed sounded so dovish.”

The dollar index has risen 8.4 percent over the past year, boosted by concerns that trade wars and tariffs will harm the global economy. But recently, its rise has been fueled by the economic data, after January’s robust jobs report reduced worries about a recession. Trump has said in the past that a strong dollar hurts the U.S. while other countries manipulate their currencies, but other administration officials have backed a stronger dollar.

Strategists say the initial reaction in the dollar, should the U.S. and China come up with a trade deal, would be a decline, as emerging market currencies jump and the euro gains, at least in the short term.

But the Commerce Department is soon expected to release the results of its study of the global automobile industry, through the prism of national security concerns, and many analysts believe it will recommend tariffs on European vehicles. The report is expected Feb. 17, and the administration would then have 90 days to act on it.

Mark McCormick, TD Securities head currency strategist, said the euro could head to the top of its recent range, to about $1.16 after a China deal. “If there are European tariffs, we’re going to 1.10,” he said. Euro/dollar was at 1.1264 Wednesday.

“The markets are trying to price different outcomes, and they’re all overshooting because nobody has any conviction on what to do on any asset class,” said McCormick, of the effect of trade wars. “It weakens global growth. It impacts U.S. multinationals’ operations. It impacts local economies. It changes the trajectory of monetary policy. It becomes a very challenging environment to build scenarios around. Everybody is just kind of waiting for some solution, whether it’s Brexit, Trump China trade issues, some of the broader discussions around trade.”

The euro, in the meantime, has been responding to weakness in European data, concerns about Brexit and trade uncertainty. Trade experts have said the U.S. will likely reach a China deal before turning its sights on Europe and then Trump may well impose tariffs.

“Auto tariffs would hit the euro zone very sharply. That would be a negotiating tactic. I think the problem with this again is you might have a very adverse reaction in global financial markets since that kind of thing would undermine the sustainability of that kind of approach,” said Ben Randol, G-10 foreign exchange strategist at Bank of America Merrill Lynch. “It just feeds the narrative of a generalized global trade uncertainty.”

The euro would dive on new tariffs, and the dollar would strengthen.

“The U.S. dollar goes up on issues of trade uncertainty because the rest of the world is hurt more,” said Randol.


Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: patti domm, beawiharta
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Trade friction, growth worries keep dollar near 2019 highs

The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal. “The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore. The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The single currency was relatively un


The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal. “The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore. The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The single currency was relatively un
Trade friction, growth worries keep dollar near 2019 highs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, highs, worries, central, friction, steady, euro, growth, talks, global, currency, near, week, trade, bank, dollar, 2019


Trade friction, growth worries keep dollar near 2019 highs

The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal.

Investors are focusing on high level trade talks in China this week where Washington is expected to keep pressing Beijing on long-standing demands that it make sweeping structural reforms to protect American companies’ intellectual property, to end policies aimed at forcing the transfer of technology to Chinese companies, and curb industrial subsidies.

“The dollar is benefiting from the investor nervousness around the trade talks,” said Sim Moh Siong, currency strategist at Bank of Singapore.

“Beyond its safe haven appeal, the dollar is still the highest-yielding currency in the developed world and with all major central banks turning dovish, the greenback seems relatively attractive.”

This week’s talks come as the world’s two largest economies try to hammer out a deal before a March 1 deadline, after which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.

Financial markets have been roiled by the trade tensions over the past year, with business sentiment taking a hit around the world as the fallout of the .S.-China dispute disrupted factory activity and hurt global growth.

The greenback rose 0.1 percent against the yen to 110.47 and was a touch higher versus the Swiss franc at 1.0040.

The dollar index was steady at 97.04, after advancing 0.45 percent in the previous session, its largest percentage gain since Jan. 24. The index has risen for eight straight sessions, mainly thanks to a tumbling euro, which has the largest weighting in the index.

The single currency was relatively unchanged at $1.1278 in Asian trade, having lost nearly half a percent on Monday. The euro has weakened for six consecutive sessions, and traders expect further losses now that the crucial psychological support of $1.13 has been broken.

“The next level of support for EUR/USD is the November low of 1.1215 which should be tested quickly,” said Kathy Lien, managing director of currency strategy at BK Asset Management.

The European Central Bank is expected to maintain a highly accommodative monetary policy this year as growth slows in the euro zone and inflation stays low. Last week, the European Commission sharply cut its forecasts for euro zone growth for this year and next.

Investors are expecting stimulus from the ECB in the form of a cheap loan scheme for banks in the coming months.

Elsewhere, sterling was 0.15 percent firmer at $1.2869, after tumbling 0.75 percent in the previous session. Analysts expect the British pound to remain volatile due to the uncertainty surrounding Brexit.

The British parliament is set to hold a debate on Brexit on Feb. 14 where Prime Minister Theresa May is seeking changes to her deal with Brussels after it was rejected by a record majority in parliament last month.

The Australian dollar, often considered a gauge of global risk appetite, gained around 0.3 percent to $0.7083 as risk sentiment improved on expectations that U.S. lawmakers had reached a tentative deal on border security funding that would avert another partial government shutdown due to start on Saturday.

Traders expect the Aussie to remain under pressure after Reserve Bank of Australia Governor Philip Lowe tempered a long-held tightening bias last week, saying an easing might be just as likely as a hike.

The kiwi dollar was steady at $0.6730. New Zealand’s central bank is expected to leave interest rates unchanged at its policy meeting on Wednesday but may adopt a more dovish tone and cut forecasts, in line with other major central banks as rising global economic risks cloud the outlook.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, highs, worries, central, friction, steady, euro, growth, talks, global, currency, near, week, trade, bank, dollar, 2019


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Dollar near six-week highs as trade, growth worries ramp up

The dollar rose against most other currencies on Monday, holding near a six-week high as fresh worries about U.S.-Sino trade tensions and global growth drove appetite for safe-haven assets. “The Aussie dollar and the euro are at vulnerable levels right now and further dampening in risk sentiment can lead to further downside in these currencies.” Trade tensions between the world’s two largest economies have been a major driver of global investor sentiment over the past year. The strength in the d


The dollar rose against most other currencies on Monday, holding near a six-week high as fresh worries about U.S.-Sino trade tensions and global growth drove appetite for safe-haven assets. “The Aussie dollar and the euro are at vulnerable levels right now and further dampening in risk sentiment can lead to further downside in these currencies.” Trade tensions between the world’s two largest economies have been a major driver of global investor sentiment over the past year. The strength in the d
Dollar near six-week highs as trade, growth worries ramp up Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: dan kitwood, getty images
Keywords: news, cnbc, companies, trade, highs, sentiment, sixweek, near, global, versus, tensions, chinese, ramp, euro, worries, dollar, growth, yields, week


Dollar near six-week highs as trade, growth worries ramp up

The dollar rose against most other currencies on Monday, holding near a six-week high as fresh worries about U.S.-Sino trade tensions and global growth drove appetite for safe-haven assets.

“U.S.-China talks are the big focus for the week and the dollar strength is indicative of the cautious market sentiment right now owing to its safe-haven status,” said Nick Twidale, chief operating officer at Rakuten Securities.

“The Aussie dollar and the euro are at vulnerable levels right now and further dampening in risk sentiment can lead to further downside in these currencies.”

U.S. negotiators will this week press China on longstanding demands that it reform how it treats U.S. companies’ intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports.

The dollar gained 0.1 percent versus the yen to 109.82. However, traders expect moves in dollar/yen to be small on Monday as Japanese markets remain shut for a public holiday.

The dollar index, a gauge of its value versus six major peers, was marginally higher at 96.64, on track for its eighth straight day of gains.

Trade tensions between the world’s two largest economies have been a major driver of global investor sentiment over the past year. Market confidence took a hit last week when U.S. President Donald Trump said he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the two countries to achieve a trade deal.

Trump has vowed to increase U.S. tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent currently if the two sides cannot reach a deal by March 2.

The euro was marginally lower versus the greenback at $1.1322 in early Asian trade while the Aussie was 0.15 percent higher at $0.7099, after a disastrous week in which it lost 2.2 percent.

The strength in the dollar has come despite the Federal Reserve taking a dovish stance at its last policy meeting in January. For now, investors are piling into the safety of the greenback due to fears of a sharp global economic slowdown.

The euro came under pressure as core European government debt yields touched their lowest in over two years. The single currency has lost 2.5 percent so far this month.

Benchmark German yields were just 10 basis points away from zero percent.

The European Commission sharply cut on Thursday its forecasts for euro zone economic growth for this year and next with the bloc’s largest economies expected to be held back by global trade tensions and domestic challenges.

Last month, the International Monetary Fund also downgraded its forecasts for global growth.

Elsewhere, sterling was down 0.1 percent at $1.2935. Traders expect the pound to remain volatile amid heightened political uncertainty over the Brexit process.


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: dan kitwood, getty images
Keywords: news, cnbc, companies, trade, highs, sentiment, sixweek, near, global, versus, tensions, chinese, ramp, euro, worries, dollar, growth, yields, week


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