2024-01-17 04:50

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies retreated on Wednesday, while the dollar stood at a one-month high amid increasing doubts over early interest rate cuts by the Federal Reserve, while weak Chinese growth data also dented sentiment. Chinese Q4 GDP misses estimates, economic outlook dim China’s economy grew slightly less than expected in the fourth quarter, and barely edged past government estimates of 5% for growth in 2023. The reading showed that a post-COVID rebound gained little momentum over the past year, and set a middling tone for China in 2024. The yuan fell 0.1%, although further losses in the currency were held back by a stronger-than-expected daily midpoint fix by the People’s Bank of China, according to Reuters data. Other economic indicators for December also pointed to a weak outlook for the Chinese economy. While industrial production and fixed asset investment edged past expectations, Chinese retail sales grew less than expected, while unemployment also unexpectedly rose. Concerns over China pulled down most currencies with trade exposure to the country. The Australian dollar fell 0.2%, while the South Korean won slid 0.6%. The Singapore dollar fell 0.2% as data showed the country’s non-oil exports shrank more than expected in December, amid weak Chinese demand. But the biggest weight on Asian currencies was increasing doubts over early interest rate cuts by the Fed, following somewhat hawkish comments from Governor Christopher Waller on Tuesday. The Japanese yen was the worst-hit by Waller’s comments, sinking 0.1% on Wednesday after a 1% tumble in overnight trade. The yen also weakened past the 147 level for the first time in more than one month. The yen was also dented by increasing expectations that the Bank of Japan will maintain its ultra-dovish course when it meets next week. Uncertainty over rebuilding efforts in the wake of a devastating earthquake, coupled with expectations for a middling inflation reading this Friday furthered this notion. Dollar at one-month high as Waller talks down early rate-cut bets The dollar index and dollar index futures rose slightly in Asian trade on Wednesday after surging to an over one-month high in overnight trade. The greenback was boosted chiefly by the Fed’s Waller saying that while interest rate cuts were likely to happen this year, the central bank was not considering any in the near-term, citing continued resilience in the U.S. economy. Waller’s comments saw traders scaling back bets for a 25 basis point rate cut in March, according to the CME Fedwatch tool. Treasury yields also shot up after his comments, with the 10-year rate breaching 4% once again. Higher-for-longer rates bode poorly for Asian currencies, given that they diminish the appeal of risk-heavy, high-yielding assets. This notion had battered regional currencies over the past two years, and is expected to remain in play until the Fed signals a timeline for its planned rate cuts. Focus is now on U.S. retail sales and industrial production data, due later on Wednesday, for more cues on the world's largest economy. 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-sinks-on-weak-china-gdp-ratecut-doubts-dollar-at-1mth-high-3275674

2024-01-17 04:26

Copyrighted Image by: Reuters. ISLAMABAD/NEW DELHI - Gold prices have seen a significant downturn in the markets of Pakistan and Delhi. The cost of gold per tola in Pakistan has plummeted by Rs.3,600, bringing the price down to Rs.213,700. Similarly, the price for ten grams of pure gold has fallen to Rs.183,213. The rate for the same amount in 22 karat slid down to Rs.167,945. In Delhi, the price for ten grams of 22-carat gold has been reduced by Rs.100, now costing Rs.58,200, while 24-carat gold has experienced a reduction of Rs.110, taking the price to Rs.63,480. Along with gold, silver prices have also experienced a downtrend in these regions. The rate for silver has fallen to Rs.2,600 per tola in Pakistan, and ten gram silver declining by Rs.42.86 to close at Rs.2,229.08. In Delhi, however, the price stands steady at Rs.76,500 per kilogram. These price movements come at a time when gold prices are generally experiencing a downward trend on a global scale with a $22 drop in gold prices landing at $2,045. This decline in local gold and silver prices may reflect market-specific conditions as well as aligning with the broader global trend. https://www.investing.com/news/commodities-news/gold-prices-fall-in-pakistan-and-delhi-markets-93CH-3275822

2024-01-17 01:30

Copyrighted Image by: Reuters. Investing.com -- Oil prices recovered lost ground to settle just marginally higher Wednesday as the dollar retreated, though worries about the demand limited upside after Chinese economic growth data disappointed. By 19:30 ET (14:30 GMT), the U.S. crude futures settled up 0.2% at $72.56 a barrel and the Brent contract dropped 0.3% to $78.09 a barrel. Both contracts had been down more than 2% intraday. Chinese GDP disappoints Chinese gross domestic product grew 5.2% year-on-year in the fourth quarter, slightly less than expected as the world's largest oil importer continued to grapple with a sluggish post-COVID recovery. While this still beat a 5% government target for 2023, the rise was largely driven by a lower base for comparison from 2022, when the economy grew about 3%. Wednesday's reading set a weak tone for Chinese economic growth in 2024, which spells a weaker appetite for crude in the coming months. While Chinese oil imports still hit record highs in 2023, their pace of growth was seen slowing towards the end of the year, amid high inventory levels. Dollar strength wanes despite easing March Fed cut bets The strength in the dollar, which has kept a lid on prices, waned, providing a reprieve for oil prices even data showing U.S. retail sales surprised to the upside cast further doubt on a March rate cut. Uncertainty over when the Fed will start cutting interest rates has helped the dollar rebound this year to one-month highs after being hard hit at the end of 2023. A stronger dollar makes commodities, including oil, which are denominated in the U.S. currency, more expensive for foreign buyers, likely reducing demand. OPEC offers 2025 growth forecast for first time There was some good news for the market Wednesday, as the Organization of the Petroleum Exporting Countries stuck to its forecast for relatively strong growth in global oil demand in 2024 in its monthly report. The group forecast demand growth of 2.25 million barrels per day for 2024, unchanged from last month, and predicted world oil demand will rise by 1.85 million barrels per day in 2025, led by China and the Middle East. The 2025 prediction is OPEC's first in its monthly report, and has published this earlier than usual in an attempt to reduce market uncertainty . However, the cartel may still need to cut production further to keep oil prices at current levels in the face of stuttering demand growth and high U.S. output, the CEO of commodities trader Mercuria Energy Group said on Wednesday. The American Petroleum Institute released its estimate of U.S. crude inventories later in the session, a day later than usual due to Monday's public holiday. Red Sea tensions remain in play Traders continue to monitor the military action in the Middle East, and the prospect of supply disruptions from the oil-rich region. Disruptions in the Red Sea have seen several shipping operators steer clear of the region and instead take a longer route around the Cape of Good Hope- which is expected to delay oil deliveries to Europe and Asia. https://www.investing.com/news/commodities-news/oil-prices-dip-as-strong-dollar-rate-fears-offset-meast-disruptions-3275656

2024-01-16 09:43

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar climbed higher in early European trade Tuesday, with risk sentiment hit by increased tensions in the Middle East as well as concerns that the Federal Reserve may delay interest rate cuts . At 04:40 ET (09:40 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.8% higher at 102.955, after having gained 0.2% overnight in subdued trading during a U.S. public holiday on Monday. Dollar boosted by risk aversion Raised tensions in the Middle East have supported the U.S. dollar, after the Houthi group said on Monday it will expand its targets in the Red Sea region to include U.S. ships after the U.S. and British strikes on its sites in Yemen. However, the main driver of late has been expectations of when the Federal Reserve will start cutting interest rates, in effect saying the battle against inflation has been won. Hawkish comments from European Central Bank officials on Monday have caused traders to push back against the idea of early rate cuts globally. Attention now turns to a speech by Fed Governor Christopher Waller later on Tuesday, an influential member of the central bank’s policy-setting committee. “Recall that he delivered the definitive and market-moving "something appears to be giving" speech in late November,” said analysts at ING, in a note. “The speech provided an important lead indicator for the Fed's dovish turn at the December FOMC meeting.” Sterling retreats after weaker average earnings growth In Europe, GBP/USD fell 0.5% to 1.2658 after the release of labor data which showed that growth in average earnings fell to 6.6% in November, a fall from 7.2% the prior month. This will be received positively by the Bank of England, as they try to rein in one of the highest inflation rates in the G7, but Wednesday’s December CPI release will probably be of more importance. This is expected to fall to 3.8% on an annual basis, a small fall from 3.9% in November, still way above the central bank’s 2% medium-term target. EUR/USD dropped 0.5% to 1.0896, with German inflation being confirmed at 3.7% on an annual basis in December, a jump from 3.2% the previous month. "It's too early to talk about cuts, inflation is too high," ECB's Joachim Nagel said on Monday, adding that the mistake of lowering interest rates too early should be avoided. The euro is struggling to benefit from the hawkish talk though, as the German economy, the eurozone’s largest, is struggling under the weight of the series of interest rate hikes. The German economy is likely to grow by just 0.3% in 2024, according to the country’s BDI industry association, while forecasting that the global economy will expand by 2.9%. "The economy is at a standstill in Germany. Compared to most other major industrialised countries, our country is falling further behind," said BDI president Siegfried Russwurm. "We don't see any chance of a rapid recovery in 2024." Yuan falls to one-month low In Asia, USD/CNY rose 0.3% to 7.1922, with the yuan retreating to an over one-month low against the dollar, as traders remained largely averse to Chinese assets amid continued concerns over an economic recovery. Focus was now squarely on fourth-quarter gross domestic product data, due on Wednesday, for more cues on the economy. USD/JPY traded 0.5% higher to 146.49, after data showed Japanese producer price index inflation remained soft in December, coming just a few days before consumer price index data, which is also expected to show inflation remaining languid. https://www.investing.com/news/forex-news/dollar-in-demand-on-rate-cut-delay-concerns-rising-risk-aversion-3274672

2024-01-16 05:34

Copyrighted Image by: Reuters. Investing.com-- Gold prices fell slightly on Tuesday after a strong run-up in recent sessions, while a rebound in the dollar also pressured prices ahead of more upcoming economic data and signals from the Federal Reserve. The yellow metal benefited from increased safe-haven demand in recent sessions, amid an escalation in military action in the Middle East. A softer dollar also benefited bullion prices. But the dollar rebounded on Tuesday, as markets hunkered down before addresses from Fed officials this week, which are expected to offer more cues on when the central bank will begin trimming interest rates this year. Spot gold fell 0.3% to $2,049.41 an ounce, while gold futures expiring in February fell 0.3% to $2,052.90 an ounce by 23:35 ET (04:35 GMT). Fed officials, economic data in focus for rate-cut cues The dollar index surged 0.5% on Tuesday, with demand for the greenback increasing ahead of an address by Fed Governor Christopher Waller later on Tuesday. His comments on the potential for a spring rate cut will be closely watched, after consumer and producer inflation data for December offered somewhat mixed cues to markets. U.S. industrial production and retail sales data readings are due on Wednesday and are set to provide more signals on the economy. Any signs of economic resilience gives the Fed more headroom to keep rates higher for longer. Traders were seen slightly trimming bets on a March 2024 rate cut, according to the CME Fedwatch tool. Expectations of early interest rate cuts were a key driver of a gold rally in recent weeks, given that the yellow metal benefits from a low-rate environment. Copper slips ahead of more China cues Among industrial metals, copper prices fell on Tuesday, coming under pressure from a stronger dollar and as traders positioned for more cues from the world’s largest copper importer this week. Copper futures expiring in March fell 0.7% to $3.7572 a pound. China is set to release fourth-quarter gross domestic product figures on Wednesday, capping off a year of languid economic activity. While GDP is still set to exceed the government’s 5% annual target, the rise is largely driven by a lower base for comparison from 2022. Chinese industrial production and retail sales readings are also due on Wednesday. Concerns over China were a key weight on copper prices over the past two years, as markets feared that cooling growth in the world’s largest importer will dent demand for the red metal. With the Chinese economy showing little signs of improvement in recent months, this trend is expected to persist. But copper prices may see some strength from increasing demand from other sources, particularly a push into green energy. 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-edge-lower-as-dollar-rebounds-before-more-fed-economic-cues-3274574

2024-01-16 04:03

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies retreated on Tuesday, while the dollar advanced as traders remained largely risk-averse before more cues on when the Federal Reserve could begin cutting interest rates. Anticipation of key economic readings from China also kept regional markets on edge, while fears of an escalation in the Middle East conflict kept risk appetite dull. The Japanese yen fell 0.2% and crossed the 146 level to the dollar. Data on Tuesday that showed producer price index inflation remained soft in December, coming just a few days before consumer price index data, which is also expected to show inflation remaining languid. Softer inflation gives the Bank of Japan less impetus to begin tightening its ultra-dovish policy, which bodes poorly for the yen. Broader Asian currencies also retreated. The Australian dollar- a key indicator of regional risk appetite- fell 0.5% tracking weakness in commodity prices. Data also showed that Australian consumer sentiment worsened in early-January, amid concerns over high interest rates and inflation. The South Korean won slid 0.7% as data showed a sustained reduction in export and import prices. The Indian rupee lost 0.1% after data on Monday showed wholesale price index inflation grew less than expected in December. The Taiwan dollar slid 0.6%, amid increased volatility after the incumbent Democratic Progressive Party secured a third consecutive term in the recent Presidential elections. But the move is expected to invite more ire from China. Dollar strengthens before econ. data, Fed comments The dollar index and dollar index futures rose 0.5% and 0.3%, respectively, in Asian trade on Tuesday. The dollar index was also trading at a small premium to futures, indicating increased near-term demand for the greenback. Traders were now awaiting more cues on the Fed and the U.S. economy, with Fed Governor Christopher Waller set to speak later on Tuesday. On Wednesday, U.S. retail sales and industrial production readings are set to offer more cues on the world’s largest economy, with any signs of cooling lending more credence to bets on early interest rate cuts. But markets appeared to have slightly trimmed bets that the Fed will begin cutting rates by as soon as March 2024, according to the CME Fedwatch tool. Chinese yuan slips, Q4 GDP awaited The Chinese yuan fell 0.2% to an over one-month low against the dollar, as traders remained largely averse to Chinese assets amid continued concerns over an economic recovery. Focus was now squarely on fourth-quarter gross domestic product data, due on Wednesday, for more cues on the economy. GDP is expected to have slightly surpassed the government’s 5% annual target for 2023. But the higher reading is likely to be driven by a lower base for comparison from 2022, as the Chinese economy struggled with reemerging from three years of COVID lockdowns. The yuan was among the worst-performing Asian currencies in 2023, as a post-COVID economic rebound failed to materialize. Chinese industrial production and retail sales figures for December are also due on Wednesday. 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-weakens-dollar-rises-as-markets-await-more-fed-ratecut-cues-3274548