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☆ Dollar softens, China's yuan draws support from stimulus hopes
▼ + stars: | 2023-07-10 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

The U.S. economy added 209,000 jobs last month, data on Friday showed, missing market expectations for the first time in 15 months. That caused U.S. Treasury yields to slump and sent the dollar down nearly 1% against a basket of currencies on Friday while the yen and sterling surged. The dollar/yen pair is particularly sensitive to U.S. yields as interest rates in Japan are anchored near zero. The market reaction to the data was largely muted, as it fuelled hopes that Chinese authorities would soon unveil further stimulus measures for the economy. The offshore yuan last traded at 7.2290 per dollar, while the Aussie fell 0.14% to $0.6683.

Persons: Chris Weston, We've, we've, it's, Weston, Christopher Wong, Rae Wee, Sam Holmes, Simon Cameron, Moore Organizations: Treasury, Bank of England, U.S, Australian, New Zealand, Thomson Locations: SINGAPORE, U.S, Asia, Japan, China

☆ Yen weakens past 145 per dollar, yuan propped by stimulus hopes
▼ + stars: | 2023-06-30 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

SINGAPORE, June 30 (Reuters) - The yen weakened past the closely watched 145 per dollar level on Friday, keeping traders wary of potential intervention by Japanese authorities, while the yuan crept higher as hopes for further stimulus from Beijing gathered steam. The onshore yuan fell to its lowest since November at 7.2615 per dollar shortly after trading opened on Friday, but was last marginally higher at 7.2505 per dollar. "PMIs released... reinforced the need for stimulus support. The Australian dollar , often used as a liquid proxy for the yuan, tracked the Chinese currency higher and rose 0.29% to $0.6635. Further clarity on the bloc's inflation outlook will come later on Friday, with June's flash inflation data due to be released.

Persons: Shunichi Suzuki, Saktiandi Supaat, PMIs, Christopher Wong, Carol Kong, Sterling, Elwin de Groot, Rae Wee, Sam Holmes Organizations: Bank of Japan's, Japan's Finance, Tokyo perked, New Zealand, U.S, U.S . Federal Reserve, Commerce Department, Commonwealth Bank of Australia, Bank of England, Central Bank, Rabobank, Thomson Locations: SINGAPORE, Beijing, Asia, Tokyo, U.S

☆ China's PBOC asks foreign banks about dollar deposit rates amid weak yuan
▼ + stars: | 2023-06-30 | by ( ) www.reuters.com time to read: +3 min

The People's Bank of China did not immediately respond to Reuters request for comments. The PBOC said in mid-May that authorities will resolutely curb large fluctuations in the exchange rate and study the strengthening of self-regulation of dollar deposits. Weeks later, sources told Reuters that a self-regulatory body overseen by the central bank had told major state-owned banks to lower dollar deposit interest rates. Big banks were told to cap them at 4.3%, from the previous ceiling of 5.3%. "The move could help increase offshore dollar deposits," said a trader at a foreign bank, adding it may add downside pressure on China's balance of payments and the yuan.

Persons: PBOC, Weeks, Christopher Wong Organizations: People's Bank of China, Reuters, U.S . Federal, OCBC Bank, Thomson Locations: SHANGHAI, BEIJING, China, U.S

☆ Gold hovers near mid-March low on dollar strength, hawkish Fed
▼ + stars: | 2023-06-29 | by ( ) www.cnbc.com time to read: +1 min

Gold prices lingered near a Mid-March low on Thursday, dragged down by a stronger dollar and hawkish comments from U.S. Federal Reserve Chair Jerome Powell. Spot gold fell 0.1% to $1,906.17 per ounce, near a mid-March low hit on Wednesday. Powell's hawkish remarks reinforced interest rates going higher for longer, with a higher opportunity cost of holding gold dimming the appeal of gold, said OCBC FX strategist Christopher Wong. Powell suggested another two rate hikes to the Fed funds target rate were likely, and he did not see inflation abating to the 2% target until 2025. Asian shares were subdued on the premise of higher interest rates, while the Japanese yen and the Chinese yuan struggled to lift from lows amid fears of official intervention.

Persons: Jerome Powell, Christopher Wong, Powell Organizations: Aurum, U.S . Federal, Reuters Locations: Munich, U.S, .

☆ Gold prices edge higher as tepid dollar lifts appeal
▼ + stars: | 2023-06-26 | by ( ) www.cnbc.com time to read: +2 min

Gold prices edged higher on a weaker dollar, although bullion hovered close to three-month lows as traders assessed prospects that more interest rate hikes by the U.S. Federal Reserve were in the offing. Spot gold rose 0.2% to $1,925.78 per ounce by 0341 GMT. Bullion slumped nearly 2% in the previous week as hawkish comments from Fed officials suggested more rate hikes to bring down sticky inflation. Higher interest rates make non-yielding gold less appealing. San Francisco Fed Bank President Mary Daly said on Friday two more rate hikes this year are a "very reasonable" projection.

Persons: Bullion, Christopher Wong, Mary Daly, Wong Organizations: U.S . Federal, San Francisco Fed Bank, P Global Locations: Moscow, Russia

☆ Yuan slides after China cuts lending benchmarks; Aussie down
▼ + stars: | 2023-06-20 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

"Markets were expecting bigger support and were hoping for a larger LPR cut," said currency strategist Christopher Wong at OCBC. It's probably going to be more targeted," said currency strategist Moh Siong Sim at Bank of Singapore. "The minutes were interpreted by market participants as dovish," said currency strategist Carol Kong at Commonwealth Bank of Australia. The yen has come under renewed pressure amid rising interest rate differentials between Japan and other developed markets. Sterling edged 0.06% higher to $1.2798, ahead of British inflation data and the Bank of England's (BoE) interest rate decision later in the week.

Persons: Christopher Wong, Moh Siong Sim, Carol Kong, Min Joo Kang, BoE, Rodrigo Catril, Rae Wee, Christopher Cushing Organizations: Bank of Singapore, Reserve Bank of Australia's, Commonwealth Bank of Australia, New Zealand, Bank of Japan's, ING, South, Central Bank, Sterling, Bank of England's, National Australia Bank, Bank of England, U.S ., Thomson Locations: SINGAPORE, China, OCBC, Japan, South Korea

☆ Gold ticks lower, traders assess Fed rate trajectory
▼ + stars: | 2023-06-19 | by ( ) www.cnbc.com time to read: +1 min

Fed officials struck a hawkish tone in their first comments since the central bank held the policy interest rate steady at its meeting last week. Although gold is considered a hedge against inflation, interest rate hikes raise the opportunity cost of holding non-yielding bullion. Traders are now pricing in an about 72% chance of Fed rate hike in July, according to the CME Fedwatch tool. "Near term, the risk of another one or two more Fed rate hikes can dim the appeal of gold, but to put in perspective, the Fed is closer to the end of the tightening cycle," said OCBC FX strategist Christopher Wong. Investors now await Fed Chair Jerome Powell's congressional testimonies on Wednesday and Thursday for further cues on future rates.

Persons: Matt Simpson, Bullion, Christopher Wong, Jerome Organizations: . Federal Reserve, Index, Traders, Investors Locations: Index .

☆ Dollar retreats as Fed pause eyed; U.S. debt deal clears House
▼ + stars: | 2023-06-01 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

The dollar was mixed in Asia trade and barely reacted to the vote, with the euro rising 0.04% against the greenback to $1.06895. Fed officials including the vice chair-designate pointed towards a rate hike "skip" in June, giving time for the U.S. central bank to assess the impact of its tightening cycle thus far against still strong inflation data. Elsewhere, the Japanese yen rose nearly 0.1% to 139.24 per dollar. CHINA'S BUMPY RECOVERYIn Asia, the Chinese offshore yuan rose over 0.1% to 7.1077, reversing some of its losses from the previous session, when it slumped to a six-month low. The yuan had fallen nearly 3% against the dollar in both the onshore and offshore markets in May, as China's post-COVID economic recovery struggles to gain steam.

Persons: Sterling, Carol Kong, Christopher Wong, Rae Wee, Christian Schmollinger Organizations: Federal Reserve, House, Democratic, U.S, Fed, Commonwealth Bank of Australia, U.S ., New, People's Bank of China, Thomson Locations: SINGAPORE, Asia, Japan, China, New Zealand

☆ Dollar gains as debt deal optimism fires up investors
▼ + stars: | 2023-05-19 | by ( Amanda Cooper | ) www.reuters.com time to read: +3 min

That eased fears of an unprecedented and economically catastrophic default, leading markets to revise their expectations of where U.S. interest rates could go. "As far as expectations for a June rate hike are concerned, those have risen significantly in the last week. Against the yen , the dollar was down 0.4% at 138.19 yen, having risen to a six-month peak of 138.745 earlier on. Among other major currencies, the Australian dollar took some heart from a pickup in commodity prices like copper and iron ore. In China, the yuan slid to its lowest since December, at 7.0365 per dollar, as data offered evidence of a sputtering recovery in the world's second-largest economy.

☆ Dollar gains as debt deal hopes rekindle hawkish Fed bets
▼ + stars: | 2023-05-19 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

That eased fears of an unprecedented and economically catastrophic default, leading markets to revise their expectations of where U.S. interest rates could go. The euro fell to a more than seven-week low of $1.0760, while the U.S. dollar index rose 0.07% to 103.57, flirting with Thursday's two-month high of 103.63. "It does remove one obstacle to the Fed continuing to raise rates." U.S. Treasury yields have climbed on the back of the hawkish Fed repricing and amid a pick up in risk sentiment. The two-year Treasury yield , which typically moves in step with interest rate expectations, last stood at 4.2510%, while the benchmark 10-year yield was last at 3.6402%.

☆ Gold listless as U.S. debt talks dominate market mood
▼ + stars: | 2023-05-18 | by ( ) www.cnbc.com time to read: +2 min

Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020. Gold prices were little changed on Thursday as the dollar held firm and optimism over U.S. debt-ceiling talks chipped away at the metal's safe-haven appeal. The dollar index traded near a seven-week high reached in the previous session, making gold less affordable for overseas investors. U.S. President Joe Biden and top congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default. The decline in silver so far this month "could be closer to some tentative stabilization," Wong added.

☆ Dollar edges lower; on track for second straight monthly loss
▼ + stars: | 2023-04-24 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

The U.S. dollar dipped against most major currencies in early Asia trade, with the euro and sterling rising 0.05% to $1.0994 and 0.02% to $1.2447, respectively. "There's nothing, as yet, to hang your hat on rate cuts in the second half of the year." Elsewhere, the kiwi gained 0.07% to $0.6143, while the U.S. dollar index slipped 0.02% to 101.66. The index was eyeing a monthly loss of close to 0.9%, having fallen more than 2% in March. In Asia, the Bank of Japan's policy meeting this week takes centre stage, as it marks the first meeting to be chaired by new BOJ Governor Kazuo Ueda.

☆ Gold advances on softer dollar as traders await US inflation data
▼ + stars: | 2023-04-11 | by ( Kavya Guduru | ) www.reuters.com time to read: +2 min

U.S. gold futures rose 0.4% to $2,012.30. Traders are now focussing on the U.S. consumer price data due Wednesday for more clarity on the path of rates heading into the Fed's May policy meeting. The opportunity cost of holding the non-yielding bullion rises when interest rates are increased to bring down inflation. "Near-term, there are also bearish technical setups for a corrective move lower" in gold prices, OCBC's Wong added. Data on Tuesday showed top bullion consumer China's March consumer inflation hit the slowest pace since September 2021 and suggested demand weakness persisted amid an uneven economic recovery.

☆ Gold advances on softer dollar as traders await U.S. inflation data
▼ + stars: | 2023-04-11 | by ( ) www.cnbc.com time to read: +2 min

A mark of 999.9 fine sits on hallmarked one kilogram gold bullion bars at the Valcambi SA precious metal refinery in Lugano, Switzerland, on April 24, 2018. Gold prices gained on Tuesday after falling over 1% in the previous session, as the dollar eased ahead of key U.S. inflation data. U.S. gold futures rose 0.5% to $2,013.30. The opportunity cost of holding the non-yielding bullion rises when interest rates are raised to bring down inflation. Data on Tuesday showed top bullion consumer China's March consumer inflation hit the slowest pace since September 2021 and suggested demand weakness persisted amid an uneven economic recovery.

☆ Dollar mired near two-month low; Kiwi gains on RBNZ surprise
▼ + stars: | 2023-04-05 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

The kiwi rallied 1% to touch a two-month high of $0.6383 after the decision. The dollar index , which measures the currency against six peers, eased to a fresh two-month low of 101.43, after dropping 0.5% overnight. Markets were pricing in a 43% chance of Fed not raising interest rates a day earlier. "And the Fed may have to perhaps do more and keep rates high for longer." The yield on 10-year Treasury notes was up 1.3 basis points to 3.350%, having slipped 9 basis points overnight.

☆ Gold prices ease as traders gauge OPEC+ output cuts, weak U.S. data
▼ + stars: | 2023-04-04 | by ( ) www.cnbc.com time to read: +2 min

Oil prices steadied with investors' attention shifting to demand trends and the impact of higher prices on the global economy. Gold prices dropped on Monday after a surprise cut in OPEC+ crude production was announced over the weekend. Bullion is seen as a hedge against inflation, but higher rates increase the opportunity cost of holding the non-yielding asset. "If we are right, this should send the dollar lower and clear the 'runway' for an additional move higher." Spot silver slipped 0.5% to $23.88 per ounce, platinum eased 0.1% to $984.99 and palladium ticked 0.1% lower to $1,458.42.

☆ Dollar gains as inflation worries resurface after OPEC+ surprise
▼ + stars: | 2023-04-03 | by ( Ankur Banerjee | ) www.reuters.com time to read: +2 min

"Fresh inflation risks do imply the inflation fight is not over." The euro was down 0.25% to $1.0812, hovering near a one-week low, while the Japanese yen weakened 0.04% to 132.86 per dollar. The OPEC+ cuts caused immediate oil price increases of more than 6% on Monday. But, by the end of the year, expectations are priced in for cuts of 40 basis points. The risk-sensitive Australian dollar fell 0.21% to $0.667.

☆ Dollar advances as banking crisis fears ease
▼ + stars: | 2023-03-30 | by ( ) www.cnbc.com time to read: +2 min

In this photo illustration, 2, 50 and 100 dollar bills are seen displayed. The U.S. dollar was on the front foot on Thursday as receding concerns over the banking sector helped improve risk sentiment, with investors switching their attention to the Federal Reserve's battle against inflation. The dollar index , which measures the currency against six major peers, rose 0.097% at 102.73, after gaining 0.19% overnight. The index though was on course to clock a 2% decline for March due to market tumult induced by problems in the banking industry. "While risk sentiment somewhat continued to hold up this week, we expect month-end flows alongside risk-on, risk-off flows to drive two-way trade."

☆ Gold inches lower on steady dollar, with focus on banking risks
▼ + stars: | 2023-03-27 | by ( Kavya Guduru | ) www.reuters.com time to read: +2 min

SummarySummary Companies Gold down for 2nd session in a rowGrowth worries, banking stresses could benefit gold- analystMarch 27 (Reuters) - Gold prices edged down for a second straight session on Monday as the U.S. dollar firmed, while authorities attempted to assuage investor fears of a widespread crisis in the global banking sector. Spot gold was down 0.1% at $1,975.59 per ounce, as of 0350 GMT. Recent stress in the banking sector and the possibility of a follow-on credit crunch brings the United States closer to recession, Minneapolis U.S. Federal Reserve President Neel Kashkari said on Sunday. While gold is considered a hedge against inflation and economic uncertainties, higher interest rates tend to discourage investment in non-yielding bullion. Spot silver fell 0.6% to $23.08 per ounce, platinum was 0.2% lower at $974.60 and palladium slipped 0.7% to $1,405.48.

"The bank run has abated for the moment, but that might be contingent on what the Fed signals today," said Adam Button, chief currency analyst at ForexLive in Toronto. "The risk is that the (Federal Open Market Committee) shatters the fragile calm in markets today... by acting too aggressively." The Fed meeting concludes on Wednesday with the 2 p.m. EDT (1800 GMT) release of a policy statement followed half an hour later by a news conference by Powell. Christopher Wong, currency strategist at OCBC, said the focus will be on how the Fed communicates its forward guidance, in particular "the higher for longer" rhetoric. The Japanese yen weakened 0.20% to 132.80 per dollar, while the Australian dollar rose 0.07% to $0.667.

☆ Dollar eases as investors ponder outlook for Fed rates
▼ + stars: | 2023-03-22 | by ( Amanda Cooper | ) www.reuters.com time to read: +3 min

Markets are pricing in about a 15% chance of the Fed not increasing rates, with a roughly 85% chance of a 25 basis point hike, according to the CME FedWatch tool. Just a month earlier, the market was pricing in a 24% chance of a 50 basis point hike. The Fed meeting concludes on Wednesday with the 2 p.m. EDT (1800 GMT) release of a policy statement followed half an hour later by a news conference by Powell. "This wish list should see dollar trade on the softer profile and risk proxies trade steadily". The euro was last down 0.4% against sterling at 87.81 pence, while gaining 0.2% against the dollar to trade at $1.079.

☆ Dollar muted as traders await Fed rate decision
▼ + stars: | 2023-03-22 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

The U.S. dollar index , which measures the currency against six peers, was at 103.19, just above the five-week low of 102.99 touched overnight. Markets are now pricing in about a 15% chance of the Fed not increasing rates, with a roughly 85% chance of a 25 basis point hike, showed the CME FedWatch tool. Just a month earlier, the market was pricing in a 24% chance of a 50 basis point hike. Such circumstances would usually be ripe for a return to a 50 basis point hike were it not for worries over financial stability, he said. The Australian dollar rose 0.36% to $0.6694, while the New Zealand dollar gained 0.11% to $0.6199.

☆ Gold listless as investors strap in for Fed rate verdict
▼ + stars: | 2023-03-22 | by ( Kavya Guduru | ) www.reuters.com time to read: +2 min

SummarySummary Companies All eyes on Fed statement at 1800 GMTFed seen hiking rates by 25 bpsHawkish Fed, rates repricing could undermine gold prices - analystMarch 22 (Reuters) - Gold prices traded in a narrow range on Wednesday as some investors stayed on the sidelines ahead of the U.S. Federal Reserve's interest rate decision and policy outlook. Spot gold was flat at $1,939.59 per ounce, as of 0318 GMT, after dropping 2% on Tuesday. Investor attention is now on the Fed's decision scheduled at 1800 GMT, followed by a press conference by Fed Chair Jerome Powell. "Key focus is on how the Fed communicates its forward guidance, in particular 'the higher for longer' rhetoric and dots plots," OCBC's Wong said. "If we do get higher dots plot, then that represents a still-hawkish Fed that is determined to fight inflation ... a potential hawkish repricing could undermine gold prices."

☆ Gold listless as investors strap in for Fed rate
▼ + stars: | 2023-03-22 | by ( ) www.cnbc.com time to read: +2 min

Gold bullion bars are pictured after being inspected and polished at the ABC Refinery in Sydney on August 5, 2020. Gold prices traded in a narrow range on Wednesday as some investors stayed on the sidelines ahead of the U.S. Federal Reserve's interest rate decision and policy outlook. Spot gold was flat at $1,939.59 per ounce, as of 0318 GMT, after dropping 2% on Tuesday. Investor attention is now on the Fed's decision scheduled at 1800 GMT, followed by a press conference by Fed Chair Jerome Powell. "If we do get higher dots plot, then that represents a still-hawkish Fed that is determined to fight inflation ... a potential hawkish repricing could undermine gold prices."

☆ Gold in tight range with focus on Fed's rate-hike moves
▼ + stars: | 2023-03-15 | by ( Kavya Guduru | ) www.reuters.com time to read: +2 min

Spot gold was up 0.1% at $1,903.64 per ounce as of 0316 GMT, trading in a $6 range. The dollar index was down 0.1%, making bullion less expensive for overseas buyers, while U.S. Treasury yields ticked higher. "Investor allocation to gold remains low," analysts at ANZ said in a note, but added they expect the banking turmoil to "reinvigorate investor demand over the longer term." Spot silver rose 0.6% to $21.81 per ounce, platinum added 0.5% at $987.64 and palladium firmed 0.3% at $1,510.92. Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

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