Dollar Loses Ground After Powell Hints At Monetary Easing

Trading 29 fév 2020 Commentaire »

After briefly emerging into positive territory Friday morning after recent losses, the U.S. dollar retreated after the Federal Reserve Chair Jerome Powell said the bank will use their tools and act as appropriate to support the economy.

Powell said today that the coronavirus "poses evolving risks to economic activity."

"The fundamentals of the U.S. economy remain strong," Powell said in a statement released this afternoon. "However, the coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy."

The dollar index dropped to 97.96 in late afternoon trades and was last seen at 98.03, down nearly 0.5% from previous close.

Against the Euro, the dollar weakened to $1.1033, from Thursday's close of $1.1002. At its lowest in the session, the dollar was $1.1054, down more than 0.5%.

Against Pound Sterling, the dollar gained about 0.5%, as it strengthened to $1.2824.

The Japanese Yen strengthened to 107.99 a dollar, a long way up from 109.59 yen on Thursday.

The Aussie lost nearly 1% against the dollar at 0.6509. Against the loonie, the dollar was up at 1.3415, while against Swiss franc, it shed about 0.2% at 0.9657.

A report from the Commerce Department showed personal income climbed by 0.6% in January after inching up by a downwardly revised 0.1% in December. Economists had expected personal income to rise by 0.3% compared to the 0.2% uptick originally reported for the previous month.

Disposable personal income, or personal income less personal current taxes, also increased by 0.6% in January after edging up by 0.1% in December.

Meanwhile, the Commerce Department said personal spending rose by 0.2% in January after climbing by an upwardly revised 0.4% in December. Personal spending had been expected to rise by 0.3%, matching the increase originally reported for the previous month

Consumer sentiment in the U.S. improved by slightly more than initially estimated in the month of February, revised data from the University of Michigan revealed.

The consumer sentiment index for February was upwardly revised to 101.0 from the preliminary reading of 100.9. Economists had expected the index to be unrevised.

With the unexpected upward revision, the consumer sentiment index for February is a little further above the final January reading of 99.8.

Chicago-area business activity saw only a slight contraction in the month of February, according to a report released by MNI Indicators on Friday.

MNI Indicators said its Chicago business barometer jumped to 49.0 in February from 42.9 in January, although a reading below 50 still indicates a contraction in regional business activity. Economists had expected the index to rise to 45.9.


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

Treasuries Show Sharp Increase, Extending Recent Rally

Trading 29 fév 2020 Commentaire »

Treasuries showed another substantial move to the upside during trading on Friday, extending the unrelenting advance seen over the past few sessions.

Bond prices moved higher early in the session and saw further upside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, plunged by 17.2 basis points to 1.127 percent.

With the steep drop on the day, the ten-year yield closed lower for the seventh straight session, ending the day at a new record closing low.

Escalating concerns about the coronavirus outbreak continued to increase the appeal of the relative safety of bonds as the disease continues to spread across the globe.

New Zealand and Nigeria are among the countries that have recently confirmed their first coronavirus cases, with the World Health Organization warning that the fast-spreading disease could soon reach most, "if not all" countries around the world.

WHO director-general Tedros Adhanom Ghebreyesus recently said the organization has raised its assessment of the risk of spread and the risk of impact of the coronavirus to "very high."

In addition to the confirmed cases in new countries, the number of cases in countries like China, South Korea and Iran countries to rise.

Reports raising questions about the U.S response to the outbreak added to worries even as President Donald Trump continues to downplay the threat posed to the U.S.

Meanwhile, traders continued to ignore the latest U.S. economic reports, as the data does not reflect the latest developments on the coronavirus front.

News regarding the outbreak is likely to remain in the spotlight next week, potentially even overshadowing the usually closely watched monthly jobs report.


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

Oil Prices Crash Again On Virus Jitters, Settle At 14-month Low

Trading 29 fév 2020 Commentaire »

Crude oil prices fell sharply on Friday, extending recent losses, as growing concerns about energy demand due to the impact of the fast-spreading coronavirus on the global economy weighed on the commodity once again.

West Texas Intermediate Crude oil futures for April ended down $2.33, or about 5%, at $44.76 a barrel, the lowest settlement since end December 2018.

On Thursday, WTI crude oil futures ended down $1.64, or 3.4%, at $47.09 a barrel.

WTI crude oil futures lost nearly 16% this week, the biggest weekly decline in more than 12 years.

In the month of February 2020, oil futures lost about 13%.

Brent crude futures declined by about 3.2% to $50.75 a barrel, the lowest in about fourteen months.

OPEC and allies are scheduled to meet next week, March 5-6, to consider deepening production cuts to support prices. Currently, the group is producing 1.7 million barrels less per day.

According to the Production Supply Monthly report from the U.S. Energy Information Administration, U.S. oil output fell to 12.78 million barrels per day in December from 12.86 million barrels per day a month earlier.

But then, weekly oil reports from EIA since January this year, have showed a jump in crude production in the U.S, with output rising to a record 13 million barrels per day.

Meanwhile, in news about the coronavirus outbreak, New Zealand and Nigeria have confirmed their first coronavirus cases. The World Health Organization has warned that the fast-spreading disease could soon reach most, "if not all" countries around the world.

WHO director-general Tedros Adhanom Ghebreyesus recently said the organization has raised its assessment of the risk of spread and the risk of impact of the coronavirus to "very high."

In addition to the confirmed cases in new countries, the number of cases in countries like China, South Korea and Iran continue to rise.

According to reports, officials in the northern island of Hokkaido, Japan, declared a state of emergency because of the pace of new infections there. South Korean officials are said to be rushing to test thousands of members of a church at the center of that country's outbreak.


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

Gold Futures Tank, Record Worst Single-session Setback In Nearly 7 Years

Trading 29 fév 2020 Commentaire »

Gold prices plunged sharply on Friday, extending losses to a fourth session and recording the biggest single-session drop in terms of percentage, since June 2013.

With riskier assets such as equities nosediving amid growing concerns about the impact of the coronavirus on the global economy, traders appeared to be looking to cash their investments in the safe-haven commodity.

Stock markets across the globe have been witnessing heavy selling in recent sessions, with many of them recording their worst spells in more than a decade, as investors fear a global recession due to the impact of the rapidly spreading coronavirus on several economies.

Gold futures for April ended down $75.80, or about 4.6%, at $1,566.70 an ounce.

On Thursday, Gold futures for April settled lower by $0.60, or about 0.04%, at $1,642.50 an ounce.

Silver futures for May ended down $1.278 at $16.457 an ounce, while Copper futures for May settled at $2.5400 per pound, down $0.0315 from previous close.

A report from the Commerce Department showed personal income climbed by 0.6% in January after inching up by a downwardly revised 0.1% in December. Economists had expected personal income to rise by 0.3% compared to the 0.2% uptick originally reported for the previous month.

Disposable personal income, or personal income less personal current taxes, also increased by 0.6% in January after edging up by 0.1% in December.

Meanwhile, the Commerce Department said personal spending rose by 0.2% in January after climbing by an upwardly revised 0.4% in December. Personal spending had been expected to rise by 0.3%, matching the increase originally reported for the previous month

Consumer sentiment in the U.S. improved by slightly more than initially estimated in the month of February, revised data from the University of Michigan revealed.

The consumer sentiment index for February was upwardly revised to 101.0 from the preliminary reading of 100.9. Economists had expected the index to be unrevised.

With the unexpected upward revision, the consumer sentiment index for February is a little further above the final January reading of 99.8.

Chicago-area business activity saw only a slight contraction in the month of February, according to a report released by MNI Indicators on Friday.

MNI Indicators said its Chicago business barometer jumped to 49.0 in February from 42.9 in January, although a reading below 50 still indicates a contraction in regional business activity. Economists had expected the index to rise to 45.9.


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