Quantcast
Connect with us

Dollar stalls, sterling steadies after May wins no-confidence vote

Published

on

The dollar took a breather on Thursday following its recent strong gains against key rivals, while sterling steadied after British Prime Minister Theresa May’s government won a no-confidence vote in parliament.

The dollar index .DXY, which measures the greenback against six major peers, was a shade higher at 96.133 after gaining about 1 percent over the previous five sessions.

ADVERTISEMENT

On Jan. 10, the dollar almost fell below its 200-day moving average as the index touched a three-month low of 95.029. But then it bounced up, and stayed above that average.

The U.S. currency held onto its gains against the euro EUR= as persistent worries about the euro zone economy weighed on the single currency.

Data this week showed Germany barely avoided slipping into recession in 2018’s second half, and European Central Bank chief Mario Draghi warned on Tuesday that economic developments in the euro zone have been weaker than expected.

The dollar was trading basically flat against the euro at $1.1388 after rising five straight sessions against the single currency, during which it gained about 1.5 percent.

ADVERTISEMENT

Catching investors’ attention was a report in the Wall Street Journal that U.S. federal prosecutors were investigating Huawei Technologies [HWT.UL], for allegedly stealing trade secrets from U.S. businesses and could soon issue an indictment.

Also in focus were concerns the U.S. government shutdown was starting to take a toll on its economy, while investors awaited more cues from the Federal Reserve after a growing number of its officials expressed caution about further rate hikes.

ADVERTISEMENT

“There’s a lot of speculation that we’ve seen the end to the rate-hike cycle and many people are even talking about rate cuts this year,” said Bart Wakabayashi, Tokyo branch manager at State Street Bank.

“The immediate is going to be the messaging from the Fed plus of course their action,” he said. “If we’re assuming that the market is still long dollars, any sort of change in that is going to have a pretty lasting effect.”

The U.S. central bank’s Federal Open Markets Committee will hold the next policy-setting meeting on Jan. 29-30.

ADVERTISEMENT

Businesses across the United States have become less optimistic in recent months, the Fed said on Wednesday in a report on the economy that supports Chair Jerome Powell’s pivot to more “patience” on interest rate hikes.

The dollar edged lower to 109.00 yen JPY=.

The British pound was stable after May survived the no-confidence vote and invited other party leaders for talks to try to break the impasse on a Brexit withdrawal deal after the proposal she presented was voted down by lawmakers on Tuesday.

ADVERTISEMENT

An outline for May’s Plan ‘B’ is due by Monday and the market assumes there will have to be an extension of the Article 50 exit date past March 29.

“It’s unlikely there will be big changes to May’s plan, so parliament is likely to oppose it as well,” said Yukio Ishizuki, senior currency strategist at Daiwa Securities.

Sterling was last trading at 88.42 pence per euro EUROGBP=, hovering close to a seven-week high of 88.37 pence touched during the previous session.

ADVERTISEMENT

Against the dollar GBP=D4, it was basically flat at $1.2872, close to a two-month high of $1.2930 hit at the start of the week.

May said late on Wednesday the opposition Labour Party had yet to discuss a new approach to Brexit with her and urged politicians to put self-interest aside to work to break the impasse.

Wakabayashi of State Street Bank said that on the euro and sterling, “I don’t really see why you would responsibly be heavily positioned either way when you’ve this unknown Brexit.”

ADVERTISEMENT

“I wouldn’t be overexposed either way when there’s such a large question mark,” he said.

Editing by Jacqueline Wong and Richard Borsuk

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and legal efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. And unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from billionaires and corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you. Click to donate by check.

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



Report typos and corrections to: [email protected]. Send news tips to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Facebook

‘Go look at President Trump’s Twitter’: Portland right-wing rally organizer claims ‘mission success’

Published

on

The organizer of a far-right rally in Portland, Oregon claimed the event was a "success" after President Donald Trump attacked Portlandiers protesting the group.

"A confluence of protesters on opposite ends of the ideological spectrum merged on Portland’s waterfront Saturday in a tense but relatively uneventful face-off that brought national attention, including a tweet in the hours before the protest by President Trump decrying the city’s signature anti-fascist movement," the Oregonian reported Saturday.

When a similar right-wing rally in Charlottesville, Virginia killed Heather Heyer, Trump argued there were "fine people" on both sides of the "Unite the Right" rally.

Continue Reading

Breaking Banner

Why was Jeffrey Epstein buying size 5 women’s panties — while in jail?

Published

on

The Miami Herald has another bombshell report on Jeffrey Epstein, who died in a Manhattan jail while waiting to stand trial on federal sex crimes charges.

"A decade ago, during a brief stint in Palm Beach County Jail, convicted sex offender Jeffrey Epstein made an odd purchase at the facility’s store: two pairs of small women’s panties, size 5," the Herald reported Saturday night.

The newspaper noted, "the panties raise questions about why a childless male inmate, accused of sexually abusing girls as young as 14, would be allowed to buy female undergarments so small that they wouldn’t fit an average-sized adult woman."

Continue Reading
 

Breaking Banner

White nationalist Republican ridiculed after only 2 people show up for his town hall meeting

Published

on

Embattled Rep. Steve King (R-IA) suffered further humiliation on Saturday when only two people showed up for his town hall meeting with Iowa constituents.

King, who was stripped of all committee assignments for his white nationalism, was been an embarrassment for Republicans with his constant racism and misogyny.

A photo of the town hall meeting was posted on Twitter by Reuters photo editor Corinne Perkins.

https://twitter.com/corinne_perkins/status/1162806565109473280

Rep. King was quickly mocked in the comments.

Here's some of what people were saying:

https://twitter.com/sedespres/status/1162811223186006018

Continue Reading
 
 

Thank you for whitelisting Raw Story!

As a special thank you, from now until August 31st, we're offering you a discounted rate of $5.99/month to subscribe and get ad-free access. We're honored to have you as a reader. Thank you. :) —Elias, Membership Coordinator
LEARN MORE
close-link
close-image