USD news - page 26
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Dollar falls to 6-week lows as Trump fears weigh
The dollar fell against a currency basket on Monday as the lack of economic policy detail in U.S. President Donald Trump’s inauguration speech coupled with concerns over his protectionist rhetoric weighed.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.44% to 100.33, the lowest level since December 8.
The index climbed around 3.5% since Trump’s election win in November, buoyed by expectations that his pledges to cut taxes and hike infrastructure spending would spur growth in the U.S. economy, leading to inflation and higher interest rates.
But the index has fallen 1.9% so far this month amid a lack of clarity over his economic policies, worries over his protectionist stance and following recent remarks in which he said the dollar was too strong.
On Friday, Trump said his administration would put "America first" and also promised new roads, bridges and highways.
But market sentiment was hit by the negative tone of the speech, which underlined uncertainty over how Trump will govern.
The dollar was sharply lower against the traditional safe haven yen, with USD/JPY trading at 113.55, off 0.94% after touching overnight lows of 113.17.
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January 2017 US Philly Fed non-manufacturing index 37.7 vs 19.5 prior
January 2017 US Philly Fed non-manufacturing 24 January 2017
December US existing home sales 5.49m vs 5.51m expected
US existing home sales from the National Association of Realtors
USD: Here Is Why The Divergence Trade Is Actually Strengthening
The ECB’s already-low forecast of 1.1 percent for core HICP this year is subject to downside risk. This analysis for core is compatible with our Rates strategists' view of long Euro zone breakeven inflation as a 2017 Top Trade, given that the dynamics of headline and core inflation are different. Their trade aims to capitalize on a normalization of an “excessive” deflation risk premium, which may also lead to a rebuilding of term premia in nominal European government bonds.
The same downside risk exists in Japan, where a large rebound in core inflation is needed for the BoJ to meet its forecast of 1.5 percent in FY2017, especially given that the appreciation of the Yen over the past year is only now feeding into the data. Special factors – large amounts of slack and periphery structural reforms in the Euro zone and entrenched low inflation expectations in Japan – will keep underlying inflation low in both places, so that further ECB tapering or a hike in the 10-year yield target from the BoJ are unlikely this year.
The “global reflation” theme has therefore drowned out what in reality are increasingly divergent fundamentals in the G10, so that what markets are calling “global reflation” is really a strengthening of the divergence theme that will ultimately drive the Dollar stronger.
source
US MBA mortgage purchase index up 6% at 243.2 w/e 20 Jan
US MBA mortgage report released a few moments ago 25 Jan
Dollar wallows near seven-week lows on Trump protectionism
The dollar struggled near seven-week lows on Thursday on growing concerns over U.S. President Donald Trump's protectionist policies including an executive order to construct a U.S.-Mexican border wall.
The dollar index (DXY), which tracks the greenback against a basket of major currencies, was last down 0.2 percent at 99.839. It dipped to 99.835 on Wednesday, its lowest level since Dec. 8.
The dollar was generally weaker despite U.S. shares gaining and the Dow Jones Industrial Average (DJI) closing atop the 20,000 mark for the first time. (N)
Trump has made several business-friendly decisions since taking office on Friday, including signing executive orders to reduce regulatory burden on domestic manufacturers and clearing the way for the construction of two oil pipelines.
However, the president's broad but divisive plans to reshape U.S. immigration and national security policy rattled some investors partly as the U.S. needs foreign capital to finance its large current account deficit.
Trump on Wednesday ordered construction of a U.S.-Mexican border wall and punishment for cities shielding illegal immigrants while mulling restoring a CIA secret detention program.
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Initial jobless claims 259K vs 247K expected
Weekly US initial jobless claims data
January 2017 US Markit services PMI flash 55.1 vs 54.4 exp
January 2017 US Markit services PMI flash
Markit report highlights;
December 2016 US new home sales 0.536m vs 0.588m exp
Details of the December 2016 US new home sales data report 26 January 2017
Trump and Hannity some highlights from the interview
Trump and Hannity