Treasury Announces Details Of Long-Term Securities Auctions

Trading 05 fév 2020 Commentaire »

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

The Treasury revealed it plans to sell $38 billion worth of three-year notes, $27 billion worth of ten-year notes and $19 billion worth of thirty-year bonds.

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

Last month, the Treasury sold $38 billion worth of three-year notes, $24 billion worth of ten-year notes and $16 billion worth of thirty-year bonds.

The three-year and ten-year note auctions attracted roughly average demand, while the thirty-year bond auction attracted much stronger than average demand.


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

*U.S. Crude Oil Inventories Rise By 3.4 Million Barrels In Week Ended 1/31

Trading 05 fév 2020 Commentaire »

U.S. Crude Oil Inventories Rise By 3.4 Million Barrels In Week Ended 1/31


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

U.S. Service Sector Activity Grows At Faster Rate In January

Trading 05 fév 2020 Commentaire »

Indicating a modestly faster rate of growth in U.S. service sector activity in the month of January, the Institute for Supply Management released a report on Wednesday showing an increase by its non-manufacturing index.

The ISM said its non-manufacturing index rose to 55.5 in January from a revised 54.9 in December, with a reading above 50 indicating service sector growth.

Economists had expected the non-manufacturing index to inch up to 55.1 from the 55.0 originally reported for the previous month.

The bigger than expected increase by the headline index came as the business activity index jumped to 60.9 in January from 57.0 in December.

The new orders index also rose to 56.2 in January from 55.3 in December, although the employment index fell to 53.1 from 54.8.

The report also said the prices index slid to 55.5 in January from 59.3 in December, indicating a slowdown in the pace of price growth.

Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee, said respondents "remain mostly positive about business conditions and the overall economy" but noted, "Respondents continue to have difficulty with labor resources."

On Monday, the ISM released a separate report showing U.S. manufacturing activity unexpectedly expanded for the first time in several months in January.

The ISM said its purchasing managers index surged up to 50.9 in January after slipping to a revised 47.8 in December, with a reading above 50 indicating growth in manufacturing activity.

Economists had expected the index to show a more modest increase to a reading of 48.5, which would have still indicated a contraction.

With the much bigger than expected increase, the index returned to expansion territory for the first time since July 2019.


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

*ISM U.S. Non-Manufacturing Index Rises To 55.5 In January

Trading 05 fév 2020 Commentaire »

ISM U.S. Non-Manufacturing Index Rises To 55.5 In January


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

Dollar Outperforms As U.S. Private Sector Hiring Beats Forecasts

Trading 05 fév 2020 Commentaire »

The U.S. dollar spiked up against its major counterparts in the European session on Wednesday, as ADP data showed much stronger than expected private sector job growth in January, supporting hopes that the Fed will hold policy steady in the coming months.

Data from payroll processor ADP showed that private sector employment soared by 291,000 jobs in January after jumping by a revised 199,000 jobs in December.

Economists had expected employment to increase by about 156,000 jobs compared to the addition of 202,000 jobs originally reported for the previous month.

The ADP data serves as a precursor to the U.S. nonfarm payrolls data, which will be released on Friday.

The report is expected to show employment climbed by about 161,000 jobs in January after jumping by 145,000 jobs in December.

The jobless rate is expected to hold at 3.5 percent.

In economic releases, data from the Commerce Department showed that the U.S. trade deficit widened in the month of December.

The Commerce Department said the trade deficit widened to $48.9 billion in December from a revised $43.7 billion in November.

The greenback showed mixed performance in the Asian session. While it held steady against the franc and the euro, it fell against the yen. Versus the pound, it rose.

The greenback advanced to a 6-day high of 0.9737 against the franc and near a 2-week high of 109.81 versus the yen, from its early lows of 0.9678 and 109.30, respectively. On the upside, 0.99 and 111.00 are possibly seen as the next resistance for the greenback against the franc and the yen, respectively.

The greenback rose to 1.1008 against the euro, its biggest since January 30. If the greenback rises further, 1.09 is seen as its next resistance level.

Data from Eurostat showed that Eurozone retail sales declined more than expected in December on weak food and non-food product sales.

Retail turnover declined 1.6 percent in December from November, when it was up 0.8 percent. Economists had forecast a 1.1 percent drop.

After falling to a 2-day low of 1.3070 at 4:30 am ET, the greenback appreciated to 1.2992 against the pound after the data. The next possible resistance for the greenback is seen around the 1.27 mark.

Survey results from IHS Markit and Chartered Institute of Procurement & Supply showed that the UK service sector rebounded at a faster-than-estimated pace in January driven by rising client demand after general election.

The services Purchasing Managers' Index rose to 53.9 in January from 50.0 in December. The reading exceeded the flash estimate of 52.9.

The greenback bounced off to 0.6477 against the kiwi, from a 6-day low of 0.6503 seen at 4:15 am ET. Against the loonie, the greenback recovered to 1.3290, from an early 2-day low of 1.3263. The greenback is likely to target resistance around 0.63 against the kiwi and 1.35 against the loonie.

In contrast, the greenback held steady against the aussie, after dropping to a weekly low of 0.6774 at 4:30 am ET. The pair was worth 0.6739 at yesterday's close.

The ISM non-manufacturing composite index and Markit's U.S. final services PMI for January are set for release shortly.


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

ECB’s Lagarde Says Coronavirus Added New Layer Of Uncertainty

Trading 05 fév 2020 Commentaire »

European Central Bank President Christine Lagarde said on Wednesday that the novel coronavirus, or 2019-nCov, outbreak in China is a new risk to the European economic outlook.

"While the threat of a trade war between the United States and China appears to have receded, the coronavirus adds a new layer of uncertainty," she said in a speech in Paris.

The coronavirus outbreak that started in the Chinese city of Wuhan has claimed more than 500 lives and has infected over 24,000 in the country itself. Several Chinese cities are under lockdown.

The World Health Organisation has declared the coronavirus outbreak a "public health emergency of international concern".

Several countries have warned their citizens against travel to China and those returning from the country are screened thoroughly.

The outbreak has impacted several businesses, both domestic and the foreign ones operating in China. Firms have been forced to scale down their Chinese operations and to ask staff to stay at home or work from home.

The ECB is seeing the coronavirus outbreak as a global risk, similar to trade and geopolitical ones.

"In the face of these uncertainties, the ECB's forward guidance on interest rates and asset purchases acts as an effective automatic stabiliser," Lagarde added.

The former IMF chief reiterated that climate change will be a key part of the ongoing review of ECB strategy that is expected to be concluded by the end of this year.

She pointed out the need to fill the knowledge gap and to properly reflect climate risks.

"What we do know so far suggests that climate change will affect monetary policy," Lagarde said.

"Bringing climate change more fundamentally into our analysis and strategy is not "mission creep": climate change is also a price stability risk," she added.

The ECB has already started to to promote climate risk disclosure across its range of tasks, Lagarde said.


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

U.S. Trade Deficit Widens In December Amid Jump In Imports

Trading 05 fév 2020 Commentaire »

With a jump in the value of imports outpacing an increase in the value of exports, the Commerce Department released a report on Wednesday showing the U.S. trade deficit widened in the month of December.

The Commerce Department said the trade deficit widened to $48.9 billion in December from a revised $43.7 billion in November.

Economists had expected the deficit to widen to $48.2 billion from the $43.1 billion originally reported for the previous month.

The wider than expected deficit came as the value of imports surged up by 2.7 percent to $258.5 billion in December after falling by 0.9 percent to $251.8 billion in November.

"The rebound in imports partly reflected the unwinding of disruptions in November to Canadian rail and pipeline shipments," said Paul Ashworth, Chief U.S. Economist at Capital Economics.

Imports of industrial supplies and materials saw substantial growth, with imports of crude oil and non-monetary gold showing notable increases.

Meanwhile, the report said the value of exports climbed by 0.8 percent to $209.6 billion in December after rising by 0.6 percent to $206.8 billion in November.

A significant increase in exports of crude oil was partly offset by a slump in exports of automotive vehicles, parts, and engines.

The Commerce Department also said the goods deficit widened to $69.7 billion in December from $64.6 billion in November, while the services surplus narrowed to $20.8 billion from $21.0 billion.

Ashworth expects net trade to be close to neutral in the first quarter after making a big contribution to GDP growth in the fourth quarter but noted a lot depends on how the situation in China develops.

"If the closure of factories persists for an extended period then that could hit US imports toward the end of the first quarter," Ashworth said.

He added, "There will be some offset, with exports likely to be a little weaker too but, given the still unbalanced state of the US-China bilateral trade relationship, the coronavirus crisis is more likely to result in a narrowing rather than widening of the overall trade deficit."


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

U.S. Private Sector Employment Soars Amid Mild Winter Weather

Trading 05 fév 2020 Commentaire »

A report released by payroll processor ADP on Wednesday showed much stronger than expected private sector job growth in the month of January.

ADP said private sector employment soared by 291,000 jobs in January after jumping by a revised 199,000 jobs in December.

Economists had expected employment to increase by about 156,000 jobs compared to the addition of 202,000 jobs originally reported for the previous month.

"Mild winter weather provided a significant boost to the January employment gain," said Mark Zandi, chief economist of Moody's Analytics.

He added, "The leisure and hospitality and construction industries in particular experienced an outsized increase in jobs."

The report said employment in the service-providing sector surged up by 237,000 jobs, partly reflecting a jump of 96,000 jobs in the leisure and hospitality industry.

Employment in the good-producing sector also rose by 54,000 jobs, as employment in the construction industry climbed by 47,000 jobs.

ADP said employment at mid-sized businesses shot up by 128,000 jobs, while small businesses added 94,000 jobs and employment at large businesses increased by 69,000 jobs.

"Job creation was strong among midsized companies, though small companies enjoyed the strongest performance in the last 18 months," said Ahu Yildirmaz, vice president and cohead of the ADP Research Institute.

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 about 160,000 jobs in January after rising by 145,000 jobs in December, while the unemployment rate is expected to hold at 3.5 percent.


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

Poland CB Holds Record Low Rate Unchanged Again

Trading 05 fév 2020 Commentaire »

Poland's central bank left its key interest rate unchanged at a record low on Wednesday.

The Monetary Policy Council decided to hold the key reference rate at a record low 1.50 percent, the National Bank of Poland said in a statement. The decision was in line with economists' expectations.

The previous change in the reference rate was a half-basis point cut in March 2015.

The lombard rate was kept at 2.50 percent and the deposit rate at 0.50 percent. The rediscount rate was held steady at 1.75 percent.


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

*ECB's Lagarde: Forward Guidance, Asset Purchases Acts As Automatic Stabiliser

Trading 05 fév 2020 Commentaire »

ECB's Lagarde: Forward Guidance, Asset Purchases Acts As Automatic Stabiliser


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