Dollar slips as Chinese comments marginally boost risk appetite By Reuters


© Reuters. FILE PHOTO: A woman counts U.S. dollar bills at her home in Buenos Aires

By Elizabeth Howcroft

LONDON (Reuters) – The dollar was marginally down on Friday and risk appetite boosted by statements from China on the need to find a solution to the tit-for-tat tariff war with the United States, raising hopes that a “phase one” deal could be reached.

Chinese President Xi Jinping said Beijing wants to work out a deal with Washington and has been trying to avoid a trade war – but is not afraid to retaliate when necessary.

A senior Chinese diplomat urged the United States to compromise in order to develop stable relations between the countries.

But after a week of mixed signals over the likelihood of a preliminary trade deal, the developments did little to move markets. Currencies continued to trade in tight ranges.

“While there are many trade headlines over the past few days, one can also argue that this is actually a ‘status quo’,” Commerzbank (DE:) FX and EM analyst Hao Zhou wrote in a note to clients.

“At the end of the day, there is little progress on trade talks, and it looks like both sides are fine with another delay of the phase 1 deal,” he wrote.

Against a basket of currencies, (), the dollar was down less than 0.1%, breaking its three-day streak of gains and heading for its smallest weekly change since the start of August this year.

The Swiss franc was down 0.2% against both the dollar and the euro (), suggesting market optimism as the Swiss franc is perceived as a safe-haven currency.

But the Japanese yen – also seen as a safe haven – was flat against the dollar .

The trade-exposed New Zealand dollar and Swedish crown were both up 0.2% against the U.S. dollar .

MUFG currency analyst Lee Hardman wrote in a note that low volatility and tight trading ranges are currently the key characteristics of the FX market.

German third quarter GDP data released earlier this morning held no surprises, showing that exports, state spending and consumers helped the German economy avoid a recession.

“Up to now, the slowdown in Germany has been concentrated in the manufacturing sector,” Daria Parkhomenko, forex strategy associate at RBC Capital Markets, wrote in a note to clients.

“Unless global uncertainties are lifted, which are weighing down on the manufacturing sector, it is only a question of when, not if, the weakness in manufacturing spreads to the rest of the economy,” she wrote.

The euro was slightly up against the weaker dollar ().

Flash eurozone PMI data were due at 0900 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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Dollar keeps safe-haven bid amid trade ‘headline fatigue’ By Reuters



By Tom Westbrook

SINGAPORE (Reuters) – The dollar held overnight gains on Friday, as investors clung to the safe-haven pending developments in Sino-U.S. trade negotiations and amid a growing skepticism about reports of progress in the talks.

Movements were slight as investors also looked to a slew of global manufacturing surveys published later in the day for clues on how deeply the U.S.-China trade dispute is hurting the world’s economy.

The greenback crept higher against the Japanese yen to 108.58 yen and was steady against the euro () at $1.1064. Antipodean currencies were flat on the dollar, with the buying $0.6789 and the $0.6404.

Against a basket of currencies () the dollar last treaded at 97.993.

“Trade is the elephant in the room,” said Ray Attrill, National Australia Bank’s head of FX strategy, though he added that “headline fatigue has set in,” limiting volatility in the market’s reaction to new information.

Investors had earlier factored in the prospect that a partial truce could be agreed at a mid-November summit in Santiago. But that summit was canceled and the path forward is now unclear.

China will try hard to resolve the dispute, Commerce ministry spokesman Gao Feng told reporters on Thursday.

The Wall Street Journal also reported that top U.S. negotiators had been invited to Beijing for a new round of face-to-face talks, further raising hopes and risk appetite.

However trade experts and people close to the White House told Reuters that negotiations could slide into next year.

“With the constant barrage of seemingly contradictory stuff, the market’s given up trying to second-guess the next headline,” said Attrill. “We’ll trade it once we know what’s happening.”

China’s yuan, which is highly sensitive to trade news, was stable at 7.0303 per dollar in offshore trade .

Elsewhere, the rising dollar kept the British pound below $1.30, while a manifesto from the British Labour Party setting out radical plans to raise tax and nationalize infrastructure also weighed. Sterling last traded at $1.2916.

Purchasing managers indexes are due for Germany, the Eurozone, Britain and the United States later on Friday, offering a reading on the globe’s battered manufacturing sector.

“The current narrative has global growth slowing to year end,” said Michael McCarthy, chief markets analyst at brokerage CMC Markets in Sydney. “So the real potential is if we see surprises on the upside…it could have direct impact on Euro-U.S. dollar.”

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. Dollar Slips After Fed Minutes; Sino-U.S. Trade Tensions in Focus By Investing.com


© Reuters.

Investing.com – The U.S. dollar slipped on Thursday in Asia after the release of the Federal Reserve meeting minutes. Tensions between the U.S. and China rose following reports that U.S. President Donald Trump might sign a bill that supports Hong Kong protesters.

China’s foreign ministry spokesman called the decision a blatant interference in China’s internal affairs, and said the U.S. faced “negative consequences” if it persisted.

The news added to jitters after Trump reiterated that he would raise tariffs if phase one of a trade deal with China is not signed. Traders had hoped the deal would have been signed at a summit in Chile scheduled for mid-November, but the deadline was left in limbo after the conference was cancelled.

CNBC reported earlier this week that Beijing is pessimistic about reaching an agreement with the U.S.

Meanwhile, minutes released on Wednesday showed Fed officials agreed that the stance of policy “likely would remain” where it is “as long as incoming information about the economy did not result in a material reassessment of the economic outlook.”

However, they also see “the downside risks surrounding the economic outlook as elevated, further underscoring the case for a rate cut” at the October meeting. They cited reduced business investment and exports resulting from “weakness in global growth and elevated uncertainty regarding trade developments.”

The was near flat at 97.785 by 12:59 AM ET (04:59 GMT).

“Friction between the United States and China is starting to spread from trade to questions about China’s human rights,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities Co in Tokyo.

“This is the perfect opportunity to book some profits and unwind some risk-on trades, which is supportive for the yen and government bonds.”

The pair was little changed at 108.58.

The pair slipped 0.1% to 0.6797, while the pair also fell 0.1% to 0.6413.

The pair inched up 0.1% to 7.0394.

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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US Federal Reserve Exploring Digital Dollar and Its Effect on Monetary System By Cointelegraph


US Federal Reserve Exploring Digital Dollar and Its Effect on Monetary System

The United States Federal Reserve System is exploring the development of a central bank digital currency (CBDC) and what issues and risks it could potentially pose.

Federal Reserve Board Chairman Jerome Powell provided a response to U.S. Representatives French Hill and Bill Fosters’ request on whether the Federal Reserve plans to launch a national digital currency, financial services reporter Zachary Warmbrodt tweeted on Nov. 20.

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.



U.S. Dollar Flat as Tensions With China Rise Over Hong Kong By Investing.com


© Reuters.

Investing.com – The U.S. dollar was flat on Wednesday ahead of the expected release of the Federal Reserve meeting minutes and as tensions between Washington and Beijing rose.

China took offense to the U.S. Senate passing legislation that backed Hong Kong protesters and would ban the export of items like tear gas and rubber bullets to the city’s police force, as conflict between the two sides escalated this week.

The news added to jitters after U.S. President Donald Trump reiterated that he would raise tariffs if phase one of a trade deal with China is not signed. Traders had hoped the deal would have been signed at a summit in Chile scheduled for mid-November, but the deadline was left in limbo after the conference was canceled.

The , which measures the greenback’s strength against a basket of six major currencies, was steady at 97.760 as of 9:56 AM ET (14:56 GMT) after rising to 97.920 earlier in the session.

Meanwhile, the Fed is expected to release the minutes from its October meeting, where it cut rates by 25 basis points for the third time this year.

The safe-haven Japanese yen was slightly lower with up 0.1% to 108.61.

Elsewhere, sterling was steady, with at 1.2918 while at 1.1075. The trade-sensitive Australian dollar was lower, with falling 0.1% to 0.6818.

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 rises as U.S.-China relations worsen over Hong Kong and tariffs By Reuters


© Reuters. FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration

By Elizabeth Howcroft

(Reuters) – The dollar rose on Wednesday and trade-exposed currencies fell after the U.S. president threatened a trade war escalation and China condemned a U.S. senate measure backing pro-democracy protesters in Hong Kong.

China’s yuan slipped to a new two-week low in overnight trading after U.S. President Donald Trump threatened to raise new tariffs on Chinese imports if ongoing trade negotiations fail.

China condemned the U.S. legislation aimed at protecting human rights in Hong Kong, saying that the U.S. should stop interfering.

After four days of falling, the dollar was up 0.1% against both the euro () and a basket of currencies. ()

“Today the main focus is the trade talks between China and the U.S. and we are seeing risk aversion,” said Piotr Matys, currency strategist at Rabobank.

Matys said that the U.S. senate’s bill in support of Hong Kong could complicate progress towards a preliminary trade deal.

Markets had hoped that a partial trade deal to end the 16-month U.S.-China trade war could be signed at a summit in Chile, which was scheduled for mid-November. The summit was cancelled, leaving the outlook for a deal unclear.

Adam Cole, chief currency strategist at RBC Capital Markets said that a preliminary “phase one” trade deal could be reached by the end of the year.

“The prospect of a broader more all-encompassing deal will drag on well into next year,” he added.

“The market is worrying (about) this sort of exogenous shock to the process by the build-up of tension in Hong Kong – I ultimately doubt that either side will allow that to delay the process,” Cole said.

The Canadian dollar fell against the U.S. dollar to its lowest since Oct. 11 after a speech by the Bank of Canada’s senior deputy governor boosted the perceived likelihood of a rate cut.

Trade-exposed currencies took a hit from the worsening U.S.-China relations. The Australian and New Zealand dollars were both down 0.4% versus the U.S. dollar , .

The Norwegian crown was down 0.9% versus the dollar and 0.7% versus the euro ().

The Swedish crown tracked these losses, but to a lesser extent, down 0.4% versus the dollar and 0.7% versus the euro ().

Demand for safe-have currencies was relatively unchanged, with the Japanese yen up around 0.1% against the dollar and the Swiss franc flat around 0.9905 .

Minutes from the U.S. federal reserve’s FOMC meeting in October are due at 19.00 GMT. Analysts expect little impact.

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 steadies after 3 days of losses as trade deal hopes dim By Reuters


© Reuters. A man displays US dollar notes after withdrawing cash from a bank in Harare

By Saikat Chatterjee

LONDON (Reuters) – The dollar stabilized against a broad basket of other currencies on Tuesday after three consecutive days of losses as investors waited for the release of the minutes of the U.S. central bank meeting at end-October when policymakers had cut interest rates.

Global macro hedge funds had ramped up their dollar selling for a third week according to latest weekly positioning data and some market watchers say hawkish policy minutes could trigger a dollar rebound.

The greenback has hit a trough since late last week as hopes for a preliminary trade deal between the United States and China evaporated.

Expectations had grown that Washington and Beijing would sign a so-called “phase one” deal this month to scale back their 16-month-long trade war but those hopes received a setback on Monday after CNBC reported China is pessimistic about agreeing to a deal, which suggests a resolution to perhaps the biggest risk to the global economy remains elusive.

“Trade headlines is dominating sentiment but in terms of the key event risk, the release of the Fed minutes will be a big one for market participants,” said Morten Lund, a senior FX strategist at Nordea.

Against a basket of its rivals (), the greenback was broadly steady at 97.84 after weakening more than 0.6% in the last three sessions. It had hit a one-month high of 98.45 on Nov. 13.

Elsewhere in the currency market, the Australian dollar fell 0.16% to $0.6799 and declined 0.26% to 73.82 yen ().

Australia’s central bank “agreed a case could be made” for another cut in the 0.75% cash rate at its November meeting given unwelcome weakness in wages growth and inflation, minutes published on Tuesday showed.

Sterling held firm around $1.2950 with the pound buoyed by polls pointing to a victory by the ruling Conservatives in upcoming elections.

In the onshore market, the yuan fell to a two-week low of 7.0295 per dollar.

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 nurses losses as hopes for trade deal fade By Reuters



By Stanley White

TOKYO (Reuters) – The dollar nursed losses against major currencies on Tuesday as receding hopes for a preliminary trade deal between the United States and China hurt demand for the greenback.

The Australian dollar held steady before minutes from a Reserve Bank of Australia policy meeting which may provide clues about the future course of interest rates.

There have been high expectations that the United States and China would sign a so-called “phase one” deal some time this month to scale back their 16-month long trade war.

However, the dollar took a hit on Monday after CNBC reported that China is pessimistic about agreeing a deal, which suggests a resolution to perhaps the biggest risk to the global economy remains elusive.

“The dollar tried to break above 109 yen, but it couldn’t because of worries about the trade deal,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.

“The Treasury market is starting to reflect similar concerns about the lack of a trade deal. This will keep dollar/yen in a narrow range.”

The dollar was a shade lower at 108.65 yen, following a 0.09% decline on Monday.

The dollar was quoted at $1.1072 per euro () on Tuesday in Asia after falling to the lowest in almost two weeks.

Against a basket of six major currencies, the () stood at 97.794, close to a two-week low.

Citing a government source, CNBC reported on Monday that Beijing was pessimistic about a trade deal with the United States, troubled by Trump’s comments that there was no agreement on phasing out tariffs.

Washington and Beijing have imposed tariffs on each other’s goods in a bitter dispute over Chinese trade practices that the U.S. government says are unfair.

The tariffs have slowed global trade and raised the risk of recession for some economies. Many economists say the drag on global growth will remain as long as tariffs stay in place.

Currency traders were also wary of the dollar after Trump met U.S. Federal Reserve Chairman Jerome Powell on Monday amid the U.S. president’s repeated criticism that the Fed has not lowered interest rates enough.

“Everything was discussed including interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc.,” Trump tweeted soon after the meeting, calling the session “good & cordial.”

In a statement, the Fed said Powell’s expectations for future policy were not discussed, but Trump has for more than a year charged the Fed with undermining his economic policies by, in his view, keeping interest rates too high.

Elsewhere in the currency market, the Australian dollar was quoted at $0.6812.

Australia’s central bank will release minutes later on Tuesday from its meeting earlier this month where it kept policy steady but left the door ajar for further easing if needed.

The central bank has already cut rates three times to an historic low of 0.75%.

The took a hit last week after data showed Australian employment suffered its sharpest fall in three years in October, underlining the need for stimulus.





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U.S. Dollar Falls as Trade Deal Uncertainty Spreads By Investing.com


© Reuters.

Investing.com – The U.S. dollar fell on Monday after CNBC reported that Chinese officials are pessimistic that a trade deal will be signed.

The report, which cited government sources, said the bleak outlook was due to U.S. President Donald Trump’s reluctance to roll back tariffs. China has been pushing for the two sides to remove tariffs as they work on a phase one trade deal. Trump has said that he has not agreed to end tariffs, causing uncertainty on whether or not there will be a deal. Since then, both sides have said they are making progress but have not given any details on the outcome of talks.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 97.700 as of 10:25 AM ET (15:25 GMT).

The safe-haven Japanese yen was higher with down 0.1% to 108.59.

Elsewhere, sterling was steady, after rising 0.4% earlier in the session on news that all Conservative Party candidates at the Dec. 12 election have pledged to back Prime Minister Boris Johson’s Brexit deal. Opinion polls suggest that the Conservatives will win the election.

rose 0.4% to 1.2953 while was up 0.2% to 1.1068.

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 Hits 1-Week Low as Trade Developments Awaited By Investing.com


© Reuters.

Investing.com – The dollar slid to one- week lows against a currency basket on Monday, as traders awaited fresh indications on whether the U.S. and China are moving closer to a deal to end their trade war which has roiled financial markets and acted as a drag on global growth.

The edged down 0.11% to 97.77 by 02:23 AM ET (07:23 GMT), its lowest level since Nov. 7.

Chinese state media Xinhua reported Sunday that the two sides had “constructive talks” on trade in a high-level phone call on Saturday, but gave no further details on the timing of a possible deal.

“It all sounds promising,” said Marshall Gittler Chief Strategist at FX analysis firm ACLS Global. “But China has made rolling back some of the tariffs a precondition for the agreement and it’s not clear whether Trump will agree to that…so net-net, it’s still up in the air.”

Against the safe-haven , the dollar was up 0.17% to 108.91.

The was a touch higher at 1.1062.

Currency traders are awaiting the first major speech by European Central Bank President Christine Lagarde due on Friday for clues on future policy.

The climbed 0.4% to a two-week high of 1.2946 after Prime Minister Boris Johnson said all Conservative Party candidates at the Dec. 12 election had pledged to back his Brexit deal.

It was also supported by fresh opinion polls pointing to a Conservative victory.

The dollar and bonds are likely to be sensitive to minutes of the Federal Reserve’s last policy meeting, set to be released on Wednesday.

“The minutes are likely to reiterate that the U.S. economy is ‘solid’ and that current monetary policy settings are ‘appropriate’, which would support the dollar,” said Joseph Capurso, a currency analyst at Commonwealth Bank of Australia.

However, he noted the soft report on October U.S. retail sales released on Friday suggested previously strong consumption was showing some cracks.

“Any further weakness in consumption could warrant a material reassessment of the outlook by the FOMC. Under our baseline, the FOMC would most likely start cutting interest rates again in 2020,” said Capurso.

–Reuters contributed to this report

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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