The U.S. dollar declined on Thursday, pulling back from a 2018 high on renewed trade-war jitters after the Trump administration said it was investigating whether to slap import tariffs on cars. The ICE U.S. Dollar Index (IFUS:DX-Y.NYB) dropped 0.2% to 93.785, after rising to its highest level since mid-December on Wednesday.
Investing.com - Sterling was higher on Thursday after UK retail sales came in higher than expected, boosting confidence in the economy.UK retail sales rose 1.6% in April, compared to expectations for a 0.1% gain, the Office for National Statistics reported. The unexpected increase indicates consumer confidence in the UK economy, despite political uncertainty surrounding Brexit.GBP/USD surged 0.46% to a one-day high of 1.3410 as of 4:43 AM ET (8:43 GMT).The euro was also higher, but was held back by economic and political worries in Europe. ...
Before Italy’s general election in March, strategists said the worst-case scenario for equity markets would be an anti-establishment coalition government. Giuseppe Conte is on track to become the new prime minister, with a pair of populist parties — the 5 Star Movement and the League — picking the little-known law professor as a compromise candidate to head their coalition. The new government represents “the worst-case scenario,” with its plans worrying investors, but there are some reassuring factors, said Seema Shah, an investment strategist at Principal Global Investors.
By Tom Finn LONDON (Reuters) - The euro rose off a six-month low on Thursday as China signaled its confidence in the single currency but concerns over an economic slowdown in Europe and political risks in Italy continued to act as a brake. The euro is set to slump for a sixth consecutive week against the dollar -- the longest weekly losing streak since January 2015 -- hobbled by worries over a deepening economic slowdown in the currency bloc. On Thursday China's Premier Li Keqiang said China was a long-term and responsible investor in the euro and hoped the currency would be strong and steady in spite of the occasional sovereign debt crisis in Europe.
Investing.com – The dollar slid against major Asian currencies Thursday morning after climbing overnight to a fresh high for the year. Without any key economic data in the region, investors focused on political events that clouded the market outlook. As risk appetite soured, the safe-haven yen was sent higher.
Investing.com – Gold prices rose on Thursday as uncertainty over the trade talks between the U.S. and China supported gold’s safe-haven demand.
Investing.com – Bitcoin prices fell on Thursday amid reports that India is proposing a crypto tax in the form of the Goods and Services Tax (GST).
The Fed’s soft tone in its minutes could continue to underpin the AUD/USD and NZD/USD on Thursday. The minutes sent a clear message to investors that the Fed won’t be too aggressive on any uptick in inflation beyond the 2 percent level. This essentially means that the Fed will stick with its plan for at least two more times in 2018 and its strategy of raising interest rates gradually.
The FOMC minutes may have eased demand for the Dollar, but with UK retail sales figures, Carney and the ECB’s monetary policy minutes in focus today, it could all swing back in the Dollar’s favor.
Gold markets have gone back and forth during the trading session on Wednesday, as we have bounced to and fro, using the $1300 level as resistance. The Gold markets will continue to struggle under the strengthening US dollar, and of course the geopolitical concerns.
The US dollar fell significantly during the trading session on Wednesday, as the Japanese yen gained strength after Donald Trump suggested that perhaps talks with North Korea may not be as fruitful as people are hoping, and of course the conversation with China may not be fruitful.
The US dollar rose significantly against the Canadian dollar during the trading session on Wednesday, reaching towards the 1.29 level above. That’s an area that has been resistance more than once, and it appears that the range continues to hold.
The Kiwi dollar was very noisy during trading on Wednesday, as we continue to dance around the 0.69 level. This is an area that is relevant to the market in the short term, but I do think that we have bigger fish to fry.
The British pound broke down significantly during the day on Wednesday, slicing below the 1.34 level, and driving much lower as well. I believe that the market does continue to go much lower than that, and I think at this point it’s very likely that rallies will invite more selling, as the pair simply cannot find its footing and we have broken down below a major trend line recently.
The British pound has broken down through a major uptrend line during the day on Wednesday against the Japanese yen, has bounced to test that support level for resistance, but then started to roll over again.
The Euro fell significantly during the trading session on Wednesday, breaking below the 1.17 handle. The market looks likely to continue to go to the downside, as the Euro has fallen apart in general. There are a lot of concerns in the European Union, not the least of which of course would be the Italian situation.
The EUR/GBP pair was very noisy during trading on Wednesday, testing the vital 0.88 level for resistance. I believe that the market continues to respect this level, at least in the short term as difficult condition should continue.
The Australian dollar has fallen again during the last 24 hours, as we had recently tried to break above a significant uptrend line that should have, and in the end did, offer significant resistance. By doing so, it’s likely that the market should continue to grind lower overall, but we may get a short-term bounce as we are approaching support.
Investing.com – Bitcoin fell below $8,000 on Wednesday as ongoing negative sentiment forced traders to abandon their bullish crypto holdings, wiping more than $30 billion off the crypto market.
Investing.com – Gold prices traded flat on Tuesday pressured by a rally in the dollar to six-month highs but losses were limited as rising geopolitical uncertainty triggered demand for safe-haven assets.
Investing.com – The dollar remained at six month highs against its rivals on Wednesday following mostly bullish data pointing to underlying strength in the U.S. economy, while a sharp decline in both the pound and euro supported upside momentum.