Euro near seven-week lows before PMI data release By Reuters


© Reuters. Euro currency bills are pictured at the Croatian National Bank in Zagreb

By Saikat Chatterjee

LONDON (Reuters) – The euro held near seven-week lows on Friday after the European Central Bank struck a more dovish tone at Thursday’s meeting than some had expected.

Investor attention will turn to the flash PMI releases for January, which are some of the first indicators of how the global economy has performed moving into 2020.

The key data, the euro zone and German PMI figures, are expected to rise from previous readings. Higher-than-expected readings could trigger a rally.

The euro fell against the dollar (), to $1.1049. It was near a five-week low against the British pound () and 33-month low against the Swiss franc ().

“Sentiment has steadied overnight as evident from the Swiss franc’s weakness against the euro and the dollar with markets firmly focused on the PMI data,” said Thu Lan Nguyen, a FX strategist at Commerzbank (DE:) based in Frankfurt.

ECB President Christine Lagarde told a news conference after Thursday’s meeting that risks to euro zone growth remained tilted to the downside. Markets took her tone as dovish.

“Some people were hoping that Lagarde could talk about the possibility of policy normalization after Riksbank ended negative interest rates late last year. But there was absolutely no such indication from her,” said Kazushige Kaida, head of foreign exchange at State Street (NYSE:) Bank.

Riksbank, the central bank of Sweden, ended five years of negative interest rates last month, despite a slowdown in the Swedish economy.

The () held at 97.717 and was on track for a third consecutive week of gains.

The Australian dollar traded at $0.6843 , erasing the gains made after a strong jobs report the day before and heading for a fourth consecutive week of losses.

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.





Source link

Yen Gains On Weak Export Data, Virus Fears; Yuan Drops By Investing.com


© Reuters.

By Alex Ho

Investing.com – The Japanese yen gained on Thursday in Asia gained on Thursday in Asia amid weak export figures and fears about the mysterious virus in China.

The EUR/USD pair inched down 0.1% to 1.1082 as traders awaited the European Central Bank (ECB) policy meeting due later in the day. The meeting will be followed bya press conference with President Christine Lagarde.

The USD/JPY pair lost 0.3% to 109.53 amid ongoing fears about the widening coronavirus outbreak, as authorities ramped up efforts to contain the virus ahead of the weeklong Lunar New Year holiday next week.

The World Health Organisation will decide later on Thursday whether to declare the situation a global health emergency.

On the data front, Japanese exports for December fell 6.3% in December as compared to a year before, data from country’s Ministry of Finance data showed. That was far lower than the expected 4.2% decrease.

The USD/CNY pair lost 0.4% to 6.9283.

The Australian dollar rose 0.2% to 0.6858 after a surprise drop in unemployment.

Meanwhile,the U.S. dollar index that tracks the greenback against a basket of other currencies last traded at 97.335, up 0.04%.

The index traded higher overnight after the National Association of Realtors said pending home sales rose 3.6% to a 5.54 million annual rate. That was the strongest pace of growth since February 2018.

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.





Source link

Dollar Edges Higher on Bullish Housing Data By Investing.com


© Reuters.

Invesing.com – The dollar edged higher against its rivals Wednesday, as bullish housing data strengthened expectations that the U.S. economy will remain on solid footing.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.06% 97.58.

The National Association of Realtors said rose 3.6% to a 5.54 million annual rate. That was the strongest pace of growth since February 2018.

Lawrence Yun, chief economist at the National Association of Realtors, attributed the higher level of housing activity to strong job creation, high consumer confidence and low mortgage rates.

A sharp uptick in the pound, meanwhile, kept the dollar on the backfoot as positive U.K. economy data cooled expectations that the Bank of England will cut rates at the end of the month.

rose 0.59% to $1.312.

But some analysts see limited upside for cable, arguing that seasonal factors will likely weigh on the sterling.

“There is little evidence so far of a broad based rebound in sentiment following the general election plus seasonal factors tend to weigh on GBP through February and March,” Bank of America said.

With just a day ago until the European Central Bank meeting, the euro was largely flat against the dollar at $1.109.

rose 0.62% to C$1.315 after the Bank of Canada kept its benchmark rate on hold, but left the door open to a future rate cut, saying that it will monitor data to gauge whether the recent slowdown in domestic growth has accelerated.

“Today’s statement makes us more comfortable with our call for a rate cut in April, and market odds of a move by mid-year are now slightly above 50%,” RBC said

The was also knocked by a fall in oil prices after the International Energy Agency warned of a surplus in oil supplies by 1 million barrels per day in the first half of this year.

was flat at Y109.87 on subdued safe-haven demand despite reports that the death toll from the Coronavirus had increased to 17, raising fears of contagion.

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.





Source link

U.S. Dollar Little Changed, AUD/USD Pair Rises Ahead of Jobs Data By Investing.com


© Reuters.

By Alex Ho

Investing.com – The U.S. dollar was near flat on Monday in Asia, while the Aussie dollar gained ahead of the release of the country’s latest jobs data.

The U.S. dollar index was near flat at 97.365. Figures released by the Commerce Department on Friday showed U.S. housing starts in December were well above economists’ estimates for 1.38 million and were the biggest gain in 13 years.

Retail sales were also on the rise and a gauge of manufacturing activity rebounded to its highest in eight months.

The positive data reduced chances that the Federal Reserve would slash rates when it meets later this month.

Meanwhile, the pair rose 0.2% to 0.6886 as traders awaited Australian jobs data due on Thursday. The Reserve Bank of Australia meets next month and might announce further stimulus following three rate cuts last year amid widespread bushfires.

The pair also rose 0.2% to 0.6620.

The gained 0.2% against the U.S. dollar after jumping late last week on strong economic growth figures. China reported that its gross domestic product grew 6% in the fourth quarter, meaning economic growth slowed to 6.1% in 2019. While this is in line with expectations, it’s also the country’s weakest growth in nearly three decades.

The pair was near flat at 110.17.

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.





Source link

Yuan Pushes Higher After Data Release By Investing.com


© Reuters.

Investing.com – The Chinese yuan is flying Friday, climbing to six month highs against the U.S. dollar in the wake of the release of the country’s latest economic growth figures.

At 03:25 ET (0825 GMT), the pair traded at 6.8598, down 0.3%, while the Futures, which tracks the greenback against a basket of other currencies, was essentially flat at 97.06.

The People’s Bank of China set the reference rate for the yuan at 6.8878 Friday, compared with 6.8807 Thursday.

Earlier Friday, China reported that its gross domestic product grew 6% in the fourth quarter, meaning economic growth slowed to 6.1% in 2019. While this is in line with expectations, it’s also the country’s weakest growth in nearly three decades. Traders zeroed in on the monthly data for industrial production, which grew at the fastest rate since April in December, while retail sales growth stayed at 8% and fixed asset investment ticked up from a multi-year low. All those indicators point to a bottoming out of the world’s second-largest economy.

That said, there had been fears that the U.S.-China trade war could result in the annual GDP figure losing its 6% handle. Additionally, the country’s industrial production rose 6.9% in December, well above economists’ estimates of 5.9% and the fastest gain since April 2019. And annual retail sales growth stayed at 8.0%, more than expected.

These figures added to the tailwinds which have been boosting the currency of late.

It was only Wednesday that the signing phase one trade agreement between the U.S. and China drew a line under 18 months of tit-for-tat tariff hikes that hurt global, and domestic growth.

And prior to that, the U.S. removed China from a list of trading partners it considers currency manipulators. The U.S. Treasury Department said it had lifted the label after Beijing made “enforceable commitments to refrain from competitive devaluation and not target its exchange rate for competitive purposes.”

The U.S. had announced the manipulator label in August, after the yuan slid above 7 to the dollar for the first time in more than a decade.

Whether this strong tone can continue for any length of time is uncertain.

MUFG Bank thinks trade tensions will return and the yuan will end 2020 as one of emerging Asia’s worst-performing currencies.

“People are very bullish and they’re not really seeing any clouds in the sky for the yuan. They are kind of acting as if Trump is going to be a very different creature when it comes to trade this year,” Bloomberg quoted analysts at the bank as saying.

“The crusty cake of protectionism that sort of enveloped the global economy is still going to be there.”

In Europe, meanwhile, the pound rebounded after a string of losses to trade up 0.2% at $1.3094, while the euro was flat at $1.1136.

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.





Source link

Dollar Rides Bullish Housing Data Higher By Investing.com


© Reuters.

By Yasin Ebrahim

Invesing.com – The dollar advanced Friday as bullish housing data offset weaker labor data, adding to growing expectations that the U.S. economy will continue to expand.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.30% to 97.61.

The Commerce Department said rose 16.9% to a seasonally adjusted annual rate of 1.61 million units in December, well above economists’ estimates for 1.38 million and the biggest gain in 13 years.

The strong uptick in housing starts will lift forecasts for fourth-quarter residential investment, but is unlikely to be sustained, increasing the chances of a hefty correction in January is a good bet, Pantheon Macroeconomics said.

The report also highlighted a 3.9% decline in to a rate of 1.42 million units, short of estimates for 1.47 million.

The U.S. Labor Department’s latest (JOLTs) report, a measure of labor demand, showed job openings in November were 6.8 million, well below expectations for 7.23 million.

Sentiment on the economy was also supported by ongoing signs that the consumer remains in good shape.

The University of Michigan’s preliminary for January edged down to 99.1 from a seven-month high of 99.3 in December, data showed Friday.

fell 0.45% to $1.301 as disappointing retail sales data raised expectations that the Bank of England will cut rates at its next meeting.

fell 0.40% to $1.11 as bearish sentiment on the single currency continued ahead of the European Central Bank meeting next week.

was flat at Y110.14 as demand for safe-haven yen continued to fall amid a rally in equities.

rose 0.20% to C$1.31.

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.





Source link

Indexes hit new highs on strong U.S., China economic data


FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 9, 2020. REUTERS/Brendan McDermid

NEW YORK (Reuters) – Wall Street’s major indexes climbed to record highs on Friday after strong U.S. housing data and signs of resilience in the Chinese economy raised hopes of a rebound in global growth.

The Dow Jones Industrial Average .DJI rose 49.44 points, or 0.17%, to 29,347.08, the S&P 500 .SPX gained 12.6 points, or 0.38%, to 3,329.41 and the Nasdaq Composite .IXIC added 31.81 points, or 0.34%, to 9,388.94.

Reporting by Noel Randewich; Editing by Chris Reese



Source link

Oil Prices Push Higher as Chinese Data Brighten Demand Outlook By Investing.com


© Reuters.

By Peter Nurse

Investing.com – Oil prices pushed higher Friday, helped by signs the growth slowdown in China, the world’s largest importer, may be coming to an end.

At 09:00 AM ET (14:00 GMT), futures traded 0.4% higher at $58.78 a barrel, while the international benchmark climbed 0.5% to $64.92. As such, both blends are on track to end the week only a fraction below where they started it.

Earlier Friday, China reported that its gross domestic product grew 6% in the fourth quarter, meaning economic growth slowed to 6.1% in 2019. This may have been the country’s weakest growth in nearly three decades, but traders zeroed in on the monthly data for industrial production, which grew at the fastest rate since April in December, while retail sales growth stayed at 8% and fixed asset investment ticked up from a multi-year low. All those indicators point to a bottoming out of the world’s second-largest economy.

This follows on from the signing of the trade deal between China and the U.S. earlier this week, which capped – at least for now – hostilities between the globe’s two economic powerhouses which have lasted for around 18 months and damaged global growth.

“The signing of the U.S.-China trade deal has given optimism for a revival in global manufacturing, and thus stronger oil demand growth,” said Bjarne Schieldrop, Oslo-based chief commodities analyst at SEB AB, cited in a Bloomberg report. “This is what gives the oil price some vigor.”

At the same time Schlumberger (NYSE:), the world’s largest oilfield service company, also said it sees improved demand in for its services 2020, after a second half in which its U.S. operations were hit by a sharp slowdown in U.S. drilling.

“We ended the year with 2020 oil demand growth sentiment turning positive as uncertainty reduced following the progress made toward a U.S.-China trade deal,” the company said in its earnings release.

“The recent escalation of geopolitical risk should set the floor for the oil price going forward,” it added, with a nod to the stand-off earlier this month between the U.S. and Iran.

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.



U.S. Labor Department to remove computers from data ‘lockups’ By Reuters


© Reuters. FILE PHOTO: Engines assembled as they make their way through the assembly line at the General Motors (GM) manufacturing plant in Spring Hill

By Lucia Mutikani

WASHINGTON (Reuters) – The U.S. Labor Department’s Bureau of Labor Statistics (BLS) on Thursday announced changes to economic data “lockup” procedures, which would result in the removal of computers from its Washington newsroom effective March 1.

BLS Commissioner William Beach said the changes were in line with recommendations by the Labor Department’s Inspector General back in 2014, and was intended to keep data secure prior to public release, stay ahead of rapidly changing technology and remove the advantage of media in providing data to high-speed traders.

Media organizations, including Reuters News and Bloomberg News, send reporters to data “lockups” to prepare stories 30 to 60 minutes in advance of release, with the government controlling a communications switch to prevent an inadvertent early release.

“Developments in high-speed algorithmic trading technology now give a notable competitive advantage to market participants who have even a few microseconds head start,” Beach said in a letter to bureau chiefs.

It is, however, unclear whether removing computers from the “lockup” room would stop algo traders from accessing the data quickly. Some media organizations have complained that high-speed traders were getting the data from the government agencies’ websites through a technique called scraping ahead of the time it was released in the lockup.

There was no comment from Reuters News management.

Beach denied suggestions that the changes were aimed at Bloomberg, whose billionaire owner Michael Bloomberg is seeking the Democratic Party’s nomination to challenge President Donald Trump in November’s U.S. presidential election.

Federal agencies in the past have altered, or proposed altering, their release of potentially market-moving data in order to prevent the possibility that some investors could get earlier access, and thereby profit by selling or buying stocks, bonds or other securities using that advance knowledge.

Under the Obama administration in 2012 the Labor Department proposed changing the lockup procedures by requiring media outlets to use government-issued computers and not their own. News outlets fought the plan, ultimately successfully.

UNFAIR ADVANTAGE?

In a 2014 report, the Labor Department’s Inspector General said the current “lockups” protocol “unintentionally creates unfair competitive advantage for certain news organizations and their clients.” The Inspector General recommended that the BLS “implement a strategy designed to eliminate any competitive advantage that news organizations present in a lockup and/or their clients may have.”

Under the new changes the Labor Department will still hold “lockups” for data, including the closely watched monthly employment report, consumer and producer inflation data, as well as the weekly jobless claims report.

Reporters will, however, only have a pen and pad to work on. This means that reporters who elect to attend the “lockups” would have to dictate their stories to their offices after the embargo on the data lifts.

The Commerce Department which publishes economic data from its statistical agencies – the Census Bureau and Bureau for Economic Analysis (BEA) – said it would release the reports, including monthly retail sales and quarterly gross domestic product data, under the Labor Department’s new guidelines. The Commerce Department uses the Labor Department’s newsroom.

“BEA and Census Bureau leadership are reviewing the announced changes and are committed to the secure, timely, and equitable release of these important data,” it said in a statement.

The U.S. Federal Reserve also uses similar data “lockup” procedures for the release of major Fed news, including interest rate decisions and the monthly industrial production report. The Fed declined to comment if it plans to make any changes to its existing arrangements.

The Labor Department will follow in the footsteps of the United States Department of Agriculture, which last year removed computers from its data “lockup” newsroom.



Oil Prices Recover After Falling in Five-Week Lows on Inventory Data By Investing.com


© Reuters.

By Alex Ho

Investing.com – Oil prices recovered on Thursday in Asia after slumping to five-week lows earlier in the day after data showed petroleum stockpiles rose by 14 million barrels for a second week in a row.

U.S. gained 0.8% to $58.30 by 1:01 AM ET (05:01 GMT). International also rose 0.8% to $64.50.

Oil prices initially slumped after the U.S. Energy Information Administration said crude inventories across the country fell by 2.55 million barrels for the week ended Jan. 10. Analysts were looking for drop of 474,000 barrels.

Gasoline inventories jumped by about 6.7 million barrels, compared with expectations for a build of about 3.4 million barrels, the EIA said.

Distillate stockpiles, meanwhile, soared by about 8.2 million barrels, versus expectations for a rise of about 1.2 million barrels, the agency said. It was the biggest weekly build in distillates since September 2017.

“The builds in products continue to stun just about anyone in this market,” Investing.com analyst Barani Krishnan said. “For a second week in a row, total petroleum supply is up by an eye-watering 14 million barrels plus.”

“This is no small increase and proves that refiners are cranking out products like there’s no tomorrow,” Krishan added.

Prices then recovered somewhat after the U.S. and China signed what they billed as the first phase of a broader trade pact. officials from the two nations announced that Beijing would purchase $200 billion of U.S. goods and services over the next year under the deal, including $50 billion for energy.

China is the world’s largest buyer of oil and the United States is the largest producer of the commodity.

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.