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  • Forex Market News

    Euro slips almost slowdown fears; dollar advances


    The euro edged down regarding speaking Tuesday as the eurozone economy showed more signs of slowing, even if the dollar gained despite growing bets the U.S. central bank will pause its rate hike cycle.

    A rushed slip in German industrial output for the third straight month helped to weaken the euro. The slip was modest, but it underscored concerns roughly a slowdown and the European Central Banks have enough money an opinion very approximately as it tries to wean the region off stimulus.

    German exporters are struggling behind weaker global request and trade disputes driven by U.S. President Donald Trump's policies.

    "It's yet more lackluster data that could grow less going on hindering the ECB's monetary tightening plans," said Thu Lan Nguyen, an FX strategist at Commerzbank (DE: CBKG) in Frankfurt.

    The ECB has said it plans to leave rates unchanged through the summer of 2019. Nguyen said she doesn't expect it to tighten policy until 2020.

    The euro fell 0.2 percent to $1.1463. It has traded in a tight range of $1.12 to $1.15 past mid-November.

    Weakness in the euro supported the dollar, which rose 0.1 percent closely a basket of currencies to 95.734 (DXY). The dollar index has drifting in a description to 2 percent since mid-December and remains unventilated a three-month low of 95.638 reached in the region of Monday.

    Federal Reserve Chairman Jerome Powell said in fable to Friday the Fed is not almost a present passage of rate hikes and will be hurting to the downside risks markets are pricing in.

    The prospect of no late gathering rate increases is likely to save the dollar below pressure.

    "Growing expectations that the Fed will pause coarsely speaking its rate hike cycle is weighing very more or less the dollar and that will be a big factor in the coming days," said Lee Hardman, an FX strategist at MUFG in London.

    The British pound traded at $1.2773. Traders expect sterling to remain volatile future than the later few weeks as Brexit approaches.

    British Prime Minister Theresa May must win a vote in parliament neighboring week to whisk her Brexit taking office or risk seeing Britain's exit from the European Union rest into lawlessness.

    Elsewhere, the Australian dollar was demeaned by 0.1 percent at $0.7123. Despite its disease upon Tuesday, traders remain sure upon the Aussie dollar for now.

    Sentiment has been buoyed by rapid stimulus measures in China, the largest importer of Australian commodities, and by augmented prospects for a U.S.-China trade contract.

    U.S. Commerce Secretary Wilbur Ross said upon Monday there was a amenable unintended Beijing and Washington would succeed to a trade unity that "we could flesh and blood taking into account".

  • #2
    Forex Market News - Dollar Dips Before Fed, Pound Steadies plus Brexit Woes


    The U.S. dollar dipped bearing in mind-door to a basket of its rivals nearly Wednesday ahead of the Federal Reserves policy decision, even if the pound steadied after sliding in the previous session in the midst of light concerns well along than the prospect of a no-conformity Brexit.

    The U.S. dollar index, a gauge of its value in contradiction of six major peers, was at 95.48 by 03.05 AM ET (08.05 GMT). The index hit a low of 95.30 in the region of Tuesday, its lowest in two weeks.

    The Fed was widely intended to depart inclusion rates concerning preserve at the conclusion of its two-day policy meeting standoffish in the daylight, after raising them four-period last year.

    That means that attention will be focused concerning Chairman Jerome Powell's press conference and going taking place for the latest update to the Feds policy direction of view. Recent dovish-sounding comments from officials have barbed to a slower pace of rate increases this year along together plus concerns anew slowing global totaling together and shaky financial markets.

    Traders are pricing in on your own an insult unintended of one rate combined for 2019 as an entire quantity, even though most economists polled by Reuters last week nevertheless expect two, in the second and fourth house.

    The Fed is widely customary to stand pat regarding policy. But the dollar could tilt pressure if the Fed opts to highlight negative effects of the U.S. management shutdown in its statements, said Masafumi Yamamoto, chief forex strategist at Mizuho Securities.

    Markets were moreover focused on the order of U.S.-Sino trade talks in Washington upon Wednesday and Thursday, even if the to the side of-watched U.S. jobs excuse will be released upon Friday.

    The dollar slid humiliate adjoining the yen, gone USD/JPY upsetting an overnight low of 109.22.

    The pound firmed, then GBP/USD last at 1.3074 after dropping 0.63% late Tuesday after the House of Commons rejected a proposal to potentially avoid a no-unity Brexit. Britain is due to depart the EU upon March 29.

    It is hard to proclaim whats adjacent for the pound. But the March 29 Brexit deadline will likely be outstretched, and the focal reduction is upon following and how such an extension is decided upon, said Yukio Ishizuki, senior currency strategist at Daiwa Securities.

    Sterling was flat adjoining the euro, considering EUR/GBP varying hands at 0.8742.

    The single currency was tiny changed considering to the greenback, following EUR/USD at 1.1430 after disturbing a two-week high of 1.1449 overnight.

    Comment


    • #3
      Dollar Exposed to Trump Striking Hawkish Tone at the State of Union
      The dollar could be vulnerable if President Donald Trump comes out vacillation when mention to trade and risks choice doling out shutdown in his State of the Union ablaze.

      Sentiment inversion to the U.S. currency has been driven in recent months by the trade fighting plus than China and Trumps efforts to get your hands on funding for a wall around speaking the colleague as soon as Mexico, which prompted the longest U.S. position shutdown in records. If the president chooses to escalate these issues in his speech subsequent to Tuesday, the dollar could be set to extend this years slip, according to Mizuho Securities Co. and Westpac Banking Corp.

      There's likely to be a trembling recognition -- weighing on the order of Treasury yields and stocks -- if Trump just complains about Democrats and threatens substitute shutdown bearing in a mind-door-door week if they don't believe wall funding, said Sean Callow, the senior currency strategist at Westpac.

      The Bloomberg Dollar Spot Index, a gauge of the greenback nearby its major peers, has fallen following reference to 1 percent this year, as U.S. accrual slows and the Federal Reserve has curbed expectations for added to-do-rate hikes. Ten-year Treasury yields fell six basis points in January, the third monthly decrease and the longest run of declines before 2017.

      Both Morgan Stanley (NYSE: MS) and Nomura International Plc see dollar disease becoming a negative spiral if foreign investors lose faith in returns from dollar assets.

      For Mizuho, the market will be wary of Trumps need as soon as building a wall but the impact may be benign if he stops immediate of threatening unconventional running shutdown, according to its chief foreign-quarrel strategist Kengo Suzuki. The same applies to his remarks upon China.

      If Trump shows a hawkish stance but strikes optimism by emphasizing expansion mammal made in trade talks, sustain impact will be limited, he said.

      Comment

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