Connect with us

Economy

Dollar dips from 16-month peak as traders assess rally

Published

on

Dollar dips from 16-month peak as traders assess rally
© Reuters. FILE PHOTO: A packet of U.S. five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron

By John McCrank

NEW YORK (Reuters) -The dollar edged back from a 16-month high on Thursday as traders assessed whether the U.S. currency’s recent surge, fueled by diverging central bank tightening expectations amid surging inflation around the globe, had gone too far.

The , which measures the currency against a basket of six rivals, reached its highest since mid-July 2020 on Wednesday at 96.226, but was last down 0.146% at 95.647.

“At this point it really feels like we’re consolidating around near-term spikes for the dollar,” said Boris Schlossberg, managing director of FX strategy at BK Asset Management. “The dollar has had a full rally and now the market is going to step back an assess if indeed the inflation theme continues at the pace that everybody thinks it will.”

“If that’s true, then there’s nothing stopping it, but I think if the numbers start to print a little cooler as we go forward, you’ll definitely see a bit of a dollar pullback across the board.”

Recent U.S. data showed inflation running in October at its hottest since 1990, while retail sales numbers topped forecasts, leading the market to price in earlier rate hikes by the Federal Reserve than had been anticipated, driving strength in the greenback.

“The sustainability of the current dollar strength beyond the next few months looks far from certain,” said Luc Luyet, FX strategist at Pictet Wealth Management.

“Market expectations of the Fed are starting to be particularly hawkish, suggesting limited tailwinds for the U.S. dollar going forward from that factor.”

The euro, rose 0.32% to $1.13545, bouncing off of a 16-month low hit on Wednesday below $1.13.

Sterling, which jumped 0.5% against the greenback on Wednesday after data showing rising inflation in Britain last month piled pressure on the Bank of England to hike rates at its meeting next month, gave back some gains and was last down 0.08% at $1.3477.

The New Zealand dollar rose 0.31% to $0.7020 after a central bank survey showed near-term inflation is expected to rise in the fourth quarter.

Elsewhere, shed another 3.3% to above 11 per dollar after the central bank cut rates by 100 basis points to 15%, even in the face of inflation near 20% and the Turkish currency hurtling southwards.

The lira has lost around 11.5% of its value this month amid President Tayyip Erdogan’s renewed criticism of interest rates and calls for stimulus despite the risks. It was last at 10.955, having earlier hit a record low of 11.30 per dollar.

Commodity-linked currencies were hurt by oil prices, which slumped to near six-week lows. [O/R]

The Canadian dollar was at a six-week low. Markets are expecting the Bank of Canada to start raising interest rates early next year. The Norwegian Crown also fell.

The Australian dollar touched a six-week low of $0.7251 and was last down 0.1% at $0.72575.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Economy

South Korean exports dropped 14% in November, the highest in 2.5 years

Published

on

exports South Korea

South Korea’s exports fell 14 percent year-on-year to $51.91 billion in November, preliminary data from the Ministry of Commerce, Industry and Energy showed. The November drop was the biggest in 2.5 years since May 2020 and was caused both by the deteriorating global economy, which even a Google price chart showed, and a truckers’ strike in the country.

South Korea exports 2022 – reasons for the drop

Exports fell for the second month in a row. Analysts on average expected an 11% decline, according to Trading Economics. Respondents to MarketWatch predicted a 10.5% decline.

Shipments of semiconductor products overseas, the country’s top export item, fell 29.8%; petrochemicals fell 26.5% and steel exports fell 10.6%. Meanwhile, exports of automobiles jumped 31% and petroleum products 26%.

Exports to China, South Korea’s largest trading partner, fell by 25.5%, and to Asian countries – by 13.9%. Below, supplies to the USA grew by 8% and to the European Union – by 0.1%.

In January-November exports rose by 7.8% on the same period last year and reached a record $629.1 billion.

South Korean imports rose 2.7% to $59.2 billion in November, marking the 23rd consecutive month of gains, but the current rate of growth is the lowest since November 2020. Experts had predicted an increase of only 0.2%.

South Korea’s trade deficit last month was $7.01 billion, compared with a surplus of $2,973 billion a year earlier.

The negative balance was recorded for the eighth month in a row. As a result, by the end of 2022, the country may record a foreign trade deficit for the first time since the financial crisis in 2008.

Earlier we reported that the UN estimates the cost of humanitarian aid in 2023 at a record $51 billion.

Continue Reading

Economy

The UN estimates humanitarian aid costs in 2023 at a record $51 billion because of an impending humanitarian crisis

Published

on

a humanitarian crisis

Joint humanitarian operations will require a record $51.5 billion in 2023 to address urgent problems.

The UN Office for the OCHA estimates that 339 million people will need urgent aid in 2023. At the same time, OCHA called on donor countries to provide funds for assistance in 2023 to the 230 million people most in need, living in 68 countries.

Griffiths explained that aid is needed not only for people experiencing conflicts and disease outbreaks. but also for those suffering the effects of climate change, such as people in peninsular Somalia facing drought and those in Pakistan experiencing severe flooding. For the first time, the growing humanitarian crisis has brought the number of displaced people worldwide to the 100 million mark. Also worsening an already bad situation is the worldwide coronavirus pandemic, which affects the poor. Note that the general economic crisis has begun to negatively affect even the Netflix price chart.

Earlier we reported that house prices in the UK fell by 1.4% in November.

Continue Reading

Economy

Average house prices in the UK fell 1.4% in November

Published

on

average house prices in the uk

Average house prices in the UK fell 1.4% in the previous month in November to 263,788 thousand pounds (about $319,000), according to the British mortgage company Nationwide Building Society.

The decline was recorded at the end of the second consecutive month and was the most significant in almost 2.5 years – since June 2020. Analysts on average had forecast a decline of only 0.3%, according to Trading Economics.

Are house prices in the UK going to fall even more?

Residential real estate prices in November compared to the same month last year increased by 4.4%. At the same time, experts expected a larger increase of 5.8%. The growth rate slowed down significantly compared with 7.2% in October. Because of the difficult economic situation, British investors are investing in other instruments. The Microsoft price chart, for example, is showing potential for growth, so many are interested in the U.S. stock market. 

“The market looks set to remain under pressure in the coming quarters. Inflation will remain high for some time, and interest rates are likely to continue to rise,” believes Nationwide Senior Economist Robert Gardner. – The outlook is unclear, and much will depend on how the overall economy behaves, but a relatively soft landing is still possible.”

Earlier we reported that Sanctions Circumvention was included in the EU’s list of criminal offenses.

Continue Reading

Trending

©2021-2022 Letizo All Rights Reserved