GBP News 

Dollar slides as US jobs data dents Fed tightening outlook; yuan on back foot

“The downbeat trade data reinforced views that Chinese authorities will have to roll out more support and stimulus measures soon to stabilize the economy, even if a trade deal with Washington is reached” reports cnbc.com. The Chinese yuan was on the defensive to after weak data pointed to a further cooling in the world’s second-biggest economy.The dollar fell 0.26 percent against the yen to 112.43, edging near Thursday’s 5 1/2-week low of 112.23. Source: cnbc.com Share This:

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News 

Dollar traders take a breath before jobs report

“Major currency pairs were struggling for direction in early Friday trading, ahead of a data-heavy morning in the U.S., where traders are waiting for the November jobs report” writes Markets Reporter for marketwatch.com. The November jobs report is due at 8:30 a.m.Don’t miss: Why currency experts expect the dollar to struggle in 2019 Similarly, the euro EURUSD, -0.0879% , the greenback’s major rival and biggest component of the dollar gauge, was slightly lower, fetching $1.1371, versus $1.1379 late Thursday. Source: marketwatch.com Share This:

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Markets News 

As the market hurtles towards disaster in 2019, one expert reveals the ‘deus ex machina’ that could save the day — and breaks down how it could happen

“Since commodities are priced in USD, a big 2019 commodity rally would imply a big 2019 dollar sell-off,” he said” writes Joe Ciolli for businessinsider.com. Since a stronger euro inevitably means a weaker dollar, Deluard builds this scenario around the conditions that could push the European currency higher.”Because the euro and closely-correlated European currencies such as the pound and Swiss franc account for close to 80% of the Dollar Index, a big 2019 euro rally would necessarily lead to a big 2019 dollar selloff,” Deluard said.Deluard notes that, amid all…

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News 

EUR/USD: Three reasons to prefer the downside – Barclays

“First, euro area growth is moderating and could be further negatively affected by a potential US-EU trade war” writes Yohay’s Google Profile for forexcrunch.com. Third, while we expect no major escalation of political risks in Italy before the European elections, the current equilibrium is very fragile, especially against a backdrop of decelerating economic activity and banking sector fragilities,” Barclays argues. “All of the aforementioned makes us think that risks to the single currency still skew to the downside,” Barclays adds. Source: forexcrunch.com Share This:

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News Regulators 

Euro zone inflation dips as ECB braces to end bond buying

“Euro zone inflation slowed as expected in November, while core inflation readings were below market expectations, supporting European Central Bank policymakers who favor a cautious exit from monetary stimulus” writes unknown author for cnbc.com. The ECB now expects inflation to average 1.7 percent through 2020 but an oil price drop of more than 30 percent since early October has raised downside risks to its projections.Another core inflation reading often watched by economists, which removes all food, energy, alcohol and tobacco prices, also dropped to 1.0 percent.The ECB still plans to…

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News Stocks 

Growth and trade worries to keep a lid on European stocks in 2019: Reuters poll

“This means if the U.S. recovers, euro zone stocks will recover too but to a lesser degree,” said City of London’s Huber” writes Midwest Communications Inc for 95kqds.com. European and euro zone indices have fallen 8-10 percent so far this year, lagging Wall Street, as analysts have been slashing their earnings growth forecasts amid a weakening economic outlook and tensions over Italy’s budget.”We do not see euro zone equities performing next year as (we) expect the earnings cycle to continue to deteriorate,” said Stephane Ekolo, strategist at Tradition in London.MILAN…

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News Regulators 

Euro zone slowdown not enough to derail ECB plans, Draghi says

“The euro zone has lost some growth momentum but this was mostly normal and not enough to derail plans by the European Central Bank (ECB) to dial back stimulus further, ECB President Mario Draghi and two of his top lieutenants said on Monday” writes Francois Lenoir for cnbc.com. Euro zone growth has been disappointing since the summer months, and Germany, the bloc’s biggest economy, even contracted last quarter, raising some concern that the ECB may be cutting support at the worst possible moment.”A gradual slowdown is normal as expansions mature…

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GBP News 

Euro falls on economic growth fears

“The euro fell nearly half a percent on Friday after signs that economic growth could be slowing across the euro zone” writes unknown author for cnbc.com. Euro zone business growth slowed much faster than expected this month, a widely-watched Purchasing Managers Index (PMI) survey showed.The single currency, earlier trading positive, dropped more than 0.4 percent to as low as $1.1402 after the surveys were published.The euro also fell 0.2 percent against the Swiss franc to 1.1326 francs.German private-sector growth slowed to its lowest level in nearly four years as factories…

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News Regulators 

Safe-haven dollar trades lower as risk-on sentiment returns

“The dollar index, a measure of its value versus six major peers, traded lower at 96.7 on Thursday” writes unknown author for cnbc.com. Analysts believe the medium-term direction of the dollar will be decided by the monetary tightening path of the Federal Reserve.The euro gained marginally versus the dollar to trade at $1.1388.This interest rate differential between U.S. and Japanese bonds, makes the dollar a more attractive bet than the yen.The dollar had been actively bid over the last two trading sessions as risk appetite receded on fears over a…

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Markets News 

Dollar rally pauses as euro turns higher

“On the one hand, the prospects of slower rate hikes from the Federal Reserve could weigh on the dollar” writes Markets Reporter for marketwatch.com. This followed Tuesday’s rally, which coincided with a sharp drop in equity markets.Besides Italy, the European Union also criticized the budget proposals of Belgium, France, Portugal and Slovenia as possible noncompliant with the Stability and Growth Pact. Source: marketwatch.com Share This:

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