The U.S. dollar edged higher in early European trade Tuesday, reversing some of the previous session’s sharp losses as traders revised their positions before data showing a potential rise in U.S. inflation. At 03:10 ET (07:10 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher to 104.332, after falling 0.5% in the prior session, retreating from last week’s six-month high of 105.15. U.S. inflation release the main focusThe focus of the foreign exchange market this week is squarely on U.S. consumer inflation data due on Wednesday, which is expected to set…
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The Japanese yen rose in volatile trade on Friday after the Bank of Japan said it will adopt a looser approach to its yield curve control policy, while broader Asian currencies recovered from some recent losses against a strong dollar. The yen recovered from initial losses to trade 0.5% higher to the dollar by 00:56 ET (04:56 GMT). But the currency had earlier fallen as much as 0.8% before rising by a similar range. BOJ signals less strict yield curve control The BOJ said on Friday that it will adopt a more flexible approach to controlling bond yields, by allowing…
Most Asian currencies fell on Wednesday after Fitch cut the U.S. government’s sovereign rating, although the dollar was little changed, retaining most of its recent gains on strong economic data. Fitch trimmed the U.S.’ rating to AA+ from AAA, citing concerns over stretched fiscal spending in the coming years, as well as increased partisan risks to government policy. The agency had flagged a potential downgrade earlier this year. Fitch downgrade seen having limited impact, dollar steady The dollar fell slightly in Asian trade after the rating cut, but retained a bulk of its gains this week after economic data pointed…
The S&P 500 fell to start August, as investors navigated a raft of corporate earnings reports and assessed a fresh batch of economic data. The broad-based index lost 0.27% to finish at 4,576.73, while the Nasdaq Composite dropped 0.43% to end at 14,283.91. The Dow Jones Industrial Average added 71.15 points, or 0.2%, to settle at 35,630.68. Earlier in the session, the Dow touched its highest level since February 2022. Pharmaceutical giant Merck pulled back 1.3% even after reporting a smaller-than-expected loss and revenue that exceeded expectations, thanks to strong Keytruda sales. Caterpillar posted strong results, boosting shares 8.9%. Pfizer…
The dollar barely budged on Wednesday as investors shrugged off Fitch’s U.S. credit rating downgrade, while the yen made up ground as traders assessed the Bank of Japan’s approach to monetary policy. The agency on Tuesday downgraded the United States to AA+ from AAA in a move that drew an angry response from the White House and surprised investors, coming despite the resolution two months ago of a debt ceiling crisis. It cited likely fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills. There was little reaction…
The dollar rose on Friday after a slightly bigger increase in U.S. producer prices in July lifted Treasury yields higher even as speculation grows that the Federal Reserve is at the end of hiking interest rates. Rebounding cost of services at the fastest pace in nearly a year pushed the Producer Price Index higher and unsettled traders who also saw the yen cross the 145-for-$1 threshold that triggered Japanese intervention in September 2022. The PPI for final demand rose 0.3%, the Labor Department said, as data for June was revised lower to show the PPI unchanged, instead of rising by…
Wednesday’s minutes of the Federal Reserve’s July meeting will be closely watched as investors look for guidance on the near-term path of interest rates. Retail sales data and retail earnings will give insights into the health of consumer spending while data out of China is expected to underline concerns over the faltering recovery in the world’s number two economy. Here’s what you need to know to start your week. 1. Fed minutesBefore markets start turning their attention to the Fed’s annual get together in Jackson Hole, Wyoming at the end of the month, investors will be focusing on Wednesday’s minutes…
The dollar index was flat after data showed U.S. retail sales increased more than expected in July, while the yuan sank to a nine-month trough on Tuesday after China’s central bank unexpectedly cut key policy rates. U.S. retail sales jumped 0.7% last month, the Commerce Department said, demonstrating that demand has remained resilient despite the Federal Reserve’s aggressive interest rate hikes to tame inflation, thanks to strong wage gains from a tight labor market. The dollar index, which measures the currency against six peers including the euro and sterling, dropped as low as 102.800 after hitting a 1-1/2-month high at…
Sterling rose against the dollar on Tuesday after data showed British wages grew at a record pace in the second quarter, adding to the Bank of England’s inflation worries, though gains were capped by some signs of a cooling labour market. Wages excluding bonuses were 7.8% higher than a year earlier in the three months to June, representing the highest annual growth rate since comparable records began in 2001, the Office for National Statistics said. But the data also showed some fresh signs of cooling in the job market with the unemployment rate unexpectedly rising to 4.2% from 4%, the…
As the yen slid past 145 per dollar with barely a murmur from Japanese policymakers during recent days, suspicion grew that they won’t be as quick to order intervention as they were last year as they now reap some benefits from a weaker currency. Surging exports helped economic growth hit 6% on an annualised basis in the second quarter, and lower global oil prices have helped keep a lid on the import bill. But a key factor behind the yen’s weakness is unchanged, namely the yawning yield gap with the United States. The Bank of Japan is taking baby steps…