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.





Source link

Oil steadies as fall in U.S. inventories offsets weak economic data


LONDON (Reuters) – Oil steadied on Wednesday, following several days of declines, after industry data showed a surprise drop in U.S. crude inventories, although gains were capped as weak economic readings in the United States depressed global markets.

FILE PHOTO: A pumpjack is seen at the Sinopec-operated Shengli oil field in Dongying, Shandong province, China January 12, 2017. REUTERS/Chen Aizhu/File Photo

Brent crude futures, an international benchmark for oil prices, were down 6 cents at $58.83 a barrel at 1307 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 6 cents to $53.68 a barrel.

Front-month WTI prices settled down for a sixth straight session on Tuesday, their longest losing streak this year, after U.S. manufacturing activity dropped to a 10-year low as U.S.-China trade tensions weighed on exports.

(GRAPHIC – U.S. manufacturing: here)

However, prices found some support from American Petroleum Institute (API) data which showed U.S. crude stocks fell last week by 5.9 million barrels, against expectations for an increase of 1.6 million barrels. [API/S]

“It seems to be a fight between two opposing forces; On the bullish side another draw in U.S. inventories, on the bearish side concerns on weaker economic data, and currently ebbing tensions in the oil market,” said Giovanni Staunovo, an oil analyst at UBS.

“I still hold a constructive outlook short term,” he added.

The Energy Information Administration’s (EIA) weekly oil inventories report is due at 1030 EDT (1430 GMT). [EIA/S]

“Even if the EIA were to confirm the API crude oil number this afternoon, the momentum off a single number can easily fade as the economy is front and center for global markets right now,” said Harry Tchilinguirian, global oil strategist at BNP Paribas.

Russian President Vladimir Putin said Russia would continue to be a responsible player in the alliance between OPEC and non-OPEC oil-producing nations, known as OPEC+.

Speaking at an energy forum in Moscow attended by the Saudi and Iranian energy ministers, Putin said it was important to use all available tools to balance the energy markets.

Iran’s Oil Minister Bijan Zanganeh said he expected a slight surplus on the oil supply side next year.

The United Arab Emirates’ Minister of Energy and Industry Suhail al-Mazrouei said OPEC and its allies were monitoring global oil markets, and that conformity levels were the same as previously announced at the last OPEC+ joint ministerial monitoring committee meeting.

(GRAPHIC – OPEC Production: here)

Meanwhile, Ecuador, one of the smallest members of the Organization of the Petroleum Exporting Countries, said it would leave the 14-nation bloc from Jan. 1 due to fiscal problems. Ecuador will be the second country to withdraw from OPEC in the last year after the departure of Qatar.

Additional reporting by Florence Tan and Roslan Khasawneh in Singapore; Editing by Mark Potter and Susan Fenton



Source link

USD Steadies Ahead of Fed Meeting;Yen Unmoved by Potential Japan-U.S. Deal By Investing.com


© Reuters.

Investing.com – The U.S. dollar steadied on Wednesday in Asia ahead of the U.S. Federal Reserve’s two-day policy meeting.

The Fed is expected to cut the target range for the Fed funds rate by 25 basis points at this week’s meeting.

Although stronger-than-expected retail sales and consumer sentiment data, coupled with hopes of a breakthrough in the trade dispute with China, appeared to weaken the argument for easing in recent days.

The U.S. dollar index that tracks the greenback against a basket of other currencies was little changed at 97.863.

“Speculators are already excessively short in the dollar,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo, in a Reuters report.

“If there are no surprises from the Fed, the speculators will have to give up their dollar shorts. The biggest reaction would be in dollar/yen, because you can’t really buy the pound or the euro at the moment.”

Traders are also keeping an eye out on the Sino-U.S. trade development. U.S. President Donald Trump told reporters on Tuesday that Washington could reach a trade deal with China before the U.S. presidential election.

The president said that China would prefer to deal with someone else, but warned that terms of the deal will be “far worse” if it came after the 2020 election.

“I think there’ll be a deal maybe soon, maybe before the election, or one day after the election. And if it’s after the election, it’ll be a deal like you’ve never seen, it’ll be the greatest deal ever and China knows that,” Trump said.

The USD/CNY pair traded 0.1% lower at 7.0866.

The USD/JPY pair inched up 0.1% to 108.19. The yen was little moved by White House adviser Larry Kudlow’s comments that Trump and his administration may formally announce a trade deal with Japan next week.

The GBP/USD pair slipped 0.1% to 1.2486 as sentiment remained weak amid uncertainty over Brexit.

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

Oil Steadies, but U.S. Crude Ends Week Down 3% By Investing.com


© Reuters.

By Barani Krishnan

Investing.com – Between John Bolton and OPEC, oil bulls just can’t seem to catch the break they want.

Those long WTI and got a slight reprieve Friday as the selloff in oil slowed. But the benchmark crude contracts still accrued sharp weekly losses on worries that the fall of former U.S. national security advisor Bolton would mean the return of Iranian oil to the market. OPEC’s caution of weak demand for its oil also weighed.

, the U.S. benchmark blend, settled down 24 cents, or 0.4%, at $54.85 per barrel.

, the international benchmark blend, settled down 16 cents, or 0.3%, at $60.22 per barrel.

For the week, WTI was down nearly 3%, its sharpest slide since the week ended July 14. showed a 2.1% drop on the week.

.

Brokerage TD Securities noted that while there was a more positive tone to oil on Friday “on the CTA front, WTI buying … remains on thin ice with $54/bbl serving as key selling levels”.

Phil Flynn, a well-known oil bull and analyst with the Price Futures Group in Chicago, said the best way for the global oil market to handle the potential return of Iranian oil supply was to cut a deal with China.

“Despite all the talk of slowing demand growth, the reality is crude is in tight supply. U.S. oil supply is now 4% below the five-year average and in Europe and globally, supplies are falling as well,” Flynn wrote in his daily report.

“A U.S./China trade deal would put the market in a deficit. China already is responding positively by removing tariffs on soybeans and pork,” he added.

The White House has banned global trade of Iranian oil since November. Prior to the sanctions, Iranian oil exports peaked at about 2.8 million bpd in April 2018. Should the embargo be lifted, an additional 1 million barrels bpd — much of them in bonded storage in China or floating offshore — could end up on the global market quickly.

News reports in recent days suggested that Bolton exited after President Donald Trump wanted to relax sanctions on Iran in order to work out a new nuclear deal that would allow the Islamic Republic to export its oil again in return for not developing atomic weapons.

The selloff in oil accelerated on Wednesday after French President Emmanuel Macron reportedly spoke on the phone with his Iranian counterpart Hassan Rouhani to discuss a nuclear deal to take to Trump. Macron has been acting as a go-between with Iran and the U.S.

With Rouhani due to attend the U.N. general assembly in New York beginning Sept. 25, speculation is rife that Trump wants to set up a meeting with him. Rouhani has said he wouldn’t agree to any talks until sanctions were removed and Trump has suggested he’s open to that.

OPEC, meanwhile, is trying to force its members, Iran one of them, to keep to a daily production cut of 1.2 million barrels.

In its monthly report on Wednesday, the cartel forecast that demand for its own crude will average 29.4 million barrels per day in 2020, down 1.2 million bpd from this year. has become the No. 1 export competitor to OPEC oil this year, shipping a steady 3 million bpd or so in recent weeks.

OPEC aside, the Paris-based International Energy Agency also warned of a global oil glut on Thursday, saying risk premiums and supply threats were significantly cut as tensions in the Middle East Gulf have eased and oil industry operations appeared to be normalizing.



U.S. Dollar Steadies as Retail Sales Outperform Expectations; Yen Falls By Investing.com


© Reuters.

Investing.com – The U.S. dollar steadied on Friday in Asia, while the Japanese yen fell following the release of better-than-expected U.S. retail sales data.

The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.1% to 98.062 by 12:50 AM ET (04:50 GMT).

U.S. rose 0.7% in July from a month earlier, data showed. Markets previously expected a rise of 0.3%.

Despite the positive data, analysts warned the fragile calm in markets might not last too long.

An inversion of the U.S. Treasury yield curve sparked concerns of a potential recession, while uncertainties surrounding the Sino-U.S. trade war also weigh as Beijing vowed retaliation against additional U.S. tariffs on Chinese goods.

Ongoing protests in Hong Kong are also expected to further complicate the U.S.-China relationship. On Thursday, U.S. President Donald Trump said he trusts Chinese leader Xi Jinping would want to solve the Hong Kong problem “quickly and humanely.” China responded by saying it does not want outside opinions on internal matters.

The safe-haven yen fell against the dollar as investor sentiment recovered somewhat amid hopes that central banks, particularly the Federal Reserve, would step in to ease monetary policy.

The pair inched up 0.1% to 106.13.

“Hoping for the best on the policy front but positioning for the worst on the economic backdrop seems to be the flavor of the day,” said Stephen Innes, a managing partner at Valour Markets.

“The Fed, now out of necessity alone, will need to adjust policy much more profoundly than they expected.”

Fed Chairman Jerome Powell may give a hint of his thinking when he speaks on Aug. 23 at the annual central bankers retreat in Jackson Hole, Wyoming. The topic of his remarks is Challenges for Monetary Policy, according to the Fed’s public schedule updated on Thursday.

The pair gained 0.2% to 0.6789, while the pair lost 0.1% to 0.6439.

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 Steadies Against Safe Havens After China Vows Not to Weaponize Yuan By Investing.com


© Reuters.

Investing.com – The U.S. dollar steadied after a drubbing the previous day, clawing back losses against safe-haven currencies as China took steps to limit weakness in the yuan and reassured investors that it wouldn’t weaponize its currency in its trade spat with the U.S.

The , which measures the green against a trade-weighted basket of six major currencies, rose by 0.15% to 97.63.

The dollar found its footing, led by gains against safe-haven yen and Swiss franc, as demand for safe havens eased somewhat on signs China is unlikely to deliberately weaken the yuan – to offset the impact of the U.S.-Sino trade war – after the People’s Bank of China set the daily currency limit of the yuan at a stronger-than-expected level,

The move comes a day after the Chinese’s central bank allowed the yuan to slip below 7 per dollar – a level it had previously vowed to protect – for the first time since 2008. Traders had feared that further action to weaken the yuan would risk additional tariffs being imposed by the U.S., and lead to a currency war. President Trump on Monday labelled China a “currency manipulator”

rose 0.49% to Y106.47 and climbed 0.41% to 0.977.

also supported the greenback after retreating from a session high of $1.221 to trade at $1.214, up just 0.01%, amid rising fears the U.K. could leave the European Union without a trade deal, referred to as a “hard Brexit.”

Senior EU and U.K. diplomats reportedly left Brussels with the impression that a no-deal Brexit is now the “central scenario” of the new U.K. Prime Minister Boris Johnson, according to reports in U.K. media.

fell 0.07% to $1.119, while added 0.58% to C$1.329 as the loonie came under pressure amid falling oil prices on fears the US-China trade will hurt oil demand.

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

China’s Yuan Steadies, Investor Sentiment Remains Fragile By Investing.com


© Reuters.

Investing.com – China’s yuan steadied on Tuesday after overnight declines, but market sentiment remained fragile a day after a steep selloff in global markets spurred by fears over the escalating U.S. – China trade war.

China’s extended the previous day’s declines and briefly weakened to 7.1382, the lowest since international trading in the Chinese currency began in 2010. But it pulled back to 7.0690 after Beijing’s firmer-than-expected yuan fixing on Tuesday.

The onshore fell to an 11-year low early on Tuesday, brushing 7.0699 per dollar.

In a symbolic move, Beijing let the yuan breach 7-per-dollar on Monday for the first time since late 2008 following U.S. President Donald Trump’s decision to impose 10% tariffs on $300 billion of Chinese imports, ending a month-long trade truce.

Analysts saw China’s decision as a signal that it will not back down and that a trade war which is already affecting global growth will only worsen from here.

But the Chinese central bank’s mid-point fixing on Tuesday of 6.9683 was firmer than market expectations, and the yuan’s retreat slowed.

U.S. Treasury Secretary Steven Mnuchin said in a statement on Monday the government had determined that China is manipulating its currency and that Washington would engage with the International Monetary Fund to eliminate unfair competition from Beijing.

“Trump has already hit China with so many tariffs, we’re not certain what else can he do now that he’s declared China a currency manipulator,” said Takuya Kanda, general manager of research at Gaitame.Com Research Institute in Tokyo.

“The trade war has entered a new phase and we are very unsure what comes next. This type of uncertainty will keep the yuan weak and the dollar weak versus the yen.”

The Japanese , a perceived safe-haven in times of market turmoil and political tensions, touched a seven-month high of 105.53 per dollar before dropping back to 106.37 in volatile trade.

The , another currency sought in times of turmoil, has gained roughly 1% against the dollar this week. It set a six-week peak of 0.970 franc per dollar, before pulling back to 0.9741.

The was little changed against the dollar at 1.1206.

–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.





Source link

Gold Steadies on Bets or Fed Cut Despite Q2 U.S. GDP By Investing.com


© Reuters.

By Barani Krishnan

Investing.com – Gold bulls are wagering they have little to lose in their bets for a Fed rate cut, to the extend that a better-than-expected Q2 GDP hasn’t dissuaded those long on the yellow metal in anticipation of the first U.S. monetary easing in a decade.

, reflective of trades in bullion, traded at $1,419.74 per ounce by 2:33 PM ET (18:33 GMT), up $5.48, or 0.4%, on the day.

for August delivery, traded on the Comex division of the New York Mercantile Exchange, settled up $4.60, or 0.3%, at $1,419.30.

For the week though, spot gold dropped by 0.4% while Comex futures slid by 0.5%. Gold futures in New York are up about 10.8% for the year.

Those losses came after gold suffered its sharpest one-day slide in three weeks on Thursday when the European Central Bank decided to hold on to rates instead of adopting a cut as some expected.

The prospect of lower interest rates benefits non-yielding bullion.

Expectations that the Federal Reserve will cut rates by at least 25 basis points at its July 30-31 policy meeting powered a solid run across markets this month, helping gold hit six-year highs above $1,450.

Yet, the Commerce Department’s report on Friday that U.S. gross domestic product growth expanded at a 2.1% annualized rate in the second quarter, higher than the forecast 1.8%, made some wary that the Fed might hold back from an immediate easing.

The advanced reading for second-quarter GDP saw growth in the U.S. slow from 3.1% in the first three months of the year to 2.1%, better than the expected drop to 1.8%.

But Michael Hewson, chief market analyst at CMC Markets in London, said the headline growth figure, personal consumption expendintures index of 2.3% and core PCE of 1.8% were all good numbers.

“Remind me why the Fed needs to cut again?” he tweeted. “If the Fed does cut next week, I’m struggling to see how there won’t be some form of dissent.”

Markets have fully priced in expectations that the Fed will cut interest rates by 25 basis points on July 31, but speculation has been fluctuating over a more aggressive 50 basis-point cut.

Those odds fell to 19.4% after the GDP report came out, compared to 23.5% ahead of the release.

Some argued that the stronger-than-expected second quarter growth would not derail the Fed’s plans for a rate cut.

“This is just what the market needed, not so soft that the economy is slowing down precipitously and not so strong that the Fed is going to reverse course,” said Art Hogan, chief market strategist at National Securities in New York.

“We expected bad earnings and bad GDP numbers, but an upside on both is something markets are going to embrace today.”

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 Slightly Lower in Cautious Trade, Sterling Steadies By Investing.com


© Reuters.

Investing.com – The U.S. dollar was slightly weaker against a currency basket on Thursday as lower U.S. yields and a recovery in the British pound weighed.

The versus a basket of six major currencies dipped to 96.76 by 02:49 AM ET (06:49 GMT) after shedding 0.2% on Wednesday.

The index had climbed to a one-week high of 97.44 on Wednesday on stronger-than-expected U.S. retail sales and a slump in sterling. But it reversed course as Treasury yields fell following weak U.S. housing market data.

Concerns over the ongoing U.S.-China trade war also weighed after the Wall Street Journal reported that progress toward a deal had stalled.

“The dollar basically handed back earlier gains as Treasury yields pulled back and on IMF comments, and came back to where it was a few days ago,” said Takuya Kanda, general manager at Gaitame.Com Research Institute.

Various economic data have given conflicting signs regarding the state of the U.S. economy, but that does not change the bigger picture of the dollar facing downward pressure due to an impending rate cut by the Federal Reserve, Kanda said.

The International Monetary Fund (IMF) on Wednesday said the greenback was overvalued by 6% to 12%, based on near-term economic fundamentals.

The Fed is to cut interest rates by 0.25% at its July meeting, with some in the market pricing in a larger 0.5% rate cut.

The was almost unchanged at 1.2432. It hit a low of 1.2382 in the previous day, its weakest level since April 2017 amid growing fears over the prospect of a no-deal Brexit, before selling abated.

The was a touch higher at 1.1234 after edging up 0.1% on Wednesday. The single currency’s gains were modest as it was restrained by expectations of easing from the European Central Bank as early as next week.

The dollar was weaker against the , down 0.3% to 107.71 following an overnight loss of 0.3%.

The hovered near a three-month peak of 0.6745 scaled overnight. The kiwi has gained more than 0.5% this week, supported by positive domestic factors such as strong inflation.

The was up 0.36% at 0.7032 after ending the previous day little changed. Data overnight showed that Australian full-time employment surged in June, but the unemployment rate stayed stuck at 5.2% for a third straight month.

The data reinforced the view that labor market conditions have eased, underlining expectations for further rate cuts by the country’s central bank later this year.

–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.





Source link

Dollar steadies as strong U.S. inflation tempers chance of aggressive Fed rate cut By Reuters


© Reuters. Dollar steadies as strong U.S. inflation tempers chance of aggressive Fed rate cut

By Shinichi Saoshiro

TOKYO (Reuters) – The dollar was steady on Friday, having regained some traction against its peers after stronger-than-expected U.S. inflation data tempered the prospect of an aggressive Federal Reserve interest rate cut later this month.

The core U.S. consumer price index excluding food and energy components rose 0.3% in June, the largest increase since January 2018, data on Thursday showed.

The signs of a pick-up in underlying inflation, along with separate data on weekly jobless claims showing the labor market remained solid, curbed financial market expectations of a more aggressive 50 basis point cut at the Fed’s July 30-31 meeting.

Markets are still fully priced for a quarter percentage point cut as U.S. policymakers seek to support a slowing economy.

The dollar was little changed at 108.490 yen after rebounding from a low of 107.860 plumbed on Thursday in response to dovish comments from Fed Chairman Jerome Powell, which had revived the chance of a 50 basis-point cut.

“The dollar bounced back as the strong U.S. CPI got the market to question the Fed’s view on prices and whether inflation was really as weak as projected,” said Takuya Kanda, general manager at Gaitame.Com Research Institute.

“Expectations for a 50 basis point cut had risen after Powell’s comments but were lowered again by the CPI. Until the Fed’s meeting later this month, the prospect of a 50 basis point cut will continue ebbing back and forth on each major data release.”

The () against a basket of six major currencies stood little changed at 97.081 after retracing much of its losses on Thursday, when it had briefly stooped to a six-day low of 96.795.

The euro () was flat at $1.1254, having pulled back from a high of $1.1285 scaled on Thursday prior to the U.S. inflation data..

The Australian dollar dipped 0.05% to $0.6972 after gaining 0.2% the previous day.

The U.S. Treasury 10-year yield (), which often dictates the direction of the dollar, was at 2.134% after jumping 8 basis points overnight on the strong U.S. inflation data and a weak 30-year bond auction.

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