China fixes its daily yuan midpoint at 7.0312 — stronger than expected

China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level. The PBOC lets the


China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level. The PBOC lets the
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Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: weizhen tan huileng tan, weizhen tan, huileng tan
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China fixes its daily yuan midpoint at 7.0312 — stronger than expected

China’s central bank set the official midpoint reference for the yuan at 7.0312 per dollar on Wednesday — stronger than Tuesday’s fixing, and stronger than what analysts had predicted.

It was, still, the fifth consecutive session where the People’s Bank of China (PBOC) fixed the midpoint at a level weaker than the psychologically important 7-yuan-per-dollar mark.

Analysts were predicting the midpoint to be set at 7.0502 per dollar, according to Reuters estimates. The onshore yuan last traded at 7.0558 in Tuesday’s session, and on Wednesday morning around 10.00 a.m. HK/SIN was at 7.0236. The offshore yuan traded at 7.0397 against the dollar, slightly weaker than Tuesday’s close but stronger than the end of last week, when it hovered around the 7.09 level.

The yuan depreciated past 7 per dollar last week for the first time since the global financial crisis of 2008, which prompted the U.S. Treasury Department to designate China as a currency manipulator.

A weaker currency makes a country’s exports more attractive in international markets and U.S. President Donald Trump has complained that a cheaper yuan will give China a trade advantage.

The PBOC lets the currency’s spot rate trade with a range of 2% above or below the day’s official midpoint fix and this is known as the onshore yuan. The less restrictive exchange rate used outside mainland China is known as the offshore yuan.

Investors usually look at the difference between the onshore and offshore exchange rates to determine if the Chinese central bank is manipulating the yuan.

According to David Dollar, a Brookings Institution senior fellow, China is not manipulating its currency.

“Given the tariffs that the U.S. has imposed on China, it’s natural for the Chinese currency to depreciate. Most emerging market currencies are depreciating against the dollar if you look at the last half year or so,” he told CNBC on Wednesday.

Due to slowing growth and investment in China, the yuan could even continue to gradually weaken up to 7.2 against the dollar, said Max Lin, emerging markets Asia strategist at NatWest Markets.

Despite that, the possibility of investors moving their money out of China due to the weakening yuan is limited, he said.

“I don’t expect any capital flight concerns to actually occur, just because I think any kind of weakness from here on out would be very gradual. If there are signs of panic dollar buying onshore, I think at that point, the central bank of China would definitely step in to stabilize the yuan,” he told CNBC on “Squawk Box.”

— CNBC’s Saheli Roy Choudhury contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: weizhen tan huileng tan, weizhen tan, huileng tan
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Investor: I’m ‘fairly concerned’ about Hong Kong’s unrest

Investor: I’m ‘fairly concerned’ about Hong Kong’s unrest23 Hours AgoSat Duhra of Janus Henderson Investors says Hong Kong’s protests are becoming a “stronger” concern, but the U.S.-China trade war, Brexit and Fed policy are still “way ahead” in terms of global issues he worries about.


Investor: I’m ‘fairly concerned’ about Hong Kong’s unrest23 Hours AgoSat Duhra of Janus Henderson Investors says Hong Kong’s protests are becoming a “stronger” concern, but the U.S.-China trade war, Brexit and Fed policy are still “way ahead” in terms of global issues he worries about.
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Investor: I'm 'fairly concerned' about Hong Kong's unrest

Investor: I’m ‘fairly concerned’ about Hong Kong’s unrest

23 Hours Ago

Sat Duhra of Janus Henderson Investors says Hong Kong’s protests are becoming a “stronger” concern, but the U.S.-China trade war, Brexit and Fed policy are still “way ahead” in terms of global issues he worries about.


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One California police officer killed, two injured in Riverside gun battle

China fixes its yuan midpoint at 7.0326 per dollar, stronger than…Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates. China Economyread more


China fixes its yuan midpoint at 7.0326 per dollar, stronger than…Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates. China Economyread more
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One California police officer killed, two injured in Riverside gun battle

China fixes its yuan midpoint at 7.0326 per dollar, stronger than…

Analysts were predicting the midpoint to be set at 7.0421 per dollar after the yuan last traded at 7.0578 in Monday’s session, according to Reuters estimates.

China Economy

read more


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Dollar flat, sterling, euro tick up with market in August lull

The U.S. dollar index was roughly flat on Monday and sterling and the euro saw a modest rise as the foreign exchange market fell into an August lull, a traditionally quiet trading period with many investors and traders on vacation. The British pound was 0.37% higher to trade at $1.208, with the euro up 0.17% against the dollar at $1.1219. The dollar index was 0.1% lower at 97.390, having fallen earlier on expectations that a prolonged U.S.-China trade war would have a negative impact on American


The U.S. dollar index was roughly flat on Monday and sterling and the euro saw a modest rise as the foreign exchange market fell into an August lull, a traditionally quiet trading period with many investors and traders on vacation. The British pound was 0.37% higher to trade at $1.208, with the euro up 0.17% against the dollar at $1.1219. The dollar index was 0.1% lower at 97.390, having fallen earlier on expectations that a prolonged U.S.-China trade war would have a negative impact on American
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Dollar flat, sterling, euro tick up with market in August lull

The U.S. dollar index was roughly flat on Monday and sterling and the euro saw a modest rise as the foreign exchange market fell into an August lull, a traditionally quiet trading period with many investors and traders on vacation.

The British pound was 0.37% higher to trade at $1.208, with the euro up 0.17% against the dollar at $1.1219.

“It has been a pretty quiet day overall. We have had sterling and euro bubbling up. I don’t think there’s any particular super-positive news behind that. But, markets held substantial shorts in both currencies,” said Gregory Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York.

The currency market is “heading into the deepest part of the holiday period. People are taking the shorts off and it puts upward pressure on both currencies. It’s probably the biggest story in FX for today.”

The dollar index was 0.1% lower at 97.390, having fallen earlier on expectations that a prolonged U.S.-China trade war would have a negative impact on American economic growth.

The Japanese yen rose to its highest against the dollar since March 2018 – barring a flash crash in January this year – as investors ramped up bets that the safe-haven currency could gain more if the trade conflict is prolonged. It was last 0.38% stronger against the dollar at 105.26.

“The stronger yen was at or near 2019 highs against its U.S. counterpart on prospects of a long drawn-out U.S.-China trade war. The longer the trade war drags on, the more likely it would weigh (on) the global outlook and crimp the world economy, a negative for market morale,” said Joe Manimbo, senior market analyst at Western Union Business Solutions.

Goldman Sachs analysts on Sunday said they no longer expected Washington and Beijing to come to a trade agreement before the 2020 presidential election. They lowered their forecast for fourth-quarter U.S. growth and said the chances a protracted trade war would lead to recession were rising.

This week, market attention will be on Chinese retail sales and industrial output for July, due out on Wednesday, to gauge the trade war’s impact on domestic activity.

Investors will also be focused on the U.S. Federal Reserve’s annual symposium at Jackson Hole, Wyoming, later this month, seeking greater clarity on the future path of interest rates. Markets are expecting two to three additional rate cuts from the Fed by the end of the year.


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China sets its yuan midpoint at stronger than 7 per dollar

That important line is at seven yuan per dollar. In Monday’s Asian afternoon trading hours, the onshore currency changed hands at 7.0304 against the dollar, while the offshore yuan traded at 7.0807 against the greenback. On Tuesday morning, the People’s Bank of China set the yuan fixing at 6.9683. Given the 2% permitted trading band for the yuan, that means the spot rate for the currency against the dollar could rise to 7.1, according to Carnell. Markets around the world are closely watching the


That important line is at seven yuan per dollar. In Monday’s Asian afternoon trading hours, the onshore currency changed hands at 7.0304 against the dollar, while the offshore yuan traded at 7.0807 against the greenback. On Tuesday morning, the People’s Bank of China set the yuan fixing at 6.9683. Given the 2% permitted trading band for the yuan, that means the spot rate for the currency against the dollar could rise to 7.1, according to Carnell. Markets around the world are closely watching the
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China sets its yuan midpoint at stronger than 7 per dollar

After China’s currency weakened beyond a closely watched level on Monday, the country’s central bank set the yuan’s official reference point at stronger than that point on Tuesday.

That important line is at seven yuan per dollar. In Monday’s Asian afternoon trading hours, the onshore currency changed hands at 7.0304 against the dollar, while the offshore yuan traded at 7.0807 against the greenback.

On Tuesday morning, the People’s Bank of China set the yuan fixing at 6.9683. That was stronger than the 6.9736 that had been expected, according to a Reuters estimate.

Still, it was weaker than the 6.9225 parity level from Monday morning — and it’s the weakest since May 20, 2008, according to Reuters.

“Today’s fix at USDCNY 6.9683 comes close to the estimates published each day by some of those attempting to mirror how the PBoC sets its mid-point relative to its trading partners. But it is nonetheless quite a big move and about double the increase seen yesterday,” Robert Carnell, ING’s chief economist head of research for Asia Pacific, said in a morning note.

Given the 2% permitted trading band for the yuan, that means the spot rate for the currency against the dollar could rise to 7.1, according to Carnell.

“But the moves so far don’t look anything like this big, and it seems that some market participants were expecting the fix today to be even higher, so the actual result is ‘less unsupportive’ than some had imagined,” he added.

Markets around the world are closely watching the yuan’s position against the 7-per-dollar level after the U.S. declared China a currency manipulator on Monday.

Monday’s sharp weakening in the Chinese currency came after U.S. President Donald Trump unexpectedly announced fresh tariffs on Beijing last week, and so the yuan move was widely deemed a response from the Chinese side.

“I think this is clearly a retaliation that in the past China has refrained from doing,” Claudio Piron, co-head of Asia rates and foreign exchange strategy at Bank of America Merrill Lynch Global Research, told CNBC’s on Monday.

The next step after issuing the “manipulator” designation is for the U.S. to make its case to the International Monetary Fund, but that’s not likely to lead to formal penalties. The label is mostly symbolic and matters more as a slight to one of the United States’ biggest creditors and as an escalation in the ongoing Washington-Beijing trade war.

—Reuters and CNBC’s Thomas Franck and Eustance Huang contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-06  Authors: everett rosenfeld
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Thailand’s currency keeps getting stronger and that’s sparking concerns

That strength, however, is sparking concerns as the country’s domestic economy weakens, analysts said. Since the beginning of this year, Thailand’s currency has jumped more than 5% against the dollar. A stronger currency makes the country’s exports more expensive, causing them to be less attractive in international markets. Analysts at Singapore bank DBS said Monday that the strong baht is bad news for Thailand’s trade competitiveness. “While this should stem the appreciation pressure somewhat,


That strength, however, is sparking concerns as the country’s domestic economy weakens, analysts said. Since the beginning of this year, Thailand’s currency has jumped more than 5% against the dollar. A stronger currency makes the country’s exports more expensive, causing them to be less attractive in international markets. Analysts at Singapore bank DBS said Monday that the strong baht is bad news for Thailand’s trade competitiveness. “While this should stem the appreciation pressure somewhat,
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Thailand's currency keeps getting stronger and that's sparking concerns

The Thai baht has soared against the U.S. dollar this year, significantly more than many other emerging market currencies.

That strength, however, is sparking concerns as the country’s domestic economy weakens, analysts said.

Since the beginning of this year, Thailand’s currency has jumped more than 5% against the dollar. On a year-over-year basis, it has bounded even higher — nearly 8%.

Other top performing emerging market currencies in the region have also strengthened against the dollar — but still lag behind the baht. Both the Indonesian rupiah and the Philippine peso, for instance, have risen more than 3% against the dollar so far this year.

“Policymakers and exporters in Thailand are once again voicing concern about the strength of the baht,” Gareth Leather, senior Asia economist at research firm Capital Economics, wrote in a note earlier this month. “While most (emerging market) currencies have appreciated against the US dollar in recent months, none have risen by as much as the baht.”

The strength of the baht has been supported by Thailand’s large trade surplus and a hawkish central bank, among other factors.

“(The) strong currency is worsening the (Thai) economy’s plight by hurting exports further,” Prakash Sakpal, Asia economist at Dutch bank ING, told CNBC.

A stronger currency makes the country’s exports more expensive, causing them to be less attractive in international markets.

Analysts at Singapore bank DBS said Monday that the strong baht is bad news for Thailand’s trade competitiveness. They cited a study by the Bank of Thailand, which showed that, for every 1% the baht strengthened against the dollar, it increases export prices — in dollar terms — by 0.3%.

Meanwhile, exports are already declining. They dropped for the third straight month in May, falling 5.79% from a year earlier. That was worse than the 3.6% decrease analysts had projected in a Reuters poll.

On Tuesday, data showed the country’s manufacturing output for June headed the same way: It fell 5.54% from a year earlier, which was worse than the forecast of a 3.15% decline.

“Considering these weak trade trends, together with a challenging outlook for regional growth … a strong currency comes at an inopportune time,” DBS analysts wrote, referring to slowing exports and imports, as well as declining tourism.

The country’s central bank could give in to pressure and cut rates to curb the rising baht, economists said. Still, they were not optimistic about the effectiveness of such a move.

“The (Bank of Thailand) could consider a rate cut to help reduce the baht’s yield appeal, but it will be no panacea,” DBS analysts said in their note, adding that a cut of 25 basis points would just undo a hike by the central bank last December.

ING’s Sakpal similarly said that any cut would see limited results.

“While this should stem the appreciation pressure somewhat, we may not see the (baht) being displaced from its best-performer emerging currency status just yet,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-07-31  Authors: weizhen tan
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Fed’s Charles Evans says he’d be comfortable with ‘a couple’ rate cuts before the end of the year

Chicago Fed President Charles Evans said Tuesday that low inflation, along with economic uncertainty, indicate a need for up to two rate cuts before the end of 2019. He added that two rate cuts may not even be enough over the longer run as the Fed grapples with consistently low inflation as well as tensions over trade and a slowing global economy. In an interview with CNBC’s Steve Liesman, Evans said he would advocate multiple rate cuts, which market participants are widely expecting. “Unless I


Chicago Fed President Charles Evans said Tuesday that low inflation, along with economic uncertainty, indicate a need for up to two rate cuts before the end of 2019. He added that two rate cuts may not even be enough over the longer run as the Fed grapples with consistently low inflation as well as tensions over trade and a slowing global economy. In an interview with CNBC’s Steve Liesman, Evans said he would advocate multiple rate cuts, which market participants are widely expecting. “Unless I
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Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: jeff cox, laura wronski, senior research scientist, surveymonkey, jon cohen, chief research officer
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Fed's Charles Evans says he'd be comfortable with 'a couple' rate cuts before the end of the year

Chicago Fed President Charles Evans said Tuesday that low inflation, along with economic uncertainty, indicate a need for up to two rate cuts before the end of 2019.

Evans spoke Tuesday at CNBC’s @Work Human Capital + Finance Conference in Chicago.

He added that two rate cuts may not even be enough over the longer run as the Fed grapples with consistently low inflation as well as tensions over trade and a slowing global economy.

In an interview with CNBC’s Steve Liesman, Evans said he would advocate multiple rate cuts, which market participants are widely expecting.

“Unless I had great reason to think that that would somehow create a lot of inflation, yes, I think that’s right,” he said. “I think on the basis of inflation alone, I could feel confident in arguing for a couple of rate cuts before the end of the year.”

This comes shortly after Fed Chairman Jerome Powell said in Paris that the central bank remains committed to sustaining the economic expansion and will “act as appropriate” to see that through. The language has generally been interpreted as a tip toward a rate cut coming at the July 30–31 Federal Open Market Committee policy meeting.

Despite generally solid economic data, markets have been looking for rate cuts to keep competitive with other easing global central banks and a raft of “uncertainties,” as Powell put it, that are cropping up at home and abroad.

Evans, who is a voting member on the FOMC this year, emphasized the importance of getting inflation to the Fed’s 2% target, which it considers healthy for a growing economy, and said he would even like to see a slight overshoot.

“In order to get inflation up to 2.25% over the next three years, I need 50 basis points of more accommodation,” he said. “Maybe that’s not quite enough. I think that would increase inflation expectations, and that would help.”

It’s not just markets that have been clamoring for a rate cut. President Donald Trump also has been pressuring the Fed to ease up on policy and has said that without the nine rate hikes since December 2015, the economy would be much stronger than even its current above-trend pace.

Evans said it’s important that the Fed remain independent from political pressure, though he conceded that the economy might be running hotter without the rate hikes.

“It would have been stronger if we hadn’t raised rates — there can be an argument for that,” he said. “We’ve gotta be very careful on how you think about it, and there’s so much going on. I think the risk-management argument is a good one.”


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Gold rebounds to 2-week peak as US data boosts Fed rate cut hopes

Gold shook off headwinds from a stronger dollar to scale a near two-week peak on Thursday as data pointed to easing inflationary pressure in the United States, boosting expectations of a further interest rate cut by the Federal Reserve. Spot gold gained 0.6% to $1,287.80 per ounce, having hit a high of $1,288.87 earlier, its highest since May 17. Gold also shrugged off initial pressure from a stronger dollar, with the U.S. unit hovering within striking distance of a two-year high against a baske


Gold shook off headwinds from a stronger dollar to scale a near two-week peak on Thursday as data pointed to easing inflationary pressure in the United States, boosting expectations of a further interest rate cut by the Federal Reserve. Spot gold gained 0.6% to $1,287.80 per ounce, having hit a high of $1,288.87 earlier, its highest since May 17. Gold also shrugged off initial pressure from a stronger dollar, with the U.S. unit hovering within striking distance of a two-year high against a baske
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Gold rebounds to 2-week peak as US data boosts Fed rate cut hopes

Gold shook off headwinds from a stronger dollar to scale a near two-week peak on Thursday as data pointed to easing inflationary pressure in the United States, boosting expectations of a further interest rate cut by the Federal Reserve.

Spot gold gained 0.6% to $1,287.80 per ounce, having hit a high of $1,288.87 earlier, its highest since May 17.

The metal reversed course from earlier in the session, when it fell to its lowest level since May 23 at $1,274.44.

U.S. gold futures settled up $6.10 at $1,292.40.

While data showed strong growth in gross domestic product in the first quarter, a gauge of inflation tracked by the Federal Reserve increased at a 1.0% rate last quarter, instead of the previously reported 1.3% pace. Manufacturing, retail sales, housing and exports also dropped in April.

Fed policymakers are likely to shrug off the last quarter’s growth spurt and focus on the weak domestic demand and inflation when they meet next month.

“The core PCE came in weaker than expected and is helping gold on the margin since it reaffirms this market’s belief that the next move from the Fed is a cut, which tends to lower the opportunity cost for holding non-cash flow yielding assets like gold,” said Daniel Ghali, commodity strategist at TD Securities.

Gold also shrugged off initial pressure from a stronger dollar, with the U.S. unit hovering within striking distance of a two-year high against a basket of major currencies.

“Gold has held up a lot better than expected with the recent strength in the dollar and that’s a major feather in the cap of the gold market in the near term,” said John Caruso, senior market strategist at RJO Futures.

The dollar has been used as the preferred hedge against trade tensions, repeating a trend seen last year.

“Short-term resistances (for gold) to watch include $1,280, $1,285 and $1,293, levels which were previously support. We would only turn bullish again on gold should it rise back above that $1,300 hurdle and stay above it, or print a bullish reversal at lower levels first,” Fawad Razaqzada, market analyst with Forex.com, wrote in a note.

Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.5% to 740.86 tonnes on Wednesday.


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Gold hovers near two-week low on strong dollar ahead of Fed minutes

Gold edged lower on Wednesday to hover near a two-week low, as a stronger dollar and signs of easing Sino-U.S. friction dented demand for bullion ahead of the minutes from U.S. Federal Reserve’s latest meeting. Spot gold edged 0.1% lower to $1,273.70 per ounce at 0239 GMT. “A stronger dollar and Washington’s extension to Huawei for 3 months has put the knife into gold, ” OANDA analyst Jeffrey Halley said. Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fun


Gold edged lower on Wednesday to hover near a two-week low, as a stronger dollar and signs of easing Sino-U.S. friction dented demand for bullion ahead of the minutes from U.S. Federal Reserve’s latest meeting. Spot gold edged 0.1% lower to $1,273.70 per ounce at 0239 GMT. “A stronger dollar and Washington’s extension to Huawei for 3 months has put the knife into gold, ” OANDA analyst Jeffrey Halley said. Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fun
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Gold hovers near two-week low on strong dollar ahead of Fed minutes

Gold edged lower on Wednesday to hover near a two-week low, as a stronger dollar and signs of easing Sino-U.S. friction dented demand for bullion ahead of the minutes from U.S. Federal Reserve’s latest meeting.

Spot gold edged 0.1% lower to $1,273.70 per ounce at 0239 GMT. In the previous session, the metal fell to $1,268.97, its lowest since May 3.

U.S. gold futures were unchanged at $1,273.30 an ounce.

The dollar hovered near a four-week high supported by higher U.S. yields, which rose overnight after the United States eased trade restrictions on Chinese telecommunications equipment maker Huawei Technologies.

“A stronger dollar and Washington’s extension to Huawei for 3 months has put the knife into gold, ” OANDA analyst Jeffrey Halley said.

On Monday, the U.S. Department of Commerce granted Huawei a license to buy U.S. goods until Aug. 19, a move intended to give telecom operators that rely on Huawei enough time to make alternative arrangements.

“The market has been tipping it as an easing of trade friction, so we have seen a rotation out of safe harbour trade, albeit temporarily,” Halley added.

Chinese Ambassador to the United States Cui Tiankai said on Tuesday that Beijing was ready to resume talks with Washington, but blamed the latter for frequently “changing its mind” on tentative deals.

Gold is now more than 5% below its late-February 2019 peak of $1,346.73 per ounce.

Meanwhile, investors await the release of U.S. Federal Reserve’s minutes at 1800 GMT, which is expected to provide insights into the May 1 meeting by the central bank, when policymakers kept interest rates steady and signaled little appetite to adjust them any time soon.

On Monday, Fed Chair Jerome Powell reiterated his unmoved demeanor stating it was premature to ascertain the impact of trade and tariffs on monetary policy.

“Despite the volatile environment, investors perhaps still believe that the equity market provides better capital gains due to the Fed’s actions, and are playing down the need for a hedge,” Howie Lee, an economist at OCBC Bank, said.

Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.4% to 739.69 tonnes on Tuesday.

However, holdings fell nearly 7% so far this year, indicating a subdued investor interest in bullion.

Among other precious metals, silver was steady at $14.44 per ounce.

Platinum was unchanged at $813.80 per ounce, while palladium edged up 0.1% to $1,320.50 per ounce.


Company: cnbc, Activity: cnbc, Date: 2019-05-22
Keywords: news, cnbc, companies, dollar, low, ounce, ahead, stronger, united, strong, twoweek, hovers, gold, trade, edged, steady, fed, near, minutes, huawei, unchanged


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Gold slips to over two-week low as stronger dollar, stocks weigh

Spot gold slipped 0.4% to $1,272.55 per ounce, having touched its lowest since May 3 at $1,268.97 earlier in the session. “One big reason is that the U.S. dollar remains pretty strong. “Also, we have little bit of risk appetite on the stock futures, so less of a reason to go into gold as a hedge,” he added. Gold is usually used as a safe store of value during times of uncertainty, however, investors are preferring the dollar as they did last year during the U.S.-China trade spat. Meanwhile, equi


Spot gold slipped 0.4% to $1,272.55 per ounce, having touched its lowest since May 3 at $1,268.97 earlier in the session. “One big reason is that the U.S. dollar remains pretty strong. “Also, we have little bit of risk appetite on the stock futures, so less of a reason to go into gold as a hedge,” he added. Gold is usually used as a safe store of value during times of uncertainty, however, investors are preferring the dollar as they did last year during the U.S.-China trade spat. Meanwhile, equi
Gold slips to over two-week low as stronger dollar, stocks weigh Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-21
Keywords: news, cnbc, companies, stronger, low, dollar, investors, appetite, recent, stocks, twoweek, trade, uschina, gold, policy, pointing, slips, reason, weigh


Gold slips to over two-week low as stronger dollar, stocks weigh

Gold prices dropped to a more than two-week low on Tuesday, as investors opted for the dollar and improved appetite for riskier assets dented the appeal of bullion, while markets awaited the release of minutes from the U.S. Federal Reserve.

Spot gold slipped 0.4% to $1,272.55 per ounce, having touched its lowest since May 3 at $1,268.97 earlier in the session.

U.S. gold futures settled $4.10 lower at $1,273.20.

“One big reason is that the U.S. dollar remains pretty strong. What we are seeing, in a strange way, money is flowing towards the dollar as a safe-haven,” said Bart Melek, head of commodity strategies at TD Securities in Toronto.

“Also, we have little bit of risk appetite on the stock futures, so less of a reason to go into gold as a hedge,” he added.

The dollar index climbed to its highest in nearly a month, supported by higher U.S. yields and as fears of the economic fallout from the U.S.-China trade row prompted investors to choose the safety of the U.S. unit over bullion.

Gold is usually used as a safe store of value during times of uncertainty, however, investors are preferring the dollar as they did last year during the U.S.-China trade spat.

Meanwhile, equity markets around the world gained momentum after the United States temporarily relaxed curbs on China’s Huawei Technologies, easing concerns over a further escalation in the U.S.-China trade war.

Investors now await Fed minutes due on Wednesday, which is expected to provide insights into the May 1 central bank meeting in which policymakers decided to keep interest rates steady and signaled little appetite to adjust them any time soon.

“Not much is expected to happen on the policy side. I think they might talk about potential downside risks from trade tensions but does not expect any significant and credible statements pointing to a rate cut this year,” Melek said.

On Monday, Fed Chair Jerome Powell said that it was premature to ascertain the impact of trade and tariffs on the trajectory of monetary policy, instead pointing recent economic data pointed towards a healthy supply side.

“From a technical point of view, a first positive signal (for gold) would be a recovery to $1,290, while a fall below the recent low of $1,266 could open space for a further decline,” said ActivTrades analyst Carlo Alberto De Casa.

Among other precious metals, silver eased 0.1% to $14.44 an ounce.

Platinum rose 0.3% to $813.90 an ounce and palladium was mostly unchanged at $1,328.70.


Company: cnbc, Activity: cnbc, Date: 2019-05-21
Keywords: news, cnbc, companies, stronger, low, dollar, investors, appetite, recent, stocks, twoweek, trade, uschina, gold, policy, pointing, slips, reason, weigh


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