Dollar Little Changed After U.S. Consumer Sentiment Index

Trading 26 juin 2020 Commentaire »

The University of Michigan's final consumer sentiment index for June has been released at 10:00 am ET Friday. After the data, the greenback changed little against its major counterparts.

The greenback was trading at 107.15 against the yen, 0.9485 against the franc, 1.2357 against the pound and 1.1210 against the euro around 10:05 am ET.


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*U.S. Consumer Sentiment Index Downwardly Revised To 78.1 In June

Trading 26 juin 2020 Commentaire »

U.S. Consumer Sentiment Index Downwardly Revised To 78.1 In June


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Dollar Mixed Ahead Of U.S. Consumer Sentiment Index

Trading 26 juin 2020 Commentaire »

The University of Michigan's final consumer sentiment index for June is due at 10:00 am ET Friday. Ahead of the data, the greenback traded mixed against its major counterparts. While it rose against the pound and the yen, it held steady against the euro and the franc.

The greenback was worth 107.18 against the yen, 0.9483 against the franc, 1.2356 against the pound and 1.1210 against the euro as of 9:55 am ET.


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Eurocoin Indicator Falls Further In June

Trading 26 juin 2020 Commentaire »

An indicator reflecting the current economic situation in the euro area continued to fall in June, data published by Bank of Italy showed on Friday.

The eurocoin indicator fell to -0.37 in June from -0.32 in May.

The indicator continued to be affected by the contraction in industrial production notwithstanding the improvement in business and consumer confidence, the bank said.

The indicator developed by the Bank of Italy provides a summary index of the current economic situation in the euro area.


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Dollar Little Changed After U.S. Personal Income & Spending Data

Trading 26 juin 2020 Commentaire »

The U.S. personal income and spending data for May has been released at 8:30 am ET Friday. The greenback changed little against its major rivals after the data.

The greenback was trading at 1.1226 against the euro, 1.2395 against the pound, 0.9473 against the franc and 106.91 against the yen around 8:35 am ET.


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ECB Chief Says Recovery To Be Transformational

Trading 26 juin 2020 Commentaire »

The recovery from the coronavirus crisis is set to be incomplete and transformational, European Central Bank President Christine Lagarde said on Friday.

At an online event, she said the recovery will be restrained.

"We probably have passed the lowest point, and I say that with some trepidation," Lagarde said.

She observed that the hardest hit industries, namely airlines, hospitality and entertainment will emerge from the current situation in a different shape.

"We need to be extremely attentive to those that are most vulnerable," said Lagarde.


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Italy Consumer Confidence Rises In June

Trading 26 juin 2020 Commentaire »

Italy's consumer confidence and business confidence improved in June, survey results from the statistical office ISTAT showed on Friday.

The consumer confidence rose to 100.6 in June from 94.3 in May. Economists had forecast a score of 97.5.

The business confidence increased to 65.4 in June from 57.2 in the previous month.

The economic sentiment index rose to 87.2 in June from 72.9 in the prior month.

The manufacturing confidence index increased to 79.8 in June from 71.5 in May. In construction, the sentiment index rose to 124.0 from 108.4.

The indicator for services sector rose to 51.7 from 38.9 in May and that for retail increased to 79.1 from 68.0.


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U.S. Dollar Lower Amid Improved Risk Sentiment

Trading 26 juin 2020 Commentaire »

The U.S. dollar depreciated against its major counterparts in the European session on Friday, as a slew of positive company updates helped offset concerns about a resurgence in U.S. Covid-19 cases.

Sentiment was also bolstered after U.S. regulators eased bank rules that will free up billions of capital.

Further, European Central Bank President Christine Lagarde said the worst of the coronavirus crisis may be over for the world, but the recovery will be restrained and incomplete.

Investors await personal income and spending data and University of Michigan's final consumer sentiment index for more direction.

The U.S currency fell to 2-day lows of 0.9469 against the franc and 106.86 against the yen, from its early highs of 0.9491 and 107.24, respectively. The next possible support for the greenback is seen around 0.92 against the franc and 104.00 against the yen.

The greenback dropped to 1.1239 against the euro, after rising to 1.1205 at 3:15 am ET. The greenback is seen finding support around the 1.14 region.

Data from the Destatis showed that Germany's import prices declined notably in May but the annual pace of fall slowed from April.

Import prices decreased 7 percent on a yearly basis in May, slower than the 7.4 percent drop seen in April.

The greenback weakened to a 2-day low of 0.6449 versus the kiwi and held steady thereafter. At yesterday's close, the pair was valued at 0.6429.

The greenback hovered at a 2-day low of 0.6896 versus the aussie and held steady thereafter. The pair was worth 0.6887 at Thursday's close.

In contrast, the greenback firmed to 1.2378 against the pound, setting a 4-day high. On the upside, 1.21 is possibly seen as the next resistance level for the greenback.

The greenback edged up to 1.3663 against the loonie, from an Asian session's decline of 1.3628. If the greenback rises further, it may find resistance around the 1.38 level.

U.S. personal income and spending data for May and University of Michigan's final consumer sentiment index for June are due in the New York session.


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Austria Manufacturing Sector Contracts At Slower Pace

Trading 26 juin 2020 Commentaire »

Austria manufacturing sector contracted at the slowest pace in four months in June, data from IHS Markit showed Friday.

The headline UniCredit Bank Austria manufacturing Purchasing Managers' Index rose to 46.5 in June from 40.4 in May. However, any score below 50 indicates contraction in the sector.

New order inflow decreased in June and demand in the capital goods industry remained subdued. The overall decline in new orders eased to the weakest since February.

Output eased to the weakest in the current four-month sequence of contraction in June. Backlogs of work continued to decrease in June and employment fell for the fourth straight month.

Stock of finished goods rose at a softer pace in June, while pre-production inventories declined slightly.

Input cost declined the most since July 2012 and factory gate charges fell the most since May 2009.

Business expectations remained negative in June and firms' concerns were often related to the longer-term squeeze on customer spending.


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Dollar prepares for June Non-Farm Payroll

Trading 26 juin 2020 Commentaire »

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The dollar index completes the week in positive territory. The demand for the greenback as a protective asset has grown in recent days due to the worsening situation with coronavirus in the USA and other developed countries of the world. America records a record increase in cases, an indicator even higher than peak levels in late April. Thus, the risks of the second wave of the pandemic are becoming more real. Nevertheless, traders are reluctant to win them back and try to find positive in a whole heap of negative news.

At the end of the week, the mood was mostly negative, the weekend can all change or worsen more. Much will depend on the rate of spread of coronavirus infection, as well as on what decision will be made regarding the reimplementation of the quarantine measures by the leaders of the States with the highest increase in COVID-19.

Recently, the US economic data has been mostly positive, which gave hope to traders to restore economic growth. However, the current unfavorable situation with coronavirus can change everything for the worse and significantly slow down the pace of economic recovery. This is most worrying for market players who are more supportive of defensive assets.

USDX

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In addition to the spread of the virus, next week traders will focus on the release of the June NFP. This report will not only reflect the situation on the labor market in June but also shed light on the surprise that was presented to the markets in May. Judging by the weekly data from the American labor market, one should not count on another fabulous performance. The fact is that the weekly increase in initial applications for unemployment benefits in the United States exceeds forecast values. This week was most noticeable. The number of initial applications for unemployment benefits fell by only 60 thousand, to 1.48 million, while the markets were waiting for a decrease of 280 thousand, to 1.3 million. This means that the growth of layoffs this month is steadily ahead of market consensus.

However, the market cannot be so scared. It is unlikely that investors will be upset: the worse the recovery in employment is, the more likely it is to extend the generous income insurance that expires at the end of next month.

The applications received for more than one week amounted to 19.5 million with a forecast of 20.3 million. However, a weekly decline in the indicator is not consistent with the enchanting restart of the economy.

Undoubtedly, the data indicate that Americans are returning to work. Here again, there is a "but." Improvement could occur due to features in reporting. California and Florida, for example, send data once every two weeks. This Thursday just fell out.

The main condition for receiving payments is the fact of deprivation of work. Due to the pandemic, the authorities have so far removed the second important condition, a person does not have to hurry to search for a new job. In the category of unemployed, only those who are actively seeking it are taken into account. This means that a significant proportion of the unemployed simply fell out and the underestimated unemployment rate of 13.3% can be safely ignored.

The topic of extending unemployment benefits is probably being actively discussed now, but it will most likely be covered after the publication of the unemployment report, which will allow the American authorities to clarify the size and conditions of the program.

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