The British Pound rose slightly against the US dollar on Friday, despite the British Prime Minister Boris Johnson's negative comments. Johnson said the UK will leave the EU customs union and the single market without an agreement due to the failure of delivering a fundamental change of approach from Brussels. This came after the leaders of the European Union decided they would continue negotiations in the coming weeks with the British side. The market remain concerned about the coronavirus global impact, especially as the second wave of infections forced several major European countries to re-impose lockdown restrictions, led by the UK and France. GBP/USD rose 0.1% to 1.2924 as of 21:16 GMT, the pair hit an intraday high of 1.2962 and a low of 1.2869.
The US dollar fell against most of its peers on Friday, amid anticipation of the second fiscal aid package to ease the coronavirus impact on the US economy. President Donald Trump decided last week to stop the second Covid-19 stimulus talks between his administration and Congress leaders until after the presidential election in November. However, the Trump administration proposed to the Congress a $1.8 trillion fiscal stimulus package, and then President Trump informed Treasury Secretary Steven Mnuchin to raise even more. The US retail sales index rose 1.9% in September, beating forecasts of 0.7%, and the first reading of the University of Michigan's consumer confidence survey rose to the highest level since March at 81.2 points. The dollar index fell against a basket of currencies by 0.1% to 93.7 points as of 20:24 GMT, after it hit a high of 93.8 and a low of 93.5.
The energy services firm Baker Hughes announced today that the US crude oil drilling rigs count rose 12 rigs to 205 during this week. While the natural gas rigs rose by 1 to 77 rigs, with the total of oil and gas rigs rising by 13 to 282 rigs.
The Canadian dollar rose against most of its peers on Friday, shrugging off disappointing data and pressures on oil prices, which is one of the main pillars of the Canadian government budget. Data showed today that Canada's manufacturing sales index fell 2% in September, worse than forecasts for a drop by 1.4%, after the index rose 7.2% in August. The market remain concerned about the coronavirus global impact, especially as the second wave of infections sparked in several major countries As of 17:53 GMT, WTI crude November futures at NYMEX fell by 0.2% to $40.8 a barrel, after hitting a high of $41.05 and a low of $40.08. Brent December futures fell 0.4% to $42.9 a barrel, with a high of $43.2 and a low of $42.2.
US consumer sentiment improved in October despite constant concerns over the coronavirus pandemic. The University of Michigan's consumer sentiment survey improved to 81.2 this month, the highest since March, while analysts expected a dip to 80.2.
US retail sales rose 1.9% in September, passing estimates of a 0.7% increase. Core sales, excluding automobiles, rose 1.5%, besting estimates of 0.4%.
Euro rose in European trade against dollar off two-week lows while still heading for a weekly loss as investors shun riskier currencies. EUR/USD rose 0.1% to 1.1720, after closing down 0.3% yesterday, marking two-week lows at 1.1688. The common currency is now over 0.9% down this week against dollar, on track for the first weekly loss in three, and the second worst in the last month. Haven demand rose on dollar again as hopes for US stimulus faded before elections, while a second coronavirus wave takes hold in Europe and the US. US Treasury Secretary Steven Mnuchin almost ruled out expanding stimulus before elections due to disagreement with Democrats on priorities. Governments in Europe have taken new restrictions to arrest the spread of Covid, threatening recent economic recovery.
USD/JPY tilted lower in Asian trade off September 14 highs amid a lack of data from Japan and and ahead of some US data later today. As of 07:18 GMT, USD/JPY fell 0.20% to 105.24, with an intraday low at 105.19. From the US, retail sales are expected up 0.7% in September, compared to 0.6% in August, while core sales are expected up 0.4%. US industrial production is expected to have risen 0.6% in September, while the capacity utilization rate is expected up to 72.1% from 71.4%. The University of Michigan consumer sentiment survey is expected down slightly to 80.2 from 80.4 in September. The World Health Organization has reported nearly 38.5 million global cases of Covid 19 so far, with the death toll approaching 1.09 million.
The British Pound fell against the US dollar on Thursday, despite positive European statements about UK's call for a Brexit deal. EU leaders will meet for a two-day summit to assess the ongoing negotiations with the UK on post-Brexit trade relations. The leaders of the European Union decided they would continue negotiations in the coming weeks with the British side, Reuters reported. This came despite the British Prime Minister Boris Johnson' warning that if no agreement is reached, the UK would have to accept a no-deal Brexit scenario. Chief among the major disagreements between London and Brussels are the competition regulations, and fishing quotas in British territorial waters. GBP/USD fell 0.8% to 1.2899 as of 20:51 GMT, the pair hit an intraday high of 1.3030 and a low of 1.2890.
The US dollar rose against most of its rivals on Thursday, on strong safe-haven bids, amid concerns over the talks for the second stimulus package. US President Donald Trump said that he had informed Treasury Secretary Steven Mnuchin of the necessity to offer more than $1.8 trillion within the second Covid-19 package. However, some Democrats in Congress ruled out voting on the package ahead of the presidential election in November. Data showed that the initial unemployment claims rose to 898K last week, worse than forecasts of 810K, vs. 845K last week. The dollar index rose against a basket of currencies by 0.5% to 93.8 points as of 18:46 GMT, after it hit a high of 93.9 and a low of 93.3.
The Canadian dollar fell on Thursday, weighed down by weak economic data and growing concerns about global economic growth. This came coronavirus infections continued to rise globally at a rapid rate, which led some countries, including France, to re-impose lockdown restrictions to curb the virus spread. Economic data showed the Canadian non-farm employment change lost 240.8K jobs in September after losing 770.6K jobs in August. Otherwise, US President Donald Trump said that he had informed Treasury Secretary Steven Mnuchin of the necessity to offer more than $1.8 trillion within the second Covid-19 package. However, many ruled out the US congress would vote on the package ahead of the presidential election in November. CAD/USD fell 0.7% to 0.7553 as of 17:34 GMT, after the pair hit a high of 0.7609 and a low of 0.7541.
The US Energy Information Administration (EIA) showed today that the US crude inventories fell 3.8 million barrels to reach a total of 489.1 million barrels during the past week, missing analysts' forecasts of a drop by 2 million barrels. The gasoline stockpiles fell 1.6 million barrels to a total of 225.1 million, and distillate stockpiles fell 7.2 million barrels to a total of 164.6 million. While the American Petroleum Institute (API) showed yesterday in preliminary data that inventories fell by around 5.4 million barrels during same period.
Crude prices dropped 4% as the US market opened on Thursday, to head for the first loss in 3 days, due to diminished hopes about the second Covid-19 relief package, which has stolen spotlight from a surprise drop in the US crude inventories preliminary data, while the official weekly report on inventories will be released later today. The US crude fell 4% to $39.44 a barrel, after it opened at $41.06, and hit an intraday high of $41.27. The US crude gained 2.25% yesterday, rising for the second straight day, thanks to hopes of improved demand in China. US Treasury Secretary Steven Mnuchin said that getting an aid package done before the November election and executing on that will be difficult, adding that differences remained in his discussions with House Speaker Nancy Pelosi on the country's fiscal spending priorities. These statements diminished hopes about resolving the complex political crisis over the new relief Covid relief package, which is expected to weigh down heavily on the US recovery path. The American Petroleum Institute (API) revealed yesterday in preliminary data that the US crude inventories fell 5.4 million barrels during the week ending October 9, beating forecasts of a drop by 2.3 million barrels. The total US commercial inventories fell to 492 million barrels, the lowest level since the week ending April 10, in a positive sign of consumption levels. The US Energy Information Administration (EIA) will release today the official data on inventories and production levels in its weekly report, with forecasts for inventories to drop by 2.1 million barrels. As for the US production, it rose by 300K barrels per day, during the past week, to reach a total of 11 million bpd (the highest level since the week ending July 31).
At 12:30 GMT, the US economy released the unemployment claims reading, at 0.898 million in the week ending October 10, worse than forecasts of 0.810 million, vs. 0.845 million in the previous week after it was revised from 0.840 million.
The US dollar rose on Thursday, to hit a 1-week high and resume gains after yesterday's pause, thanks to demand for the US currency as the best alternative investment, after hopes about the second Covid-19 relief package faded, ahead of the US unemployment claims data for September. The dollar index rose 0.4% to 93.78 points, after it opened at 93.43 points, and hit an intraday low of 93.37 points. The index fell 0.15% yesterday, to take a breather, after it rose in the previous day by 0.5% and posted the largest daily gain since September 21. Investors focused on the greenback as the best alternative investment, after hopes diminished about the new US aid package to be enacted before the presidential election early November. US Treasury Secretary Steven Mnuchin said that getting an aid package done before the November election and executing on that will be difficult, adding that differences remained in his discussions with House Speaker Nancy Pelosi on the country's fiscal spending priorities. Investors are anticipating the unemployment claims reading today, which is a key indicator of the US labor market, amid the latest developments in the coronavirus crisis and the rising infections in many US states.
USD/JPY tilted higher in Asian trade off October 2 lows following earlier data from Japan and ahead of US data today. As of 06:53 GMT, USD/JPY rose 0.07% to 105.24, with an intraday high at 105.30. Earlier Japanese data showed the Tertiary Industrial Index up 0.8% in August, missing estimates of 1.2%. From the US, unemployment claims for the week ending October 10 are expected down 30 thousand to 810 thousand, while continuing claims are expected down 276 thousand to 10.976 million. US Philly Manufacturing Index is expected down to 14.4 from 15, while the Empire State Manufacturing Index is expected down to 13.9 from 17.
The US dollar slipped against most of its major counterparts on Wednesday, to pare its early gains, despite the release of better-than-expected economic data in the US. Investors are focusing on the ongoing debate between the White House and Congress about the second Covid-19 stimulus package. Johnson & Johnson announced this week pausing the clinical trials for its COVID-19 vaccine candidate after an unexplained illness in one of the volunteers. Data showed today that the US producer price index rose 0.4% in September, beating forecasts of 0.2%. The core reading (excluding food and fuel prices) also rose by 0.4%, better than forecasts of 0.2%. The dollar index fell against a basket of currencies by 0.2% to 93.3 points as of 20:00 GMT, after it hit a high of 93.6 and a low of 93.2.
The Japanese yen rose against the US dollar on Wednesday, following news that China beefed up its purchases of Japanese government bonds. China recently increased its purchases of Japanese government bonds to the highest level in more than 3 years, and tripled its holdings between April and July this year compared to the same period in 2019. Japan's Ministry of Finance unveiled that China bought 1.46 trillion yen (or $13.8 billion) of medium and long-term Japanese bonds during the three months ending July, which is 3.6% more compared to the same period 2019. Otherwise, the Japanese industrial production index rose 1%during September, beating forecasts of 1.7%. As of 20:57 GMT, USD/JPY fell 0.4% to 105.09, after hitting a day high of 105.5 and a low of 105.04.
The US dollar rose on Wednesday, to extend gains for the second day, as recovery attempts from a 3-week low continued, thanks to demand for the US currency as the best alternative investment, ahead of the US producer price data for September. The dollar index rose 0.15% to 93.67 points, after it opened at 93.54 points, and hit an intraday low of 93.43 points. The index gained 0.5% yesterday, posting its first gain in 5 days, and rebounded from a 3-week low of 93.01 points. Investors focused on the greenback as the best alternative investment, after hopes about the new US aid package diminished, amid doubts the Republican and Democratic parties would reach a compromise. Additionally, Johnson & Johnson announced yesterday pausing its COVID-19 vaccine candidate clinical trials after an unexplained illness in one of the volunteers. Investors are anticipating key economic data releases today on the US producer price index for September, which delivers insight on the US inflation levels. The monthly producer price index reading will be released at 12:30 GMT, with forecasts for a rise by 0.2% in September vs. 0.3% in August, and the core reading for the same index (excluding food and fuel prices) is expected to rise by 0.2% vs. 0.4%.
At 12:30 GMT, the US economy released its reading for the producer price index, which rose by 0.4% in September, beating forecasts of 0.2%, while the index rose by 0.3% in August. The core reading (excluding food and fuel prices) also rose by 0.4%, better than forecasts of 0.2%, unchanged from the previous reading. This data is positive for the US economy.