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Dollar stable after good US economic data

Dollar stable after good US economic data

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Erik Holm - Head of media

The dollar stabilized on Monday after the release of economic data, while optimism about the prospects for the Chinese economy supported the Asian currency. By 7:30 London time, the dollar remained at the minimum-maximum amount in euros, at $1.1099 and just below the eight-month peak in the Japanese yen, at 110.19 yen per dollar. Dollar index to the basket without distinct dynamics.

Chinese yuan rose 0.2%, updating the six-month peak. The Australian and New Zealand dollars rose slightly. The Australian dollar added 0.19%, the New Zealand dollar – 0.08%.

The Reserve Bank of Australia will spend more and more weak consumer sentiment next year, adding arguments in favor of further stimulating the economy after three shortened periods last year.

Trading operations at a minimum low of $1.2994, which in this case is dangerous because the Bank of England may lower rates at the end of the month – especially if data on business activity this week is pessimistic.

 

The Dollar is stable: traders watch the Middle East

The Dollar is stable: traders watch the Middle East

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Jim Anderson - Public Relations

On Tuesday, the US dollar remained virtually unchanged in Asia, as traders were cautious in light of the situation in the Middle East. By 6:00 Moscow time, the US dollar index against a basket of other currencies by 0.01% and was trading at 96.360. 

On Monday, US Secretary of Defense Mark Esper said the United States did not plan to withdraw troops from Iraq, refuting reports of a war letter informing Middle Eastern officials of the relocation of troops for withdrawal.

ISM Service Business Index (PMI) is coming out today. Data on production orders and trade balance will also be presented. On Monday, data showed, that in December the US manufacturing sector fell sharply: order volumes fell to an almost 11-year low, and factory employment fell for the fifth consecutive month. As for the China-US trade front, Washington and Beijing are due to sign the first phase of the trade deal on January 15. 

The USD/CNY pair fell by 0.3% to 6.9553. On Thursday, China will release the latest data on consumer and producer price indices. The AUD/USD pair lost o.2% and fell to 0.6929, while the NZD/USD pair remained unchanged at 0.6669.

 

Foreign exchange risk appetite increased amid news from the trade front and elections in Britain

Foreign exchange risk appetite increased amid news from the trade front and elections in Britain

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Jim Anderson - Public Relations

The dollar fell by 0.6% on Friday amid rising risk appetite after optimistic news about two factors that have prevailed over the markets for a long time – the approaching date of the introduction of US traffic on Chinese goods and elections in the UK.

Washington will postpone new duties on Chinese goods and lower existing tariffs in exchange for Beijing to purchase US agricultural products, US source said on Thursday.

British Prime Minister Boris Johnson won a landslide victory in early parliamentary elections on Thursday, which is likely to allow him to withdraw the country from the European Union in the next few weeks.

The Japanese yen, which lost ground when the results of exit polls in the UK were announced on Thursday evening, continued to decline on Friday. By 16:40, it had fallen in price by 0.3% to 109.60, having previously reached the lowest value against the dollar over the past six months.

The dollar fell to 4-month lows

The dollar fell to 4-month lows

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Erik Holm - Head of media

On Thursday, the US dollar fluctuated near four-month lows, having suffered the largest losses in a few weeks after the Federal Reserve forecast to maintain current interest rates in 2020. Investors were cautious in anticipation of the deadline for the introduction of duties, which will come this Sunday, as well as before the ECB meeting and election in the UK.

The US dollar fell to a one-month low against the euro after the Fed meeting and by 9:30 London time, it rose slightly above this level to 1.1126. The US dollar index against a basket of major-currencies recovered slightly after a four-month low but remained weak at 97.09. The US currency rose to 108.61 against yen.

Fed Chairman Jerome Powell noted that the economic outlook is favorable for the US, and said that raising rates would require a substantial and steady increase in inflation. New economic forecasts showed that 13 out of 17 Fed politicians do not expect interest rates to change until at least 2021.

Today, US President Donald Trump is expected to meet with leading trading advisers to discuss $160 billion in Chinese goods duties scheduled for December 15. The decision to impose fees could excite financial markets and disrupt negotiations between the US and China to end the 17-month trade war.

Pound hits a 31-month high

Pound hits a 31-month high

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Jim Anderson - Public Relations

On Monday, the British pound reached a 31 – month high against the euro and a seven – month high against the US dollar amid growing confidence in the conservative party’s victory on Thursday, putting an end to political paralysis over Brexit. By 9:00 London time, the euro reached a low of 0.8406 to the pound, the lowest level since May 2017.

The pound rose as fears of a “suspended” parliament receded after a public opinion poll showed on Monday that a conservative party had increased leadership over Labor to 14 percentage points from 9 points a week ago. The pound peaked against the dollar at 1.2180 – the highest level since May, and last traded at 1.31631.

On Monday, demand for the dollar was supported by a strong Friday employment report, but the currency is not easy due to fears of an escalation of the trade war between the US and China. The US dollar index fell to 97.59 after rising by 0.3% on Friday. The euro was trading at 1.1065 after reaching a weekly low of 1.1039 on Friday.