Fed pause expectations keep lid on dollar

Powell’s colleague Raphael Bostic, the Atlanta Fed President, added to the central bank’s dovish tone on Monday. “The Fed is listening to the market and has acknowledged flashing market signs,” said Sim Moh Siong, currency strategist at Bank of Singapore. “U.S. inflation has been well behaved so far and so the Fed does have room to pause on its rate hike cycle,” added Sim. The dollar had gained 4.3 percent in 2018 as the Fed hiked rates four times on the back of a strong domestic economy, fallin


Powell’s colleague Raphael Bostic, the Atlanta Fed President, added to the central bank’s dovish tone on Monday. “The Fed is listening to the market and has acknowledged flashing market signs,” said Sim Moh Siong, currency strategist at Bank of Singapore. “U.S. inflation has been well behaved so far and so the Fed does have room to pause on its rate hike cycle,” added Sim. The dollar had gained 4.3 percent in 2018 as the Fed hiked rates four times on the back of a strong domestic economy, fallin
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Fed pause expectations keep lid on dollar

The dollar struggled for traction against its peers on Tuesday, with investors increasingly convinced the Federal Reserve will not raise interest rates this year amid risks of a sharper slowdown in global growth.

The greenback was marginally firmer against the yen, after falling 0.2 percent earlier in the session as traders wagered that the monetary tightening cycle in the world’s largest economy has been halted for the year.

On Friday, Fed Chairman Jerome Powell told the American Economic Association the Fed is not on a preset path of rate hikes and it will be sensitive to the downside risks markets are pricing in.

Powell’s colleague Raphael Bostic, the Atlanta Fed President, added to the central bank’s dovish tone on Monday. Bostic, who is not a voting member of the Federal Open Market Committee this year, said the Fed may only need to raise rates once in 2019.

“The Fed is listening to the market and has acknowledged flashing market signs,” said Sim Moh Siong, currency strategist at Bank of Singapore.

“U.S. inflation has been well behaved so far and so the Fed does have room to pause on its rate hike cycle,” added Sim.

The dollar index was marginally higher, fetching 95.80 at 0244 GMT. Earlier in the session, it had hit an intra-day low of 95.68.

The index has lost around 2 percent since mid-December, and has followed a decline in U.S. bond yields as market participants have grown increasingly confident that the Fed will not hike rates in 2019.

The dollar had gained 4.3 percent in 2018 as the Fed hiked rates four times on the back of a strong domestic economy, falling unemployment and rising wage pressures.

But market expectations for further Fed tightening this year have shifted markedly in the last few months, with some traders now expecting even a rate cut this year.

Financial markets have been rattled by heightened worries about slowing global growth, especially in the United States and China, though data on Friday showed strong U.S. job growth.

Expectations of no further rate hikes this year are likely to keep the greenback under pressure.

The euro was down 0.2 percent at $1.1448, after touching an intra-day high of $1.1485. The single currency has gained around 1.3 percent over the last three trading sessions as the outlook towards the greenback weakened.

The euro’s recent strength has surprised some analysts as growth and inflation remain weak in the eurozone, well below European Central Bank forecasts.

“Having consolidated in a 200-pip range for a large part of the past 2 months, the pair is prime for a breakout,” said Kathy Lien, managing director of currency strategy at BKX Asset Management in a note.

The British pound changed hands at $1.2787, relatively unchanged from its previous close. Traders expect sterling to remain volatile over the next few weeks due to Brexit woes.

Britain’s Prime Minister Theresa May must win a vote in parliament to get her Brexit deal approved or risk seeing Britain’s exit from the European Union descend into chaos. The vote is now due to take place the week beginning Jan. 14.

May’s chances of winning the vote look slim as the DUP, the small Northern Irish party that usually props up her government, is opposed to the deal.

Elsewhere, the Australian dollar was lower by 0.15 percent at $0.7136. Despite its weakness on Tuesday, traders remain positive on the Aussie dollar over the short term.

Sentiment has been buoyed by aggressive stimulus measures in China, Australia’s largest importer of commodities, and also improved prospects for a U.S.-China trade deal.

U.S. Commerce Secretary Wilbur Ross predicted on Monday that Beijing and Washington could reach a trade deal that “we could live with”.


Company: cnbc, Activity: cnbc, Date: 2019-01-08  Authors: mark wilson, getty images
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Dollar edges lower as risk appetite grows

The dollar edged lower in thin year-end trading on Monday, as increased risk appetite weighed on demand for safe haven currencies, but the greenback remained on pace for its strongest annual performance in three years. The dollar index, which tracks the greenback versus the euro, yen, sterling and three other currencies, was down 0.2 percent on Monday. “We still rather think the U.S. dollar may be peaking after spending much of the past year on the offense,” said Osborne. The British pound has l


The dollar edged lower in thin year-end trading on Monday, as increased risk appetite weighed on demand for safe haven currencies, but the greenback remained on pace for its strongest annual performance in three years. The dollar index, which tracks the greenback versus the euro, yen, sterling and three other currencies, was down 0.2 percent on Monday. “We still rather think the U.S. dollar may be peaking after spending much of the past year on the offense,” said Osborne. The British pound has l
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Dollar edges lower as risk appetite grows

The dollar edged lower in thin year-end trading on Monday, as increased risk appetite weighed on demand for safe haven currencies, but the greenback remained on pace for its strongest annual performance in three years.

The dollar index, which tracks the greenback versus the euro, yen, sterling and three other currencies, was down 0.2 percent on Monday.

“The U.S. dollar is heading into the end of the calendar year on the defensive as global stocks bearing in mind that some markets are done for the year already perk up following positive comments on U.S.-China trade from President Trump,” Shaun Osborne, chief FX strategist at Scotiabank in Toronto, said in a note.

Share and commodity prices rose worldwide as hints of progress on the Sino-U.S. trade standoff provided optimism in what has been a punishing end of year for markets globally.

Risk sentiment brightened slightly when U.S. President Donald Trump said he held a “very good call” with China’s President Xi Jinping on Saturday to discuss trade and claimed “big progress” was being made.

The two nations have engaged in a trade war for much of 2018, shaking world financial markets as punitive tariffs disrupted the flow of hundreds of billions of dollars worth of goods between the world’s two largest economies.

The persistent tensions have boosted safe-haven demand for the greenback this year as investors bet that the United States is in better shape than its rivals to weather a trade war.

For the year, the index was up 4.5 percent, its best yearly percentage gain since 2015.

While the dollar has been relatively stable going into the end of 2018 despite falling U.S. Treasury yields, concerns are growing over the dollar’s outlook.

Expensive valuation, a flagging equity boom, waning cash repatriation by U.S. companies, and the possibility that the U.S. Federal Reserve will not raise interest rates as many times as previously signaled pose a challenge for the greenback.

“We still rather think the U.S. dollar may be peaking after spending much of the past year on the offense,” said Osborne.

Sterling, which has been battered this year by Brexit woes, rose 0.32 percent to a three-week high. The British pound has lost about 6 percent of its value versus the dollar this year.

The Australian dollar, seen as a proxy for Chinese growth because of Australia’s export-reliant economy, was 0.04 percent higher.


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Safe haven dollar firms on global slowdown fears, trade tensions

The dollar traded firm against major peers on Wednesday, extending overnight gains as investors shunned riskier assets in favour of safe haven currencies on escalating worries about slowing global growth and the U.S.-Sino trade war. “What’s driving currency markets right now are fears of a slowdown in economic growth with safe haven currencies like the dollar and yen likely to benefit,” said Michael McCarthy, chief markets strategist at CMC Markets. “For now, the dollar has retained its safe hav


The dollar traded firm against major peers on Wednesday, extending overnight gains as investors shunned riskier assets in favour of safe haven currencies on escalating worries about slowing global growth and the U.S.-Sino trade war. “What’s driving currency markets right now are fears of a slowdown in economic growth with safe haven currencies like the dollar and yen likely to benefit,” said Michael McCarthy, chief markets strategist at CMC Markets. “For now, the dollar has retained its safe hav
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Safe haven dollar firms on global slowdown fears, trade tensions

The dollar traded firm against major peers on Wednesday, extending overnight gains as investors shunned riskier assets in favour of safe haven currencies on escalating worries about slowing global growth and the U.S.-Sino trade war.

With sentiment souring and a global equities rout on Tuesday, risk averse traders sought shelter in the liquid dollar, which climbed from a two-week low hit earlier on Tuesday.

“What’s driving currency markets right now are fears of a slowdown in economic growth with safe haven currencies like the dollar and yen likely to benefit,” said Michael McCarthy, chief markets strategist at CMC Markets.

The greenback had been under pressure for most of this week as cautious comments by Federal Reserve officials and surprisingly weak U.S. economic data suggested the central bank could slow the pace of monetary policy tightening.

The dollar index, measuring performance against six major peers, was steady at 96.82 on Wednesday. The index gained 0.65 percent in the previous trading session.

“For now, the dollar has retained its safe haven attributes outperforming across the board in the overnight session,” said Rodrigo Catril, senior currency strategist at NAB, in a note.

With the Federal Reserve widely expected to raise interest rates by 25 basis points in December, analysts think the greenback could trade with a positive bias in the short term, despite lowering their longer-term rate hike expectations.

The yen traded at 112.91, with the greenback gaining 0.14 percent. The yen hit its highest level this month on Tuesday at 112.29 per dollar before losing steam as dollar bulls took charge.

Despite its safe haven status, the yen’s strength has been muted. Analysts suspect this is because Japanese investors have kept their money in U.S. and foreign markets, rather than bring it home.

The euro traded with a weak bias at $1.1372. The single currency lost 0.7 percent of its value on Tuesday.

Wider confidence retreated on Tuesday as Italian bank shares hit a two-year low and the spread between German and Italian bond yields widened.

Italy is at loggerheads with the European Commission and many fellow euro zone governments over its expansionary 2019 budget, which breaks EU’s fiscal rules.

“The potential for the a further tussle between Rome and Brussels can have an impact on the overall Eurozone economic growth, which will keep the euro under pressure,” added Michael McCarthy.

The British pound was little changed at $1.2786, having lost 0.5 percent versus the greenback on Tuesday. The pound is seen likely to trade sideways until the market gets more clarity on progress in the Brexit deal.

The Canadian dollar dropped to a four-month low versus the dollar to trade at 1.3305 as the price of crude fell to its lowest level in more than a year ahead of next month’s OPEC meeting. Canada is one of the world’s top oil exporters.

Elsewhere, the Australian dollar, often considered a barometer of risk appetite, staged a slight recovery along with U.S. equity futures, gaining 0.2 percent to trade at $0.7230. The Aussie dollar lost more than 1 percent on Tuesday as global risk sentiment worsened.


Company: cnbc, Activity: cnbc, Date: 2018-11-21  Authors: mark wilson, getty images
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Gold prices hold steady near a one-month low

Spot gold was little changed at $1,209.57 per ounce at 0121 GMT. On Friday, prices fell to their lowest since Oct. 11 at $1,206.13 per ounce. U.S. gold futures were up 0.3 percent at $1,211.7 per ounce. The dollar index, which measures the greenback against a basket of six major currencies, inched up 0.1 percent. Hedge funds and money managers cut their net short position in gold by 8,136 contracts to 37,486 contracts, Commodity Futures Trading Commission (CFTC) said on Friday.


Spot gold was little changed at $1,209.57 per ounce at 0121 GMT. On Friday, prices fell to their lowest since Oct. 11 at $1,206.13 per ounce. U.S. gold futures were up 0.3 percent at $1,211.7 per ounce. The dollar index, which measures the greenback against a basket of six major currencies, inched up 0.1 percent. Hedge funds and money managers cut their net short position in gold by 8,136 contracts to 37,486 contracts, Commodity Futures Trading Commission (CFTC) said on Friday.
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Gold prices hold steady near a one-month low

Spot gold was little changed at $1,209.57 per ounce at 0121 GMT. On Friday, prices fell to their lowest since Oct. 11 at $1,206.13 per ounce.

U.S. gold futures were up 0.3 percent at $1,211.7 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, inched up 0.1 percent. The greenback built on last week’s gains and rose towards a 16-month high.

Asian shares fell on Monday, extending weakness in global equity markets at the end of last week as soft Chinese economic data and falling oil prices rekindled anxiety about the outlook for world growth.

U.S. producer prices rose more than expected in October and at their fastest pace in six years but measures of underlying price pressure cooled, bolstering the view that the U.S. central bank is not facing a resurgence in inflation.

Former British foreign minister Boris Johnson called again on Sunday for Prime Minister Theresa May to change course on Brexit, accusing her of forcing through a deal to keep the country locked in the EU’s customs union in a “total surrender”.

Italy’s economy minister is looking to revise down the budget’s growth forecast for next year to try to reach a deal with the European Commission over fiscal policy, a government source said on Sunday.

China’s factory-gate inflation slowed for the fourth month in October on cooling domestic demand and manufacturing activity, signalling Beijing would likely roll out more growth-boosting measures in the face of trade frictions with the U.S.

Hedge funds and money managers cut their net short position in gold by 8,136 contracts to 37,486 contracts, Commodity Futures Trading Commission (CFTC) said on Friday.

Demand for physical gold gathered steam during a key festival week, shrugging off a recent downtrend going into the traditional busy wedding season, while other major Asian hubs saw limited activity.


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Dollar gains after US shares rise, yen slips as risk appetites improve

The dollar strengthened against most major peers on Wednesday, while the yen weakened as upbeat Wall Street earnings reduced global appetites for safe haven assets. The greenback was trading at 112.34 yen, a gain of 0.07 percent against the Japanese currency. Through Monday, when it hit a one-month high of 111.61, the yen had strengthened seven out of eight sessions. The New Zealand dollar traded flat versus the greenback, at 0.6589 on Wednesday. The Australian dollar, often considered a baromet


The dollar strengthened against most major peers on Wednesday, while the yen weakened as upbeat Wall Street earnings reduced global appetites for safe haven assets. The greenback was trading at 112.34 yen, a gain of 0.07 percent against the Japanese currency. Through Monday, when it hit a one-month high of 111.61, the yen had strengthened seven out of eight sessions. The New Zealand dollar traded flat versus the greenback, at 0.6589 on Wednesday. The Australian dollar, often considered a baromet
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Dollar gains after US shares rise, yen slips as risk appetites improve

The dollar strengthened against most major peers on Wednesday, while the yen weakened as upbeat Wall Street earnings reduced global appetites for safe haven assets.

The three main Wall Street indexes each rose by more than 2 percent as blue-chips delivered strong earnings indicating that the U.S. economic recovery is on track despite rising interest rates and global trade war tensions.

Data on Tuesday showed that U.S. industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output, but momentum slowed sharply in the third quarter

The dollar index, a gauge of its value against six major peers, rose 0.14 percent to quote at 95.18 on Wednesday.

The greenback was trading at 112.34 yen, a gain of 0.07 percent against the Japanese currency.

Through Monday, when it hit a one-month high of 111.61, the yen had strengthened seven out of eight sessions.

“The rebound in global sentiment has taken the appreciation pressure off the yen,” said Stuart Ritson, portfolio manager, emerging markets debt at Aviva Investors.

Market participants will be looking for clues on the dollar’s direction and the path ahead on U.S. interest-rate hikes from minutes of the Federal Reserve’s September meeting, due for release later on Wednesday.

Interest rate futures are pricing in a 77 percent likelihood that the Fed will again raise rates in December, according to the CME Group’s FedWatch Tool.

“The Fed is close to neutrality and the FOMC will pause when the Fed funds rate gets to 2.75 percent,” Brian Martin, ANZ head of global economics, said in a note.

“While there are upside risks to our forecasts, we think the Fed will struggle to raise the Fed funds target much beyond 3.0 percent,” he added.

The British pound was at $1.3175, down 0.1 percent, after tacking a gain of 0.25 percent on Tuesday.

While sterling was supported by Tuesday’s stronger than expected British employment data, investors are still doubtful that the European Union Summit on Wednesday will yield much progress on the Northern Island border issue blocking a Brexit agreement.

On Wednesday, the euro traded lower at $1.1560, down 0.1 percent. On Tuesday, the single currency reached $1.1622 – its highest since Oct. 1 – before giving up its gains.

The New Zealand dollar traded flat versus the greenback, at 0.6589 on Wednesday. The kiwi clocked a gain of 0.5 percent on Tuesday as domestic inflation picked up stronger than expected.

The Australian dollar, often considered a barometer of global risk appetite, lost 0.07 percent to US$0.7135. The Aussie has gained marginally against the greenback over the past two trading sessions. It hit a more than two-year low of US$0.7039 on Oct. 8.

Gold lost 0.16 percent to trade at $1,223 per ounce on Wednesday. The yellow metal hit its highest level since July 27 on Monday, hitting an intra-day high of $1,233 per ounce.


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Gold inches down as greenback firms against the yuan

Gold inched down on Tuesday from a two-week high hit in the previous session, as the dollar firmed against yuan, making the precious metal expensive for buyers in the world’s biggest consumer China. China’s central bank raised its daily guidance rate for the yuan by the most in nearly 15 months on Tuesday, sparking a demand for dollars. Spot gold fell 0.2 percent to $1,209.04 an ounce at 0358 GMT, after hitting its highest since Aug. 13 at $1,212.38 on Monday. U.S. gold futures were down 0.1 per


Gold inched down on Tuesday from a two-week high hit in the previous session, as the dollar firmed against yuan, making the precious metal expensive for buyers in the world’s biggest consumer China. China’s central bank raised its daily guidance rate for the yuan by the most in nearly 15 months on Tuesday, sparking a demand for dollars. Spot gold fell 0.2 percent to $1,209.04 an ounce at 0358 GMT, after hitting its highest since Aug. 13 at $1,212.38 on Monday. U.S. gold futures were down 0.1 per
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Gold inches down as greenback firms against the yuan

Gold inched down on Tuesday from a two-week high hit in the previous session, as the dollar firmed against yuan, making the precious metal expensive for buyers in the world’s biggest consumer China.

China’s central bank raised its daily guidance rate for the yuan by the most in nearly 15 months on Tuesday, sparking a demand for dollars.

Spot gold fell 0.2 percent to $1,209.04 an ounce at 0358 GMT, after hitting its highest since Aug. 13 at $1,212.38 on Monday.

U.S. gold futures were down 0.1 percent at $1,215.40 an ounce.

“The downtrend on the dollar has reversed, with markets probably concerned over the (currency) fixing in China. The market is still a little bit nervous overall when it comes to buying into the weaker U.S. dollar narrative,” said Stephen Innes, Asia-Pacific trading head at OANDA in Singapore.

The dollar index inched up 0.1 percent against a basket of six major currencies on Tuesday, after falling to a more than three-week low.

Gold has lost its appeal as a safe-haven asset, having fallen over 7 percent so far this year, amid international trade disputes and the Turkish currency crisis, with investors increasingly turning to the U.S. dollar instead.

The yellow metal, however, has recovered after touching 1-1/2-year lows on Aug. 16 at $1,159.60 as the dollar’s run slowed after President Donald Trump criticized the U.S. Federal Reserve for raising interest rates at a time when the government was trying to stimulate the economy.

“We need a complete flip around momentum in the U.S. dollar for gold to push above $1,230 and move to $1,260. Unless the Fed takes the December rate hike off the table, gold does not have a chance to get near any of those supportive levels,” Innes said.

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Spot gold may rise to $1,224 an ounce, as it has broken a resistance at $1,209 per ounce, according to Reuters technical analyst Wang Tao.

Spot silver was down 0.3 percent at $14.81, after hitting its highest since Aug. 15 at $14.92 on Monday.

Platinum was up 0.4 percent at $802.74, after touching a two-week high at $807.60.

Palladium fell 0.1 percent to $947.75. At $950.25, prices matched 1-1/2-month highs hit on Monday.


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Gold steady as dollar softens on Trump interest rate comments

Gold prices were steady on Monday near a one-week high as the dollar eased to its lowest in nearly two weeks after U.S. President Donald Trump criticized the Federal Reserve’s interest rate tightening policy. Spot gold held steady at $1,231 an ounce at 0738 GMT. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent at 94.340. “Comments over the weekend from Trump changed the environment somewhat, with the apparent push now to really weaken


Gold prices were steady on Monday near a one-week high as the dollar eased to its lowest in nearly two weeks after U.S. President Donald Trump criticized the Federal Reserve’s interest rate tightening policy. Spot gold held steady at $1,231 an ounce at 0738 GMT. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent at 94.340. “Comments over the weekend from Trump changed the environment somewhat, with the apparent push now to really weaken
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Gold steady as dollar softens on Trump interest rate comments

Gold prices were steady on Monday near a one-week high as the dollar eased to its lowest in nearly two weeks after U.S. President Donald Trump criticized the Federal Reserve’s interest rate tightening policy.

Spot gold held steady at $1,231 an ounce at 0738 GMT.

The yellow metal touched its highest since July 17 at $1,235.10, earlier in the session.

U.S. gold futures for August delivery were nearly unchanged at $1,231 an ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent at 94.340. It fell to its weakest since July 11 during the session.

“Comments over the weekend from Trump changed the environment somewhat, with the apparent push now to really weaken the U.S. dollar,” said ANZ analyst Daniel Hynes.

The dollar has been a significant headwind for gold over the past month or so. It opens up the possibility that we will not see that continued strength in the U.S. dollar, Hynes added.

A weaker greenback makes dollar-priced gold cheaper for buyers using other currencies.

Trump on Friday reinforced his criticism of the Federal Reserve’s policy on raising interest rates, saying it takes away from the United States’ ‘big competitive edge’ and could hurt the U.S. economy.

Meanwhile, the bullion, which usually gains from political and economic tensions has struggled this time around.


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Gold recovers from 7-month low as dollar eases

Gold prices recovered from a nearly seven-month low on Tuesday as dollar eased and Asian shares sank amid heightening trade friction between the United States and major economies. Spot gold was up 0.3 percent at $1,244.72 an ounce, as of 0843 GMT. Meanwhile, Asian shares hit a nine-month low on Tuesday on rising fears over tense trade relations between the United States and major economies, as Chinese markets saw another rocky day. The United States is set to place tariffs on $34 billion worth o


Gold prices recovered from a nearly seven-month low on Tuesday as dollar eased and Asian shares sank amid heightening trade friction between the United States and major economies. Spot gold was up 0.3 percent at $1,244.72 an ounce, as of 0843 GMT. Meanwhile, Asian shares hit a nine-month low on Tuesday on rising fears over tense trade relations between the United States and major economies, as Chinese markets saw another rocky day. The United States is set to place tariffs on $34 billion worth o
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Gold recovers from 7-month low as dollar eases

Gold prices recovered from a nearly seven-month low on Tuesday as dollar eased and Asian shares sank amid heightening trade friction between the United States and major economies.

Spot gold was up 0.3 percent at $1,244.72 an ounce, as of 0843 GMT. Earlier in the session, bullion prices dropped to $1,237.32, their lowest since Dec. 12, 2017.

U.S. gold futures rose 0.3 percent to $1,245.80 an ounce.

“While the greenback is slightly weaker today, there is a suspicion that the technical breakdown below the $1,246 support level encouraged bears to drive prices lower,” said Lukman Otunuga, research analyst, FXTM.

The dollar index, which measures the greenback against a basket of six major currencies, was 0.4 percent lower at 94.650, as of 0840 GMT.

A softer greenback generally decreases the cost of dollar-denominated bullion for investors paying in other currencies.

Meanwhile, Asian shares hit a nine-month low on Tuesday on rising fears over tense trade relations between the United States and major economies, as Chinese markets saw another rocky day. The United States is set to place tariffs on $34 billion worth of Chinese goods on July 6.

The U.S. Chamber of Commerce on Monday denounced U.S. President Donald Trump’s handling of global trade disputes, issuing a report that argued tariffs imposed by Washington and retaliation by its partners would boomerang badly on the American economy.

Gold prices can gain during times of uncertainty as it is seen as a safe place to park assets.

Key for the yellow metal would be support at $1,236, while resistance cuts in through $1,245 – $1,250, MKS PAMP Group trader Sam Laughlin said in a note.

In other precious metals, silver climbed 0.5 percent to $15.91 an ounce, while palladium dropped 0.2 percent to $942 per ounce.

Platinum slipped 0.2 percent to $814.30 an ounce.

Earlier in the session, it fell to the lowest since December 2008 at $793.

Autocatalyst metal platinum tumbled as the greenback strengthened, an intensifying U.S.-European Union trade spat pressured precious metals, and political risk in Germany weighed.


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Gold ticks up on soft dollar, investors cautious amid trade tensions

Gold edged higher on Wednesday, propped up by a weaker dollar, but it was unlikely to make asignificant move before an expected U.S. rate hike next week and amid trade tensions. Spot gold was up 0.1 percent at $1,296.96 per ounce at 0900 GMT while U.S. gold futures for August delivery dipped 0.1 percent to $1,300.90 per ounce. Once the rate decision has been taken, gold is likely to move higher, Hansen said. “There is potential for gold to follow the same pattern it’s taken after recent rate hik


Gold edged higher on Wednesday, propped up by a weaker dollar, but it was unlikely to make asignificant move before an expected U.S. rate hike next week and amid trade tensions. Spot gold was up 0.1 percent at $1,296.96 per ounce at 0900 GMT while U.S. gold futures for August delivery dipped 0.1 percent to $1,300.90 per ounce. Once the rate decision has been taken, gold is likely to move higher, Hansen said. “There is potential for gold to follow the same pattern it’s taken after recent rate hik
Gold ticks up on soft dollar, investors cautious amid trade tensions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-06-05
Keywords: news, cnbc, companies, rate, gold, cautious, hansen, end, week, taken, rose, higher, tensions, soft, greenback, dollar, investors, high, amid, trade, ticks


Gold ticks up on soft dollar, investors cautious amid trade tensions

Gold edged higher on Wednesday, propped up by a weaker dollar, but it was unlikely to make a

significant move before an expected U.S. rate hike next week and amid trade tensions.

Spot gold was up 0.1 percent at $1,296.96 per ounce at 0900 GMT while U.S. gold futures for August delivery dipped 0.1 percent to $1,300.90 per ounce.

“Investors are sitting on the fence, they only want to be involved when we break out of the range,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Gold was trapped between the 200-day moving average at around $1,308 and $1,286 on the downside, he added.

The case for hiking U.S. interest rates next week was bolstered on Tuesday when data showed U.S. services sector activity accelerated in May and job openings rose to a record high in April.

Gold, which is a non-interest-paying asset, could see demand take a hit from higher rates.

Once the rate decision has been taken, gold is likely to move higher, Hansen said. “There is potential for gold to follow the same pattern it’s taken after recent rate hikes: defensive before, only to rally afterwards.”

A softer greenback provided support to dollar-denominated gold after the euro rose to a 10-day high when European Central Bank officials said an end to the bank’s bond-buying program by the end of 2018 was plausible.

The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2 percent.


Company: cnbc, Activity: cnbc, Date: 2018-06-05
Keywords: news, cnbc, companies, rate, gold, cautious, hansen, end, week, taken, rose, higher, tensions, soft, greenback, dollar, investors, high, amid, trade, ticks


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Dollar stabilizes below last week’s highs, supported by data, yields

The dollar stabilized on Tuesday just below its six-month high of last week, as investors awaited data that might confirm the U.S. economy is on track for a strong June quarter with rising bond yields also supporting the greenback. Short-dated U.S. Treasury yields are up by roughly 20 basis points in a week pushing two-year government yields to 2.50 percent and within kissing distance of a decade high of 2.59 percent hit last month. With correlations between short-dated U.S. debt yields and the


The dollar stabilized on Tuesday just below its six-month high of last week, as investors awaited data that might confirm the U.S. economy is on track for a strong June quarter with rising bond yields also supporting the greenback. Short-dated U.S. Treasury yields are up by roughly 20 basis points in a week pushing two-year government yields to 2.50 percent and within kissing distance of a decade high of 2.59 percent hit last month. With correlations between short-dated U.S. debt yields and the
Dollar stabilizes below last week’s highs, supported by data, yields Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-06-04  Authors: frank van den bergh, getty images
Keywords: news, cnbc, companies, high, twoyear, stabilizes, week, yields, dollar, weeks, 2017, investors, greenback, data, treasury, track, supported, highs


Dollar stabilizes below last week's highs, supported by data, yields

The dollar stabilized on Tuesday just below its six-month high of last week, as investors awaited data that might confirm the U.S. economy is on track for a strong June quarter with rising bond yields also supporting the greenback.

Short-dated U.S. Treasury yields are up by roughly 20 basis points in a week pushing two-year government yields to 2.50 percent and within kissing distance of a decade high of 2.59 percent hit last month.

With correlations between short-dated U.S. debt yields and the dollar strengthening to their strongest since January 2017, investors have responded by buying the greenback in recent days, especially against the euro and emerging market currencies.

“The dollar is perched around some important levels and its strength can be judged from the fact that the euro/dollar has failed to break above the $1.17 line despite falling Italian political concerns,” said Kenneth Broux, a strategist at Societe Generale in London.

The greenback was firm at 94.04 against a basket of rivals. It had climbed to 95.02 last week, its highest since early November 2017, and has risen more than 5 percent since mid-April.


Company: cnbc, Activity: cnbc, Date: 2018-06-04  Authors: frank van den bergh, getty images
Keywords: news, cnbc, companies, high, twoyear, stabilizes, week, yields, dollar, weeks, 2017, investors, greenback, data, treasury, track, supported, highs


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