Ten-Year Yield Jumps To Three-Month Closing High

After moving modestly higher over the two previous sessions, treasuries showed a significant move back to the downside during trading on Wednesday.

Bond prices came under pressure in morning trading and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, advanced 7.8 basis points to 3.994 percent.

With the increase on the day, the ten-year yield ended the session at its highest closing level in well over three months.

Treasuries moved to the downside following the release of a report from the Institute for Supply Management on U.S. manufacturing activity in the month of February.

While the ISM said its manufacturing PMI inched up to 47.7 in February from 47.4 in January, a reading below 50 still indicates a contraction. Economists had expected the index to edge up to 48.0.

The report also showed the prices index jumped to 51.3 in February from 44.5 in January, indicating raw materials prices increased after decreasing for four consecutive months.

"Overall, there is little sign that the recent improvements in manufacturing activity in other economies, particularly China, is being reflected in the U.S.," said Andrew Hunter, Deputy Chief U.S. Economist at Capital Economics. "The ISM index is also still loosely consistent, on past form, with negative GDP growth."

The notable rebound by the prices index added to recent concerns about inflation and the outlook for interest rates.

Trading on Thursday may be impacted by reaction to a report on weekly jobless claims, which could provide additional clues about tightness in the labor market.

The material has been provided by InstaForex Company - www.instaforex.com

source http://www.mt5.com/forex_news/quickview/2208042/

Hang Seng Breaks Higher on Solid China PMI Data. Will HSI Continue to Gain?

Hong Kong’s Hang Seng Index leapt higher after Chinese PMI readings were much better than expected amid hopes that the world’s second-largest economy might stoke global growth. Via DailyFX - Market News https://ift.tt/sRQASet

*South Korea Imports +3.6% On Year, Exports -7.5% In February

South Korea Imports +3.6% On Year, Exports -7.5% In February

The material has been provided by InstaForex Company - www.instaforex.com

source http://www.mt5.com/forex_news/quickview/2207955/

Australian Dollar Dunked After GDP Miss Provides Volatility. Will AUD/USD Go Lower?

The Australian Dollar dipped under 67 cents after fourth-quarter GDP data missed estimates but saw some upward revisions to previous quarters. Where to for AUD/USD? Via DailyFX - Market News https://ift.tt/sRQASet

*New Zealand Building Permits -1.5% On Month In January

New Zealand Building Permits -1.5% On Month In January

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source http://www.mt5.com/forex_news/quickview/2207950/

U.S. Dollar Moves Higher After Seeing Early Weakness

After seeing some weakness earlier in the day, the value of the U.S. dollar has moved higher over the course of trading on Tuesday.

The U.S. dollar index is rising 0.28 or 0.3 percent to 104.96 after falling as low as 104.42 in early morning trading.

Currently, the greenback is trading at 136.18 yen compared to the 136.19 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.0578 compared to yesterday's $1.0609.

The dollar may be continuing to benefit from its appeal as a safe haven amid ongoing concerns about the outlook for interest rates.

In the coming days, traders are likely to keep an eye on reports on weekly jobless claims and manufacturing and service sector activity.

The data could shed additional light on the strength of the economy and provide further clues about how much the Federal Reserve is likely to raise interest rates.

In U.S. economic news, MNI Indicators released a report showing Chicago-area business activity unexpectedly contracted at a slightly faster rate in the month of February.

MNI Indicators said its Chicago business barometer edged down to 43.6 in February from 44.3 in January, with a reading below 50 indicating a contraction. Economists had expected the Chicago business barometer to inch up to 45.0.

A separate report released by the Conference Board showed U.S. consumer confidence unexpectedly decreased for the second consecutive month in February.

The Conference Board said its consumer confidence index slid to 102.9 in February from a downwardly revised 106.0 in January.

The continued decrease surprised economists, who had expected the consumer confidence index to inch up to 108.5 from the 107.1 originally reported for the previous month.

"The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more," said Ataman Ozyildirim, Senior Director, Economics at The Conference Board.

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source http://www.mt5.com/forex_news/quickview/2207949/

Gold Climbs Further Off Recent Lows

Extending the rebound seen in the previous session, the price of gold saw further upside over the course of the trading day on Tuesday.

After rising $7.80 or 0.9 percent to $1,824.90 an ounce on Monday, gold for April delivery climbed $11.80 or 0.7 percent to $1,836.70 an ounce.

With the increase on the day, the price of gold continued to regain ground after hitting its lowest closing level in two months last Friday.

The precious metal benefited from early weakness in the value of the U.S. dollar, although the U.S. dollar index has inched higher over the course of the day.

In U.S. economic news, MNI Indicators released a report showing Chicago-area business activity unexpectedly contracted at a slightly faster rate in the month of February.

MNI Indicators said its Chicago business barometer edged down to 43.6 in February from 44.3 in January, with a reading below 50 indicating a contraction. Economists had expected the Chicago business barometer to inch up to 45.0.

A separate report released by the Conference Board showed U.S. consumer confidence unexpectedly decreased for the second consecutive month in February.

The Conference Board said its consumer confidence index slid to 102.9 in February from a downwardly revised 106.0 in January.

The continued decrease surprised economists, who had expected the consumer confidence index to inch up to 108.5 from the 107.1 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/2207946/