Dollar, safe-haven currencies buoyed by U.S. coronavirus anxiety By Reuters




By Hideyuki Sano

TOKYO (Reuters) – The dollar and other safe-haven currencies were well bid on Friday after a surge in new coronavirus cases in the United States further undermined the case for a quick economic recovery.

More than 60,000 new COVID-19 infections were reported across the United States on Wednesday, the greatest single-day tally by any country in the pandemic so far, discouraging some American consumers to return to public spaces.

The caution helped to lift the () to 96.798 from near one-month low of 96.233 touched on Thursday.

The euro fell to $1.1288 (), slipping back after having scaled a one-month high of $1.1371 on Thursday.

Against the safe-haven yen, the dollar traded at 107.20 yen , having touched its lowest level in 10 days in the previous trade.

The Swiss franc also strengthened to its highest level in six weeks against the euro, to 1.0609 franc per euro ().

Against the dollar, the franc changed hands at 0.9407 per dollar after having touched a four-month high of 0.93625 to the dollar.

“The market was in a mild risk-off mood, following pretty bad coronavirus figures from Florida,” said Kyosuke Suzuki, director of currencies at Societe Generale (OTC:).

Some market players also said a U.S. Supreme Court ruling that a New York prosecutor can obtain President Donald Trump’s financial records could have undermined risk sentiment and boosted dollar as he faces an uphill battle for re-election.

Trump has fought tenaciously to keep his tax returns and other elements of his finances secret.

Many risk-sensitive currencies took a step back following their rally in recent weeks.

The Australian dollar stood at $0.69605 , off Thursday’s one-month high of $0.7001.

Commodity currencies lost traction also as oil prices dipped on worries about the renewed lockdowns in some parts of the United States.

The yuan, which often tends to align with risk-sensitive currency groups, bucked the trend, supported by hopes of capital inflows as Chinese shares prices have surges after Beijing indicates it wants a healthy bull market.

The traded at 6.999 yuan per dollar , down about 0.03% in early Asian trade, having touched near-four-month high of 6.9808 on Thursday.

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 Gains as Virus Cases Grow, For Now By Investing.com



© Reuters.

By Peter Nurse

Investing.com – The dollar pushed higher in early European trade Friday, helped by its safe haven status as coronavirus cases continued to surge in the United States and unemployment data pointed to a slow recovery in the labor market.

At 3:15 AM ET (0715 GMT), the , which tracks the greenback against a basket of six other currencies, was up 0.3% at 96.915. was down 0.2% at 1.2580, while was down 0.3% at 106.84. 

The number of coronavirus cases in the U.S., the world’s economic engine, continues to grow, with more than 60,000 new Covid-19 infections reported on Thursday.

With populous states like California, Florida and Texas recently breaking records, and having to restart some social distancing measures, hopes are fading for an aggressive economic revival.

The number of Americans filing for jobless benefits dropped more than expected last week, data showed Thursday, but the figure remained above one million for the 16th straight week. Continuing claims also remained above 18 million, suggesting the labor market would take years to recover from the pandemic.

However, while the dollar gained against the euro Friday– was down 0.2% at 1.1263–it’s still a little lower against the single currency year to date. And further losses look likely.

“Recent virus problems in the U.S. present a material risk to the U.S. recovery in the coming months, whereas the euro area service sector recovery is set to continue barring any second virus waves during the European holiday season,” said analysts at Danske Bank, in a research note.

Danske Bank calls for EUR/USD to reach 1.15 on a one-three month time frame.

Adding to the sense of a European recovery, French industrial production increased sharply in May, up 19.6%, as lockdowns were eased and factories reopened.

Attention will now turn to the meeting of the EU leaders next week, to see if there can be agreement allowing the proposed 750 billion euro recovery fund to be distributed to the economies hit hardest by Covid-19 in the region, although also of interest with be Fitch’s review of its credit rating for Italy.

“The question is whether Fitch decides to be tough and downgrade Italy. We expect that it will remain on hold given that the ECB and EU are showing strong support for Italy through QE and the expected recovery fund,” said Danske Bank.

Elsewhere, the risk-linked Antipodean currencies gave up their gains from the previous day, with the pair down 0.5% to 0.6932 and the pair falling 0.12% to 0.6555, while the pair gained 0.3% to 7.0115.

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 Up Over Record Number of U.S. Cases By Investing.com



© Reuters.

By Gina Lee

Investing.com – The dollar was up on Friday morning in Asia. Investors turned to the safe-haven asset as the U.S. reported over 60,000 COVID-19 cases on Thursday, and dampened hopes of an economic recovery.

The U.S accounts for over 3.1 million of all cases. There are over 12.2 million cases and 550,000 deaths globally as of July 10, according to John Hopkins University data. Some states, including Florida, Texas and California, reported a record number of new cases on Thursday.

“The market was in a mild risk-off mood, following pretty bad [COVD-19] figures from Florida,” Kyosuke Suzuki, director of currencies at Societe Generale (OTC:), told Reuters.

The that tracks the greenback against a basket of other currencies gained 0.13% to 96.802 by 10:06 AM ET (3:06 AM GMT).

Another event giving the dollar a boost was Thursday’s U.S. Supreme Court ruling allowing prosecutors access to U.S. President Donald Trump’s financial record. The ruling dealt a blow to Trump’s battle to keep the details of his finances under wraps and is an unwelcome surprise to his for re-election in November.

The pair was down 0.17% to 107.

The risk-linked Antipodean currencies gave up their gains from the previous day, with the pair down 0.22% to 0.56947 and the pair falling 0.10% to 0.6562.

The pair gained 0.12% to 7.0004, and the pair fell 0.07% to 1.2595.

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

Loonie Loses Ground as Oil Slump, Dollar Strength Offset Improved Housing Data By Investing.com



© Reuters.

By Yasin Ebrahim

Investing.com – The loonie fell against the dollar on Thursday as falling oil prices and increased appetite for safe-haven demand offset data showing better-than-expected Canadian housing activity.

rose C$1.5358.

Canadian housing starts inched up to 212,000 in June, adding to strong gains following a bottom in April, and beating forecasts for a rise to 198,000.

The move was largely expected given the favorable backdrop of low-interest rates and government stimulus that has helped cushion the fall out from job losses.

“Against that backdrop it is not so surprising that housing activity has been more resilient than many had been expecting,” RBC said. “Government support programs like CERB payments mean that household incomes have probably held up significantly better than job markets to-date.”

The better-than-expected housing data was offset by renewed a fall in oil prices and an uptick in safe-haven demand for the greenback.

Oil prices fell nearly 3%, the most in over two weeks, as growing Covid-19 cases have forced some states roll back reopening measures and raised investor concerns that strong gasoline demand will be short-lived.

A day earlier, the Energy Information Administration released data showing U.S. gasoline demand rose to its highest in four months. But the peak could prove shortlived amid signs demand is tailing off.

“[T]he week building up to the July Fourth weekend may prove to be a temporary peak … both activity trackers and retail sales indicators recording week-on-week falls in the last few days,” JBC Energy said. 

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 Retreats Over Increased Hopes of Economic Recovery By Investing.com



© Reuters.

By Gina Lee

Investing.com – The dollar was down on Thursday morning in Asia, with investors retreating from the safe-haven asset over increased hopes of an economic recovery.

Corporate earnings from U.S. companies such as Apple (NASDAQ:) and Amazon (NASDAQ:) are due next week, increasing investor risk appetite.

But the increase was capped by ever-increasing COVID-19 numbers. Over 12 million cases globally as of July 9, according to Johns Hopkins University data, with some countries re-imposing lockdown measures.

“Rising stocks and a dip in Treasury yields are slight negatives for the dollar, but the market can’t move too far because we still have to worry about the virus,” said Minori Uchida, head of global market research at MUFG Bank.

“A lot of major U.S. economic data have been positive, so this will be less of a trading factor going forward. People are looking for cues from stocks, yields, and hedging costs.

The that tracks the greenback against a basket of other currencies slipped 0.16% to 96.213 by 12:21 AM ET (5:21 AM GMT).

The pair was down 0.01% to 107.23.

The pair slid 0.29% to 6.9840. The yuan was boosted by better-than expected inflation data for June, released by the National Bureau of Statistics earlier in the day. The Producer Price Index (PPI) fell by 3% year-on-year, and the Consumer Price Index (CPI) dropped 0.1% month-on-month.

The pair gained 0.09% to 0.6988 and the pair was up 0.20% to 0.6587.

Meanwhile, the pair gained 0.17% to 1.2630.

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 as Virus Cases Grow By Investing.com



© Reuters.

By Peter Nurse

Investing.com – The dollar edged higher in early European trade Wednesday, with the safe haven currency in demand as a resurgence of the coronavirus in the United States cast doubt over the strength of the economic rebound.

At 3:050 AM ET (0705 GMT), the , which tracks the greenback against a basket of six other currencies, was up 0.1% at 96.873.

was up 0.2% at 1.1280, while was flat at 107.52. 

There are almost 11.8 million COVID-19 cases globally as of July 8, according to Johns Hopkins University data, of which the U.S. has the highest known numbers of cases and deaths in the world.

A number of Federal Reserve officials expressed concern Tuesday that the surge in infections could adversely impact the economy just as some stimulus programmes are set to expire.

Atlanta Federal Reserve Bank President Raphael Bostic warned that the spike in the number of cases has made business owners “nervous again” and that ‘there is a real sense this might go on longer than we have planned for.”

Still, the rise in cases is not simply a matter for America. The pair lost 0.2% to 0.6935, with the Australian dollar weakening after the country’s second-largest city Melbourne re-imposed lockdown measures to curb the outbreak. 

Elsewhere, gained 0.2% to 1.2559 after Prime Minister Boris Johnson said that the U.K. remains committed to working hard to find an agreement over trade with the EU. Chancellor of the Exchequer Rishi Sunak is due to announce details of the country’s latest fiscal stimulus package later Wednesday.

Sterling has gained around 0.6% this week against the dollar and 0.4% against the euro, but still remains one of the weakest G7 currencies as doubts still remain as to whether a trade deal will be signed by the end of the year.

Additionally, skepticism exists that a proposal by some of Donald Trump’s advisers to undermine Hong Kong’s currency peg would come to fruition, as such a move would be difficult to implement and risk hurting U.S. interests as much as it would punish China.

 

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 Up Amid Rising COVID-19 Fears and Fed Warning By Investing.com



© Reuters.

By Gina Lee

Investing.com – The dollar was up on Wednesday morning in Asia, with investors turning to the safe-haven asset amid continuously-rising number of COVID-19 cases.

Investor sentiment was further dampened over a warning from several U.S. Federal Reserve officials that the rising number of cases could jeopardize economic recovery, with some stimulus programs from central banks due to expire soon.

“The mood changes day by day, but the dollar looks to be supported for now as investors turn more cautious about the virus,” Yukio Ishizuki, foreign exchange strategist at Daiwa Securities, told Reuters.

“The Fed’s comments on the economy sound sombre. There’s reason to worry because it is hard to see when the virus will be brought under control.”

The that tracks the greenback against a basket of other currencies gained 0.06% to 96.895 by 12:09 AM ET (5:09 AM GMT). The pair was up 0.09% to 107.60.

The pair lost 0.08% to 0.6941. The AUD took a hit after the country’s second-largest city Melbourne re-imposed lockdown measures to curb the outbreak.

The pair fell 0.07% to 0.6542.

The pair gained 0.09% to 7.0188, with the yuan taking a hit after the People’s Bank of China set a lower-than expected daily midpoint for the yuan.

The pair gained 0.14% to 1.2557. The pound was boosted by British Prime Minister Boris Johnson’s re-commitment to reaching a trade deal with the European Union.

But investor skepticism remained alongside the risk that the deal will not materialize.

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 Up, With Investors Turning to Safe-Have Amid Rising COVID-19 Numbers By Investing.com



© Reuters.

By Gina Lee

Investing.com – The dollar was up on Tuesday morning in Asia, reversing its earlier losses as investors turn to the safe-haven asset as COVID-19 cases keep mounting.

Over 11.5 cases have been reported globally as of July 7, according to Johns Hopkins University data.

The ever-increasing number of cases took the shine off positive data for the U.S. services sector released on Monday, indicating its return to growth. The for June read 57.1, exceeding analyst forecasts and the previous month’s figure of 45.4.

The that tracks the greenback against a basket of other currencies gained 0.04% to 96.718 by 12:34 AM ET (5:34 AM GMT).

The pair was up 0.02% to 107.37.

The pair fell 0.06% to 0.6968. The Reserve Bank of Australia is widely expected to keep interest rates on hold at 0.25% when it meets later in the day.

“We expect the RBA to reiterate the Australian economy is performing better than feared, and any move higher in the cash rate is some years away,” Commonwealth Bank of Australia (OTC:) analyst Joe Capurso told CNBC.

But he added, “the main downside risks for AUD/USD are an escalation in U.S.-China tensions and the risk partial lockdowns become more widespread.”

Meanwhile, the pair gained 0.02% to 0.6554.

The pair was down 0.01% to 7.0152, with the yuan boosted by Chinese stocks continuing their rally from Monday.

The pair gained 0.10% to 1.2503.

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 Falls Sharply as Slump Continues, But Dark Days to End Soon, BofA Says By Investing.com



© Reuters.

By Yasin Ebrahim

Investing.com – The dollar fell sharply on Monday as better-than-expected U.S. services data strengthened investor expectations for speedier economic recovery, but some on Wall Street expect the greenback to regain its footing.

The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.62% to 96.69.

The Institute for Supply Management’s () non-manufacturing purchasing managers’ index (PMI) jumped to 57.1 in June from 45.4 in May. 

The quicker-than-expected pace of recovery in the U.S. service sector lifted hopes the economy will continue on the path of recovery despite the recent rise in Covid-19 cases nationwide.

“The service sector has definitely experienced a v-shaped rebound from the initial Covid-19 shock … We’re back at readings in February before the shutdowns,” Scotiabank said. “July’s reading could easily be stronger as reopening momentum is imperfect, occurring in fits and starts across some states, but nevertheless ongoing both at home and abroad for exporters.”

Still, the sharp rise in U.S. coronavirus cases means the current economic recovery may prove short-lived, triggering renewed demand for safe-haven assets such as the dollar, Bank of America (NYSE:) said.

“The current recovery is as sharp as the collapse of output when the lockdown started, but this should not be a surprise for markets,” BofA analysts said, pointing to recently improved economic data.

The bank expects the global economy to be “dealing with the consequences from the Covid-19 crisis for years to come,” even if a coronavirus vaccine is developed.

The dollar’s decline was also exacerbated by a strong climb in the euro. 

rose 0.58% to $1.1313 as Germany, the economic powerhouse of the EU, reported that factory orders rebounded 10.4% in May, as the country reopened from lockdown.

, meanwhile, was flat at $1.2494 as traders continue to fret over the outcome of EU and UK trade post-Brexit trade talks which will continue in London this week.

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 Down Even Amid Rising COVID-19 Cases By Investing.com



© Reuters.

By Gina Lee

Investing.com – The dollar was down on Monday morning in Asia, reversing its earlier gains. Investors cautiously retreated from the safe-haven asset amid optimism over U.S. services sector activity data due to be released later in the day.

Forecasts prepared by Investing.com predict a reading of 50 for the Institute for (PMI).

Meanwhile, the number of COVID-19 cases globally is close to 11.5 million as of July 6, according to Johns Hopkins University data.

The that tracks the greenback against a basket of other currencies slipped 0.37% to 96.940 by 12:29AM ET (5:29 AM GMT). The pair was up 0.20% to 107.71.

“When it comes to dollar/yen, recovery expectations are supporting the dollar, but worries about the virus are capping the upside,” Masafumi Yamamoto, chief currency strategist at Mizuho Securities, told Reuters.

“The markets are focused on other currency pairs, like the Australian dollar, which is still in a clear uptrend against the U.S. dollar due to the rise in prices.”

The pair gained 0.38% to 0.6964 and the was up 0.29% to 0.6551. The Reserve Bank of Australia will meet on Tuesday for its policy meeting and is expected to keep rates at 0.25%. The AUD will also receive a boost from rising prices for copper and other export commodities.

But investors will monitor the economic ramifications of the country’s two most populous states closing their boarders. Victoria announced the closure of its boarders with New South Wales to contain a spike in COVID-19 cases.

The pair fell 0.20% to 7.0517. The CNY got a boost from Chinese shares jumping to their highest point in five years, even amid simmering U.S.-China tensions over weekend drills by both the U.S. and Chinese militaries on the South China Sea.

The pair gained 0.07% to 1.2492.

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