2023-12-15 09:15

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar edged higher in early European trade Friday, but remained on course for its steepest weekly decline since July after the Federal Reserve signaled rate cuts next year while central banks in Europe stuck to their hawkish paths. At 04:15 ET (09:15 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 101.702, not far from the four-month low of 101.459 seen earlier Friday. The index is down over 2% this week so far. Fed’s dovish pivot hits the dollar Both the European Central Bank and the Bank of England expressed their desire to keep policy tight well into next year to combat inflation, as they kept interest rates unchanged on Thursday. The ECB said policy easing was not even brought up in a two-day meeting, the BOE said rates would remain high for "an extended period." This contrasted with the Fed's pivot towards rate cuts, and means that the dollar will remain out of favor as the year comes to an end. “As the dust settles after a furious period for central bank meetings we are left to conclude that European policymakers have chosen to push back more than the Fed when it comes to what the market prices for 2024 rate cuts,” said analysts at ING, in a note. There’s more U.S. economic data to digest later in the session, including November industrial and manufacturing production as well as S&P PMI numbers, but most focus will be on a speech by Fed policymaker John Williams, as the market looks for confirmation that the debate has moved on to the timing of the first rate cut. “Should Williams mention rate cuts, we suspect the dollar will stay on the soft side today,” ING added. Euro, sterling fall back from recent highs EUR/USD fell 0.3% to 1.0953, just below 1.1009, a two-week high it touched on Thursday, after PMI data showed that German business activity deteriorated in December, increasing the likelihood of a recession in Europe's biggest economy at the end of the year. Still, while the ECB's next move should be a lowering of interest rates from record highs the central bank should "enjoy the view" for a while, French central bank chief Francois Villeroy de Galhau said on Friday, implying a rate cut was not imminent. GBP/USD fell 0.2% to 1.2747, with sterling having surged 1.1% to a four-month peak on Thursday after BoE's hawkish tilt. “Of the recent central bank meetings, the Bank of England probably offered the most pushback against dovish expectations,” said ING. “There was nothing in their statement to encourage dovish expectations for 2024.” Yen steadies ahead of next week’s BOJ meeting In Asia, USD/JPY traded 0.1% lower to 141.75, with the Japanese yen steadied near a four-month high to the dollar, having appreciated sharply against the greenback in recent sessions. But further gains in the yen were uncertain, with the Bank of Japan expected to maintain its ultra-dovish stance in its final meeting for the year next week. USD/CNY traded 0.1% lower at 7.1035, after the People’s Bank of China injected 1.45 trillion yuan ($200 billion) into the economy through its medium-term lending facility. Economic data also offered some positive cues on China. Industrial production grew more than expected in November, although retail sales and fixed asset investment missed expectations. AUD/USD rose 0.3% to 0.6717, as the Aussie dollar, a major indicator of Asian risk sentiment, rose to an over four-month high. https://www.investing.com/news/forex-news/dollar-edges-higher-but-set-for-weekly-loss-feds-williams-in-spotlight-3257302

2023-12-15 05:47

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose slightly in Asian trade on Friday, extending a push above key levels after dovish signals from the Federal Reserve sparked steep losses in the dollar and Treasury yields. The yellow metal rebounded from recent losses this week after the Fed said it was done raising interest rates, and will consider deeper interest rate cuts in 2024. The Fed’s comments saw markets pricing in at least three rate cuts by the central bank, with the first one coming as soon as March 2024. The dollar slid to four-month lows after the Fed, while Treasury yields fell across the board with the 10-year rate breaking below 4%. Gold benefited from this trade, as the prospect of lower rates pushed up the yellow metal’s appeal. Lower interest rates also reduce the opportunity cost of investing in gold, which offers no yields and is driven largely by sentiment and safe haven demand. Spot gold steadied at $2,036.83 an ounce, while gold futures expiring February rose 0.3% to $2,050.95 an ounce by 00:25 ET (05:25 GMT). Both instruments were up between 1.6% and 2% this week. But gold prices were still trading well below record highs of over $2,100 hit earlier this month. Fed seen cutting rates in early-2024 Markets were now speculating over just when the central bank will begin cutting interest rates. Fed Fund futures prices point to an over 70% chance the bank will cut rates by 25 basis points in March 2024. Goldman Sachs expects the bank to cut rates by 25 basis points three times, in three back-to-back meetings beginning in March 2024. The rate cuts also come amid growing optimism over a soft landing for the U.S. economy, although any signs of economic resilience- particularly in inflation and the labor market- could delay the Fed’s rate cuts. While gold stands to benefit from lower interest rates, improving risk appetite could also potentially draw capital away from the yellow metal and into more risky, high-yielding assets. Copper advances on positive Chinese data, stimulus Among industrial metals, copper prices firmed on Friday, taking support from a weaker dollar and some positive cues from top importer China. Copper futures expiring in March rose 0.3% to $3.8857 a pound, and were set for mild gains this week. Chinese data showed industrial production grew more than expected in November, indicating that some aspects of the economy were recovering. But readings on retail sales and fixed asset investment missed expectations. But sentiment towards China was also boosted by the People’s Bank injecting about 1.45 trillion yuan ($200 billion) into the economy through its medium-term lending facility on Friday. The injection also indicated that the PBOC will keep its loan prime rate at record lows next week, as it moves to facilitate an economic recovery. 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-push-higher-above-2000-as-dollar-yields-sink-on-dovish-fed-3257190

2023-12-15 04:59

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies steadied after a recent rally on Friday, while the dollar languished at four-month lows as traders positioned for deeper-than-expected interest rate cuts by the Federal Reserve in 2024. More stimulus measures in China also aided sentiment, as the People’s Bank of China injected 1.45 trillion yuan ($200 billion) into the economy through its medium-term lending facility. But the move offered little support to the yuan, given that it signals that the PBOC will keep its loan prime rate at record lows next week. The currency traded sideways on Friday. Economic data also offered some positive cues on China. Industrial production grew more than expected in November, although retail sales and fixed asset investment missed expectations. Still, weakness in the dollar kept the yuan trading near a six-month high. Broader Asian currencies advanced slightly, tracking a weaker dollar and as the prospect of lower U.S. interest rates drove investors into risk-driven, high-yield assets. The Australian dollar- a major indicator of Asian risk sentiment- rose 0.3% to an over four-month high. The Japanese yen steadied near a four-month high to the dollar, having appreciated sharply against the greenback in recent sessions. But further gains in the yen were uncertain, with the Bank of Japan expected to maintain its ultra-dovish stance in its final meeting for the year on the coming Tuesday. Purchasing managers index data pointed to more weakness in the Japanese economy, with a preliminary reading for December showing a deeper-than-expected contraction in manufacturing activity. Among the few outliers for the day, South Korea’s won fell 0.2% after a strong run this week, while the Indian rupee hovered near record lows, having moved little against a weaker dollar. While optimism over India’s economy drove local stocks to record highs, traders remained wary of the rupee on caution over India’s massive trade deficit. The Reserve Bank has also signaled no more interest rate hikes, despite a recent uptick in inflation. Dollar languishes at 4-mth low, rate cuts in focus The dollar index and dollar index futures fell slightly in Asian trade and were at their weakest levels since mid-August. The greenback was set to lose about 2% this week after the Fed said it was done raising interest rates, and projected deeper rate cuts in 2024. The Fed’s comments also spurred deep losses in U.S. Treasury yields, and diminished the dollar’s appeal as traders began speculating over just when the Fed will begin trimming interest rates. Fed fund futures prices show traders pricing in an over 70% chance for a rate cut in March 2024. Goldman Sachs expects the central bank to enact three, back-to-back 25 basis point cuts, beginning in March. 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-upbeat-dollar-at-4mth-low-as-markets-look-to-2024-rate-cuts-3257176

2023-12-15 01:42

Copyrighted Image by: Reuters. Investing.com-- Oil prices rose slightly in Asian trade on Friday, and were set to snap a seven-week losing spree on optimism over interest rate cuts by the Federal Reserve and a positive outlook on demand from the International Energy Agency. A drop in the dollar- to over four-month lows- greatly benefited crude markets, while traders also positioned for better demand in 2024, on the prospect of lower interest rates and a stronger U.S. economy. This notion was furthered by the IEA, which slightly lifted its oil demand forecast for 2024. But the IEA’s forecast for demand was still much lower than that posited by the Organization of Petroleum Exporting Countries and allies (OPEC+). Underwhelming production cuts from the cartel group were a key weight on oil in recent weeks, driving prices to over five-month lows. Even with a positive demand outlook for 2024, crude markets are still expected to remain well supplied. This was also in part due to strong U.S. production, with recent data showing that total U.S. output remained close to record highs in the past week. U.S. inventories saw a bigger-than-expected drawdown, although fuel demand in the country remained weak, with gasoline inventories seeing a mild build. Brent oil futures expiring February rose 0.3% to $76.84 a barrel, while West Texas Intermediate crude futures rose 0.3% to $72.14 a barrel by 20:31 ET (01:31 GMT). Crude set for first weekly gain in 8 after dovish Fed Dovish signals from the Fed were a key support for commodity markets this week, as the central bank held rates steady in its final meeting for the year and flagged deeper-than-expected rate cuts in 2024. Lower interest rates spur increased liquidity in markets, improving economic activity and driving up crude demand. A weaker dollar also benefits international oil buyers. The positive cues from the Fed put Brent and WTI futures on course for their first positive week in eight, with Brent up 1.6% while WTI added 0.7%. China data in focus for more demand cues Economic data from China provided mixed cues on the world's largest oil importer. While industrial production rose more than expected in November, growth in retail sales and fixed asset investment missed expectations. The data comes after a string of weak economic readings for November, which ramped up concerns over slowing growth in the country. Concerns over China have also been a major weight on oil markets, as a post-COVID demand boom largely failed to materialize this year. Recent data also showed that China’s crude imports fell sharply in November from last year. Still, the Chinese government appeared to be continuing with its monetary stimulus policies, injecting cash into the economy to shore up growth. The People's Bank of China injected about 1.45 trillion yuan ($200 billion) through its medium-term lending facility on Friday. 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/oil-prices-rise-as-feddriven-rebound-brings-first-positive-week-in-8-3257145

2023-12-15 01:42

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled lower Friday, but still notched their first weekly gain in two months as the expectations of U.S. rate cuts next year boosting the economy and crude demand forced the bears to loosen their grip. By 14:30 ET (19.30 GMT), the U.S. crude futures settled 0.2% lower at $71.43 a barrel and the Brent contract rose 0.2% to $76.75 a barrel. U.S. rate cut optimism boosts energy demand outlook Dovish signals from the Fed have been a key support for commodity markets including energy this week, as the central bank signaled deeper-than-expected rate cuts in 2024. New York Fed President John Williams attempted to push back against sooner rather later rate cuts on Friday, saying rate the Fed isn't "really talking about rate cuts right now." Still, the potential of deeper rate cuts is expected to cushion the economy against possible slowdown, keeping demand for crude intact in U.S., the largest consumer of crude in the world, at time when record U.S. production has stoked excess supply concerns and weighed on sentiment. "We're actually producing more oil in the U.S., as a result of energy prices being where they are," Sean O'Hara, president of Pacer ETFs told Investing.com's Yasin Ebrahim in an interview on Friday. While excess supply or an severe economic downturn could pressure oil prices, O'Hara said, there is still a need to refill the Strategic Petroleum Reserve in Cushing, Oklahoma, which are at "the lower end of capacity." China economic struggles still a worry China, the largest importer of crude, continues to face a bumpy economic recovery as data showed consumer and investment spending increased at slower than expected pace. The ongoing struggles have fueled concerns that Beijing have to roll out further stimulus to keep its economic recovery on track. For 2024, Oil demand in China is the "biggest unknown", Louise Dickson, an analyst at Rystad Energy told Bloomberg in a recent interview, estimating about 600,000 barrels per day of oil demand growth out of China for next year. But the bulk of that depends on "how the economy performs," Dickson added. IEA lifted 2024 oil demand forecast The International Energy Agency helped the market earlier this week by slightly lifting its oil demand forecast for 2024. But the IEA’s forecast for demand was still much lower than that suggested by the Organization of Petroleum Exporting Countries and allies, a group known as OPEC+. Underwhelming production cuts from the cartel group were a key weight on oil in recent weeks, driving prices to over five-month lows. Even with a positive demand outlook for 2024, crude markets are still expected to remain well supplied. This was also in part due to strong U.S. production, with recent data showing that total U.S. output remained close to record highs in the past week. U.S. inventories saw a bigger-than-expected drawdown, although fuel demand in the country remained weak, with gasoline inventories seeing a mild build. https://www.investing.com/news/commodities-news/oil-prices-in-first-weekly-gain-in-2-months-as-ratecut-hopes-dent-bearish-bets-3257145

2023-12-14 13:34

Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, and Blockstream, a leader in blockchain technologies and financial cryptography, today announced the addition of cryptocurrency options data to the Cryptocurrency Data Feed offered via the ICE Consolidated Feed. Launched by ICE and Blockstream in 2018, the Cryptocurrency Data Feed offers real-time cryptocurrency information and includes data on over 100 cryptocurrencies from more than 30 globally sourced venues and exchanges. As part of ICE’s exclusive agreement with Blockstream, ICE offers extensive coverage of prices and order book data for cryptocurrencies by exchange. “As the crypto market evolves, access to quality price discovery information is increasingly crucial,” said Maurisa Baumann, VP, Desktop and Feeds Products, at ICE. “We are pleased to continue working with Blockstream to help address the growing need for transparency and offer a comprehensive view of the market via the ICE Cryptocurrency Data Feed.” ICE works closely with Blockstream to aggregate cryptocurrency data from multiple sources into a rich and easily consumable data feed. The Cryptocurrency Data Feed is designed to enable ICE Data Services’ customers to receive global market data in a streaming feed with comprehensive cryptocurrency information. “Interest in the crypto markets has been steadily increasing after seeing key regulatory decisions and positive market responses earlier this year,” said Adam Back, CEO of Blockstream. “This is a great time to launch this new offering, and we are pleased to continue working closely with ICE and cryptocurrency exchanges globally to deliver this data service that we believe can significantly reduce the barriers to broader trading of cryptocurrencies.” The ICE Consolidated Feed aggregates content from 600+ data streams in a normalized format. Used by Tier 1, 2 and 3 banks, asset managers, hedge funds, ISVs and redistributors, this cost-effective solution delivers a range of global financial information with multi-asset class coverage, including equities, derivatives, fixed income, foreign exchange, money markets, commodities, energy and ETFs. https://www.investing.com/news/cryptocurrency-news/intercontinental-exchange-and-blockstream-add-cryptocurrency-options-data-to-joint-crypto-offering-on-the-ice-consolidated-feed-432SI-3256703