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Friday, 30 June 2023
FTSE 100 DAX 40 and S&P 500 try to end month and quarter on a high
Japanese Yen is on the Slide as the Fed and Bank of Japan Return to their Corners
China/Hong Kong Indices Steady After PMI Data: Hang Seng Shanghai Composite Price Action
Asia Day Ahead: Economic Resilience Well-Received in US; Key Inflation Data Looms
Dollar Stays Firm Against Major Rivals On Strong Data
The U.S. dollar climbed higher on Thursday, extending gains from the previous session, as strong economic data and comments from Federal Reserve Chair Jerome Powell raised rate hike prospects.
Data from the Labor Department showed initial jobless claims fell to 239,000 in the week ended 24th, a decrease of 26,000 from the previous week's revised level of 265,000. Economists had expected jobless claims to rise to 270,000 from the 264,000 originally reported for the previous week.
A separate report released by the Commerce Department showed the U.S. economy grew by much more than previously estimated in the first quarter of 2023.
The Commerce Department said gross domestic product jumped by 2% in the first quarter compared to the previously estimated 1.3% increase. Economists had expected the pace of GDP growth to be unrevised.
Federal Reserve Chair Jerome Powell said on Thursday that the US central bank would deliver more interest rates hikes by the end of the year in its prolonged fight against high inflation.
"Inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go," Powell said in a speech at the Banco de Espana conference on financial stability in Madrid, Spain.
Powell had said at the ECB forum in Sintra, Portugal on Wednesday that there was "more restriction coming" and successive rate rises were not off the table.
The dollar index, which weakened to 102.78 in the European session, rallied after the release of jobless claims and GDP data, rising to 103.44. The index was last seen at 103.35, gaining nearly 0.5%.
Against the Euro, the dollar firmed to 1.0873 from 1.0914, and strengthened to 1.2615 against Pound Sterling, edging up from 1.2636.
Against the Japanese currency, the dollar is strong, fetching 144.82 yen a unit, nearly 0.25% more than the previous close of 144.49 yen.
The dollar is weak against the Aussie at 0.6617. The Swiss franc is weak at CHF 0.8996 against the dollar, while the Loonie is up slightly at C$ 1.3254 a dollar.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214363/
Gold Futures Settle Lower For 3rd Straight Day As Dollar Rises
Gold futures settled lower on Thursday as the dollar continued to climb higher amid rising bets the Federal Reserve will tighten policy and hike interest rates in the coming months.
Data showing a drop in U.S. jobless claims last week, and an upward revision in first-quarter GDP growth have raised the possibility of a rate hike in July.
The dollar index advanced to 103.44 before easing to 103.30, but remains in positive territory with a gain of nearly 0.4%.
Gold futures for August ended lower by $4.30 or about 0.2% at $1,917.90 an ounce, extending losses to a third straight session, and recording the lowest settlement since mid March.
Silver futures for September ended down $0.286 at $22.798 an ounce, while Copper futures for September settled at $3.6990 per pound, down $0.0435 from the previous close.
Federal Reserve Chair Jerome Powell said on Thursday that the US central bank would deliver more interest rates hikes by the end of the year in its prolonged fight against high inflation.
"Inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go," Powell said in a speech at the Banco de Espana conference on financial stability in Madrid, Spain.
Powell had said at the ECB forum in Sintra, Portugal on Wednesday that there was "more restriction coming" and successive rate rises were not off the table.
Data from the Labor Department showed initial jobless claims fell to 239,000 in the week ended 24th, a decrease of 26,000 from the previous week's revised level of 265,000. Economists had expected jobless claims to rise to 270,000 from the 264,000 originally reported for the previous week.
A separate report released by the Commerce Department showed the U.S. economy grew by much more than previously estimated in the first quarter of 2023.
The Commerce Department said gross domestic product jumped by 2% in the first quarter compared to the previously estimated 1.3% increase. Economists had expected the pace of GDP growth to be unrevised.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214360/
Thursday, 29 June 2023
Silver (XAG/USD) Price Forecast: Silver Selling Meets Support
Australian Dollar Fails to Firm on Strong Data as US Dollar Gains. Lower AUD/USD?
Crude Oil Conflicted by Tightening Rates and Dwindling Inventory. Where to for WTI?
Dollar Gains Against Major Counterparts As Rate Hike Prospects Rise
The U.S. dollar firmed against its major rivals on Wednesday, after Federal Reserve Chair Jerome Powell's speech at the European Central Bank Forum in Sintra.
Powell said he would not rule out two consecutive rate hikes at the central bank's upcoming meetings.
Saying that a 'strong majority' of policymakers favour two more rate hikes this year, Powell added, "If you look at the data over the last quarter, what you see is stronger than expected growth, a tighter than expected labor market and higher than expected inflation."
"That tells us that although policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough. We have only made a decision about the June meeting, but I wouldn't take moving at consecutive meetings off the table at all," the Fed chief added.
The dollar index surged to 103.15, before easing to 103.00, still staying up with a gain of nearly 0.5%.
Against the Euro, the dollar is up at 1.0912, firming from 1.0961. Against Pound Sterling, the dollar has strengthened to 1.2637 from 1.2751.
The dollar is stronger against the Japanese currency, fetching 144.52 yen a unit, compared with 144.07 yen on Tuesday.
The Aussie is weak with the AUD/USD trading at 0.6602. The dollar is firm against Swiss franc at CHF 0.8970, and against the Loonie, it is up at C$1.3260, gaining from C$1.3195.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214289/
Oil Futures Close Sharply Higher As Data Shows Huge Drop In Crude Stockpiles
Crude oil prices rose sharply on Wednesday as data showed a sharp drop in U.S. crude stockpiles in the week ended June 23rd.
The dollar's rise on upbeat economic data, and Fed Chair Jerome Powell's remarks about interest rates capped oil's gains.
Powell said during a panel discussion at the European Central Bank Forum on Central Banking in Sintra, Portugal, that he expects additional interest rate hikes in the months ahead and added that raising rates at consecutive meetings is not off the table.
West Texas Intermediate Crude oil futures for August ended higher by $1.86 or about 2.8% at $69.56 a barrel.
Brent crude futures were up $1.52 or 2.1% at $74.03 a barrel a little while ago.
Data released by the Energy Information Administration (EIA) this morning showed U.S. crude inventories dropped by 9.603 million barrels last week, more than 5 times the expected drop.
The EIA data also showed gasoline inventory increased by 0.603 million barrels last week, as against forecasts for a drop of 0.126 million barrels. Meanwhile, distillate stockpiles rose 0.124 million barrels last week.
New orders for key manufactured capital goods unexpectedly rose in May, sales of new single-family homes surged in the month and a measure of U.S. consumer confidence surged to a near 1-1/2 year high in June, separate reports showed on Tuesday - helping ease concerns about an impending recession.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214288/
Treasuries Move Back To The Upside Following Yesterday's Pullback
Treasuries climbed firmly into positive territory over the course of the trading day on Wednesday, largely offsetting the pullback seen in the previous session.
Bond prices gave back ground after an early advance but moved back to the upside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5.8 basis points to 3.710 percent.
The rebound by treasuries came as traders kept an eye on remarks by Federal Reserve Chair Jerome Powell during a panel discussion at the European Central Bank Forum on Central Banking in Sintra, Portugal.
Powell reiterated that he expects additional interest rate hikes in the months ahead and said raising rates at consecutive meetings is not off the table
The Fed Chief was joined by European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Japan Governor Kazuo Ueda.
While the Fed's forecasts suggest two more rate hikes before the end of the year, traders seemingly remain optimistic the central bank will not follow through.
CME Group's FedWatch Tool currently indicates an 81.8 percent chance of another quarter point rate hike next month but much lower chances of additional increases this year.
Trading on Thursday may be impacted by reaction to reports on weekly jobless claims and pending home sales as well as the final reading on first quarter GDP.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214287/
Wednesday, 28 June 2023
Australian Dollar Slides After CPI Data; How Much More Downside in AUD/USD?
Dollar Drifts Lower Against Major Rivals
Despite fairly strong economic data, the U.S. dollar shed ground against most of its major counterparts on Tuesday, while the Euro firmed, following comments from European Central Bank President Christine Lagarde.
Traders digested a slew of U.S. economic data. A report from the Commerce Department showed durable goods orders shot up by 1.7% in May after jumping by an upwardly revised 1.2% in April. Economists had expected durable goods orders to slump by 1% compared to the 1.1% advance that had been reported for the previous month.
A separate Commerce Department report said new home sales soared 12.2% to an annual rate of 763,000 in May after surging 3.5% to a revised rate of 680,000 in April. Economists had expected new home sales to slump 1.2% to an annual rate of 675,000 from the 683,000 originally reported for the previous month.
A report released by the Conference Board showed the consumer confidence index jumped to 109.7 in June from a revised 102.5 in May. Economists had expected the index to rise to 103.7 from the 102.3 originally reported for the previous month.
European Central Bank President Christine Lagarde said today that the central bank is committed to attain the 2% inflation target. Without any material change to the euro area outlook, the bank will continue to increase rates in July, Lagarde reiterated.
Lagarde stated that inflation in the Euro Area is persistently high and expected to remain so for an extended period, making it unlikely for the central bank to declare that peak rates have been reached in the near term.
Several central bank officials, including Federal Reserve Chair Jerome Powell, Bank of England governor Andrew Bailey and Bank of Japan Governor Kazuo Ueda are scheduled to speak at the policy panel before the European Central Bank Forum in Sintra on Wednesday.
The dollar index weakened to 103.32 around mid morning, and despite edging up to 102.48, remains weak, netting a loss of 0.21%.
Against the Euro, the dollar eased to 1.0962, about 0.5% down from previous close. The dollar is trading at 1.2750 against Pound Sterling, weakening from 1.2714.
Against the Japanese currency, the dollar is trading at 144.04 yen, weakening from 143.50 yen.
The dollar is weak against the Aussie at 0.6688, easing from 0.6676. Against Swiss franc, the dollar is weak, fetching CHF 0.8937 a unit, while against the Loonie, it climbed nearly 0.3% to C$1.3192 as oil prices fell sharply, and Canada's inflation slowed in May.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214218/
Asia Day Ahead: Upside Economic Surprises in US Calm Recession Nerves
Gold Price Leaks Lower as US Dollar Dithers Ahead of Powell. Lower XAU/USD?
Treasuries Give Back Ground Following Upbeat U.S. Economic Data
Treasuries moved to the downside during trading on Tuesday, giving back ground after moving higher over the two previous sessions.
Bond prices came under pressure in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.9 basis points to 3.768 percent.
The pullback by treasuries came as traders moved money out of safe havens like bonds and into riskier assets like stocks following the release of a batch of upbeat U.S. economic data.
The Commerce Department released a report showing an unexpected surge in new orders for U.S. manufactured durable goods in the month of May.
The report said durable goods orders shot up by 1.7 percent in May after jumping by an upwardly revised 1.2 percent in April.
Economists had expected durable goods orders to slump by 1.0 percent compared to the 1.1 percent advance that had been reported for the previous month.
Excluding a surge in orders for transportation equipment, durable goods orders climbed by 0.6 percent in May after falling by a revised 0.6 percent in April.
Ex-transportation orders were expected to edge down by 0.1 percent compared to the 0.2 percent dip that had been reported for the previous month.
A separate Commerce Department unexpectedly showed a sharp increase in new home sales in the U.S. in the month of May.
The report said new home sales soared 12.2 percent to an annual rate of 763,000 in May after surging 3.5 percent to a revised rate of 680,000 in April.
Economists had expected new home sales to slump 1.2 percent to an annual rate of 675,000 from the 683,000 originally reported for the previous month.
With the unexpected spike, new home sales reached their highest level since hitting a rate of 773,000 in February 2022.
Another report released by the Conference Board showed a significant improvement in U.S. consumer confidence in the month of June.
The Conference Board said its consumer confidence index jumped to 109.7 in June from a revised 102.5 in May. Economists had expected the index to rise to 103.7 from the 102.3 originally reported for the previous month.
Later in the week, the Commerce Department is due to release its report on personal income and spending in the month of May, which includes a reading on inflation said to be preferred by the Federal Reserve.
The consumer price inflation data could significantly impact opinions regarding whether the Fed will follow through on its forecast interest rate hikes.
Trading on Wednesday may be impacted by reaction to remarks by Fed Chair Jerome Powell, who is due to participate in a panel discussion at the European Central Bank Forum on Central Banking 2023 in Sintra, Portugal.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214216/
Gold Futures Settle Lower After Strong U.S. Economic Data
Gold futures settled lower on Tuesday, weighed down by strong U.S. economic data.
Investors also looked ahead to Federal Reserve Chair Jerome Powell's speech at the policy panel before the European Central Bank Forum in Sintra on Wednesday.
Data on U.S. personal income and spending for May, which includes a reading on inflation said to be preferred by the Fed, is due later this week.
A weak dollar helped limit gold's downside. The dollar index, which dropped to 102.32, recovered a bit to 102.48, but still remained in negative territory, losing about 0.2%.
Gold futures for August ended lower by $10.00 at $1,923.80 an ounce.
Silver futures for July ended up $0.134 at $22.960 an ounce, while Copper futures for July settled at $3.7795 per pound, down $0.0145 from the previous close.
Edward Moya, Senior Market Analyst says gold remains under pressure as US consumer still looks strong. "Today's economic data in the US painted a picture of a resilient economy that could be subject to further Fed tightening. The ECB also signaled there is no end in sight for their rate hiking cycle and that has also helped send Global Bond yields higher," he says. "It has been pretty ugly for gold since early May and if expectations grow for further Fed tightening, that could send gold tentatively below the $1900 level."
Data from the Commerce Department showed durable goods orders shot up by 1.7% in May after jumping by an upwardly revised 1.2% in April. Economists had expected durable goods orders to slump by 1% compared to the 1.1% advance that had been reported for the previous month.
A separate Commerce Department report said new home sales soared 12.2% to an annual rate of 763,000 in May after surging 3.5% to a revised rate of 680,000 in April.
Economists had expected new home sales to slump 1.2% to an annual rate of 675,000 from the 683,000 originally reported for the previous month.
With the unexpected spike, new home sales reached their highest level since hitting a rate of 773,000 in February 2022.
Another report released by the Conference Board showed the consumer confidence index jumped to 109.7 in June from a revised 102.5 in May. Economists had expected the index to rise to 103.7 from the 102.3 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/2214215/
Tuesday, 27 June 2023
Australian Dollar Boosted by Soft US Dollar and Rosy China Outlook. Higher AUD/USD?
Lacklustre start to the final week of June: Copper Nikkei 225 EUR/GBP
Dollar Drifts Lower Against Major Counterparts
The U.S. dollar traded weak against most of its major counterparts on Monday with traders assessing the policy outlook of global central banks, and closely following the political situation in Russia.
With the economic calendar for the day very light, traders looked ahead to crucial reports due later in the week.
In the coming days, traders are likely to keep a close eye on reports on durable goods orders, consumer confidence, new home sales and pending home sales.
The Commerce Department is also due to release its report on personal income and spending in the month of May, which includes a reading on inflation said to be preferred by the Federal Reserve.
The consumer price inflation data could significantly impact opinions regarding whether the Fed will follow through on its forecast interest rate hikes.
The Federal Reserve Bank of Dallas' general business activity index for manufacturing in Texas rose to -23.2 in June of 2023, the highest in three months.
The dollar index, which dropped to 102.61 in early New York session, edged up to 102.78, trimming its loss to around 0.12%.
Against the Euro, the dollar weakened to 1.0906 from 1.0895. The dollar is flat at 1.2713 against Pound Sterling, after having weakened to 1.2750 in the Asian session.
Against the Japanese currency, the dollar is weak, fetching 143.50 yen a unit, after settling at 143.73 yen on Friday.
The dollar is up marginally against the Aussie at 0.6673. Against Swiss franc, the dollar is down at CHF 0.8957. The Loonie is up at C$1.3158 a dollar, as oil prices climbed higher.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214152/
Oil Futures Settle Higher On Possible Supply Disruptions
Crude oil futures settled modestly higher on Monday with investors weiging global energy demand prospects and possible supply disruptions due to political instability in Russia.
West Texas Intermediate Crude oil futures for August ended higher by $0.21 or about 0.3% at $69.37 a barrel.
Brent crude futures were up $0.49 or 0.66% at $74.50 a barrel a little while ago.
After an aborted mutiny by Wagner mercenary forces led by Yevgeny Prigozhin, analysts said the geopolitical risk and internal instability in Russia has increased.
U.S. Secretary of State Antony Blinken said the events exposed "real cracks" in Putin's rule.
A report from OPEC today said global oil demand will rise to 110 million barrels per day in about 20 years, pushing the world's energy demand up by 23%.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214151/
Gold Futures Settle Modestly Higher As Dollar Turns Weak
Gold futures settled modestly higher on Monday as the dollar drifted down against other major currencies.
Gold gained on safe-haven appeal after weak PMI data from Europe and the U.S. last week raised concerns about a deep downturn in major economies.
The dollar index, which dropped to 102.61 in early New York session, edged up slightly to 102.70, but still remains in negative territory, losing about 0.2% from Friday's closing level.
Gold futures for August ended higher by $4.20 at $1,933.80 an ounce.
Silver futures for July ended up $0.472 at $22.826 an ounce, while Copper futures for July settled at $3.7840 per pound, down $0.0195 from the previous close.
Geopolitical tensions contributed as well to the bullion's modest uptick. A short-lived mutiny in Russia by the Wagner paramilitary group has revived concerns over nuclear arsenal security.
U.S. Secretary of State Antony Blinken said the events exposed "real cracks" in Putin's rule.
"It's not a good thing to see that a nuclear power like Russia can go into a phase of political instability," Eu foreign policy chief Josep Borrell told reporters in Luxembourg, adding this was the moment for the EU to continue supporting Ukraine more than ever.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214150/
Monday, 26 June 2023
What Chinas Lackluster Stimulus Implies for Copper and the Aussie Dollar
Japanese Yen Forecast: USD/JPY Pauses after Explosive Breakout. What Now?
FTSE 100 DAX and S&P 500 try to find support
EUR/USD Price Forecast: EUR/USD Looks to ECB Forum for Guidance
Japanese Yen on Intervention Watch: USD/JPY EUR/JPY GBP/JPY Price Setups
British Pound After BoE Rate Hike: GBP/USD EUR/GBP GBP/AUD Price Action
Asia Day Ahead: Subdued Start to the Week Amid Light Calendar in the Region
Sunday, 25 June 2023
Markets Week Ahead: Nasdaq Gold USD Powell US PCE Germany Ifo China PMI Australia Retail Sales
Saturday, 24 June 2023
USD/JPY Price Forecast: More Misery to Come for Japanese Yen?
Euro Outlook: EUR/USD Veers Off Bullish Path after Rejection at 1.1000. Now What?
Dollar Rises Against Major Counterparts On Safe Haven Appeal
The U.S. dollar firmed against its major counterparts on Friday amid concerns about inflation and on Fed Chair Jerome Powell's congressional testimony that signaled more interest rate hikes from the U.S. central bank.
Weak business activity data from several countries curbed risk sentiment and prompted investors to seek the safe-haven dollar.
The dollar index climbed to 103.17 in the Asian session, and despite easing to 102.88, remains firm with a gain of nearly 0.5%.
Against the Euro, the dollar strengthened to 1.0897, and against Pound Sterling, it firmed to 1.2717, gaining about 0.25%.
The dollar has gained nearly 0.5% against the Japanese currency, fetching 143.75 yen a unit. Against the Aussie, the dollar has strengthened to 0.6678 from 0.6756.
The dollar is strong against Swiss franc at CHF 0.8969, and against the Loonie, has strengthened to C$ 1.3187 from C$ 1.3151.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214111/
Gold Futures Settle Higher On Safe-haven Buying
Gold futures settled higher on Friday, rebounding from recent losses, despite the latest round of interest rate hikes by some central banks, and hawkish comments from several Fed officials.
Gold prices edged higher on safe-haven appeal as riskier assets such as stocks drifted lower amid worries about inflation and economic slowdown.
The dollar surged higher after U.S. Fed Chair Jerome Powell reiterated plans to continue raising interest rates during his second day of testimony on Capitol Hill.
The dollar index, which surged to 103.17 in the Asian session, eased to 102.90 later on, but still remained up in positive territory with a gain of over 0.5%.
Gold futures for August ended higher by $5.90 at $1,929.60 an ounce.
Silver futures for July ended down $0.113 at $22.354 an ounce, while Copper futures for July settled at $3.8035 per pound, down $0.0865 from the previous close.
After tumbling to the $1920 level, gold is starting to attract safe-haven flows as the stock market selloff intensifies.
"Gold got an added boost after the Fed's Bostic said he favors no more rate hikes for the rest of the year. The rebound however lost some steam after the latest PMI data isn't showing enough weakness in the service sector to warrant a pause," says Edward Moya, Senior Market Analyst at OANDA.
"PCE readings and comments from Fed Chair Powell will be key for Fed's policy stance," adds Moya. "If swap futures start to believe the Fed will likely deliver two more rate increases, gold could remain vulnerable. However, if risk aversion runs wild, gold could see some flight to safety flows. Gold has key support at the $1900 level and resistance at the $1960 region."
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214108/
Friday, 23 June 2023
Australia Manufacturing PMI 48.6 In June; Services PMI 50.7 - Judo Bank
Australia Manufacturing PMI 48.6 In June; Services PMI 50.7 - Judo Bank
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214038/
Japan Inflation Data Due On Friday
Japan will on Friday release May figures for national consumer prices, highlighting a modest day for Asia-Pacific economic activity.
Overall inflation is expected to rise 4.1 percent, up from 3.5 percent in April. Core CPI, however, is expected to fall to an annual 3.1 percent from 3.4 percent in the previous month.
Japan also will see June results for the manufacturing and services PMIs from Jibun Bank; in May, their scores were 50.6 and 55.9, respectively.
Malaysia will release May numbers for consumer prices; in April, overall inflation was up 0.1 percent on month and 3.3 percent on year.
Singapore will provide May figures for consumer prices; in April, overall inflation was up 0.1 percent on month and 5.7 percent on year, while core CPI climbed an annual 5.0 percent.
Australia will see June results for the manufacturing and services PMIs from Judo Bank; in May, their scores were 48.4 and 52.1, respectively.
Finally, the markets in Taiwan and China remain closed on Friday for the Dragon Boat Festival 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/2214037/
Asia Day Ahead: US Megacap Tech Shined; Series of PMI Readings to End the Week
U.S. Dollar Moves Back To The Upside Amid Interest Rate Concerns
Following the pullback seen in the previous session, the value of the U.S. dollar has moved back to the upside during trading on Thursday.
The U.S. dollar index moved to the upside in morning trading and remains up by 0.34 points or 0.3 percent at 102.41.
The greenback is trading at 143.11 yen versus the 141.88 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0956 compared to yesterday's $1.0986.
The rebound by the dollar came amid ongoing interest rate concerns, as Federal Reserve Chair Jerome Powell reiterated the central bank plans to continue raising interest rates during his second day of testimony on Capitol Hill.
Adding to the interest rate concerns, the Bank of England raised rates more aggressively, citing persistent inflation and labor market tightness.
The rate-setting panel voted 7-2 to increase the bank rate by 50 basis points to 5.00 percent, the highest since 2008. Markets were expecting a quarter point increase.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214036/
Gold Futures Settle Lower As Dollar Rises On Rate Hike Bets
Gold prices fell on Thursday as the dollar firmed amid bets of further tightening by the Federal Reserve, and on concerns about economic slowdown.
Fed Chair Jerome Powell made it clear that inflationary pressures continue to run high, and the tightening has "a long way to go".
The Bank of England (BoE) and the Swiss National Bank (SNB) raised interest rates today, pledging to continue their fight against inflation.
The BoE raised its rates by larger than expected 50 basis points, while the SNB announced a 25-basis point hike.
The dollar index climbed to 102.47, gaining nearly 0.4%.
Gold futures for August ended down $21.20 at $1,923.70 an ounce.
Silver futures for July ended lower by $0.343 at $22.467 an ounce, while Copper futures for July settled at $3.8900 per pound, down $0.0235 from the previous close.
Following Fed Chair Powell's hint at more rate hikes during his testimony, CME Group's FedWatch Tool currently indicates a 74.4% chance the Fed will raise rates by another quarter point following its next meeting in late July.
In U.S. economic news, a report from the Labor Department showed initial jobless claims came in at 264,000 last week, unchanged from the previous week's revised level. Economists had expected jobless claims to edge down to 260,000 from the 262,000 originally reported for the previous week.
Reflecting the upward revision to the previous week, jobless claims held at their highest level since hitting 269,000 in the week ended October 23, 2021.
A reading on leading U.S. economic indicators decreased in line with economist estimates in the month of May, the Conference Board revealed in a report released on Thursday. The Conference Board said its leading economic index slid by 0.7% in May after falling by 0.6%.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2214033/
Thursday, 22 June 2023
New Zealand Has NZ$46 Million Trade Surplus In May
New Zealand posted a merchandise trade surplus of NZ$46 million in May, Statistics New Zealand said on Thursday.
That beat expectations for a deficit of NZ$350 million following the downwardly revised NZ$236 million surplus in April (originally NZ$427 million).
Exports were worth NZ$6.99 billion, up from the downwardly revised NZ$6.61 billion in the previous month (originally NZ$6.80 billion).
Imports were worth NZ$6.95 billion following the downwardly revised NZ$6.37 billion a month earlier (originally NZ$6.38 billion).
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2213961/
New Zealand Imports NZ$6.96 Billion In May Exports NZ$6.99 Billion
New Zealand Imports NZ$6.96 Billion In May, Exports NZ$6.99 Billion
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2213959/
New Zealand Trade Surplus NZ$46 Million In May
New Zealand Trade Surplus NZ$46 Million In May
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2213960/
New Zealand Trade Data Due On Thursday
New Zealand will on Thursday release May figures for imports, exports and trade balance, highlighting a light day for Asia-Pacific economic activity.
In April, imports were worth NZ$6.38 billion and exports were at NZ$6.80 billion for a trade surplus of NZ$427 million. May is expected to show a deficit of NZ$350 million.
New Zealand also will see May figures for credit card spending, with forecasts suggesting an increase of 13.9 percent on year following the 11.4 percent increase in April.
The central bank in Indonesia will wrap up its monetary policy meeting and then announce its decision on interest rates. The bank is expected to keep its benchmark lending rate (5.75 percent), deposit facility rate (5.00 percent) and lending facility rate (6.50 percent) all unchanged.
Finally, the markets in Taiwan, China and Hong Kong are closed on Thursday for the Dragon Boat Festival.
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source http://www.mt5.com/forex_news/quickview/2213958/
Asia Day Ahead: Fed Chair Took the Stage with Hawkish Comments
Dollar Loses Ground Against Major Rivals Despite Powell's Hawkish Comments
The U.S. dollar shed ground against its major counterparts on Wednesday despite Federal Reserve Chair Jerome Powell, who testified before the House Financial Services Committee today, reiterating that the central bank will likely continue raising rates to contain inflation.
Investors also assessed UK inflation data and looked ahead to the Bank of England's policy announcement, due on Thursday.
Powell reiterated the Fed is likely to continue raising interest rates in an effort to contain stubbornly elevated inflation.
"Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year," Powell said.
The Fed left rates unchanged last week, but the central bank's latest projections suggest it plans to resume raising rates later this year, forecasting a rate of 5.6% by the end of 2023.
If the Fed decided to revert to its recent quarter-point increases, the forecast suggests the central bank will raise rates two more times this year.
The forecast for additional rate hikes come as Powell noted inflation pressures continue to run high and said the process of getting inflation back to the Fed's 2% target has a "long way to go."
In European economic news, official data showed that U.K. consumer prices logged a steady growth rather than a slowdown in May. Core inflation accelerated further, adding pressure on the Bank of England to raise the benchmark rate by half a percentage point.
Consumer price inflation came in unchanged at 8.7% in May while analysts had forecast the rate to ease to 8.4%. Core inflation that excludes energy, food, alcohol and tobacco climbed to 7.1%, which was the highest since March 1992.
The dollar index dropped to 102.02, losing more than 0.5%.
Against the Euro, the dollar weakened to 1.0989 from 1.0920, and was roughly flat against Pound Sterling at 1.2766.
Against the Japanese currency, the dollar is up, fetching 141.89 yen a unit, compared with 141.44 yen on Wednesday.
The dollar is down marginally against the Aussie at 0.6797. Against Swiss franc, the dollar is weak, fetching CHF 0.8930 a unit, more than 0.5% down from the previous close of CHF 0.8979.
The Loonie up against the dollar at C$1.3167 as oil prices surged higher on optimism about higher demand in the U.S.
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source http://www.mt5.com/forex_news/quickview/2213957/
Oil Futures Settle Notably Higher Ahead Of Inventory Data
Crude oil prices climbed higher on Wednesday amid hopes about outlook for demand in the U.S., and forecasts for a drawdown in U.S. crude stocks last week.
West Texas Intermediate Crude oil futures for August ended higher by $1.34 at $72.53 a barrel, recovering smartly from a low of $70.80 a barrel.
Brent crude futures were up $1.20 or 1.58% at $77.10 a barrel a little while ago.
Traders await weekly crude inventory data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA).
The API's report is due later today, while the EIA is scheduled to release its crude inventory data Thursday morning.
A Reuters poll estimates a drop of about 400,000 barrels of crude stocks in the U.S. in the week to June 16. However, an expanded poll suggests a marginal increase in crude oil stockpiles.
Traders also noted the hawkish comments from Fed Chair Jerome Powell, who reiterated before the House Financial Services Committee that the central bank is likely to continue raising rates to contain inflation.
"Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year," Powell said in his testimony today.
The central bank's latest projections suggest it plans to resume raising rates later this year, forecasting a rate of 5.6% by the end of 2023.
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source http://www.mt5.com/forex_news/quickview/2213956/
Gold Futures Settle Lower On Rate Hike Concerns
Gold futures settled slightly lower on Wednesday on rate hike concerns as Fed Chair Jerome Powell reiterated before the House Financial Services Committee that the central bank is likely to continue raising rates to contain inflation.
Despite prospects of interest rate hikes, the dollar stayed weak today, and this helped limit gold's downside.
The dollar index fell to 102.12, losing more than 0.4%.
Gold futures for August ended lower by $2.80 at $1,944.90 an ounce.
Silver futures for July ended down $0.424 at $22.810 an ounce, while Copper futures for July settled at $3.9135 per pound, gaining $0.0300.
"Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year," Powell said in his testimony today.
The Fed left rates unchanged last week, but the central bank's latest projections suggest it plans to resume raising rates later this year, forecasting a rate of 5.6% by the end of 2023.
If the Fed decided to revert to its recent quarter-point increases, the forecast suggests the central bank will raise rates two more times this year.
The forecast for additional rate hikes come as Powell noted inflation pressures continue to run high and said the process of getting inflation back to the Fed's 2% target has a "long way to go."
CME Group's FedWatch Tool is now indicating a 76.9% chance the Fed will raise rates by another quarter point following its next meeting in late July.
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source http://www.mt5.com/forex_news/quickview/2213954/
Wednesday, 21 June 2023
S&P 500 & Nasdaq 100 Price Setups: Will Powells Speech Trigger a Reversal?
Dollar Gains Against Major Counterparts On Rate Hike Bets
The U.S. dollar firmed against most of its major counterparts on Tuesday after stronger-than-expected housing starts and building permits data raised expectations for a rate hike by the Federal Reserve next month.
The Commerce Department's report showed new residential construction in the U.S. unexpectedly skyrocketed in the month of May.
The report said housing starts soared by 21.7% to an annual rate of 1.631 million in May after tumbling by 2.9% to a revised rate of 1.340 million in April. Economists had expected housing starts to edge down to a rate of 1.400 million from the 1.401 million originally reported for the previous month.
The report said building permits also surged by 5.2% to an annual rate of 1.491 million in May after slumping by 1.4% to a revised rate of 1.417 million in April.
Building permits, an indicator of future housing demand, were expected to rise to a rate of 1.423 million from the 1.416 million originally reported for the previous month.
Investors are now pricing in a 71.9% chance of a 25 basis point increase at the Fed's next meeting in July.
Traders look ahead to congressional testimony by Federal Reserve Chair Jerome Powell, for additional clues about the outlook for rates after the Fed signaled further rate hikes last week.
Powell is due to testify before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday.
The dollar index, which climbed to 102.79 after the release of housing starts and building permits data, later dropped to 102.53, up just slightly from the previous close.
Against the Euro, the dollar firmed to 1.0893 before paring some gains. The dollar is currently trading at 1.0918 against the Euro.
The dollar is trading at 1.2766 against Pound Sterling, gaining from 1.2794. Against the Japanese currency, the dollar is weak, fetching 141.43 yen a unit, compared with 141.99 yen a unit on Monday.
The dollar has strengthened to 0.6788 against the Aussie, firming from 0.6853. Against Swiss franc, the dollar is firm at CHF 0.8979, and up against the loonie as well, gaining about 0.2% at C$1.3233.
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source http://www.mt5.com/forex_news/quickview/2213904/
Treasuries Move Higher Ahead Of Powell Testimony
After showing a lack of direction early in the session, treasuries moved to the upside over the course of the trading day on Tuesday.
Bond prices climbed firmly into positive territory after initially 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, fell by 4.0 basis points to 3.729 percent.
The strength that emerged among treasuries came as traders looked ahead to congressional testimony by Federal Reserve Chair Jerome Powell.
Powell is due to testify before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday.
Traders are likely to pay close attention to Powell's remarks, looking for additional clues about the outlook for rates after the Fed signaled further rate hikes last week.
Comments by a number of other Fed officials are also likely to attract attention in the coming days along with reports on weekly jobless claims and existing home sales.
On the U.S. economic front, a report released by the Commerce Department showed new residential construction in the U.S. unexpectedly skyrocketed in the month of May.
The Commerce Department said housing starts soared by 21.7 percent to an annual rate of 1.631 million in May after tumbling by 2.9 percent to a revised rate of 1.340 million in April.
Economists had expected housing starts to edge down to a rate of 1.400 million from the 1.401 million originally reported for the previous month.
The report said building permits also surged by 5.2 percent to an annual rate of 1.491 million in May after slumping by 1.4 percent to a revised rate of 1.417 million in April.
Building permits, an indicator of future housing demand, were expected to rise to a rate of 1.423 million from the 1.416 million originally reported for the previous month.
Powell's congressional testimony is likely to be in the spotlight on Wednesday, while remarks by several other Fed officials may also attract attention.
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source http://www.mt5.com/forex_news/quickview/2213902/
Gold Futures Settle Notably Lower
Gold futures settled notably lower on Tuesday as the dollar firmed a bit on rate hike bets after stronger-than-expected housing starts and building permits data for May.
The dollar index climbed to 102.79 around mid morning, but dropped to 102.57 later on, netting just a marginal gain of about 0.05%.
Gold futures for August ended down $23.50 at $1,947.70 an ounce.
Silver futures for July ended lower by $0.892 at $23.234 an ounce, while Copper futures for July settled at $3.8835 per pound, down $0.0055 from the previous close.
Data from the Commerce Department showed that U.S. housing starts unexpectedly skyrocketed in the month of May, soaring by 21.7% to an annual rate of 1.631 million after tumbling by 2.9% to a revised rate of 1.340 million in April.
Economists had expected housing starts to edge down to a rate of 1.400 million from the 1.401 million originally reported for the previous month.
The report said building permits also surged by 5.2% to an annual rate of 1.491 million in May after slumping by 1.4 percent to a revised rate of 1.417 million in April.
Building permits, an indicator of future housing demand, were expected to rise to a rate of 1.423 million from the 1.416 million originally reported for the previous month.
Edward Moya, Senior Market Analyst at OANDA says "gold bears are in control and momentum selling doesn't seem to care that stocks are softer and as Treasury yields come down. Wall Street is still thinking that the Fed will only deliver one more quarter-point rate rise but no one wants to be long gold before what will likely be a shortened week of hawkish Fed speak."
Moya adds that Fed's Waller will stick to his stance of supporting further hikes, and Bullard will likely confirm he still supports two more rate hikes.
Earlier today, China's central bank cut two key benchmark interest rates in a bid to counter the post-COVID growth slowdown in the world's second-largest economy.
Traders now look ahead to Fed Chair Jerome Powell's congressional testimonies on Wednesday and Thursday for clues on the monetary policy path ahead.
Elsewhere, the Bank of England is scheduled to announce its policy on Thursday, with economists expecting the central bank to raise interest rates by a quarter point to a 15-year high of 4.75%, marking its 13th straight rate rise.
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source http://www.mt5.com/forex_news/quickview/2213901/
Tuesday, 20 June 2023
China Lowers 5-year Loan Prime Rate By 10 Bps To 4.2%
China Lowers 5-year Loan Prime Rate By 10 Bps To 4.2%
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source http://www.mt5.com/forex_news/quickview/2213832/
China Cuts 1-year Loan Prime Rate To 3.55% From 3.65%
China Cuts 1-year Loan Prime Rate To 3.55% From 3.65%
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source http://www.mt5.com/forex_news/quickview/2213831/
AUD/USD Price Forecast: Aussie Sinks on Lackluster RBA and Chinese Rates
Gold Price Treads Water as US Dollar Steadies and GBP Rolls Over Ahead of BoE
More Signs of Natural Gas in Bottoming Process; Sentiment Points to Upside in Crude Oil
Asia Day Ahead: Mixed Open in Asia; RBA minutes Chinas LPR in Focus
Monday, 19 June 2023
Australian Dollar Falls To 4-day Low Of 0.6845 Against U.S. Dollar
Australian Dollar Falls To 4-day Low Of 0.6845 Against U.S. Dollar
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source http://www.mt5.com/forex_news/quickview/2213808/
GBP/USD Price forecast: BoE Eyes UK CPI Ahead of Rate Decision
Euro After ECB Rate Hike: EUR/USD EUR/AUD EUR/GBP Price Setups
Hong Kong Unemployment Data Due On Monday
Hong Kong will on Monday release May figures for unemployment, highlighting a very light day for Asia-Pacific economic activity.
The jobless rate is expected to come in at 2.8 percent, down from 3.0 percent in April.
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source http://www.mt5.com/forex_news/quickview/2213806/
Asia Day Ahead: Wall Street Rally Pauses Ahead of Series of Fedspeak
Sunday, 18 June 2023
Markets Week Ahead: S&P 500 Gold US Dollar Powell BOE Japan Inflation RBA Minutes
US Dollar Week Ahead: Bearish Bets Increase After Feds Hawkish Pause
Gold Weekly Forecast: Gold (XAU/USD) Bears Fail to Find Acceptance Below 100-Day MA Where to Next?
Saturday, 17 June 2023
Euro Forecast: Bullish Breakout Signals Upward Price Trend Ahead for EUR/USD
Dollar Recovers After Falling To One-month Low
The U.S. dollar recovered after falling to a one-month low on Friday as traders assessed the latest policy moves by central banks, and reacted to a slew of economic data from across the globe.
In U.S. economic news today, a report from the University of Michigan showed a bigger than expected improvement in U.S. consumer sentiment in the month of June.
The report said the University of Michigan's consumer sentiment index climbed to 63.9 in June from 59.2 in May. Economists had expected in the index to inch up to 60.0.
The report also showed a significant decrease in year-ahead inflation expectations, which tumbled to 3.3% in June from 4.2% in May, hitting the lowest level since March 2021.
Five-year inflation expectations edged down to 3% in June from 3.1% in May, again staying within the narrow 2.9-3.1% range for 22 of the last 23 months.
The decrease in inflation expectations may add to recent investor optimism that the Federal Reserve won't follow through on its plan to continue raising interest rates.
The dollar index, which fell to 102.01, climbed to 102.43 after data showed a stronger than expected improvment in U.S. consumer sentiment in the month of June. The index is currently at 102.34, gaining about 0.22%.
Against the Euro, the dollar is up at 1.0938, and is weak against Pound Sterling at 1.2822.
Against the Japanese currency, the dollar is trading at 141.90 yen, firming from 140.27 yen. The dollar is little changed against the Aussie at 0.6877, and is firm against Swiss franc, fetching CHF 0.8941 a unit. Against the Loonie, the dollar has weakened to C$1.3201.
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source http://www.mt5.com/forex_news/quickview/2213804/
Oil Futures Settle Sharply Higher Gain 2.3% In Week
Crude oil prices climbed higher on Friday amid hopes about higher refinery demand and on optimism the rate cut by the People's Bank of China and possible further stimulus will help boost growth in the world's second largest economy.
Oil prices were also supported by Russia's Energy Minister Nikolai Shulginov's comments that it was "realistic" to expect crude prices to return to around $80 per barrel. Shulginov cited falling Russian oil and gas condensate production to around 20 million tonnes this year as one of the reasons for his views.
West Texas Intermediate Crude oil futures ended higher by $1.16 or about 1.6% at $71.78 a barrel. WTI crude futures gained about 2.3% in the week.
Brent crude futures were up $1.03 or 1.36% at $76.70 a barrel a little while ago.
"Oil is rallying as the short-term fundamental outlook appears to have turned a corner, with Europe's diesel premium surging and as China delivers a massive crude import quota," says Edward Moya, Senior Market Analyst at OANDA. "Europe's widening of Gasoil cracks was triggered by refinery maintenance across Asia, while China's imports improve and probably will become robust once stimulus flows through the economy."
"Refinery outages are killing this morning's rally as that could lead to significant builds over the coming weeks," he adds.
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source http://www.mt5.com/forex_news/quickview/2213802/
Gold Futures Settle Flat
Gold futures failed to hold early gains and settled flat on Friday as the dollar climbed higher after data showed a bigger than expected improvement in U.S. consumer sentiment, and a drop in inflation expectations.
The dollar, which fell after exhibiting strength in the Asian session, recovered and climbed to 102.43 around noon, before easing a bit to 102.30, still up nearly 0.2% from the previous close.
Gold futures for August settled at $1,971.20 an ounce, up $0.50 from the previous close, recovering from a low of $1,956.70. Gold futures shed 0.3% in the week.
Silver futures for July ended higher by $0.179 at $24.126 an ounce, while Copper futures for July ended down $0.0065 at $3.8935 per pound.
Edward Moya, Senior Market Analyst at OANDA says "gold really didn't do a whole lot this week despite all the central bank fireworks and as stocks had the best week since March. A hawkish Fed hold was countered by some stimulus from China, which also comes with expectations that more help for the Chinese economy is coming."
"A gold plunge did not occur as the hawkish FOMC statement and staff projections was followed by a hesitant Fed Chair that refused to commit to a July hike," adds Moya.
Gold won't be attracting safe-haven flows until this stock market breaks and that might not if the AI trade remains intact. Adobe earnings kept the AI trade going, but despite all the buzz, it could be ready for a pause. Gold might continue to consolidate here, but should rebound the moment risk appetite heads for summer vacation.
A report from the University of Michigan showed a bigger than expected improvement in U.S. consumer sentiment in the month of June.
The report said the University of Michigan's consumer sentiment index climbed to 63.9 in June from 59.2 in May. Economists had expected in the index to inch up to 60.0.
The report also showed a significant decrease in year-ahead inflation expectations, which tumbled to 3.3% in June from 4.2% in May, hitting the lowest level since March 2021.
Five-year inflation expectations edged down to 3% in June from 3.1% in May, again staying within the narrow 2.9-3.1% range for 22 of the last 23 months.
The decrease inflation expectations may add to recent investor optimism that the Federal Reserve won't follow through on its plan to continue raising rates.
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source http://www.mt5.com/forex_news/quickview/2213801/
Friday, 16 June 2023
New Zealand Manufacturing PMI 48.9 In May - BusinessNZ
New Zealand Manufacturing PMI 48.9 In May - BusinessNZ
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source http://www.mt5.com/forex_news/quickview/2213761/
Japanese Yen Slips as BOJ Keeps Policy Unchanged: Whats Next for USD/JPY?
Japan Rate Decision On Tap For Friday
The Bank of Japan will wrap up its monetary policy meeting on Friday and then announce its decision on interest rates, highlighting a light day for Asia-Pacific economic activity. The BoJ is widely expected to keep its benchmark lending rate unchanged at -0.10 percent.
Singapore will release May figures for non-oil domestic exports, with forecasts suggesting a decline of 0.8 percent on month and 9.1 percent on year after rising 2.7 percent on month and sinking 9.8 percent on year in April. The trade surplus is pegged at SGD5.982 billion, up from SGD4.713 billion in the previous month.
New Zealand will see May results for the manufacturing index from BusinessNZ, with forecasts suggesting a score of 50.2 - up from 49.1 in April.
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source http://www.mt5.com/forex_news/quickview/2213760/
Asia Day Ahead: Lingering Market Doubts on Feds Hawkish Guidance
Dollar Drifts Lower Against Major Rivals
The U.S. dollar shed ground against its major counterparts on Thursday after the European Central Bank raised interest rates and signaled another hike in July.
Despite hawkish remarks from the Federal Reserve on Wednesday, the latest data on jobless claims in the U.S. has raised optimism that the central bank will not follow through.
Data from the Labor Department showed initial jobless claims held at their highest level since October 2021 in the week ended June 9th.
The Labor Department said initial jobless claims came in at 262,000, unchanged from the previous week's revised level.
Economists had expected jobless claims to dip to 249,000 from the 261,000 originally reported for the previous week.
A separate Labor Department report showing import prices in the U.S. fell by much more than expected in the month of May has also generated optimism about the outlook for inflation.
The report said import prices slid by 0.6% in May, reflecting a sharp pullback in prices for fuel imports and a modest decrease in prices for non-fuel imports. Economists had expected import prices to edge down by 0.1%.
The ECB today increased the main refinancing rate, or refi, by 25 basis points to 4%. The previous change in the interest rates was a similar hike in May. The ECB has raised rates in every policy session since July last year, by a cumulative 350 basis points.
The ECB expects core inflation, excluding energy and food, to reach 5.1% in 2023, before easing to 3% next year, and further down to 2.3% in 2025. The Eurozone economy is now projected to grow by 0.9% this year, 1.5% next year and 1.6% in 2025.
The dollar index dropped to 102.09, losing more than 0.8%.
Against the Euro, the dollar has weakened to 1.0949 from 1.0836. The dollar is down against Pound Sterling at 1.2784, easing nearly 1% from 1.2665.
Against the Japanese currency, the dollar is trading at 0.6886, weakening from 0.6795. The dollar is weak against Swiss franc, fetching CHF 0.8912 a unit, compared to CHF 0.9011 on Wednesday. The loonie is stronger against the dollar at C$1.3221, firming from C$1.3327, as oil prices rose sharply.
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source http://www.mt5.com/forex_news/quickview/2213759/
Treasuries Move Notably Higher Following Slew Of Economic Data
Treasuries recovered from an early move to the downside and moved notably higher over the course of the trading session on Thursday.
Bond prices rebounded in morning trading and spent the afternoon hovering firmly in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.8 basis points to 3.728 percent.
The ten-year yield closed lower for the second straight session after ending Tuesday's trading at a three-month closing high.
The strength among treasuries seemed to reflect optimism about the outlook for interest rates following the release of a slew of U.S. economic data.
While the Federal Reserve forecast further rate hikes on Wednesday, traders seem hopeful the central bank will not follow through.
The optimism partly stems from a report from the Labor Department showing initial jobless claims held at their highest level since October 2021 in the week ended June 9th.
The Labor Department said initial jobless claims came in at 262,000, unchanged from the previous week's revised level.
Economists had expected jobless claims to dip to 249,000 from the 261,000 originally reported for the previous week.
A separate Labor Department report showing import prices in the U.S. fell by much more than expected in the month of May has also generated optimism about the outlook for inflation.
The report said import prices slid by 0.6 percent in May, reflecting a sharp pullback in prices for fuel imports and a modest decrease in prices for non-fuel imports. Economists had expected import prices to edge down by 0.1 percent.
"Nonfuel import prices along with the consumer and producer prices suggest that inflation is moderating," said Matthew Martin, US Economist at Oxford Economics. "Therefore, it's unlikely that the Fed follows through with their plan to hike rates in the second half of this year."
Meanwhile, separate reports showed an unexpected increase in retail sales and an unexpected decrease in industrial production.
Following today's avalanche of data, the U.S. economic calendar is relatively quiet on Friday, although traders are still likely to keep an eye on a preliminary report on consumer sentiment in June.
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source http://www.mt5.com/forex_news/quickview/2213757/
Thursday, 15 June 2023
Australia Unemployment Data Due On Thursday
Australia will on Thursday release unemployment figures for May, headlining a busy day in Asia-Pacific economic activity. The jobless rate is expected to hold steady at 3.7 percent, with the addition of 15,000 jobs following the loss of 4,300 jobs in April. The participation rate also is seen unchanged at 66.7 percent.
New Zealand will provide Q1 numbers for gross domestic product, with forecasts suggesting a decline of 0.1 percent on quarter and a gain of 2.6 percent on year. That follows the 0.6 percent quarterly decline and the 2.2 percent annual increase in the three months prior.
Japan will see April data for core machine orders and May figures for imports, exports and trade balance. Core machine orders are expected to rise 3.0 percent on month and fall 8.0 percent on year after sinking 3.9 percent on month and 3.5 percent on year in March.
Imports are expected to drop 10.3 percent on year after slipping 2.3 percent in April. Exports are called lower by an annual 0.8 percent after rising 2.6 percent in the previous month. The trade surplus is pegged at 1,331.9 billion yen following the 432.3 billion yen shortfall a month earlier.
South Korea will release May numbers for imports, exports and trade balance. Imports are expected to tumbled 14.0 percent on year after sinking 13.3 percent in April. Exports are seen lower by an annual 15.2 percent after dropping 14.3 percent in the previous month. The trade deficit is pegged at $2.10 billion following the $2.70 billion deficit a month earlier.
China will provide May data for industrial production, retail sales, fixed asset investment and unemployment. Industrial output is tipped to add 3.8 percent on year, slowing from 5.6 percent in April. Retail sales are seen higher by an annual 13.7 percent, slowing from 18.4 percent a month earlier. FAI is predicted to rise 4.4 percent on year, down from 4.7 percent in the previous month. The jobless rate is called steady at 5.2 percent.
Singapore will see jobless data for the first quarter of 2023, with forecasts suggesting an unemployment rate of 1.8 percent - down from 2.0 percent in the three months prior.
The central bank in Taiwan will wrap up its monetary policy meeting and announce its decision on interest rates. The bank is expected to keep its benchmark lending rate unchanged at 1.875 percent.
The Hong Kong Monetary Authority will conclude its monetary policy meeting and announce its decision on interest rates; it's expected to leave its benchmark lending rate unchanged at 5.50 percent. Hong Kong also will see Q1 data for industrial production and producer prices; in the previous three months, they were down 0.1 percent and 0.4 percent, respectively.
Indonesia will release May numbers for imports, exports and trade balance. Imports are expected to sink 12.85 percent on year after tumbling 22.32 percent in April. Exports are called lower by an annual 12.0 percent after plummeting 29.4 percent in the previous month. The trade surplus is pegged at $3.00 billion, down from $3.94 billion a month earlier.
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source http://www.mt5.com/forex_news/quickview/2213651/
High-for-longer rate outlook as takeaway from FOMC meeting: Gold Copper US dollar
Oil Futures Pare Early Gains Settle Notably Lower
Crude oil prices pared early gains and drifted lower on Wednesday as data showed a notable increase in U.S. crude inventory in the week ended June 9th.
Oil prices climbed higher earlier in the day as the dollar weakened as signs of moderating U.S. inflation reinforced bets the Federal Reserve would skip a rate hike, after ten consecutive rate hikes over the last fifteen months.
Positive industrial production data from eurozone and encouraging data on UK economic growth also helped lift oil prices earlier in the session.
The Fed today decided to maintain the target range for the federal funds rate at 5 to 5.25%, marking the first time the central bank has left rates unchanged since January 2022.
Leaving rates unchanged will allow the Federal Open Market Committee the opportunity to assess additional information and its implications for monetary policy, the Fed said.
The Fed noted future interest rate decisions will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.
However, the central bank's latest projections suggest the Fed plans to resume raising rates later this year, forecasting a rate of 5.6% by the end of 2023.
West Texas Intermediate Crude oil futures for July ended lower by $1.15 or about 1.7% at $68.27 a barrel.
Brent crude futures settled at $73.20 a barrel today, down $1.09 or about 1.5% from the previous close.
Data released by the Energy Information Administration (EIA) this morning showed crude inventories in the U.S. surged by 7.919 million barrels last week, substantially larger than the expected increase of abut 1.48 million barrels.
The EIA data also showed the gasoline stockpile rose by 2.108 million barrels last week, more than three times the expected increase of about 0.637 million barrels. Distillate stockpiles increased 2.123 million barrels, more than twice the expected increase.
Meanwhile, the International Energy Agency (IEA) has said global oil demand growth will taper off over the next few years as high prices and Russia's invasion of Ukraine speed up the transition away from fossil fuels.
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source http://www.mt5.com/forex_news/quickview/2213650/
Treasuries Close Higher Following Post-Fed Volatility
After seeing strength for much of the session, treasuries saw considerable volatility in the final hour of trading on Wednesday.
Bond prices pulled back into negative territory but rebounded going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.3 basis points to 3.796 percent.
The ten-year yield closed lower for the first time in four sessions, pulling back off Tuesday's three-month closing high.
The late-day volatility in the bond market came as traders reacted to the Federal Reserve's highly anticipated monetary policy decision.
While the Fed announced its widely expected decision to pause its interest rate increases following ten consecutive rate hikes, the central bank also forecast additional increases later this year.
The Fed said it has decided to maintain the target range for the federal funds rate at 5 to 5.25 percent, marking the first time the central bank has left rates unchanged since January 2022.
Leaving rates unchanged will allow the Federal Open Market Committee the opportunity to assess additional information and its implications for monetary policy, the Fed said.
However, the central bank's latest projections suggest the Fed plans to resume raising rates later this year, forecasting a rate of 5.6 percent by the end of 2023.
If the Fed decided to revert to its recent quarter-point increases, the forecast suggests the central bank will raise rates two more times this year.
Back in March, the Fed has predicted interest rates would be at 5.1 percent at the end of the year, in line with the current 5 to 5.25 percent range.
The forecast for additional rate hikes this year comes as the Fed raised its forecast for annual core consumer price growth to 3.9 percent from 3.6 percent.
"The Fed today left rates unchanged, but signaled a clear intention to continue hiking rates in 2023 and keeping rates high in 2024," said Chris Low, Chief Economist at FHN Financial.
He added, "As much as inflation is moving in the right direction, it is moving slowly, and the Fed remains frustrated with its inability to move the needle on the unemployment rate."
The Fed's next monetary policy meeting is scheduled for July 25-26, with CME Group's FedWatch Tool currently indicating a 61.5 percent chance of a 25 basis point increase.
While reaction to the Fed announcement may continue to impact trading on Thursday, traders are also likely to keep an eye on a slew of U.S. economic data, including reports on weekly jobless claims, retail sales and industrial production.
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source http://www.mt5.com/forex_news/quickview/2213649/
New Zealand Dollar Dips on Soft GDP Data. Where to for NZD/USD?
Gold Futures Settle Higher As Dollar Eases Ahead Of Fed Policy
Gold futures settled higher on Wednesday as the dollar shed ground against major counterparts ahead of the Federal Reserve's monetary policy announcement.
The dollar index dropped to 102.66, losing about 0.65% on expectations the Federal Reserve might pause its recent interest rate increases.
Gold futures for August ended higher by $10.30 at $1,968.90 an ounce.
Silver futures for July ended up $0.283 at $24.105 an ounce, while Copper futures for July settled at $3.8700 per pound, gaining $0.0390.
Data from the Labor Department on Tuesday showed the consumer price index inched up by 0.1% in May after climbing by 0.4% in April. Economists had expected prices to tick up by 0.2%.
Excluding food and energy prices, core consumer prices rose by 0.4% in May, matching the increase seen in each of the two previous months as well as economist estimates.
The Labor Department also said the annual rate of consumer price growth slowed to 4% in May from 4.9% in April. Economists had expected the pace of growth to slow to 4.1%.
The data added to optimism about the Fed pausing its recent interest rate increases today.
Investors will likely parse the accompanying policy statement, the summary of economic projections and remarks from Fed Chairman Jerome Powell during the press conference for clues over the appropriate path forward for monetary policy.
In economic releases today, the Labor Department said its producer price index for final demand fell by 0.3% in May after inching up by 0.2% in April. Economists had expected producer prices to edge down by 0.1%.
The report also showed the annual rate of producer price growth slowed to 1.1% in May from 2.3% in April. The rate of growth was expected to decelerate to 1.5%.
Meanwhile, the European Central Bank is expected to raise interest rates by 25 basis points on Thursday despite deepening fears of a recession in Europe.
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source http://www.mt5.com/forex_news/quickview/2213645/
Wednesday, 14 June 2023
Dollar Gains Against Major Counterparts After Inflation Data
The U.S. dollar drifted lower against its major counterparts on Tuesday after data showing a slowdown in consumer price inflation raised hopes the Federal Reserve will pause rate increases when it announces its monetary policy decision on Wednesday.
Data from the Labor Department showed the consumer price index inched up by 0.1% in May after climbing by 0.4% in April. Economists had expected prices to tick up by 0.2%.
Core consumer prices rose by 0.4% in May, matching the increase seen in each of the two previous months as well as economist estimates.
The Labor Department also said the annual rate of consumer price growth slowed to 4% in May from 4.9% in April. The annual rate of core consumer price growth also slowed to 5.3% in May from 5.5% in April, in line with expectations.
Following the release of the report, CME Group's FedWatch Tool is indicating a 91.9% chance the Fed leaves interest rates unchanged.
The dollar index dropped to 103.05 soon after the release of the consumer inflation data, and despite recovering some lost ground subsequently, remains more than 0.3% down at 103.30.
Against the Euro, the dollar has weakened to 1.0793 from 1.0759. The dollar is weak against Pound Sterling at 1.2610, easing from 1.2514.
Against the Japanese currency, the dollar is strong, fetching 140.23 yen a unit, nearly 0.5% more than the previous close of 139.60 yen.
The dollar is weak against the Aussie at 0.6765. Against Swiss franc, the dollar has firmed to CHF 0.9051, and against the Loonie, is trading at C$1.3316, with higher oil prices strengthening the Canadian currency.
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source http://www.mt5.com/forex_news/quickview/2213569/
Gold Price Peels Lower Despite Soft US Dollar Ahead of the Fed. Lower XAU/USD?
Gold Futures Pare Early Gains Settle Lower For 3rd Straight Day
Despite a weak dollar, gold futures settled lower on Tuesday, extending losses to a third straight session, as data showing a less than expected rise in consumer prices prompted investors to seek riskier assets such as equities.
The consumer inflation data added to optimism about the Federal Reserve pausing its recent interest rate increases when the central bank announces its monetary policy decision on Wednesday.
The dollar index dropped to 103.05 after the release of U.S. consumer price inflation data, and despite recovering to 103.31, remains in negative territory, losing about 0.33%.
Gold futures for August ended lower by $11.10 or about 0.6% at $1,958.60 an ounce, coming off the session's high of 1,985.90 an ounce.
Silver futures for July ended down $0.237 at $23.822 an ounce, after having surged to $24.520 an ounce earlier in the session.
Copper futures for July settled at $3.8310 per pound, gaining $0.0790.
Data from the Labor Department showed the consumer price index inched up by 0.1% in May after climbing by 0.4% in April. Economists had expected prices to tick up by 0.2%.
Excluding food and energy prices, core consumer prices rose by 0.4% in May, matching the increase seen in each of the two previous months as well as economist estimates.
The Labor Department also said the annual rate of consumer price growth slowed to 4% in May from 4.9% in April. Economists had expected the pace of growth to slow to 4.1%. The year-over-year growth in May marked the smallest annual increase since the period ending March 2021.
The annual rate of core consumer price growth also slowed to 5.3% in May from 5.5% in April, in line with expectations.
Following the release of the report, CME Group's FedWatch Tool is indicating a 91.9% chance the Fed leaves interest rates unchanged.
"Wall Street is becoming a little bit hopeful here that an FOMC June skip could eventually become a July pause," said Edward Moya, senior market analyst at OANDA. "Inflation is mostly heading lower and some of the leading indicators (car wholesale prices, weakening consumer) support the argument that the disinflation process will continue."
"Even if the end of tightening is widely expected, gold may struggle if stocks continue rise," Moya added.
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source http://www.mt5.com/forex_news/quickview/2213566/
Tuesday, 13 June 2023
Gold Price Flirts with Support as US CPI Shapes Views Ahead of the Fed and ECB
FOMC Preview: Will US CPI Upset the Apple Cart?
Dollar Gains Against Major Counterparts Ahead Of Fed Policy Meeting
After falling somewhat sharply in the Asian session, the U.S. dollar recovered on Monday as traders looked ahead to the Federal Reserve's monetary policy meeting, scheduled to take place on Tuesday and Wednesday.
The Fed is widely expected to pause its recent interest rate increases.
The central bank's accompanying statement as well as key U.S. consumer inflation data are eyed for clues about the outlook for interest rates.
CME Group's FedWatch Tool currently indicates a 71.2 percent chance the Fed will leave rates unchanged on Wednesday, but a 28.8 percent chance of another quarter point rate hike in July.
The European Central Bank is widely expected to hike rates by 25 basis points on Thursday. The Bank of Japan and the People's Bank of China are also scheduled to announce their monetary policies this week.
The dollar index, which dropped to 103.24 in the Asian session, rallied to 103.76 later on in the day, and was last seen at 103.62, up marginally from the previous close.
Against the Euro, the dollar has firmed to 1.0759 after having weakened to 1.0793 earlier. The dollar is up against Pound Sterling at 1.2515.
Against the Japanese currency, the dollar is up at 139.60 yen. The Aussie is slightly stronger against the dollar at 0.6751. Against Swiss franc, the dollar has firmed to CHF 0.9086. The dollar is up against the loonie at C$ 1.3366.
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source http://www.mt5.com/forex_news/quickview/2213507/
Oil Futures Settle Sharply Lower
Oil prices fell sharply on Monday amid concerns about the outlook of energy demand, and on rising Russian crude supply.
A downward revision in crude oil price forecast by Goldman Sachs weighed as well on the commodity.
West Texas Intermediate Crude oil futures for July ended lower by $3.05 or about 4.4% at $67.12 a barrel, dropping to a near 3-month low.
Brent crude futures were down $3.15 or 4.21% at $71.64 a barrel a little while ago.
Goldman Sachs Group has cut crude oil price forecast for December by nearly 10% to $86 a barrel from $95 a barrel, citing signs of increasing supply and slower demand for crude.
Goldman Sachs has also revised down its WTI forecast for December to $81 a barrel, despite Saudi Arabia's announcement of output cuts and efforts by OPEC+ to limit supplies into 2024.
The focus is on the Federal Reserve's monetary policy announcement, due on Wednesday. The Fed is likely to pause its recent interest rate increases. The central bank's accompanying statement as well as key U.S. consumer inflation data are expected to provide clues about the outlook for interest rates.
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source http://www.mt5.com/forex_news/quickview/2213505/
Gold Futures Settle Lower As Dollar Climbs Up
Gold futures settled lower on Monday as the dollar climbed up after initial weakness with traders looking ahead to the Federal Reserve's monetary policy announcement, due later this week.
The dollar index, which dropped to 103.24 in the Asian session, climbed to 103.76 around noon, gaining nearly 0.2%.
Gold futures for August ended down $7.50 or about 0.4% at $1,969.70 an ounce.
Silver futures for July ended lower by $0.351 at $24.059 an ounce, while Copper futures for July settled at $3.7520 per pound, down $0.0370 from the previous close.
The Fed, scheduled to announce its monetary policy on Wednesday, is expected to pause its recent interest rate increases.
The central bank's accompanying statement as well as key U.S. consumer inflation data are eyed for clues about the outlook for interest rates.
CME Group's FedWatch Tool currently indicates a 71.2 percent chance the Fed will leave rates unchanged on Wednesday, but a 28.8 percent chance of another quarter point rate hike in July.
The European Central Bank is widely expected to hike rates by 25 basis points on Thursday. The Bank of Japan and the People's Bank of China are also scheduled to announce their monetary policies this week.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2213504/
Three-Year, Ten-Year Note Auctions Attract Mixed Demand
The Treasury Department announced the results of this month's auctions of $40 billion worth of three-year notes and $32 billion worth of ten-year notes on Monday, revealing the sales attracted mixed demand.
While the three-year note auction attracted above average demand, the ten-year note auction attracted below average demand.
The three-year note auction drew a high yield of 4.202 percent and a bid-to-cover ratio of 2.70.
Last month, the Treasury also sold $40 billion worth of three-year notes, drawing a high yield of 3.695 percent and a bid-to-cover ratio of 2.93.
The ten previous three-year note auctions had an average bid-to-cover ratio of 2.61.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
The ten-year note auction drew a high yield of 3.791 percent and a bid-to-cover ratio of 2.36.
The Treasury sold $35 billion worth of ten-year notes last month, drawing a high yield of 3.448 percent and a bid-to-cover ratio of 2.45.
The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.41.
On Tuesday, the Treasury is due to announce the results of this month's auction of $18 billion worth of thirty-year bonds.
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source http://www.mt5.com/forex_news/quickview/2213503/
Monday, 12 June 2023
*Ireland May Construction PMI 49.4 Vs. 48.4 In April - BNP Paribas Real Estate Ireland/S&P Global
Ireland May Construction PMI 49.4 Vs. 48.4 In April - BNP Paribas Real Estate Ireland/S&P Global
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source http://www.mt5.com/forex_news/quickview/2213463/
Japan Producer Prices Sink 0.7% In May
Producer prices in Japan were down 0.7 percent on month in May, the Bank of Japan said on Monday.
That missed expectations for a decline of 0.2 percent and was down from the upwardly revised 0.3 percent increase in April (originally 0.2 percent).
On a yearly basis, producer prices climbed 5.1 percent - again shy of forecasts for a gain of 5.1 percent and down from the upwardly revised 5.9 percent increase in the previous month (originally 5.8 percent).
Export prices were down 0.2 percent on month and 1.8 percent on year, the bank said, while import prices slipped 0.1 percent on month and 9.6 percent on year.
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source http://www.mt5.com/forex_news/quickview/2213462/
*Japan Producer Prices -0.7% On Month, +5.1% On Year In May
Japan Producer Prices -0.7% On Month, +5.1% On Year In May
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source http://www.mt5.com/forex_news/quickview/2213461/
*New Zealand Electronic Card Retail Sales -1.7% On Month, +3.3% On Year In May
New Zealand Electronic Card Retail Sales -1.7% On Month, +3.3% On Year In May
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2213459/
Japan Producer Price Data Due On Monday
Japan will on Monday release May figures for producer prices, headlining a light day for Asia-Pacific economic activity.
Producer prices are expected to slip 0.2 percent on month and rise 5.5 percent on year after adding 0.2 percent on month and 5.8 percent on year in April.
New Zealand will provide May numbers for electronic card retail sales; in April, sales were up 0.7 percent on month and 6.4 percent on year.
Indonesia will see May results for its consumer confidence index; in April, the index score was 126.1.
Finally, the markets in Australia are closed on Monday in observance of the queen's birthday; they will re-open on Tuesday.
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source http://www.mt5.com/forex_news/quickview/2213458/
Sunday, 11 June 2023
Markets Week Ahead: S&P 500, Gold, USD; Fed, ECB, BoJ, Germany ZEW, UK & Australia Jobs, US CPI, China Retail Sales
Crude Oil Prices Look to US Data for Guidance as OPEC News Fades
Saturday, 10 June 2023
Gold Weekly Forecast: Gold (XAU/USD0 Prices Delicately Poised Heading into Blockbuster Week
U.S. Dollar Rebounds Modestly Ahead Of Next Week's Fed Meeting
After moving notably lower during trading on Thursday, the value of the U.S. dollar has shown a modest move back to the upside during trading on Friday.
The U.S. dollar index is rising 0.24 points or 0.2 percent to 103.58, bouncing off its lowest levels in over two weeks.
The buck is trading at 139.41 yen versus the 138.92 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0747 compared to yesterday's $1.0782.
The modest rebound by the dollar comes as traders continue to look ahead to the Federal Reserve's monetary policy meeting next week.
Thursday's report showing initial jobless claims jumped to their highest level since October 2021 last week added to the optimism about the Fed pausing its interest rates hikes, as the central bank has warned about the impact of labor market tightness.
Key inflation reports are also likely to be in the spotlight next week, as the data could have a significant impact on the outlook for interest rates.
CME Group's FedWatch Tool is currently indicating a 71.2 percent chance the Fed will leave rates unchanged next week but a 53.0 percent chance of another quarter point rate hike in July.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2213457/
Crude Oil Sees Further Downside Amid Ongoing Demand Concerns
After ending the previous session off its worst levels but still notably lower, the price of crude oil saw further downside during trading on Friday.
Crude for July delivery slumped $1.12 or 1.6 percent to $70.17 a barrel after tumbling $1.24 or 1.7 percent at $71.29 a barrel during Thursday's trading.
The continued weakness in the price of crude oil reflected ongoing concerns about the outlook for demand ahead of several key central bank meetings next week.
"Next week will be big for oil as we get a few major central bank rate decisions that should determine the short-term outlook for the global economy," said Edward Moya, senior market analyst at OANDA.
"China may cut rates, the Fed could deliver a hawkish skip, and the ECB is still playing catch up with their tightening cycles," he added. "Oil will eventually trade higher when stockpiles are at uncomfortably low levels."
The Federal Reserve's monetary policy meeting is likely to be in the spotlight, with the U.S. central bank expected to pause its recent interest rate increases.
Traders are likely to pay close attention to the Fed's accompanying statement as well as key inflation due next week for clues about the outlook for rates.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2213456/
Treasuries Give Back Ground Ahead Of Next Week's Fed Meeting
After turning higher over the course of the previous session, treasuries moved back to the downside during trading on Friday.
Bond prices regained ground after seeing early weakness but remained in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.1 basis points to 3.745 percent.
The pullback by treasuries came as traders continued to look ahead to the Federal Reserve's monetary policy meeting next week.
Yesterday's report showing initial jobless claims jumped to their highest level since October 2021 last week added to the optimism about the Fed pausing its interest rates hikes, as the central bank has warned about the impact of labor market tightness.
Key inflation reports are also likely to be in the spotlight next week, as the data could have a significant impact on the outlook for interest rates.
CME Group's FedWatch Tool is currently indicating a 72.4 percent chance the Fed will leave rates unchanged next week but a 52.0 percent chance of another quarter point rate hike in July.
Overall trading activity remained somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.
The inflation data and the Fed meeting are likely to be in focus early next week, while reports on retail sales, industrial production and consumer sentiment may attract attention later in the week.
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source http://www.mt5.com/forex_news/quickview/2213455/