Dollar Moves Sideways Against Peers

Trading 15 fév 2020 Commentaire »

The U.S. dollar stayed quite sluggish against most of its rivals on Friday, amid a slew of economic data.

Data released by the Commerce Department showed retail sales rose by 0.3% in January after edging up by a downwardly revised 0.2% in December. Economists had expected retail sales to climb by 0.3%, matching the increase originally reported for the previous month.

Excluding sales by motor vehicles and parts dealers, retail sales still rose by 0.3% in January after climbing by 0.6% in December. Ex-auto sales were also expected to increase by 0.3%.

A report released by the Labor Department showed U.S. import prices were unchanged in January after rising by a downwardly revised 0.2% in December. Economists had expected import prices to dip by 0.2% compared to the 0.3% increase originally reported for the previous month.

Meanwhile, the report said export prices climbed by 0.7% in January after slipping by 0.2% in December. Export prices had been expected to edge down by 0.1%.

A report from the University of Michigan showed the consumer sentiment index rose to 100.9 in February from the final January reading of 99.8. The uptick surprised economists, who had expected the index to edge down to 99.5.

Markets were also tracking news about the coronavirus infection. A report from China's National Health Commission showed an additional 121 deaths in China and nearly 5,100 new cases of the virus across the mainland on Thursday.

Till Thursday, the virus has killed about 1,380 people in mainland China, according to the commission's report.

The Dollar Index, which declined to 99.00 after staying above the flat line early on in the session, recoverd subsequently, and despite suffering a mild setback again, edged up to 99.14 around late afternoon.

Against the Euro, the dollar was up marginally at $1.0836, after having weakened to $1.0863 earlier in the day. The euro area economy grew as initially estimated in the fourth quarter, flash estimates from Eurostat revealed Friday. Gross domestic product in the 19-nation bloc grew only 0.1% sequentially, following third quarter's 0.3% expansion. The expansion was the slowest growth since early 2013.

On a yearly basis, economic growth eased to 0.9% from 1.2% in the third quarter. The fourth quarter growth was revised down from 1%.

Against Pound Sterling, the dollar was down at $1.3049, after exhibiting strength early on in the session, when it rose to $1.3002.

The Japanese Yen strengthened to 109.76 a dollar, from around 109.90 early on in the session. Japan's tertiary industry activity declined unexpectedly in December, data from the Ministry of Economy, Trade and Industry showed.

The tertiary industry activity index fell 0.2% month-on-month in December. Economists had forecast a 0.1% rise.

The dollar was weak against the loonie at 1.3251. Against Swiss franc, it gained about 0.28% at 0.9820. Against the Aussie, it was up marginally with the AUD-USD pair at 0.6713.


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Treasuries Move To The Upside Following Mixed Data

Trading 15 fév 2020 Commentaire »

Treasuries saw some strength during trading on Friday, extending the modest upward move seen in the previous session.

Bond prices moved to the upside early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.9 basis points to 1.588 percent.

The strength among treasuries came a Commerce Department report showed U.S. retail sales rose in line with estimates in January, but closely watched core retail sales came in unchanged.

The Commerce Department said retail sales rose by 0.3 percent in January after edging up by a downwardly revised 0.2 percent in December.

Economists had expected retail sales to climb by 0.3 percent, matching the increase originally reported for the previous month.

However, the report said closely watched core retail sales, which exclude autos, gasoline, building materials and food services, were unchanged in January after rising by a downwardly revised 0.2 percent.

Core retail sales were expected to rise by 0.3 percent compared to the 0.5 percent increase originally reported for the previous month.

"After a rare contraction in the fourth quarter, the 3m/3m annualized growth rate of control group sales slipped further to -0.7% in January," said Andrew Hunter, Senior U.S. Economist at Capital Economics,

He added, "That means there are now clear downside risks to our initial forecast that real consumption growth will rebound back above 2% annualized in the first quarter."

The Federal Reserve also released a report showing a continued decrease in U.S. industrial production in the month of January, as unseasonably warm weather led to another steep drop in utilities output.

The Fed said industrial production fell by 0.3 percent in January following a revised decrease of 0.4 percent in December. Economists had expected industrial production to dip by 0.2 percent.

Manufacturing output edged down by 0.1 percent in January after inching up by 0.1 percent in December, as Boeing (BA) significantly slowed production of civilian aircraft amid the grounding of its troubled 737 Max.

Meanwhile, the University of Michigan released a report showing an unexpected increase in U.S. consumer sentiment in the month of February.

Preliminary data showed the consumer sentiment index rose to 100.9 percent in February from the final January reading of 99.8. The uptick surprised economists, who had expected the index to edge down to 99.5.

Following the long holiday weekend, next week's trading may be impacted by reaction to reports on producer prices, housing starts, and existing home sales.

The Federal Reserve is also scheduled to release the minutes of its latest monetary policy meeting, which may shed additional light on the outlook for interest rates.


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Oil Futures Extend Gains To 4th Session, Rise 3.3% In Week

Trading 15 fév 2020 Commentaire »

Crude oil prices surged higher on Friday with traders creating fresh long positions amid hopes the coronavirus impact may not weigh on the global economy for long.

Hopes that the Chinese central bank will step up stimulus to boost growth further aided sentiment and pushed up oil prices.

West Texas Intermediate crude oil futures ended up $0.63, or about 1.2%, at $52.05 a barrel.

On Thursday, WTI crude oil futures gained $0.25 to settle at $$51.42 a barrel, after having surged up $1.23 to $51.17 a barrel a session earlier.

On Wednesday, WTI Crude oil futures for March ended up $1.23, or about 2.5%, at $51.17 a barrel.

Brent crude oil futures gained $0.89, or 1.6%, at $57.23 a barrel.

For the week, WTI crude oil futures gained about 3.3%, recording their first weekly gain since early January.

The Organization of the Petroleum Exporting Countries and allied producers are reportedly considering deepening production cuts. Russia, which seemed reluctant to agree on deepening output cuts, is now reported to be considering reducing output due to increasing inventory levels.

According to a report released by Baker Hughes this afternoon, U.S. energy firms added two oil rigs this week. With this, the total rig count has risen to 678.


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Gold Futures Settle Higher Again On Safe-haven Demand

Trading 15 fév 2020 Commentaire »

Gold futures ended higher on Friday, extending gains from previous session, as continued worries about the coronavirus and its impact on the global economy prompted traders to seek the safe haven asset.

A report from China's National Health Commission showed an additional 121 deaths in China and nearly 5,100 new cases of the virus across the mainland on Thursday.

Till Thursday, the virus has killed about 1,380 people in mainland China, according to the commission's report.

The dollar was quite sluggish against most of its rivals. The dollar index was little changed at 99.08 around mid afternoon.

Gold futures for April ended up $7.60, or about 0.5%, at $1,586.40 an ounce.

On Thursday, gold futures for April ended up $7.20, or 0.5%, at $1,578.80 an ounce.

Silver futures for March ended up $0.115 at $17.734 an ounce, while Copper futures for March settled at $2.6130 per pound, gaining $0.0130.

In U.S. economic news, a report from the Commerce Department said retail sales rose by 0.3% in January after edging up by a downwardly revised 0.2% in December. Economists had expected retail sales to climb by 0.3%, matching the increase originally reported for the previous month.

Excluding sales by motor vehicles and parts dealers, retail sales still rose by 0.3% in January after climbing by 0.6% in December. Ex-auto sales were also expected to increase by 0.3%.

A report released by the Labor Department showed U.S. import prices were unchanged in January after rising by a downwardly revised 0.2% in December. Economists had expected import prices to dip by 0.2% compared to the 0.3% increase originally reported for the previous month.

Meanwhile, the report said export prices climbed by 0.7% in January after slipping by 0.2% in December. Export prices had been expected to edge down by 0.1%.

A report from the University of Michigan showed the consumer sentiment index rose to 100.9 in February from the final January reading of 99.8. The uptick surprised economists, who had expected the index to edge down to 99.5.


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