Currency Markets Mixed On Economic OutlookCurrency Markets Mixed On Economic Outlook

The US dollar was robust on the currency markets on Monday after US economic data signaled a strengthening across the economy.

Such strengthening might mean that the US Federal Reserve will not have to cut key interest rates.

The buck was near a one-week high against the euro at $1.1096. Against the Japanese yen, it was trading near an eight-month high at 110.19 per dollar.

Data from the last week showed homebuilding figures rose to a 13-year high in December. Also, retail sales appeared to be growing, while a measure of manufacturing activity rebounded to an eight-month high.

Futures indicated that nobody believed the Federal Reserve would slash interest rates. The US central bank’s next policy meeting will be at the end of the month.

Other data released this week included the Australian jobs report on Thursday and the consumer price index data from New Zealand on Friday.

Eurozone and other Currency Markets

Meanwhile, over in the Europe, economic data headed in a different direction. Last week, the German economy posted its weakest growth since 2013. In Britain, the inflation rate was weak, and retail sales slumped.

The sterling went lower to $1.3002, which was its weakest in a week.

Over in China, Beijing posted its slowest annual growth in almost 30 years last week. However, December data also showed renewed business confidence and more rapid factory output.

In offshore trade, the yuan was flat at 6.8643 per dollar. This figure is not far below a six-month high that it hit last week.

Also, both the Australian and New Zealand dollar were up slightly. Investors await critical economic data in the two countries this week.

For the case of Australia, the data will signal whether the central bank has to impose a rate cut. Its next policy-setting meeting will be on February 4. Futures indicated a 46% chance of a rate cut.

Same time:

Brent and WTI crude prices jumped on Monday in Asia amid the heating up in tensions among Mideastern countries. Concerns raged over output and export numbers.

US Crude oil WTI futures gained 1.1% to $59.25. Meanwhile, International Brent oil futures soared 1.3% to $65.69. Sunday saw Iraq stopping output at an oilfield. This decision comes amid intensifying and widespread unrest.

by Elliot Chang
References and Bibliography
Select best brokers to trade with, read broker reviews:

GMO Trading Review | iTrader Review | OINVEST Review

Rated:NR/0 Votes
4 Views
Add To My Article Reading List
Add To My Article Reading List
Print Article
Print
More Article By Elliot Chang
More Article by Elliot Chang
Share
More Articles From Tips and Advice
More Articles From Tips and Advice
Related Articles and Readings
Do You Understand How a GMIB Works By: Scott Demonte
Is it a big surprise to me that the average investor does not understand how their variable annuity benefits work? No, I wish it was. It is for this reason I launched annuityiq.com. The fact that few people actually understand their variable annuity benefits is absolutely believable.These benefits are sold ...
Benefits Of Wedding Reception Dollar Dances By: Dawn Dingus
Wedding reception dollar dances require the bride and groom to slow-dance with each guest who is willing to pay a dollar or more for the honor of sharing in a special dance with one of the newlyweds. There are several benefits to hosting dollar dances during your wedding reception. Learn ...
Multi Million Dollar Estates In San Diego By: Greg Hitchcock
Ask anyone what makes purchasing multi million dollar estates different from buying any other house, and invariably he or she will reply, "money." Greater sums raise the stakes and the stress level. Add to that a limited inventory of luxury homes in any one market, buyers and sellers with fewer ...
ETFs and the Falling US Dollar By: Carl Delfeld
After a year during which higher American interest rates helped stem pressure on the U.S. Dollar, the currency is losing ground around the world. U.S. policy makers and investors are scrambling to cope with what may a long period of dollar weakness.You don't have to go far to see ...
How To Sell Wholesale Merchandise To Dollar Stores By: Donny Lowy
Dollar stores are great customers for wholesalers.They are usually located in high traffic locations which means that they have plenty of customers on a daily basis.A high number of customers translates into large volume sales for dollar stores that have the right selection of wholesale merchandise.This is what makes dollar ...
The information provided in this article and/or the comments is the sole responsibility of their respective authors and does not necessarily reflect the opinion of ezinepost.com. ezinepost.com  does not endorse any article and/or comments published by our web users unless otherwise noted. 

Member Panel

login to submit articles and more

StatisticsEZINEPOST.COM

  • » Active Categories: 419
  • » Active Articles:252470
  • » Active Authors:32056
  • » Active Members: 38202
  • » Statistics Updated:
    - Wed Jan 15th, 2020 03:31PM EST