Tag: currencies

EMERGING MARKETS-Most Latam currencies up for the week, Brazil leads gains

By Shreyashi Sanyal

Oct 9 (Reuters) – Most major currencies in Latin American were set to end the week higher on Friday, with Brazil’s real leading gains after economic data through the week showed signs of improvement, while a weaker dollar also offered support.

The real BRBY, BRL= strengthened 1.3%, heading for its first weekly gain in five as data showed a pick-up in Brazil’s services sector last month. Another report showed a record reading on retail sales for August.

Investors, however, worried about Brazil’s public finances after the introduction of a new fiscal bill, called Renda Cidada, fanned fears about the government overshooting its spending limit.

FX analysts at Commerzbank said that given the uncertainty about the pandemic’sprogression and its economic impact, it is unlikely that disagreements about the consolidation of national finances will be resolved soon.

Mexico’s peso MXN= was on track for its second week of gains after the country’s government unveiled an infrastructure investment plan worth nearly $14 billion earlier in the week.

Latam currencies also got a lift from the dollar =USD, which fell to three-week lows on Friday as optimism that a deal for new U.S. stimulus would be reached, and as investors bet that Democrat Joe Biden is more likely to win the U.S. presidency and offer a larger economic package. FRX/

Analysts say a Democratic sweep could also bode well for emerging markets.

“Biden is a much more risk friendly candidate, given his international credentials for multilateralism and predictability and a far less disruptive trade policy,” said Alan Ruskin, macro strategist at Deutsche Bank.

The Colombian peso COP= also headed for weekly gains, getting a boost from rising oil prices. O/R

Chile’s peso CLP= was among the few losers for the week, as it tracked

…

Dollar, yen move downward after US spending improves investor sentiment, appetite for riskier currencies

FOX Business’ Edward Lawrence on FOMC meeting regarding the impact of the coronavirus stimulus on economic recovery.

SINGAPORE – The safe-haven dollar and yen nursed losses on Thursday, after the revival of hopes for some U.S. spending improved investor sentiment and appetite for riskier currencies.

A flurry of late-Tuesday tweets from President Donald Trump, after he canceled talks with Democrats over coronavirus relief, suggested he was open to piecemeal spending measures.

That lifted equity markets and commodity currencies and sank the safe-haven yen to a three-week low of 106.11 per dollar overnight. The dollar was weaker on most other majors.PELOSI: ALL TRUMP WANTED IN CORONAVIRUS RELIEF NEGOTIATIONS WAS ‘TO SEND OUT A CHECK WITH HIS NAME ON IT’

The euro edged up 0.2% to $1.1767 and held there early in the Asia session. The risk-sensitive Australian dollar lifted off a one-week low and rose about 0.5% overnight to hold at $0.7137 in Asia. [AUD/]

With no fresh clues on stimulus, morning moves were slight and leaned in favor of the greenback. The New Zealand dollar slipped 0.4% after a central bank official said the bank was “actively working” on negative rates.

People wearing face masks walk past a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, Sept. 21, 2020. (Associated Press)

Top White House officials have played down the likelihood that anything gets passed, but House Speaker Nancy Pelosi is pursuing a standalone bill for aid to airlines.

“It looks like they still can’t agree on a bigger package,” said Commonwealth Bank of Australia currency analyst Joe Capurso. “If they could get an agreement on that, you’d get a bit more of a reaction and the U.S. dollar would fall.”

The overnight mood had been further supported by hints at even more

…

Volatile emerging market currencies won’t dissipate for next six months: report

Fox Business Flash top headlines are here. Check out what’s clicking on FoxBusiness.com.

Volatility in emerging market currencies will not let up in the next six months as U.S. presidential election jitters mount and domestic economic growth tapers off, a Reuters poll of market strategists showed.

Most emerging market currencies were forecast to weaken or at best cling to a range over the next three to six months but will rise about 2% on average in a year, supported by a weaker dollar, the Sept. 28-Oct. 5 poll found.

Reuters surveys since the global shutdown in activity in March have been consistently concluding emerging market currencies will not recoup even half their coronavirus-induced 2020 losses within a year.

CHEAP DOLLAR WON’T REVIVE NYC REAL ESTATE MARKET ANYTIME SOON

Still, a steep dollar selloff, which just posted its worst quarter in three years as expectations for a swift recovery from the COVID-19 recession made investors exit safe havens, has helped currencies in less developed countries rise. That comes despite deep economic troubles from the pandemic.

Volatility in emerging market currencies will not let up in the next six months as U.S. presidential election jitters mount and domestic economic growth tapers off, a Reuters poll of market strategists showed. (iStock)

“EM currencies are running on empty without capital inflows or a resounding macro narrative. The large output gap and lower level of economic activity will have a disproportionately negative impact on currencies,” said Jason Daw, head of emerging markets strategy at Societe Generale.

“EM FX has tended to weaken in the lead up to and for several months after a challenger victory in the contest for the White House. A Democratic sweep, our central scenario, could result in weaker EM currencies.”

A Reuters/Ipsos poll on Sunday found 51% of voters were backing

…

EMERGING MARKETS-Asian currencies ease after Trump tests positive for COVID-19

U.S. dollar edges higher after Trump tests positive

Malaysia stocks set to snap two straight weeks of gains

Palm oil stocks in Malaysia stage minor rebound

India, China, South Korea, Hong Kong, Taiwan on holiday

Oct 2 (Reuters) – Southeast Asia’s currencies eased on Friday with investors seeking safety in the U.S. dollar after U.S. President Donald Trump tested positive for COVID-19, while hopes for further U.S. stimulus also waned.

Trump said he and First Lady Melania Trump had tested positive for COVID-19 and would immediately quarantine and begin the “recovery process.”

The positive result raises the level of uncertainty ahead of the U.S. elections in November.

Appetite for riskier stocks was also overshadowed by concerns that a plan to provide more relief to the U.S. economy during the coronavirus outbreak would stall in the Senate, after being approved by the U.S. House of Representatives.

Stocks shed 0.9% in Singapore .STI and 0.7% in Jakarta .JKSEwhile stocks in Malaysia .KLSE and the Philippines .PSI edged higher.

Currencies in the region were largely weaker against the dollar =USD, with the rupiah IDR=, ringgit MYR= and Singapore dollar SGD= all down around 0.2% versus the greenback.

“It is prime time now for (the) U.S. election,” said Jingyi Pan, a senior market strategist at IG.

“Should the President be absent during this period, that could mean even more complications with the election.”

Trading volumes were thin in Asia with a host of places on holiday this Friday including, India, China, South Korea, Hong Kong and Taiwan.

FGV Holdings FGVH.KL and other Malaysian palm oil producers rose on Friday after falling sharply in the previous session, when the United States blocked the entry of FGV’s palm oil products into the country over allegations of forced labour. Malaysia said it

…

Dollar slips vs most currencies on U.S. stimulus expectations

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – The dollar slipped against major currencies on Thursday in volatile trading, as hopes for U.S. fiscal stimulus cheered investors and spurred them to seek higher-yielding but riskier currencies.

FILE PHOTO: A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration

The Chinese yuan gained the most against the dollar, reaching a year-and-a-half high in the offshore market, as a holiday in China dried up liquidity, exaggerating the moves.

In addition, Chinese data on Wednesday showed its economic recovery was on track.

Commodity currencies such as the Australian, New Zealand, and Canadian dollars as well as the Norwegian crown also rose versus the greenback.

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were expected to try again on Thursday to reach a deal on COVID-19 relief, while the House of Representatives stood ready for a second day to move a Democratic bill if talks fail.

Mnuchin raised hopes of an agreement by telling reporters that Wednesday’s discussions had made “a lot of progress in a lot of areas.”

“The market is latching on to renewed hopes for a stimulus deal,” said Erik Nelson, macro strategist, at Wells Fargo in New York. “Those stimulus hopes seem to be driving much of today’s macro price action.”

Wall Street shares were higher on the day, while U.S. Treasury prices were lower.

In mid-morning trading, the euro rose 0.1% against the dollar to $1.1721 EUR=EBS.

The Australian dollar rose 0.1% against the greenback to US$0.7168 AUD=D3. The New Zealand dollar gained 0.3% to US$0.6631 NZD=D3. Against the Canadian dollar, the U.S. dollar slipped 0.1% C$1.3314 CAD=D3.

The dollar index was little changed at 93.851 =USD, after earlier falling to 93.522, its weakest level since Sept. 22.

…