Markets swung wildly last week with volatility underpinned by a huge move higher in bond yields and the US Dollar as investors hammered stocks lower. Traders look to the RBA, OPEC, and NFPs ahead.
Forex signals news and analysis, fundamental stock market breakdown including geopolitical analysis and in depth discussion. Up to date live news feed from around the world, stock market specific.
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Sunday, 28 February 2021
Markets Week Ahead: Nasdaq, US Dollar, Gold, Yields, RBA Decision, OPEC, NFPs
Markets swung wildly last week with volatility underpinned by a huge move higher in bond yields and the US Dollar as investors hammered stocks lower. Traders look to the RBA, OPEC, and NFPs ahead. Via DailyFX - Market News https://ift.tt/32vveVH
Weekly Technical US Dollar Forecast: Finally Turning Higher?
The DXY Index has held onto key technical support, suggesting that bulls may have a bit more fight left yet.
Weekly Technical US Dollar Forecast: Finally Turning Higher?
The DXY Index has held onto key technical support, suggesting that bulls may have a bit more fight left yet. Via DailyFX - Market News https://ift.tt/32vveVH
S&P 500 Forecast: Will Rising Yields Derail Stock Market's Upward Trajectory?
Rising Treasury yields inspired a broad selling in global equities last week. The longer-term outlook remains positive however on the back of the reflationary theme, strong earnings and vaccine pro...
S&P 500 Forecast: Will Rising Yields Derail Stock Market's Upward Trajectory?
Rising Treasury yields inspired a broad selling in global equities last week. The longer-term outlook remains positive however on the back of the reflationary theme, strong earnings and vaccine pro... Via DailyFX - Market News https://ift.tt/32vveVH
How to Manage the Emotions of Trading
Controlling emotions while trading can prove to be the difference between success and failure. Via DailyFX - Market News https://ift.tt/32vveVH
Mexican Peso Forecast: USD/MXN Propped Up by Rising Yields and Weaker Equities
USD/MXN rises to its highest level in 3 months as bonds take control of market sentiment.
Mexican Peso Forecast: USD/MXN Propped Up by Rising Yields and Weaker Equities
USD/MXN rises to its highest level in 3 months as bonds take control of market sentiment. Via DailyFX - Market News https://ift.tt/32vveVH
Euro Forecast: EUR/USD Outlook Improves as German Bund Yields Rise
ECB policymakers were out in force last week, saying they were watching Eurozone government bond yields, but yields rose anyway, and that’s positive for EUR/USD and the Euro crosses.
Euro Forecast: EUR/USD Outlook Improves as German Bund Yields Rise
ECB policymakers were out in force last week, saying they were watching Eurozone government bond yields, but yields rose anyway, and that’s positive for EUR/USD and the Euro crosses. Via DailyFX - Market News https://ift.tt/32vveVH
Saturday, 27 February 2021
NFP and Forex: What is NFP and How to Trade It?
Non-farm payroll figures are highly anticipated by forex traders. Find out how they affect trading. Via DailyFX - Market News https://ift.tt/32vveVH
Gold Price Forecast: XAU Tanks Hard as Yields, Inflation Fears Climb
Gold prices were crushed this week as yields continued to climb. But with a big spot of support coming in, can buyers bring a bounce ahead of NFP?
Gold Price Forecast: XAU Tanks Hard as Yields, Inflation Fears Climb
Gold prices were crushed this week as yields continued to climb. But with a big spot of support coming in, can buyers bring a bounce ahead of NFP? Via DailyFX - Market News https://ift.tt/32vveVH
US Dollar Fundamental Outlook: All Eyes on Treasury Yields as Stocks Wobble
The haven-linked US Dollar may be in a position to benefit in the short-run as economic recovery bets support longer-dated Treasury yields, making them more competitive with stocks.
US Dollar Fundamental Outlook: All Eyes on Treasury Yields as Stocks Wobble
The haven-linked US Dollar may be in a position to benefit in the short-run as economic recovery bets support longer-dated Treasury yields, making them more competitive with stocks. Via DailyFX - Market News https://ift.tt/32vveVH
Forex Vs Stocks: Top Differences & How to Trade Them
Learn the main differences between forex and stocks to understand the best market to trade based on your trading style and strategy. Via DailyFX - Market News https://ift.tt/32vveVH
Canadian Dollar Forecast: USD/CAD Price Hangs on Reflationary Market Sentiment
The reflation trade is helping to push the oil-linked Canadian Dollar higher as the post-Covid economic outlook clears. The Loonie is reliant on the global economy's recovery.
Canadian Dollar Forecast: USD/CAD Price Hangs on Reflationary Market Sentiment
The reflation trade is helping to push the oil-linked Canadian Dollar higher as the post-Covid economic outlook clears. The Loonie is reliant on the global economy's recovery. Via DailyFX - Market News https://ift.tt/32vveVH
Dollar Scores Solid Gains Against Peers
The U.S. dollar firmed up against its peers on Friday as fairly upbeat economic data raised prospects of the Federal Reserve withdrawing stimulus sooner than anticipated.
Meanwhile, speculation is rife that U.S. President Joe Biden's fiscal spending package will not be as large as the proposed $1.9 trillion.
The Commerce Department said personal income spiked by 10% in January after rising by 0.6 percent in December. Economists had expected personal income to soar by 9.5%.
The report also showed a significant rebound in personal spending, which surged up by 2.4% in January after falling by a revised 0.4% in December.
MNI Indicators released a report on Friday showing a bigger than expected slowdown in the pace of growth in Chicago-area business activity in the month of February.
The report said MNI Indicators' Chicago business barometer dropped to 59.5 in February after jumping to a more than two-year high of 63.8 in January.
The dollar index rose to 90.97, gaining nearly 1%.
Against the euro, the dollar was stronger by over 0.8% at 1.2074.
The pound sterling weakened against the dollar, fetching $1.3924 a unit, more than 0.6% less than Thursday's closing level.
The Yen slid to 106.56 a dollar, losing ground from 106.25. Industrial output in Japan was up a seasonally adjusted 4.2% on month in January, according to data released by the Ministry of Economy, Trade and Industry said.
Retail sales in Japan was down a seasonally adjusted 0.5% on month in January, coming in at 12.097 trillion yen. Overall consumer prices in the Tokyo region of Japan - considered a leading indicator for the nationwide trend - were down 0.3% on year in February, following the 0.5% decline in January.
The Aussie was weak with the AUD/USD quoting at 0.7702, falling from 0.7803
The Swiss franc weakened to 0.9085, down more than 0.4% from 0.9048 a dollar. Data from the State Secretariat for Economic Affairs showed that Switzerland's economic growth eased sharply in the fourth quarter as the restrictions imposed to contain the coronavirus pandemic weighed heavily on the service sector.
Gross domestic product gained 0.3% sequentially, much slower than the 7.6% expansion seen in the third quarter. GDP was forecast to climb 0.1%.
The Loonie slipped to 1.2738 falling more than 1% from 1.2603. Data from Statistics Canada showed Canada's industrial product price index rose 2% month-over-month in January, after rising by an upwardly revised 1.7% in December. The index surged 4% year-on-year in January, compared to an earlier reading of a 3.8%.
Meanwhile, Canada's raw material price index was up 5.7% last month, after rising by 3.5% in December 2020.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172792/
Crude Oil Futures Settle Sharply Lower
Crude oil prices drifted lower on Friday, as the dollar gained in strength amid rising bond yields and the latest batch encouraging economic data.
Reports that U.S. supplies are picking up fast after last week's cold-induced shutdown of facilities hurt production contributed as well to the drop in oil prices.
West Texas Intermediate Crude oil futures for April ended up $2.03 or about 3.2% at $61.50 a barrel.
However, WTI crude oil futures gained nearly 4% this week. The contract gained almost 18% in February.
Brent Crude futures shed $2.46 or about 3.7% today, settling at $64.42 a barrel. The contract gained 2.5% in the week, and rose as much as 15% in February.
According to a report from Baker Hughes, oil and natural gas rigs count in the U.S. surged for a seventh month, rising by 5 to 402 this week. However, the addition of 18 rigs in February, is much less compared to the addition of 33 rigs and 31 rigs in January and December, respectively.
It is widely expected that the members of the Organization of the Petroleum Exporting Countries (OPEC), and allies, together called OPEC+, will consider increasing crude production by 500,000 barrels per day from April.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172791/
AUD/USD Rate Pullback to Adhere to RBA Interest Rate Decision
The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in AUD/USD as the central bank is expected to retain the current course for monetary policy.
AUD/USD Rate Pullback to Adhere to RBA Interest Rate Decision
The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in AUD/USD as the central bank is expected to retain the current course for monetary policy. Via DailyFX - Market News https://ift.tt/32vveVH
Treasuries Fluctuate Before Closing Notably Higher
After moving rebounding from yesterday's weakness early in the session, treasuries fluctuated over the course of the trading day on Friday.
Bond prices pulled back off their early highs in morning trading but managed to move back to the upside in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.8 basis points to 1.460 percent.
With the pullback on the day, the ten-year yield gave back ground after ending the previous session at its highest closing level in a year.
Treasuries initially benefited from traders moving into bonds following the recent spike in yields, although buying interest was somewhat subdued.
The subsequent pullback by treasuries came following the release of another batch of largely upbeat U.S. economic data.
A report from the Commerce Department showed U.S. personal income skyrocketed in the month of January, reflecting the issuance of $600 stimulus checks.
The Commerce Department said personal income spiked by 10.0 percent in January after rising by 0.6 percent in December. Economists had expected personal income to soar by 9.5 percent.
The report also showed a significant rebound in personal spending, which surged up by 2.4 percent in January after falling by a revised 0.4 percent in December.
Economists had expected personal spending to jump by 2.5 percent compared to the 0.2 percent dip originally reported for the previous month.
However, treasuries eventually showed a strong move back to the upside as the report also showed inflation remained relatively tame
A reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth ticked up to 1.5 percent in January from 1.4 percent in December.
Concerns about inflation have recently weighed on treasuries despite Fed Chair Jerome Powell's repeated assurances the central bank plans to maintain interest rates at near-zero levels for the foreseeable future.
The Labor Department's closely watched monthly jobs report is likely to be in the spotlight next week, while reports on manufacturing and service sector activity, factory orders and the U.S. trade deficit may also attract some attention.
The Federal Reserve is also scheduled to release its Beige Book, a compilation of economic evidence from the twelve Fed districts.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172790/
Gold Futures Fall Sharply, Extend Losses To 4th Straight Session
Gold futures drifted lower on Friday, extending losses to a fourth straight session, weighed down by rising U.S. Treasury yields.
The yield on 10-year Treasury note dropped a bit today after hitting a 52-week high on Thursday, it still remained a major factor that contributed to the waning demand for the safe-haven metal.
Stronger-than-expected U.S. economic data released overnight also added to the fears that the Fed could withdraw stimulus sooner than anticipated.
Meanwhile, there is speculation that U.S. President Joe Biden's fiscal spending package will not be as large as the proposed $1.9 trillion.
The dollar's sharp uptick too weighed on gold prices. The dollar index rose to 90.92, gaining more than 0.8%. It was last seen hovering around 90.80, up 0.74% from Thursday's close.
Gold futures for April ended down $46.60 or about 2.6% at $1,728.80 an ounce, the lowest close in about eight months. Gold futures shed more than 6.5% in February.
Silver futures for May ended lower by $1.245 at $26.440 an ounce, while Copper futures for May settled at $4.0925 per pound, down $0.1710 from previous close.
The Commerce Department said personal income spiked by 10% in January after rising by 0.6 percent in December. Economists had expected personal income to soar by 9.5%.
The report also showed a significant rebound in personal spending, which surged up by 2.4% in January after falling by a revised 0.4% in December.
MNI Indicators released a report on Friday showing a bigger than expected slowdown in the pace of growth in Chicago-area business activity in the month of February.
The report said MNI Indicators' Chicago business barometer dropped to 59.5 in February after jumping to a more than two-year high of 63.8 in January.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172789/
Friday, 26 February 2021
Euro Price Forecast: EUR/USD at Risk of Reversal with US PCE Data on Tap
Surging US real yields and bets that the Federal Reserve may have to hike rates sooner than expected could open the door for USD to recover lost ground against the Euro in the short term. Via DailyFX - Market News https://ift.tt/32vveVH
Australian Dollar (AUD), Canadian Dollar (CAD) Hit Key Levels from USD Breakdown
Fresh cyclical lows for USD/CAD and AUD/USD hits 0.80 as USD breaks down. Via DailyFX - Market News https://ift.tt/32vveVH
*Malaysia Jan Imports Up 1.3% On Year, Consensus -0.5%
Malaysia Jan Imports Up 1.3% On Year, Consensus -0.5%
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172675/
*Malaysia Jan Exports Up 6.6% On Year, Consensus +6.6%
Malaysia Jan Exports Up 6.6% On Year, Consensus +6.6%
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172674/
Japan Industrial Production Rises 4.2% In January
Industrial output in Japan was up a seasonally adjusted 4.2 percent on month in January, the Ministry of Economy, Trade and Industry said on Friday.
That beat expectations for an increase of 4.0 percent following the 1.0 percent decline in December.
On a yearly basis, industrial production dropped 5.3 percent - roughly in line with forecasts after slipping 2.6 percent in the previous month.
Upon the release of the data, the METI upgraded its assessment of industrial production, saying that it is now picking up.
Industries that contributed to the increase included business oriented machinery, electronic parts and electrical machinery - offset by declines among transport equipment and petroleum products.
Shipments were up 3.2 percent on month and down 5.1 percent on year, while inventories fell 0.2 percent on month and 10.5 percent on year. The inventory ratio was down 6.3 percent on month and 4.8 percent on year.
According to the METI's forecast of industrial production, output is expected to rise 2.1 percent on month in February and then fall 6.1 percent in March.
Industries contributing to the increase in February include production machinery, chemicals and electronic parts. Industries contributing to the decline in March include production machinery, electronic parts and business oriented machinery.
Also on Friday:
. The METI also said that the value of retail sales in Japan was down a seasonally adjusted 0.5 percent on month in January, coming in at 12.097 trillion yen. That beat expectations for a fall of 0.6 percent following the 0.8 percent decline in December.
On a yearly basis, retail sales dropped 2.4 percent - again exceeding expectations for a fall of 2.6 percent after the 0.2 percent dip in the previous month.
Wholesale sales were up 2.1 percent on month and down 5.3 percent on year at 29.402 trillion yen, while commercial sales rose 0.5 percent on month and sank 4.7 percent on year at 41.499 trillion yen.
. The Ministry of Internal Affairs and Communications said that overall consumer prices in the Tokyo region of Japan - considered a leading indicator for the nationwide trend - were down 0.3 percent on year in February, following the 0.5 percent decline in January.
Core CPI, which excludes volatile food prices, also was down an annual 0.3 percent versus expectations for a fall of 0.4 percent - which would have been unchanged from the previous month.
On a seasonally adjusted monthly basis, overall inflation was up 0.1 percent and core CPI was flat.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172673/
*Australia Private Sector Credit +0.2% On Month, +1.7% On Year In January
Australia Private Sector Credit +0.2% On Month, +1.7% On Year In January
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172672/
Japan Retail Sales Slip 0.5% In January
The value of retail sales in Japan was down a seasonally adjusted 0.5 percent on month in January, the Ministry of Economy, Trade and Industry said on Friday - coming in at 12.097 trillion yen.
That beat expectations for a fall of 0.6 percent following the 0.8 percent decline in December.
On a yearly basis, retail sales dropped 2.4 percent - again exceeding expectations for a fall of 2.6 percent after the 0.2 percent dip in the previous month.
Wholesale sales were up 2.1 percent on month and down 5.3 percent on year at 29.402 trillion yen, while commercial sales rose 0.5 percent on month and sank 4.7 percent on year at 41.499 trillion yen.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172671/
Japan Industrial Output Climbs 4.2% In January
Industrial production in Japan was up a seasonally adjusted 4.2 percent on month in January, the Ministry of Economy, Trade and Industry said on Friday.
That beat expectations for an increase of 4.0 percent following the 1.0 percent decline in December.
On a yearly basis, industrial production dropped 5.3 percent - roughly in line with forecasts after slipping 2.6 percent in the previous month.
Upon the release of the data, the METI upgraded its assessment of industrial production, saying that it is now picking up.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172670/
*Japan Retail Sales -0.5% On Month, -2.4% On Year In January
Japan Retail Sales -0.5% On Month, -2.4% On Year In January
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172669/
*Japan Industrial Production +4.2% On Month, -5.3% On Year In January
Japan Industrial Production +4.2% On Month, -5.3% On Year In January
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172668/
Tokyo Inflation Slides 0.3% On Year In February
Overall consumer prices in the Tokyo region of Japan - considered a leading indicator for the nationwide trend - were down 0.3 percent on year in February, the Ministry of Internal Affairs and Communications said on Friday.
That followed the 0.5 percent decline in January.
Core CPI, which excludes volatile food prices, also was down an annual 0.3 percent versus expectations for a fall of 0.4 percent - which would have been unchanged from the previous month.
On a seasonally adjusted monthly basis, overall inflation was up 0.1 percent and core CPI was flat.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172667/
*Tokyo Overall Inflation -0.3% On Year In February; Core CPI -0.3%
Tokyo Overall Inflation -0.3% On Year In February; Core CPI -0.3%
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172666/
Japan Data On Tap For Friday
Japan is scheduled to release a batch of data on Friday, headlining a busy day for Asia-Pacific economic activity. On tap are January figures for industrial production, retail sales, housing starts and construction orders - as well as February figures for Tokyo inflation.
In December, industrial production was down 1.0 percent on month and 2.6 percent on year, while retail sales shed 0.8 percent on month and 0.3 percent on year. Housing starts were down an annual 9.0 percent and construction orders fell 1.3 percent on year. Overall Tokyo inflation was down 0.5 percent on year, while core CPI sank an annual 0.9 percent.
New Zealand will provide January numbers for imports, exports and trade balance. In December, imports were worth NZ$5.33 billion and exports were at NZ$5.35 billion for a trade surplus of NZ$17 million.
Australia will see January data for private sector credit; in December, credit was up 0.3 percent on month and 1.8 percent on year.
Singapore will provide January numbers for bank lending, industrial production and producer prices. In December, bank lending was at SGD678.7 billion, while industrial production was up 2.4 percent on month and 14.3 percent on year and producer prices fell 6.9 percent on year.
Taiwan will release Q4 figures for current account; in the three months prior, the current account surplus was $28.65 billion.
Thailand will see January figures for unemployment; in December, the jobless rate was 1.5 percent.
Finally, the markets in Thailand are closed on Friday for Makha Bucha Day and will re-open on Monday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172665/
Dow Jones Falls on Rising Yields, ASX 200, Nikkei 225 Tumble
The Dow Jones fell the most in nearly a month as Treasury yields surged, setting a sour tone for Asia-Pacific markets. The VIX volatility index spiked to 28.9 amid a ‘risk off’ sentiment. Via DailyFX - Market News https://ift.tt/32vveVH
Indian Rupee, Nifty 50 Outlook: RBI Rate Hike Bets Creeping With CPI Estimates
The Indian Rupee and Nifty 50 have been on a tear this year so far, with local inflation expectations and now RBI rate hike bets slowly on the rise. Are traders getting ahead of themselves? Via DailyFX - Market News https://ift.tt/32vveVH
Dollar Recovers After Early Weakness
The U.S. dollar stayed weak for much of the day's session till well past noon on Thursday, weighed down by the Federal Reserve Chairman Jerome Powell's reiteration that interest rates will remain near-zero level for the foreseeable future.
However, the currency found some support past mid afternoon and turned in a mixed performance against other major currencies.
A report released by the Labor Department showed initial jobless claims tumbled to 730,000, in the week ended February 20th, a decrease of 111,000 from the previous week's revised level of 841,000.
According to a report from the Commerce Department, new orders for U.S. manufactured durable goods spiked by much more than expected in the month of January, soaring 3.4% after jumping by an upwardly revised 1.2% in December.
Revised data released by the Commerce Department showed U.S. gross domestic product jumped 4.1% in the fourth quarter, compared to previously reported 4.0% spike.
The dollar index, which slid to 89.68, rallied to 90.29 later on, and was last seen at 90.24, up 0.07% from previous close.
Against the Euro, the dollar was slightly weak at 1.2176, despite having recovered well from 1.2243 a unit of Euro. Survey results from the European Commission showed that Eurozone economic confidence improved to a one-year high in February on rising sentiment in industry, services and among consumers, reflecting the easing of strict restrictions related to Covid-19 pandemic.
The economic sentiment index rose more-than-expected to 93.4 from 91.5 in the previous month. The score was forecast to climb to 92 in February
The Pound Sterling slid against the greenback, and was fetching $1.4010 a unit, nearly 1% down from previous close of $1.4141. Business optimism improved among U.K. business and professional services in the three months to February, while morale weakened in consumer services, the latest quarterly Service Sector Survey from the Confederation of British Industry showed.
The Yen firmed up to 106.24, gaining nearly 0.4%.
The AUD-USD was at 0.7878, giving the dollar a gain of about 1.1%.
The Swiss franc firmed up to 0.9051 from 0.9065, while the Loonie fell to 1.2606, giving up about 0.75%.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172664/
New Zealand Has NZ$626 Million Trade Shortfall
New Zealand had a merchandise trade deficit of NZ$626 million in January, Statistics New Zealand said on Friday - following the NZ$69 million surplus in December.
Exports were down NZ$486 or 10 percent on year to NZ$4.19 billion, down from NZ$5.38 billion in the previous month.
Imports slid NZ$256 million or 5.0 percent on year to NZ$4.82 billion, down from NZ$5.32 billion a month earlier.
For the year to January, exports fell NZ$775 million or 1.3 percent to NZ$59 billion and imports lost NZ$7.4 billion or 12 percent to NZ$57 billion. The annual trade surplus was NZ$2.7 billion.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172663/
*New Zealand Exports NZ$4.19 Billion In January; Imports NZ$4.82 Billion
New Zealand Exports NZ$4.19 Billion In January; Imports NZ$4.82 Billion
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172662/
*New Zealand Trade Deficit NZ$626 Million In January
New Zealand Trade Deficit NZ$626 Million In January
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172661/
NZD/USD, NZD/JPY React as Soaring Treasury Yields Skew Market Risk Profile
A bloodshed day across Wall Street may spill over into APAC equities as sovereign government bond yields track Treasury rates higher. NZD/USD and NZD/JPY may see some relief and move higher after s... Via DailyFX - Market News https://ift.tt/32vveVH
Treasury Yields Spike Following Upbeat Economic Data
Treasuries saw significant weakness during trading on Thursday, extending the notable move to the downside seen over the past several sessions.
Bond prices came under pressure in early trading and remained firmly negative throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 12.9 basis points to 1.518 percent.
The ten-year yield briefly spiked above 1.6 percent in intraday trading, reaching its highest level in a year. The yield still ended the session at a one-year closing high.
The sell-off by treasuries came as a batch of largely upbeat U.S. economic data further reduced the appeal of safe havens such as bonds.
Early in the day, the Labor Department released a report showing a steep drop in first-time claims for U.S. unemployment benefits in the week ended February 20th.
The Labor Department said initial jobless claims tumbled to 730,000, a decrease of 111,000 from the previous week's revised level of 841,000.
Economists had expected jobless claims to drop to 838,000 from the 861,000 originally reported for the previous week.
With the much bigger than expected decrease, jobless claims fell to their lowest level since hitting 716,000 in the week ended November 28th.
The Commerce Department also released a report showing new orders for U.S. manufactured durable goods spiked by much more than expected in the month of January.
The report said durable goods orders soared by 3.4 percent in January after jumping by an upwardly revised 1.2 percent in December.
Economists had expected durable goods orders to surge up by 1.1 percent compared to the 0.5 percent increase that had been reported for the previous month.
Excluding a sharp increase in orders for transportation equipment, durable goods orders still jumped by 1.4 percent in January after spiking by an upwardly revised 1.7 percent in December.
Ex-transportation orders had been expected to climb by 0.7 percent, matching the increase that had been reported for the previous month.
A separate report released by the Commerce Department showed U.S. gross domestic product jumped by slightly more than originally estimated in the fourth quarter of 2020.
The Commerce Department said GDP surged up by 4.1 percent in the fourth quarter compared to the previously reported 4.0 percent spike. The upward revision matched economist estimates.
The intraday spike by yields came just as the Treasury Department revealed this month's auction of $62 billion worth of seven-year notes attracted well below average demand.
The seven-year note auction drew a high yield of 1.195 percent and a bid-to-cover ratio of 2.04, while the ten previous seven-year note auctions had an average bid-to-cover ratio of 2.42.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Earlier this week, the Treasury revealed its auctions of $60 billion worth of two-year notes and $61 billion worth of five-year notes also attracted below average demand.
Another batch of economic data may impact trading on Friday, with traders likely to keep an eye on reports on personal income and spending, consumer sentiment, and Chicago-area business activity.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172660/
Oil Futures Settle Higher For 4th Straight Day
Crude oil futures settled higher on Thursday, moving up for a fourth straight session amid hopes global energy demand will see a significant rise and hit pre-Covid-19 levels by the end of this year.
West Texas Intermediate Crude oil futures for April ended higher by $0.31 or about 0.5% at $63.53 a barrel, after hitting a fresh 13-month high of $63.81 a barrel.
It is widely expected that global oil demand will reach 100 million barrels per day by the end of the year thanks to the faster momentum in vaccination rollout across the world.
Lower crude production in the U.S., and the Federal Reserve's pledge to keep interest rates at near-zero levels for the foreseeable future too contribute to the rise in crude oil prices in recent sessions.
A rare winter storm in Texas caused U.S. crude production to drop by more than 10%, or 1 million barrels per day (bpd) last week, the Energy Information Administration said in a report.
Oil prices moved higher despite reports that the Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, will likely consider increasing crude production by 500,000 barrels per day beginning in April. The OPEC+ meeting is scheduled to take place next week.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172659/
Gold Futures Settle Lower For 3rd Straight Day
Gold prices drifted lower on Thursday, extending losses to a third straight day, as Treasure yields continued to move up north and data showed a drop in jobless claims, surge in new orders and stronger than expected GDP growth.
The dollar's weakness somewhat limited gold's downside. The dollar index, which dropped to 89.68, recovered subsequently, and after briefly moving past the flat line to 90.26, retreated to 90.10.
Gold futures for April ended down $22.50 or about 1.3% at $1,775.40 an ounce.
Silver futures for May ended lower by $0.243 or 0.9% at $27.685 an ounce, while Copper futures for May settled at $4.2635 per pound, down $0.0405 or 0.9% from previous close.
The 10-year Treasury note advancing nearly 1.5%, putting pressure on the bullion.
In economic news, a report released by the Labor Department showed initial jobless claims tumbled to 730,000, in the week ended February 20th, a decrease of 111,000 from the previous week's revised level of 841,000.
Economists had expected jobless claims to drop to 838,000 from the 861,000 originally reported for the previous week.
According to a report from the Commerce Department, new orders for U.S. manufactured durable goods spiked by much more than expected in the month of January, soaring 3.4%, after jumping by an upwardly revised 1.2% in December. Economists had expected durable goods orders to surge up by 1.1% compared to the 0.5% increase that had been reported for the previous month.
Revised data released by the Commerce Department showed U.S. gross domestic product jumped 4.1% in the fourth quarter, compared to previously reported 0.4% spike.
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source http://www.mt5.com/forex_news/quickview/2172658/
Thursday, 25 February 2021
*New Zealand Feb ANZ Final Business Confidence 7.0, Flash 11.8
New Zealand Feb ANZ Final Business Confidence 7.0, Flash 11.8
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172574/
European Economics Preview: Eurozone Economic Confidence Due
Economic confidence from euro area and consumer confidence from Germany are due on Thursday, headlining a busy day for the European economic news.
At 2.00 am ET, the market research group Gfk releases Germany's consumer sentiment survey results. The forward-looking index is forecast to rise to -14.3 in March from -15.6 in February.
At 2.45 am ET, the French statistical office Insee publishes consumer confidence data for February. Economists expect the index to remain unchanged at 92.0.
At 3.00 am ET, industrial production from Austria and producer prices from Spain are due.
In the meantime, the National Institute of Economic Research is slated to issue Sweden's economic tendency survey results.
At 4.00 am ET, the European Central Bank releases euro area monetary aggregates for January. M3 is forecast to climb 12.5 percent annually, faster than the 12.3 percent rise in December.
At 5.00 am ET, the European Commission is scheduled to issue economic and business sentiment survey results. The economic sentiment index is expected to rise to 92.0 in February from 91.5 in the previous month.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172573/
*Dutch Feb Business Confidence 0.1 Vs. 0.6 In January
Dutch Feb Business Confidence 0.1 Vs. 0.6 In January
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172572/
British Pound (GBP) Latest: GBP/AUD, GBP/NZD, GBP/CAD Under Pressure
Sterling is losing ground against the so-called commodity currencies in a sign that its recent strength may be ebbing away, although the longer-term outlook continues to look bright. Via DailyFX - Market News https://ift.tt/32vveVH
How to Learn Technical Analysis with DailyFX
Getting started in technical analysis can seem daunting but understanding the basics will build a solid foundation. Learn more... Via DailyFX - Market News https://ift.tt/32vveVH
Malaysia Producer Prices Decline Slows In January
Malaysia's producer prices declined at a softer rate in January, figures from the Department of Statistics showed on Thursday.
The producer price index fell 0.1 percent year-on-year in January, following a 2.1 percent decrease in December.
Among sectors, prices of mining declined the most by 28.3 percent annually in January and prices for electricity and gas supply fell 1.9 percent.
Meanwhile, prices for agriculture, forestry and fishing grew 22.6 percent. Prices for water supply and manufacturing increased by 0.5 percent and 1.1 percent, respectively.
On a month-on-month basis, producer prices rose 2.0 percent in January, following a 1.7 percent increase in the preceding month.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172571/
*Japan Dec Lagging Index 90.8, Same As In November
Japan Dec Lagging Index 90.8, Same As In November
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172570/
*Japan Dec Coincident Index 88.3 Vs. 89.0 In November
Japan Dec Coincident Index 88.3 Vs. 89.0 In November
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172569/
*Japan Dec Leading Index 95.3 Vs. 96.1 In November
Japan Dec Leading Index 95.3 Vs. 96.1 In November
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172568/
Dow Jones, Russell 2000 Aiming Higher on Accommodative Fed, Fiscal Stimulus
The Federal Reserve’s accommodative monetary policy settings, and the impending provision of additional fiscal support, will probably pave the way for the Dow Jones and Russell 2000 to continue mov... Via DailyFX - Market News https://ift.tt/32vveVH
*Malaysia Jan Producer Prices -0.1% On Year Vs. -2.1% In December
Malaysia Jan Producer Prices -0.1% On Year Vs. -2.1% In December
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172567/
Indian Rupee, Nifty 50 Outlook: RBI Rate Hike Bets Creeping With CPI Estimates
The Indian Rupee and Nifty 50 have been on a tear this year so far, with local inflation expectations and now RBI rate hike bets slowly on the rise. Are traders getting ahead of themselves? Via DailyFX - Market News https://ift.tt/32vveVH
Crude Oil Price Forecast: Demand and Supply Drivers Firing on All Cylinders
Via DailyFX - Market News https://ift.tt/32vveVH
Australia Private Capex Climbs 3.0% In Q4
Private capital expenditure was up 3.0 percent on quarter in the fourth quarter of 2020, the Australian Bureau of Statistics said on Thursday.
That beat forecasts for a flat reading following the 3.0 percent decline in the three months prior.
Capex for buildings and structures rose 0.7 percent in the December quarter 2020, while capex for equipment, plant and machinery rose 5.7 percent in the December quarter 2020.
Capex for mining fell 1.4 percent in the December quarter 2020, while capex for non-mining rose 4.9 percent in the December quarter 2020.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172566/
*Australia Private Capital Expenditure +3.0% On Quarter In Q4
Australia Private Capital Expenditure +3.0% On Quarter In Q4
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172565/
South Korea Interest Rate Decision On Tap For Thursday
The Bank of Korea will wrap up its monetary policy meeting on Thursday and then announce its decision on interest rates, highlighting a modest day for Asia-Pacific economic activity. The BoK is widely expected to keep its benchmark lending rate unchanged at the record low 0.50 percent.
Australia will see Q4 figures for private capital expenditure, with forecasts suggesting a flat quarterly reading following the 3.0 percent decline in the three months prior.
Japan will release final December data for its leading and coincident economic indexes. The leading index is tipped to see a score of 94.9, down from 96.1 in November. The coincident is pegged at 87.8, down from 89.0 a month prior.
Hong Kong will see January figures for imports, exports and trade balance. In December, imports were up 14.1 percent on year and exports gained an annual 11.7 percent for a trade deficit of HKD45.7 billion.
Thailand will provide January numbers for industrial production, current account and retail sales. Industrial production is tipped to see a decline of 5.3 percent on year following the 2.44 percent annual drop in December. The current account deficit in December was $0.7 billion, while retail sales skidded an annual 2.7 percent.
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source http://www.mt5.com/forex_news/quickview/2172564/
S&P 500 Rally May Lift Hang Seng, ASX 200 on Dovish Fed, 3rd US Vaccine
Asia-Pacific stocks are poised for a rebound after Wall Street stocks ended higher on Wednesday. Fed Chair Jerome Powell’s dovish comments, Johnson & Johnson’s Covid-19 vaccine lifted investor conf... Via DailyFX - Market News https://ift.tt/32vveVH
Dollar Turns Weak Against Most Of Its Peers
The U.S. dollar recovered after early weakness on Wednesday but started losing ground past noon, weighed down by remarks by the Federal Reserve Chairman Jerome Powell that interest rates will remain at near-zero levels for the foreseeable future.
Powell testified before House Financial Services Committee today, with his prepared remarks mirroring those he delivered before the Senate Banking Committee on Tuesday.
The Fed chief also continued to downplay the risks of inflation, which have recently spooked investors and driven treasury yields to their highest levels since the early days of the coronavirus pandemic.
Meanwhile, data released by the Commerce Department showed new home sales spiked by 4.3% to an annual rate of 923,000 in January after soaring by 5.5% to a revised rate of 885,000 in December. Economists had expected new home sales to surge up by 1.5 percent to a rate of 855,000 from the 842,000 originally reported for the previous month.
The dollar index, which advanced to 90.43 from a low of 89.98, slid to 90.02 by late afternoon, losing about 0.16%.
Against the Euro, the dollar weakened to $1.2173, sliding 0.17% from previous close of $1.2152.
The Pound Sterling was stronger, fetching $1.4142 a unit, about 0.2% more than Tuesday's close of $1.4114.
The Yen weakened to 105.85 a dollar, from 105.25.
The Aussie firmed up against the greenback. The AUD-USD pair was quoting at 0.7972, giving the Aussie a gain of nearly 0.8%.
The Swiss franc weakened to 0.9065 a dollar, sliding by about 0.15%. The Loonie strengthened to 1.2507 a dollar, gaining nearly 0.7%, as crude oil prices rose sharply.
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source http://www.mt5.com/forex_news/quickview/2172563/
AUD/USD Gains on Reflation Trade While RBNZ News Dispatches AUD/NZD Lower
The Australian Dollar is pushing into fresh highs versus the Greenback, but RBNZ news is bolstering the New Zealand Dollar, with AUD/NZD moving sharply lower. Via DailyFX - Market News https://ift.tt/32vveVH
US Dollar Outlook: DXY Index Rejects 50-Day Moving Average
The US Dollar advanced early on during Wednesday’s trading session, but bears pushed back and sent the DXY Index recoiling lower after failed attempt to take out its 50-day moving average. Via DailyFX - Market News https://ift.tt/32vveVH
Treasuries Climb Off Worst Levels But Still Close Lower
After coming under pressure early in the session, treasuries regained some ground over the course of the trading day on Wednesday.
Bond prices climbed well off their worst levels of the day but still closed in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 1.389 percent.
The ten-year yield pulled back off the one-year intraday high of 1.435 percent hit in early trading but still finished the day at its highest closing level in a year.
The yield on the thirty-year bond also ended the session at its highest closing level since the early days of the coronavirus pandemic.
Treasuries climbed off their worst levels after Federal Reserve Chair Jerome Powell once again reiterated that the Fed is likely to maintain its ultra-easy monetary policy for the foreseeable future.
Powell testified before House Financial Services Committee, with his prepared remarks mirroring those he delivered before the Senate Banking Committee on Tuesday.
The lower close by treasuries came despite Powell's assurances and the Fed's seeming lack of concern about the outlook for inflation.
Data released by the Commerce Department showing a much bigger than expected jump in new home sales in the month of January may have reduced the appeal of bonds.
The Commerce Department said new home sales spiked by 4.3 percent to an annual rate of 923,000 in January after soaring by 5.5 percent to a revised rate of 885,000 in December.
Economists had expected new home sales to surge up by 1.5 percent to a rate of 855,000 from the 842,000 originally reported for the previous month.
The Treasury Department also revealed this month's auction of $61 billion worth of five-year notes attracted below average demand.
The five-year note auction drew a high yield of 0.621 percent and a bid-to-cover ratio of 2.24, while the ten previous five-year note auctions had an average bid-to-cover ratio of 2.46.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Looking ahead, the Treasury is due to announce the result of its auction of $62 billion worth of seven-year notes on Thursday.
A batch of economic day may also attract attention on Thursday, with traders likely to keep an eye on reports on initial jobless claims, durable goods orders and pending home sales.
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source http://www.mt5.com/forex_news/quickview/2172562/
Oil Futures Rise Sharply, Settle At 13-month High
Crude oil prices moved up sharply on Wednesday as concerns over the likely impact of last week's severe cold conditions on the refinery activity in Texas outweighed official data showing an increase in U.S. crude inventories.
The oil market also shrugged off a report saying that the Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, will likely consider increasing crude production by 500,000 barrels per day from April. The OPEC+ meeting is scheduled to take place next week.
West Texas Intermediate Crude oil futures for April ended up $1.55 or about 2.5% at $63.22 a barrel, the highest settlement since early January 2020.
Data released by U.S. Energy Information Administration (EIA) this morning showed U.S. crude stockpiles increased by 1.3 million barrels in the week ended February 19, beating expectations for a drop of nearly 5 million barrels.
The EIA data also said gasoline supply did not see much change last week, while distillate stockpiles dropped by about 5 million barrels in the week.
The American Petroleum Institute's report, released late Tuesday, said crude inventories rose by 1.026 million barrels last week, against estimates for a draw of 5.2 million barrels.
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source http://www.mt5.com/forex_news/quickview/2172561/
Gold Futures Settle Lower For 2nd Straight Day
Gold futures settled lower on Wednesday, edging down for a second straight day as equity markets gained and the dollar stayed above the flat line for much of the day's session, continuing to benefit from the Fed Chair's comments about monetary policy stance.
Higher U.S. Treasury bond yields continued to put pressure on gold prices.
The dollar index, which advanced to 90.43 by mid morning, later dropped to 90.20, up just marginally from previous close.
Gold futures for April ended down $8.00 or about 0.4% at $1,797.90 an ounce.
Silver futures for March ended higher by $0.171 or 0.6% at $27.859 an ounce, while Copper futures settled at $4.2945 per pound, gaining $0.1160 or 2.8%.
Recent worries about higher interest rates and inflation eased somewhat after Powell reiterated interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until "substantial further progress" has been made toward its goals of maximum employment and price stability.
The U.S. economy was "a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved," Powell said.
Powell reiterated that any rise in inflation will likely be transitory and is unlikely to have a persistent effect on the economy.
Meanwhile, data released by the Commerce Department today showed new home sales spiked by 4.3% to an annual rate of 923,000 in January after soaring by 5.5% to a revised rate of 885,000 in December.
Economists had expected new home sales to surge up by 1.5% to a rate of 855,000 from the 842,000 originally reported for the previous month.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172560/
Wednesday, 24 February 2021
*Hong Kong GDP Growth To Average 3.3% In 2022-2025
Hong Kong GDP Growth To Average 3.3% In 2022-2025
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172521/
*Hong Kong Govt To Introduce HK$120 Bln Counter-cyclical Measures
Hong Kong Govt To Introduce HK$120 Bln Counter-cyclical Measures
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source http://www.mt5.com/forex_news/quickview/2172522/
British Pound (GBP) Latest: GBP/USD Strength to Persist, Correction Possible First
GBP continues to strengthen all round and further gains look likely, although GBP/USD is now looking overbought so a correction is possible before its advance resumes. Via DailyFX - Market News https://ift.tt/32vveVH
Malaysia Consumer Prices Decline Slows In January
Malaysia's consumer prices declined at a softer pace in January, data from the Department of Statistics showed on Wednesday.
The consumer price index declined 0.2 percent year-on-year in January, following a 1.4 percent fall in December. Economists had expected a 0.8 percent fall.
The annual fall was largely driven by the decline in transportation cost, as prices fell 5.1 percent.
Prices for housing, water, electricity, gas and other fuels declined 0.7 percent yearly in January. Prices for clothing and footwear decreased 0.4 percent and those of restaurants and hotel fell 0.1 percent.
On a monthly basis, consumer prices rose 1.2 percent in January.
The core inflation was 0.7 percent in January.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172520/
*Hong Kong Budget: GDP To Grow 3.5-5.5% In 2021
Hong Kong Budget: GDP To Grow 3.5-5.5% In 2021
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172519/
European Economics Preview: Germany's Revised GDP Data Due
Revised quarterly national accounts from Germany and business sentiment from France are due on Wednesday, headlining a light day for the European economic news.
At 2.00 am ET, Destatis is slated to issue Germany's quarterly GDP data for the fourth quarter. According to preliminary estimate, GDP grew 0.1 percent sequentially.
In the meantime, January retail sales figures are due from Denmark. Sales had increased 1 percent in December.
At 2.45 am ET, France's Insee publishes monthly business survey results. The business confidence index is forecast to rise to 99 in February from 98 in January.
At 4.00 am ET, IHS Markit releases Austria's manufacturing Purchasing Managers' survey results for February.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172518/
*Malaysia Jan CPI -0.2% On Year Vs. -1.4% In December
Malaysia Jan CPI -0.2% On Year Vs. -1.4% In December
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172517/
US Dollar Price Outlook: Dovish Powell, Stimulus Vote to Weigh on USD
Dovish commentary from Federal Reserve Chairman Jerome Powell and the impending provision of additional fiscal support will probably keep USD on the backfoot against its counterparts. Via DailyFX - Market News https://ift.tt/32vveVH
Gold and Silver Price Forecast: Treasury Rates, Negative Yielding Debt Pressure Prices
Gold and silver prices are finding relief following a lull in rising Treasury yields. But, pressure still remains amid a decline in negative yielding debt. Via DailyFX - Market News https://ift.tt/32vveVH
New Zealand Holds Official Cash Rate At 0.25%
The Monetary Policy Committee of the Reserve Bank of New Zealand on Wednesday decided to keep its Official Cash Rate unchanged at the record low of 0.25 percent, in line with expectations.
It was the eighth straight meeting with no change after the RBNZ trimmed the OCR by 75 basis points to the current mark on March 16, 2020.
The Committee also will keep the Large Scale Asset Purchase (LSAP) Program of up to NZ$100 billion and the Funding for Lending Program (FLP) operation unchanged.
Global economic activity has increased, although this lift in activity has been uneven both between and within countries.
The initiation of global COVID-19 vaccination programs is positive for future health and economic activity. The Committee agreed, however, that there remains a significant period before widespread immunity is achieved. In the meantime, economic uncertainty will remain heightened as international border restrictions continue.
Economic activity in New Zealand picked up over recent months, in line with the easing of health-related social restrictions. Households and businesses also benefitted from significant fiscal and monetary policy support, bolstering their cash-flow and spending. International prices for New Zealand's exports also supported export incomes, although the New Zealand dollar exchange rate has offset some of this support.
Some temporary factors were currently supporting consumer price inflation and employment. These one-off factors include higher oil prices, supply disruptions due to trade constraints, the recent suite of supportive fiscal stimulus, and a spending catch-up following the easing of social restrictions.
The economic outlook ahead remains highly uncertain, determined in large part by any future health-related social restrictions. This ongoing uncertainty is expected to constrain business investment and household spending growth. The Committee agreed that inflation and employment would likely remain below its remit targets over the medium term in the absence of prolonged monetary stimulus.
The Committee agreed to maintain its current stimulatory monetary settings until it is confident that consumer price inflation will be sustained at the 2 percent per annum target midpoint, and that employment is at or above its maximum sustainable level. Meeting these requirements will necessitate considerable time and patience.
The Committee agreed that it remains prepared to provide additional monetary stimulus if necessary and noted that the operational work to enable the OCR to be taken negative if required is now completed.
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source http://www.mt5.com/forex_news/quickview/2172516/
Australia Q4 Wage Prices Advance 1.4% On Year
Wage prices in Australia climbed 1.4 percent on year in the fourth quarter of 2020, the Australian Bureau of Statistics said on Wednesday -beating forecasts for an increase of 1.1 percent after the 1.4 percent gain in the previous three months.
Individually, private sector wages rose 1.4 percent and public sector wages gained 1.6 percent.
On a seasonally adjusted quarterly basis, wages rose 0.6 percent - again beating forecasts for 0.3 percent and up from 0.1 percent in Q3.
Individually, wages for the private sector rose 0.7 percent and wages for the public sector rose 0.3 percent.
Professional, scientific and technical services recorded the highest quarterly rise of 1.2 percent, following a fall in June quarter 2020 and moderate growth in September quarter 2020. The main driver of this industry's wages growth was the unwinding of short-term wage reductions to previous wage levels, the bureau said.
Accommodation and food services, Financial and insurance services and health care and social assistance each recorded the lowest quarterly rise of 0.1 percent.
Education and training saw the highest annual rise of 2.4 percent, while accommodation and food services had the lowest annual rise of 0.3 percent.
Victoria and the Northern Territory had the highest quarterly rise of 0.7 percent. Victoria's wages growth was driven by the unwinding of wage reductions across a number of industries recorded in the June and September quarters 2020. Northern Territory growth was mainly driven by the public sector.
South Australia and Australian Capital Territory saw the lowest quarterly wage index rise of 0.2 percent. Lower public sector wage growth compared to December quarter 2019 was recorded for both states.
Queensland and the Northern Territory had the highest annual wage increase of 1.6 percent.
All states and territories recorded lower annual wage growth when compared to December quarter 2019.
Victoria recorded the lowest annual rise of 1.3 percent for the second consecutive quarter, with social distancing measures and business restrictions limiting annual wage growth for the state.
Also on Wednesday, the ABS said that the value of total construction work done in Australia was down a seasonally adjusted 0.9 percent on quarter in the fourth quarter of 2020, coming in at A$51.170 billion.
That missed expectations for an increase of 1.0 percent following the 1.8 percent contraction in the previous three months.
On a yearly basis, construction work was down 1.4 percent.
Building work was up 0.6 percent on quarter and down 2.2 percent on year at A$29.373 billion, while residential work was up 2.7 percent on quarter and down 0.7 percent on year at A$17.865 billion.
Non-residential work fell 2.4 percent on quarter and 4.5 percent on year to A$11.508 billion and engineering work slipped 2.8 percent on quarter and 0.3 percent on year to A$21.796 billion.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172515/
Australia Construction Work Slips 0.9% On Quarter In Q4
The value of total construction work done in Australia was down a seasonally adjusted 0.9 percent on quarter in the fourth quarter of 2020, the Australian Bureau of Statistics said on Wednesday - coming in at A$51.170 billion.
That missed expectations for an increase of 1.0 percent following the 1.8 percent contraction in the previous three months.
On a yearly basis, construction work was down 1.4 percent.
Building work was up 0.6 percent on quarter and down 2.2 percent on year at A$29.373 billion, while residential work was up 2.7 percent on quarter and down 0.7 percent on year at A$17.865 billion.
Non-residential work fell 2.4 percent on quarter and 4.5 percent on year to A$11.508 billion and engineering work slipped 2.8 percent on quarter and 0.3 percent on year to A$21.796 billion.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172514/
Australia Wage Prices Climb 1.4% On Year In Q4
Wage prices in Australia were up 1.4 percent on year in the fourth quarter of 2020, the Australian Bureau of Statistics said on Wednesday -exceeding expectations for an increase of 1.1 percent after the 1.4 percent gain in the previous three months.
Individually, private sector wages rose 1.4 percent and public sector wages gained 1.6 percent.
On a seasonally adjusted quarterly basis, wages rose 0.6 percent - again beating forecasts for 0.3 percent and up from 0.1 percent in Q3.
Individually, wages for the private sector rose 0.7 percent and wages for the public sector rose 0.3 percent.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172513/
*Australia Construction Work Done -0.9% On Quarter In Q4
Australia Construction Work Done -0.9% On Quarter In Q4
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172512/
*Australia Wage Price Index +0.6% On Quarter, +1.4% On Year In Q4
Australia Wage Price Index +0.6% On Quarter, +1.4% On Year In Q4
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172511/
New Zealand Dollar Forecast: NZD/USD Rises After RBNZ Holds Rates Citing Strong Economy
The New Zealand Dollar moved higher following the RBNZ's decision to hold interest rates at 0.25%, as expected. RBNZ Governor Adrian Orr is slated to speak shortly, which could further dictate NZD ... Via DailyFX - Market News https://ift.tt/32vveVH
New Zealand Interest Rate Decision Due On Wednesday
The Reserve Bank of New Zealand will wrap up its monetary policy meeting on Wednesday and then announce its decision on interest rates, highlighting a modest day for Asia-Pacific economic activity. The RBNZ is widely expected to keep its Official Cash Rate unchanged at 0.25 percent.
Australia will release Q4 figures for wage prices, with forecasts suggesting an increase of 0.3 percent on quarter and 1.1 percent on year following the 0.1 percent quarterly increase and the 1.4 percent yearly gain in the three months prior. Construction work done is expected to rise 1.0 percent on quarter after sinking 2.6 percent in Q3.
Taiwan will provide January figures for export orders, retail sales and industrial production. Export orders are expected to surge 44.5 percent on year after jumping 38.3 percent in December. Retail sales were up 1.39 percent on year in December and industrial output rose an annual 9.9 percent.
Hong Kong will see final Q4 numbers for gross domestic product, with forecasts suggesting an increase of 0.2 percent on quarter and a decline of 3.0 percent on year. That follows the 2.7 percent quarterly increase and the 3.6 percent yearly decline in Q3.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172510/
Dollar Gains Against Other Major Currencies
The U.S. dollar firmed up against most of its peers on Tuesday, recovering from recent losses.
The greenback moved higher in the Asian session, but faltered later in the morning after the Federal Reserve Chairman Jerome Powell's testimony before the Senate Banking Committee. However, it edged higher subsequently, and was up above the flat line around late afternoon.
Powell told the members that the bank is likely to maintain ultra-easy monetary policy for the foreseeable future.
Powell's prepared remarks today largely mirrored recent assessments, indicating interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until "substantial further progress" has been made toward its goals of maximum employment and price stability.
"The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved," Powell said.
The Fed chief said annual inflation remains below the central bank's 2% target and reiterated monetary policy is likely to remain unchanged until inflation is on track to moderately exceed 2% for "some time."
Powell stressed that the Fed remains committed to using its full range of tools to support the economy and to help ensure the recovery will be as robust as possible.
The dollar index rose to 90.26 before falling to around 90.00, reacting to Powell's comments that the bank will likely maintain ultra-easy monetary policy for the foreseeable future. A little while ago, the index was at 90.17, up 0.18% from previous close.
Against the Euro, the dollar firmed up to $1.2146, gaining 0.11%.
The Pound Sterling was stronger against the dollar, fetching $1.4112 a unit, compared with $1.4065 on Monday.
The Yen weakened to 105.26 a dollar, sliding from 105.08.
Against the Aussie, the dollar gained marginally with the AUD-USD pair trading at $0.7911.
The Swiss franc weakened by over 1% to 0.9055 a dollar.
The Loonie strengthened against the dollar, firming up to C$1.2593 from C$1.2615.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172509/
South Korea Business Conditions Slip In February - BoK
Business conditions in South Korea deteriorated slightly in February, the Bank of Korea said on Wednesday with a Business Survey Index score of 82 - down from 85 in January.
The outlook for the following month rose by 4 points to 85, the bank said. Seasonally adjusted, the index score and outlook both came in at 83.
In the non-manufacturing sector, the BSI on business conditions for February 2021 was 72, up 2 points from the previous month, and that for the outlook for the following month also rose by 3 points to 73.
The Economic Sentiment Index (ESI)-a composite of the BSI and the CSI (Consumer Survey Index) - for February was 96.6, up 3.5 points from January.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172508/
USD/CAD Downtrend Resumes as Powell Calms Stock Market, Nikkei 225 at Risk
The Canadian Dollar extended gains as Fed Chair Jerome Powell quelled market volatility. Japan’s Nikkei 225 may gap lower, with NZD/USD eying the RBNZ during the APAC session. Via DailyFX - Market News https://ift.tt/32vveVH
Treasuries Close Roughly Flat After Early Volatility
After seeing considerable volatility early in the session on Tuesday, treasuries turned in a lackluster performance for the remainder of the day.
Bond prices spent the afternoon lingering near the unchanged line before closing roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 1.362 percent.
The roughly flat close came after the ten-year yield reached a one-year intraday high of 1.389 percent in early trading.
The volatility seen early in the day came as traders kept an eye on Federal Reserve Chair Jerome Powell's testimony before the Senate Banking Committee.
In a widely anticipated move, Powell told members of committee the central bank is likely to maintain ultra-easy monetary policy for the foreseeable future.
Powell's prepared remarks largely mirrored recent assessments, indicating interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until "substantial further progress" has been made toward its goals of maximum employment and price stability.
"The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved," Powell said.
With regard to inflation, Powell acknowledged that consumer prices have partially rebounded following the steep drop last spring but noted prices for sectors that have been most adversely affected by the pandemic remain "particularly soft."
The Fed chief said annual inflation remains below the central bank's 2 percent target and reiterated monetary policy is likely to remain unchanged until inflation is on track to moderately exceed 2 percent for "some time."
Powell stressed that the Fed remains committed to using its full range of tools to support the economy and to help ensure the recovery will be as robust as possible.
On the U.S. economic front, the Conference Board released a report showing consumer confidence has improved more than expected in the month of February.
The Conference Board said its consumer confidence index rose to 91.3 in February from a downwardly revised 88.9 in January.
Economists had expected the consumer confidence index to inch up to 90.0 from the 89.3 originally reported for the previous month.
Meanwhile, traders largely shrugged off the results of the Treasury Department's auction of $60 billion worth of two-year notes, which attracted below average demand.
The two-year note auction drew a high yield of 0.119 percent and a bid-to-cover ratio of 2.44, while the ten previous two-year note auctions had an average bid-to-cover ratio of 2.60.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Looking ahead, the Treasury is due to announce the results of its auction of $61 billion worth of five-year notes on Wednesday.
Powell's second day of testimony on Capitol Hill may also attract some attention on Wednesday along with a report on new home sales in the month of January.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172507/
Oil Futures Settle Slightly Lower
Crude oil prices ended slightly lower on Tuesday, retreating after scoring a big gain in the previous session.
Traders were weighing the supply position amid reports shale oil producers in the southern United States could take at least a couple of weeks to restart the more than 2 million barrels per day of crude output that shut down because of a deep freeze.
The oil market is also looking ahead to the upcoming meeting of the Organization of the Petroleum Exporting Countries and their allies.
West Texas Intermediate Crude oil futures for April ended down $0.03 at $61.67 a barrel, coming off the session's high of $63.00 a barrel.
Goldman Sachs says in its report that oil consumption will get back to pre-virus levels by late July, while output from major producers is likely to remain "highly inelastic" to the rising prices.
Morgan Stanley expects Brent crude prices to climb to $70 per barrel in the third quarter on "signs of a much improved market" including prospects of a pick-up in demand.
The weekly crude inventory data from the American Petroleum Institute (API) and Energy Information Administration (EIA) are due later today, and tomorrow morning, respectively.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172506/
Gold Futures Settle Slightly Lower
Gold prices edged lower on Tuesday as the dollar firmed up against some of its peers, rebounding from recent losses.
The market was also reacting to the Federal Reserve Chairman Jerome Powell's testimony before the Senate Banking Committee. Powell told the members that the bank is likely to maintain ultra-easy monetary policy for the foreseeable future.
The dollar index rallied to 90.26, recovering from a low of 89.94, before easing to 90.10, netting a gain of 0.1%.
Gold futures for April ended up $2.50 or about 0.1% at $1,805.90 an ounce.
Silver futures for March ended lower by $0.397 at $27.688 an ounce, while Copper futures for March settled at $4.1785 per pound, gaining $0.0375 for the session.
Powell's prepared remarks today largely mirrored recent assessments, indicating interest rates will remain at near-zero levels and the Fed will continue its asset purchases at the current rate until "substantial further progress" has been made toward its goals of maximum employment and price stability.
"The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved," Powell said.
The Fed chief said annual inflation remains below the central bank's 2% target and reiterated monetary policy is likely to remain unchanged until inflation is on track to moderately exceed 2% for "some time."
Powell stressed that the Fed remains committed to using its full range of tools to support the economy and to help ensure the recovery will be as robust as possible.
Meanwhile, a report released by the Conference Board today showed consumer confidence in the U.S. has improved more than expected in the month of February. The report said the CB's consumer confidence index rose to 91.3 in February from a downwardly revised 88.9 in January. Economists had expected the consumer confidence index to inch up to 90.0 from the 89.3 originally reported for the previous month.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172505/
Tuesday, 23 February 2021
*UK 3-months To Dec Jobless Rate At 5.1%, Consensus 5.1%
UK 3-months To Dec Jobless Rate At 5.1%, Consensus 5.1%
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172442/
Pound Retreats Ahead Of UK Unemployment Data
At 2.00 am ET Tuesday, the Office for National Statistics releases UK labor market data for December. The jobless rate is forecast to rise to 5.1 percent in three months to December from 5 percent in three months to November.
Ahead of the data, the pound retreated from its early highs against its major rivals. The pound was worth 1.4061 against the greenback, 147.77 against the yen, 1.2598 against the franc and 0.8653 against the euro as of 1:55 am ET.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172441/
Australia's Exports Decline In January
Australia's exports declined in January largely due to a fall in iron ore shipments, preliminary data from the Australian Bureau of Statistics showed on Tuesday.
Exports fell 9 percent on month in January. Shipment of metalliferous ores dropped 10 percent and that of meat declined 39 percent. At the same time, coal exports were down 8 percent.
Imports decreased 10 percent from the previous month. Data showed that road vehicle imports slid 23 percent, the first decline since May. Imports of general industrial machinery were down 16 percent and that of miscellaneous manufactured articles decreased 13 percent.
On a yearly basis, exports grew 13 percent, while imports fell 7 percent in January.
The trade surplus decreased to A$8.75 billion in January from A$9.17 billion in the previous month.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172440/
*Australia Jan Imports Down 10% M-o-M
Australia Jan Imports Down 10% M-o-M
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172439/
*Australia Jan Exports Fall 9% On Month
Australia Jan Exports Fall 9% On Month
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172438/
European Economics Preview: UK Labor Market Data Due
The labor market statistics from the UK and final consumer prices from euro area are due on Tuesday, headlining a light day for the European economic news.
At 2.00 am ET, the Office for National Statistics releases UK labor market data for December. The jobless rate is forecast to rise to 5.1 percent in three months to December from 5 percent in three months to November.
At 3.00 am ET, producer prices from the Czech Republic and consumer prices from Austria are due. Economists expect Czech producer prices to fall 0.6 percent annually in January.
At 4.00 am ET, Italy's Istat releases industrial production and new orders data for December.
In the meantime, unemployment data is due from Poland. The jobless rate is seen at 6.5 percent in January versus 6.2 percent in December.
At 5.00 am ET, Eurostat publishes euro area final consumer prices for January. Inflation is expected to match the flash estimate of 0.9 percent.
At 6.00 am ET, the Confederation of British Industry publishes Distributive Trades survey results for February. The retail sales balance is forecast to advance to -38 percent from -50 percent in January.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172437/
FTSE 100, FTSE 250 Outlook Improves After UK Unemployment Data and Roadmap
London-listed shares are stabilizing and could move higher after news that the UK unemployment claimant count fell by 20,000 in January rather than rising as analysts had expected. Via DailyFX - Market News https://ift.tt/32vveVH
*Singapore Jan Core CPI -0.2% On Year Vs. -0.3% In December
Singapore Jan Core CPI -0.2% On Year Vs. -0.3% In December
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172436/
*Singapore Jan CPI +0.2% On Year Vs. 0% In December
Singapore Jan CPI +0.2% On Year Vs. 0% In December
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172435/
British Pound Forecast: Reopening Plan Capping EUR/GBP, Buoying GBP/USD
The British Pound may continue to outperform the Euro and US Dollar on the back of Prime Minister Boris Johnson’s reopening plan and the marked divergence in vaccination rates between the three reg... Via DailyFX - Market News https://ift.tt/32vveVH
US Dollar Forecast: Gaining Ground as ASEAN Weaken, Eyes on Fed Chair Powell
The US Dollar gained against most ASEAN currencies this past week, such as the Indonesian Rupiah and Philippine Peso. Will this continue? Eyes are on Fed Chair Jerome Powell. Via DailyFX - Market News https://ift.tt/32vveVH
Copper, Crude Oil Prices Surge. Eyes on Fed Chair Jerome Powell for Next Moves
Copper and crude oil prices are attempting to extend aggressive gains alongside global growth bets. Will Fed Chair Jerome Powell derail their trajectories in the coming days? Via DailyFX - Market News https://ift.tt/32vveVH
New Zealand Q4 Retail Sales Volume Climbs 4.8% On Year
The volume of retail sales in New Zealand jumped 4.8 percent on year in the fourth quarter of 2020, Statistics New Zealand said on Tuesday - down from 8.3 percent in the three months prior.
The total value of retail sales was up 4.9 percent (NZ$1.3 billion).
the main movements by industry were: motor vehicle and parts retailing, up 12 percent (NZ$412 million); hardware, building, and garden supplies, up 16 percent (NZ$388 million); electrical and electronic goods retailing, up 19 percent (NZ$214 million); and supermarket and grocery stores, up 3.3 percent (NZ$187 million).
Fuel retailing had the largest fall, down 10 percent (NZ$241 million), followed by accommodation, down 18 percent (NZ$215 million).
Eleven of the 15 industries had higher sales volumes in the December 2020 quarter compared with the December 2019 quarter.
By industry, the main movements were: electrical and electronic goods retailing, up 21 percent; hardware, building, and garden supplies, up 15 percent; motor vehicle and parts retailing, up 9.3 percent; department stores, up 8.5 percent; and non-store and commission-based retailing, up 17 percent.
Accommodation had the largest fall, down 20 percent, followed by pharmaceutical and other store-based retailing, down 8.0 percent.
By region, the Auckland region had the largest increase, up 5.0 percent (NZ$507 million), followed by Waikato, up 8.6 percent (NZ$210 million). These increases were followed by Canterbury, up 4.8 percent (NZ$162 million), Wellington up 5.7 percent (NZ$147 million), and Bay of Plenty, up 7.1 percent (NZ$122 million).
The sales value for the Otago region was down 7.5 percent (NZ$111 million), followed by West Coast, down 14 percent (NZ$26 million).
On a quarterly basis, sales were down 2.7 percent after skyrocketing 28.0 percent in the previous three months.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172434/
Dow Jones Steady amid Tech Rout, Will ASX 200, Hang Seng Follow?
A strong selloff in the technology sector dragged the Nasdaq Composite 2.46% lower, while the Dow Jones closed marginally higher as energy and material sectors gained. APAC stocks may embrace a sou... Via DailyFX - Market News https://ift.tt/32vveVH
New Zealand Retail Sales Volume Rises 4.8% On Year In Q4
The volume of retail sales in New Zealand was up 4.8 percent on year in the fourth quarter of 2020, Statistics New Zealand said on Tuesday - slowing from 8.3 percent in the three months prior.
The total value of retail sales was up 4.9 percent (NZ$1.3 billion).
the main movements by industry were: motor vehicle and parts retailing, up 12 percent (NZ$412 million); hardware, building, and garden supplies, up 16 percent (NZ$388 million); electrical and electronic goods retailing, up 19 percent (NZ$214 million); and supermarket and grocery stores, up 3.3 percent (NZ$187 million).
On a quarterly basis, sales were down 2.7 percent after skyrocketing 28.0 percent in the previous three months.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172433/
South Korea Consumer Confidence Index Rises In January - BoK
Consumer confidence in South Korea improved in January, the latest survey from the Bank of Korea showed on Tuesday with a sentiment index score of 97.4 - up from 95.4 in December.
Consumer sentiment regarding current living standards was one point higher than in January at 87, and that concerning the future outlook for living standards was also one point higher than in the previous month at 94.
Consumer sentiment related to future household income was unchanged at 96, and that concerning future household spending was two points higher at 104. Consumer sentiment concerning current domestic economic conditions was seven points higher at 63, and that concerning future domestic economic conditions was one point higher at 90.
The expected inflation rate for the following year was 2.0 percent.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172432/
*New Zealand Retail Sales -2.7% On Quarter, +4.8% On Year In Q4
New Zealand Retail Sales -2.7% On Quarter, +4.8% On Year In Q4
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172431/
Dollar Fails To Hold Early Gains, Turns Weak For 3rd Straight Day
The U.S. dollar turned weak against most of its rivals on Monday despite displaying some strength in the Asian session earlier in the day.
Dollar advanced earlier in the day as treasury yields rose amid hopes the accelerated vaccine rollouts and aggressive fiscal stimulus will spur a faster economic revival and stoke inflation.
On the stimulus front, U.S. Democrats are looking to swiftly pass the Covid-19 relief bill. The U.S. House of Representatives is expected to vote on President Joe Biden's proposed package by the end of the week.
Meanwhile, the Federal Reserve Chairman Jerome Powell is scheduled to testify before the Senate Banking Committee on Tuesday and the House Financial Services panel the following day.
In U.S. economic release today, the Conference Board said its leading economic index climbed by 0.5% in January after rising by an upwardly revised 0.4% in December. Economists had expected the leading economic index to rise by 0.3%, matching the increase originally reported for the previous month.
The dollar index drifted down to a low of 90.00 a little past noon, and despite regaining some lost ground subsequently, was still languishing well below its previous close. At 90.13, the index was down by over 0.25%.
Against the Euro, the dollar was down more than 0.4% with the Euro fetching $1.2168 a unit, compared to $1.2120 on Friday. The dollar dropped to as low as $1.2171 before paring some losses.
The Pound Sterling firmed up, fetching $1.4087 a unit about an hour past noon, but retreated to $1.4062 later on, but was still firmly up in positive territory, gaining about 0.36%.
U.K. Prime Minister Boris Johnson today tabled a four-step cautious roadmap in Parliament for the country to be eased out of its strict stay-at-home lockdown, with a tentative June 21 timeline for most limits on social contact to be lifted if the coronavirus infection rates remain in check.
The Yen firmed up to 105.08 a dollar, up more than 0.3% from Friday's close of 105.43.
The AUD-USD pair was trading at 0.7914 a little while ago, giving the Aussie a gain of nearly 0.6%.
The Swiss franc was little changed at 0.8965 a dollar, while the Loonie was down slightly at C$1.2620, after recovering well from the session's low thanks to a surge in crude oil prices.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172430/
Singapore Inflation Data Due On Tuesday
Singapore will on Tuesday release January numbers for consumer prices, highlighting a modest day for Asia-Pacific economic activity.
In December, overall inflation was up 0.4 percent on month and flat on year, while core CPI fell an annual 0.3 percent.
New Zealand will provide Q4 figures for retail sales; in the previous three months, sales were up 28.0 percent on quarter and 8.3 percent on year.
China will see January numbers for its house price index; in December, prices were up 3.8 percent on year.
Finally, the markets in Japan are closed on Tuesday for the emperor's birthday and will re-open on Wednesday.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172429/
Treasuries See Further Downside Ahead Of Powell Testimony
Treasuries showed a lack of direction in morning trading on Monday before drifting lower over the course of the afternoon.
Bond prices slid more firmly into negative territory after spending the morning bouncing back and forth across the unchanged line. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.5 basis points to 1.370 percent.
The ten-year yield closed higher for the sixth time in the past seven sessions, reaching its highest closing level in a year.
The continued weakness among treasuries came as optimism about further stimulus and accelerated coronavirus vaccine rollouts reduced the appeal of safe havens such as bonds.
Democrats continue to move forward with President Joe Biden's proposed $1.9 trillion relief package, with the House expected to vote on the legislation later this week.
The Democrat-controlled House is expected to approve the bill largely along party lines, but the package could face additional hurdles in the Senate.
Traders were also looking ahead to two days of Congressional testimony by Federal Reserve Chair Jerome Powell.
Powell is likely to reiterate that the Fed plans to maintain easy monetary policy for the foreseeable future as the economy continues to recover from the coronavirus pandemic.
The Fed has recently signaled that it is not concerned about inflation, suggesting that inflation should exceed its 2 percent target for some time before the central bank considers raising interest rates.
In U.S. economic news, the Conference Board released a report showing a bigger than expected increase by its index of leading U.S. economic indicators in the month of January.
The Conference Board said its leading economic index climbed by 0.5 percent in January after rising by an upwardly revised 0.4 percent in December.
Economists had expected the leading economic index to rise by 0.3 percent, matching the increase originally reported for the previous month.
Trading on Tuesday may be driven by reaction to Powell's testimony, with the Fed chief due to appear before a virtual Senate Banking Committee hearing.
Bond traders may also keep an eye on the results of the Treasury Department's auction of $60 billion worth of two-year notes.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172428/
AUD/USD, AUD/NZD Aim Higher as Treasury Yields Climb on Reflation Theme
APAC equity prices may face some pressure from rising government bond yields as the reflation trade continues to gain steam. Meanwhile, AUD/USD and AUD/NZD appear set to move higher. Via DailyFX - Market News https://ift.tt/32vveVH
Oil Futures Settle Sharply Higher On Supply Concerns
Crude oil prices rose sharply on Monday amid concerns about supply due to slowdown in production returns after last week's severe cold snap.
The cold weather in Texas and the Plans states reportedly forced the shutdown of approximately 4 million barrels per day of crude production along with 21 billion cubic feet of natural gas output.
West Texas Intermediate Crude oil futures contracts for March expired at $61.49 a barrel today, gaining $2.25 or about 3.8% for the session.
April WTI futures ended up $2.44 or about 4.1% at $61.70 a barrel.
Brent crude futures were up $2.16 or nearly 3.5% at $64.30 a barrel a little while ago.
According to reports, it will take some time for U.S. crude output to return to normal levels due to the damage suffered by various infrastructure items in refinery facilities due to the extreme cold weather last week.
Meanwhile, analysts at Goldman Sachs have raised their Brent oil price forecast for the second quarter by $10 to $70 and to $75 in the following three months.
Goldman sees the rally accelerating as demand outpaces supply from OPEC+, shale and Iran. The investment banking giant sees oil as an inflation hedge and doesn't expect Iran's export to recover anytime soon.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172427/
Gold Futures Settle Sharply Higher As Dollar Drifts Lower
Gold prices moved up sharply on Monday, lifting the most active gold futures contracts to a firm close, as bond yields dropped a bit after hitting a one-year high.
The dollar's weakness further aided gold's uptick. The greenback eased against rivals as traders sought currencies with close ties to the global commodities trade due to an improving economic outlook. The dollar index dropped to 90.00, losing about 0.4% from previous closing level.
Gold futures for April ended up $31.00 or about 1.7% at $1,808.40 an ounce.
Silver futures for March ended higher by $0.831 at $28.085 an ounce, while Copper futures for March settled at $4.1410 per pound, gaining $0.0670.
The Conference Board released a report today showing a bigger than expected increase by its index of leading U.S. economic indicators in the month of January.
The Conference Board said its leading economic index climbed by 0.5% in January after rising by an upwardly revised 0.4% in December. Economists had expected the leading economic index to rise by 0.3%, matching the increase originally reported for the previous month.
The U.K. Prime Minister Boris Johnson today tabled a four-step cautious roadmap in Parliament for the country to be eased out of its strict stay-at-home lockdown, with a tentative June 21 timeline for most limits on social contact to be lifted if the coronavirus infection rates remain under check.
On the stimulus front, U.S. Democrats are looking to swiftly pass the Covid-19 relief bill. The U.S. House of Representatives is expected to vote on President Joe Biden's proposed package by the end of the week.
Meanwhile, the Federal Reserve Chairman Jerome Powell is scheduled to testify before the Senate Banking Committee on Tuesday and the House Financial Services panel the following day.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172426/
Monday, 22 February 2021
Euro Mixed Ahead Of German Ifo Business Sentiment Index
At 4.00 am ET Monday, German ifo business confidence survey results are due. The business sentiment index is forecast to rise to 90.5 in February from 90.1 in the previous month.
The euro traded mixed against its major rivals before the data. While it retreated against the greenback and the pound, it was up against the franc and the yen.
The euro was worth 128.00 against the yen, 1.0908 against the franc, 0.8643 against the pound and 1.2100 against the greenback at 3:55 am ET.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172404/
*Hong Kong Jan CPI 1.9% On Year Vs. -0.7% In December
Hong Kong Jan CPI 1.9% On Year Vs. -0.7% In December
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172403/
U.S. Dollar Higher Amid Rising Treasury Yields
The U.S. dollar strengthened against its major counterparts in the Asian session on Monday, as Treasury yields climbed on hopes that accelerated vaccine rollouts and aggressive fiscal stimulus will spur a faster economic revival and stoke inflation.
The benchmark 10-year Treasury yields rose to 1.3940 percent, their highest since February 2020.
House Democrats on Friday unveiled $1.9 trillion COVID-19 relief bill, aiming for a vote in the chamber by the end of this week.
Federal Reserve Chairman Jerome Powell will deliver his semi-annual testimony on the economy before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.
Powell is likely to reiterate that the central bank will maintain an easy monetary policy to support the economy recovering from the pandemic.
The greenback advanced to a 4-day high of 105.77 versus the yen, from a low of 105.38 seen at 5 pm ET. On the upside, 108.00 is possibly seen as its next resistance level.
The greenback reached as high as 0.8996 versus the franc, setting a 4-day high. If the greenback rises further, 0.92 is likely seen as its next resistance level.
The greenback bounced off to 1.2105 versus the euro and 1.3981 versus the pound, from its early low of 1.2136 and near a 3-year low of 1.4052, respectively. Continuation of the greenback's uptrend is likely to see it challenging resistance around 1.20 versus the euro and 1.37 versus the pound.
Recovering from its previous near 3-year lows of 0.7338 versus the kiwi, 0.7908 versus the aussie and 1.2581 versus the loonie, the greenback rose to 0.7285, 0.7856 and 1.2641, respectively. The greenback is seen finding resistance around 0.70 versus the kiwi, 0.75 versus the aussie and 0.29 versus the loonie.
Looking ahead, German Ifo business sentiment index for February is due in the European session.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2172402/
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