NEW YORK Investors sitting on a mountain of cash built up since late last year may be paying a price for playing it too safe in the first weeks of 2019.
NEW YORK The dollar edged higher against a basket of currencies on Friday, ending its strongest week in six months, as traders piled into the greenback in a safe-haven move on worries about a weakening global economy.
(Corrects in headline, first graph to read six months, not
* Mystery buyer keeps the single currency supported above
* Chinese markets shut for Lunar New Year hold down
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Richard Leong
NEW YORK, Feb 8 The dollar held steady against a
basket of currencies on Friday, keeping it on track for its
strongest weekly gain in six months, as traders piled into the
greenback in a safe-haven move on worries about a weakening
The euro hovered at a two-week low with support at $1.13.
The single currency was briefly set for its steepest weekly drop
in four months earlier on Friday in the wake of data that showed
an economic slowdown in Europe was spreading.
"The rally that propelled the dollar broadly higher last
year has enjoyed renewed life with U.S. growth remaining solid
while peers abroad lose momentum," said Joe Manimbo, senior
market analyst at Western Union Business Solutions in
At 10:35 a.m. ET (1535 GMT), an index that tracks the
greenback versus the euro, yen, sterling and three other
currencies was up 0.07 percent at 96.570.
On the week, the ICE dollar index was up nearly 1 percent,
which would be its biggest weekly increase since a 1.28 percent
jump in the week of Aug. 10, 2018.
The euro was down 0.05 percent at $1.13320, putting its
weekly decline at about 0.9 percent.
The European Commission cut its growth and inflation
forecasts on Thursday as downside surprises to German and
Spanish industrial orders fueled worries about an accelerating
Those figure have weighed on local bond markets. Core
European government debt yields touched their lowest in over two
years. Benchmark German yields were just 10 basis points away
from zero percent.
U.S. yields also fell on the week, holding above the lows of
their recent trading range.
With Chinese markets closed for Lunar New Year this week,
market volatility declined.
For example, implied volatility in the euro, or expected
swings in the single currency in a month, fell earlier
this week to its lowest level since Dec. 2017 before rebounding,
according to Refinitiv data.
Anxieties about the global economy were compounded by
comments from U.S. President Donald Trump indicating he did not
plan to meet with Chinese President Xi Jinping before a March 1
deadline to achieve a trade deal.
That helped the perceived safe-haven currencies such as the
Japanese yen and the Swiss Franc hold up
against the dollar. The dollar was last at 109.75 yen,
while the greenback was down 0.22 percent at 1.00025 Swiss
Sterling was marginally lower at $1.2947. Traders
expect the pound to remain volatile because of the uncertainty
Currency bid prices at 10:19AM (1519 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1338 $1.1340 -0.02% -1.14% +1.1352 +1.1322
Dollar/Yen JPY= 109.7100 109.8000 -0.08% -0.50% +109.8900 +109.6600
Euro/Yen EURJPY= 124.41 124.52 -0.09% -1.43% +124.6900 +124.3100
Dollar/Swiss CHF= 0.9999 1.0021 -0.22% +1.89% +1.0027 +1.0000
Sterling/Dollar GBP= 1.2948 1.2953 -0.04% +1.50% +1.2975 +1.2922
Dollar/Canadian CAD= 1.3271 1.3306 -0.26% -2.68% +1.3328 +1.3232
Australian/Doll AUD= 0.7093 0.7099 -0.08% +0.62% +0.7105 +0.7061
Euro/Swiss EURCHF= 1.1339 1.1364 -0.22% +0.76% +1.1370 +1.1339
Euro/Sterling EURGBP= 0.8756 0.8757 -0.01% -2.54% +0.8765 +0.8743
NZ NZD= 0.6748 0.6746 +0.03% +0.46% +0.6766 +0.6730
Dollar/Norway NOK= 8.6111 8.5946 +0.19% -0.32% +8.6287 +8.5869
Euro/Norway EURNOK= 9.7648 9.7471 +0.18% -1.42% +9.7746 +9.7322
Dollar/Sweden SEK= 9.2558 9.2612 -0.05% +3.26% +9.2846 +9.2425
Euro/Sweden EURSEK= 10.4950 10.5005 -0.05% +2.25% +10.5150 +10.4870
(Reporting by Richard Leong in NEW YORK
Additional reporting by Saikat Chatterjee in LONDON; Vatsal
Srivastava in SINGAPORE;
Editing by Larry King and Dan Grebler)
NEW YORK The U.S. commercial paper supply decreased this week, retreating from a 4-1/2-month high, as fund managers took a breather from their recent purchases of these debt securities, according to Federal Reserve data released on Thursday.
The shrinkage of the U.S. Federal Reserve's balance sheet has played a significant role in exerting upward pressure on borrowing costs as parts of the U.S. economy have shown signs of decelerating, a study from the Kansas City Federal Reserve released on Wednesday showed.
NEW YORK Bond traders are betting the Federal Reserve's next move will be to cut interest rates after the U.S. central bank made a dovish turn in monetary policy, as financial markets fret over deterioration in the global economy.
* If economy, Wall Street hold up, Fed might hike rates
NEW YORK Sterling fell on Tuesday as British lawmakers rejected most amendments seeking for Britain to avoid leaving the European Union without a deal, reviving worries of a chaotic withdrawal from the trading bloc that would damage the U.K. economy.
NEW YORK Sterling rose on Tuesday before British lawmakers were scheduled to vote on whether to take a proposal off the table to leave the European Union without a deal, while the U.S. dollar was little changed ahead of a Federal Reserve two-year policy meeting.