Dollar Rises On Strong Jobs Data

Trading 07 déc 2019 Commentaire »

After exhibiting some weakness early on in the day, the U.S. dollar moved higher on Friday, riding on strong U.S. monthly jobs data and amid optimism the U.S. and China will agree on a phase one trade deal before the next hike in tariffs on Chinese imports come into effect later this month.

The dollar index, which eased to 97.36 at the start, rallied to 97.84 by mid morning, and was later seen at 97.70, up nearly 0.3% from previous close.

Against the euro, the dollar strengthened to 1.1061, gaining about 0.4%, from previous close of $1.1103.

Against pound sterling, the dollar recovered to 1.3133 from a low of 1.3167.

The Japanese yen strengthened against the dollar, rising to 108.56 a dollar, after having weakened to 108.91 yen a dollar in early trades.

The dollar was down slightly against the Aussie with the AUD-USD pair trading at 0.6841.

Against Swiss franc, the dollar rose to 09899, up 0.27% from previous close, while against the Loonie, it rose to 1.3257, adding more than 0.6%.

In Canadian economic news, data from Statistics Canada said the Canadian economy lost 71,200 jobs in November of 2019 after shedding 1,800 jobs in the previous month.

The unemployment rate in Canada rose to 5.9% in November 2019 from 5.5% in the previous month and compared with market expectations of 5.5%.

In the U.S., according to the data from the Labor Department, U.S. non-farm payroll employment surged by 266,000 jobs in November after climbing by an upwardly revised 156,000 jobs in October.

Economists had expected an increase of about 180,000 jobs compared to the addition of 128,000 jobs originally reported for the previous month.

The unemployment rate edged down to 3.5% in November from 3.6% in October. The unemployment rate was expected to remain unchanged.

The buoyant jobs data is likely to prompt the Federal Reserve to hold rates unchanged when it meets to take a call on interest rates next week.

Meanwhile, according to preliminary data released by the University of Michigan, U.S. consumer sentiment showed a much bigger than expected improvement in the month of December, with the index climbing to 99.2 from the final November reading of 96.8. Economists had expected the index to inch up to 97.0.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 100.0 in May.

In trade news, China said it would waive import tariffs for some soybeans and pork shipments from the United States.

The tariff waivers were based on applications by individual firms for U.S. soybeans and pork imports, the finance ministry said in a statement, but didn't not specify the quantities involved.

The waiver of 25% tariffs comes two weeks before a critical decision on the fate of the December 15 tariff increases.

On Thursday, U.S. President Donald Trump said that trade talks with China were "moving right along", and that the two sides are having very major discussions".

Asked whether he will go ahead with additional tariffs in less than two weeks, Trump said, "We're not discussing that."

Meanwhile, U.S. Treasury Secretary Steven Mnuchin told reporters that trade talks with China are on track, but the United States is not bound to a deadline.


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

Dollar Rises On Strong Jobs Data

Trading 07 déc 2019 Commentaire »

After exhibiting some weakness early on in the day, the U.S. dollar moved higher on Friday, riding on strong U.S. monthly jobs data and amid optimism the U.S. and China will agree on a phase one trade deal before the next hike in tariffs on Chinese imports come into effect later this month.

The dollar index, which eased to 97.36 at the start, rallied to 97.84 by mid morning, and was later seen at 97.70, up nearly 0.3% from previous close.

Against the euro, the dollar strengthened to 1.1061, gaining about 0.4%, from previous close of $1.1103.

Against pound sterling, the dollar recovered to 1.3133 from a low of 1.3167.

The Japanese yen strengthened against the dollar, rising to 108.56 a dollar, after having weakened to 108.91 yen a dollar in early trades.

The dollar was down slightly against the Aussie with the AUD-USD pair trading at 0.6841.

Against Swiss franc, the dollar rose to 09899, up 0.27% from previous close, while against the Loonie, it rose to 1.3257, adding more than 0.6%.

In Canadian economic news, data from Statistics Canada said the Canadian economy lost 71,200 jobs in November of 2019 after shedding 1,800 jobs in the previous month.

The unemployment rate in Canada rose to 5.9% in November 2019 from 5.5% in the previous month and compared with market expectations of 5.5%.

In the U.S., according to the data from the Labor Department, U.S. non-farm payroll employment surged by 266,000 jobs in November after climbing by an upwardly revised 156,000 jobs in October.

Economists had expected an increase of about 180,000 jobs compared to the addition of 128,000 jobs originally reported for the previous month.

The unemployment rate edged down to 3.5% in November from 3.6% in October. The unemployment rate was expected to remain unchanged.

The buoyant jobs data is likely to prompt the Federal Reserve to hold rates unchanged when it meets to take a call on interest rates next week.

Meanwhile, according to preliminary data released by the University of Michigan, U.S. consumer sentiment showed a much bigger than expected improvement in the month of December, with the index climbing to 99.2 from the final November reading of 96.8. Economists had expected the index to inch up to 97.0.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 100.0 in May.

In trade news, China said it would waive import tariffs for some soybeans and pork shipments from the United States.

The tariff waivers were based on applications by individual firms for U.S. soybeans and pork imports, the finance ministry said in a statement, but didn't not specify the quantities involved.

The waiver of 25% tariffs comes two weeks before a critical decision on the fate of the December 15 tariff increases.

On Thursday, U.S. President Donald Trump said that trade talks with China were "moving right along", and that the two sides are having very major discussions".

Asked whether he will go ahead with additional tariffs in less than two weeks, Trump said, "We're not discussing that."

Meanwhile, U.S. Treasury Secretary Steven Mnuchin told reporters that trade talks with China are on track, but the United States is not bound to a deadline.


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

Oil Futures Rise To Near 3-month High As OPEC Deepens Output Cuts

Trading 07 déc 2019 Commentaire »

Crude oil prices rose sharply on Friday after Saudi Arabia and Russia agreed on further output curbs.

Positive comments on the trade deal front and upbeat U.S. jobs data contributed as well to oil's sharp rise.

The OPEC and a 10-nation coalition led by Russia called OPEC+ have agreed to deepen oil production cuts in order to prevent oversupply in the market. The new deal agreed upon during the Vienna meet will apply for the first three months of 2020.

The move follows the recommendation of the oil exporting countries to deepen the cuts by 500,000 barrels per day to existing 1.2 million barrels per day. The total curb of 1.7 million barrels per day would amount to 1.7% of global crude supply.

Saudi Arabia's energy minister Prince Abdulaziz bin Salman told reporters today that the kingdom's quota would be an additional 167,000 barrels per day and that it would continue to exceed its quota by 400,000 barrels a day, thus bringing the overall production cut to closer to 2.1 million barrels a day.

West Texas Intermediate Crude oil futures for January ended up $0.77, or about 1.3%, at $59.20 a barrel, the highest settlement since September 17.

On Thursday, WTI Crude oil futures for January ended flat at $58.43 a barrel.

Crude oil futures gained as much as 7.3% in the week, the biggest weekly gain since June.

According to Baker Hughes, the number of active U.S. rigs drilling for oil fell by five to 663 this week, dropping for the seventh straight week.

The total active U.S. rig count, meanwhile, also fell by three to 799, according to the report from Baker Hughes.


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

Oil Futures Rise To Near 3-month High As OPEC Deepens Output Cuts

Trading 07 déc 2019 Commentaire »

Crude oil prices rose sharply on Friday after Saudi Arabia and Russia agreed on further output curbs.

Positive comments on the trade deal front and upbeat U.S. jobs data contributed as well to oil's sharp rise.

The OPEC and a 10-nation coalition led by Russia called OPEC+ have agreed to deepen oil production cuts in order to prevent oversupply in the market. The new deal agreed upon during the Vienna meet will apply for the first three months of 2020.

The move follows the recommendation of the oil exporting countries to deepen the cuts by 500,000 barrels per day to existing 1.2 million barrels per day. The total curb of 1.7 million barrels per day would amount to 1.7% of global crude supply.

Saudi Arabia's energy minister Prince Abdulaziz bin Salman told reporters today that the kingdom's quota would be an additional 167,000 barrels per day and that it would continue to exceed its quota by 400,000 barrels a day, thus bringing the overall production cut to closer to 2.1 million barrels a day.

West Texas Intermediate Crude oil futures for January ended up $0.77, or about 1.3%, at $59.20 a barrel, the highest settlement since September 17.

On Thursday, WTI Crude oil futures for January ended flat at $58.43 a barrel.

Crude oil futures gained as much as 7.3% in the week, the biggest weekly gain since June.

According to Baker Hughes, the number of active U.S. rigs drilling for oil fell by five to 663 this week, dropping for the seventh straight week.

The total active U.S. rig count, meanwhile, also fell by three to 799, according to the report from Baker Hughes.


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

Treasuries Move Notably Lower On Better Than Expected Jobs Data

Trading 07 déc 2019 Commentaire »

Extending the downward move seen over the two previous sessions, treasuries moved notably lower during trading on Friday.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.5 basis points to 1.842 percent.

The continued weakness among treasuries came following the release of a closely watched Labor Department report showing much stronger than expected U.S. job growth in the month of November.

The report said non-farm payroll employment surged up by 266,000 jobs in November after climbing by an upwardly revised 156,000 jobs in October.

Economists had expected an increase of about 180,000 jobs compared to the addition of 128,000 jobs originally reported for the previous month.

The Labor Department said notable job gains occurred in healthcare and in professional and technical services, while manufacturing employment also rose as General Motors (GM) workers returned from a strike.

With the stronger than expected job growth, the unemployment rate edged down to 3.5 percent in November from 3.6 percent in October. The unemployment rate was expected to remain unchanged.

A separate report released by the University of Michigan showed a much bigger than expected improvement in U.S. consumer sentiment in the month of December.

The report said the consumer sentiment index climbed to 99.2 in December from the final November reading of 96.8. Economists had expected the index to inch up to 97.0.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 100.0 in May.

Surveys of Consumers chief economist Richard Curtin said nearly all of the improvement in consumer sentiment in December was among upper income households, who reported near record gains in household wealth due to record high stock prices.

The Federal Reserve may move back into the spotlight next week, although the central bank is widely expected to leave interest rates unchanged at its monetary policy meeting.

Investors are also likely to keep an eye on any news of the trade front as well as reports on retail sales, consumer and producer prices, and import and export prices.

Bond trading could also be impacted by reaction to the results of the Treasury Department's auctions of three-year and ten-year notes and thirty-year bonds.


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

Treasuries Move Notably Lower On Better Than Expected Jobs Data

Trading 07 déc 2019 Commentaire »

Extending the downward move seen over the two previous sessions, treasuries moved notably lower during trading on Friday.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.5 basis points to 1.842 percent.

The continued weakness among treasuries came following the release of a closely watched Labor Department report showing much stronger than expected U.S. job growth in the month of November.

The report said non-farm payroll employment surged up by 266,000 jobs in November after climbing by an upwardly revised 156,000 jobs in October.

Economists had expected an increase of about 180,000 jobs compared to the addition of 128,000 jobs originally reported for the previous month.

The Labor Department said notable job gains occurred in healthcare and in professional and technical services, while manufacturing employment also rose as General Motors (GM) workers returned from a strike.

With the stronger than expected job growth, the unemployment rate edged down to 3.5 percent in November from 3.6 percent in October. The unemployment rate was expected to remain unchanged.

A separate report released by the University of Michigan showed a much bigger than expected improvement in U.S. consumer sentiment in the month of December.

The report said the consumer sentiment index climbed to 99.2 in December from the final November reading of 96.8. Economists had expected the index to inch up to 97.0.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 100.0 in May.

Surveys of Consumers chief economist Richard Curtin said nearly all of the improvement in consumer sentiment in December was among upper income households, who reported near record gains in household wealth due to record high stock prices.

The Federal Reserve may move back into the spotlight next week, although the central bank is widely expected to leave interest rates unchanged at its monetary policy meeting.

Investors are also likely to keep an eye on any news of the trade front as well as reports on retail sales, consumer and producer prices, and import and export prices.

Bond trading could also be impacted by reaction to the results of the Treasury Department's auctions of three-year and ten-year notes and thirty-year bonds.


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

U.S. Consumer Credit Jumps More Than Expected In October

Trading 07 déc 2019 Commentaire »

Consumer credit in the U.S. increased by more than anticipated in the month of October, according to a report released by the Federal Reserve on Friday.

The Fed said consumer credit surged up by $18.9 billion in October after climbing by $9.6 billion in September. Economists had expected consumer credit to increase by $16.0 billion.

Revolving credit, which largely reflects credit card debt, rose by $7.9 billion in October after edging down by $0.2 billion in September.

The report said non-revolving credit, such as student loans and car loans, also jumped by $11.0 billion in October after increasing by $9.4 billion in the previous month.

Total consumer credit was up by 5.5 percent compared to the same month a year ago, as revolving credit spiked by 8.8 percent and non-revolving credit surged up by 4.3 percent.


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

U.S. Consumer Credit Jumps More Than Expected In October

Trading 07 déc 2019 Commentaire »

Consumer credit in the U.S. increased by more than anticipated in the month of October, according to a report released by the Federal Reserve on Friday.

The Fed said consumer credit surged up by $18.9 billion in October after climbing by $9.6 billion in September. Economists had expected consumer credit to increase by $16.0 billion.

Revolving credit, which largely reflects credit card debt, rose by $7.9 billion in October after edging down by $0.2 billion in September.

The report said non-revolving credit, such as student loans and car loans, also jumped by $11.0 billion in October after increasing by $9.4 billion in the previous month.

Total consumer credit was up by 5.5 percent compared to the same month a year ago, as revolving credit spiked by 8.8 percent and non-revolving credit surged up by 4.3 percent.


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

U.S. Wholesale Inventories Inch Up Less Than Expected In October

Trading 06 déc 2019 Commentaire »

Wholesale inventories in the U.S. crept up by slightly less than expected in the month of October, according to a report released by the Commerce Department on Friday.

The Commerce Department said wholesale inventories inched up by 0.1 percent in October after falling by a revised 0.7 percent in September.

Economists had expected inventories to rise by 0.2 percent compared to the 0.4 percent drop originally reported for the previous month.

Inventories of non-durable goods climbed by 0.7 percent in October after tumbling by 1.3 percent in September, but inventories of durable goods fell by 0.3 percent for the second straight month.

Meanwhile, the report said wholesale sales slid by 0.7 percent in October after edging down by 0.1 percent in September.

The continued decrease in wholesale sales came as sales of durable goods fell by 0.6 percent and sales of non-durable goods slumped by 0.9 percent.

With inventories rising and sales falling, the inventories/sales ratio for merchant wholesalers ticked up to 1.37 in October from 1.36 in September.


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

U.S. Consumer Sentiment Climbs To Seven-Month High In December

Trading 06 déc 2019 Commentaire »

Preliminary data released by the University of Michigan on Friday showed a much bigger than expected improvement in U.S. consumer sentiment in the month of December.

The report said the consumer sentiment index climbed to 99.2 in December from the final November reading of 96.8. Economists had expected the index to inch up to 97.0.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 100.0 in May.

The current economic index jumped to 115.2 in December from 111.6 in November, while the index of consumer expectations rose to 88.9 from 87.3.

Surveys of Consumers chief economist Richard Curtin said nearly all of the improvement in consumer sentiment in December was among upper income households, who reported near record gains in household wealth due to record high stock prices.

"Indeed, among households with incomes in the top third of the distribution, their overall assessment of their current finances was the third highest in the past twenty years," Curtin said.

He added, "These gains were aided by declining inflation expectations, with long term inflation expectations returning to an all-time low."

The report said one-year inflation expectations edged down to 2.4 percent in December from 2.5 percent in November, while five-year inflation expectations dipped to 2.3 percent from 2.5 percent.

Curtin said impeachment was barely mentioned in response to any question in early December but noted partisanship continues to have a strong impact on economic expectations.

The average gap between Democrats and Republicans was widened to 41.6 points since President Donald Trump took office compared to 18.7 points under former President Barack Obama's administration.

Meanwhile, the views of Independents closely track the overall sentiment index, which Curtin said indicates the continuation of the economic expansion based on consumer spending.


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