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Euro Steady as Market Waits for Stabilization Signs in PMIs

The euro is trading sideways against the dollar early Thursday in Europe, awaiting what are likely to be market-moving business surveys from around the region. Preliminary purchasing managers’ indexes from IHS Markit are due at staggered intervals, with the euro zone manufacturing and composite PMIs due at 04:00 AM ET (0800 GMT). Economists are forecasting that the manufacturing PMI will stabilize after sliding from over 60 at the start of 2018 to below 48 in March, w...
Posted on: Apr 18, 2019 08:34:07 Read More

Strong China 1Q GDP Sends Yuan, Euro, Aussie Higher

The dollar was broadly lower in early trading in Europe on Wednesday after China’s slightly faster-than-expected economic growth in the first quarter encouraged a new leg up in commodity currencies. At 04:00 AM ET (0800 GMT), the dollar index, which measures the greenback against a basket of six major currencies, was flirting with a three-week low at 96.578, down 0.1% from late Tuesday in Europe. Earlier, China’s statistics office had said gross domestic product grew...
Posted on: Apr 17, 2019 09:32:33 Read More

Sterling volatility measures fall to 15-month lows

Expectations for volatility in the British pound plummeted to their lowest levels in more than a year on Tuesday after European Union leaders and the British government last week announced Brexit would be delayed for up to six months.   Sterling implied volatility gauges slipped across the board, extending a recent decline, to their lowest levels since January 2018, as no significant Brexit-related developments were expected this week....
Posted on: Apr 16, 2019 09:00:06 Read More

Dollar Lower on Trump Tirades, Risk-Friendly Backdrop

The dollar was slightly lower in early trading in Europe Monday, as risk assets around the world benefit from last week’s events that included an encouraging start to earnings season in the U.S. and further signs that the Chinese economy is regaining momentum. At 04:00 AM ET (0800 GMT), the euro was up 0.1% from late Friday in Europe at $1.1315, while the British pound was also a fraction higher at $1.3085 but still hamstrung by the continued political deadlock over Br...
Posted on: Apr 15, 2019 08:54:18 Read More

Goldman Pushes Back Fed Hike Forecast to 4Q 2020 From 1Q 2020

Economists at Goldman Sachs Group Inc (NYSE:GS). have pushed back their forecast for the Federal Reserve to raise interest rates amid low inflation and political scrutiny of the central bank’s decisions. The U.S. bank now expects the Fed to hike in the fourth quarter of 2020 from the first quarter. The shift comes even as the bank lifted its U.S. gross domestic product forecast to 2.5 percent in the second half of 2019 and 2.25 percent in the first half of 2020. "But the infla...
Posted on: Apr 12, 2019 08:30:01 Read More

Euro Higher as Chinese Trade Data Support Risk Appetite

The euro was slightly higher against the dollar and pound in early trade in Europe on Friday, supported by signs of an economic rebound in China and reports of buying related to a big cross-border acquisition, while sterling continues to slip amid the prospect of more months of Brexit-related uncertainty. Reuters reported speculative buying of the euro ahead of the completion of Mitsubishi UFJ’s acquisition of the aviation business of Germany’s DZ Bank, a deal that will co...
Posted on: Apr 12, 2019 08:28:32 Read More

Euro, Sterling Inch Higher After Brexit Postponement

The euro and pound were little changed against each other and higher against the dollar in early trading in Europe Thursday after the European Union agreed to push back the U.K.’s departure date as far as Oct. 31. The decision essentially leaves the pound in limbo, with the possibility of a no-deal Brexit still very much alive, and the prospect of a chaotic campaign for European elections to come. As such, it’s unlikely to end the uncertainty that has depressed both business and con...
Posted on: Apr 11, 2019 09:23:32 Read More

What if Turkey squeezed the London lira market to death?

Turkey's authorities have shown over the past month they are capable of squeezing the life out of the $35 billion (26.75 billion pounds)-a-day London lira market - but the cost of killing it off completely would be high for country itself. The lira's 2018 plunge triggered a deep recession, and President Recep Tayyip Erdogan’s government may see the attraction of suffocating an offshore market it believes to be a hotbed of destabilising speculation. Ankara knows that market greases the wh...
Posted on: Apr 9, 2019 12:21:21 Read More

Euro Steady After Trump's Sanctions Threat; Brexit Summit Eyed

The euro is still struggling for direction early Tuesday in Europe amid reports that the U.S. administration is preparing to impose fresh tariffs on European Union in response to what it perceives as unfair subsidies to aerospace giant Airbus. The news is an unwelcome reminder that the settling of one trade war with China may simply free the U.S. up to launch another with its other major trading partner and commercial rival, posing a fresh threat to a world economy that is slowing down. At 04:...
Posted on: Apr 9, 2019 09:08:37 Read More

Dollar Little Changed as Brexit Deadline Approaches

Foreign exchange markets have started the week quietly in Europe, with both the major European currencies in holding patterns ahead of a crucial week for Brexit, while the dollar is still drifting as it waits for hard news of trade deal between the U.S. and China. The European Union has to decide at a summit on Wednesday whether it’s willing to push back the deadline for the U.K.’s departure beyond the default date of Friday. Expectations are that the EU will offer some sort of ext...
Posted on: Apr 8, 2019 09:05:18 Read More

Sterling to rise 3 percent if Brexit deal looks likely

Sterling will rally 3 percent if the Brexit gridlock is resolved and Britain looks likely to leave the European Union with a deal but the currency will tumble 5 percent if negotiations fail, a Reuters poll found. The pound tanked after the June 2016 referendum result -- as predicted by Reuters polls beforehand -- and was trading at around $1.31 on Thursday, far weaker than it was ahead of the vote. Since the decision to leave, the pound has gyrated wildly on any Brexit news and largely shrugge...
Posted on: Apr 5, 2019 08:09:20 Read More

U.S. Dollar Falls After Weak ADP Data

The greenback fell on Wednesday as weak payrolls data underlined worries over the strength of the economy. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 96.70 as of 9:24 AM ET (14:24 GMT). Payment processor ADP (NASDAQ:ADP) said that U.S. private sector posted its lowest job growth in 18 months. The weak numbers support the Federal Reserve extending a pause on rate hikes, as the central bank remains co...
Posted on: Apr 3, 2019 15:25:55 Read More

Bitcoin briefly hits $5,000 after 20 percent surge

Bitcoin briefly touched $5,000 (£3,828) on Tuesday, its highest level since late November, while other cryptocurrencies also surged. On the Luxembourg-based Bitstamp exchange, Bitcoin rose as much as 20 percent in Asian trading to briefly touch the $5,000 mark before settling at $4,730 by 0700 GMT, up 14 percent on the day; still its biggest one-day gain since April of last year. Ethereum's ether and Ripple's XRP, two other large cryptocurrencies, also jumped higher.   I...
Posted on: Apr 2, 2019 08:27:48 Read More

Dollar Rises vs Pound, Euro as Hard Brexit Approaches

The dollar was close to its highest level in nearly three weeks in early trading in Europe Tuesday, as the rising likelihood of a disruptive and disorderly Brexit hit confidence in both the euro and sterling. At 03:00 AM ET (0700 GMT), the dollar index, which measures the greenback against a basket of six major currencies, was at 96.920, up some 0.2% from its closing levels on Monday. The pound had fallen nearly a cent late Monday after lawmakers yet again voted down all pr...
Posted on: Apr 2, 2019 08:22:15 Read More

Dollar Dips as China PMI Bounce Revives Risk Appetite

The dollar is opening the week slightly lower after a bounce in Chinese manufacturing activity encouraged traders to start the new quarter with some cautious optimism. The British pound, meanwhile, has also recouped some of the losses it suffered at the end of a chaotic week in U.K. politics, although the respite looks set to be brief, given weekend press reports that the country’s parties are tentatively planning for a general election to break the deadlock on Brexit. At 03:00 AM ET (08...
Posted on: Apr 1, 2019 09:01:01 Read More

Europe's Markets Are Ending Strong Quarter Sharply Higher

Europe’s stock markets are closing the quarter on a surprisingly upbeat note, following Wall Street and Asia higher. There’s no obvious catalyst for the move: U.S. and Chinese officials appear no nearer a trade deal than before, and President Donald Trump’s chief economic adviser Larry Kudlow said late Thursday it could take months rather than weeks to iron out the remaining wrinkles. The Financial Times reported Friday that Chinese officials, too, concede that an agreement co...
Posted on: Mar 29, 2019 09:52:09 Read More

Russia Is Dumping U.S. Dollars to Hoard Gold

Vladimir Putin’s quest to break Russia’s reliance on the U.S. dollar has set off a literal gold rush. Within the span of a decade, the country quadrupled its bullion reserves and 2018 marked the most ambitious year yet. And the pace is keeping up so far this year. Data from the central bank show that holdings rose by 1 million ounces in February, the most since November. The data shows that Russia is making rapid progress in its effort to diversify away from American asse...
Posted on: Mar 29, 2019 09:03:19 Read More

Democrats Love a Wealth Tax, But Europeans Are Ditching the Idea

Democrats are busy finding new ways to tax the rich. The most straightforward way to do that -- an annual tax on household wealth -- is an idea with deep roots in Europe that several 2020 hopefuls are hoping to import to the U.S. Yet of the 15 European countries that tried a wealth tax in recent years, only four still employ it. Most of those governments ultimately were underwhelmed by the amount of revenue raised and overwhelmed by the difficulty in collecting an accurate tax. Nevertheles...
Posted on: Mar 28, 2019 12:55:50 Read More

Pound below nine-month highs before Brexit votes

The pound hovered below a recent nine-month high on Wednesday before a series of indicative votes in the British parliament on how to break the Brexit impasse. With options including stopping Brexit to a new customs union to Prime Minister Theresa May's existing deal still in the mix, markets doubt there will be a conclusion tonight and the full process of finding an advisory plan could run through Monday. "The possibility of no outstandingly well-supported option, however, remains, and would ...
Posted on: Mar 27, 2019 10:47:48 Read More

Dollar Rises on Fresh Signs of Chinese Slowdown

The dollar is higher against most of its peers early Wednesday in Europe as a steady drumbeat of gloomy news about the economic outlook keeps a firm cap on risk appetite. U.S. housing and consumer confidence data both fell short of expectations Tuesday, and the negative tone was sustained overnight by the Reserve Bank of New Zealand’s surprising announcement that its next move in interest rates is more likely to be down than up. The news sent the kiwi plummeting by 1.5% aga...
Posted on: Mar 27, 2019 09:51:42 Read More