The U.S. dollar climbs in early Thursday trading, retracing some of its losses from the previous session that it incurred after the Federal Reserve reiterated its dovish monetary policy stance.
The European Union proposed a conditional extension of the Brexit deadline until May 22 -- when elections for the European Parliament begin -- in draft conclusions of a European Council meeting Thursday, according to reports. However, the extension would be tied to the U.K. Parliament supporting Prime Minister Theresa May's withdrawal deal. The deal, or an amended version thereof, is expected to be put to vote next week. The EC said an extension beyond May 22 was impossible due to the EU elections, which the U.K. isn't intending to take part in. May had requested an extension until June 30. At present, the U.K. is set to leave the EU on March 29 without a trade deal in place. The British pound , dropped to a session-low of $1.2981 shortly before the extension proposal became known. It was its lowest level in about two-weeks. Sterling last bought $1.3046, down 1.1% from Wednesday. The euro , meanwhile, bought £0.8700, up 0.6%.
(Reuters) - Euro zone consumer confidence rose by 0.2 point in March from the February number, figures released on Thursday showed. The European Commission said a flash estimate showed euro zone consumer ...
Investing.com - The U.S dollar rose sharply against its rivals Thursday amid upbeat manufacturing data and a slump in sterling.
ADP to release February Canadian Employment Change number today. Trump says US tariffs may sustain for a certain period.
London markets gained as investors digested a positive U.K. retail sales surprise and a third vote on the Brexit transition agreement began to look more likely, news that roiled the pound. How did markets perform? The FTSE 100 (UK:UKX)(UK:UKX) rose 0.
Based on the current price at 1.1393 and the earlier price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1377 and the 50% level at 1.1374.
The Bank of England left its main lending rate unchanged at 0.75% on Thursday, in line with expectations. The central bank said new economic data has been mixed and the U.K.'s economic outlook will depend significantly on the nature and timing of Brexit. "Shifting expectations about the potential nature and timing of the United Kingdom's withdrawal from the European Union have continued to generate volatility in UK asset prices, particularly the sterling exchange rate," said the BOE statement. "Brexit uncertainties also continue to weigh on confidence and short-term economic activity, notably business investment." The market reaction to the policy update was muted, with the British pound holding its losses in response. Sterling last bought $1.3115, down 0.6%. In other assets, the 10-year gilt also reacted little, last yielding 1.08%, while U.K. stock benchmark FTSE 100 held on to its modest gain, last up 0.4%
Traders should note that just because the Fed turned increasingly dovish, a bull market in gold is not a given. Gains could be limited by a surge in demand for risky assets like stocks. Furthermore, safe-haven demand for the U.S. Dollar due to concerns over U.S.-China trade relations could also put a lid on gold prices.
The Dow was flat by 9:42 AM ET (13:42 GMT), while the S&P; 500 gained 1 point, or 0.1%, and the tech-heavy Nasdaq composite rose 13 points, or 0.18%.
The US Federal Reserve yesterday demonstrated a sharp easing of monetary policy plans, triggering a wave of dollar sales. Despite the fact that the markets tuned in to a very mild tone of comments, the US Central Bank managed to surprise the market.
Gold prices jumped on Thursday as the yield on the 10-year Treasury note fell to a 14e-month low after the Federal Reserve indicated it would not raise rates for the rest of the year. Comex gold futures for April delivery had hit a three-week high after the Fed's announcements and retraced only marginally to $1,317.35 an ounce by 9:01 AM ET (13:01 GMT). Meanwhile, the yield on the United States 10-Year benchmark note fell another 1.8 basis points to 2.52%, some 8 basis points below where it was before the Fed, and a level not seen since January 2018.
We were not expecting much of the hawkishness from FOMC yesterday but the amount of the dovishness was really surprising for the market participants.
The AUD/USD is rallying because the drop in the jobless rate is lowering expectations the Reserve Bank of Australia (RBA) won’t cut interest rates any time soon. However, traders still believe the RBA will make its first rate cut in August. Although New Zealand’s economy grew less than the Reserve Bank of New Zealand (RBNZ) expected in the fourth quarter, the price action in the NZD/USD indicates the data is not likely to spur any change in the Reserve Bank’s message at next week’s policy review.
British Pound is trading range bound as investors have taken a cautious stance awaiting directional cues from today’s major events.
The USD/JPY could see further downside pressure over the long-term if the slowing economy worsens and opens the door for a potential rate cut later this year if the economy slows as much as some analysts fear.
A 2019 pause on interest rate hikes by the FED may not be enough should U.S – China trade talks lack progress. It could be a telling end to the week.