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Jul 31, 2015

Dollar ends July on sour note on weak U.S. labor cost data

NEW YORK (Reuters) – The dollar fell against a basket of currencies on Friday, ending a decent month on a sour note as a record-low rise in U.S. employment costs in the second quarter dialled back bets the Federal Reserve would raise interest rates later this year.

The euro rebounded strongly against the greenback following Thursday’s losses in the wake of encouraging inflation data in the euro zone.

Jul 31, 2015

Who needs the Fed? The rate hike cometh on its own

NEW YORK, July 31 (Reuters) – As traders, market pundits and
economists jaw over whether the Federal Reserve this year will
lift its benchmark lending rate for the first time in almost a
decade, several corners of the U.S. bond market aren’t waiting
around.

A wide range of short-term interest rates, which tend to be
the most sensitive to Fed policy expectations, have been quietly
grinding higher for weeks, or in some cases much longer. Several
have even surpassed their levels from two years ago during the
bond market’s “taper tantrum,” when prices tanked and yields
shot up as the Fed pondered whether to halt its massive
asset-purchase program.

Jul 30, 2015

Dollar rises as U.S. growth supports rate-hike view

NEW YORK (Reuters) – The dollar rose to its highest level this week on Thursday as news of faster U.S. economic expansion in the second quarter supported the notion that the U.S. Federal Reserve would raise interest rates, perhaps as early as September.

The government’s first assessment of gross domestic product growth in the second quarter was 2.3 percent, swifter than the revised 0.6 percent pace in the first quarter but lower than the consensus 2.6 percent rate forecast of analysts polled by Reuters.

Jul 29, 2015

Dollar rises as Fed’s jobs view hints at rate hike

NEW YORK, July 29 (Reuters) – The dollar rose modestly
against a basket of currencies on Wednesday as the Federal
Reserve upgraded its view of the labor market, supporting some
traders’ opinion that it would raise benchmark U.S. interest
rates, perhaps as early as September.

The latest statement from the Federal Open Market Committee,
the U.S. central bank’s policy-setting group, affirmed the
prevalent view that the Fed is ready to end its near-zero
interest rate policy by year-end as the world biggest economy
has dug out of a recession worsened by the global credit crunch
nearly seven years ago.

Jul 29, 2015

Dollar holds steady as traders await clues from Fed

NEW YORK (Reuters) – The dollar held steady against major currencies on Wednesday as traders awaited possible clues from the Federal Reserve on whether it will raise interest rates, perhaps as early as September.

The prevalent view has been the U.S. central bank is ready to end its near-zero interest rate policy by year-end as the world biggest economy has dug out of a recession worsened by the global credit crunch nearly seven years ago.

Jul 28, 2015

U.S. consumer mood sours, home price growth stalls

NEW YORK (Reuters) – U.S. consumer confidence took its biggest tumble in four years in July on a less upbeat jobs outlook, while home appreciation in major cities stalled in May, suggesting a spring pause in housing demand.

The disappointing data comes as Federal Reserve policymakers meet to consider whether the U.S. economy is strong enough to warrant an end to the Fed’s near zero interest rate policy, perhaps as soon as September.

Jul 27, 2015

London, North American forex volume shrank in six months to April: surveys

LONDON/NEW YORK (Reuters) – Average daily volume in London and North America shrank in the six months to April after a shock decision by the Swiss National Bank to eliminate a cap on the Swiss franc, surveys by the New York Federal Reserve Foreign Exchange Committee and Bank of England showed on Monday.

The drop, following a handful of record days in December and January when trading was twice the $5-trillion daily average, bodes ill for banks which rely on higher trading volumes in fixed income, currencies, and commodities to bolster profits.

Jul 24, 2015

Dollar edges up, supported by weak overseas economic outlook

NEW YORK, July 24 (Reuters) – The U.S. dollar edged up
against most other major currencies Friday on data pointing to
sluggish overseas economic growth, while the Australian dollar
sagged to a six-year low after a Chinese manufacturing gauge
fell to its weakest in 15 months.

Recent U.S. economic figures have supported the notion that
the Federal Reserve sees the economy as strong enough for it to
end its near-zero interest rate policy as early as September, an
action that dollar bulls have betting on since last year.

Jul 24, 2015

Weak overseas economic growth boosts dollar, Aussie at six-year low

NEW YORK (Reuters) – The U.S. dollar rose against most other major currencies on Friday on data pointing to sluggish overseas economic growth, while the Australian dollar sagged to a six-year low after a Chinese manufacturing gauge fell to its weakest level in 15 months.

Recent U.S. figures have supported the notion that the Federal Reserve sees the economy as strong enough for it to end its near zero interest rate policy as early as September, an action that dollar bulls have betting on since last year.

Jul 23, 2015

Euro rises as Greece makes move for bailout

NEW YORK, July 23 (Reuters) – The euro strengthened on
Thursday, briefly rising above $1.10 for the first time in a
week, as the Greek parliament approved a second set of reforms
required to start negotiations with lenders in a bid to avert
bankruptcy.

The greenback stalled against other major currencies despite
expectations that the U.S. Federal Reserve would raise interest
rates by year end.

    • About Richard

      "I am currently part of the U.S. Treasuries group based in New York, which covers the government debt market as well as interest rate derivatives. Previously, I was a specialist in housing and structured finance. Prior to joining the fixed income team, I had written extensively about the U.S. energy industry with focus on market and regulatory issues."
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