United Kingdom

Richard Leong

Investors' cash buildup comes at a cost

11 Feb 2019

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.

Dollar posts best week in six months, euro slips

08 Feb 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.

CORRECTED-FOREX-Dollar on track for best week in six months

08 Feb 2019

(Corrects in headline, first graph to read six months, not seven) * Mystery buyer keeps the single currency supported above $1.13 * Chinese markets shut for Lunar New Year hold down volatility * 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 global economy. 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 Washington. 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 slowdown. 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 franc. Sterling was marginally lower at $1.2947. Traders expect the pound to remain volatile because of the uncertainty surrounding Brexit. ======================================================== Currency bid prices at 10:19AM (1519 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session 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 ar 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/Dollar 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)

U.S. commercial paper supply retreats from four-and-a-half month peak

07 Feb 2019

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.

Fed's balance sheet shrinkage keeps key U.S. rates elevated - study

06 Feb 2019

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.

Bets on U.S. rate cut grow after Fed's dovish shift

31 Jan 2019

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.

U.S. rate-cut bets grow after Fed's dovish shift

31 Jan 2019

* If economy, Wall Street hold up, Fed might hike rates again

Pound falls on no-deal Brexit worries, dollar steady

29 Jan 2019

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.

Sterling rises before Brexit votes, dollar flat

29 Jan 2019

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.

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