Treasury Announces Details Of Long-Term Securities Auctions

Trading 05 mar 2020 Commentaire »

The Treasury Department revealed 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 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, $27 billion worth of ten-year notes and $19 billion worth of thirty-year bonds, with the auctions all attracting above average demand.


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U.S. Factory Orders Pull Back More Than Expected In January

Trading 05 mar 2020 Commentaire »

New orders for U.S. manufactured goods pulled back by much more than expected in the month of January, according to a report released by the Commerce Department on Thursday.

The Commerce Department said factory orders slid by 0.5 percent in January after surging up by 1.9 percent in December. Economists had expected factory orders to edge down by 0.1 percent.

The report said orders for durable goods dipped by 0.2 percent in January after spiking by 2.8 percent in December, with the drop in durable goods orders unchanged from the estimate reported last week.

New orders for non-durable goods also slumped by 0.8 percent in January after jumping by 1.1 percent in the previous month.

The Commerce Department said shipments of manufactured goods also fell following three consecutive monthly increases, decreasing by 0.5 percent in January after climbing by 0.5 percent in December.

Inventories of manufactured goods also edged down by 0.1 percent in January after rising by 0.4 percent in the previous month.

With inventories and shipments both falling, the inventories-to-shipments ratio in January was unchanged from December at 1.40.


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*U.S. Factory Orders Drop 0.5% In January

Trading 05 mar 2020 Commentaire »

U.S. Factory Orders Drop 0.5% In January


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Dollar Falls On Expectations For More Fed Rate Cuts

Trading 05 mar 2020 Commentaire »

The U.S. dollar came under pressure against its major counterparts in the European session on Thursday, as markets are pricing in another rate cut from the Fed at the March meeting after its surprise reduction this week.

The Fed is expected to deliver another 25 bps cut at its March 17-18 meeting to counter coronavirus impact.

The central bank has already implemented an emergency 50-basis-point cut on Tuesday, taking the federal-funds rate to between 1 percent and 1.25 percent.

Rise in coronavirus infections in the U.S. and the declaration of a medical state of emergency in the state of California dampened sentiment.

In economic news, the Labor Department released a report showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended February 29th.

The report said initial jobless claims edged down to 216,000, a decrease of 3,000 from the previous week's unrevised level of 219,000. Economists had expected jobless claims to slip to 215,000.

Meanwhile, revised data released by the Labor Department showed U.S. labor productivity increased by less than initially estimated in the fourth quarter of 2019.

The report said labor productivity climbed by 1.2 percent in the fourth quarter compared to the previously reported 1.4 percent jump. Economists had expected the pace of productivity growth to be unrevised from the initial estimate.

The Labor Department also said unit labor costs rose by 0.9 percent in the fourth quarter, reflecting a notable downward revision from the originally reported 1.4 percent spike. The increase in labor costs was also expected to be unrevised.

On Friday, the Labor Department is scheduled to release its more closely watched employment report for the month of February.

Employment is expected to increase by about 175,000 jobs in February after jumping by 225,000 jobs in January, while the unemployment rate is expected to hold at 3.6 percent.

The greenback dropped to a 2-day low of 1.1200 against the euro, from Wednesday's closing value of 1.1134. The greenback is likely to challenge support around the 1.14 mark.

Survey data from IHS Markit showed that Germany's construction sector grew for a sixth consecutive month in February to its strongest level in over two years, led by a robust residential building activity and an improving commercial activity sector.

The IHS Markit Germany Construction Purchasing Managers' Index, or PMI, rose to 55.8 from 54.9 in January. The latest reading was the best since January 2018.

The USD/CHF pair hit 0.9510, a 2-year low. The greenback is seen finding support around the 0.94 area.

The greenback depreciated to a 5-month low of 106.80 against the yen, from a 2-day high of 107.74 seen at 6:45 pm ET. Versus the pound, it dropped to a weekly low of 1.2936. Further downside, the support is possibly located near 104.00 against the yen and 1.31 versus the pound.

In contrast, the greenback rebounded to 0.6591 against the aussie and 0.6287 against the kiwi, from its early multi-day lows of 0.6637 and 0.6334, respectively. The next likely resistance for the greenback is seen around 0.64 against the aussie and 0.60 against the kiwi.

The greenback was higher against the loonie at a 3-day peak of 1.3433. If the greenback gains again, 1.36 is possibly seen as its next resistance level.

The U.S. durable goods orders for January are scheduled for release at 10:00 am ET.


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U.S. Labor Productivity Growth Unexpectedly Downwardly Revised In Q4

Trading 05 mar 2020 Commentaire »

Revised data released by the Labor Department on Thursday showed U.S. labor productivity increased by less than initially estimated in the fourth quarter of 2019.

The report said labor productivity climbed by 1.2 percent in the fourth quarter compared to the previously reported 1.4 percent jump. Economists had expected the pace of productivity growth to be unrevised from the initial estimate.

The increase in productivity in the fourth quarter came following a 0.3 percent drop in the third quarter, which was downwardly revised from a previously reported 0.2 percent dip.

The weaker than previously estimated productivity growth in the fourth quarter came as output surged up by slightly less than initially estimated and hours worked jumped by slightly more than initially estimated. Productivity is a measure of output per hour.

The Labor Department said output surged up by 2.4 percent compared to the previously reported 2.5 percent jump, while hours worked climbed by 1.2 percent compared to the previously reported 1.1 percent increase.

A note from economists at Oxford Economics said the revised productivity estimate for the fourth quarter confirmed that productivity growth likely reached a cyclical peak last year.

"Despite last year' cyclical upswing, productivity growth continues to be constrained by structural factors such as a slow diffusion and adoption of technologies and declining business dynamism," the economists said.

They added, "With business investment trends still weak and economic momentum likely to slow materially due to the coronavirus, productivity growth is unlikely to make further headway."

The report also said unit labor costs rose by 0.9 percent in the fourth quarter, reflecting a notable downward revision from the originally reported 1.4 percent spike. The increase in labor costs was also expected to be unrevised.

The latest data also showed a substantial downward revision to unit labor cost growth in the third quarter, with labor costs edging up by just 0.2 percent compared to the previously reported 2.5 percent spike.

In the fourth quarter, hourly compensation jumped by 2.1 percent compared to the previously reported 2.8 percent surge.

Real hourly compensation, which takes into account changes in consumer prices, dipped by 0.2 percent compared to the previously reported 0.3 percent increase.


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U.S. Weekly Jobless Claims Edge Down Slightly Less Than Expected

Trading 05 mar 2020 Commentaire »

With the more closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended February 29th.

The report said initial jobless claims edged down to 216,000, a decrease of 3,000 from the previous week's unrevised level of 219,000. Economists had expected jobless claims to slip to 215,000.

Meanwhile, Labor Department said the less volatile four-week moving average crept up to 213,000, an increase of 3,250 from the previous week's unrevised average of 209,750.

Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also rose by 7,000 to 1.729 million in the week ended February 22nd.

The four-week moving average of continuing claims still fell to 1,721,250, a decrease of 7,500 from the previous week's revised average of 1,728,750.

On Friday, the Labor Department is scheduled to release its more closely watched employment report for the month of February.

Employment is expected to increase by about 175,000 jobs in February after jumping by 225,000 jobs in January, while the unemployment rate is expected to hold at 3.6 percent.


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BoE Survey Shows More Firms See Brexit Uncertainty Lasting Until At Least 2021

Trading 05 mar 2020 Commentaire »

The number of firms who expect the uncertainty caused by Brexit to take longer to resolve increased in February, survey data from the Bank of England showed on Wednesday.

In February, 76 percent of businesses expected uncertainty to persist until at least 2021, the monthly Decision Maker Panel survey of the central bank found. In January, the proportion was 59 percent.

The DMP survey was conducted between February 7 and 21 among the Chief Financial Officers for small, medium and large UK businesses.

Further, the survey showed that 23 percent of respondents said extra requirements were not relevant as they do not trade with the EU.


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U.S. Labor Productivity Climbs Less Than Initially Estimated In Q4

Trading 05 mar 2020 Commentaire »

Revised data released by the Labor Department on Thursday showed U.S. labor productivity increased by less than initially estimated in the fourth quarter of 2019.

The report said labor productivity climbed by 1.2 percent in the fourth quarter compared to the previously reported 1.4 percent jump. Economists had expected the pace of productivity growth to be unrevised from the initial estimate.

The Labor Department also said unit labor costs rose by 0.9 percent in the fourth quarter, reflecting a notable downward revision from the originally reported 1.4 percent spike. The increase in labor costs was also expected to be unrevised.


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U.S. Weekly Jobless Claims Edge Down To 216,000

Trading 05 mar 2020 Commentaire »

With the more closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended February 29th.

The report said initial jobless claims edged down to 216,000, a decrease of 3,000 from the previous week's unrevised level of 219,000. Economists had expected jobless claims to slip to 215,000.

Meanwhile, Labor Department said the less volatile four-week moving average crept up to 213,000, an increase of 3,250 from the previous week's unrevised average of 209,750.


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*U.S. Labor Productivity Growth Downwardly Revised To 1.2% In Q4

Trading 05 mar 2020 Commentaire »

U.S. Labor Productivity Growth Downwardly Revised To 1.2% In Q4


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