DIRS.INFO The most relevant business & tech news

Europe-wide inflation data is due at 0900GMT. French inflation data on Friday also came in a whisker above expectations, and Dutch inflation also rose. "Inflation data in the eurozone will be an important driver, (for the euro)" said Francsco Pesole, FX strategist at ING, who expects the euro to reach $1.10 some time next week, after consolidating today. The dollar has also been dragged back as the focus on the U.S. banking sector in March caused U.S. interest rate markets to dramatically reprice the outlook. Both currencies found support from expanding Chinese manufacturing activity, though data on Friday showed the pace was slowing down.

☆ Swiss franc grapples with safe-haven identity crisis after Credit Suisse
▼ + stars: | 2023-03-24 | by ( Samuel Indyk | ) www.reuters.com time to read: +5 min

Money managers ditched the Swiss franc at the fastest rate in two years last week in the run-up to the dramatic takeover of Credit Suisse (CSGN.S) by UBS (UBSG.S). "You still have some of the safe-haven hedging properties in the Swiss franc but it can only take so much when the risk ends up being so concentrated in the Swiss economy and the Swiss financial sector," Kundby-Nielsen added. "If it hadn't been Credit Suisse, but any other European bank getting into trouble, you would have seen the Swiss franc rising sharply because it would have been the safe haven for European risk," said Francesco Pesole, FX strategist at ING. "The franc is not an 'all-weather' safe haven and so far we've not had the type of market pressures that would typically lead to franc appreciation," he said. SWISSIt's one thing for the franc to have lost some favour among investors during a Swiss-centric crisis, but quite another to suggest its days as a safe haven are numbered.

☆ US consumers may have to live with high prices for longer — and a falling dollar could be to blame
▼ + stars: | 2023-01-28 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +5 min

However, a four-month drop in the dollar is threatening to derail that trend by raising the cost of imported goods. But the welcome relief on the prices front is now facing a new threat — in the form of a falling dollar. A weaker dollar raises the cost of imported goods, which would eventually feed into consumer prices in the US. The US is a net importer of materials such as lumber and semiconductors that are crucial in manufacturing supply chains, and these would become costlier due to dollar weakness. "If we continue to see the dollar trade at current levels or even increase in weakness, that would be a headwind in the fight against high global inflation," Lomholt told Insider.

☆ Dollar retreats as risk appetite improves; Australia, NZ currencies rise
▼ + stars: | 2022-12-27 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

China will stop requiring inbound travellers to go into quarantine on arrival starting Jan. 8, the National Health Commission said on Monday, even as COVID cases spike. At the same time, Beijing downgraded the regulations for managing COVID cases to the less strict Category B from the top-level Category A. "There seems to be no let-up in the pace of relaxing COVID restrictions despite the surge in COVID cases in the mainland," said Christopher Wong, a currency strategist at OCBC. "It's worth remembering that the dollar rose in each of the past four years in January. "While ... (the) policy tweak has added uncertainty to the BOJ outlook, we continue to lean toward BOJ policymakers making no further policy adjustments through the end of 2023," said analysts at Wells Fargo.

☆ King dollar's worst slump in over a decade is hammering one of 2022's biggest winners – but the greenback's dominant run might not be over just yet
▼ + stars: | 2022-12-08 | by ( George Glover | ) www.businessinsider.com time to read: +4 min

Still, the dollar could advance next year thanks to its safe-haven status as recession risks rise, strategists told Insider. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. But the US currency is more likely to bounce back than to continue sliding next year, some strategists told Insider. "There's immense uncertainty around so much right now – Ukraine, China, recession, and interest rates, oil prices and OPEC." "Our expectation is that it continues hiking rates well into 2023 — and then the dollar should rise again."

☆ Dollar kept aloft by higher Fed rates bets, RBA rate hike lifts Aussie
▼ + stars: | 2022-12-06 | by ( Joice Alves | ) www.reuters.com time to read: +2 min

The Australian dollar perked up from near one-week lows after the Reserve Bank of Australia (RBA) raised rates for the eighth time in as many months. After recording its biggest rally in two weeks on Monday, the U.S. dollar index , which measures the currency against six major peers, was 0.1% lower at 105.05 at 1200 GMT. It later reversed course after data showing U.S. services industry activity unexpectedly picked up in November, with employment rebounding. Traders currently expect a half-point hike to a 4.25-4.5% policy band and a terminal rate of just above 5% in May. European Central Bank policymaker Constantinos Herodotou said on Tuesday interest rates will go up again but are now "very near" their neutral level.

The Australian dollar perked up from near one-week lows after the Reserve Bank of Australia (RBA) raised rates for the eighth time in as many months. The U.S. dollar index , which measures the currency against six major peers, was at 105.24, steady after Monday's 0.7% rally, its biggest since Nov. 21. It later reversed course after data showing U.S. services industry activity unexpectedly picked up in November, with employment rebounding. Traders currently expect a half-point hike to a 4.25-4.5% policy band and a terminal rate of just above 5% in May. Reporting by Joice Alves and Kevin Buckland; Editing by Alexander SmithOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar little changed after previous day's jump; investors look to Fed next week
▼ + stars: | 2022-12-06 | by ( ) www.cnbc.com time to read: +2 min

Data Monday showing that U.S. services industry activity unexpectedly picked up in November prompted speculation the Fed may lift interest rates more than recently projected. "There was a lot of price action yesterday, and we're just consolidating that," with the big focus on next week's Fed meeting. The euro was flat against the dollar at $1.0492, while the dollar was down 0.1% against the Japanese yen. European Central Bank policymaker Constantinos Herodotou said on Tuesday interest rates will go up again but are now "very near" their neutral level. The dollar was up 0.6% against the Canadian dollar ahead of the Bank of Canada's rate decision Wednesday.

☆ Dollar gives back gains, strong wage growth complicates Fed policy
▼ + stars: | 2022-12-02 | by ( ) www.cnbc.com time to read: +3 min

"Stronger-than-expected hiring can buy the Fed more time to stay aggressive," Joe Manimbo, senior market analyst at Convera in Washington, said. But the dollar gave back gains as investors took profits before the weekend and as Fed officials spoke on the outlook. The dollar index was last down 0.13% on the day against a basket of currencies at 104.49, and the euro gained 0.10% to $1.0533. In the 12 months through October, the PCE price index increased 6.0% after advancing 6.3% in September. The next major U.S. economic indicator will be consumer price inflation data due on Dec. 13, one day before the Fed concludes its two-day meeting.

The euro rose ahead of inflation data due on Wednesday. The Aussie , often used as a liquid proxy for the yuan, rose 1.2% to $0.6734. EURO ZONE INFLATIONThe euro was up 0.4% at $1.0380, not far from a five-month peak of $1.0497 hit on Monday. Flash euro zone inflation figures for November are due on Wednesday, with economists polled by Reuters expecting inflation to come in at 10.4% year-on-year. St. Louis Fed President James Bullard said the Fed needed to raise interest rates quite a bit further, while New York Fed President John Williams and Richmond Fed President Thomas Barkin echoed similar views.

☆ Sterling ticks up, economic activity slows by less than expected
▼ + stars: | 2022-11-23 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov. 23 (Reuters) - Sterling ticked up on Wednesday, rising for a second day against a faltering U.S. dollar after preliminary British economic activity data beat expectations, though it still showed contraction was underway. Flash purchasing manager index (PMI) data on Wednesday showed British economic activity sticking near 21-month lows, adding to signs of recession as orders sank and employment growth slowed. Despite the latest PMI readings remaining below 50 - the threshold for contraction - the data was slightly better than economists polled by Reuters had expected, leading to a slightly firmer pound. The Organisation for Economic Cooperation and Development said on Tuesday that Britain's economy was set to lag major peers in 2023. In an October poll, the rate was expected to end this year at 3.75%.

☆ Shares brush off China COVID curbs, dollar retreats
▼ + stars: | 2022-11-22 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

The dollar pulled back from strong overnight gains while oil edged up after Monday's volatile sell-off. The MSCI All-World index of shares (.MIWD00000PUS) rose 0.2%, putting it on course for a second month of increases - its longest stretch of gains since late 2021. The dollar of the gains that took it to a 10-day high on Monday, when investors ditched risk assets over China's COVID flare-ups and was last down 0.2%. The dollar came under pressure in particular against the euro and the yen , which rose by 0.2% and 0.3%, respectively. Oil rose on Tuesday, a day after Saudi Arabia denied a media report that it was discussing an increase in oil supply with OPEC and its allies.

☆ Global shares shake off China COVID curbs, but investors stay cautious
▼ + stars: | 2022-11-22 | by ( Amanda Cooper | ) www.reuters.com time to read: +3 min

The dollar pulled back from strong overnight gains while oil took a pause from Monday's retreat. The MSCI All-World index of shares (.MIWD00000PUS) rose 0.2%, putting it on course for a second straight month of increases - its longest stretch of gains since late 2021. The dollar of the gains that took it to a 10-day high on Monday, when investors ditched risk assets over China's COVID flare-ups and was last down 0.2%. The dollar came under pressure in particular against the euro and the yen , which rose by 0.2% and 0.3%, respectively. Oil prices rose on Tuesday, a day after Saudi Arabia denied a media report that it was discussing an increase in oil supply with OPEC and its allies.

☆ Dollar set for biggest two-day fall since 2009 as rate outlook shifts
▼ + stars: | 2022-11-11 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

[1/2] U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. Data on Thursday showed consumer inflation rose 7.7% year-on-year in October, its slowest rate since January and below forecasts for 8%. The dollar staged its biggest drop since late 2015 on Thursday as Treasury yields plunged, while other currencies - the yen and the pound in particular - jumped. The dollar index was down nearly 1.1%, having lost over 3% in the last two days - its biggest two-day decline since March 2009. The offshore yuan rallied by as much as 1.3% to hit its highest in over a month against the dollar, to 7.0592.

☆ Dollar heads for biggest two-day fall since 2009 as rate outlook shifts
▼ + stars: | 2022-11-11 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

[1/2] Chinese Yuan and U.S. dollar banknotes are seen in this illustration taken February 10, 2020. Data on Thursday showed consumer inflation rose 7.7% year-on-year in October, its slowest rate since January and below forecasts for 8%. The dollar staged its biggest drop since late 2015 on Thursday as Treasury yields plunged, while other currencies - the yen and the pound in particular - jumped. The dollar index was down nearly 1%, having lost over 3% in the last two days - its biggest two-day decline since March 2009. "It can be a little dangerous in that the 'bad news' is still out there and could come back to burn us, particularly with respect to the Fed," Rabobank currency strategist Jane Foley said.

"There's a growing perceived chance that the Fed will be the last major central bank to throw in the towel and arrest its tightening cycle," said Francesco Pesole, FX strategist at ING. U.S. payrolls data released later on Friday will provide the latest indication of the health of the U.S. economy. In contrast, Friday data showed euro zone business activity contracted last month at the fastest pace since late 2020. CHINA HOPESFriday's 'risk on' move in currencies, as well as commodity and share markets, followed reports China could relax its anti-COVID restrictions, which have been hobbling economic activity. "CNH (the yuan traded offshore) will tell you if investors are running hot or cold in China markets.

☆ Caution creeps into world stocks as Fed gets ready to hike big again
▼ + stars: | 2022-11-02 | by ( Dhara Ranasinghe | ) www.reuters.com time to read: +4 min

Another aggressive rate hike to contain hot inflation when the Fed conclides its two-day meeting later is anticipated. For markets, the key question is whether the Fed will also signal it could slow additional rate hikes, in a so-called dovish pivot. European stock markets opened higher, but moved lower as the day wore on. U.S. stock futures, which provide an indication of how Wall Street will open, also lost some of their strength and were mixed , . The robust dollar retreated in October on speculation the Fed might indicate a slowdown in its aggressive tightening campaign.

☆ World stocks upbeat, even as Fed gets ready to hike big again
▼ + stars: | 2022-11-02 | by ( Dhara Ranasinghe | ) www.reuters.com time to read: +4 min

For markets, the key question is whether the Fed will also signal it could slow additional rate hikes, in a so-called dovish pivot. European stock markets opened mostly firmer (.STOXX), Asian shares outside Japan rallied to a two-week high (.MIAPJ0000PUS) and U.S. equity futures pointed to a firm open for Wall Street , . Cummins expects the Fed to step down to a 50 bps hike in December. It fell 0.75% against the Japanese yen to 147.16 yen amid fears of intervention from authorities and thin liquidity. The robust dollar has pulled back in October on speculation the Fed might indicate a slowdown in its aggressive tightening campaign.

☆ New UK finance minister rips up Truss’ economic plan in stunning policy reversal
▼ + stars: | 2022-10-17 | by ( Julia Horowitz | ) edition.cnn.com time to read: +5 min

The stunning reversal would raise £32 billion ($36 billion), he said. “No government can control markets, but every government can give certainty about the sustainability of public finances,” Hunt said. “The United Kingdom will always pay its way.”The moves represent a gutting of Prime Minister Liz Truss’ flagship policies and leave her in a perilous political position. On Friday, Truss fired Kwasi Kwarteng, her previous finance minister, and reinstated a big tax hike on corporations. “A central responsibility for any government is to do what’s necessary for economic stability,” Hunt said.

☆ Could the British pound hit parity with the dollar? Here's what the bulls and bears say
▼ + stars: | 2022-10-14 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

First, it fell to an all-time low against the U.S. dollar after the U.K. government announced its "mini-budget." And of course, a strong dollar hasn't helped either . Strategists at Nomura were the most bearish on the pound, expecting it to trade below parity — at $0.98 — by the fourth quarter. ING: £1 = $1-$1.05 Francesco Pesole, an FX strategist at ING, said the pound looked too strong at $1.10. "A policy mix of loose fiscal policy (with little detail on how to close the deficit) and milder monetary tightening gives investors few reasons to hold the pound," they said.

While estimates of how much pension funds need to sell vary they are in the hundreds of billions of pounds, and it is not known how much funds have already raised in cash. Tuesday's BoE intervention was targeted at buying index-linked bonds, a far smaller market than gilts, dominated by pension funds and which suffered another significant selloff this week. He estimates pension funds could sell assets totalling around 300 billion pounds as they adjust hedging positions, although it is not clear how much they may have sold already. He estimated 100 billion pounds could come from gilts and the rest from assets such as global credit, global equities and asset-backed securities. "The bottom line is a lot of schemes need to rebalance their portfolios," he said.

LONDON, Oct 11 (Reuters) - The U.S. dollar edged back towards September's multi-year highs on Tuesday as worries about rising interest rates and geopolitical tensions unsettled investors, while the yen hovered near the level that prompted last month's intervention. "There are the Fed minutes and U.S. CPI this week that will be quite important for strengthening hawkish Fed expectations and could continue to support the dollar," Pesole added. "It's not that easy to gauge at which level the Bank of Japan will intervene," ING's Pesole said. "It's mostly a matter of how orderly the depreciation in the yen is," Pesole added, although he doubts the BoJ would be comfortable with the yen at 150 per dollar. Adding to the BoE's headaches was labour market data that showed Britain's unemployment rate fall to its lowest since 1974 in the three months to August, but the drop was driven by a record jump in the number of people leaving the labour market.

☆ Putin speech sends sterling to fresh 37-year low ahead of Fed, BoE meetings
▼ + stars: | 2022-09-21 | by ( Lucy Raitano | ) www.reuters.com time to read: +3 min

Pound and U.S. dollar banknotes are seen in this illustration taken January 6, 2020. An expected interest rate hike by the U.S Federal Reserve (Fed) later in the day played into market sentiment, with eyes also on a Bank of England rate decision and a new government mini-budget this week. By 1143 GMT, the pound was down 0.31% against the dollar at $1.13460 pence , having earlier hit $1.13040 - its lowest since 1985. Register now for FREE unlimited access to Reuters.com Register"This morning’s dip is primarily a function of the Russia news. The Office for National Statistics said public sector borrowing excluding state-owned banks stood at 11.82 billion pounds ($13.44 billion) last month.

Search resuls for: "Pesole"

23 mentions found