2023-12-22 03:51

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies kept to a tight range on Friday, while the dollar hovered around four-month lows as markets awaited more affirmation that the Federal Reserve will cut interest rates earlier in 2024. Regional units were sitting on some gains this week, while the dollar was set for a second week in red after dovish signals from the Fed saw traders pricing in between three to five rate cuts by the central bank in 2024. But gains in Asian currencies were held back by uncertainty over the timing of the cuts, especially as several Fed officials pushed back on expectations that monetary easing from the central bank was imminent. Japanese yen retreats on soft inflation data, BOJ uncertainty persists The Japanese yen was among the bigger underperformers for the day, falling 0.3% after data showed that inflation eased as expected in November. The currency was also set for a 0.2% weekly loss. Core consumer price index inflation hit a 16-month low as a cooling Japanese economy saw spending decrease, while easing food prices also helped. But the inflation reading pointed to lesser pressure on the Bank of Japan to consider pivoting away from its ultra-dovish policy, given that high inflation was a key point of contention for the central bank. November’s readings were still well above the BOJ’s 2% annual target. While the central bank is still expected to reverse its ultra-dovish stance in 2024, the softer inflation reading brings more uncertainty over the timing of the move. The BOJ offered scant cues on a pivot during its meeting earlier this week, which battered the yen. Broader Asian currencies traded in a flat-to-low range as traders turned cautious before key U.S. inflation data due later in the day. The Australian dollar fell 0.3%, retreating slightly from a near five-month high hit in the prior session. The currency was also set to add 1.3% this week, as it benefited from improving risk appetite in the wake of a dovish Fed. The rate-sensitive South Korean won shed 0.3%, while the Indian rupee remained pinned near record lows of over 83 against the dollar. The Chinese yuan continued to lag its peers, losing 0.1% Friday and heading for a 0.4% weekly loss. Concerns over a sluggish economic rebound in the country kept traders largely wary of investing in most Chinese assets, with stocks bearing the brunt of this aversion. Dollar at 4-mth low with PCE inflation in focus The dollar index and dollar index futures moved little in Asian trade on Friday after sinking to their weakest levels since early-August. A slight downward revision in third-quarter U.S. GDP saw traders grow more optimistic over interest rate cuts in 2024, although the reading still reflected strong growth in the U.S. economy. Focus was now squarely on PCE price index data- the Fed’s preferred inflation gauge- due later on Friday. The reading is expected to show persistent stickiness in U.S. inflation- a scenario that gives the Fed more impetus to keep rates higher for longer. U.S. inflation is still trending well above the Fed’s 2% annual target, with any more signs of stickiness pointing to less dovish measures by the Fed in 2024. Such a scenario could trigger some pullback in Asian currencies, which had a strong run so far in December. Markets are still positioning for a 25 basis point rate cut in March 2024, according to Fed Fund futures prices. https://www.investing.com/news/forex-news/asia-fx-skittish-dollar-at-4mth-low-before-key-inflation-data-3262072

2023-12-22 02:54

Investing.com - EOS was trading at $1.0035 by 18:44 (22:44 GMT) on the Investing.com Index on Wednesday, up 10.14% on the day. It was the largest one-day percentage gain since March 20. The move upwards pushed EOS's market cap up to $1.1265B, or 0.04% of the total cryptocurrency market cap. At its highest, EOS's market cap was $17.5290B. EOS had traded in a range of $0.8829 to $1.0095 in the previous twenty-four hours. Over the past seven days, EOS has seen a drop in value, as it lost 14.82%. The volume of EOS traded in the twenty-four hours to time of writing was $257.5492M or 0.15% of the total volume of all cryptocurrencies. It has traded in a range of $0.8808 to $1.2096 in the past 7 days. At its current price, EOS is still down 95.63% from its all-time high of $22.98 set on April 29, 2018. Elsewhere in cryptocurrency trading Bitcoin was last at $67,601.8 on the Investing.com Index, up 8.07% on the day. Ethereum was trading at $3,511.46 on the Investing.com Index, a gain of 6.62%. Bitcoin's market cap was last at $1,327.7578B or 52.18% of the total cryptocurrency market cap, while Ethereum's market cap totaled $420.4517B or 16.52% of the total cryptocurrency market value. https://www.investing.com/news/cryptocurrency-news/eos-climbs-10-in-rally-3347064

2023-12-22 02:03

Copyrighted Image by: Reuters. Investing.com-- Oil prices settled lower on Friday, but notched a second-weekly gain following a volatile trading week as traders weighed supply disruptions driven by attacks on vessels in the Red Sea, while Angola's exit from the Organization of Petroleum Exporting Countries sparked some concern about OPEC cohesion and its ability to wrangle members to unite behind future production agreements. At 14:30 ET, West Texas Intermediate crude futures fell 0.2% to $73.73 a barrel, while Brent oil futures expiring in February fell 0.3% to $79.18 a barrel. Both benchmarks ended the week up 4%. Crude oil settles higher for second-straight week Crude prices wrapped up the day with a second-weekly gain, buoyed by the prospect of supply shortages as attacks by the Iran-aligned Yemeni Houthi group on vessels in the Red Sea saw several oil and shipping firms steer clear of the area. The move points to potential delays in deliveries arriving through the Suez Canal, especially if the disruptions persist for more than a few weeks. But sentiment was soured earlier this week as Angola exit from the OPEC raised concerns about the group's ability to unite behind future production cuts to raise prices. While Angola, which exited the oil producer group following clash on oil production quotas, accounts for a relatively small portion of the cartel’s overall output- about 1.1 million barrels per day (bpd) out of 28 million bpd produced by the whole group, the country's exit comes amid ongoing jitters about OPEC's cohesion. Dollar slip to 5-month lows on cooling inflation offers support A weaker dollar also offered support to the oil prices following data Friday showing that the PCE, the Fed's preferred measure of inflation, slowed by more than expected, adding to bets of aggressive rate cuts next year. The personal consumption expenditures report, the Fed’s primary inflation gauge, for November slowed by 0.1%, taking the annualized rate through November to 2.6%, below expectations of 2.8%. Investors are now expectations 175 basis points of by the end of next year, taking the Fed funds rate to a range of 3.5% to 3.75% range. That is much more aggressive the three rate cuts for 2024 the Fed projected at its December meeting. Baker Hughes rig count rises In a sign the record pace of crude output may be moderating, oilfield services firm Baker Hughe reported its weekly U.S. rig count fell by three to 398. The fall in rig counts come just a day earlier this week showed U.S. production reached a fresh record high. https://www.investing.com/news/commodities-news/oil-prices-rise-past-angolas-opec-exit-red-sea-tensions-bring-weekly-gain-3262045

2023-12-21 09:30

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar edged lower in early European trade Thursday ahead of key growth data, while sterling continued to fall in the wake of rapidly cooling U.K. inflation. At 04:30 ET (09:30 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 102.010, down almost 2% so far this year. Treasury yields fall to new lows Several Federal Reserve officials have tried to rein in expectations for a number of U.S. interest rate cuts in 2024, in the wake of last week’s Fed dovish policy-setting meeting. But ten-year U.S. Treasury yields hit a seven-month low of 3.847% overnight, dragging the dollar lower with traders pricing in the possibility that rate cuts could come as soon as March. There are a number of data releases due Thursday, including weekly jobless claims, the Philadelphia Fed manufacturing index, and most importantly the latest reading of quarterly gross domestic product growth. However, the core Personal Consumption Expenditures price index, the Fed’s favorite measure of inflation, is due on Friday, and could show whether inflation has slowed enough for the Fed to begin easing policy next year. Pound continues to weaken In Europe, GBP/USD fell 0.2% to 1.2618, with sterling continuing to weaken after data released Wednesday showed that U.K. inflation plunged to its lowest reading since September 2021. Earlier Thursday, data showed that Britain ran up a higher-than-expected budget deficit in November, with public sector net borrowing totalling £14.3 billion ($18.1 billion), underscoring the limited room for pre-election tax cuts by Prime Minister Rishi Sunak's government. EUR/USD traded flat at 1.0938, with traders looking for several rate cuts from the ECB next year with the first moves potentially in the first quarter after eurozone inflation fell to 2.4% in November on an annual basis, not far away from the central bank’s 2% medium-term target. Yen recovers after sharp losses Elsewhere, USD/JPY traded 0.3% lower at 143.16, with the yen recovering a measure of steep losses earlier this week after the Bank of Japan maintained its ultra-dovish course. Focus this week is on Japanese consumer price index inflation due on Friday. USD/CNY traded 0.2% higher at 7.1467, with the yuan weakening in the wake of the People’s Bank of China left its loan prime rate unchanged at record lows. https://www.investing.com/news/forex-news/dollar-edges-lower-ahead-of-key-data-sterling-remains-weak-3261352

2023-12-21 06:15

Copyrighted Image by: Reuters. Investing.com-- Gold prices moved little in Asian trade on Thursday, sticking to a trading range established over the past week as markets speculated over just when the Federal Reserve will begin trimming interest rates. The yellow metal stuck to a range between $2,000 and $2,050 an ounce seen over the past week. While dovish signals from the Fed helped the metal break above the $2,000 an ounce level, it struggled to make further gains as risk appetite improved and as traders second guessed expectations for early rate cuts from the Fed. Several Fed officials also warned that bets on an early rate cut from the central bank were overly optimistic, given that inflation is still trending well above the Fed’s 2% annual target. Their comments enabled the dollar to recover from near five-month lows this week, and kept a lid on any major gains in gold. Spot gold rose 0.3% to$2,036.89 an ounce, while gold futures expiring February were flat at $2,048.65 an ounce by 00:34 ET (05:34 GMT). March rate cut bets persist, more inflation data on tap But despite recent pushback from Fed officials, Fed Fund futures prices showed traders pricing in an over 70% chance of a 25 basis point rate cut in March 2024. Markets were also looking to a slew of economic readings due this week, with a revised reading on third-quarter GDP due later in the day. Strength in the U.S. economy gives the Fed more headroom to keep rates higher for longer. Weekly jobless claims data is also due on Thursday, while a reading on the PCE price index- the Fed’s preferred inflation gauge- is due on Friday. Inflation and labor market strength is a key point of contention for the Fed, with both sectors having shown surprising resilience in recent months. Still, any signs of cooling in the economy is likely to drive down the dollar and push up gold. The yellow metal stands to benefit from a lower interest rate environment, given that high rates push up the opportunity cost of investing in the yellow metal. Copper prices near 4-mth high on China hopes, tighter supplies Among industrial metals, copper prices hovered around a four-month high on Thursday, after weakness in the dollar and hopes for more stimulus measures in China spurred strong gains in the red metal. Copper futures expiring March steadied at $3.9078 a pound, sticking close to highs last seen in early-August. China’s central bank kept its benchmark loan prime rate at record lows this week, keeping monetary conditions loose as it attempts to shore up economic growth. Copper demand in the country has remained robust despite worsening economic conditions, and is expected to improve in the coming months as Beijing rolls out more stimulus. Copper markets are also expected to tighten in 2024, amid increasing demand and as major mine closures in Panama and Peru limit supplies. 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-rangebound-as-markets-gauge-2024-rate-cut-bets-3261294

2023-12-21 04:57

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies moved little on Thursday, nursing some losses from the prior session as the dollar recovered from near five-month lows amid some uncertainty over when the Federal Reserve will begin trimming interest rates. The greenback saw some safe haven demand following a rout in risk-driven equity markets, as investors locked-in profits after a recent rally. Asian currencies also saw some pullback after logging strong gains from over the past week, after the Fed said it was done raising interest rates and flagged deeper rate cuts in 2024. This saw traders pricing in the possibility that rate cuts could come as soon as March 2024. But several Fed officials warned against bets on early rate cuts, given that U.S. inflation was still well above the Fed’s 2% annual target. While Fed Fund futures showed traders still pricing in an over 60% chance of a 25 basis point rate cut in March, some uncertainty over the potential cuts stalled a rally in Asian markets. The Japanese yen rose 0.4% on Thursday, recovering a measure of steep losses earlier this week after the Bank of Japan maintained its ultra-dovish course. But the yen still remained in sight of a five-month high touched last week. Focus this week is on Japanese consumer price index inflation due on Friday. The Australian dollar added 0.3%, recovering from steep losses in the prior session and remaining within sight of an over four-month high. The rate-sensitive South Korean won added 0.1%, while the Singapore dollar rose 0.2%. Regional trading volumes remained languid as the year-end holiday season kicked in. Dollar recovers from five-month low, but outlook uncertain The dollar index and dollar index futures both fell slightly in Asian trade on Thursday, but were trading above a near five-month low hit earlier in the week. The greenback saw some strength this week as markets remained uncertain over just when the Fed will begin monetary easing. While a string of analysts flagged a March 2024 cut, Fed officials suggested the bank will keep rates higher until inflation shows clearer signs of coming within its target range. Sticky inflation and resilience in the U.S. economy give the Fed more headroom to keep rates higher for longer. Still, Goldman Sachs expects the Fed to cut rates at least five times in 2024. Chinese yuan lags amid persistent economic jitters The Chinese yuan fell 0.15% on Thursday and continued to lag broader Asian currencies as markets remained on edge over China’s economic prospects. The People’s Bank of China kept its benchmark loan prime rate on hold at record lows this week, as it struggles to maintain a balance between fostering economic growth and stemming further losses in the yuan. But the central bank also set a weaker daily midpoint for the yuan on Thursday, with the currency remaining under pressure from a string of weak economic readings from China for November. The yuan also remained well above the psychologically important 7 level against the dollar. https://www.investing.com/news/forex-news/asia-fx-steady-as-dollar-recovers-from-near-5mth-low-3261255