2023-12-13 10:25

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar edged higher in early trade Wednesday, boosted by sticky inflation ahead of the latest Fed meeting, while sterling is hit by weak growth numbers. At 05:25 ET (10:25 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 103.609. Fed meeting to conclude The U.S. currency gained after data overnight showed consumer prices unexpectedly rising in November, gaining 0.1% on the month, while dropping annually to 3.1% from 3.2%. However, recent signs have pointed to a soft landing, as the Federal Reserve meets for the final time this year, concluding later Wednesday. The U.S. central bank is widely expected to keep rates on hold, and investors will be mainly watching to see if Fed Chair Jerome Powell pushes back against the prospect of interest rate cuts in the first half of 2024. “The Fed last raised rates in July and we think that marked the peak,” said analysts at ING, in a note. “However, the Fed will not want to endorse the market pricing of significant rate cuts until they are confident price pressures are quashed.” Sterling slips after weak U.K. growth data In Europe, GBP/USD fell 0.3% to 1.2523 after data showed that Britain's economy shrank in October, with gross domestic product falling 0.3% from September, the first month-on-month drop since July. The Office for National Statistics stated that exceptionally wet weather might have impacted the data, but this release raises the prospect of a recession and lifts the pressure on the Bank of England to cut interest rates next year even with inflation still above target. EUR/USD fell 0.1% to 1.0784 after eurozone industrial production fell 0.7% on the month, an annual fall of 6.6%. This added to recent economic data which has pointed to the eurozone heading into a recession in the final quarter of the year, raising expectations that the European Central Bank could deliver its first rate cut early next year. The ECB, BOE, Norges Bank and the Swiss National Bank all hold policy-setting meetings on Thursday, and are all expected to hold interest rates unchanged. Yen retreats ahead of BOJ meeting In Asia, USD/JPY traded 0.3% higher to 145.84, with the Japanese yen handing back some of its recent gains ahead of next week’s Bank of Japan meeting. The central bank is widely expected to signal no changes to negative interest rates. USD/CNY traded 0.1% higher at 7.1818, extending losses after a dismal reading on inflation over the weekend. China slid further into disinflation territory in November, indicating that economic conditions in the country remained weak. https://www.investing.com/news/forex-news/dollar-gains-ahead-of-fed-decision-sterling-hit-by-weak-gdp-data-3255464

2023-12-13 05:53

Copyrighted Image by: Reuters Investing.com-- Gold prices hovered below key levels on Wednesday as markets grew wary of non-yielding assets before the conclusion of the Federal Reserve’s final meeting for the year. Recent signs of strength in the labor market and sticky U.S. inflation dented expectations that the central bank will trim interest rates earlier in 2024. While the Fed is still expected to keep rates on hold later on Wednesday, its outlook for 2024 remains uncertain. Uncertainty over the Fed had spurred wild swings in gold prices this month, with the yellow metal briefly hitting record highs of over $2,100 an ounce before seeing a heavy degree of capitulation. Recent losses in the yellow metal also saw it lose the coveted $2,000 an ounce level, especially as the dollar regained its footing in anticipation of the Fed. Spot gold steadied at $1,979.06 an ounce, while gold futures expiring February were flat at $1,993.70 an ounce by 00:26 ET (05:26 GMT). Fed set to hold rates, but markets split over 2024 rate cuts The central bank is widely expected to keep rates on hold at the conclusion of its final meeting for 2023 later in the day. But any signals from Fed Chair Jerome Powell on the path of rates through 2024 will be in close focus, especially as markets feared a potentially hawkish outlook from the central bank chief. Powell has largely maintained his higher-for-longer rhetoric on rates, but has acknowledged major progress against inflation this year. Still, inflation remained comfortably above the Fed’s 2% annual target in November. Any hawkish signals from the Fed are likely to further unsettle gold markets, especially as investors grew less convinced that a rate hike was due by March 2024. Fed funds futures prices show a 43% chance of a rate cut in March, down sharply from the 60% being priced in last week. Higher rates bode poorly for gold, given that they push up the opportunity cost of investing in bullion. Copper dips as China woes persist Among industrial metals, copper prices continued their descent amid little optimism over top importer China. Copper futures expiring March fell 0.4% to $3.7782 a pound. Signs of worsening disinflation in China saw copper log heavy losses this week, as markets feared that worsening economic conditions in the world’s largest copper importer will dent demand. While Chinese officials promised more stimulus measures to support growth, copper prices and broader markets took little relief from their comments, given that Beijing has largely dragged its feet in rolling out more supportive measures this year. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/commodities-news/gold-prices-pinned-below-2000-as-fed-meeting-looms-outlook-uncertain-3255292

2023-12-13 04:49

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies retreated on Wednesday, while the dollar steadied as sticky U.S. inflation data cast some doubts over what the Federal Reserve will signal at the conclusion of a meeting later in the day. Regional currencies were nursing some losses in recent sessions, as the dollar rebounded on signs of resilience in the U.S. labor market. Data for November also showed a mild uptick in inflation, indicating that the U.S. economy may not be cooling as rapidly as the Fed was anticipating. This notion weighed on most Asian currencies, as did persistent concerns over an economic slowdown in China. The Chinese yuan lost 0.1%, extending losses after a dismal reading on inflation over the weekend. China slid further into disinflation territory in November, indicating that economic conditions in the country remained weak. The Japanese yen shed 0.1%, having reversed much of a recent rally after media reports showed the Bank of Japan was in no hurry to tighten its ultra-dovish policy. A Bank of Japan meeting is also due next week, although the central bank is expected to signal no changes to negative interest rates. The Australian dollar shed 0.1%, while the Singapore dollar lost 0.2%. Caution before the Fed saw risk-heavy Asian currencies log steeper losses. The South Korean won fell 0.4%, while the Malaysian ringgit led losses across Southeast Asia with a 0.5% fall. The Indian rupee was flat, having taken few cues from a strong inflation reading for November. But the reading was largely in line with a Reserve Bank of India warning that inflation will increase in the coming months, due to higher food prices. Fed set to hold interest rates, but outlook uncertain The dollar index and dollar index futures rose slightly in Asian trade. Markets remained convinced that the Fed will leave interest rates unchanged later on Wednesday. But strong labor market and sticky inflation readings brewed some uncertainty over what the central bank’s outlook is for 2024. Nonfarm payrolls rose more than expected in November, while consumer inflation inched up and remained well above the Fed’s 2% annual target. Traders were seen scaling back bets on a March interest rate cut, amid growing concerns that Fed Chair Jerome Powell could reiterate the bank’s higher-for-longer rhetoric. Any hawkish signals from the Fed are likely to spur a sharp unwinding in risk-driven assets, which had rallied sharply over the past month amid optimism over a Fed pivot. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/forex-news/asia-fx-dips-dollar-steady-as-sticky-inflation-clouds-fed-outlook-3255231

2023-12-13 01:51

Copyrighted Image by: Reuters. Investing.com -- Oil prices rose Wednesday, rebounding after the previous session’s sharp losses, but remained around six-month lows on concerns over weaker demand and looser supplies ahead of the latest Federal Reserve meeting. By 09:10 ET (14.10 GMT), the U.S. crude futures traded 0.7% higher at $68.10 a barrel and the Brent contract climbed 0.6% to $73.71 a barrel. Record U.S. production weighs However, despite these gains, the crude benchmarks remain not far above six-month lows having fallen around 3% during Tuesday’s session, weighed by record-high U.S. production and growing concerns over a slowdown in Chinese demand, as well as uncertainty before more signals on monetary policy from the Fed. Data from the American Petroleum Institute, released Tuesday, showed that U.S. oil inventories fell by over 2 million barrels last week, more than expected. But the potential draw comes on the heels of several consecutive weeks of strong builds. The API data usually heralds a similar reading from official inventory data, which is due later in the day, which is expected to show a draw of 1.5 million barrels. Additionally, in its monthly Short-Term Energy Outlook, the US Energy Information Administration revised up crude oil production forecasts for the current year to 12.93 million barrels per day compared with last month’s 12.9 million barrels, largely on the expectation of stronger supply growth for the final quarter of this year. Fed policy meeting in focus Some traders have also considered it wise to level off positions ahead of the conclusion of the last policy meeting of the Federal Reserve later in the session. U.S. consumer price index data released on Tuesday showed a mild uptick in month-on-month inflation in November, pushing up concerns that the Fed will maintain its hawkish rhetoric as it attempts to tame inflation. While the central bank is widely expected to keep rates on hold, its outlook for 2024, particularly any plans to trim interest rates, will be a key point of focus. OPEC+ production cuts hit sentiment The overall tone in the market remains negative in the wake of the underwhelming production cuts from the Organization of Petroleum Exporting Countries and allies, known as OPEC+, for 2024. Additionally, concerns about the growth outlook, primarily in China, the world’s largest importer continue to weigh. Ratings agency Moody recently downgraded its credit outlook on China, and flagged increased economic risks to the country from a property market downturn and a lack of government stimulus. https://www.investing.com/news/commodities-news/oil-prices-hit-5mth-low-before-the-fed-us-inventories-offer-little-cheer-3255170

2023-12-12 21:58

Copyrighted Image by: Reuters Investing.com -- U.S. crude inventories declined more than expected last week, the API reported Tuesday, at a time when many are concerns about burgeoning non-OPEC production, pushing global crude supplies into surplus. Crude Oil WTI Futures, the U.S. benchmark, traded at $68.83 a barrel following the report after settling down 3.8% at $68.61 a barrel to remain on track for its longest weekly losing streak since 2018. U.S. crude inventories fell 2.3M barrels for the week ended Dec. 8, compared with a build of 549,000 barrels reported by the API for the previous week. Economists were expecting an decline of about 1.5M barrels. The larger-than-expected draw comes as concerns about growing non-OPEC supply offsetting recent output-cut pledges by OPEC and its allies, OPEC+ amid doubts about whether the cuts will be extended. The API data also showed that gasoline inventories increased by 5.8M barrels last week, while distillate stocks decreased by 300,000 barrels. The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies decreased by about 1.5M barrels last week. https://www.investing.com/news/commodities-news/oil-inventories-fall-by-23m-barrels-last-week-api-3255132

2023-12-12 14:23

Investing.com - Cardano was trading at $0.7196 by 18:56 (23:56 GMT) on the Investing.com Index on Friday, up 10.03% on the day. It was the largest one-day percentage gain since March 1. The move upwards pushed Cardano's market cap up to $25.0707B, or 1.08% of the total cryptocurrency market cap. At its highest, Cardano's market cap was $94.8001B. Cardano had traded in a range of $0.6531 to $0.7196 in the previous twenty-four hours. Over the past seven days, Cardano has seen a rise in value, as it gained 20.98%. The volume of Cardano traded in the twenty-four hours to time of writing was $896.3205M or 0.84% of the total volume of all cryptocurrencies. It has traded in a range of $0.5700 to $0.7196 in the past 7 days. At its current price, Cardano is still down 76.78% from its all-time high of $3.10 set on September 2, 2021. Elsewhere in cryptocurrency trading Bitcoin was last at $62,457.5 on the Investing.com Index, up 2.11% on the day. Ethereum was trading at $3,432.98 on the Investing.com Index, a gain of 2.81%. Bitcoin's market cap was last at $1,225.9738B or 52.63% of the total cryptocurrency market cap, while Ethereum's market cap totaled $412.5235B or 17.71% of the total cryptocurrency market value. https://www.investing.com/news/cryptocurrency-news/cardano-climbs-10-in-bullish-trade-3322305