Why Is The US Dollar So Strong Again?

2023-05-18 | Commodities , Current Affairs , Forex , Futures , Precious Metals , Securities , Spot Indices

LONDON, May 18 (Reuters) – If investors agree on one thing this year, it’s that the dollar is going to fall. That’s made the greenback’s 2% bounce over the last month particularly confusing.

U.S. inflation is cooling and the Federal Reserve may pause its interest rate hikes next month. So the dollar should be on the way down, right?

Analysts say a number of factors are probably at play. One is that a range of worries – about the U.S. debt ceiling negotiations, the health of banks, and the global economy’s outlook – are burnishing the dollar’s safe-haven credentials.

Full coverage: REUTERS

‘Big Money Never Buys Cheap’: Why Investors Are Waiting On Japan

HONG KONG, May 18 (Reuters) – As Japan’s stock market roars to multi-decade highs, large investors with long memories say they are staying out, wary of sagging momentum and the prospect the central bank will unwind its massive monetary stimulus.

Riding a wave of buybacks and strong corporate earnings, and pumped up by a weak yen, the broad Topix (.TOPX) index scaled peaks not seen since 1990 this week and the benchmark Nikkei (.N225), up more than 3% in four days, is near similar heights.

Full coverage: REUTERS

Ahead Of G7, Japan PM Welcomes More Investment From Global Chipmakers

TOKYO, May 18 (Reuters) – Prime Minister Fumio Kishida said he welcomed and expected more investment from global chipmakers in Japan, which is striving to revive its chip sector, after meeting top executives on Thursday before a Group of Seven summit.

China is set to be high on the agenda of the annual G7 leaders meeting that begins on Friday, with the United States increasingly urging its allies to counter the Asian giant’s chip and advanced technology development.

Full coverage: REUTERS

Oil Prices Ease As All Eyes On U.S. Debt Ceiling Talks

May 18 (Reuters) – Oil prices eased on Thursday as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging in the previous session on optimism over U.S. fuel demand.

Brent crude futures dipped 37 cents, or 0.5%, to $76.59 a barrel as of 0841 GMT. U.S. West Texas Intermediate crude dropped 34 cents, or 0.5%, to $72.49 a barrel.

A sharp plunge in U.S. gasoline inventories due to demand surging to the highest levels since 2021, and optimism surrounding negotiations over the U.S. debt ceiling, helped the main crude benchmarks settle more than $2 higher on Wednesday.

Full coverage: REUTERS

Morning Bid: Get Ready For The Debt Ceiling Rally

A look at the day ahead in European and global markets from Kevin Buckland

European shares look poised to rally after a wave of optimism that a U.S. debt ceiling deal could be reached as soon as the weekend, which lifted stocks on Wall Street and in Asia.

Investors keyed in on an agreement between President Joe Biden and top congressional Republican Kevin McCarthy to negotiate a deal directly, with Biden cutting short an Asia trip to return to talks on Sunday.

Full coverage: REUTERS

Current AffairsIconBrandElement

article-thumbnail

2025-01-13 | Current Affairs

Dollar Surge Pressures Global Currencies Amid Fed Uncertainty

The U.S. dollar climbed sharply on Monday, reaching multi-year highs against other currencies after an unexpectedly strong U.S. jobs report highlighted the resilience of the American economy

article-thumbnail

2025-01-10 | Current Affairs

Musk Urges State AGs to Facilitate OpenAI Stake Auction

Musk’s lawyer submitted a letter requesting the states to ensure an open bidding process to safeguard public interest as OpenAI move away from nonprofit control

article-thumbnail

2025-01-09 | Current Affairs

Global Stocks Struggle Amid Rising Treasury Yields and Tariff Concerns

TODAY’S NEWS The ongoing selloff in global bonds intensified on Wednesday, weighing on Wall Street stocks and bolstering the dollar as robust U.S. economic data lowered hopes for imminent aggressive interest rate cuts by the Federal Reserve. The 10-year U.S. Treasury yield climbed to a peak of 4.73%, the highest since April 2024, before settling […]