Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

Americas Roundup: Dollar regains ground, Treasury yields slip on inflation, Gold hits 2-1/2-week high, Oil rallies nearly 2 pct on China import boost, U.S.-Iran tensions-October 14th, 2017

Market Roundup

• US Core CPI MM, SA Sep, 0.1%, 0.2% forecast, 0.2% previous.

• US Core CPI YY, NSA Sep, 1.7%, 1.8% Rtrs f/c, 1.7% previous.

• US CPI MM, SA Sep, 0.5%, 0.6% forecast, 0.4% previous.

• US CPI YY, NSA Sep, 2.2%, 2.3% forecast, 1.9% previous.

• US Real Weekly Earnings MM Sep, -0.1%, -0.3% Rtrs f/c, -0.6% previous.

• US Retail Sales MM Sep, 1.6%, 1.7% forecast, -0.2% previous.

• US Business Inventories MM Aug, 0.7%, 0.7% forecast, 0.2% previous.

• US U Mich Sentiment Prelim Oct, 101.1, 95.0 forecast, 95.1 previous.

• Trump strikes blow at Iran nuclear deal in major US policy shift.

• ECB sticks with bad loan proposal amid growing backlash.

• Fed's Rosengren supports rate hikes, assails rigid rules.

• Fed's Kaplan backs periodic review of US inflation target.

Looking Ahead - Economic Data (GMT)

• No significant events

Looking Ahead - Events, Other Releases (GMT)

• 17:00 ECB’ Mario Draghi hold a news conference in Washington (Oct 14)

• 16:45 IMFC press conference in Washington (Oct 14)

• 13:00 Bank of Japan Governor Haruhiko Kuroda addressing a seminar (Oct 15)

• 13:00 Fed’s Janet Yellen participates in a seminar in Washington (Oct 15)

• 07:30 EU Foreign Affairs Council meeting in Luxembourg (Oct 16)

 Currency Summaries

EUR/USD is likely to find support at 1.1800 levels and currently trading at 1.1818 levels. The pair has made session high at 1.1876 and hit lows at 1.1808 levels. The euro declined against the U.S. dollar on Friday as greenback recovered ground, shaking off early weakness, after data showed U.S. consumer prices rose less than expected in September, pointing to muted inflation that could worry Federal Reserve officials. The Labor Department said on Friday its Consumer Price Index jumped 0.5 percent last month after advancing 0.4 percent in August. Economists polled had forecast a 0.6 percent increase. September's increase was the biggest in eight months, but it stemmed mostly from soaring gasoline prices after hurricane-related production disruptions at Gulf Coast area oil refineries. Underlying inflation remained muted. The dollar index, which tracks the greenback against six major currencies, was up 0.02 percent at 93.072 after falling to a more than two-week low of 92.749. The index was down about 0.75 percent for the week, its worst weekly performance in five. The dollar edged higher after U.S. President Donald Trump struck a blow against the 2015 Iran nuclear agreement, choosing not to certify that Tehran is complying with the deal and warning he might ultimately terminate it. The euro was down 0.07 to $1.1821.

GBP/USD is supported in the range of 1.3244 levels and currently trading at 1.3293 levels. It reached session high at 1.3334 and dropped to session low at 1.3280 levels. Sterling rose to 11-day high against the greenback on Friday as signs that Britain is to be offered a two-year Brexit transition deal boosted sterling across the board. Sterling has been on a rollercoaster ride in the past two weeks, last week suffering its worst week in a year on domestic political and economic worries, and this week see-sawing on reports that have offered conflicting accounts of progress made in divorce talks between Britain and the European Union. The pound dropped almost half a cent against the dollar in a minute in morning trade in London on Friday, after a German government spokesperson warned "time is running out" for Britain to negotiate the deal it wants. Sterling had flip-flopped on Thursday, too, falling sharply after the EU's chief Brexit negotiator Michel Barnier told reporters that talks around Britain's divorce payment had hit an "impasse", and then shooting up after a report the bloc could offer a two-year transitional Brexit deal. Sterling added to its earlier gains after data showed underlying U.S. inflation remained muted, knocking the dollar down across the board and sending the pound to as high as $1.3323, its strongest since Oct. 2. By 1930 GMT, it has eased back to $1.3289, still up 0.2 percent on the day.

USD/CAD is supported at 1.2450 levels and is trading at 1.2475 levels. It has made session high at 1.2520 and lows at 1.2456 levels. The Canadian dollar was little changed against its U.S. counterpart on Friday, clawing back earlier losses as oil prices rose and as data showing weaker-than-expected U.S. underlying inflation weighed on the greenback. The U.S. dollar retreated against a basket of major currencies after a modest reading in the core CPI, which is likely to worry Federal Reserve officials who have been engaged in a vigorous debate on the inflation path. In contrast, the Bank of Canada pulled the trigger with two rate increases since July, trusting its projections and betting that stronger growth will help push inflation to its target by the middle of next year. Prices of oil, one of Canada's major exports, were boosted by strong Chinese oil imports and turmoil in the Middle East. The resale of Canadian homes grew 2.1 percent in September from August, led by gains in Toronto and Vancouver, suggesting national sales may be stabilizing after cooling sharply in the spring, the Canadian Real Estate Association said. The Canadian dollar was little changed at C$1.2474 to the greenback, or 80.19 U.S. cents. The currency traded in a range of C$1.2450 to C$1.2512.

AUD/USD is supported around 0.7866 levels and currently trading at 0.7884 levels. It hit session high at 0.7895 and made session lows at 0.7869 levels. The Australian dollar rose for a fourth straight session on Friday and was poised for its first weekly gain since early September. The gains have come on the back of a subdued greenback which is down 0.8 percent so far this week on a combination of factors including speculation that further tightening by the U.S. Federal Reserve will proceed at a snail's pace.The Aussie was also supported by record high iron ore imports by China in September, data out on Friday showed, in a boost for Australia's commodity-driven economy. Iron ore is Australia's single biggest export earner while China is its No.1 trading partner. Locally, the Reserve Bank of Australia (RBA) released its half-yearly Financial Stability Review in which it warned that higher interest rates could hit the country's heavily-indebted households. The RBA has held interest rates at a record low 1.50 percent for more than a year as it juggles lukewarm inflation, slow wages growth and sky-rocketing household debt. Lowe recently warned that households should be preparing for rising rates, albeit not for some time yet. The Australian dollar edged 0.22 percent higher to $0.7834, the highest since Oct. 5. For the week, the Aussie is up 0.8 percent, after falling for four weeks on the trot.

Equities Recap

European shares hit their highest in nearly four months on Friday, helped by gains in Bayer, after the German drugmaker sold assets that will pave the way for its acquisition of Monsanto.

UK's benchmark FTSE 100 closed down by 0.01 percent, the pan-European FTSEurofirst 300 ended the day up by 0.32 percent, Germany's Dax ended up by 0.01 percent, France’s CAC finished the day flat.

U.S. stocks rose on Friday, hitting record highs again, helped by upbeat sentiment and retail sales data as well as gains in technology shares.

Dow Jones closed up by 0.17 percent, S&P 500 ended up 0.11 percent, Nasdaq finished the day up by 0.22 percent.

Treasuries Recap 

U.S. Treasury yields fell to two-week lows on Friday after consumer price data showed still benign inflation, disappointing investors who had expected it to improve.

Benchmark 10-year notes gained 13/32 in price to yield 2.278 percent, the lowest since Sept. 27, and down from 2.323 percent on Thursday.

Commodities Recap

Gold rose to a 2-1/2-week high on Friday after U.S. President Donald Trump warned he might ultimately end a 2015 nuclear agreement with Iran and after weak U.S. inflation data undermined the case for interest rate rises.

Spot gold rose for a sixth straight session on Friday, and was up 0.8 percent at $1,303.5 an ounce by 3:53 p.m. EDT (1953 GMT), after hitting $1,302.40, the highest since Sept. 26. It was set for a weekly gain of 2 percent.

U.S. gold futures for December delivery settled up $8.10, or 0.6 percent, at $1,304.60 per ounce, also touching the highest level in more than two weeks.

Oil prices on Friday closed at their highest level in October on bullish news from strong Chinese oil imports, U.S. President Donald Trump's decision not to certify that Iran is complying with a nuclear agreement and other tensions in the Middle East.

Brent futures gained 92 cents, or 1.6 percent, to settle at $57.17 a barrel, while U.S. crude rose 85 cents, or 1.7 percent, to settle at $51.45 per barrel.
 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.