Dollar logs modest weekly advantage as bulls hope for summer hike

The U.S. greenback reinforced Friday in opposition to its main competitors, on target to log a modest weekly gain as bullish traders held out hope that the Federal Reserve might increase hobby costs in July or September.

The ICE U.S. dollar index DXY, +0.sixty three% a measure of the buck’s power towards a basket of six competitors, turned into up zero.6% at 94.5400, on track for a weekly advantage of 0.five%.

The euro EURUSD, -0.5656% traded at $1.1258 overdue Friday in ny for a weekly decline of zero.9%. It sold $1.1310 past due Thursday.

against its japanese counterpart, the dollar USDJPY, -zero.12% offered ¥106.75 overdue Friday, notching a weekly advantage of 0.2%. It traded at ¥107.05 Thursday,

The pound GBPUSD, -1.3902% finished off a disastrous week by way of falling sharply Friday afternoon after a brand new ballot showed 55% of U.k. citizens prefer leaving the eu Union. It in brief touched an eight-week low of $1.4180, before trimming its decline slightly. One pound bought $1.4267 late Friday in the big apple, for a weekly drop of 1.7% — its sharpest tumble when you consider that Feb. 26. with the aid of evaluation, the British foreign money traded at $1.4466 overdue Thursday.

The dollar got here underneath stress after legit statistics launched past due last week confirmed U.S. jobs growth slowed sharply in may additionally. On Monday, Chairwoman Janet Yellen said the principal financial institution needs to await greater records to decide whether or not the vulnerable may also report became an anomaly or signaled deeper troubles, sparking in addition declines in the greenback.

however the foreign money strengthened after a separate robust analyzing on job openings and a fall within the number of people submitting for first-time unemployment advantages restored a few religion in the exertions marketplace. The dollar did pare its profits barely after a survey by means of the college of Michigan confirmed purchaser sentiment dipped in June.

In theory, higher hobby fees must reason the dollar to strengthen by means of increasing the go back on greenback-denominated debts and property.

while the dollar traded in a good variety for maximum of this week, that would alternate after the Federal Reserve’s June policy assembly, which results Wednesday.

at the same time as few anticipate the imperative financial institution to cut charges subsequent week, the tone of its economic statement and projections may want to spark a massive flow inside the dollar, said Christopher Vecchio, a currency analyst at DailyFX.

“Being in the market proper now could be like sitting at the beach after an afternoon within the solar, but understanding full properly that there are darkish hurricane clouds approaching fast on the horizon; it’s a matter of time earlier than the downpour starts,” Vecchio said.

meanwhile, the crucial financial institution of Russia lowered its key hobby fee to ten.five% from 11%, its first cut in nearly a yr, sparking a selloff in the ruble USDRUB, +1.7152%

Loonie rallies as Canadian registers sturdy jobs increase
The Canadian dollar briefly turned better towards its U.S. rival after reliable statistics confirmed sturdy jobs boom in Canada last month. however falling oil charges speedy helped the currency erase all of its gains. The loonie CADUSD, -0.4460% sold seventy eight.38 cents past due Friday, as compared with 78.fifty eight cents late Thursday.

U.S. dollar drifts lower against euro, yen in pre-Christmas trade

© Reuters.  U.S. dollar drifts lower in pre-Christmas trade

The dollar edged lower against the euro and yen in subdued trade on Thursday, with moves likely to remain limited ahead of the Christmas holiday.

Trading volumes are expected to remain light, with much of the Western world already shuttered for the Christmas and year-end holidays.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.27% at 98.12 during European morning hours.

The index, which has fallen back to levels seen before the Federal Reserve raised interest rates on December 17, remains well off last week’s two-week high of 99.33.

The greenback weakened followed the release of mixed U.S. economic data on Wednesday. Orders for U.S. core capital goods, a key barometer of private-sector business investment, declined 0.4% last month, while shipments of core capital goods, a category used to calculate quarterly economic growth, slumped 0.5%.

However, separate reports showed that personal spending rose for the eighth straight month in November, while consumer sentiment improved to a five-month high in December.

With the first U.S. rate hike since 2006 out of the way, the focus is now on the pace of future rate increases. The Fed, from its forecasts, is anticipating four rate hikes next year. However, the Fed funds futures currently suggests there will be just two rate increases, in June and December.

The dollar slid against the euro, with EUR/USD gaining 0.37% to 1.0952. Against the yen, the greenback dipped 0.45% to 120.38 (USD/JPY).

Trading volumes are expected to remain light as many traders already closed books before the end of the year, reducing liquidity in the market and increasing volatility. U.S. markets close early Thursday, Christmas Eve, and are shut Friday for Christmas Day.

Dollar extends gains vs. rivals as data adds to Fed uncertainty

© Reuters.  U.S. dollar adds to gains after data deluge

The dollar added to gains against its major rivals on Wednesday, as a flurry of mixed U.S. data failed to offer clues as to how fast the Federal Reserve will raise interest rates next year.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% at 98.46 during U.S. morning hours.

The U.S. Commerce Department said that durable goods orders, which include transportation items, were unchanged last month, compared to forecasts for a decline of 0.6%. Core durable goods orders, excluding volatile transportation items, fell by 0.1% in November, disappointing expectations for a gain of 0.1%.

Orders for core capital goods, a key barometer of private-sector business investment, decreased 0.4% last month, worse than expectations for a decline of 0.1%, while shipments of core capital goods, a category used to calculate quarterly economic growth, decreased 0.5% in November, confounding forecasts for a gain of 0.5%.

A separate report showed that personal spending inched up 0.3% last month, meeting forecasts. Personal income, meanwhile, rose 0.3%, above forecasts for a 0.2% gain.

The core PCE price index rose 0.1% last month. On an annualized rate, the core PCE price index increased 1.3%. The Fed uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2% or below.

Trading volumes are expected to remain light as many traders already closed books before the end of the year, reducing liquidity in the market and increasing volatility. U.S. markets close early Thursday, Christmas Eve, and are shut Friday for Christmas Day.

Dollar edges higher ahead of U.S. durable goods report

© Reuters. U.S. dollar gains ahead of data deluge

The dollar edged higher against its major rivals in pre-holiday trade on Wednesday, as investors awaited the release of U.S. durable goods data due later in the day for further indications on the strength of the economy.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% at 98.41 during European morning hours.

The U.S. is to produce data on durable goods orders at 8:30AM ET on Wednesday, amid expectations for a decline of 0.6% in November, following a gain of 2.9% a month earlier, while core orders are forecast to rise 0.1% after increasing 0.5% in October.

In addition, the U.S. is release reports on new home sales, consumer sentiment and crude oil inventories.

Earlier in the day, data showed that U.S. personal spending inched up by a seasonally adjusted 0.3% last month, meeting forecasts. Personal spending for October was revised down to a flat reading from a previously reported gain of 0.1%. Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.

The figure, which was to be made public at 8:30AM ET Wednesday along with the agency’s report on personal income, was released early on the Bureau of Economic Analysis’ website.

On Tuesday, data said the U.S. economy grew 2.0% in the third quarter, downwardly revised from a preliminary estimate of 2.1%, but above expectations for 1.9%. A separate report showed that existing home sales tumbled 10.5% to a 19-month low of 4.76 million units in November from 5.32 million a month earlier.

Investors also continued to focus on the crude oil market, as prices ticked higher for the second straight day, boosting global stocks and supporting sentiment.

Trading volumes are expected to remain light as many traders already closed books before the end of the year, reducing liquidity in the market and increasing volatility. U.S. markets close early Thursday, Christmas Eve, and are shut Friday for Christmas Day.

Dollar remains broadly lower after downbeat U.S. data

© Reuters.  Dollar holds onto losses as U.S. data weighs

Investing The dollar remained broadly lower against the other major currencies on Tuesday, after the release of downbeat U.S. economic reports dampened demand for the greenback.

Trading volumes were expected to remain limited ahead of the Christmas Holiday.

USD/JPY slid 0.33% to 120.79.

The dollar weakened after the U.S. National Association of Realtors said that existing home sales tumbled 10.5% to a 19-month low of 4.76 million units last month from 5.32 million in October. Analysts had expected existing home sales to rise to 5.35 million units in November.

The data came shortly after the U.S. Commerce Department reported that gross domestic product grew at an annual rate of 2.0% in the three months ending September 30, better than expectations for 1.9%.

Preliminary data initially pegged U.S. growth at 2.1% in the third quarter. The U.S. economy grew 3.9% in the second quarter.

EUR/USD gained 0.55% to 1.0976.

The euro’s gains were expected to remain limited however, as inconclusive elections in Spain over the weekend sparked political concerns.

Spanish Prime Minister Mariano Rajoy said on Monday that his centre-right People’s Party (PP) would talk to rivals in a bid to form a government, but the left-wing parties reportedly said they would not want Rajoy to remain in power.

Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USDdown 0.30% at 1.4841 and with USD/CHF declining 0.51% at 0.9871.

Earlier Tuesday, the U.K. Office for National Statistics reported that public sector net borrowing rose to £13.56 billion in November from £6.75 billion in October, whose figure was revised from a previously estimated £7.47 billion.

Analysts had expected public sector net borrowing to rise to £11.00 billion last month.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.79% at 0.7248 and with NZD/USD advancing 0.85% to 0.6819.

Meanwhile, USD/CAD slipped 0.23% to trade at 1.3925, still close to Friday’s more than 11-year high of 1.4000.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.40% at 98.04.