EU’s Michel seeks please-all recovery plan ahead of tense summit By Reuters



© Reuters. Debate about EU financing and economic recovery at the European Parliament in Brussels

By Gabriela Baczynska and Marine Strauss

(Reuters) – European Council President Charles Michel on Friday sought to offer concessions to countries across the EU in plans for the EU’s long-term budget and economic recovery, hoping to bridge differences between national leaders when they meet next week.

Michel, who will chair the first face-to-face meeting of European Union leaders since coronavirus lockdowns were lifted, proposed a smaller 2021-27 budget in a bid to make a mass economic stimulus more palatable to thrifty northern countries.

He proposed a long-term EU budget of 1.074 trillion euros – down from the European Commission’s suggested 1.094 trillion – and a recovery fund of 750 billion euros for pandemic-hammered economies, with two-thirds in grants and a third in loans.

“The COVID-19 crisis presents Europe with a challenge of historic proportions,” Michel said in a statement. “We are slowly exiting the acute health crisis. While utmost vigilance is still required on the sanitary situation, the emphasis is now shifting to mitigating the socio-economic damage.”

The COVID-19 pandemic is the latest big challenge for the 27-nation EU after it struggled with a debt crisis a decade ago, chaotic mass migration, and then the trauma of Brexit.

Some leaders have even framed it as existential for the bloc, saying it cannot be seen to fail this time as eurosceptic feeling mounts in countries such as Italy.

Michel proposed maintaining the so-called rebates that wealthier countries receive on their budget contributions and, in a couched reference to Poland, Hungary and others, said funding would be conditional on respect for the rule of law.

An EU diplomat from one of the larger member state called the plan “a good basis” for further negotiations ahead of the summit but cautioned “not everyone will agree on everything”.

COMPLEX BUT CRITICAL

Michel proposed allocating a share of the recovery funds on the basis of economic declines, which means debt-burdened countries in the south like Italy and Greece will stand to benefit because they have been hit hardest by the pandemic.

The proposal for the seven-year budget is known in Brussels jargon as the “negotiating box”, a complex set of numbers covering spending on areas from support for agriculture to regional development, research and scholarships.

This is the starting point for negotiations between the 27 national leaders when they meet on July 17-18.

EU summits that involve money are always the most fraught, and sometimes haggling goes into an extra day or two, which is why leaders often pack for a “four-shirt” trip to Brussels.

Although setting the budget – called the multiannual financial framework (MFF) – is an arcane process, the stakes are high because such huge sums are involved.

This time, the negotiations are even more critical and complicated because the leaders will also try to agree on the recovery fund, and member states are trying to trade concessions in one against benefits in the other.

In a signal that there is a long road ahead before agreement on the EU budget, which will have to be ratified by the European Parliament, a leader of the conservatives group in the EU assembly served warning that Michel’s proposal fell too short.

Siegfried Muresan said in a tweet that parliament could not accept an overall budget below the European Commission’s proposal, adding: “A smaller MFF will jeopardise EU support to our researchers & students. It will prevent us from tackling climate change or improving citizen’s security.”



Rupiah Slumps Ahead of Hearing on Indonesia’s Debt Monetization By Bloomberg




(Bloomberg) — Indonesia’s sank by the most in two months ahead of a parliamentary hearing on the nation’s debt monetization plan, prompting intervention by the central bank.

The currency dropped as much as 1.5%, its biggest decline since May 4. Even after the intervention, it was 1.3% lower at 14,570 per dollar at 2:05 p.m. in Jakarta

“Investors are a bit spooked by debt monetization concerns, increasingly so since the figure is quite big and will be a pain to unwind later,” said Yanxi Tan, a foreign exchange strategist at Malayan Banking Bhd.

Parliament’s financial commission in a hearing on Monday will scrutinize Bank Indonesia’s agreement to fund $40 billion of the government’s fiscal response to fight the coronavirus.

Febrio Kacaribu, head of the finance ministry’s fiscal office, said Friday that both sides were being careful to make a plan that would be “very prudent” and maintain monetary independence, fiscal integrity and stability.

Still, some investors are concerned that it has sparked the risk of a downgrade of Indonesia’s sovereign rating.

Indonesia Risks Losses by Deeper Dive Into Debt Monetization

“Markets are concerned that there will be a marked increase in liquidity as Bank Indonesia increases holdings of government bonds to support fiscal authorities,” said Chang Wei Liang, a macro strategist at DBS Bank Ltd. in Singapore.

The nation’s 10-year government bond yield was steady at 7.23% on Friday.

Meanwhile, a spike of coronavirus cases was also weighing on the currency after the country reported 1,624 infections on Thursday, the biggest single-day jump so far.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Dollar Slips; Euro Gains Ahead of Merkel/Macron Meeting By Investing.com




By Peter Nurse

Investing.com – The dollar has drifted lower in early European trade Monday, as sentiment surrounding currency traders continues to fluctuate between optimism over a global economic recovery and worry as the number of coronavirus cases continues to grow.

At 3 AM ET (0700 GMT), the , which tracks the greenback against a basket of six other currencies, was down 0.2% at 97.170.

rose 0.4% to 1.1259, climbed 0.4% to 1.2378, while was down 0.1% at 107.11. 

The World Health Organization reported almost 190,000 new cases for the 24-hour period through early Sunday, a new high. This means the total number of global Covid-19 cases has now topped the 10 million mark, with more than 500,000 deaths recorded globally.

America continues to be hard hit, accounting for over a quarter of all cases. A number of the more populous states, including California, Texas and Florida, have had to curtail the opening of a number of businesses, as cases nationwide soar to record levels. 

“Renewed lockdowns stand to delay the U.S. recovery,” said analysts at ING, in a research note. “But we also know that Congress and the Fed have a light trigger-finger when it comes to fresh stimulus.”

Economic data released globally has tended to suggest a swift recovery. Profits at China’s industrial firms rose for the first time in six months in May, while in the U.S. have bounced strongly and economists are forecasting there will be added in June after a shock 2.5 million gain a month earlier. The strengthened 0.2% against the dollar in response.

Investors will now look to data, at 05:00 AM ET (0900 GMT) for the latest gauge of the region’s economic health, as well as to German and Spanish preliminary inflation numbers for June.

Additionally, German Chancellor Angela Merkel is set to host French President Emmanuel Macron for talks on Monday, with the two leaders likely to discuss what strategy to employ to get agreement on the recovery fund for the region.

Hopes for a united EU response to the virus and a swift regional recovery have helped the single currency post gains of around 1.5% against the greenback so far this month.

Elsewhere, the EU-U.K. free trade negotiations are scheduled to restart this week in Brussels, amid few signs of any progress.

“We expect little progress during the summer months, keeping the uncertainty about UK growth and trade outlook in place and in turn making GBP one of the G10 FX underperformers,” said ING.

Sterling hit a month-low on Friday, and has fallen by 0.7% over the last week against both the U.S. dollar and the single currency. U.K. consumer credit and mortgage lending data are due at 4:30 AM (8:30 GMT).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. Oil Prices Notch Weekly Win, but Path Ahead Uncertain, Experts Warn By Investing.com



© Reuters.

By Yasin Ebrahim

Investing.com – Crude oil prices wrapped up a weekly win after settling higher on Friday, as a wave optimism over OPEC and its allies stepping up compliance efforts on production cuts bolstered investor sentiment. But some experts have warned the rally could soon run out of steam. 

On the New York Mercantile Exchange rose 2.34%, to $39.75 a barrel, while on London’s Intercontinental Exchange (NYSE:), added 1.66% to $42.20 a barrel. 

With OPEC+ compliance standing at 87% for May, oil members that signed up to the production-cut agreement are taking measures to cut production and boost compliance.

Iraq and Kazakhstan, both of which overstepped their production quotas in May, have submitted to the OPEC+ alliance their detailed plans to cut oil production in the coming months.

But other offenders guilty of overproducing, including Nigeria and Angola, will need to submit plans to rein in production by June 22, according to the Joint (NASDAQ:) Ministerial Monitoring Committee tasked with overseeing the OPEC+ production cut accord.

The latest weekly win – the eighth in the past nine weeks – has triggered some worries that prices are running out of road as countries worldwide are unlikely to lift all restrictions anytime soon.  

A prolonged rally above the $40 level “will be difficult for WTI crude as restrictions are not going away anytime soon… “so oil prices at best might have another dollar or two to climb higher, said Edward Moya at Oanda

Others, meanwhile, have flagged the start of hurricane season as a potential headwind for oil prices.

“Hurricane season is yet another variable that could tip the tenuous recovery of the oil market back into more bearish pricing territory,” Erika Coombs at BTU Analytics said.

The latest rig count data, which serves as a proxy for oil production and oil services demand, fell to record lows for the seventh week in row.

Data last week showed the operating in the U.S. fell by 13, to 266.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Euro, Sterling Drift Ahead of ECB, BoE News By Investing.com



© Reuters.

By Peter Nurse

Investing.com – The dollar edged lower in early European trade Thursday, ahead of two major monetary developments in Europe.

The European Central Bank will announce the results of its latest long-term lending operation, which is the first at which banks can borrow at the new lower limit of as low as 1%. Given the doubts over the effectiveness of negative interest rates, a high take-up would constitute a vote of confidence in the ability of the ECB to keep supporting the economy through monetary policy (and vice versa). ECB board member Isabel Schnabel last week trailed expectations of around 1.4 trillion euros in demand.

The TLTRO results will be followed by the Bank of England’s policy announcement at 7 AM ET (1100 GMT). 

Sterling edged lower in early trading Thursday, amid expectations that the central bank will boost its quantitative easing program by between 100 and 150 billion pounds. The U.K. economy has been particularly hard hit by the coronavirus outbreak, and is forecast to shrink the most of all G7 economies this year by the Organization for Economic Cooperation and Development.

“Our economist thinks the QE target will be raised by 150 billion [pounds] compared to consensus of only 100 billion [pounds],” said analysts at ING, in a research note. “Our expectation is driven in part by practical consideration. If purchases continue at the current pace, the target will be reached around the September meeting – leaving the MPC in a position to take a rushed decision after the summer.”

dropped 0.1% to 1.2538, while rose 0.2% to 0.8974.

At 3:40 AM ET (0740 GMT), the , which tracks the greenback against a basket of six other currencies, was down 0.1% at 97.013. gained 0.1% to 1.1251, dropped 0.1% to 106.86, while the risk-sensitive fell 0.2% to 0.6867.

Norway’s central bank is also scheduled to meet later Thursday, and is widely expected to keep its benchmark interest rates unchanged at 0.0%.

“Developments since the May meeting have clearly come out on the upside and at the very least the downside risk is much reduced,” said analysts at Danske Bank, in a research note. “We therefore expect Norges Bank to revise its projections upwards and that the accompanying interest rate path will indicate a gradual rise in the policy rates from the end of 2022.”

rose 0.1% to 9.5286 and rose 0.1% to 10.722.

The central bank operations are taking place against a backdrop of a spike in new Coronavirus cases in the U.S. and China, which has hit risk-sensitive currencies this week. 

“The markets are currently weighing two opposing forces for risk assets. The rise in Covid-19 cases in the US and China and its associated risk for the economies, and stimulus measures (both monetary and prospects of further fiscal),” ING analysts said. 

As such, the latest weekly U.S. at 8:30 AM ET (1230 GMT) may play a big role in whether greed or fear sets the tone for the rest of the day.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Wall Street Week Ahead: Investors bet bounce in value stocks will stick


NEW YORK (Reuters) – As the U.S. economy begins to emerge from the sharp slowdown during the coronavirus pandemic, some fund managers have been drawn to value stocks, a sector that underperformed during the recent rally.

FILE PHOTO: Pedestrians walk past the New York Stock Exchange as the building opens for the first time since March while the outbreak of the coronavirus disease (COVID19) continues in the Manhattan borough of New York, U.S., May 26, 2020. REUTERS/Lucas Jackson

Value stocks, which typically sport lower price-to-earnings valuations, tended to underperform growth stocks during the bull market that ran for more than a decade and ended this year.

That pattern has recently reasserted itself: The S&P 500 Value index was up just 4.5% over the last month compared to a 5% gain in the S&P 500 Growth index.

Yet better-than-expected readings on U.S. employment and other indicators have money managers thinking about lightening up on the stocks driving the rally in favor of sectors such as financials and energy. A sustained bounce in these economically sensitive areas could be an encouraging signal for the nascent recovery, investors said.

The coronavirus pandemic “reset the economy back to a recession, and now you’re in a brand new economic cycle. That typically favors value names,” said Ernesto Ramos, head of equities at BMO Global Asset Management.

Ramos has been buying shares of companies he believes will get a boost when consumer spending rebounds, including Sprouts Farmers Market Inc. Shares of the company trade at a trailing price two earnings ratio of 15.5, well below the broad S&P 500’s trailing ratio of 22.2. He also owns shares of PepsiCo Inc and U.S. supermarket chain Kroger Co.

Phil Orlando, chief equity market strategist at Federated Hermes, has been shifting away from technology and healthcare stocks and into financial and energy companies. Technology stocks in the S&P 500 are up nearly 30% since the start of April, while finanical stocks are up 20%.

“We think they will provide leadership here as the market starts to shift from a risk-off position to more of a risk-on,” he said.

Investors will watch a raft of U.S. data next week including retail sales and business inventories for more evidence of an economy on the mend. On Thursday, the S&P 500 notched its biggest daily drop since mid-March after a cautionary economic forecast from the U.S. Federal Reserve and concerns over a possible resurgence of Covid-19.

“We’ve always said that what started with the virus will end with the virus,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

Increased uncertainty over growth or the pandemic’s trajectory could push investors back into the growth companies that have delivered performance in recent months, even as the U.S. economy reeled from countrywide shutdowns, she said.

Despite those concerns, some fund managers who have benefited from the jump in momentum stocks are becoming more cautious, expecting that value will soon regain favor.

“In the short-term, people have been hiding out in a handful of names,” said Mike Lippert, portfolio manager of the Baron Opportunity Fund. “Sooner or later we will get a real economic recovery and from that point the stocks that were thrown out will lead the market.”

Reporting by David Randall; Editing by David Gregorio



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Wall St Week Ahead: Investors bet bounce in value stocks will stick


NEW YORK (Reuters) – As the U.S. economy begins to emerge from the sharp slowdown during the coronavirus pandemic, some fund managers have been drawn to value stocks, a sector that underperformed during the recent rally.

FILE PHOTO: Pedestrians walk past the New York Stock Exchange as the building opens for the first time since March while the outbreak of the coronavirus disease (COVID19) continues in the Manhattan borough of New York, U.S., May 26, 2020. REUTERS/Lucas Jackson

Value stocks, which typically sport lower price-to-earnings valuations, tended to underperform growth stocks during the bull market that ran for more than a decade and ended this year.

That pattern has recently reasserted itself: The S&P 500 Value index was up just 4.5% over the last month compared to a 5% gain in the S&P 500 Growth index.

Yet better-than-expected readings on U.S. employment and other indicators have money managers thinking about lightening up on the stocks driving the rally in favor of sectors such as financials and energy. A sustained bounce in these economically sensitive areas could be an encouraging signal for the nascent recovery, investors said.

The coronavirus pandemic “reset the economy back to a recession, and now you’re in a brand new economic cycle. That typically favors value names,” said Ernesto Ramos, head of equities at BMO Global Asset Management.

Ramos has been buying shares of companies he believes will get a boost when consumer spending rebounds, including Sprouts Farmers Market Inc (SFM.O). Shares of the company trade at a trailing price two earnings ratio of 15.5, well below the broad S&P 500’s trailing ratio of 22.2. He also owns shares of PepsiCo Inc (PEP.O) and U.S. supermarket chain Kroger Co (KR.N).

Phil Orlando, chief equity market strategist at Federated Hermes, has been shifting away from technology and healthcare stocks and into financial and energy companies. Technology stocks in the S&P 500 are up nearly 30% since the start of April, while finanical stocks are up 20%.

“We think they will provide leadership here as the market starts to shift from a risk-off position to more of a risk-on,” he said.

Investors will watch a raft of U.S. data next week including retail sales and business inventories for more evidence of an economy on the mend. On Thursday, the S&P 500 notched its biggest daily drop since mid-March after a cautionary economic forecast from the U.S. Federal Reserve and concerns over a possible resurgence of Covid-19.

“We’ve always said that what started with the virus will end with the virus,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

Increased uncertainty over growth or the pandemic’s trajectory could push investors back into the growth companies that have delivered performance in recent months, even as the U.S. economy reeled from countrywide shutdowns, she said.

Despite those concerns, some fund managers who have benefited from the jump in momentum stocks are becoming more cautious, expecting that value will soon regain favor.

“In the short-term, people have been hiding out in a handful of names,” said Mike Lippert, portfolio manager of the Baron Opportunity Fund. “Sooner or later we will get a real economic recovery and from that point the stocks that were thrown out will lead the market.”

Reporting by David Randall; Editing by David Gregorio



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Dollar Up as Fed Points to Long Road Ahead for U.S. Recovery By Investing.com



© Reuters.

By Gina Lee

Investing.com – The dollar was up on Thursday morning in Asia, with investor sentiment down after details emerged from the U.S. Federal Reserve’s policy meeting the day before.

The U.S. economy will shrink 6.5% this year, and the unemployment rate will be 9.3% by the end of the year, according to the Fed’s quarterly projections.

“It is a long road…we can use our tools to support the labor market and the economy, and we can use them until we fully recover,” Fed Chair Jerome Powell said via video link on Wednesday.

The that tracks the greenback against a basket of other currencies gained 0.38% to 96.315 by 12:39 AM ET (5:39 AM GMT)

“That’s been the follow-through, and it’s played into a broad rebound in the dollar…but the takeaway is the Fed remains fully committed to its ultra-easy monetary policies…that should be supportive for risk assets, and on a structural basis we still think the U.S. dollar is embarking on a cyclical downturn,” Rodrigo Catril, FX analyst at National Australia Bank (OTC:), told Reuters.

The pair was down 0.01% to 107.08, with the safe-haven yen reversing its earlier gains.

The pair lost 0.82% to 0.6939 and the pair was down 0.63% to 0.6497.

The pair gained 0.15% to 7.0704 and the pair slid 0.43% to 1.2691.

Meanwhile, investors will be looking to U.S. jobless claims numbers, due to be released later in the day.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Ethereum 2.0 Charges Ahead With New ‘Onyx’ Testnet Launch By Cointelegraph



Ethereum 2.0 Charges Ahead With New ‘Onyx’ Testnet Launch

Blockchain firm Prysmatic Labs announced the launch of a new test network for the 2.0 blockchain.

According to a Wednesday announcement, Prysmatic Labs is launching the Onyx Ethereum 2.0 testnet — which represents an improvement over the previous Topaz testnet.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Dollar nurses losses amid caution ahead of Fed


TOKYO (Reuters) – The dollar nursed losses against most currencies on Wednesday amid some speculation the U.S. Federal Reserve could take steps to curb a recent rise in bond yields at its policy meeting.

FILE PHOTO: U.S. dollar notes are seen in this November 7, 2016 picture illustration. Picture taken November 7. REUTERS/Dado Ruvic/Illustration

The Australian and New Zealand dollars pulled back slightly against the greenback but sentiment remained positive as economic activity resumes in both countries following the lifting of coronavirus restrictions.

The main focus is a Fed policy meeting later on Wednesday. While no major changes are expected, recent rises in yields have pushed up the dollar due to increasing signs the U.S. economy is stabilising, but a full-fledged recovery from the coronavirus outbreak is still distant.

Some analysts are playing down the chance the Fed will adopt yield curve control to guide 10-year Treasury yields lower, but uncertainty about the outcome of the Fed meeting could keep the dollar under pressure.

“The Fed can afford to wait and see on yield curve control because the U.S. economy has gotten past the crisis phase and only just entered the healing phase,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.

“The markets got overly optimistic and are adjusting lower, but this is a good chance to buy the dollar on the dip.”

The dollar was little changed at 107.75 yen on Wednesday in Asia following a 0.6% decline in the previous session.

Against the British pound, the greenback traded at $1.2713, close to a three-month low.

The dollar bought 0.9510 Swiss franc on Wednesday in Asia after falling 0.7% on Tuesday.

The yield on benchmark 10-year Treasury notes was little changed at 0.8253% on Wednesday. Long-term Treasury yields fell on Tuesday and the yield curve flattened slightly as traders adjusted positions before the Fed meeting.

U.S. central bankers on Wednesday will also publish their first economic projections since the coronavirus pandemic set off a recession in February.

Estimates are expected to signal a collapse in output this year and near-zero interest rates for the next few years.

The Australian dollar pulled back from an 11-month high and fell 0.27% to $0.6941, while the New Zealand dollar fell from its strongest level since late January to traded at $0.6487.

The Antipodean currencies have been on a stellar run against the greenback due to hopes for economic recovery, prompting some investors to book profits.

Some traders are worried about a deterioration in diplomatic relations between Australia and China, which has also weighed on the Aussie.

The euro traded at $1.1334. Against the pound, the common currency bought 89.20 pence, on course for a second day of gains.

Concerns about progress in trade talks between Britain and the European Union continue to hamper both the euro and the pound.

The EU’s chief Brexit negotiator, Michel Barnier, is scheduled to speak later on Wednesday, which may yield details that will help determine whether market sentiment will improve.

Reporting by Stanley White; Editing by Sam Holmes



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