Latest news with #GBPUSD
Business Standard
17 hours ago
- Business
- Business Standard
Dollar index sinks below 99 mark amid renewed US-China tariff tensions
The US dollar index sank under 99 mark on Monday amid renewed trade tensions between the United States (US) and China after the US President Donald Trump claimed on Friday that China had violated their trade agreement. In a counter statement on Monday, Chinas Ministry of Commerce said the US had seriously undermined the agreement reached during Geneva talks in May, where both nations agreed to significantly lower tariffs on each other's goods. If the US persists in its unilateral approach and continues to harm China's interests, China will resolutely take strong measures to safeguard its legitimate rights and interests, the MOFCOM spokesperson noted. The dollar also weakened after President Donald Trump announced on Friday that the US will double tariffs on steel imports to 50% starting June 4. The dollar index that measures the greenback against a basket of currencies is quoting at 98.63, down more than half a percent. Among basket currencies, EURUSD and GBPUSD are staying elevated by more than 0.6% at $1.1446 and $1.3554 respectively. Meanwhile, investors now await Powell speech and US ISM Manufacturing PMI for May for further cues.
Business Standard
26-05-2025
- Business
- Business Standard
Dollar index tanks below 99 mark amid Trump tariff uncertainty
The dollar index is lingering at an over one month low on Monday morning in Asia as US President Donald Trump stayed uncertain on his trade stance, denting investors confidence on US assets. Donald Trump extended a deadline for EU trade deal until 9 July, following a call with European Commission president. Trump had threatened to impose 50 percent tariffs on imports from the European Union beginning June 1st, claiming talks with the bloc are "going nowhere." The US dollar index that measures the greenback against a basket of currencies is quoting lower at 98.74. The index tanked below 99 mark amid a steady decline since hitting above 101 mark earlier in the month. Growing concerns around the US fiscal outlook is also adding pressure on the greenback. Meanwhile, EURUSD and GBPUSD recovered some of its lost ground and are quoting higher by 0.3% at $1.1421 and $1.3578 respectively. Meanwhile, Minneapolis Federal Reserve President Neel Kashkari reportedly said in a speech that he expects to see interest rates on hold for now as U.S. data have yet to show the full impact of tariffs, which could limit some losses in the counter.
Globe and Mail
23-05-2025
- Business
- Globe and Mail
Cocoa Prices Plummet on Improved Prospects for West African Cocoa Crop
July ICE NY cocoa (CCN25) today is down -434 (-4.22%), and July ICE London cocoa #7 (CAN25) is down -455 (-6.41%). Cocoa prices today plummeted to 1-1/2 week lows as forecasts for favorable rain in West Africa are expected to aid cocoa crop development in the world's largest cocoa-growing regions. Meteorologist Vaisala said that moderate showers are expected to continue into next week in the cocoa-growing regions of West Africa. Losses in London cocoa accelerated today when the British pound (^GBPUSD) surged to a 3-1/4 year high. The stronger pound weighed on cocoa futures that are priced in terms of sterling. Signs of ample cocoa inventories are also weighing on prices. ICE-monitored cocoa inventories held in US ports climbed to a 7-3/4 month high Thursday of 2,167,990 bags. On Tuesday, NY cocoa rallied to a 3-1/2 month nearest-futures high as the pace of Ivory Coast cocoa exports has slowed, signaling tighter future cocoa supplies. Monday's government data showed that Ivory Coast farmers shipped 1.58 MMT of cocoa to ports this marketing year from October 1 to May 18, up +10.5% from last year but down from the much larger +35% increase seen in December. Weather concerns in West Africa are also supporting cocoa prices. Despite the recent rains in West Africa, drought still covers more than a third of Ghana and the Ivory Coast, according to the African Flood and Drought Monitor. Cocoa prices have rallied sharply over the past two weeks on quality concerns regarding the Ivory Coast cocoa mid-crop, which is currently being harvested through September. Cocoa processors are complaining about the crop's quality and have rejected truckloads of Ivory Coast cocoa beans. Processors said about 5% to 6% of the mid-crop cocoa in each truckload is poor quality, compared with 1% during the main crop. According to Rabobank, the poor quality of the Ivory Coast's mid-crop is partly tied to late-arriving rain in the region that limited crop growth. The mid-crop is the smaller of two annual cocoa harvests, which typically starts in April. The average estimate for this year's Ivory Coast mid-crop is 400,000 MT, down -9% from last year's 440,000 MT. A rebound in current cocoa inventories is bearish for prices. Since falling to a 21-year low of 1,263,493 bags on January 24, ICE-monitored cocoa inventories held in US ports have rebounded and climbed to a 7-3/4 month high Monday of 2,156,644 bags. Concern that consumer demand for cocoa and cocoa products will wane is weighing on prices on fears that tariffs will boost already-high cocoa prices. On April 10, Barry Callebaut AG, one of the world's biggest chocolate makers, cut its annual sales guidance in the face of high cocoa prices and tariff uncertainty. Also, chocolate maker Hershey Co. recently reported that Q1 sales fell by 14% and said it anticipated $15-$20 million in tariff costs in Q2, which will boost chocolate prices and further weigh on consumer demand. In addition, Mondelez International reported weaker-than-expected Q1 sales and said consumers are cutting back on snack purchases due to economic uncertainty and high chocolate prices. Cocoa prices also have a positive carryover from recent news that showed better-than-expected global cocoa demand. Q1 North American cocoa grindings fell -2.5% y/y to 110,278 MT, better than expectations of at least a -5% y/y fall. Also, Q1 European cocoa grindings fell -3.7% y/y to 353,522 MT, a smaller decline than expectations for a -5% y/y drop. In addition, Q1 Asian cocoa grinding fell -3.4% y/y to 213,898 MT, a smaller decline than expectations for a fall of at least -5% y/y. Smaller cocoa supplies from Ghana, the world's second-biggest cocoa producer, are supportive for prices after Cocobod, Ghana's cocoa regulator, cut its Ghana 2024/25 cocoa harvest forecast in December for the second time this season to 617,500 MT, down -5% from an August estimate of 650,000 MT. The International Cocoa Organization (ICCO), on February 28, said the 2023/24 global cocoa deficit was -441,000 MT, the largest deficit in over 60 years. ICCO said 2023/24 cocoa production fell -13.1% y/y to 4.380 MMT. ICCO said the 2023/24 global cocoa stocks/grindings ratio was 27.0%, a 46-year low. Looking ahead to 2024/25, ICCO on February 28 forecasted a global cocoa surplus of 142,000 MT for 2024/25, the first surplus in 4 years. ICCO also projected that 2024/25 global cocoa production will rise +7.8% y/y to 4.84 MMT. 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. For more information please view the Barchart Disclosure Policy here.
Business Standard
23-05-2025
- Business
- Business Standard
GBPUSD hits fresh 3-year high
The Great Britain pound accelerated gains to climb over half a percent on the day against the dollar on Friday following better than expected economic data. The Office for National Statistics (ONS) reported that Retail Sales, a key measure of consumer spending, rose at a robust pace of 1.2% on the month, compared to estimates of 0.2% and the 0.1% growth seen in March, revised lower from 0.4%. On year, the consumer spending measure grew by 5%, faster than expectations of 4.5% and the prior release of 2.6%. Besides, flash UK S&P Global Purchasing Managers Index (PMI) data for May came in better-than-expected. Weakness in the dollar overseas also contributed to gains in the counter. GBPUSD pair hit a fresh three year high of $1.3494, its highest level since February 2022. On the NSE, GBPINR pair edged lower at 115.10 amid broad strength in INR.
Yahoo
13-05-2025
- Business
- Yahoo
Gold prices rise as investors 'value-buying' after US-China tariff truce
Gold prices recovered some ground on Tuesday morning, after having fallen following news of a tariff truce between the US and China, reducing the precious metal's appeal as a safe-haven asset. Gold futures (GC=F) jumped 1% to $3,261.40 per ounce on Tuesday morning, while the spot gold price climbed 0.6% to $3,255.44 per ounce at the time of writing. Prices for the precious metal slumped on Monday, after it was announced that the US and China had agreed to temporarily cut tariffs on each other's imports, marking a de-escalation in recent trade tensions. US Treasury secretary Scott Bessent told reporters that the two countries had agreed to lower their tariffs by 115% for 90 days, following negotiations in Switzerland over the weekend. Read more: FTSE 100 LIVE: Stocks cautiously higher as UK job market weakens Investors had been flocking to gold amid concerns over US president Donald Trump's tariff agenda, as it is considered to act a stable store of value, acting as a hedge in times of economic and political uncertainty. An easing of trade tensions on Monday, therefore, dented the precious metal's appeal, as investors pivoted back to stock markets. According to a Reuters report, KCM Trade chief market analyst Tim Waterer said there had been "some value-buying happening on gold at current levels which is helping to prop up the price, despite the generally better outlook for global growth with the US and China on better terms". "The consolidation move in the dollar has allowed the gold price to make a mild push higher," he said. The pound rose against the dollar (GBPUSD=X) on Tuesday, up 0.3% to $1.3208, supported by weakness in the greenback. The US dollar index, ( which measures the greenback against a basket of six currencies, dipped 0.3% to 101.53 at the time of writing, as optimism over the US-China tariff deal appeared to wane slightly. Meanwhile, data released by the Office for National Statistics (ONS) on Tuesday, showed that UK pay growth slowed in the three months to March. The rate of unemployment also inched higher in that period, while the number of job vacancies fell in the three months to April and early estimates showed that the number of payrolled employees fell last month. This all signalled that the UK jobs market had started to cool. Neil Wilson, UK investor strategist at Saxo Bank, said that "UK employment data shows cracks emerging, which supports a more dovish bias from the Bank of England (BoE)". Read more: UK pay growth slows as job market cools amid uncertainty He added that the "BoE should not be hanging about and get in there with cuts, the inflation is not the problem now". Meanwhile, data from the British Retail Consortium, also published on Tuesday, showed a 7% increase year-on-year in UK retail sales. That was up from a 4% decline recorded in April 2024 and was above average three-month growth of 2.9% and a 12-month average of 1.4%. Derren Nathan, head of equity research at Hargreaves Lansdown, said: "This was boosted both by the favourable timing of Easter and the sunniest April on record. A more meaningful comparison looked at March and April combined. "Here the trend still moved in the right direction but to the much smaller tune of 0.2% which is unlikely to offset the impact of higher wages and employers' National Insurance contributions on profits." In other currency moves, the pound rose against the euro (GBPEUR=X), up 0.2% to trade at €1.1887 at the time of writing. Oil prices were little changed on Tuesday morning, as investors weighed the latest developments around global trade. Brent crude futures (BZ=F) traded at $64.93 a barrel, while West Texas Intermediate futures (CL=F) dipped 0.2% to $61.80 a barrel. Read more: Stocks that are trending today Nathan said: "Tariff optimism hasn't been enough to maintain the upward trajectory of Brent crude oil prices." "The loosening supply environment is keeping a lid on momentum, with OPEC+ signalling increased output in May and June and traders evaluating the prospect of lighter sanctions on Iran and Russia." More broadly, the FTSE 100 (^FTSE) was muted on Tuesday morning, trading at 8,605 points at the time of writing. For more details, check our live coverage here. Read more: Pension funds deal to back £50bn of investment for UK private markets and infrastructure Bank of England interest rate-setters want inflation down before more cuts Why it's important to plan for retirement with your partnerError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
