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.

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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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Fed holds off on permanent lending tool as policymakers mull details By Reuters



By Matt Scuffham and Jonnelle Marte

NEW YORK (Reuters) – The Federal Reserve will hold off deciding whether to introduce a permanent lending facility aimed at staving off the money market ructions seen earlier this fall even as a growing number of policymakers warm to the idea, several sources told Reuters.

Concerns ranging from how to fine tune such a facility to whether the temporary solution the Fed installed several weeks ago is sufficient for the long term are feeding a debate over the matter.

Around two-thirds of the Federal Open Market Committee – the central bank’s policy-making arm – is broadly supportive of establishing a so-called standing repurchase agreement – or repo – facility, according to three of the sources. That is consistent with the “many” committee members who saw such a fixture as a “useful backstop” to address market shocks, the latest FOMC minutes from its meeting in October released on Wednesday showed.

Specific questions around what interest rate it should charge, who would be able to use it and what could be used as collateral still need to be resolved. A decision is unlikely to be made until at least the first quarter of 2020, the sources said.

Fed Chairman Jerome Powell, whose perspective looms large in the debate, has so far given little public indication of whether he sees the need for a standing facility to be introduced.

Following a liquidity crunch in mid-September, the Fed committed to inject cash into the banking system each day until at least January, as well as purchasing Treasury bills, to ensure there are “ample” reserves in the banking system.

The repo market underpins the U.S. financial system, helping ensure banks have the liquidity to meet their daily operational needs and maintain sufficient reserves. If the market dries up, it can disrupt financial markets leaving banks unable to raise enough cash to fund trades and meet regulatory requirements.

While support for the idea is growing, the FOMC’s meeting minutes showed a number of participants thought more work was needed to assess pricing, participation and acceptable collateral. Some policymakers are concerned the facility could become stigmatized if the rate is set too high while a rate set too low could result in inappropriately large and frequent repo operations, the minutes showed.

The sources also said some policymakers believe the facility should be restricted to primary dealers, or the top 24 Wall Street firms that do business directly with the Fed, while others say all banks under Fed supervision should be able to participate, the sources said.

Big U.S. banks have clung to a large share of excess reserves, partly to meet liquidity requirements enacted in response to the global financial crisis a decade ago. Some economists say that left repo markets susceptible to freezing.

Supporters of a standing repo facility say it would encourage banks to hold Treasuries in the knowledge they can quickly convert them into cash at a minimal discount. That would boost liquidity in overnight lending markets, preventing sharp rises in interest rates when liquidity dries up and eliminating the need for temporary interventions by the Fed, they say.

Most Fed policymakers were against a standing repo prior to September’s liquidity crunch, arguing that the difficulties of implementing the facility outweighed its benefits and questioned whether it was needed. However, opinion among policymakers has shifted over the past couple of months with most officials recognizing the merits of the facility, the sources 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.



Got Bitcoin? US Fed Warns National Debt Growth Is ‘Not Sustainable’ By Cointelegraph


© Reuters. Got Bitcoin? US Fed Warns National Debt Growth Is ‘Not Sustainable’

The head of the United States Federal Reserve has admitted current economic policy is “not sustainable” — but that it is not its job to fix it.

Speaking during testimony before Congress’ Joint Economic Committee on Nov. 13, Jerome Powell noted that currently, U.S. national debt is growing faster than nominal GDP.

Continue Reading on Coin Telegraph

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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.



Fed Officials See Climate Change as Pressing Threat to Economy By Bloomberg


© Reuters. Fed Officials See Climate Change as Pressing Threat to Economy

(Bloomberg) — Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify (NYSE:) or Pocket Cast.

Climate change poses current and future risks to the U.S. economy, warned two Federal Reserve policy makers at the U.S. central bank’s inaugural conference on climate.

“Climate change is an economic issue we can’t afford to ignore,” San Francisco Fed President Mary Daly said Friday in San Francisco. “The impact of these events go well beyond their immediate disruptions. They can destroy wealth, exacerbate existing income inequalities, and — in the most severe cases — displace people permanently.”

The Fed conference showed policy makers getting serious about what it means for their goals of preserving price stability and maximum employment while ensuring the soundness of the banking system. Disasters from devastating wildfires in California to storms pounding Eastern Seaboard cities have pushed climate change higher on the U.S. agenda, even as President Donald Trump formally begins withdrawing from the Paris climate accord.

Governor Lael Brainard echoed Daly, saying climate change could create uncertainty that held back investment and economic activity and was not something the Fed could ignore.

“Climate risks are projected to have profound effects on the U.S. economy and financial system,” she said in remarks prepared for delivery later on Friday. “As policies are implemented to mitigate climate change, they will affect prices, productivity, employment, and output in ways that could have implications for monetary policy.”

Their comments followed a similar warning by a senior New York Fed official who said Thursday that risk managers must not ignore climate threats. Brainard said the Fed was in discussions about participating in the Central Banks and Supervisors Network for Greening the Financial System in order to learn from peers abroad.

Read more: Fed Says Climate Losses of $500 Billion Show Threat to Economy

Climate-related impacts have been on especially dramatic display this year in Daly’s district, which encompasses nine western states including California, a $3 trillion economy that as a nation tops the U.K. as the world’s fifth-largest. The Golden State’s catastrophic wildfires and power outages to prevent more from igniting may already have have had a combined $11.5 billion impact, Bank of the West’s chief economist Scott Anderson estimates.

The San Francisco Fed chief said damage from severe weather cost insurers more than $50 billion in 2018 alone, and including uninsured damage nearly double that number.

“Sea level changes are disrupting communities from San Diego to Alaska,” Daly said. “Preemptive power outages and wildfires in populated areas of California are a new way of life. Really, every state in our district is somehow affected.”

Read more: How California’s Quiet Fire Season Suddenly Turned Into Chaos

Daly listed where the fallout from climate-related events spilled over into the Fed’s core mission, citing potential disruption to the U.S. payment system, ensuring the soundness of the nation’s banks, and implementing monetary policy.

“Early research suggests that increased warming has already started to reduce average output growth in the U.S. And future growth may be curtailed even further as temperatures rise,” she 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.



U.S. Dollar Remains Lackluster After Fed Rate Cut By Investing.com


© Reuters.

Investing.com – The U.S. dollar remained lower against other currencies on Thursday after falling during the prior session when the Federal Reserve cut rates by 25 basis points and failed to give clarity on further easing.

The Fed cut interest rates to a target range of between 1.50% and 1.75% and dropped previous phrase that it “will act as appropriate” to sustain the economic expansion.

The , which measures the greenback’s strength against a basket of six major currencies, fell 0.3% to 97.148 as of 10:14 AM ET (13:14 GMT).

The safe-haven Japanese yen was higher with down 0.7% to 108.07, as trade tensions weighed.

A report by Bloomberg cast doubt over the course of the U.S.-China trade dispute, alleging that Chinese officials are reluctant to commit to any long-term deal with President Donald Trump, whom they see as unreliable. That’s despite both countries saying they had made substantial progress to a preliminary deal in the coming weeks. The report repeated familiar complaints by Chinese officials resisting the structural reforms demanded by the U.S., which include state subsidies and protection for intellectual property rights.

Elsewhere, sterling was higher, with up 0.4% to 1.2947 while was flat at 1.1146.

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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Trump blasts Fed after rate cut, says hurting U.S. competitiveness By Reuters



WASHINGTON (Reuters) – U.S. President Donald Trump on Thursday launched a broadside attack on the U.S. Federal Reserve and its chairman, Jerome Powell, saying the central bank’s policies were hurting U.S. competitiveness.

“The Fed puts us at a competitive disadvantage. China is not our problem, the Federal Reserve is,” Trump said on Twitter, adding that interest rates in the United States should be lower than Germany, Japan “and all others”.

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 Slips After Fed Policy Decision By Investing.com


© Reuters.

Investing.com – The U.S. dollar slipped on Thursday in Asia after the Federal Reserve slashed its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75% as expected, but altered language in its post-meeting statements and indicated that it may pause rate cuts from here.

The Fed removed a key clause that said the Fed was committed to “act as appropriate to sustain the expansion.”

Fed Chair Jerome Powell said in a news conference that central bank officials “see the current stance of monetary policy as likely to remain appropriate.”

“We see the current stance of policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook.”

The that tracks the greenback against a basket of other currencies was down 0.3% to 97.127 by 1:10 AM ET (05:10 GMT).

Trade tensions between China and the U.S. remained uncertain after Chile said it is canceling the Asia-Pacific Economic Cooperation summit next month due to ongoing protests. U.S. President Donald Trump and Chinese President Xi Jinping were expected to meet on the sidelines and possibly sign phase one of a trade deal.

The pair gained 0.2% to 1.2927 after the U.K. Parliament voted this week to hold an early general election on Dec. 12.

The pair slipped 0.2% to 108.66. As expected, the Bank of Japan maintained its short-term interest rate target at -0.1% and a pledge to guide 10-year government bond yields around 0%.

The pair and the pair jumped 0.4% and 0.6%.

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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Gold Prices Gain Amid Sino-U.S. Trade Uncertainties; Fed Cuts Rate as Expected By Investing.com


© Reuters.

Investing.com – Gold drew some safe-haven demand on Thursday in Asia after Chile announced on Wednesday it had canceled a November meeting of the Asia Pacific Economic Cooperation council, which was supposed to provide the original venue for the signing of a partial trade deal between China and the U.S.

Chile also extended a state of emergency to several cities across the country as it grappled with nationwide protests sparked by a proposed hike in public transport fares.

for December delivery rose 0.2% to 1,499.95 by 1:33 AM ET (05:33 GMT).

Limiting the gains of the yellow metal werereports that Washington still planned to sign the deal with China in November despite the cancelation of the summit.

China’s cabinet adviser Zhu Guangyao told Reuters on the sidelines of a forum in Singapore on China-U.S. relations that he is still optimistic that a deal can be signed next month.

“Based on (the principles of) mutual trust and mutual benefits, I believe both countries can achieve great success,” said Zhu, who was directly involved in the bilateral trade talks as a vice finance minister until his retirement in 2018.

In other news, the U.S. Federal Reserve slashed its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%, as expected.

The central bank hinted that it may pause its future rate hike plans, as it removed a key clause in the post-meeting statement that said the Fed was committed to “act as appropriate to sustain the expansion.”

Fed Chair Jerome Powell said in a news conference that central bank officials “see the current stance of monetary policy as likely to remain appropriate.”

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 Treads Water Ahead of Expected Fed Rate Cut By Investing.com


© Reuters.

Investing.com – The dollar was holding steady against the other major currencies on Wednesday ahead of an expected interest rate cut from the Federal Reserve and data on third quarter growth that could shed light on the longer term outlook for monetary policy.

The U.S. central bank is expected to for a third time in as many meetings when it concludes its two-day meeting on Wednesday.

Advance data on was also expected to be scrutinized for clues on the economic outlook, coming ahead of other major data releases such as Friday’s key non-farm payrolls report.

“In the last 4-5 weeks there has been a concern that the consumer part of the market is starting to slow and that could mean more cuts next year,” said Derek Halpenny, European head of global markets at MUFG in London.

“So what lies ahead post the Fed meeting, the GDP data, payrolls will shape market expectations in addition to what (Fed chief Jerome) Powell will say today.”

The dollar was steady against the at 1.1118 by 05:17 AM ET (09:17 GMT) and marginally lower versus a of six major currencies at 97.41.

Against the , the greenback was also little changed at 108.82, not far from its three-month high of 109.07 yen touched on Tuesday.

Investors are watching for any indication that further cuts are likely, with futures pricing suggesting more easing is expected in 2020. If that is not foreshadowed, traders expect the dollar to rise.

“If the market is going to price in the end of current rate-cut cycle, the dollar/yen could climb above 110 yen,” said Tohru Sasaki, head of Japan markets research at JPMorgan Chase Bank.

“On the other hand, if the market is going to price in two more cuts after this month’s expected cut, the pair could fall to mid-107 yen level,” he added.

Optimism that Washington and Beijing would finalize the first-stage of a trade deal next month had boosted risk assets in recent days, but markets have turned wary.

A U.S. administration official said on Tuesday an interim trade agreement between the two side might not be completed in time for signing on the sidelines of an Asia-Pacific summit in Chile next month, but that does not mean the accord is falling apart.

was also stable, holding below recent five-month highs, after Britain’s lower house of parliament approved calling an early election in December that might break the Brexit deadlock.

–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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Fed Cuts Rates by Quarter Point Amid Concerns About Global Economy, Trade By Investing.com


© Reuters.

Investing.com – The Federal Reserve cut interest rates by 25 basis points Wednesday, in what was a widely expected decision, amid persistent concerns over the sluggish pace of inflation and the slowdown in the global economy.

The Federal Open Market Committee cut its to a range of 1.5% to 1.75% from a previous range of 1.75% to 2.00%.

In the accompanying monetary policy statement, the Fed said economic activity had been rising at a “moderate” rate, though it pointed to “muted inflation pressures” as one the reasons for cutting rates.

The (PCE) index, the Fed’s preferred measure of inflation, has remained shy of the central bank’s 2% target.

The first reading of third-quarter U.S. GDP, released earlier Wednesday, showed that the pace of economic growth slowed in the third quarter from the second, as ongoing strength in the consumer was offset by a slowdown in business investment.

The Fed acknowledged the two opposing forces on economic growth, saying that “although household spending has been rising at a strong pace, business fixed investment and exports remain weak.”

It was the third rate cut in as many meetings, with the Fed sticking to its guidance that it would “act as appropriate” to keep economic growth alive.

But the Fed has been quick to rein in investor expectations that a prolonged period of easing may follow, characterizing the previous rate cuts – in July and September – as an insurance policy against downside risks to its outlook.

That has done little to appease its detractors, who believe the central bank should accelerate rate cuts, potentially into negative territory.

“The Fed doesn’t have a clue! We have unlimited potential, only held back by the Federal Reserve,” President Donald Trump wrote on Twitter Tuesday.

In the lead-up to the Fed meeting, Scotiabank Economics said that since the central bank’s last meeting in mid-September there’s “increased evidence of a synchronous deterioration in global growth prospects and continued uncertainty toward Brexit and trade policy developments with as yet nothing resolved.”

Looking ahead, the Fed continued to suggest that it would monitor incoming economic data to assess future monetary policy action.

Traders are expected to shift attention to Fed Chairman Jerome Powell’s at 2:30 PM ET (18:30 GMT) for more insight into the central bank’s thinking on monetary policy.

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.