U.S. Dollar Advances As Virus Worries Return

Trading 18 sept 2020 Commentaire »

The U.S. dollar strengthened against its most major opponents in the New York session on Friday amid safe haven appeal, as a second wave of the coronavirus infections raised fears about the pace of economic recovery.

Risk sentiment deteriorated after France registered 10,593 fresh cases on Thursday, and Britain had a spike in infections.

Spain is currently battling a resurgent second wave of Covid-19 but the mortality levels are far lower than they were in spring.

Surging coronavirus figures across Europe should serve as "a wake-up call", Dr. Hans Kluge, regional director of The World Health Organization in Europe, said on Thursday.

The number of new cases had doubled in more than half of European member states in the past two weeks and we have a very serious situation unfolding before us, he added.

The greenback climbed to 1.1826 against the euro and 0.9113 against the franc, off its previous 2-day lows of 1.1869 and 0.9073, respectively. The greenback is poised to find resistance around 1.16 against the euro and 0.94 against the franc.

The greenback edged up to 1.2933 against the pound, reversing from its early low of 1.3000. On the upside, 1.23 is likely seen as the next resistance level for the greenback.

Data from the Office for National Statistics showed that UK retail sales continued to grow in August but the pace of expansion slowed markedly.

Retail sales volume increased 0.8 percent month-on-month in August, but slower than July's 3.7 percent increase. Sales were forecast to climb 0.7 percent. This was the fourth consecutive rise in volume.

After falling to 2-day lows of 1.3137 against the loonie, 0.7334 against the aussie and 0.6798 against the kiwi in early deals, the greenback rebounded to 1.3201, 0.7283 and 0.6758, respectively. The greenback is seen locating resistance around 1.34 against the loonie, 0.70 against the aussie and 0.66 against the kiwi.

In contrast, the greenback held steady against the yen, after hitting a 1-1/2-month low of 104.27 in the European session. The pair was worth 104.74 at Thursday's close.

Data from the Ministry of Internal Affairs and Communications showed that Japan consumer prices rose 0.2 percent on year in August - in line with expectations and slowing from 0.3 percent in July.

Core CPI, which excludes volatile food costs, sank an annual 0.4 percent - again matching forecasts following the flat reading in the previous month.


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U.S. Leading Economic Index Suggests Rebound May Be Losing Stream

Trading 18 sept 2020 Commentaire »

A report released by the Conference Board showed a continued increase by its reading on leading U.S. economic indicators in the month of August, although the pace of growth slowed compared to recent months.

The Conference Board said its leading economic index jumped by 1.2 percent in August after surging up by 2.0 percent in July and spiking by 3.1 percent in June. Economists had expected the index to increase by 1.3 percent.

Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board, said the slowdown in the pace of improvement "suggests that this summer's economic rebound may be losing steam heading into the final stretch of 2020."

"Weakening in new orders for capital goods, residential construction, consumers' outlook, and financial conditions point to increasing downside risks to the economic recovery," Ozyildirim said.

He added, "Looking ahead to 2021, the LEI suggests that the US economy will start the new year under substantially weakened economic conditions."

The report said the coincident economic index also rose by 0.6 percent in August after jumping by 1.2 percent in July and soaring by 3.9 percent in June.

Meanwhile, the lagging economic index fell by 0.6 percent in August, matching the decrease seen in the previous month. The lagging index plunged by 3.5 percent in June.


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U.S. Consumer Sentiment Improves Much More Than Expected In September

Trading 18 sept 2020 Commentaire »

After reporting an unexpected increase in U.S. consumer sentiment in the previous month, the University of Michigan released a report on Friday showing consumer sentiment continued to improve in the month of September.

The preliminary report said the consumer sentiment index climbed to 78.9 in September from 74.1 in August. Economists had expected the index to show a much more modest uptick to 75.0.

The index reached its highest level since March but is still well below the pre-pandemic reading of 101.0 seen in February.

The much bigger than expected increase by the consumer sentiment index reflected improvements in consumers' assessment of current conditions as well as their outlook for the future.

The current economic conditions index jumped to 87.5 in September 82.9 in August, while the index of consumer expectations surged up to 73.3 from 68.5.

"Over the next several months, there are two factors that could cause volatile shifts and steep losses in consumer confidence: how the election is decided and the delays in obtaining vaccinations," said Surveys of Consumers chief economist Richard Curtin.

He added, "While the end of the recession will depend on these non-economic factors, the hardships endured by consumers can only be offset by renewed federal relief payments."

On the inflation front, the report said one-year inflations expectations tumbled to 2.7 percent in September from 3.1 percent in August, while five-year inflation expectations edged down to 2.6 percent from 2.7 percent.


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*U.S. Dollar Advances To 0.9113 Against Franc

Trading 18 sept 2020 Commentaire »

U.S. Dollar Advances To 0.9113 Against Franc


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*U.S. Dollar Climb To 1.2933 Against Pound, 1.1826 Against Euro

Trading 18 sept 2020 Commentaire »

U.S. Dollar Climb To 1.2933 Against Pound, 1.1826 Against Euro


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Dollar Little Changed After U.S. Consumer Sentiment Index

Trading 18 sept 2020 Commentaire »

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

The greenback was trading at 1.1836 against the euro, 1.2947 against the pound, 0.9108 against the franc and 104.39 against the yen around 10:02 am ET.


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*U.S. Leading Economic Index Jumps 1.2% In August

Trading 18 sept 2020 Commentaire »

U.S. Leading Economic Index Jumps 1.2% In August


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*U.S. Consumer Sentiment Index Climb To 78.9 In September

Trading 18 sept 2020 Commentaire »

U.S. Consumer Sentiment Index Climb To 78.9 In September


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Dollar Mixed Before U.S. Consumer Sentiment Index

Trading 18 sept 2020 Commentaire »

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

The greenback was worth 1.1834 against the euro, 1.2950 against the pound, 0.9103 against the franc and 104.38 against the yen as of 9:55 am ET.


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Italy Current Account Surplus Rises For First Time Since April

Trading 18 sept 2020 Commentaire »

Italy's current account surplus increased for the first time in four months in July, mainly due to the strong performance of the goods balance and a recovering tourism surplus, preliminary figures from the Bank of Italy showed on Friday. The current account surplus rose to EUR 9.308 billion from EUR 8.744 billion in the same month last year. The visible trade surplus grew to EUR 9.765 billion from EUR 7.953 billion.

The services trade surplus was EUR 7 million versus EUR 1.528 billion in the same month a year ago. The tourism surplus, which is recovering, was about a third of the value in the corresponding month of the previous year, the bank said.

Surplus in the primary income grew to EUR 1.341 billion from EUR 857 million. The shortfall in the secondary income account widened to EUR 1.805 billion from EUR 1.594 billion. The deficit in the capital account narrowed to EUR 58 million from EUR 125 million. The surplus in the financial account shrunk to EUR 2.377 billion from EUR 12.997 billion.

In the twelve months ending in July, the current account surplus was EUR 48.1 billion, or 2.8 percent of GDP, versus EUR 46.7 billion in the corresponding period of 2019. The improvement was mainly due to the widening of the goods surplus, while a negative contribution came from the worsening in the services deficit and the lower primary income surplus, the bank said.


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