Forex - Dollar gains as market bets Fed on course to taper stimulus

Investing.com - The dollar moved higher against most major currencies on Friday after investors digested U.S. housing and consumer sentiment data and determined that despite hit-or-miss numbers, the underlying economy is improving and will allow the Federal Reserve to taper stimulus programs soon.

Stimulus tools such as the Fed's USD85 billion monthly bond-buying program weaken the dollar to spur recovery, and talk of their dismantling can bolster the currency.

In U.S. trading on Friday, EUR/USD was down 0.07% at 1.3336.

The Commerce Department reported earlier that U.S. building permits rose 2.7% to 943,000 units in July, disappointing expectations for an increase of 2.9% to 945,000 units although June's figure was revised up to 918,000 units from 911,000.

The government added that housing starts rose 5.9% to 896,000 units in July, missing expectations for a 8.3% increase to 900,000 units. Still, June's figure was revised up to 846,000 units from 836,000.

Elsewhere, the Thomson Reuters/University of Michigan's preliminary consumer sentiment index fell to 80.0 in August from 85.1 in July. Analysts were expecting the index to rise to 85.5 this month.

Not all U.S. data missed expectations.

The Bureau of Labor Statistics said in a preliminary report that nonfarm productivity rose 0.9% in the second quarter, beating expectations for a 0.6% gain after a 1.7% decline in the previous quarter.

The day's data, while mixed, still painted a picture of an economy that is improving and will soon no longer require support from Federal Reserve stimulus measures.

Meanwhile in the euro zone, consumer price inflation remained unchanged at 1.6% in July from a year ago, in line with expectations.

The bloc's core consumer price inflation, which excludes food, energy, alcohol, and tobacco, rose 1.1% on year in July, also in line with expectations.

Separately, the European Central Bank said the current account surplus narrowed to EUR16.9 billion in June from a EUR19.5 billion surplus the previous month.

Analysts were expected the current account surplus to narrow to EUR19.0 billion in June.

The greenback, meanwhile, was up slightly against the pound, with GBP/USD down 0.04% at 1.5628.

The dollar was up against the yen, with USD/JPY up 0.14% at 97.52, and up against the Swiss franc, with USD/CHF trading up 0.05% at 0.9267.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.26% at 1.0334, AUD/USD up 0.52% at 0.9190 and NZD/USD trading up 0.36% at 0.8103.

Canadian manufacturing sales contracted 0.5% in June, according to official data, defying expectations for a 1.0% increase. Manufacturing sales for May were revised down to a 0.6% rise from a previously estimated 0.7% increase.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.18% at 81.32.

On Friday, the U.S. will release data on building permits, a leading indicator of future construction sector activity, as well as data on housing starts. The University of Michigan is to release its closely watched preliminary data on consumer sentiment.

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Argentinean economic acitivty fall less-than-expected

Investing.com - Economic activity in Argentina fell less-than-expected last month, official data showed on Thursday.

In a report, Instituto Nacional De Estadistic y Censos said that Argentinian Economic Activity fell to a seasonally adjusted 6.4%, from 7.8% in the preceding month.

Analysts had expected Argentinian Economic Activity to fall to 6.0% last month.

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Peruvian unemployment rate rises unexpectedly

Investing.com - The unemployment rate in Peru rose unexpectedly last month, official data showed on Thursday.

In a report, INEI Peru said that Peruvian Unemployment Rate rose to a seasonally adjusted 6.0%, from 5.8% in the preceding month.

Analysts had expected Peruvian Unemployment Rate to fall to 5.7% last month.

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Forex - Dollar slumps on mixed U.S. pricing data

Investing.com - The dollar softened against most major currencies on Thursday after U.S. industrial output and regional manufacturing barometers missed expectations and watered down better-than-expected consumer pricing and jobless reports.

The combo convinced many investors that the Federal Reserve will keep stimulus tools in place likely through December instead of September.

Stimulus tools such as the Fed's USD85 billion monthly bond-buying program weaken the dollar to spur recovery.

In U.S. trading on Thursday, EUR/USD was up 0.71% at 1.3351.

The Department of Labor reported earlier that weekly jobless claims in the U.S. fell to their lowest level since January 2008 last week, dropping by 15,000 to 320,000.

The Department of Labor also revealed that the U.S. consumer price index rose 0.2% in July from June and 2.0% from July of last year, in line with analysts' forecasts.

The core consumer price index, which is stripped of volatile food and energy costs, also rose 0.2% in July from June and 1.7% on year, also matching consensus forecasts.

The data reinforced views held by many the economic recovery may be strong enough to prompt the U.S. Federal Reserve to announce plans to taper its monthly USD85 billion bond-buying program this year, though soft output data dampened recent expectations for tapering to begin at the Fed's September meeting.

U.S. industrial production came in flat in July, according to the Federal Reserve, missing expectations for a 0.3% increase.

A separate Federal Reserve report revealed that manufacturing activity in the Philadelphia-region of the U.S. expanded at its slowest pace in four months in August, while manufacturing activity in New York state fell unexpectedly.

The Philadelphia Fed Manufacturing Index fell to 9.3 in August from 19.8 in July, falling far short of market forecasts for a 15.0 reading.

The Federal Reserve's New York Empire State Manufacturing Index fell to 8.24 in August from 9.46 in July, defying expectations for a gain to 10.00.

The data prompted many to trade on expectations that the Fed will put off tapering asset purchases until December and keep the dollar weak via monthly liquidity injections until then.

The greenback, meanwhile, was down against the pound, with GBP/USD up 0.94% at 1.5646.

The pound firmed after the Office for National Statistics reported that U.K. retail sales climbed 1.1% in July from June, far outpacing expectations for a 0.6% gain after a 0.2% increase in June.

Retail sales rose 3.0% on year, beating expectations for a 2.5% gain after rising at an annual rate of 1.9% in June.

Core retail sales, which exclude automobile sales, rose 1.1% in July from June, above forecasts for a 0.6% gain, after increasing 0.3% in the preceding month.

The dollar was down against the yen, with USD/JPY down 0.79% at 97.35, and down against the Swiss franc, with USD/CHF trading down 1.07% at 0.9256.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.35% at 1.0304, AUD/USD up 0.18% at 0.9138 and NZD/USD trading up 0.64% at 0.8079.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.71% at 81.18.

On Friday, the U.S. will release data on building permits, a leading indicator of future construction sector activity, as well as data on housing starts. The University of Michigan is to release its closely watched preliminary data on consumer sentiment.

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Forex - GBP/USD gains on soft U.S. pricing data, solid U.K. jobs report

Investing.com - The pound traded higher against the dollar on Wednesday after U.S. wholesale pricing data came in short of expectations while a U.K. jobs report met market consensus.

In U.S. trading on Wednesday, GBP/USD was trading at 1.5512, up 0.41%, up from a session low of 1.5423 and off from a high of 1.5546.

Cable was likely to find support at 1.5207, the low from Aug. 7, and resistance at 1.5574, Thursday's high.

The U.K. unemployment rate remained unchanged at 7.8% in June, according to the Office of National Statistics, in line with expectations.

The number of individuals claiming unemployment benefits fell by 29,200 in July, better than expectations for a decline of 15,000, which gave the pound support as did the minutes of the Bank of England's July meeting, which showed that the decision to provide forward guidance on future rate increases was not unanimous.

The BoE has established conditions under which forward guidance on rates would not apply. One of these says bank will consider raising rates if medium term inflation expectations rise above 2.5% over 18 to 24 months.

Monetary Policy Committee member Martin Weale called for tougher measures to ensure that the pledge to hold rates at record lows did not lead to a pickup in inflation though he did say he accepted the principles of forward guidance.

Last week the BoE announced plans to keep interest rates on hold at record lows as long as the U.K. unemployment rate remains above 7%.

Meanwhile in the U.S., the Department of Labor reported that the country's producer price index came in flat last month, missing expectations for a 0.3% increase after a 0.8% increase in June.

The core producer price index rose 0.1% in July, missing forecasts for a 0.2% increase.

A weak producer price index suggest inflationary pressures remain soft and stokes expectations that the Federal Reserve will keep the economy on monetary support.

The numbers dampened expectations that U.S. recovery is strong enough for the Federal Reserve to begin tapering its USD85 billion-a-month asset-purchasing program in the near future, which has kept the dollar weak since its inception.

The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP down 0.42% at 0.8548 and GBP/JPY up 0.34% at 152.23.

On Thursday, the U.K. is to release official data on retail sales.

The U.S. will release data on consumer inflation, jobless claims, industrial production and manufacturing data from the New York and Philadelphia Federal Reserve branches.

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U.S. stocks slump as pricing data sparks Fed uncertainty; Dow down 0.73%

Investing.com - U.S. stocks fell on Wednesday after wholesale pricing data missed expectations and added to uncertainty as to when the Federal Reserve will begin to scale back stimulus programs.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.73%, the S&P 500 index fell 0.52%, while the Nasdaq Composite index fell 0.41%.

The Department of Labor reported that the U.S. producer price index came in flat last month, missing expectations for a 0.3% increase after a 0.8% increase in June.

The core producer price index eased up 0.1% in July, missing forecasts for a 0.2% increase.

The report dampened expectations that U.S. recovery is strong enough for the Federal Reserve to begin tapering its USD85 billion-a-month asset-purchasing program at least in September when it holds its next monetary policy meeting.

Bond purchases tend to keep stocks elevated by keeping borrowing costs low.

Despite the soft producer price data stocks fell among sentiments that even if the Fed holds off on tapering at its September meeting, such a decision could likely come in December.

Elsewhere, St. Louis Fed President James Bullard said the Fed needs to see more economic indicators before it begins to tapering, which erased earlier losses though gains were short lived, as markets concluded that be it September or December, the days of Federal Reserve support for stock prices are numbered.

Trading volume was light.

Leading Dow Jones Industrial Average performers included Bank of America, up 0.62%, Alcoa, up 0.37%, and Microsoft, up 0.34%.

The Dow Jones Industrial Average's worst performers included Home Depot, down 2.53%, Johnson & Johnson, down 2.48%, and Boeing, down 1.98%.

European indices, meanwhile, finished largely higher.

After the close of European trade, the EURO STOXX 50 rose 0.34%, France's CAC 40 rose 0.53%, while Germany's DAX 30 finished up 0.27%. Meanwhile, in the U.K. the FTSE 100 finished down 0.37%.

On Wednesday, the U.S. is to release official data on producer price inflation.

On Thursday, the U.S. will release data on consumer inflation, jobless claims, industrial production and manufacturing data from the New York and Philadelphia Federal Reserve branches.

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N.Z. retail sales rise more-than-expected

Investing.com - Retail sales in New Zealand rose more-than-expected last month, official data showed on Thursday.

In a report, Statistics New Zealand said that retail sales rose to 1.7%, from 0.5% in the preceding month .

Analysts had expected retail sales to rise 1.3% last month.

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South Korean unemployment rate remains unchanged

Investing.com - The unemployment rate in South Korea remained unchanged last month, official data showed on Thursday.

In a report, Korea National Statistical Office said that South Korean Unemployment Rate remained unchanged at a seasonally adjusted annual rate of 3.2%, from 3.2% in the preceding month.

Analysts had expected South Korean Unemployment Rate to remain unchanged at 3.2% last month.

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Forex - EUR/USD softens on hopes for solid U.S. retail sales data

Investing.com - The dollar rose against the euro as investors snapped up greenback positions on hopes that official U.S. retail sales data due for release on Tuesday will come in strong and reaffirm sentiments that the Federal Reserve will scale back stimulus programs soon.

In U.S. trading on Monday, EUR/USD was down 0.28% at 1.3305, up from a session low of 1.3278 and off from a high of 1.3344.

The pair was likely to find support at 1.3233, last Monday's low, and resistance at 1.3399, Thursday's high.

In a rather quiet session, the dollar saw demand from investors seeking a safe and liquid venue to camp out ahead of the release of retail sales data in the U.S. on Tuesday.

Market consensus reports peg July retail sales rising 0.3% compared to June's 0.4% growth.
Investors were hoping the data will provide insight as to when the Federal Reserve will begin tapering monetary stimulus programs.

The Fed is currently buying USD85 billion in Treasury holdings and mortgage debt a month from banks to keep long-term interest rates low across the economy, a stimulus tool known as quantitative easing, which weakens the dollar as a side effect.

Talk of a timetable outlining an end to stimulus could strengthen the greenback, and hopes the data will come in firm gave the greenback support as did soft Japanese growth data.

Preliminary data released earlier revealed that Japan's economy grew by 0.6% in the second quarter, falling short of expectations for 0.9% growth.

Japan's gross domestic product rose 2.6% on year during the April-to-June quarter, below forecasts for an increase of 3.6%.

The euro, meanwhile, was down against the pound and up against the yen, with EUR/GBP trading down 0.03% at 0.8602 and EUR/JPY trading up 0.01% at 128.44.

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Forex - Dollar advances in quiet trading, awaits retail sales data

Investing.com - The dollar traded higher against most major currencies on Monday in a quiet session void of major market-moving news at home, which prompted many investors to snap up safe-haven dollar positions to await the release of U.S. retail sales data due out on Tuesday.

Softer-than-expected Japanese growth figures bolstered the dollar's appeal as well.

In U.S. trading on Monday, EUR/USD was down 0.26% at 1.3308.

In subdued trading, the dollar saw demand from investors seeking a safe and liquid venue to camp out ahead of the release of retail sales data in the U.S. on Tuesday.

Consumer demand drive about 70% of the U.S. economy, and strong retail sales can bolster the dollar by stoking sentiments that monetary stimulus tools won't remain in place for much longer.

Market consensus reports peg July retail sales rising 0.3% compared to June's 0.4% growth, which point to an economy that continues on its path to recovery.

Investors were hoping the data will provide insight as to when the Federal Reserve will begin tapering monetary stimulus programs.

The Fed is currently buying USD85 billion in Treasury holdings and mortgage debt a month from banks to keep long-term interest rates low across the economy, a stimulus tool known as quantitative easing that weakens the dollar as a side effect.

Talk of a timetable outlining an end to stimulus programs could strengthen the greenback, and hopes the data will come in firm gave the greenback support as did soft Japanese growth data.

Preliminary data released earlier revealed that Japan's economy grew by 0.6% in the second quarter, falling short of expectations for 0.9% growth.

Japan's gross domestic product rose 2.6% on year during the April-to-June quarter, below forecasts for an increase of 3.6%.

The greenback was up against the pound, with GBP/USD down 0.23% at 1.5472.

The dollar was up against the yen, with USD/JPY up 0.41% at 96.65, and up against the Swiss franc, with USD/CHF trading up 0.29% at 0.9250.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.10% at 1.0298, AUD/USD down 0.47% at 0.9154 and NZD/USD trading down 0.35% at 0.8010.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.26% at 81.38.

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