Date: JULY18, 2018
Daily World Economic and Financial News
(CNBC): JULY18, 2018 ---- The dollar rose across the board on Wednesday, climbing to a six-month high against the yen, after Federal Reserve Chairman Jerome Powell gave an upbeat outlook for the U.S. economy and reinforced views that the Fed was on track to steadily hike interest rates. In closely watched congressional testimony on Tuesday, Powell said he saw the United States on course for years more of steady growth, while largely discounting the risks associated with a trade war. The dollar was up 0.05 percent at 112.955 yen after going as high as 113.08, its strongest since January 9. The euro dipped 0.05 percent to $1.1653 after losing 0.4 percent overnight.
(CNBC): JULY18, 2018 ---- Gold prices on Wednesday held steady near a one-year low hit in the previous session, as the dollar firmed after Federal Reserve Chairman Jerome Powell's U.S. economic outlook reinforced views the central bank is on track to steadily hike interest rates. Spot gold was largely unchanged at $1,227.78 an ounce at 0315 GMT. On Tuesday, it fell 1 percent and hit its lowest since last July at $1,225.58 an ounce. U.S. gold futures for August delivery were little changed at $1,227.80 an ounce.
(CNBC): JULY18, 2018 ---- Oil prices dropped on Wednesday after an industry group reported that U.S. crude inventories rose last week, defying analyst expectations for a significant reduction. Brent futures were down 31 cents, or 0.4 percent, at $71.85 a barrel by 0240 GMT. They rose 32 cents to $72.16 a barrel on Tuesday, after earlier touching a three-month low. U.S. West Texas Intermediate crude was down 36 cents, or 0.5 percent, at $67.72. It settled up 2 cents at $68.08 a barrel the session before, coming off a nearly one-month low.
(REUTERS): JULY18, 2018 ---- Investors trimmed their bearish positions on emerging Asian currencies over the past two weeks, a Reuters poll showed, although escalating Sino-U.S. tensions worsened the mid-term outlook for regional units. Risky asset classes such as regional equities and currencies were battered over the past few months amid a deepening dispute on trade the United States and China.
(REUTERS): JULY18, 2018 ---- Recent dollar .DXY strength also weighed on Asian units. The currency stood at a six-month high against the yen, bolstered by expectations that the U.S. Federal Reserve would hike interest rates two more times in 2018. NIn Asia, bearish bets on the Chinese yuan CNY=CFXS eased slightly, the Reuters poll of 13 respondents showed. But a majority of poll responses came in before the U.S. announced the plan for much wider tariffs on China goods.
(BLOOMBERG): JULY18, 2018 ---- Asian stocks advanced after an upbeat assessment on the U.S. economy from Federal Reserve Chairman Jerome Powell comforted investors wary of a blowout in protectionism. Equities climbed in Japan, with the Topix index set to close at a four-week high, as well as in Australia and China, and in emerging markets in the region. Stocks in Hong Kong and South Korea pared gains with U.S. futures. The Nasdaq Composite Index hit a record high despite disappointing subscriber numbers from Netflix Inc. The dollar climbed against major peers as it held gains after Powell told a Senate committee that the Fed will continue to gradually raise interest rates “for now,” suggesting no iron-clad plan to keep tightening through next year.
EUR/USD PAIR ANALYSIS
Technically, the pair is gaining downward traction, but still inside familiar levels. In the 4 hours chart, it fell below all of its moving averages, which are confined to a tight range and directionless around 1.1680/90, while technical indicators turned south almost vertically, having already crossed their mid-lines. Renewed selling interest around the current level should lead to a test of 1.1590, the low established on July 2nd, while below this last, 1.1550 is the next probable bearish target.
Support levels: 1.1620 1.1590 1.1550 Resistance levels: 1.1685 1.1720 1.1755 (FXSTREET)
International & Financial Terms
- Asia Securities Industry & Financial Markets Association (ASIFMA): Association which aims to promote growth, development and transparency of the Asian financial system and to assist its integration into the global financial market.
- Associated gas: Natural gas found in a crude oil reservoir, separate from, or in solution with, the oil.
- Calculation Period: The number of days between Payment Dates or between the Effective Date and the first Payment Date.
- Call option: A financial instrument which gives the holder (Buyer) the right, but not the obligation, to buy a specified underlying on or before a specified date or dates.
- Carry trade: A trade or strategy where the aim is to generate ongoing positive cash flow.
Compiler: A Bank Dealing Room Section
Management of International Deputy The Expert In Charge Of Dealing Room