Dollar Stays Subdued Despite Upbeat Economic Data, Trade Talks Hopes

Trading 05 sept 2019 Commentaire »

The U.S. dollar index stayed below the unchanged line on Thursday despite paring early losses after data showed stronger than expected private sector job growth, a jump in factory orders and an acceleration in service sector activity.

Renewed optimism about trade talks after the U.S. and Chinese officials decided to hold Ministerial level talks early October contributed as well to the dollar's rise from lower levels.

The dollar index, which dropped to 98.09 early on in the session, recovered well and was last seen hovering around 98.40, down 0.05% from previous close.

Against the euro, the dollar recovered to 1.1018, from a low of 1.1086.

The pound sterling was up 0.6% with a unit of sterling fetching $1.2329, compared to $1.2256.

The Japanese currency was down 0.55% at 106.98 yen a dollar. It had settled at 106.40 a dollar late Wednesday.

The Aussie was up 0.26% against the dollar at 0.6816.

The dollar was up marginally against the loonie at 1.3230, while it gained nearly 0.6% against Swiss franc, at 0.9864.

In economic news, data from payroll process ADP showed private sector employment surged up by 195,000 jobs in August after climbing by a downwardly revised 142,000 jobs in July. Economists had expected employment to increase by about 149,000 jobs compared to the addition of 156,000 jobs originally reported for the previous month.

A report from the Institute for Supply Management showed a notable acceleration in the pace of growth in U.S. service sector activity in the month of August. The ISM's non-manufacturing index climbed to 56.4 in August, after falling to 53.7 in July. Economists had expected the index to inch up to 54.0.

Data released by the Commerce Department said factory orders surged up by 1.4% in July, after climbing by a downwardly revised 0.5% in June. Economists had expected factory orders to jump by 1% compared to the 0.6% increase originally reported for the previous month.

Meanwhile, the Labor Department's data showed a slight uptick in first-time claims for U.S. unemployment benefits in the week ended August 31st.


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Dollar Stays Subdued Despite Upbeat Economic Data, Trade Talks Hopes

Trading 05 sept 2019 Commentaire »

The U.S. dollar index stayed below the unchanged line on Thursday despite paring early losses after data showed stronger than expected private sector job growth, a jump in factory orders and an acceleration in service sector activity.

Renewed optimism about trade talks after the U.S. and Chinese officials decided to hold Ministerial level talks early October contributed as well to the dollar's rise from lower levels.

The dollar index, which dropped to 98.09 early on in the session, recovered well and was last seen hovering around 98.40, down 0.05% from previous close.

Against the euro, the dollar recovered to 1.1018, from a low of 1.1086.

The pound sterling was up 0.6% with a unit of sterling fetching $1.2329, compared to $1.2256.

The Japanese currency was down 0.55% at 106.98 yen a dollar. It had settled at 106.40 a dollar late Wednesday.

The Aussie was up 0.26% against the dollar at 0.6816.

The dollar was up marginally against the loonie at 1.3230, while it gained nearly 0.6% against Swiss franc, at 0.9864.

In economic news, data from payroll process ADP showed private sector employment surged up by 195,000 jobs in August after climbing by a downwardly revised 142,000 jobs in July. Economists had expected employment to increase by about 149,000 jobs compared to the addition of 156,000 jobs originally reported for the previous month.

A report from the Institute for Supply Management showed a notable acceleration in the pace of growth in U.S. service sector activity in the month of August. The ISM's non-manufacturing index climbed to 56.4 in August, after falling to 53.7 in July. Economists had expected the index to inch up to 54.0.

Data released by the Commerce Department said factory orders surged up by 1.4% in July, after climbing by a downwardly revised 0.5% in June. Economists had expected factory orders to jump by 1% compared to the 0.6% increase originally reported for the previous month.

Meanwhile, the Labor Department's data showed a slight uptick in first-time claims for U.S. unemployment benefits in the week ended August 31st.


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

Crude Oil Futures Give Up Early Gains, Settle Flat

Trading 05 sept 2019 Commentaire »

Crude oil futures surrendered their entire early gains and settled flat on Thursday.

Higher production in August by OPEC and Russia, and concerns about near-term energy demand outlook due to global economic slowdown appeared to have weighed on crude oil prices.

Tensions in the Middle East, recent data showing a drop in U.S. crude stockpiles and trade talks optimism pushed crude oil prices up sharply early on in the session, but prices retreated as the session progressed.

West Texas Intermediate Crude oil futures for October ended up $0.04 or about 0.07%, at $56.30 a barrel.

Data released by the Energy Information Administration said crude inventories in the U.S. fell by 4.8 million barrels in the week ended August 30, nearly two times the expected fall.

On Wednesday evening, the American Petroleum Institute estimated a surprise crude oil inventory build of 400,000 barrels last week, compared to analyst expectations of a 3.50-million barrel draw.

On the trade front, the United States and China have agreed to hold trade talks in Washington early next month and take actions to create favorable conditions.

Following telephone consultations between Chinese Vice Premier Liu He and U.S. Treasury Secretary Steve Mnuchin, China's Commerce Ministry said a new round of face-to-face trade talks will be held in Washington in early October.


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

Crude Oil Futures Give Up Early Gains, Settle Flat

Trading 05 sept 2019 Commentaire »

Crude oil futures surrendered their entire early gains and settled flat on Thursday.

Higher production in August by OPEC and Russia, and concerns about near-term energy demand outlook due to global economic slowdown appeared to have weighed on crude oil prices.

Tensions in the Middle East, recent data showing a drop in U.S. crude stockpiles and trade talks optimism pushed crude oil prices up sharply early on in the session, but prices retreated as the session progressed.

West Texas Intermediate Crude oil futures for October ended up $0.04 or about 0.07%, at $56.30 a barrel.

Data released by the Energy Information Administration said crude inventories in the U.S. fell by 4.8 million barrels in the week ended August 30, nearly two times the expected fall.

On Wednesday evening, the American Petroleum Institute estimated a surprise crude oil inventory build of 400,000 barrels last week, compared to analyst expectations of a 3.50-million barrel draw.

On the trade front, the United States and China have agreed to hold trade talks in Washington early next month and take actions to create favorable conditions.

Following telephone consultations between Chinese Vice Premier Liu He and U.S. Treasury Secretary Steve Mnuchin, China's Commerce Ministry said a new round of face-to-face trade talks will be held in Washington in early October.


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

Gold Futures Tumble On Trade Talk Hopes, Strong Economic Data

Trading 05 sept 2019 Commentaire »

Gold prices plunged sharply on Thursday, recording their biggest single session loss in nearly 3 years, as easing worries about political tensions, optimism about U.S.- China trade talks and some upbeat economic data prompted investors to seek riskier assets such as equities.

Gold futures for December ended down $34.90, or 2.2%, at $1,525.50 an ounce, the biggest single-session loss in terms of dollars, since November 11, 2016.

In percentage terms, gold futures' loss today was the biggest in nearly three months.

Silver futures for December ended down $0.740, or 3.8%, at $18.807 an ounce, a day after closing at a three-year high.

Copper futures for December settled at $2.6420 per pound, gaining $0.0470 for the session.

In economic news, private sector employment in the U.S. jumped by much more than expected in the month of August, according to a report released by payroll processor ADP on Thursday.

The report said private sector employment surged up by 195,000 jobs in August after climbing by a downwardly revised 142,000 jobs in July. Economists had expected employment to increase by about 149,000 jobs compared to the addition of 156,000 jobs originally reported for the previous month.

A report from the Institute for Supply Management showed a notable acceleration in the pace of growth in U.S. service sector activity in the month of August. The ISM's non-manufacturing index climbed to 56.4 in August, after falling to 53.7 in July. Economists had expected the index to inch up to 54.0.

Data released by the Commerce Department said factory orders surged up by 1.4% in July, after climbing by a downwardly revised 0.5% in June. Economists had expected factory orders to jump by 1% compared to the 0.6% increase originally reported for the previous month.

The Labor Department's data showed a slight uptick in first-time claims for U.S. unemployment benefits in the week ended August 31st.

On the trade front, the U.S. and China are reportedly planning to hold high level talks in early October.

"Both sides agreed they should work together and take practical actions to create favorable conditions for the negotiations," China's Commerce Ministry is reported to have said.


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

Gold Futures Tumble On Trade Talk Hopes, Strong Economic Data

Trading 05 sept 2019 Commentaire »

Gold prices plunged sharply on Thursday, recording their biggest single session loss in nearly 3 years, as easing worries about political tensions, optimism about U.S.- China trade talks and some upbeat economic data prompted investors to seek riskier assets such as equities.

Gold futures for December ended down $34.90, or 2.2%, at $1,525.50 an ounce, the biggest single-session loss in terms of dollars, since November 11, 2016.

In percentage terms, gold futures' loss today was the biggest in nearly three months.

Silver futures for December ended down $0.740, or 3.8%, at $18.807 an ounce, a day after closing at a three-year high.

Copper futures for December settled at $2.6420 per pound, gaining $0.0470 for the session.

In economic news, private sector employment in the U.S. jumped by much more than expected in the month of August, according to a report released by payroll processor ADP on Thursday.

The report said private sector employment surged up by 195,000 jobs in August after climbing by a downwardly revised 142,000 jobs in July. Economists had expected employment to increase by about 149,000 jobs compared to the addition of 156,000 jobs originally reported for the previous month.

A report from the Institute for Supply Management showed a notable acceleration in the pace of growth in U.S. service sector activity in the month of August. The ISM's non-manufacturing index climbed to 56.4 in August, after falling to 53.7 in July. Economists had expected the index to inch up to 54.0.

Data released by the Commerce Department said factory orders surged up by 1.4% in July, after climbing by a downwardly revised 0.5% in June. Economists had expected factory orders to jump by 1% compared to the 0.6% increase originally reported for the previous month.

The Labor Department's data showed a slight uptick in first-time claims for U.S. unemployment benefits in the week ended August 31st.

On the trade front, the U.S. and China are reportedly planning to hold high level talks in early October.

"Both sides agreed they should work together and take practical actions to create favorable conditions for the negotiations," China's Commerce Ministry is reported to have said.


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

Treasuries Move Sharply Lower On Trade Talks News, Upbeat Data

Trading 05 sept 2019 Commentaire »

After ending the previous session roughly flat, treasuries showed a significant move to the downside during trading on Thursday.

Bond prices moved sharply lower early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped by 10.6 basis points to 1.565 percent.

The sell-off by treasuries came on the heels of news that the U.S. and China plan to hold high level trade talks in early October.

A statement from China's Commerce Ministry said both sides agreed to the new round of talks during a phone call between Chinese Vice Premier and chief trade negotiator Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

"Both sides agreed they should work together and take practical actions to create favorable conditions for the negotiations," China's Commerce Ministry said, according to a CNBC translation.

A spokesperson for the U.S. Trade Representative's office confirmed the phone call and said the U.S. and China agreed to hold meetings "in the coming weeks."

U.S. and Chinese officials will purportedly hold deputy-level talks later this month in preparation for the meeting in October.

Treasuries saw further downside after a report from payroll processor ADP showed stronger than expected private sector job growth in August.

The report said private sector employment surged up by 195,000 jobs in August after climbing by a downwardly revised 142,000 jobs in July.

Economists had expected employment to increase by about 149,000 jobs compared to the addition of 156,000 jobs originally reported for the previous month.

"Businesses are holding firm on their payrolls despite the slowing economy," said Mark Zandi, chief economist of Moody's Analytics. "Hiring has moderated, but layoffs remain low. As long as this continues recession will remain at bay."

On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.

Employment is expected to increase by 158,000 jobs in August after climbing by 164,000 jobs in July, while the unemployment rate is expected to hold at 3.7 percent.

A separate report from the Institute for Supply Management also showed a notable acceleration in the pace of growth in U.S. service sector activity in the month of August.

The ISM said its non-manufacturing index climbed to 56.4 in August after falling to 53.7 in July, with a reading above 50 indicating growth in service sector activity. Economists had expected the index to inch up to 54.0.

The bigger than expected increase by the non-manufacturing index came after it dropped to its lowest level since August of 2016 in the previous month.

While the monthly jobs report is likely to be in the spotlight on Friday, traders are also likely to keep an eye on remarks by Federal Reserve Chairman Jerome Powell.


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

Treasuries Move Sharply Lower On Trade Talks News, Upbeat Data

Trading 05 sept 2019 Commentaire »

After ending the previous session roughly flat, treasuries showed a significant move to the downside during trading on Thursday.

Bond prices moved sharply lower early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped by 10.6 basis points to 1.565 percent.

The sell-off by treasuries came on the heels of news that the U.S. and China plan to hold high level trade talks in early October.

A statement from China's Commerce Ministry said both sides agreed to the new round of talks during a phone call between Chinese Vice Premier and chief trade negotiator Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

"Both sides agreed they should work together and take practical actions to create favorable conditions for the negotiations," China's Commerce Ministry said, according to a CNBC translation.

A spokesperson for the U.S. Trade Representative's office confirmed the phone call and said the U.S. and China agreed to hold meetings "in the coming weeks."

U.S. and Chinese officials will purportedly hold deputy-level talks later this month in preparation for the meeting in October.

Treasuries saw further downside after a report from payroll processor ADP showed stronger than expected private sector job growth in August.

The report said private sector employment surged up by 195,000 jobs in August after climbing by a downwardly revised 142,000 jobs in July.

Economists had expected employment to increase by about 149,000 jobs compared to the addition of 156,000 jobs originally reported for the previous month.

"Businesses are holding firm on their payrolls despite the slowing economy," said Mark Zandi, chief economist of Moody's Analytics. "Hiring has moderated, but layoffs remain low. As long as this continues recession will remain at bay."

On Friday, the Labor Department is scheduled to release its more closely watched monthly jobs report, which includes both public and private sector jobs.

Employment is expected to increase by 158,000 jobs in August after climbing by 164,000 jobs in July, while the unemployment rate is expected to hold at 3.7 percent.

A separate report from the Institute for Supply Management also showed a notable acceleration in the pace of growth in U.S. service sector activity in the month of August.

The ISM said its non-manufacturing index climbed to 56.4 in August after falling to 53.7 in July, with a reading above 50 indicating growth in service sector activity. Economists had expected the index to inch up to 54.0.

The bigger than expected increase by the non-manufacturing index came after it dropped to its lowest level since August of 2016 in the previous month.

While the monthly jobs report is likely to be in the spotlight on Friday, traders are also likely to keep an eye on remarks by Federal Reserve Chairman Jerome Powell.


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

Treasury Announces Details Of Long-Term Securities Auctions

Trading 05 sept 2019 Commentaire »

The Treasury Department announced the details of this month's auctions of three-year and ten-year notes and thirty-year bonds on Thursday.

The Treasury said it plans to sell $38 billion worth of three-year notes, $24 billion worth of ten-year notes and $16 billion worth of thirty-year bonds.

The results of the three-year and ten-year note auctions will be announced next Tuesday and Wednesday, respectively while the results of the thirty-year bond auction will be announced next Thursday.

Last month, the three-year and ten-year note auctions attracted below average demand, but the thirty-year bond auction attracted average demand.


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

Treasury Announces Details Of Long-Term Securities Auctions

Trading 05 sept 2019 Commentaire »

The Treasury Department announced the details of this month's auctions of three-year and ten-year notes and thirty-year bonds on Thursday.

The Treasury said it plans to sell $38 billion worth of three-year notes, $24 billion worth of ten-year notes and $16 billion worth of thirty-year bonds.

The results of the three-year and ten-year note auctions will be announced next Tuesday and Wednesday, respectively while the results of the thirty-year bond auction will be announced next Thursday.

Last month, the three-year and ten-year note auctions attracted below average demand, but the thirty-year bond auction attracted average demand.


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