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Apr 14, 2015

Dollar slumps on data, IMF’s U.S. growth forecasts

NEW YORK (Reuters) – The dollar sank on Tuesday after March U.S. retail sales data, while the strongest in a year, came in below expectations, triggering a sell-off that pulled the greenback down from the prior week’s strong gains.

At the same time, a second blow to the U.S. economic outlook came from the International Monetary Fund. It lowered its forecasts for U.S. growth to 3.1 percent for this year and next from January’s expectations of 3.6 percent and 3.3 percent, respectively.

Apr 10, 2015

Interest rate differentials weigh down the euro

NEW YORK, April 10 (Reuters) – The euro slumped for a fifth
straight session against the U.S. dollar on Friday to a 3-1/2
week low as falling European interest rates drove investors into
greenbacks and the yen.

The euro traded around $1.06005, off 0.54 percent on the EBS
trading platform. It had slumped to $1.05670, its weakest level
since March 17. For the week the euro lost 3.38 percent, its
worst week against the greenback since September 2011.

Apr 10, 2015

U.S. investors unsettled by Turkey’s politics

NEW YORK (Reuters) – Fidelity Investments portfolio manager John Carlson has been investing in Turkey for more than 20 years, but he hasn’t been as bullish on the country of late. Recent political developments mean he’s likely to remain a bit wary, even after big declines in equity prices and the currency.

Ahead of a critical June parliamentary election, political risk increased when Turkish President Tayyip Erdogan gave central bank governor Erdem Basci a tongue-lashing for not cutting interest rates in January to boost growth.

Apr 10, 2015

Euro undermined by force of rate differentials

NEW YORK (Reuters) – The euro slumped for a fifth straight session against the U.S. dollar on Friday to a 3-1/2 week low as falling European interest rates drove investors into greenbacks and the yen.

“You can look at euro/yen, clearly breaking lower. The big picture globally is negative yields in the euro zone and long yields trading at incredibly low yields, substantially lower than Japanese yields,” said Jens Nordvig, global head of currency strategy at Nomura in New York.

Apr 9, 2015

Dollar rallies on rate differentials, policy forecasts

NEW YORK, April 9 (Reuters) – The U.S. dollar hit a
near-three-week peak on Thursday, driven higher by sentiment
that U.S. interest rates inevitably will rise, with the prospect
of a June increase still in the mix despite spotty economic
data.

Interest rate differentials between benchmark U.S. and
German 10-year government bonds widened to 1.771 percent on
Thursday, their biggest spread since March 26.

Apr 9, 2015

Rate differentials drive steady dollar gains

NEW YORK (Reuters) – The U.S. dollar rose for a fourth consecutive session on Thursday, driven by sentiment that U.S. interest rates inevitably will rise, with the prospect of a June increase still in the mix despite spotty U.S. economic data.

Weekly U.S. jobless claims rose less than expected last week and the four-week moving average hit its lowest level since 2000, suggesting the slowdown in U.S. economic activity in the first quarter might be a temporary blip.

Apr 9, 2015

Fed officials say June rate hike still in play, hinges on data

NEW YORK (Reuters) – The Federal Reserve could still hike interest rates in June despite weak recent U.S. data and investor skepticism, two influential officials with the central bank said on Wednesday, putting the spotlight squarely on the economy’s performance in the next two months.

Disappointing U.S. jobs growth, manufacturing activity, and retail sales over the winter had pushed market expectations for a rate hike to later in the year. June has long been seen as the earliest the Fed could tighten policy, after more than six years of near-zero rates.

Apr 8, 2015

June rate hike still in play as Fed officials eye data

NEW YORK (Reuters) – Two influential Federal Reserve officials said they could still hike U.S. interest rates in June despite weak recent economic data and skepticism among investors, putting the spotlight squarely on the economy’s performance over the next two months.

Disappointing U.S. jobs growth, manufacturing activity, and retail sales over the winter had pushed market expectations for a rate hike to later in the year. June has long been seen as the earliest the Fed could tighten policy, after more than six years of near zero rates.

Apr 7, 2015

U.S. dollar rises, sentiment favors interest rate outlook

NEW YORK, April 7 (Reuters) – The U.S. dollar recovered lost
ground on Tuesday as trading desks returned to full strength
after the Easter weekend and underlying trends for its continued
rise reappeared, although it remains hemmed in to tight ranges
by mixed economic data.

A surprising move by the Reserve Bank of Australia not to
cut interest rates boosted the Aussie dollar, bucking the
prevailing greenback rally.

Apr 7, 2015

U.S. dollar recovers; Aussie up after rates held unchanged

NEW YORK (Reuters) – The U.S. dollar recovered lost ground on Tuesday as trading desks returned to full strength and underlying trends for its continued rise reappeared, although it remains hemmed in to tight ranges by mixed economic data.

A surprising move by the Reserve Bank of Australia not to cut interest rates boosted the Aussie dollar, bucking the prevailing greenback rally.

    • About Daniel

      "Senior Correspondent covering global financial markets, investing and foreign policy. I'm New York-based with 20+ years of experience in text, TV and radio. My current post lets me roam across all asset classes and geography, from the developed to the emerging markets. I've reported and taught journalism in Asia, Europe, Latin America and the United States."
      Joined Reuters:
      1997
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