Latest news with #EURUSD
Yahoo
2 hours ago
- Business
- Yahoo
Dollar Gains on Euro Weakness Over EU-US Tariff Deal
The dollar index (DXY00) on Tuesday rose by +0.22% and posted a 5-week high. The dollar has carryover support from Monday following the EU-US trade deal that is seen as favoring the US. Also, expectations for the Fed to keep interest rates unchanged at the end of Wednesday's 2-day FOMC meeting are supportive of the dollar. The dollar extended its gains after the US Jun advance goods trade deficit unexpectedly shrank, a supportive factor for Q2 GDP, and after July consumer confidence rose more than expected. However, the larger-than-expected decline in the Jun JOLTS job openings report was a dovish factor for Fed policy that knocked T-note yields lower and limited gains in the dollar. More News from Barchart America's $37 Trillion Debt Now Takes Venmo: Should Investors Be Worried? Can Platinum Become Rich Person's Gold Again? Dollar Rises as the EU and US Agree on a Trade Deal Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. The US Jun advance goods trade deficit unexpectedly shrank to -$86.0 billion versus expectations of a widening to -$98.0 billion, a positive factor for Q2 GDP. The US May S&P CoreLogic composite-20 home price index rose +2.79% y/y, weaker than expectations of +2.91% and the smallest pace of increase in 1.75 years. US Jun JOLTS job openings fell -275,000 to 7.437 million, weaker than expectations of 7.500 million. The Conference Board US Jul consumer confidence index rose +2.0 to 97.2, stronger than expectations of 96.0. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 2% at the Tue/Wed FOMC meeting and 65% at the following meeting on September 16-17. EUR/USD (^EURUSD) Tuesday fell by -0.28% and posted a 5-week low. The euro is being weighed down by carryover pressure from Monday, when the announced EU-US trade deal was seen as favoring the US, with 15% tariffs imposed on most EU goods, which could pose headwinds to the Eurozone economy due to the higher tariffs. Also, the ECB's Jun inflation expectations eased, a dovish factor for ECB policy and negative for the euro. The ECB's Jun 1-year inflation expectations eased to +2.6% from 2.8% in May. The ECB's Jun 3-year inflation expectations were unchanged from May at +2.4%. Swaps are pricing in a 14% chance of a -25 bp rate cut by the ECB at the September 11 policy meeting. USD/JPY (^USDJPY) Tuesday fell by -0.11%. The yen recovered from a 1-week low against the dollar Tuesday and moved higher as a slide in T-note yields sparked short covering in the yen. Reduced political uncertainty is also supportive for the yen after Japanese Prime Minister Ishiba insisted he would stay on as Prime Minister despite his LDP party losing its majority in the July 20 upper house elections. The yen initially moved lower Tuesday as recent US trade deals have eased global trade tensions and reduced safe-haven demand for the yen. The yen continues to be undercut by concerns that the LDP's loss of its majority in Japan's upper house in the July 20 elections may lead to fiscal deterioration in Japan's government finances, as the government boosts spending and implements tax cuts. August gold (GCQ25) Tuesday closed up +14.00 (+0.42%), and September silver (SIU25) closed up +0.065 (+0.17%). Precious metals on Tuesday settled higher, with silver rebounding from a 1.5-week low. Precious metals moved higher on Tuesday due to a drop in T-note yields. Also, a reversal in stock prices to lower on the day prompted some safe-haven demand for precious metals. In addition, precious metals continue to receive safe-haven support from geopolitical risks, including the conflicts in Ukraine and the Middle East. Fund buying of precious metals continues to support prices after gold holdings in ETFs rose to a two-year high last Friday, and silver holdings in ETFs reached a three-year high on Monday. Tuesday's rally in the dollar index to a 5-week high is bearish for metals. Also, easing trade tensions have curbed safe-haven demand for precious metals after Commerce Secretary Lutnick said a 90-day extension of a trade truce with China was a likely outcome with negotiations between the two countries underway in Stockholm. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Business Standard
a day ago
- Business
- Business Standard
Dollar index holds firmly above 98 mark; FOMC in focus
The US dollar index extended momentum following an over 1% surge in the previous session driven by US-EU trade agreement. The US and EU reached a framework trade agreement on Sunday that sets 15% tariffs on most European goods, taking effect on August 1. However, euro lost impetus following the trade deal that boosted the greenback. Moreover, further developments in the US-China trade talks are also eyed. Investors now turn focus to the outcome of a two-day FOMC policy meeting on Wednesday for further cues. The dollar index that measures the greenback against a basket of currencies is quoting at 98.44, a near two-week high. However, the basket currencies slumped yesterday in tune with dollar strength. EURUSD was quoting at around two week low of $1.1619 and GBPUSD dropped to a near two month low of $1.3354.
Business Standard
5 days ago
- Business
- Business Standard
DXY extends rebound above 97 mark; Set for weekly loss of around 1%
The dollar index extended rebound above 97 mark on Friday following a streak of decline for most part of the week amid improving sentiments on the back of US trade deals. Meanwhile, greenback gained traction following mixed US data. Data revealed that the number of Americans filing for unemployment benefits dipped below forecasts, suggesting a strong labour market. However, the S&P Global Manufacturing PMI fell into contraction territory, dropping to 49.5 from Junes 37-month high of 52 and missing expectations of 52.5 signaling weakness. The Services PMI rose to 55.2, beating the 53.0 forecasts and improving from 52.9 in June, indicating robust growth in the services sector. Meanwhile, US Treasury yields rose with the 10-year Treasury note climbing three basis points up to 4.416% and the US Dollar Index (DXY), which tracks the greenbacks performance against a basket of six currencies, is up 0.21% at 97.32 but is set for a weekly decline of nearly 1%. Among basket currencies, EURUSD and GBPUSD are both trading lower by around 0.2% at $1.1779 and $.3499 respectively.
Yahoo
6 days ago
- Business
- Yahoo
Dollar Pressured by Signs of Slower US Manufacturing Activity
The dollar index (DXY00) today is slightly lower by -0.03%. The dollar gave up an early advance and dropped to a 2.5-week low on today's weaker-than-expected US PMI and new home sales reports. The dollar also fell as improved prospects for an EU trade agreement with the US boosted the euro. The dollar today initially moved higher after weekly jobless claims unexpectedly fell to a 3-month low, a sign of labor market strength that was hawkish for Fed policy and positive for the dollar. More News from Barchart As Silver Scores a Nearly 14-Year High, New Records Could Be Just Around the Corner for Precious Metals Will Metals Stay in the Spotlight Wednesday? Possible EU-US Trade Deal Weighs on the Dollar Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! US weekly initial unemployment claims unexpectedly fell -4,000 to a 3-month low of 217,000, showing a stronger labor market than expectations of an increase to 226,000. The US June Chicago Fed national activity index rose +0.06 to -0.10, stronger than expectations of -0.15. The July S&P US manufacturing PMI fell -3.4 to 49.5, weaker than expectations of 52.7 and the lowest level in 7 months. US June new home sales rose +0.6% m/m to 627,000, weaker than expectations of +4.3% m/m to 650,000. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 63% at the following meeting on September 16-17. EUR/USD (^EURUSD) today is up by +0.04% and posted a 2.5-week high. Signs of strength in the Eurozone economy boosted the euro today after the Eurozone July S&P manufacturing PMI rose to a 3-year high and the July S&P composite PMI rose to an 11-month high. The euro also garnered support today after the ECB kept interest rates unchanged and said the Eurozone economy has so far proven resilient. However, the euro was undercut by comments from ECB President Lagarde, who said the economic risks to the Eurozone are tilted to the downside and a stronger euro could dampen inflation more than expected. The Eurozone July S&P manufacturing PMI rose +0.3 to a 3-year high of 49.8, right on expectations. The Eurozone July S&P composite PMI rose +0.4 to an 11-month high of 51.0, stronger than expectations of +0.1 to 50.7. Eurozone June new car registrations fell -7.3% y/y to 1.010 million units, the largest decline in 10 months. The German Aug GfK consumer confidence index unexpectedly fell -1.2 to a 4-month low of -21.5, weaker than expectations of an increase to -19.3. As expected, the ECB kept the deposit facility rate unchanged at 2.00%. The ECB said, "Inflation is currently at the 2% medium-term target" and the economy has so far proven resilient, but the environment remains uncertain due to trade disputes. Swaps are pricing in a 26% chance of a -25 bp rate cut by the ECB at the September 11 policy meeting. USD/JPY (^USDJPY) today is up by +0.03%. The yen fell from a 2-week high against the dollar today and turned slightly lower after the Nikkei Stock Index rallied to a 1-year high, which reduced the safe-haven demand for the yen. Losses in the yen accelerated after T-note yields rose. The yen initially moved higher today on speculation that the BOJ is closer to raising interest rates, following Wednesday's trade agreement between the US and Japan, which removed uncertainty from the market. The yen continues to be undercut by concerns that the LDP's loss of its majority in Japan's upper house in Sunday's elections may lead to fiscal deterioration in Japan's government finances, as the government boosts spending and implements tax cuts. Today's Japanese economic news was mixed for the yen. The Japan July S&P manufacturing PMI fell -1.3 to 48.8. However, the July S&P services PMI rose +1.8 to a 5-month high of 53.5. August gold (GCQ25) today is down -21.7 (-0.64%), and September silver (SIU25) is down -0.193 (-0.49%). Precious metals are under pressure today as an easing of global trade tensions has reduced safe-haven demand for the metals. The US and Japan agreed to a trade deal on Wednesday, and Bloomberg reported that the European Union (EU) and the US are progressing toward a trade agreement. Higher global bond yields today are also undercutting the prices of precious metals. In addition, today's action by the ECB to keep interest rates unchanged, along with its post-meeting statement that the Eurozone economy is proving resilient, was bearish for precious metals. Precious metals prices have underlying support after the dollar index slipped to a 2.5-week low. Precious metals continue to receive safe-haven support from geopolitical risks, including the conflicts in Ukraine and the Middle East. Fund buying of precious metals continues to support prices after gold holdings in ETFs rose to a two-year high on Wednesday, and silver holdings in ETFs reached a three-year high on the same day. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Possible EU-US Trade Deal Weighs on the Dollar
The dollar index (DXY00) on Wednesday fell by -0.18%. The dollar gave up an early advance Wednesday and fell to a 2-week low. Improved prospects for an EU trade agreement with the US boosted the euro and undercut the dollar. The dollar also fell after US existing home sales fell more than expected to a 9-month low. The dollar initially moved higher on Wednesday on reduced global trade tensions following the US's agreement to a trade deal with Japan. Also, stronger T-note yields on Wednesday improved the dollar's interest rate differentials. More News from Barchart Dollar Falls due to Lower T-note Yields Dollar Weakens and Gold Rallies as T-note Yields Slide Will Metals Stay in the Spotlight Wednesday? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! US June existing home sales fell -2.7% m/m to a 9-month low of 3.93 million, weaker than expectations of -0.7% to 4.00 million. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 4% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17. EUR/USD (^EURUSD) Wednesday rose by +0.13%. The euro recovered from early losses Wednesday and climbed to a 2-week high on a report that said EU negotiators were close to a trade deal with the US. Also, the larger-than-expected increase in the Eurozone Jul consumer confidence index to a 4-month high was bullish for the euro. In addition, expectations for the ECB to keep interest rates unchanged at Thursday's policy meeting are supportive for the euro. The Eurozone Jul consumer confidence index rose +0.6 to a 4-month high of -14.7, stronger than expectations of +0.3 to -15.0. Diplomats briefed on the situation said the European Union (EU) and the US are progressing toward an agreement that would set a 15% tariff for most imports, lower than the 30% rate President Trump had threatened on EU goods if no trade agreement is reached by August 1. Swaps are pricing in a 1% chance of a -25 bp rate cut by the ECB at Thursday's policy meeting. USD/JPY (^USDJPY) Wednesday fell by -0.04%. The yen rose to a 1.5-week high against the dollar Wednesday after the US and Japan reached a trade agreement. The yen also garnered support today on hawkish comments from BOJ Deputy Governor Uchida, which pushed the 10-year JGB bond yield up to a 16-year high of 1.616%. This was prompted by his statement that the trade deal between the US and Japan brings the BOJ closer to raising interest rates. Limiting gains in the yen on Wednesday were higher T-note yields. The upside in the yen in the near term may be limited due to concerns that the LDP's loss of its majority in Japan's upper house in Sunday's elections may lead to fiscal deterioration in Japan's government finances, as the government boosts spending and implements tax cuts. BOJ Deputy Governor Uchida said, 'Uncertainty has receded' after a trade deal was made with Japan and the US, which will push the BOJ closer to a rate hike by boosting the prospects for suitable economic conditions. President Trump announced a trade deal with Japan late Tuesday, which will impose 15% tariffs on US imports from Japan, lower than the previously flagged 25% rate set to take effect on August 1. The deal also creates a $550 billion fund for Japan to make investments in the US. Japan also agreed to purchase 100 Boeing aircraft, increase its purchases of US rice by 75%, and buy $8 billion in other agricultural products, while raising its defense spending with American firms to $17 billion annually, from $14 billion. August gold (GCQ25) Wednesday closed down -46.1 (-1.34%), and September silver (SIU25) closed down -0.052 (-0.13%). Precious metals on Wednesday gave up an early advance and retreated as easing global trade tensions curbed safe-haven demand for the metals. Trade tensions eased after the US and Japan agreed to a trade deal, and after diplomats briefed on the situation stated that the European Union (EU) and the US are progressing toward an agreement that would impose a 15% tariff on most imports. Wednesday's rally in the S&P 500 to a new record high also sparked long liquidation in precious metals. Higher global bond yields on Wednesday also undercut the prices of precious metals. In addition, hawkish comments from BOJ Deputy Governor Uchida weighed on precious metals when he said the trade deal between Japan and the US pushes the BOJ closer to a rate hike. Silver prices also slipped after US existing home sales fell more than expected to a 9-month low, a negative factor for industrial metals demand. Gold prices on Wednesday initially climbed to a 5-week high, and Sep silver posted a contract high while nearest-futures (N25) silver posted a 14-year high. Weakness in the dollar on Wednesday was supportive for metals prices, as the dollar index fell to a 2-week low. Precious metals continue to receive safe-haven support from geopolitical risks, including the conflicts in Ukraine and the Middle East. Fund buying of precious metals continues to support prices after gold holdings in ETFs rose to a two-year high on Tuesday, and silver holdings in ETFs reached a three-year high on the same day. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
